NY State Senate Bill 2017-S2009C

Senate Bill S2009C

Signed By Governor

2017-2018 Legislative Session

Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2017-2018 state fiscal year

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Archive: Last Bill Status Via A3009 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 10, 2017	signed chap.59
Apr 09, 2017	delivered to governor returned to assembly passed senate message of necessity - 3 day message 3rd reading cal.558 substituted for s2009c
Apr 09, 2017	substituted by a3009c ordered to third reading cal.558
Apr 08, 2017	print number 2009c
Apr 08, 2017	amend (t) and recommit to finance
Mar 13, 2017	print number 2009b
Mar 13, 2017	amend (t) and recommit to finance
Feb 17, 2017	print number 2009a
Feb 17, 2017	amend (t) and recommit to finance
Jan 23, 2017	referred to finance

Votes

- Apr 9, 2017 - Floor Vote
  A3009
  
  53
  
  Aye
  
  4
  
  Nay
  
  0
  
  Absent
  
  5
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Apr 9, 2017
      
      aye (53)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Bonacic
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Diaz
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (4)
      
      Dilan
      
      Hoylman-Sigal
      
      Rivera
      
      Squadron
      
      excused (5)
      
      Boyle
      
      Croci
      
      Krueger
      
      Latimer
      
      Ortt

Bill Amendments

Original

C (Active)

2017-S2009 - Details

See Assembly Version of this Bill:: A3009
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2017-S2009 - Summary

Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F)

2017-S2009 - Sponsor Memo

                                 BILL NUMBER:  S2009

 TITLE OF BILL :  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 population 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 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 liability companies that are disregarded entities in
determining eligibility for tax credits (Part Q); to amend the tax
law, in relation to extending 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 imposition 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 financial 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 practice law and rules and
other laws relating to malpractice and professional 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 concerning 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 serving 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
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 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
on cigarette and tobacco product taxes assessed under article 20
thereof (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 expiration thereof (Part RR)

 PURPOSE :

This bill contains provisions needed to implement the Revenue portion
of the FY 2018 Executive Budget.


This memorandum describes Parts A through RR of the bill which are
described wholly within the parts listed below.

Part A - Establish a Taste-NY alcohol permit

 PURPOSE :

This bill would amend the Alcoholic Beverage Control Law (ABC) to
allow a Taste-NY operator to apply for a special license to sell
alcoholic beverages at retail for off premise consumption, along with
food and souvenir items.

 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :

Under current law, for a Taste-NY store to sell alcoholic beverages,
the operator must be a licensed farm brewery, cidery, winery, or
distillery. This limits the number of potential operators and the list
of items sold at a Taste-NY store.

This bill would amend ABC law by adding a new § 63-b to authorize the
issuance of a special license for the sale of alcoholic beverages at
retail for consumption off the licensed premises, to those individuals
or organizations with a written agreement with the NYS Department of
Agriculture & Markets to operate a Taste-NY store. The license would
also allow the operator to offer customers limited samples of such
alcoholic beverages, sell food intended for off premise consumption,
and sell souvenir items. All of these activities, and the types of
alcoholic beverages available for sale, would be governed by the new
section of law as well as the written agreement. No alcoholic
beverages would be sold, or tastings allowed, at a Taste-NY store
along the NYS Thruway, and all licenses would be issued consistent
with federal law and regulations.

This bill would also amend the ABC law by setting the annual license
fee to $500 for this special license, and add it to applicable lists
of licenses pertaining to other various fees, penalties, and the
requirement to post notice of a pending application.

 BUDGET IMPLICATIONS :

Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by a minimal
amount annually, beginning in 2018, as well as continue the effort to
promote and expand Taste-NY markets.

 EFFECTIVE DATE :
This bill would take effect 30 days after it shall become law,
provided that the amendments made by section 3 of the bill would only
take effect under the expiration of the current version of subdivision
3 of section 17 of the ABC law.
Part B - Establish a motion picture theater alcohol permit
 PURPOSE :
This bill would amend the Alcoholic Beverage Control Law (ABC) to
allow the operator of a motion picture theater to apply for a special
license to sell alcoholic beverages at retail for on premises
consumption.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Under current law, only motion picture theaters that operate and meet
the definition of a restaurant, where all seating is at tables, are
able to obtain a retail on-premises alcoholic beverage license. This
prohibits the ability of a traditional motion picture theater to
obtain a retail on-premises license, and therefore effectively
prohibits the sale of alcoholic beverages by traditional motion
picture theaters.
This bill would amend the ABC Law by adding a new § 106(16) to allow
for on premise alcoholic beverage sales in licensed motion picture
theaters under specific conditions. Holders of the license would be
required to ensure the purchaser of alcoholic beverages provides
evidence of their age by identification documentation as described in
§ 65(b), would only allow the purchase of one alcoholic beverage per
transaction, would only allow alcoholic beverages to be sold or
delivered to ticket holders for "PG-13," "R," or "NC-17" rated movies,
and would allow alcoholic beverage sales from one hour prior to the
start of the first motion picture, until the conclusion of the final
motion picture.
This bill would also amend the ABC Law § 64-a(6) to clarify that the
Authority may issue these special on-premises alcohol licenses only to
motion picture theatres meeting certain operational requirements.
This bill would also amend the ABC Law § 64-a(8) to ensure that foods
typically found in a motion picture theater, such as popcorn, candy,
and light snacks, are sufficient to satisfy the food requirements of a
special on-premises license under this chapter.
This bill would also amend the ABC Law by ensuring that motion picture
theaters applying for this license are required to follow the
municipality notification requirements under § 110-b, allowing for
those same municipalities to express an opinion with respect to
whether the application should be approved or denied.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $125,000 in FY
2018, from the collection of licensing fees.
 EFFECTIVE DATE :
This bill would take effect immediately and sunset three years after
enactment. Part C - Convert the NYC PIT STAR Rate Reduction Benefit
into a credit
 PURPOSE :
This bill would convert the STAR-related New York City Personal Income
Tax (PIT) rate reduction benefit into a New York State PIT Credit for
New York City (NYC) taxpayers.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Since property taxes are comparatively lower in NYC than other parts
of the state, the STAR exemption is worth less to property owners in
NYC than elsewhere. Yet NYC taxpayers - both homeowners and renters
-support NYC education spending through their personal income taxes.
To offset this disparity, residents of NYC receive two benefits:
1. NYC residents with incomes of $250,000 or less receive a School Tax
Relief Credit against their New York State personal income taxes in
the amount of $125 for spouses filing jointly, and $62.50 for all
others. Note that prior to 2016, the credit applied to their NYC
personal income taxes; it was changed to a New York State PIT credit
as part of the FY 2017 Enacted Budget.
2. NYC residents with incomes below $500,000 are subject to lower NYC
personal income tax rates. The State reimburses NYC for the reduced
income tax collections resulting from this PIT rate reduction.
This bill would convert the NYC PIT rate reduction benefit into a New
York State PIT credit. Like last year's change to the NYC School Tax
Relief Credit, this change would bring about administrative
efficiencies to both NYC and the State by enabling the State to
provide the benefit directly to NYC residents, rather than using NYC's
taxation structure as a pass-through.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget. Converting the rate reduction benefit into a credit would
reduce spending by $277 million in FY 2018 and $360 million annually
thereafter, though only about $12 million of the out-year savings is a
true Financial Plan benefit.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to taxable years
beginning on or after January 1, 2017.
Part D - Cap STAR benefit growth
 PURPOSE :
This bill would impose a zero percent cap upon the growth in Basic and
Enhanced STAR benefits, beginning with the 2017-18 school year.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend Real Prop. Tax L. § 1306-a to lower the cap on
the growth of tax savings under the STAR Program, beginning with the
2017-18 school year. Basic and Enhanced STAR savings would be capped
at the FY 2017 savings amounts in subsequent years for these programs.
Enacted as part of the 2012 Executive Budget, Real Prop.  Tax. L §
1306-a caps the growth of STAR savings at a rate not to exceed 2
percent annually.
STAR was enacted in 1997 to offset rising property taxes for
homeowners, and to provide additional targeted property tax relief to
senior citizens. Since then, enhancements have been made that
contributed to increases in the current and projected cost of the STAR
program. The costs of the STAR program increased approximately 36
percent between FY 2002 and FY 2017. The direct costs of the STAR
program in FY 2016, including reimbursements made under Real Prop.
Tax. L. § 1306-a and St. Fin. L. § 54-f, were over $3.3 billion.
Capping growth of the direct costs to the State of the program at
current levels would limit spending at the State level, and would be a
critical tool in ensuring a balanced State budget.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget. Capping the exemption benefits would reduce General Fund
spending by $50 million in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part E - Make participation in the Income Verification Program (IVP)
mandatory for enhanced STAR recipients
 PURPOSE :
This bill would make participation in the STAR Income Verification
Program (IVP) mandatory for senior citizens wishing to receive
Enhanced STAR.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
In order to be eligible for Enhanced STAR, the applicant's income must
not exceed $86,000 for 2017. Under current law, applicants are
required to demonstrate their income eligibility in one of two ways:
1. They may bring income documentation (generally, an income tax
return) to the assessor's office each year, as part of an annual
renewal application process. The assessor would then determine their
eligibility based on the documentation provided.
2. Alternatively, they may enroll in the STAR IVP, which would
authorize the Department of Taxation and Finance (Department) to
annually determine their income eligibility based upon their personal
income tax records. The Department would then notify the assessor of
the Department's findings. Applicants who have enrolled in the IVP
need not reapply for the exemption so long as they file a personal
income tax return each year.
This bill would eliminate the first option and requires all Enhanced
STAR recipients to be enrolled in the IVP, effective with applications
for the exemption on FY 2018 assessment rolls. This would include
recipients of the Senior Citizens Exemption, who previously received
Enhanced STAR automatically. The bill would also extend the IVP to
applicants for the Enhanced STAR Personal Income Tax (PIT) credit.
In addition, to ensure that the Department can accurately verify the
incomes of low-income persons who are not legally required to file
income tax returns, the bill would provide that to receive the
exemption, such persons must report the sources and amounts of their
income to the Department, in a manner prescribed by the Department.
Further, to maximize administrative efficiency, this bill would
provide that when an eligibility question is resolved by the
Department after school taxes have been levied, the Department may pay
the refund to the taxpayer directly, or collect the deficiency from
the taxpayer directly, as appropriate.
Verifying eligibility requirements ensures that the appropriate amount
of benefit is given to the appropriate taxpayer. For example, prior to
the implementation of the STAR Registration Program, numerous
properties received Basic STAR exemptions to which they were not
entitled. This is because the Department did not have a direct role in
the verification of eligibility for Basic STAR (which is subject to a
fixed income limit of $500,000 and restricted to the taxpayer's
primary residence). Once the STAR Registration Program was in place
and taxpayer identification numbers of all Basic STAR recipients
became available to the Department, a more thorough eligibility
verification process could be conducted.
As the STAR Registration Program does not extend to the Enhanced STAR
exemption, the Department does not have the ability to verify that all
Enhanced STAR recipients meet the income (and other) eligibility
requirements. This bill would enable it to do so. This would ensure
that Enhanced STAR would be granted only in appropriate cases; thus,
reducing the cost of the program to the State in the case of
undeserved benefits.
Additionally, by making participation in IVP mandatory, the bill would
make it easier for qualified senior citizens who file tax returns to
keep their Enhanced STAR exemptions-they would no longer need to
reapply for the exemption annually by the locally applicable deadline.
For qualified senior citizens who do not file tax returns, the
Department would develop an uncomplicated application process,
comparable to the filing of a simple tax return, ensuring that these
taxpayers receive the maximum benefit for which they are eligible.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would relieve local assessors from most of the
Enhanced STAR income verification burden and creates consistency with
the changes to the STAR exemption program implemented with the FY 2017
Enacted Budget.
 EFFECTIVE DATE :
This bill would apply to applications for the Enhanced STAR exemption
beginning with FY 2018 assessment rolls.
Part F - Allow taxpayers to make partial tax payments
 PURPOSE :
This bill would enable property owners to make partial payments
against their property tax bills, subject to local option.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Under current law, taxpayers cannot make partial payments of their
property taxes, except where there is a statute specifically
authorizing partial payments to be made. Although this general
prohibition may have been necessary in a past era when accounting for
tax receivables was done manually, but in today's digital world, it is
no longer sound policy for the following reasons:
1. It creates hardship for taxpayers who may not always have the funds
available to pay their property tax bills in full when due.
2. It creates hardship for taxpayers who mistakenly write checks that
are slightly below the amount due. In such cases, the checks are
returned to the taxpayer, who would be charged interest on the full
amount owed if the mistake isn't corrected by the due date (which is
often the case).
3. It creates hardship for municipalities since partial payments must
be returned, even though municipalities would benefit from having
those funds available.
To benefit both taxpayers and municipalities, this bill would now
allow for partial payments unless the municipality passes a resolution
stating otherwise. The municipality would be authorized to establish
conditions under which the partial payment option is permitted (e.g.,
the imposition of a service charge not to exceed $10 per payment), or
it may eliminate the option altogether if it so chooses.
The amounts that remain due after a partial payment is made would be
subject to interest and penalties at the rates that are applicable to
late payments. As a result, the amount of interest and penalties due
would now be less than if the entire payment had been late.
To ensure that municipalities would have sufficient lead time to
adjust their accounting systems, this bill would not impact tax
collections until January of 2019.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget since it creates consistency with the changes to the STAR
exemption program implemented with the FY 2017 Enacted Budget and
provides relief for both taxpayers and municipalities.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to the collection of
property taxes, special ad valorem levies and special assessments for
fiscal years beginning on or after January 1, 2019.
Part G - Relax the tax secrecy rules for STAR credit
 PURPOSE :
This bill would make the names and addresses of taxpayers applying for
or receiving the STAR credit public information.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
In 2016, New York State converted the STAR exemption to the STAR
credit. For taxpayers receiving the STAR exemption, their names and
addresses are publicly available thru the assessment rolls. This bill
would apply the existing tax secrecy rules used for the STAR exemption
to the STAR credit.
This bill would amend Tax Law § 606(eee)(7) to make publicly available
the names and addresses of applicants, and those who are receiving,
the STAR credit to the same extent as the names and addresses of
individuals who have applied for, or are receiving, the STAR exemption
authorized by Real Property Tax Law § 425.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget. Allowing the Department of Taxation and Finance to share STAR
credit information with local assessors would supplement the
Department's efforts to identify primary residency changes, duplicate
exemptions/credits, and other modifications.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part H - Technical fix for the Co-op's STAR Credit
 PURPOSE :
This bill would adjust the STAR credit amount received by
tenant-stockholders of cooperative apartment corporations to match the
amount that tenant-stockholders would receive if they were separately
assessed.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Under existing law, cooperative apartment corporations have their real
property valuation assessed for the building as a whole;
tenant-stockholders do not receive separate assessments. This makes it
difficult for the Department of Taxation and Finance (Department) to
properly calculate the STAR credit amount that each tenant-stockholder
should receive.
This bill would amend Real Property Tax Law (RPTL) § 425(2)(k)(ii) to
require local assessors to provide the Department with a statement
setting forth the taxable assessed value attributable to each
tenant-stockholder, without regard to the STAR exemption, as well as
other information as the commissioner deems necessary to properly
calculate the STAR credit. It would also amend Tax Law §
606(eee)(1)(E) to provide that a tenant-stockholder's STAR credit
amount would be based upon the taxable assessed value as determined by
the assessor. Finally, the bill would repeal Tax law § 606(eee)(6)(A)
because this provision dealing with the calculation of the credit for
tenant-stockholders would no longer be necessary.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would ensure that a co-op STAR PIT credit does not
exceed what the co-op owner would have been charged in school taxes if
it were separately assessed.
 EFFECTIVE DATE :
This bill would take effect immediately, provided that it would first
be applied beginning with the 2017-2018 school year.
Part I - Extend Oil and Gas Fee Expiration Date
 PURPOSE :
This bill would extend the existing provisions of Real Property Tax
Law § 593 to March 31, 2021.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Real Property Tax Law § 593 sets forth a schedule of fees to recover
the cost of setting unit of production values for the gas and oil
industry. The law is currently set to expire on March 31, 2018. This
legislation would extend this section to March 31, 2021.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget to ensure gas and oil producers' assessments would be
determined on a uniform, rational basis throughout the State. The
implementation of this bill in the FY 2018 Executive Budget would also
ensure that the provisions do not lapse before their March 31, 2018
expiration date.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part J - Authorize SUNY Chancellor to certify and approve the
disbursement of funds for veterans' homes operated by the SUNY
 PURPOSE :
This bill would authorize State University of New York ("SUNY")
Chancellor, instead of State Education Department (SED), to certify
and approve the disbursement of funds for veterans' homes operated by
SUNY.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Chapter 432 of the Laws of 2016 stipulates that the Commissioner of
Health must certify and approve the disbursement of funds for
veterans' homes operated by the Department of Health, and that the
Commissioner of Education must certify and approve the disbursement of
funds for veterans' homes operated by SUNY.
There is currently one veterans' home operated by SUNY, the Long
Island State Veterans' Home, which is affiliated with Stony Brook
University. As SED has no involvement in the care and maintenance of
this home, the SUNY Chancellor is better suited to certify and approve
the disbursement of funds used for those purposes. This bill would
accomplish that goal.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget to ensure that funds for the veterans' home operated by SUNY
are appropriately distributed.
 EFFECTIVE DATE :
This bill would take effect on the same date and in the same manner as
Chapter 432 of the Laws of 2016.
Part K - Establish Life Sciences Tax Credits
 PURPOSE :
This bill would extend the benefits of the Excelsior Jobs Program Act
to life sciences companies, and amend the Tax Law to add two new
refundable tax credits applicable specifically to life sciences
companies that are new businesses: a research and development tax
credit for life sciences companies, and an angel investor tax credit
for taxpayers that invest in life sciences companies.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Life sciences companies are companies in the fields of biotechnology,
pharmaceuticals, biomedical technologies, life systems technologies,
health informatics, health robotics, or biomedical devices, and
organizations and institutions that devote the majority of their
efforts in the various stages of research, development, technology
transfer and commercialization related to any such fields. New York
does not currently offer capital subsidies and tax incentives for such
companies. The tax incentives provided by this bill are a concerted
effort to increase New York's share of industry-funded bioscience
research and development.
This bill would amend the Excelsior Jobs Program Act to extend the
program to life sciences companies. In doing so, these companies would
become eligible for the existing refundable Excelsior investment tax
credit, research and development tax credit, jobs tax credit and real
property tax credit. This bill would also amend the Economic
Development Law to enable the program to issue credits for an
additional three years, through the 2029 tax year.
In addition, this bill would amend the Tax Law to add a refundable
credit for life sciences companies that are new businesses, equal to
15 percent of their research and development expenditures, with the
rate increasing to 20 percent for small new businesses with less than
10 employees. This tax credit would be available to new life sciences
companies for a period of up to ten years, with each new life sciences
company eligible to receive the credit for up to five years.  The
lifetime maximum amount of credits allowed to a particular life
sciences company would be $500,000. The Department of Economic
Development would be authorized each year to award $10 million of
credits to life sciences companies, funded with an annual allocation
from the Excelsior Jobs Program.
Further, the Tax Law also would be amended to establish a refundable
angel investor tax credit available to taxpayers that invest in life
sciences companies that are new businesses with twenty or fewer
employees and gross receipts not greater than $500,000 during the
immediately preceding year. The tax credit would equal 25 percent of
each angel investment in a life sciences company made during the
taxable year and would be available to investors for a period of up to
ten years. Each investor would be allowed up to $250,000 in credits
over the course of the ten-year period. The Department of Economic
Development would be authorized each year to award $5 million of
credits to angel investors.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would reduce All Funds revenue by $5 million
annually for FY 2020 through FY 2029.
 EFFECTIVE DATE :
This bill would take effect immediately, and would apply to taxable
years beginning on or after January 1, 2018.
Part L - Expand the workforce training credit
 PURPOSE :
This bill would amend the Employee Training Incentive Credit Program
to incentivize companies to include incumbent worker training as part
of their expansion and retention projects, and expand the credit to
include training for employees working in life sciences.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
A skilled and adaptable workforce is vital to a company's
competitiveness in New York. Given the speed at which business
processes evolve, enhancing employee skills becomes a crucial
component of meeting market demands. To help employers invest in New
York's workforce, this bill would amend the Employee Training
Incentive Program (ETIP). This revised ETIP program would incentivize
companies to include incumbent worker training as part of their
expansion and retention projects, without a requirement to create new
jobs, and also expand this incentive to the life sciences sector.
Section 1 of the bill would eliminate the requirement that eligible
training be provided to employees filling net new jobs and allows such
training to cover internship programs in life sciences as well as
advanced technology. It would amend the definition of significant
capital investment needed for eligibility into the program to require
a company to make a capital investment 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 pursuant to Tax Law §§
210-B(50) or 606(ddd). Previously, the capital investment was at least
$1 million.
Section 2 of the bill eliminates the requirement that a company must
create ten net new jobs to be eligible for the program.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget. It has no impact on the State's Financial Plan.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part M - Extend the Empire State Film Production Tax Credit and
Post-Production Tax Credit for three years
 PURPOSE :
To extend the Empire State film production tax credit and Empire State
film post-production tax credit for three years through 2022.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend the Tax Law to extend the Empire State film
production tax credit for three additional tax years (2020-2022), and
also provide $420 million annually in allocable tax credits for each
of these additional tax years. Additionally, the increase in the
annual allocation from $7 million to $25 million for the Empire State
film post-production credit, which constitutes a subset of the $420
million total annual allocation, would be extended for tax years 2020
through 2022. Currently, the funding and increase in the annual
allocation for post-production are scheduled to expire for tax years
beginning after 2019.
This bill would also extend, for three years (2020-2022), the
additional credit available (10 percent) for both film production
projects and post-production projects, in certain New York counties,
for wages or salaries paid to individuals directly employed by a
qualified film production company or qualified post production
facility. This additional credit is scheduled to expire for tax years
beginning after 2019.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would decrease All Funds revenue by $31 million in
FY 2022.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part N - Create the New York Youth Jobs Program Tax Credit
 PURPOSE :
This bill would extend the Urban Youth Jobs Program tax credit for
five years to 2022 and rename the program as the New York Youth Jobs
Program tax credit.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend subdivisions (a),(d) and (e) of Labor Law § 25-a
to authorize additional allocations of $50 million per year in tax
credits to be awarded in 2018, 2019, 2020, 2021 and 2022 for employers
participating in the program. The bill would also rename the program
as the "New York Youth Jobs Program tax credit" to reflect that the
program is now offered statewide.
 BUDGET IMPLICATIONS :
This bill would decrease All Funds revenue by $50 million annually in
each of FY 2020 through FY 2024.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part 0 - Extend the Alternative Fuels Property and Electric Vehicle
Recharging Property Credit for Five Years
 PURPOSE :
This bill would extend the Alternative Fuels and Electric Vehicle
Recharging Property Credit for five years, through tax years beginning
in 2022.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend Tax Law §§ 187-b, 210-B and 606 to change the
termination date of the Alternative Fuels and Electric Vehicle
Recharging Property Credit from December 31, 2017 to December 31,
2022.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would decrease All Funds revenue by $3 million
annually in each of FY 2020 through FY 2024.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part P - Reform the Investment Tax Credit
 PURPOSE :
This bill would reform the Investment Tax Credit (ITC) statute by
identifying certain uses of property for which the ITC would not be
allowed.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend Tax Law §§ 210-B and 606 to provide that the ITC
is not allowed with respect to tangible personal property and other
tangible property principally 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 medium, of a film, visual or audio
recording, or commercial, or in the duplication, for purposes of
broadcast in any medium, of a master of a film, visual or audio
recording, or commercial. The limitation relating to films, recordings
and commercials applies to costs incurred outside of New York State.
When originally enacted, the ITC was targeted specifically at
manufacturers considering locations outside New York and provided an
incentive to modernize, upgrade, or build new manufacturing facilities
in-state. It was never aimed at "captive" industries like retail or
utilities, which depend on proximity to their customers.  This was
codified by prohibiting an ITC for property used in the production of
electricity after a Tax Appeals Tribunal decision that would have
allowed an electric utility to earn an ITC.
It has always been the Department of Taxation and Finance's position
that the intent of the ITC, and the subsequent electricity
prohibition, prohibited property used in the production and
distribution of electricity, natural gas, steam, and water delivered
through pipes and mains from qualifying for the ITC. While the
Department has successfully litigated cases involving property used in
the production and distribution of electricity, natural gas, and
steam, taxpayers continue to claim ITC for similar property. This bill
would clarify that property used in the production or distribution of
electricity, natural gas, steam, and water delivered through pipes and
mains is not eligible for the ITC. In doing so, the statute would be
amend to be consistent with its original intent, provide certainty to
taxpayers, and avoid costly litigation.
The exclusion of property used to produce program masters similarly
reflects the original intent of the ITC and was a specific
recommendation of the New York State Tax Reform and Fairness
Commission. The accounting treatment of program masters assigns a cost
basis, which is the basis of the ITC, equal to all the costs incurred
to produce the content on the master. Thus, it includes all the costs
of filming and producing the content, which can be millions of
dollars. Moreover, none of that activity has to occur in New York to
generate credit; it is sufficient that the completed master merely be
located in New York. Absent this statutory fix, a credit meant to
encourage investment in producing tangible goods in New York could
continue to be used to support activities and jobs outside of the
State.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $20 million
annually beginning in FY 2020.
 EFFECTIVE DATE :
This bill would take effect immediately, and would apply to taxable
years beginning on or after January 1, 2018.
Part Q - Treat disregarded entities as a single taxpayer for tax
credit purposes
 PURPOSE :
This bill would address a decision of the Tax Appeals Tribunal that
reversed the longstanding policy of the Department of Taxation and
Finance that single member limited liability companies that are
treated as disregarded entities for federal income tax purposes shall
be similarly disregarded for purposes of determining their owners'
eligibility to claim state tax credits allowed under Article 9, 9-A,
22, 32 (prior to its repeal) or 33 of the Tax Law.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would add a new section 43 to the Tax Law to clarify that a
single member limited liability company ("SMLLC") that is disregarded
as an entity separate from its single member/owner ("a disregarded
SMLLC") for federal income tax purposes shall be treated as a
disregarded SMLLC for purposes of determining whether its owner is
eligible to claim any state tax credit allowed under Article 9, 9-A,
22, 32 (prior to its repeal) or 33 of the Tax Law.
It has been the longstanding policy of the Department of Taxation and
Finance to treat a disregarded SMLLC as a division of its owner for
purposes of determining tax credit eligibility. Thus, for example, for
the last 15 years in administering the tax credits under the Empire
Zones program, the certification of a disregarded SMLLC as an Empire
Zones business under Article 18-B of the General Municipal Law has
been deemed to be the certification of its owner, the taxpayer
actually claiming the Empire Zones tax credits. This established one
fixed date of certification and precluded the extension of benefit
periods through the mere formation of additional SMLLCs. Also, for
purposes of the QEZE real property tax credit, property taxes paid by
a disregarded SMLLC have been treated as property taxes paid by its
single member, the taxpayer claiming the credit.
However, a recent decision of the Tax Appeals Tribunal in Matter of
Lisa A. Weber (August 25, 2016) reversed the Department's longstanding
policy. In this decision, the Tax Appeals Tribunal held that two
disregarded SMLLCs owned by the taxpayer, Lisa Weber, should be
treated as distinct entities, separate from each other and separate
from Ms. Weber, for purposes of determining her eligibility for the
Empire Zone wage tax credit derived from the activities of the
disregarded SMLLCs.
While this decision was decided in favor of the particular taxpayer,
the ramifications of this decision are not as favorable to other
taxpayers. The ruling now compels the Department to look at each
disregarded SMLLC separately for purposes of determining tax credit
eligibility. Potentially, many taxpayers would lose their eligibility
to claim Empire Zone tax credits because one disregarded SMLLC was
certified but has no employees to satisfy the required employment test
while another disregarded entity has the requisite employees but no
certification.
This ruling could also affect the QEZE real property tax credit, if
the SMLLC is the owner of record of the property, but the owner or
another SMLLC actually pays the property taxes. Other credits would
potentially be implicated as well. For example, under the Brownfield
Redevelopment tax credit program, one disregarded SMLLC of a taxpayer
could be issued the required certificate of completion when a
brownfield cleanup is completed. But, if another disregarded SMLLC of
that same taxpayer constructs tangible property on the same brownfield
site, the taxpayer would be ineligible to claim the brownfield
tangible property credit.
The Tax Department is not allowed to appeal an adverse Tax Appeals
Tribunal decision. Thus, a statutory amendment to the Tax Law is
necessary to overturn the Tribunal's ruling and protect taxpayers who
relied on the Department's longstanding policy to allow taxpayers to
use disregarded SMLLCs to claim tax credits.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it preserves current Financial Plan revenue estimates.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to all taxable years
for which the statute of limitations for seeking a refund or assessing
additional tax is still open.
Part R - Extend the Personal Income Tax top bracket for three years
 PURPOSE :
This bill would extend the top tax bracket under the personal income
tax law for three years.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend the Tax Law to extend, for three years, the top
tax bracket under the personal income tax. Currently the top tax
bracket, with a rate of 8.82%, is scheduled to expire for taxable
years beginning after 2017. This bill would extend the higher bracket
for taxable years 2018, 2019 and 2020.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $683 million in
FY 2018, $3.4 billion in 2019, $4.5 billion in FY 2020, and $4 billion
in 2021.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part S - Permanently extend the high income charitable contribution
deduction limitation
 PURPOSE :
This bill would make permanent the charitable deduction limitations
for individuals with adjusted gross income of more than $10 million.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Under current law, for tax years ending before 2018, the New York
State itemized charitable tax deduction is limited to 50% of the
federal deduction for individuals with adjusted gross income over $1
million and not greater than $10 million, and 25% of the federal
deduction for individuals with adjusted gross income over $10 million.
These limitations are set to expire at the end of 2017.
Following the expiration of the 2017 limitation, all taxpayers with
adjusted gross incomes over $1 million would be subject to a 50%
limitation.  Therefore, taxpayers with adjusted gross incomes greater
than $1 million but not more than $10 million would continue to be
subject to a 50% limitation, while taxpayers with adjusted gross
income over $10 million would also be subject to a 50% limitation,
rather than the 25% limitation.
This bill would make permanent the current 50%/25% limitation
structure and also make conforming amendments to NYC Administrative
Code § 11-1715(g).
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $70 million in
FY 2019 and $140 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part T - Enhance the Child and Dependent Care Credit
 PURPOSE :
This bill would increase the Child and Dependent Care tax credit
(CDCC) under Tax Law § 606(c) for qualified taxpayers with New York
adjusted gross income (NYAGI) between $50,000 and $150,000.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Currently, the CDCC is a minimum of 20% and as much as 110% of the
Federal Child and Dependent Care Credit depending on the amount of a
taxpayer's NYAGI. Eligible families with lower adjusted gross incomes
receive a higher percentage of the federal credit for which they are
eligible on their State tax return and, therefore, a larger State
credit. The percentage of the federal credit allowed ranges from 20%,
for taxpayers whose NYAGI is $65,000 and above, to 110% for taxpayers
whose NYAGI is $25,000 and below. For taxpayers with a NYAGI between
$50,000 and below $65,000, the CDCC ranges from 85% to 32% of the
federal credit, respectively. The maximum New York State credit is
currently $2,310 for two dependents or more, and $1,155 for one
dependent. The CDCC is refundable at the State level.
The federal credit, which is nonrefundable, allows up to $3,000 of
qualifying expenses for one qualifying person, and up to $6,000 of
expenses for two or more qualifying persons. A qualifying person is a
child under age 13 who can be claimed as a dependent, or a disabled
spouse or other disabled person that can be claimed as a dependent.
This bill would amend Tax Law § 606(c) to increase the credit for
certain household and dependent care services necessary for gainful
employment for taxable years after 2017 for taxpayers whose NYAGI is
between $50,000 and $150,000 annually. This proposal would target
middle income working families who are finding it increasingly
difficult to afford quality child care.
Under the proposal, all taxpayers with incomes between $50,000 and
$150,000 would now be eligible for a CDCC ranging from 100% to 60% of
the federal credit. The percentage of the federal credit allowed by
New York State would be increased by the following factors:
If NY 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
For example, taxpayers with NYAGI of $55,000 would see their credit
increase from approximately 73% of the federal credit to nearly 93% of
the federal credit. Taxpayers with incomes over $65,000 and less than
$150,000 who currently eligible for a credit equal to 20% of the
federal credit would see their credit increase to 60% of the federal
credit. The average additional credit for those benefitting would be
$208.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would reduce All Funds revenue by $42 million
annually starting in FY 2020.
 EFFECTIVE DATE :
This bill would take effect immediately, and would apply to taxable
years after 2017. Part U - Allow warrantless bank account data
matching
 PURPOSE :
This bill would expand the financial institution data match system for
state tax collection purposes to include information regarding
financial accounts for tax debtors with fixed and final tax debts,
whether or not a warrant has been filed.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Enacted as a part of the 2009 Executive Budget, Tax Law § 1701 allows
the Commissioner of Taxation and Finance to develop and operate a
financial institution data match system for state tax collection
purposes. The financial institution data match system facilitates the
identification and seizure of non-exempt financial assets of tax
debtors. Each financial institution doing business in the state must
provide, to the Department on a quarterly basis, information for each
tax debtor identified by the Department that maintains an account at
the institution.
Under current law, in order to obtain information regarding tax
debtors' accounts that may be available to levy, the Department must
file a public warrant in the appropriate county clerk's office and
with the Department of State. This bill would expand the financial
institution data match system to require the financial institutions to
now include any past due liabilities, including unpaid tax, interest,
and penalty, that have become fixed and final such that the taxpayer
no longer has any right to administrative or judicial review. As a
result, the Department would be able to make more informed and better
decisions regarding whether a levy is the best way to resolve a
collection case, while also reducing the number of public warrants
filed solely for information-gathering purposes, and consequently,
eliminating the long-term negative effect the public warrant has on a
tax debtor's credit history, even after the outstanding liability is
paid off.
It is anticipated that the resulting improved efficiency and
effectiveness of the levy program would generate approximately $15
million in additional revenue annually when fully effective.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $5 million in FY
2018 and $15 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect immediately.  Part V - Require New State
Employees to be Compliant with State Tax Obligations
 PURPOSE :
This bill would require tax clearances for new state employees and, at
local option, for new local government employees to verify that these
new public employees are in compliance with their tax obligations.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Public employees - who are paid with tax dollars -- are charged with
administration and enforcement of laws, rules and regulations, and
those who are not in compliance with their tax obligations undermine
the credibility of state and local government.
This bill would require tax clearances from the Tax Department to
verify that new state employees do not have past-due state tax
liabilities and are in compliance with applicable tax return filing
requirements. The bill would also authorize local governments to
require such tax clearances for new public employees. If the
applicant's tax clearance is refused, the government employer would
provide notice to the applicant to contact the Tax Department, which
would provide the applicant with details of the tax compliance issues
and how they may be resolved. One such resolution could be the use of
an installment payment agreement between the employee and government
employer.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $1 million in FY
2018 and $2 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect on June 1, 2017.
Part W - Require practitioners to be compliant with State tax
obligations before receiving excess medical malpractice coverage
 PURPOSE :
This bill would extend, for one year, the Physician's Excess Medical
Malpractice Program, commonly known as the "Section 18 Program", for
eligible physicians and dentists for the policy year beginning July 1,
2017. The bill would maintain existing eligibility requirements, and
would add a requirement that physicians and dentists applying for
coverage receive a tax clearance from the Department of Taxation and
Finance before receiving such coverage
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would extend the Physician's Excess Medical Malpractice
Program through June 30, 2018, and would extend, for one year, the
methodology for enrolling in the Physician's Excess Medical
Malpractice Program pool, continue to limit enrollment to physicians
and dentists covered in the prior year, and subject openings due to
attrition to a hospital-based formula.
The bill also would require.physicians and dentists to receive a tax
clearance from the Department of Taxation and Finance in order for the
Superintendent of Financial Services and the Commissioner of Health to
purchase for such physicians and dentists a policy for excess medical
malpractice insurance coverage.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $1 million in FY
2018 and $2 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part X - Permanently extend warrantless wage garnishment
 PURPOSE :
This bill would make permanent the authority for the Commissioner of
Taxation and Finance to serve income executions (wage garnishments) on
individual tax debtors and, if necessary, on the employers of such tax
debtors, without the necessity of filing a warrant.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Enacted as a part of the 2014 budget, Tax Law § 174-c allows the
Commissioner of Taxation and Finance to serve income executions (wage
garnishments) on individual tax debtors and, if necessary, on the
employers of such tax debtors, without filing a public warrant in the
appropriate county clerk's office and with the Department of State.
The law authorizing warrantless income executions is set to expire on
April 1, 2017. Thus, the enactment of this bill would make the
Commissioner's authority permanent.
Tax Law § 174-c was enacted, in part, to protect individuals from
developing a negative credit report and compromising an individual's
ability to secure credit. Moreover, insurance companies have begun to
establish premium rates based upon an individual's credit report, and
it is also common for employers to examine an applicant's credit
report when making hiring decisions. The fact that a publicly filed
warrant can negatively affect a taxpayer's credit rating is
exacerbated by the fact that a warrant remains on the taxpayer's
credit rating for seven years, regardless of whether the liability is
paid in full. Accordingly, a publicly filed tax warrant, which was
required for income executions prior to the enactment of § 174-c,
could unnecessarily penalize an individual taxpayer.
Unwarranted income executions have resulted in incremental revenue of
$75 million since § 174-c was enacted. Furthermore, the legislation
has resulted in 210,000 taxpayers being issued income executions
without public warrants, with a total value of outstanding income
executions of approximately $107.5 million. Of the 210,000 unwarranted
income executions served to date, 112,000 have been fully paid.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $15 million
annually beginning in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part Y - Require New York State S corporation conformity with Federal
return
 PURPOSE :
This bill would amend the Tax Law to require all corporations subject
to tax in New York that are treated as S corporations for federal tax
purposes also be treated as S corporations for New York State tax
purposes.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Currently, a federal S corporation that is subject to tax in New York
under Article 9-A (e.g., the corporation is doing business or owns
property in the State) can elect to be taxed as an S corporation, or
to be taxed as a C corporation for New York State purposes. If a
federal S corporation is taxed as a New York S corporation, the
corporation is responsible only for the fixed dollar minimum tax, and
the income of the entity is passed through to its shareholders and
taxed at that level. Conversely, if the federal S corporation is taxed
as a New York C corporation, it computes its tax and pays a tax on an
apportioned entire net income or capital base.
Federal S corporations generally choose to pay tax under Article 9-A
as New York C corporations when paying tax at the entity level reduces
the corporation's tax liability. They also may choose to pay tax under
Article 9-A in order to shield its non-resident shareholders from
having a New York tax liability.
Further, if a federal S corporation has elected to treat its wholly
owned subsidiary as a qualified subchapter S subsidiary ("QSSS") for
federal purposes, the QSSS is ignored as a separate taxable entity,
and the assets, liabilities, income and deductions of the QSSS are
included on the parent's return. However, for New York purposes, the
tax treatment of the QSSS is not required to be conformed to the
federal treatment and the QSSS under certain circumstances can be a
stand-alone Article 9-A taxpayer.
While the Tax Law was amended in 2007 to mandate that a federal S
corporation be treated as a New York S corporation in any tax year in
which its investment income exceeded 50% of its federal gross income,
this mandate did not cover the entire universe of federal S
corporations that have elected to be taxed as New York C corporations.
This bill would amend Tax Law § 660(a) to require all federal S
corporations that are subject to tax in New York, or that have
qualified subchapter S subsidiaries subject to tax in New York, to be
treated as S corporations for New York State tax purposes. The bill
would also amend §§ 208 and 210-A of Article 9-A and other provisions
in Article 22 to conform to the elimination of the S corporation
election.
Requiring conformity to the federal S corporation status would
simplify the corporation's and shareholders' New York tax filings,
eliminate potential tax avoidance schemes, and align New York's
treatment of S corporations with that of most other states
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $5 million
annually beginning in FY 2019.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to taxable years
beginning on or after January 1, 2018.
Part Z - Close the co-op sale loophole
 PURPOSE :
This bill would close the loophole in the personal income tax, and
characterize the gain from the sale of entities who own shares in
cooperative housing corporations located in New York as New York
source income.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Currently, the sale by non-residents of real property located in New
York and the direct sale of the shares of a cooperative housing
corporation in New York may generate New York source income subject to
the personal income tax. However, the law does not clearly state that
the sale of the ownership interests in an entity, such as a
partnership, where more than 50% of the entity's assets consist of
shares in a cooperative housing corporation, also generate New York
source income, and are therefore subject to the personal income tax.
This ambiguity creates a platform for taxpayers who own shares in
cooperative housing corporations to divest of those shares without
generating a tax liability under the personal income tax. This
ambiguity also creates disparate treatment amongst similarly situated
taxpayers. For example, if a nonresident sells his interest in an
entity that solely holds rental property in the State, then the gain
from the sale would be taxable. However, if the nonresident sells his
interest in an entity that solely holds cooperative rental units in
the State, the gain is not taxable.
This bill would amend the definition of real property located in this
state to include ownership interests in entities that own shares in a
cooperative housing corporation where the cooperative units are
located in New York for purposes of New York source income in Tax Law
§ 631(b)(1)(A), thereby allowing the gain from the sale of ownership
interests in such entities to be included as New York source income.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $10 million
annually beginning in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to taxable years
beginning on or after January 1, 2017.
Part AA - Close non-resident asset sale loophole
 PURPOSE :
This bill would close the loophole and impose a tax on nonresident
individuals who are partners in partnerships that sell the
partnership's assets, and then classify the transaction as a sale of
an intangible partnership interest.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend the Tax Law to include the gains realized from
the sale of an interest in a partnership by nonresident partners as
New York source income when the underlying transaction reflects a sale
of partnership assets subject to Internal Revenue Code (IRC) § 1060.
IRC § 1060 provides special rules for the sale of a trade or business
treated as an asset acquisition. In such transactions, the buyer of
the asset is eligible for a step up in basis, while the seller can
treat the transaction as the sale of a partnership interest. On the
federal level, both the seller and buyer would be subject to taxation.
On the State level, however, this results in a loophole with respect
to the State's taxation of nonresidents. This is because an IRC § 1060
election allows the seller to consider the transaction to be the sale
of an intangible interest, which is non-taxable, while the buyer
considers the transaction to be the purchase of an asset, which is
taxable. Gains on these sales are subject to New York State tax for
residents, but for non-residents, the gains are exempt from New York
State tax.
This legislation would close this loophole by characterizing the
transaction for the seller and buyer consistently as a sale of assets,
which in turn would subject the nonresident seller to income tax on
the gain generated by the sale of assets.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $10 million
annually beginning in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part BB - Modernize sales tax collection to reflect the Internet
economy
 PURPOSE :
This bill would amend the Tax Law to require marketplace providers to
collect sales and use tax on taxable sales of tangible personal
property that they facilitate.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would require marketplace providers to collect sales tax on
taxable sales of tangible personal property that they facilitate.
The sales tax is a tax on the customer that is collected by the
seller. It is well-established that the Department of Taxation and
Finance ("Department") is also authorized to impose such tax
collection responsibilities on parties that facilitate sales (e.g.,
auctioneers, consignment shops and stores with lease departments).
This bill improves on that concept by treating large marketplace
providers that facilitate sales of tangible personal property as
"persons required to collect tax" on such sales, thereby requiring
them to perform all the duties of a vendor, including collecting the
tax, filing a tax return, and remitting the tax collected. The bill
defines a "marketplace provider" as a person who collects the purchase
price, as well as provides the forum, physical or virtual, where the
transaction occurs. The bill provides an exception for small
marketplace providers that facilitate sales exclusively online by
excluding such providers that facilitate less than $100 million in
sales in a calendar year.
To minimize the number of persons who have tax collection
responsibilities, the bill relieves sellers using marketplace
providers of any such responsibilities, as long as the seller
receives, in good faith, a certification from the marketplace provider
on a form authorized by the Department that the marketplace provider
is collecting the tax on the seller's transactions. In fact, a seller
of tangible personal property that makes all of its sales through
marketplace providers that certify they would collect the tax would
have no New York sales tax collection and remittance responsibilities,
and need only file annual information returns.
Shifting the tax collection responsibility to the marketplace provider
would have many benefits. It would ease sales tax collection burdens
for many small businesses in the State, streamline the tax collection
process, improve taxpayer compliance by reducing the number of persons
who handle sales tax monies before they are remitted to the
Department, and result in a level playing field for New York's "Main
Street" retailers that compete with out-of-state sellers that do not
collect tax on sales to New York customers made through marketplace
providers.
The bill does not expand the rules concerning sales tax nexus.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $68 million in
FY 2018 and $136 million annually thereafter.
  Effective Date:
This bill would take effect September 1, 2017 and applies to sales
made or uses occurring after that date.
Part CC - Close sales tax related entities loopholes
  Purpose:
This bill would amend the Tax Law to close the existing tax loopholes
for transactions between related entities.
 SUMMARY OF PROVISIONS, AND STATEMENT IN SUPPORT :
With certain exceptions, existing law allows a purchaser to buy
tangible personal property or services intended for resale exempt from
sales tax. However, certain related entities have exploited this
exemption by purchasing high-dollar-value property exempt from sales
tax and then leasing the property to a member or owner using longterm
leases or lease payments that are a small fraction of the fair market
value of the property.
This bill would amend the sales tax definition of "retail sale" to
include any transfer of tangible personal property to certain entities
when the property would be resold to related person or entities,
including; (1) sales to single member LLCs or subsidiaries that are
disregarded for federal income tax purposes, for resale to a member or
owner; (2) sales to a partnership for resale to one or more partners;
and (3) sales to a trustee for resale to a trust beneficiary. This
change would remove the incentive to use or create those entities to
avoid sales tax.
In addition, current law allows a person or entity that is not a
resident of New York State to bring property or services into this
state for use within the State without incurring use tax. However,
this construct has led to situations where a resident person or entity
creates a new entity, such as a single member LLC, to purchase
high-dollar-value property out of state and bring the property into
New York to avoid the use tax.
This bill would close this loophole by providing that the use tax
exemption in Tax Law § 1118(2) would not apply when a person (other
than an individual) brings property or services into this state unless
that person has been doing business outside of New York for at least 6
months prior to the date the property is brought in to New York. This
amendment would still allow families and ongoing businesses to move
into New York without incurring use tax on property or services
brought into the State.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $9 million in
FY 2018 and $11 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part DD - Make technical amendments to the State and local sales tax
statute
 PURPOSE :
This bill would clarify the imposition of sales tax on the sale of gas
service or electric service, of whatever nature.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would amend Tax Law § 1105-C to clarify the sales tax is
imposed on the transporting, transmitting, or delivering (T&D) charges
for gas or electricity when the transportation, transmission or
distribution is delivered by the provider of the commodity.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would preserve All Funds receipts that could
otherwise be at risk.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part EE - Apply the Public Safety Communications Surcharge to Prepaid
Devices
 PURPOSE :
This bill would amend the Tax Law to impose the Public Safety
Communications Surcharge on the sale of each prepaid wireless
communication service or device. This bill also would amend the County
Law to authorize any county or city that is currently authorized to
impose an Enhanced Emergency Telephone System Surcharge on wireless
communications service to adopt a local law to impose such surcharge
on the sale of each prepaid wireless communications service or device
within that locality.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would require sellers to collect a surcharge on the sale of
each prepaid wireless communications service or device sold within
this state. The market shift from contract plans to prepaid wireless,
which is not currently subject to the surcharge, is leading to a
steady decline of revenue. The surcharge currently imposed on postpaid
wireless communications service is $1.20 on each device per month. The
prepaid surcharge would be imposed on the sale of each prepaid service
or device at the rate of $0.60 per retail sale that is $30 or less,
and $1.20 per retail sale over $30.
The bill also would expand the authority of municipalities that are
currently authorized to impose a surcharge on postpaid wireless
communications service to impose a similar surcharge on the sale of
each prepaid service or device. The surcharge currently imposed on
postpaid wireless communications service in those municipalities is
$0.30 on each device per month. The prepaid surcharge would be imposed
on the sale of each prepaid service or device at the rate of $0.30 per
retail sale.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $7 million in
FY 2018 and $26 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect December 1, 2017. Part FF - Tax and
regulate vapor products
 PURPOSE :
To regulate vapor products in the same manner as tobacco products, and
impose an excise tax on these products.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Electronic cigarettes, vaping pens, hookah pens and similar devices
typically contain nicotine, the highly addictive substance in all
tobacco products. Recent studies have shown that emissions from these
products may contain tobacco-specific nitrosamines, acetone,
formaldehyde, various metal particles and other volatile ultrafine
particles that can penetrate deep into the lungs. Although the levels
of most of these compounds are lower in emissions than in traditional
tobacco cigarettes, these substances still accumulate in indoor air.
Allowing the use of these products indoors sends a contradictory
message to youth and the non-smoking public about the acceptability of
indoor smoking. Permitting use of these products indoors also creates
enforcement difficulties because these products appear very similar to
cigarettes. A single rule should be applied to all tobacco products.
This bill would amend various sections of the Public Health Law to
extend the regulations on tobacco products to vapor products, defined
as the liquid or gel commonly used in e-cigarettes and similar
devices, regardless of whether or not it contains nicotine. For
example, vapor products would be included under the Clean Indoor Air
Act; coupon restrictions would be extended to include vapor products;
vapor product use would be prohibited on school grounds and by school
bus drivers; and the age verification method would be amended.
Additionally, any person who manufactures, sells, or distributes vapor
products must ensure all components, containing nicotine, qualify as
"special packaging for the protection of children," as defined in 15
U.S.C. § 1471.
Further, this bill would amend Article 20 of the Tax Law to impose an
excise tax on the sale (or use, if not previously taxed) of vapor
products at the rate of 10 cents per fluid milliliter. To facilitate
administration and collection of the tax, wholesalers and distributors
would be required to list the amount of vapor product sold, in
milliliters, on any invoices issued to their customers. The bill would
add record keeping requirements and civil and criminal penalties for
unlawful possession of a vapor product that are equivalent to those in
existing law for other tobacco products.
The unregulated marketing of vapor products threatens the gains that
have been made in reducing tobacco use by youth and adults in New
York. This legislation would protect youth and adults by ensuring that
vapor products are appropriately regulated.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds revenue by $3 million in
2018 and $5 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect on the 180th day after it becomes a law
and apply to vapor products that first become subject to taxation
under Article 20 of the Tax Law on or after that date.
Part GG - Clarify the amount of untaxed cigarettes required to seize a
vehicle
 PURPOSE :
This bill would align the vehicle seizure provisions of the Tax Law
with the presumption of sale provisions of the Tax Law, and conform
the Tax Law counterfeit stamp penalty to the Penal Law penalty for
criminal possession of a forged instrument.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Currently, Tax Law § 1847(a) permits the seizure of a motor vehicle
involved in the transportation of more than 10 cartons of untaxed
cigarettes. However, the penalty for possession or transport of
untaxed cigarettes with "intent to sell" in Tax Law § 1814(d) is not
triggered until a person is in possession of more than 25 cartons of
untaxed cigarettes.
This proposal would align the quantity that triggers the presumption
of sale provision in Tax Law § 1814(d) with the quantity that triggers
vehicle seizure in Tax Law § 1847(a) by lowering the presumption of
sale quantity from 25 to 10 cartons. Aligning these two Tax Law
provisions provides a more consistent and powerful mechanism for Tax
Enforcement agents to effectively control cigarette tax evasion.
Additionally, to further control cigarette tax evasion, this bill
would align the penalties for counterfeit tax stamps to the penalties
for criminal possession of a forged instrument. Under Tax Law §
1814(g), the possession or sale of counterfeit tax stamps, or a device
necessary to manufacture counterfeit tax stamps is a class E felony.
However, under Penal Law § 170.30, criminal possession of a forged
instrument in the first degree, a materially similar crime, is a class
C felony. This proposal would increase the felony charge in Tax Law §
1814(g) from a class E felony to a class C felony to mirror the
penalties in Penal Law § 170.30.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $1 million
annually, beginning in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to offenses
committed on and after such effective date.
Part HH - Expand jeopardy assessments to the cigarette and tobacco tax
 PURPOSE :
This bill would authorize the Department of Taxation and Finance to
issue jeopardy assessments for the collection of the cigarette and
tobacco excise tax.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Where collection of the excise tax on cigarettes and tobacco products
would be jeopardized by delay, this bill would provide that tax may be
assessed prior to the filing of a return and prior to the deadline to
file a return. The assessment would become due and payable immediately
upon notice to the taxpayer. The taxpayer would be able to stay
collection efforts by filing a bond with the Tax Commissioner to
ensure the payment of tax, interest, and penalties. Seized property
would be sold once the assessment is finalized, or earlier if the
taxpayer fails to attend a hearing, the taxpayer consents to the sale,
or where the property is perishable or the expenses of conservation
and maintenance would greatly reduce its value.
Currently, there is no provision for jeopardy assessments to assist in
the collection of the excise tax on cigarettes and tobacco products.
This bill is modeled after Tax Law § 288-a (excise tax on gasoline and
similar motor fuel) and Tax Law § 1138 (sales tax), which authorize
jeopardy assessments for similar collection efforts of other taxes.
The authorization of jeopardy assessments would provide a helpful tool
for use in the prevention of evasion of the cigarette and tobacco
products excise tax.
  Budget Implications:
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $2 million
annually, beginning in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately. Part II - Reform the taxation
of cigars
 PURPOSE :
This bill would reform the cigar tax imposed by Article 20 of the Tax
Law to remedy compliance and enforcement issues. It would change the
method of taxation on cigars from a percentage of the wholesaler's
price to a tax equal to 45 cents per cigar.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would reform the cigar tax to remedy compliance and
enforcement issues that have arisen because of changes in the business
practices of the cigar industry.
Under current law, cigars are taxed at 75% of the wholesale price paid
to the manufacturer by a licensed distributor (who is liable for the
tax). However, if the manufacturer's invoice is not available, the
wholesale price is deemed to be 38% of the price paid by the
distributor, unless the distributor can prove a lower price.
Significant resources have been expended auditing distributors and
litigating challenges to determine the appropriate wholesale price.
Additionally, this has created uncertainty, disparate results among
taxpayers, and significant revenue losses.
This bill would change the method of taxation on cigars from a
percentage of the wholesale price to a tax of 45 cents per cigar. The
imposition of a tax equal to 45 cents per cigar simplifies the tax
calculation for distributors and eliminates a significant audit issue.
The bill would make clear what taxes are due on cigars by eliminating
the wholesale price as a basis of the tax.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $12 million in
FY 2018 and $23 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect on September 1, 2017.
Part JJ - Impose the real estate transfer tax on the transfer of a
real estate business interest
 PURPOSE :
This bill would impose the real estate transfer tax on the transfer of
a minority interest in an entity that owns real property.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Section 1 of the bill would amend Tax Law § 1401(e) to expand the
definition of "conveyance" to subject the following transfers of
interest to the real estate transfer tax (RETT): transfer of an
interest in a partnership, limited liability corporation, S
corporation, or non-publicly traded 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
50% 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, would be used in determining the fair market
value of all the assets of the entity on the date of the transfer.
Section 2 of the bill would amend Tax Law § 1401(d) to provide that
the consideration for such a conveyance would 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 conveyed.
This bill would level the playing field between those persons owning
real property interests as tenants-in-common and those persons owning
interests in closely held entities that own real property. In many
cases, a closely held entity, such as an LLC, is formed to hold real
property to protect the owners from potential liabilities. Since the
entities are closely held and the primary asset owned by the entity is
the interest in real property, owners essentially have a direct
ownership interest in real property similar to tenants-in-common.
However, unlike the transfer of any tenant-in-common interest, which
is subject to RETT, the conveyance of less than a controlling interest
in a closely held entity is not currently taxed. This bill would fix
that disparity by aligning the treatment of these conveyances for
purposes of RETT, with the personal income tax rules for determining
the New York source income of a nonresident individual when that
nonresident individual sells an interest in an entity that owns real
property in New York.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $4 million in
FY 2018 and $5 million annually thereafter.
 EFFECTIVE DATE :
This bill would take effect immediately and apply to transfers
occurring on and after the effective date.
Part KK - Close the real estate transfer tax loophole
 PURPOSE :
This bill would authorize the Commissioner of the Department of
Taxation and Finance to treat as a conveyance, subject to the
additional real estate transfer tax, a conveyance structured in a
manner intended to avoid or evade the tax.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Tax Law § 1402-a imposes an additional real estate transfer tax of 1%
of the consideration attributable to residential real property on the
conveyance of the residential real property where the consideration
for the transfer is $1 million or more. For purposes of this tax,
residential real property includes any premises that is, or may be
used as, a personal residence at the time of transfer and includes a
one-, two-, or three-family house, an individual condominium unit, or
a cooperative apartment unit.
The Department has recently seen an increase in transactions that
appear to be structured in a manner intended to avoid the additional
tax imposed by Tax Law § 1402a. For example, taxpayers contracting
with a real estate developer for construction of a new residential
building have entered into separate contracts for the land and the
construction and then claimed that land conveyance was not subject to
Tax Law § 1402-a because it was vacant when it was conveyed. This bill
would authorize the Commissioner to examine the actual transactions
and treat any conveyance of an interest in real property made pursuant
to an agreement, understanding or arrangement between the grantor and
the grantee structured in a manner to avoid or evade the tax as
subject to the additional real estate transfer tax.
  Budget Implications :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would increase All Funds receipts by $2 million
annually, beginning in FY 2018.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part LL - Relieve the General Fund of responsibility for funding
equine drug testing in horse racing, require horsepersons to
contribute to drug testing research and equipment, and broaden the
field of potential New York lab testing providers
 PURPOSE :
The change would relieve the State's General Fund of the
responsibility for funding equine drug testing in horse racing, by
returning the responsibility for such funding to those that actually
participate in horse racing; similar to the funding mechanism that
existed for more than 50 years, until 1986. This bill would also
strengthen support of equine research and testing from Thoroughbred
horsepersons, and allow the Gaming Commission to procure qualified New
York equine testing labs through a competitive process.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Current law makes the State's General Fund responsible for funding
equine drug testing in horse racing, which amounted to $4.5 million in
FY 2017. Such testing is necessary to ensure the integrity of racing
results, and protect the wagering public. From 1935 to 1986, the cost
of equine drug testing was borne by the participants in horse racing
(and from 1979 to 1986, in part by off-track betting corporations).
The State assumed those costs in 1986 as an accommodation to the
tracks. The tracks now benefit from video lottery gaming subsidies,
which the tracks and horsepersons can use to resume their historical
responsibility for drug testing costs.
Current law also requires the Gaming Commission to use a "state
college within the state with an approved equine science program" for
all equine testing; under this restriction, Morrisville College is
currently the only qualified provider. Removing the restrictive
language would ensure that equine testing in New York is conducted at
the highest level of quality, at the most competitive rates, and in a
timely manner.
Section 1 would amend Racing, Pari-Mutuel Wagering and Breeding Law
section 902 to allow the Gaming Commission to assess horsepersons,
racetracks, or both to cover the costs of equine drug testing. The
section would also broaden the potential equine drug testing
laboratories that the Gaming Commission could use in support of equine
drug testing programs. Technical changes are also made to update
references to the Gaming Commission and harmonize style.
Section 2 amends Racing, Pari-Mutuel Wagering and Breeding Law section
228(2) to strengthen support of equine drug research and testing from
Thoroughbred horsepersons and remove reference to a particular drug
testing laboratory. Technical changes are made to update references to
the Gaming Commission and harmonize style.
Section 3 provides an effective date.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would transfer costs for necessary equine drug
testing from the General Fund to the regulated parties and ensure
equine testing at the most competitive rates. The bill is expected to
result in $4.5 million in annual savings to the State's General Fund.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part MM - Charitable gaming reform
 PURPOSE :
This bill would consolidate the laws governing charitable gaming into
the same chapter as other laws the Gaming Commission is charged with
enforcing; and it would also modernize how charitable gaming is
regulated to allow more flexibility to organizations who conduct
gaming activities to support their charitable purposes.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would repeal the charitable gaming provisions currently in
Executive Law and two articles of the General Municipal Law, in order
to allow its consolidation into a new Article 15 of the Racing,
Pari-Mutuel Wagering and Breeding Law, where other laws the Gaming
Commission is charged with enforcing are codified.
This bill would add new sections to require the Gaming Commission, to
the greatest extent practicable, to:
*Consolidate definitions, several of which are duplicative in current
law, to reflect more flexibility for authorized organizations;
*Make charitable gaming forms and applications available in electronic
formats that minimize paperwork and are designed to maximize
efficiency for authorized organizations, municipalities, and the
Gaming Commission;
*Consolidate charitable game age restrictions and revise the minimum
age to play bingo to 18 years of age (to be consistent with the
minimum age in other forms of legalized gaming activity in the State);
*Consolidate regulation of charitable gaming on Sundays and broaden
the ability of authorized organizations to conduct charitable gaming;
*Consolidate regulation of charitable gaming advertising and broaden
the ability of authorized organizations to advertise (signage off
premises and through the internet);
*Provide flexibility to charitable gaming enforcement by allowing for
letters of reprimand and fines;
*Relax restrictions on where charitable games of chance and bingo may
be conducted;
*Enhance authorized organizations' revenue efforts by allowing for the
use of checks and credit and debit cards in games of chance;
*Reduce the number of years that a charitable organization must be in
existence from three to one, to match the current requirement in order
to conduct bingo, thus allowing authorized organizations to seek to
sell bell jar tickets at bingo;
*Increase prize limitations as follows: a single bell jar prize
maximum would increase from $500 to $1,000 and the maximum for a
series of aggregate prizes would increase from $3,000 to $6,000, while
the single game of bingo prize maximum would increase from $1,000 to
$5,000 and the allowable aggregate prizes in a bingo occasion would
increase from 3,000 to $15,000;
*Reduce the number of raffle categories from three to two, simplifying
compliance for charitable organizations;
*Ease the ability of a charitable organization to conduct a raffle
outside the organization's domicile by simplifying the approval
process for the organization;
*Broaden the number of persons available to conduct or assist in the
conduct of charitable gaming by removing several automatic bars to
participation based on criminal conduct;
*Remove hours restrictions for charitable games other than bell jar
and raffles, providing more flexibility to charitable organizations to
conduct gaming (the lack of restrictions on the times in which bell
jar and raffles are conducted would be maintained from current law);
*Remove the bar on offering alcoholic beverages as prizes in
charitable gaming, allowing organizations to offer as prizes gift
baskets that contain such beverages; and
*Consolidate charitable gaming severability provisions.
Various fee-setting provisions would also be transferred from statute
to Gaming Commission regulation to allow for flexibility to adjust as
circumstances warrant. The bill would also make technical amendments
to make style consistent throughout the chapter.
Finally, this bill would amend the Racing, Pari-Mutuel Wagering Law,
the Social Services Law and the Tax Law to conform references to the
recodification of charitable gaming laws into a new article of the
Racing, Pari-Mutuel Wagering and Breeding Law.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would enable authorized organizations to enhance
revenue to support their charitable purposes, which would generate
increased fee revenue for municipalities.
 EFFECTIVE DATE :
The bill would take effect 90 days after enactment, to allow the
Gaming Commission opportunity to amend rules and regulations to
conform to the law.
Part NN - Re-privatize the New York Racing Association
 PURPOSE :
This bill would re-privatize the New York Racing Association (NYRA)
with important oversight and safeguard measures and under certain
circumstances allow NYRA nighttime racing and reduce winter racing
days at Aqueduct Racetrack.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Section 1 of the bill would amend section 207 of the Racing and Gaming
Law to reestablish a privately controlled board of directors for NYRA.
Section 2 of the bill would amend section 212 of the Racing and Gaming
Law to increase oversight of NYRA by providing enhanced powers for the
Franchise Oversight Board.
Section 3 of the bill would amend section 203 of the Racing and Gaming
Law to allow, under certain limited circumstances, NYRA to conduct
racing after sunset.
Section 4 of the bill would amend section 238 of the Racing and Gaming
Law to allow, under certain limited circumstances, NYRA to conduct
reduced racing during the winter meet at Aqueduct Racetrack.
Section 5 of the bill would provide an effective date.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the 2018 Executive
Budget because it would preserve All Funds receipts that would
otherwise be at risk.
 EFFECTIVE DATE :
The bill would take effect April 1, 2017.  Part 00 - Extend certain
tax rates and certain simulcasting provisions for one year
 PURPOSE :
This bill would extend, for one additional year, various provisions of
the Racing, PariMutuel Wagering and Breeding (Racing) Law.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Section 1 would amend Racing Law § 1003(a) to extend, for one year,
the June 30, 2017 expiration date for in-home simulcasting.
Section 2 would amend Racing Law § 1007(3)(d) to extend, for one year,
the current percentage of total pools allocated to purses that a track
located in Westchester County receives from a franchised corporation,
which currently is scheduled to expire on June 30, 2017.
Section 3 would amend the opening paragraph of Racing Law § 1014(1),
to extend, for one year, the provisions allowing simulcasting of
out-of-state thoroughbred races on any day the Saratoga thoroughbred
track is operating, which currently are scheduled to expire on June
30, 2017.
Section 4 would amend Racing Law § 1015(1) to extend, for one year,
the provisions governing the simulcasting of races conducted at
out-of-state harness tracks, which currently are scheduled to expire
on June 30, 2017.
Section 5 would amend the opening paragraph of Racing Law § 1016(1),
to extend, for one year, the provisions governing the simulcasting of
out-of-state thoroughbred races on any day the Saratoga thoroughbred
track is closed, which currently are scheduled to expire on June 30,
2017.
Section 6 would amend the opening paragraph of Racing Law § 1018 to
extend, for one year, the current distribution of revenue from
out-of-state simulcasting during the Saratoga meet, which expired on
September 8, 2016.
Section 7 would amend § 32 of chapter 281 of the Laws of 1994 to
extend, for one year, the current amount of off-track betting wagers
on New York Racing Association, Inc. (NYRA) pools dedicated to purse
enhancement, which currently expires on June 30, 2017.
Section 8 would amend § 54 of chapter 346 of the Laws of 1990 to
extend, for one year, binding arbitration for disagreements. These
provisions currently expire on June 30, 2017.
Section 9 would amend Racing Law § 238(1)(a) to extend, for one year,
the current distribution of revenue from on-track wagering on NYRA
races, which currently is scheduled to expire on December 31, 2017.
Extending these provisions would maintain the pari-mutuel betting and
simulcasting structure that is currently in place in New York State.
The provisions extended by sections one through six of this bill were
first enacted in 1994 and section seven was enacted in 1990. These
provisions were extended numerous times since their original
enactment, most recently in 2016.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the 2018 Executive
Budget because it maintains the current pari-mutuel betting structure
in New York State.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part PP - Extend Monticello Video Lottery Terminal rates for one year
 PURPOSE :
This bill would extend, for one year, the current distribution of
video lottery gaming revenue at Monticello Casino & Raceway.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
This bill would extend, for one year, the current commission rate paid
to Monticello as a video lottery agent. In 2008, Monticello was given
a higher commission rate for a five-year period in exchange for opting
out of participating in the vendor's capital award program.  Thus, the
five-year rate sunset was applied to coincide with the five-year
period that other facilities were provided for approval of capital
expenditures eligible for reimbursement through the program.
The capital award program was extended for a ninth year (to 2017) by
chapter 60 of the Laws of 2016 and is proposed to be extended to 2018
by the 2018 Executive Budget. Since the expiration of Monticello's
rate would result in a loss of the enhanced commission, but would not
provide for participation in the capital award program, this bill
would extend Monticello's rate for an additional year to maintain the
original framework of Monticello's rate structure and keep its
duration consistent with the capital award program.
Section 1 of the bill amends Section 1612(b)(1)(ii)(F) of the Tax Law
to extend, from nine to ten years, the forty-one percent vendor fee
paid to a vendor track located in Sullivan County and within sixty
miles from any gaming facility in a contiguous state.
Section 2 of the bill provides for an immediate effective date that
shall be deemed in effect on and after April 1, 2017.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the 2018 Executive
Budget because it would decrease All Funds revenue by $2 million in
2018.
 EFFECTIVE DATE :
This bill would take effect on April 1, 2017.
Part QQ - Extend the Video Lottery Gaming (VLG) vendor's capital
awards program for one year
 PURPOSE :
This bill would extend, for one year, the deadline to receive approval
and to complete capital projects that are reimbursed through the Video
Lottery Gaming (VLG) vendor's capital award.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Section 1 amends Tax Law § 1612(b)(1)(ii)(h) to extend, by one year
until April 1, 2018, the deadline to receive approval for capital
projects to be reimbursed through the VLG vendor's capital award. The
bill also extends by one year, until April 1, 2020, the deadline to
complete these projects. For certain vendor tracks located west of
State Route 14, these deadlines are extended to April 1, 2022 for
approvals and to April 1, 2024 for completion.
Section 2 provides for an immediate effective date.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the 2018 Executive
Budget because it maintains the current VLG revenue stream.
 EFFECTIVE DATE :
This bill would take effect immediately.
Part RR - Alter local gaming aid distribution
  Purpose:
This bill would provide for a redistribution of available aid
associated with hosting a gaming facility to provide aid to a county
that hosts a tribal casino, but does not receive a percent of the
State share of revenue from that casino.
 SUMMARY OF PROVISIONS AND STATEMENT IN SUPPORT :
Section 1 of the bill would amend section 97-nnnn of the State Finance
Law to reduce funds available for distribution to non-host counties in
regions hosting a commercial gaming facility by $1.4 million in FY
2018 and $1.55 million in FY 2019 and FY 2020. Section 2 of the bill
would amend section 99-h of the State Finance Law to provide a county
that hosts a tribal casino but does not receive a percent of the state
share of revenue from that casino with an annual distribution of $2.25
million.
Section 3 of the bill would amend section 99-h of the State Finance
Law to reduce funds available for distribution to non-host counties in
regions hosting a tribal casino by $600,000 in FY 2018 and $500,000 in
FY 2019 and FY 2020.
Section 4 of the bill would amend section 54-L of the State Finance
Law to reduce the State aid payment to eligible municipalities hosting
a VLT facility by $250,000 in FY 2018 and $200,000 in FY 2019 and FY
2020.
Section 5 of the bill provides an effective date.
 BUDGET IMPLICATIONS :
Enactment of this bill is necessary to implement the FY 2018 Executive
Budget because it would provide an equitable distribution of State
gaming aid.
 EFFECTIVE DATE :
The bill would take effect April 1, 2017 and shall expire and be
deemed repealed on March 31, 2020, to allow for a reevaluation of
gaming activity within the State.
The provisions of this act shall take effect immediately, provided,
however, that the applicable effective date of each part of this act
shall be as specifically set forth in the last section of such part.

2017-S2009 - Bill Text download pdf

                            
 
                     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

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 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

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 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

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 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

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 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

 S. 2009                            121                           A. 3009
 
 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

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 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.

 S. 2009                            125                           A. 3009
 
   § 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.

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   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

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 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

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   (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

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 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:

 S. 2009                            142                           A. 3009
 
   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.

2017-S2009A - Details

See Assembly Version of this Bill:: A3009
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2017-S2009A - Summary

2017-S2009A - Bill Text download pdf

                            
 
                     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

 S. 2009--A                         64                         A. 3009--A
 
 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

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 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

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 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

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 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

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 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.

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   (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

 S. 2009--A                         135                        A. 3009--A
 
 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

 S. 2009--A                         136                        A. 3009--A

   (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

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 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,

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 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;

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   (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-

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 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.

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   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

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 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

 S. 2009--A                         150                        A. 3009--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
 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.

2017-S2009B - Details

See Assembly Version of this Bill:: A3009
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2017-S2009B - Summary

2017-S2009B - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  2009--B
 
                             I N  S E N A T E
 
                             January 23, 2017
                                ___________
 
 A  BUDGET  BILL,  submitted by the Governor pursuant to article seven of
   the Constitution -- read twice and ordered printed, and  when  printed
   to  be  committed to the Committee on Finance -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee  -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee

 AN ACT intentionally omitted (Part A); intentionally omitted  (Part  B);
   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); intentionally omit-
   ted (Part F); intentionally omitted (Part  G);  intentionally  omitted
   (Part  H);  intentionally omitted (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); intentionally omitted (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); intentionally omitted (Part N); intentionally
   omitted (Part O); intentionally omitted (Part P);  to  amend  the  tax
   law,  in  relation to the treatment of single member limited liability
   companies that are disregarded entities in determining eligibility for
   tax credits (Part Q); intentionally omitted  (Part  R);  intentionally
   omitted  (Part S); to amend the tax law, in relation to increasing the
   child and dependent care tax credit (Part  T);  intentionally  omitted
   (Part  U); intentionally omitted (Part V); intentionally omitted (Part
   W); intentionally omitted (Part X); intentionally  omitted  (Part  Y);
   intentionally  omitted  (Part  Z);  intentionally  omitted  (Part AA);
   intentionally omitted (Part  BB);  intentionally  omitted  (Part  CC);
   intentionally  omitted  (Part  DD);  intentionally  omitted (Part EE);
   intentionally omitted (Part  FF);  intentionally  omitted  (Part  GG);
   intentionally  omitted  (Part  HH);  intentionally  omitted (Part II);
   intentionally omitted (Part  JJ);  intentionally  omitted  (Part  KK);
   intentionally  omitted  (Part  LL);  to  amend the racing, pari-mutuel
   wagering and breeding law, in relation to the operation of  charitable
   gaming; to amend the social services law, in relation to penalties for

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-07-7

 S. 2009--B                          2
 
   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 the New York racing association, and to repeal  certain
   provisions  of  such  law  relating  thereto  (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); 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); to amend
   the tax law and the administrative code of the city of  New  York,  in
   relation  to business income base and certain small business taxpayers
   (Part SS); to amend the tax law, in  relation  to  real  property  tax
   credits for manufacturers (Part TT); to amend the tax law, in relation
   to  the  farm  workforce  retention credit (Part UU); to amend the tax
   law, in relation to the investment tax credit  for  certain  taxpayers
   that  operate  a  farm  operation  (Part VV); 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 WW); to amend the tax
   law, in relation to minimum wage reimbursement credit  (Part  XX);  to
   amend the real property tax law, in relation to the STAR exemption for
   property owned by small businesses (Part YY); to amend the tax law, in
   relation  to  the use of fulfillment services of certain persons (Part
   ZZ); to amend the tax law and the administrative code of the  city  of
   New  York,  in relation to qualified financial instruments of RICS and
   REITS (Part AAA); to amend the  tax  law,  in  relation  to  exempting
   unitary  corporation dividends from the definition of business capital
   for the purposes of the franchise tax on business  corporations  (Part
   BBB);  to  amend  the  tax  law,  in  relation to the amount of credit
   towards sales and compensating use taxes for vendors  (Part  CCC);  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  DDD);  to  amend  the  public  housing  law and the tax law, in
   relation to providing certain tax credits for construction or rehabil-
   itation of middle-income housing (Part EEE); to amend the tax law,  in
   relation to establishing a credit against income tax for the rehabili-
   tation  of  distressed  commercial properties (Part FFF); to amend the
   tax law, in relation to providing a tax credit for  universal  visita-
   bility; and providing for the repeal of such provisions upon the expi-
   ration  thereof  (Part  GGG); to amend the tax law, in relation to the

 S. 2009--B                          3
 
   imposition of tax and rate (Part  HHH);  to  amend  the  tax  law,  in
   relation  to  the  metropolitan  commuter  transportation mobility tax
   (Part III); to amend the tax law,  in  relation  to  the  metropolitan
   transportation  business  tax  surcharge  (Part JJJ); to amend the tax
   law, in relation to increasing the exemption for pensions  and  annui-
   ties  for  certain  persons  (Part  KKK); to amend the tax law and the
   insurance law, in relation to increasing the tax credits for  premiums
   paid  for  long-term  care  insurance  or for a policy rider to a life
   insurance policy (Part LLL); to amend the  tax  law,  in  relation  to
   establishing  a tax deduction for the adoption of a child with special
   needs (Part MMM); to amend the tax law, in relation to cost of  living
   adjustment  (Part  NNN);  to amend the tax law, in relation to returns
   and liabilities (Part OOO); to amend  the  tax  law,  in  relation  to
   designated  accounts  for  personal  income tax refunds (Part PPP); to
   amend the real property tax law and the tax law, in relation to remov-
   ing references to the school tax relief credit; and to repeal  certain
   provisions  of such laws relating thereto (Part QQQ); to amend the tax
   law, in relation to advance payments of the school tax  relief  credit
   (Part  RRR);  to  amend  the tax law, in relation to exempting certain
   monuments from sales and use taxes (Part SSS); to amend the  tax  law,
   in  relation  to providing an exemption for tangible personal property
   and services sold by a cemetery; in relation to establishing an amnes-
   ty program for cemetery corporations (Part TTT); to amend the tax law,
   in relation to granting sales and compensating use tax exemptions  for
   certain  tangible personal property and services used in the operation
   of recreational skiing facilities (Part UUU); to amend the tax law, in
   relation to exemptions from the sales and  compensating  use  tax  for
   tastings  held  by  a  licensed brewery, farm brewery, cider producer,
   farm cidery, distillery or farm  distillery  in  accordance  with  the
   alcoholic  beverage  control  law (Part VVV); to amend the tax law, in
   relation to the prepayment of sales tax on motor fuel and Diesel motor
   fuel; and providing for the repeal of such provisions upon  expiration
   thereof  (Part  WWW);  to amend the tax law and part C of chapter 2 of
   the laws of 2005 amending the tax  law  relating  to  exemptions  from
   sales and use taxes, in relation to extending certain provisions ther-
   eof;  to amend the general city law and the administrative code of the
   city of New York, in relation to extending certain provisions relating
   to relocation and employment assistance credits; to amend the  general
   city  law  and  the  administrative  code  of the city of New York, in
   relation to extending certain provisions relating to specially  eligi-
   ble  premises and special rebates; to amend the administrative code of
   the city of New York, in  relation  to  extending  certain  provisions
   relating  to  exemptions  and  deductions from base rent; to amend the
   real property tax law, in relation  to  extending  certain  provisions
   relating  to  eligibility  periods and requirements; to amend the real
   property tax law, in relation to extending certain provisions relating
   to eligibility periods and requirements, benefit periods and  applica-
   tions  for abatements; to amend the administrative code of the city of
   New York, in relation to extending certain provisions  relating  to  a
   special  reduction  in determining the taxable base rent; to amend the
   real property tax law and the administrative code of the city  of  New
   York, in relation to extending certain provisions relating to applica-
   tions  for  abatement of tax payments (Part XXX); to amend the tax law
   and the education law, in relation to enacting the "education afforda-
   bility act" (Part YYY); to amend the tax law, in  relation  to  estab-
   lishing the green building credit (Part ZZZ); to amend the tax law, in

 S. 2009--B                          4
 
   relation  to establishing a forestry stewardship and habitat conserva-
   tion credit for personal income and  business  franchise  taxes  (Part
   AAAA);  to  amend chapter 97 of the laws of 2011, amending the general
   municipal  law  and  the education law relating to establishing limits
   upon school district and local government tax levies, in  relation  to
   eliminating  the expiration of and making permanent certain provisions
   thereof (Part BBBB); to amend the New  York  state  urban  development
   corporation  act,  in  relation  to  certain  qualified entities (Part
   CCCC); to amend the racing, pari-mutuel wagering and breeding law  and
   the  tax  law, in relation to certain fiscal requirements imposed with
   respect to conducting horse races  at  raceways  and  racetracks;  and
   providing  for  the  repeal  of certain provisions upon the expiration
   thereof (Part DDDD); 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 EEEE); to amend the
   racing, pari-mutuel wagering and breeding law and the  penal  law,  in
   relation  to  allowing certain interactive poker games (Part FFFF); to
   amend the racing, pari-mutuel wagering and breeding law,  in  relation
   to  creating the racing fan advisory council (Part GGGG); to amend the
   tax law, in relation to an  additional  vendor's  marketing  allowance
   (Part  HHHH);  to  amend the tax law, in relation to allowable college
   tuition expenses (Part IIII); to amend the education law and  the  tax
   law,  in  relation  to  establishing  the college debt freedom account
   program (Part JJJJ); to amend the state finance law,  in  relation  to
   establishing a spending cap and increasing the maximum capacity of the
   rainy  day fund (Part KKKK); to amend the racing, pari-mutuel wagering
   and breeding law, in relation to approval, denial and renewal of casi-
   no and gaming employee licenses and registrations (Part LLLL); and  to
   amend the tax law, in relation to authorizing advertising during quick
   draw and on lottery tickets (Part MMMM)
 
   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 MMMM. 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

 S. 2009--B                          5
 
                                  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:

 S. 2009--B                          6
 
 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

 S. 2009--B                          7
 
                                          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--B                          8
 
                                          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

 S. 2009--B                          9
 
 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

 S. 2009--B                         10
 
   (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

 S. 2009--B                         11
 
 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.

 S. 2009--B                         12
 
   § 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
 
                           Intentionally Omitted

                                  PART G
 
                           Intentionally Omitted
 
                                  PART H
 
                           Intentionally Omitted
 
                                  PART I
 
                           Intentionally Omitted
 
                                  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:
   § 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-

 S. 2009--B                         13
 
 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,
 investment banks,  portfolio  managers,  trust  offices,  and  insurance
 companies.

 S. 2009--B                         14
 
   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
 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

 S. 2009--B                         15
 
 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
 life  sciences,  including  but not limited to agriculture, electronics,
 environmental, biology,  botany,  biotechnology,  computers,  chemistry,

 S. 2009--B                         16
 
 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
   § 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:

 S. 2009--B                         17
 
   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
           $ 36 million                               2024

 S. 2009--B                         18
 
   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
 OR  AFTER  JANUARY  FIRST, TWO THOUSAND TWENTY-EIGHT. SUCH CREDIT MAY BE

 S. 2009--B                         19
 
 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
 THAT  NO CREDIT SHALL BE ALLOWED FOR TAXABLE YEARS BEGINNING ON OR AFTER

 S. 2009--B                         20
 
 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
 THAT SUCH INVESTMENT IS AT RISK AND IS NOT  SECURED  OR  GUARANTEED.  AN

 S. 2009--B                         21
 
 "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
 INITIAL  ANGEL INVESTMENT IN SUCH LIFE SCIENCES COMPANY EMPLOY TWENTY OR

 S. 2009--B                         22
 
 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-
 SARY AND  APPROPRIATE.  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  TO  THE

 S. 2009--B                         23
 
 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.
   (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--B                         24
 
 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
 
                           Intentionally Omitted
 
                                  PART M

 S. 2009--B                         25
 
   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
 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

 S. 2009--B                         26

 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.
   §  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,

 S. 2009--B                         27
 
 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
 
                           Intentionally Omitted
 
                                  PART O
 
                           Intentionally Omitted
 
                                  PART P
 
                           Intentionally Omitted
 
                                  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

 S. 2009--B                         28
 
 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.  HOWEVER, IF THE
 TAXPAYER IS THE SINGLE MEMBER OF MORE THAN ONE LIMITED LIABILITY COMPANY
 THAT  ARE  EACH  SEPARATELY CERTIFIED UNDER THE EMPIRE ZONES PROGRAM, AS
 DEFINED UNDER ARTICLE EIGHTEEN-B  OF  THE  GENERAL  MUNICIPAL  LAW,  THE
 TAXPAYER  MAY  ELECT  TO HAVE EACH CERTIFIED BUSINESS ENTERPRISE TREATED
 SEPARATELY UNDER THE REQUIREMENTS OF THE EMPIRE ZONES PROGRAM  BASED  ON
 THE  EFFECTIVE  DATE  OF  CERTIFICATION OF EACH SEPARATE BUSINESS ENTER-
 PRISE. IN SUCH INSTANCE, THE SEPARATE TREATMENT OF TWO OR MORE  BUSINESS
 ENTERPRISES  SHALL  BE  DETERMINED  BY AN ELECTION MADE BY THE TAXPAYER,
 WHICH ELECTION INCLUDES THE DATE OF CERTIFICATION OF THE BUSINESS ENTER-
 PRISE AND ITS INTENDED BENEFIT PERIOD. SUCH ELECTION SHALL APPLY TO  ALL
 TAXABLE  YEARS  FOR WHICH THE STATUTE OF LIMITATION FOR SEEKING A REFUND
 OR ASSESSING ADDITIONAL TAX IS STILL OPEN.
   § 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
 
                           Intentionally Omitted

 S. 2009--B                         29

                                  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 LESS THAN ONE HUNDRED
 FIFTY THOUSAND DOLLARS, THE APPLICABLE PERCENTAGE SHALL BE THE  APPLICA-
 BLE 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:
   LESS THAN $50,000                                  0.5
   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. Subsection (c) of section 606 of the tax law is amended by adding
 a new paragraph 1-b to read as follows:
   (1-B)  NOTWITHSTANDING  ANYTHING IN THIS SUBSECTION TO THE CONTRARY, A
 TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN THIS SUBSECTION  EQUAL
 TO THE APPLICABLE PERCENTAGE OF THE CREDIT ALLOWABLE UNDER SECTION TWEN-
 TY-ONE  OF  THE INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR (WITHOUT
 REGARD TO WHETHER THE TAXPAYER IN FACT CLAIMED  THE  CREDIT  UNDER  SUCH
 SECTION  TWENTY-ONE  FOR SUCH TAXABLE YEAR) THAT WOULD HAVE BEEN ALLOWED
 ABSENT THE APPLICATION OF SECTION 21(C) OF SUCH CODE FOR TAXPAYERS  WITH
 MORE  THAN TWO QUALIFYING INDIVIDUALS, PROVIDED HOWEVER, THAT THE CREDIT
 SHALL BE CALCULATED AS IF THE DOLLAR LIMIT ON  AMOUNT  CREDITABLE  SHALL
 NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS IF THERE ARE THREE QUALI-
 FYING INDIVIDUALS, EIGHT THOUSAND FIVE HUNDRED DOLLARS IF THERE ARE FOUR
 QUALIFYING  INDIVIDUALS,  AND NINE THOUSAND DOLLARS IF THERE ARE FIVE OR
 MORE QUALIFYING INDIVIDUALS.
   § 3. This act shall take effect immediately.

                                  PART U
 
                           Intentionally Omitted
 
                                  PART V
 
                           Intentionally Omitted
 
                                  PART W
 
                           Intentionally Omitted
 
                                  PART X
 
                           Intentionally Omitted

 S. 2009--B                         30
 
                                  PART Y
 
                           Intentionally Omitted
 
                                  PART Z
 
                           Intentionally Omitted
 
                                  PART AA
 
                           Intentionally Omitted
 
                                  PART BB
 
                           Intentionally Omitted
 
                                  PART CC
 
                           Intentionally Omitted
 
                                  PART DD
 
                           Intentionally Omitted
 
                                  PART EE
 
                           Intentionally Omitted
 
                                  PART FF
 
                           Intentionally Omitted
 
                                  PART GG
 
                           Intentionally Omitted
 
                                  PART HH
 
                           Intentionally Omitted
 
                                  PART II
 
                           Intentionally Omitted
 
                                  PART JJ

 S. 2009--B                         31
 
                           Intentionally Omitted
 
                                  PART KK

                           Intentionally Omitted
 
                                  PART LL
 
                           Intentionally Omitted
 
                                  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

 S. 2009--B                         32
 
   (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
 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.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  BELL  JAR  VENDING
 MACHINES  SHALL  DISPENSE  PREPRINTED  PHYSICAL BELL JAR TICKETS AND MAY
 INCLUDE FEATURES TO AID PLAYERS AND  ENHANCE  ACCOUNTABILITY,  INCLUDING
 FUNCTIONALITY  TO  ELECTRONICALLY VERIFY IF A TICKET IS REDEEMABLE FOR A
 PRIZE, REVEAL TICKET RESULTS THROUGH CREATIVE AUDIO AND VIDEO  DISPLAYS,
 AND  ELECTRONICALLY  AGGREGATE  WINNING  PRIZES  FOR  CONTINUE PLAY OR A
 SINGLE VOUCHER FOR PRIZE REDEMPTION. AFTER THE EFFECTIVE  DATE  OF  THIS

 S. 2009--B                         33

 ARTICLE,  NO  NEW  BELL  JAR TICKET VENDING MACHINE SHALL BE DEPLOYED OR
 USED BY ANY LICENSED AUTHORIZED ORGANIZATION WITHIN  THE  JURISDICTIONAL
 BOUNDARIES DEFINED IN SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED ELEVEN
 OF  THIS  CHAPTER  UNLESS  THE  BOARD SHALL FIRST ISSUE A FORMAL WRITTEN
 OPINION THAT THE SPECIFIC TYPE OF VENDING MACHINE TO BE DEPLOYED IS  NOT
 VIOLATIVE  OF A VALID AND EFFECTIVE GAMING COMPACT BETWEEN THE STATE AND
 AN INDIAN TRIBE OR NATION.
   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 LICENSE.  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. "CLERK" SHALL MEAN THE CLERK OF A MUNICIPALITY OUTSIDE THE CITY OF
 NEW YORK.
   11.  "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-A. "COMMISSION" SHALL MEAN THE NEW YORK STATE GAMING COMMISSION.
   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.

 S. 2009--B                         34
 
   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;
   (B)  FOR  GAMES OF CHANCE OTHER THAN BELL JARS OR RAFFLES, A PERIOD OF
 TIME NOT TO EXCEED FOURTEEN CONSECUTIVE HOURS; AND

 S. 2009--B                         35
 
   (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, BOOKKEEP-
 ING 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.

 S. 2009--B                         36
 
   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
 OF  RAFFLE,  A  SERIES  OF PRIZES MAY INCLUDE A PERCENTAGE OF THE SUM OF
 CASH RECEIVED FROM THE SALE OF RAFFLE TICKETS.

 S. 2009--B                         37
 
   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.  PROVIDED, HOWEVER FOR THE
 GAME OF BINGO A PERSON UNDER THE AGE  EIGHTEEN  SHALL  BE  PERMITTED  TO
 ASSIST IN THE PREPARATION AND SALE OF CONCESSION STAND ITEMS IF ACCOMPA-
 NIED BY AN ADULT.
   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.
 PROVIDED,  HOWEVER  THAT A PERSON UNDER THE AGE OF EIGHTEEN YEARS OF AGE
 WHO IS SIXTEEN YEARS OF AGE OR OLDER SHALL BE PERMITTED TO ASSIST IN ANY
 RAFFLE OR BINGO IF ACCOMPANIED BY AN ADULT.
   § 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 OR TELEVISION  AS
 MAY BE PERMITTED 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

 S. 2009--B                         38
 
 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.
         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

 S. 2009--B                         39
 
 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
 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;

 S. 2009--B                         40
 
   (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.
   (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.

 S. 2009--B                         41
 
   (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
 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

 S. 2009--B                         42
 
 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
 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.

 S. 2009--B                         43
 
         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
 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,

 S. 2009--B                         44
 
 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
 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.

 S. 2009--B                         45
 
   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
 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

 S. 2009--B                         46
 
 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
 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,

 S. 2009--B                         47
 
 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;
   (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 SIXTY PERCENT 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

 S. 2009--B                         48
 
 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
 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.

 S. 2009--B                         49
 
   §  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.
   (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

 S. 2009--B                         50
 
 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
 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

 S. 2009--B                         51
 
   (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
 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.

 S. 2009--B                         52
 
   § 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.
   (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

 S. 2009--B                         53
 
   (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.
   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.

 S. 2009--B                         54
 
         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.
         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

 S. 2009--B                         55
 
 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
 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

 S. 2009--B                         56
 
 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.
   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.

 S. 2009--B                         57

   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.
   (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

 S. 2009--B                         58
 
 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;  PROVIDED, HOWEVER, NOTHING IN THIS SUBDIVISION SHALL PROHIBIT A
 GAME OF CHANCE FROM BEING CONDUCTED ON STATE-OWNED PROPERTY.
   (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.

 S. 2009--B                         59
 
   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
 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.

 S. 2009--B                         60
 
   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
 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;

 S. 2009--B                         61
 
   (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
   (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

 S. 2009--B                         62
 
 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
 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

 S. 2009--B                         63

 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
   (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 SIXTY PERCENT OF ALL LICENSE FEES FOR

 S. 2009--B                         64
 
 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
   (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

 S. 2009--B                         65
 
 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-
 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

 S. 2009--B                         66
 
 "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.
   § 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

 S. 2009--B                         67
 
 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
 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

 S. 2009--B                         68
 
 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,
 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;

 S. 2009--B                         69
 
   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;
   (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.

 S. 2009--B                         70
 
   §  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.
   1-A.  APPROVAL  OF  BELL JAR VENDING MACHINES. NO MANUFACTURER OF BELL
 JAR VENDING MACHINES SHALL SELL, LEASE,  OR  OTHERWISE  DISTRIBUTE  SUCH
 VENDING  MACHINES  TO  AN AUTHORIZED DISTRIBUTOR FOR SALE OR LEASE TO AN
 AUTHORIZED ORGANIZATION OR PERMIT  ITS  VENDING  MACHINES  TO  BE  SOLD,
 LEASED,  OR OTHER DISTRIBUTED TO AN AUTHORIZED DISTRIBUTOR OR AUTHORIZED
 ORGANIZATION UNTIL SUCH MANUFACTURER HAS BEEN ISSUED A  LICENSE  BY  THE
 COMMISSION  AND  UNTIL  SUCH  VENDING  MACHINE  HAS BEEN APPROVED BY THE
 COMMISSION, PURSUANT TO REGULATIONS ADOPTED BY THE COMMISSION,  PROVIDED
 SUCH  VENDING  MACHINE  CONTAINS  IDENTICAL FUNCTIONALITY AS THE VENDING
 MACHINE APPROVED BY THE COMMISSION. AN APPLICATION FOR A  LICENSE  OR  A
 RENEWAL  OF  SUCH  LICENSE SHALL BE ACCOMPANIED BY A FEE OF ONE THOUSAND
 DOLLARS AND SHALL BE MADE ON  FORMS  PRESCRIBED  BY  THE  COMMISSION.  A
 LICENSE  SHALL  BE VALID FOR A PERIOD OF ONE YEAR FROM THE DATE OF ISSU-
 ANCE.
   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.

 S. 2009--B                         71
 
   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-
 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.

 S. 2009--B                         72
 
   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.
   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

 S. 2009--B                         73
 
   (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
 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

 S. 2009--B                         74
 
 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.
   5.  (A)  WITHIN  FIVE BUSINESS DAYS AFTER THE SALE, LEASE, OR DISTRIB-
 UTION OF A BELL JAR VENDING MACHINE TO  AN  AUTHORIZED  ORGANIZATION,  A
 DISTRIBUTOR  SHALL  PROVIDE  THE  COMMISSION  WITH A COPY OF THE INVOICE
 WHICH SHOWS: (I) THE NAME AND ADDRESS OF  THE  AUTHORIZED  ORGANIZATION;
 (II)  THE  DATE OF SALE, LEASE, OR DISTRIBUTION; (III) THE SERIAL NUMBER
 OF EACH SUCH VENDING MACHINE; AND (IV) SUCH  OTHER  INFORMATION  AS  THE
 COMMISSION MAY, BY REGULATION, DIRECT.
   (B)  AN  AUTHORIZED  ORGANIZATION  MAY  ONLY  OPERATE BELL JAR VENDING
 MACHINES ON PREMISES THAT IT OWNS OR LEASES.
   (C) EACH BELL JAR VENDING MACHINE SHALL GENERATE SUCH REPORTS AND SUCH
 OTHER INFORMATION THAT THE COMMISSION MAY DIRECT, BY  REGULATION,  WHICH
 ALLOWS THE COMMISSION TO DETERMINE THAT THE VENDING MACHINE IS OPERATING
 IN ACCORDANCE WITH LAW.
   (D) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION,
 THE MONTHLY FEE TO BE PAID TO THE COMMISSION FOR OPERATING EACH BELL JAR
 VENDING MACHINE SHALL BE FIVE PERCENT OF THE NET PROCEEDS FROM EACH BELL
 JAR  VENDING  MACHINE  DURING THE PRECEDING MONTH. NET PROCEEDS SHALL BE
 DEFINED BY PARAGRAPH (B) OF SUBDIVISION TWENTY-THREE OF SECTION  FIFTEEN
 HUNDRED OF THIS ARTICLE.
   § 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

 S. 2009--B                         75

 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.
   §  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

 S. 2009--B                         76
 
   Section 1. Subdivision 1 of section 207  of  the  racing,  pari-mutuel
 wagering  and  breeding law is REPEALED and a new subdivision 1 is added
 to read as follows:
   1. A. THE BOARD OF DIRECTORS, TO BE CALLED THE NEW YORK RACING ASSOCI-
 ATION  BOARD,  SHALL  CONSIST OF FIFTEEN MEMBERS, EIGHT OF WHOM SHALL BE
 ELECTED BY THE EXECUTIVE COMMITTEE OF THE NEW  YORK  RACING  ASSOCIATION
 REORGANIZATION BOARD OF WHICH AT LEAST ONE SHALL BE A FULL TIME RESIDENT
 OF  EACH OF NASSAU, QUEENS AND SARATOGA COUNTIES, ONE SHALL BE THE CHIEF
 EXECUTIVE OFFICER OF THE NEW  YORK  RACING  ASSOCIATION,  TWO  SHALL  BE
 APPOINTED BY THE GOVERNOR, ONE SHALL BE APPOINTED BY THE TEMPORARY PRES-
 IDENT OF THE SENATE, ONE SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEM-
 BLY,  ONE SHALL BE APPOINTED BY THE NEW  YORK THOROUGHBRED BREEDERS INC.
 PROVIDED THAT A CURRENT BOARD MEMBER OF THE NEW YORK RACING  ASSOCIATION
 SHALL  SERVE  ON  THE  BOARD  OF  DIRECTORS OF THE NEW YORK THOROUGHBRED
 BREEDERS INC., AND ONE SHALL BE 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)
 PROVIDED  THAT A CURRENT BOARD MEMBER OF THE NEW YORK RACING ASSOCIATION
 SHALL SERVE ON THE BOARD OF  DIRECTORS  OF  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).
   (I) THE GOVERNOR SHALL NOMINATE A MEMBER TO SERVE AS THE FIRST  CHAIR,
 SUBJECT  TO CONFIRMATION BY MAJORITY VOTE OF THE BOARD OF DIRECTORS. ALL
 MEMBERS SHALL HAVE EQUAL VOTING RIGHTS.
   (II) IN THE EVENT OF A MEMBER VACANCY OCCURRING BY DEATH,  RESIGNATION
 OR  OTHERWISE,  THE  RESPECTIVE  APPOINTING  OFFICER  OR  OFFICERS 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 REORGANIZATION BOARD, SHALL BE FILLED BY
 THE REMAINING SUCH MEMBERS.
   (III) EACH BOARD MEMBER, OTHER THAN THE CHIEF EXECUTIVE OFFICER OF THE
 NEW YORK RACING ASSOCIATION, SHALL SERVE A TERM OF THREE YEARS. HOWEVER,
 THE  FIRST TERMS OF FIVE OF THE MEMBERS ELECTED BY THE EXECUTIVE COMMIT-
 TEE OF THE NEW YORK RACING ASSOCIATION REORGANIZATION BOARD SHALL EXPIRE
 DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN; THE  FIRST  TERMS  OF  THE
 REMAINING  THREE  MEMBERS  ELECTED BY THE EXECUTIVE COMMITTEE OF THE NEW
 YORK RACING ASSOCIATION REORGANIZATION BOARD, THE  MEMBER  APPOINTED  BY
 THE NEW YORK THOROUGHBRED BREEDERS INC., AND THE MEMBER APPOINTED BY THE
 NEW YORK THOROUGHBRED HORSEMEN'S ASSOCIATION SHALL EXPIRE DECEMBER THIR-
 TY-FIRST,  TWO  THOUSAND  NINETEEN;  AND  THE FIRST TERMS OF THE MEMBERS
 APPOINTED BY THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER
 OF THE ASSEMBLY SHALL EXPIRE DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY.
   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; AN EQUINE SAFETY COMMITTEE, TO REVIEW INDUSTRY BEST PRACTICES TO
 IMPROVE  THE  SAFETY OF HORSES RACING AT EACH OF THE THREE RACETRACKS; A
 FINANCE COMMITTEE, TO REVIEW ANNUAL OPERATING AND  CAPITAL  BUDGETS  FOR
 EACH  OF  THE  THREE RACETRACKS; A NOMINATING COMMITTEE, TO NOMINATE ANY
 NEW DIRECTORS TO BE DESIGNATED BY THE FRANCHISED CORPORATION TO  REPLACE
 ITS  EXISTING  DIRECTORS;  A  RACING  COMMITTEE, TO REVIEW INDUSTRY BEST
 PRACTICES TO IMPROVE THE QUALITY OF RACING AT THE THREE RACETRACKS;  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 THE

 S. 2009--B                         77
 
 DIRECTOR  APPOINTED  BY  THE  TEMPORARY  PRESIDENT OF THE SENATE AND THE
 DIRECTOR APPOINTED BY THE SPEAKER OF THE ASSEMBLY.
   C.  UPON  THE  EFFECTIVE  DATE OF THIS PARAGRAPH, THE STRUCTURE OF THE
 BOARD OF THE FRANCHISED CORPORATION SHALL BE DEEMED TO  BE  INCORPORATED
 WITHIN  AND  MADE  PART OF THE CERTIFICATE OF INCORPORATION OF THE FRAN-
 CHISED CORPORATION, AND NO AMENDMENT TO  SUCH  CERTIFICATE  OF  INCORPO-
 RATION  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 BY UNANIMOUS VOTE OF THE
 BOARD.
   § 2. 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 main-
 tain 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
 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

 S. 2009--B                         78
 
 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
 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

 S. 2009--B                         79
 
 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
 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.

 S. 2009--B                         80
 
   § 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
 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

 S. 2009--B                         81
 
 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
 
   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:

 S. 2009--B                         82
 
   (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]
 GAMING  COMMISSION,  and  that  such vendor track demonstrates that such
 capital expenditures will increase  patronage  at  such  vendor  track's
 facilities and increase the amount of revenue generated to support state
 education  programs.  The  annual amount of such vendor's capital awards
 that a vendor track shall be eligible to receive shall be limited to two
 million five hundred thousand  dollars,  except  for  THE  VENDOR  TRACK
 LOCATED  IN  WESTCHESTER  COUNTY AND 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 FOR THE AQUEDUCT
 VIDEO LOTTERY TERMINAL FACILITY OPERATOR AND THE VENDOR TRACK LOCATED IN
 WESTCHESTER COUNTY shall only be provided pursuant to an agreement  with
 the  RESPECTIVE  operator  to  construct  an  expansion of the facility,
 hotel, and convention and exhibition space requiring a  minimum  capital
 investment  of  three  hundred  million  dollars  FOR THE AQUEDUCT VIDEO
 LOTTERY TERMINAL FACILITY AND ONE HUNDRED EIGHTY MILLION DOLLARS FOR THE
 VENDOR TRACK LOCATED IN WESTCHESTER COUNTY.  [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-invest an amount of capital
 expenditure equal to its cumulative vendor's  capital  award.]  For  all
 tracks,  except for Aqueduct racetrack, the amount of any vendor's capi-
 tal award that is not used during any one year  period  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]  TWENTY;  or
 approved  prior to April first, two thousand [twenty-one] TWENTY-TWO and
 completed before April first, two  thousand  [twenty-three]  TWENTY-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  thou-
 sand  [seventeen] EIGHTEEN and completed prior to April first, two thou-
 sand [nineteen] TWENTY, exceed the  vendor  track's  cumulative  capital

 S. 2009--B                         83
 
 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. Paragraph 2 of subdivision c of section 1612 of the tax  law,  as
 amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
 follows:
   2. Of the ten percent retained  by  the  division  for  administrative
 purposes,  any amounts beyond that which are necessary for the operation
 and administration of this [pilot] program shall be  [deposited  in  the
 lottery  education  account]  MADE  AVAILABLE  FOR VENDOR CAPITAL AWARDS
 PURSUANT TO CLAUSE (H) OF SUBPARAGRAPH (II) OF PARAGRAPH ONE OF SUBDIVI-
 SION B OF THIS SECTION.
   § 3. This act shall take effect immediately.
 
                                  PART RR
 
   Section 1. Subdivision 3 of section 99-h of the state finance law,  as
 amended  by  section 7 of 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

 S. 2009--B                         84
 
 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 ANNUALLY THE  SUM  OF
 TWO  AND  ONE  QUARTER  MILLION DOLLARS TO THE COUNTY OF MADISON FOR THE
 IMPACT OF GAMING DEVICES LOCATED WITHIN ITS BORDERS.  Additionally,  the
 state  shall  distribute for a period of nineteen 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 trans-
 ferred to the general fund for the  support  of  government  during  the
 fiscal year in which they are received.
   §  2.  Subdivision  3  of  section  99-h  of the state finance law, as
 amended by section 8 of 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 county of Erie or
 Niagara, the municipal governments hosting the  facility  shall  collec-
 tively  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 county or counties of Cattaraugus,  Chau-
 tauqua  or  Allegany, 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  available 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
 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  ANNUALLY  THE  SUM OF TWO AND ONE QUARTER MILLION DOLLARS TO
 THE COUNTY OF MADISON FOR THE IMPACT OF GAMING  DEVICES  LOCATED  WITHIN
 ITS  BORDERS.  Additionally, the state shall distribute, for a period of
 nineteen and one-quarter years, an additional  annual  sum  of  two  and

 S. 2009--B                         85
 
 one-half  million  dollars  to  the  county of Oneida. Additionally, the
 state shall distribute the one-time eleven million dollar payment  actu-
 ally  received  by the state pursuant to the Oneida Settlement Agreement
 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.
   §  3.  This  act  shall take effect immediately and shall be deemed in
 full force and effect on the date the state  actually  receives  payment
 from  gaming devices located in Madison county, provided that the amend-
 ments to subdivision 3 of section 99-h of the state finance law made  by
 section one of this act shall be subject to the expiration and reversion
 of  such  section as provided in section 4 of chapter 747 of the laws of
 2006, as amended when upon such date the provisions of  section  two  of
 this act shall take effect.
 
                                  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 FOUR HUNDRED
 THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS INCOME
 BASE;  IF  THE  BUSINESS  INCOME BASE IS MORE THAN FOUR HUNDRED THOUSAND
 DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE AMOUNT  SHALL  BE
 THE SUM OF (1) SIXTEEN THOUSAND DOLLARS, (2) SIX AND ONE-HALF PERCENT OF
 THE  EXCESS  OF  THE  BUSINESS  INCOME  BASE  OVER FOUR HUNDRED THOUSAND
 DOLLARS BUT NOT OVER  FIVE  HUNDRED  THOUSAND  DOLLARS  AND  (3)  TWENTY
 PERCENT  OF  THE  EXCESS  OF  THE BUSINESS INCOME BASE OVER FOUR HUNDRED
 FIFTY THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS;
   (C) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
 SAND NINETEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN FOUR HUNDRED
 THOUSAND  DOLLARS  THE  AMOUNT  SHALL BE TWO AND ONE-HALF PERCENT OF THE
 BUSINESS INCOME BASE; IF THE BUSINESS INCOME  BASE  IS  MORE  THAN  FOUR
 HUNDRED  THOUSAND DOLLARS BUT NOT OVER FIVE HUNDRED THOUSAND DOLLARS THE
 AMOUNT SHALL BE THE SUM OF (1) TEN THOUSAND DOLLARS, (2)  SIX  AND  ONE-
 HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER FOUR HUNDRED
 THOUSAND  DOLLARS  BUT  NOT  OVER  FIVE HUNDRED THOUSAND DOLLARS AND (3)
 THIRTY-TWO PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE  OVER  FOUR
 HUNDRED  FIFTY  THOUSAND  DOLLARS  BUT  NOT  OVER  FIVE HUNDRED THOUSAND
 DOLLARS.

 S. 2009--B                         86
 
   § 2. Paragraph 39 of subsection (c) of section 612 of the tax law,  as
 added  by  section  1  of  part  Y of chapter 59 of the laws of 2013, is
 amended to read as follows:
   (39)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
 TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
 COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
 SMALL BUSINESS, who OR WHICH has business income [and/or farm income] as
 defined in the laws of the United States, an  amount  equal  to  [three]
 FIVE  percent  of  the  net  items  of  income, gain, loss and deduction
 attributable to such business [or farm] entering into  federal  adjusted
 gross  income, but not less than zero, for taxable years beginning after
 two thousand [thirteen] SEVENTEEN, an amount equal to [three and  three-
 quarters]  TEN  percent  of  the  net  items  of  income, gain, loss and
 deduction attributable to such business [or farm] entering into  federal
 adjusted  gross income, but not less than zero, for taxable years begin-
 ning after two thousand [fourteen] EIGHTEEN,  and  an  amount  equal  to
 [five]  NINETEEN  percent  of  the  net  items of income, gain, loss and
 deduction attributable to such business [or farm] entering into  federal
 adjusted  gross income, but not less than zero, for taxable years begin-
 ning after two thousand [fifteen] NINETEEN.
   (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
 IS A MEMBER, PARTNER, OR SHAREHOLDER OF  A  LIMITED  LIABILITY  COMPANY,
 PARTNERSHIP,  OR  NEW  YORK  S CORPORATION, RESPECTIVELY, THAT IS A FARM
 BUSINESS, WHO OR WHICH HAS FARM INCOME AS DEFINED BY  THE  LAWS  OF  THE
 UNITED  STATES,  AN  AMOUNT  EQUAL TO TWENTY PERCENT OF THE NET ITEMS OF
 INCOME, GAIN, LOSS AND DEDUCTION ATTRIBUTABLE TO  SUCH  FARM.  THE  TERM
 FARM  BUSINESS  SHALL  MEAN  A FARM BUSINESS THAT HAS NET FARM INCOME OF
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS.
   (C) (I) For the purposes of this paragraph, the  term  small  business
 shall mean: (I) a sole proprietor [or a farm business who employs one or
 more  persons  during  the taxable year and] who has net business income
 [or net farm income] of less than [two hundred fifty] FIVE HUNDRED thou-
 sand dollars; OR (II) A LIMITED LIABILITY COMPANY,  PARTNERSHIP  OR  NEW
 YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI-
 NESS  INCOME  ATTRIBUTABLE  TO  A NON-FARM BUSINESS THAT IS GREATER THAN
 ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM
 INCOME ATTRIBUTABLE TO A FARM BUSINESS THAT IS  GREATER  THAN  ZERO  BUT
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA-
 GRAPH,  THE  TERM  NEW YORK GROSS BUSINESS INCOME SHALL MEAN: (I) IN THE
 CASE OF A LIMITED LIABILITY COMPANY OR A PARTNERSHIP,  NEW  YORK  SOURCE
 GROSS  INCOME  AS  DEFINED  IN  SUBPARAGRAPH  (B)  OF PARAGRAPH THREE OF
 SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT OF THIS ARTICLE,  AND,
 (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED
 IN  THE  NUMERATOR  OF THE APPORTIONMENT FACTOR DETERMINED UNDER SECTION
 TWO HUNDRED TEN-A OF ARTICLE NINE-A OF  THIS  CHAPTER  FOR  THE  TAXABLE
 YEAR.
   (D)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL
 BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK  S
 CORPORATION,  THE  TAXPAYER'S  INCOME  ATTRIBUTABLE  TO THE NET BUSINESS
 INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
 NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST  BE  LESS  THAN  FIVE
 HUNDRED THOUSAND DOLLARS.
   §  3. Paragraph 35 of subdivision (c) of section 11-1712 of the admin-
 istrative code of the city of New York, as added by section 2 of part  Y
 of chapter 59 of the laws of 2013, is amended to read as follows:

 S. 2009--B                         87
 
   (35)  (A)  In  the  case  of  a  taxpayer who is a small business OR A
 TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
 COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
 SMALL BUSINESS, who OR WHICH has business income [and/or farm income] as
 defined  in  the  laws  of the United States, an amount equal to [three]
 FIFTEEN percent of the net items of income,  gain,  loss  and  deduction
 attributable  to  such business [or farm] entering into federal adjusted
 gross income, but not less than zero[, for taxable years beginning after
 two thousand thirteen, an  amount  equal  to  three  and  three-quarters
 percent  of  the net items of income, gain, loss and deduction attribut-
 able to such business or  farm  entering  into  federal  adjusted  gross
 income,  but  not  less than zero, for taxable years beginning after two
 thousand fourteen, and an amount equal to five percent of the net  items
 of  income,  gain,  loss  and deduction attributable to such business or
 farm entering into federal adjusted gross  income,  but  not  less  than
 zero, for taxable years beginning after two thousand fifteen].
   (B) IN THE CASE OF A TAXPAYER WHO IS A FARM BUSINESS OR A TAXPAYER WHO
 IS  A  MEMBER,  PARTNER,  OR SHAREHOLDER OF A LIMITED LIABILITY COMPANY,
 PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY,  THAT  IS  A  FARM
 BUSINESS,  WHO  OR  WHICH  HAS FARM INCOME AS DEFINED BY THE LAWS OF THE
 UNITED STATES, AN AMOUNT EQUAL TO TWENTY PERCENT OF  THE  NET  ITEMS  OF
 INCOME,  GAIN,  LOSS  AND  DEDUCTION ATTRIBUTABLE TO SUCH FARM. THE TERM
 FARM BUSINESS SHALL MEAN A FARM BUSINESS THAT HAS  NET  FARM  INCOME  OF
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS.
   (C)  (I)  For  the purposes of this paragraph, the term small business
 shall mean: (I) a sole proprietor [or a farm business who employs one or
 more persons during the taxable year and] who has  net  business  income
 [or net farm income] of less than [two hundred fifty] FIVE HUNDRED thou-
 sand  dollars;  OR  (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW
 YORK S CORPORATION THAT DURING THE TAXABLE YEAR HAS NEW YORK GROSS BUSI-
 NESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS  THAT  IS  GREATER  THAN
 ZERO BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND DOLLARS OR NET FARM
 INCOME  ATTRIBUTABLE  TO  A  FARM BUSINESS THAT IS GREATER THAN ZERO BUT
 LESS THAN FIVE HUNDRED THOUSAND DOLLARS. (II) FOR PURPOSES OF THIS PARA-
 GRAPH, THE TERM NEW YORK GROSS BUSINESS INCOME SHALL MEAN:  (I)  IN  THE
 CASE  OF  A  LIMITED LIABILITY COMPANY OR A PARTNERSHIP, NEW YORK SOURCE
 GROSS INCOME AS DEFINED  IN  SUBPARAGRAPH  (B)  OF  PARAGRAPH  THREE  OF
 SUBSECTION  (C)  OF SECTION SIX HUNDRED FIFTY-EIGHT OF THE TAX LAW, AND,
 (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW YORK RECEIPTS INCLUDED
 IN THE NUMERATOR OF THE APPORTIONMENT FACTOR  DETERMINED  UNDER  SECTION
 TWO HUNDRED TEN-A OF THE TAX LAW FOR THE TAXABLE YEAR.
   (D)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A NON-FARM SMALL
 BUSINESS THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK  S
 CORPORATION,  THE  TAXPAYER'S  INCOME  ATTRIBUTABLE  TO THE NET BUSINESS
 INCOME FROM ITS OWNERSHIP INTERESTS IN NON-FARM LIMITED LIABILITY COMPA-
 NIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST  BE  LESS  THAN  FIVE
 HUNDRED THOUSAND DOLLARS.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                  PART TT
 
   Section 1. Paragraph (a) of subdivision 43 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:

 S. 2009--B                         88
 
   (a) A qualified New York manufacturer, as defined in subparagraph (vi)
 of  paragraph  (a) of subdivision one of section two hundred ten of this
 article, will be allowed a credit equal to [twenty] FIFTY percent of the
 real property tax it paid during the  taxable  year  for  real  property
 owned by such manufacturer in New York which was principally used during
 the  taxable year for manufacturing to the extent not deducted in deter-
 mining  entire net income.  This credit will not be allowed if the  real
 property  taxes  that  are the basis for this credit are included in the
 calculation of another credit claimed by the taxpayer.
   § 2. Paragraph 1 of subdivision (xx) of section 606 of the tax law, as
 amended by section 8 of part I of chapter 59 of the  laws  of  2015,  is
 amended to read as follows:
   (1)  A  qualified New York manufacturer will be allowed a credit equal
 to [twenty] FIFTY percent of the real property tax it  paid  during  the
 taxable  year  for  real property owned by such manufacturer in New York
 which was principally used during the taxable year for manufacturing  to
 the  extent  not  deducted  in computing New York adjusted gross income.
 This credit will not be allowed if the real property taxes that are  the
 basis  for this credit are included in the calculation of another credit
 claimed by the taxpayer.
   § 3. This act shall take effect immediately and  shall  apply  to  tax
 years beginning on or after January 1, 2017.
 
                                  PART UU
 
   Section  1.  Subdivision (e) of section 42 of the tax law, as added by
 section 1 of part RR of chapter 60 of the laws of 2016, is amended and a
 new subdivision (e-1) is added to read as follows:
   (e) For taxable years beginning on or after January first,  two  thou-
 sand  seventeen  and  before  January  first, two thousand eighteen, the
 amount of the credit allowed under this section shall be  equal  to  the
 product  of the total number of eligible farm employees and [two hundred
 fifty] FIVE HUNDRED dollars. For taxable years  beginning  on  or  after
 January first, two thousand eighteen and before January first, two thou-
 sand nineteen, the amount of the credit allowed under this section shall
 be  equal  to the product of the total number of eligible farm employees
 and [three] SIX hundred dollars. For taxable years beginning on or after
 January first, two thousand nineteen and before January first, two thou-
 sand twenty, the amount of the credit allowed under this  section  shall
 be  equal  to the product of the total number of eligible farm employees
 and [five] EIGHT hundred dollars. For  taxable  years  beginning  on  or
 after  January  first, two thousand twenty and before January first, two
 thousand twenty-one, the amount of the credit allowed under this section
 shall be equal to the product of  the  total  number  of  eligible  farm
 employees  and  [four  hundred]  ONE THOUSAND dollars. For taxable years
 beginning on or after January first, two thousand twenty-one and  before
 January first, two thousand twenty-two, the amount of the credit allowed
 under  this section shall be equal to the product of the total number of
 eligible farm employees and [six] ONE THOUSAND TWO hundred dollars.
   (E-1) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOU-
 SAND SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND EIGHTEEN, IF  SUCH
 FARM IS LOCATED IN NASSAU, SUFFOLK, OR WESTCHESTER COUNTY, THE AMOUNT OF
 THE  CREDIT  ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF
 THE TOTAL NUMBER OF ELIGIBLE FARM EMPLOYEES AND SIX HUNDRED DOLLARS. FOR
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN
 AND BEFORE JANUARY FIRST, TWO THOUSAND NINETEEN, IF SUCH FARM IS LOCATED

 S. 2009--B                         89
 
 IN NASSAU, SUFFOLK, OR WESTCHESTER COUNTY,  THE  AMOUNT  OF  THE  CREDIT
 ALLOWED  UNDER  THIS  SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL
 NUMBER OF ELIGIBLE FARM EMPLOYEES AND NINE HUNDRED DOLLARS. FOR  TAXABLE
 YEARS  BEGINNING  ON  OR  AFTER JANUARY FIRST, TWO THOUSAND NINETEEN AND
 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY, IF SUCH FARM  IS  LOCATED  IN
 NASSAU, SUFFOLK, OR WESTCHESTER COUNTY, THE AMOUNT OF THE CREDIT ALLOWED
 UNDER  THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF THE TOTAL NUMBER OF
 ELIGIBLE FARM EMPLOYEES AND ONE THOUSAND TWO HUNDRED DOLLARS. FOR  TAXA-
 BLE  YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY AND
 BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, IF SUCH FARM  IS  LOCATED
 IN  NASSAU,  SUFFOLK,  OR  WESTCHESTER  COUNTY, THE AMOUNT OF THE CREDIT
 ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT  OF  THE  TOTAL
 NUMBER OF ELIGIBLE FARM EMPLOYEES AND ONE THOUSAND FIVE HUNDRED DOLLARS.
 FOR  TAXABLE  YEARS  BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND
 TWENTY-ONE AND BEFORE JANUARY FIRST, TWO THOUSAND  TWENTY-TWO,  IF  SUCH
 FARM IS LOCATED IN NASSAU, SUFFOLK, OR WESTCHESTER COUNTY, THE AMOUNT OF
 THE  CREDIT  ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE PRODUCT OF
 THE TOTAL NUMBER OF  ELIGIBLE  FARM  EMPLOYEES  AND  ONE  THOUSAND  FIVE
 HUNDRED DOLLARS.
   § 2. This act shall take effect immediately.
 
                                  PART VV
 
   Section 1. Subdivision 1 of section 210-B of the tax law is amended by
 adding a new paragraph (d-1) to read as follows:
   (D-1)  NOTWITHSTANDING  ANY  OTHER  PROVISION OF THIS SUBDIVISION, FOR
 TAXABLE YEARS BEGINNING ON OR AFTER JANUARY  FIRST, TWO THOUSAND  SEVEN-
 TEEN,  IF THE CREDIT ALLOWED UNDER  THIS SUBDIVISION IS GREATER THAN THE
 TAX DUE IN ANY TAXABLE   YEAR FOR A TAXPAYER  WHOSE  PRIMARY  SOURCE  OF
 INCOME  IS    DERIVED FROM OPERATING A FARM OPERATION, SUCH TAXPAYER MAY
 ELECT TO TREAT THE AMOUNT BY WHICH SUCH CREDIT EXCEEDS SUCH  TAX DUE  AS
 AN  OVERPAYMENT OF TAX TO BE REFUNDED IN  ACCORDANCE WITH THE PROVISIONS
 OF SECTION ONE THOUSAND   EIGHTY-SIX OF THIS CHAPTER.  FOR  PURPOSES  OF
 THIS  PARAGRAPH,   THE TERM "FARM OPERATION" SHALL HAVE THE SAME MEANING
 AS  SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE  HUNDRED
 ONE OF THE AGRICULTURE AND MARKETS LAW.
   § 2. Subsection (a) of section 606 of the tax law is amended by adding
 a new paragraph 5-a to read as follows:
   (5-A) NOTWITHSTANDING ANY OTHER  PROVISION  OF  THIS  SUBSECTION,  FOR
 TAXABLE  YEARS  BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN-
 TEEN, IF THE CREDIT ALLOWED  UNDER THIS SUBSECTION IS GREATER  THAN  THE
 TAX  DUE  IN  ANY  TAXABLE  YEAR  FOR A TAXPAYER WHOSE PRIMARY SOURCE OF
 INCOME IS DERIVED FROM OPERATING A FARM  OPERATION,  SUCH  TAXPAYER  MAY
 ELECT  TO TREAT THE AMOUNT BY WHICH SUCH CREDIT  EXCEEDS SUCH TAX DUE AS
 AN OVERPAYMENT OF TAX TO BE  REFUNDED IN ACCORDANCE WITH THE  PROVISIONS
 OF SECTION SIX  HUNDRED EIGHTY-SIX OF THIS ARTICLE. FOR PURPOSES OF THIS
 PARAGRAPH,  THE  TERM  "FARM  OPERATION" SHALL HAVE THE SAME  MEANING AS
 SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN OF  SECTION THREE HUNDRED ONE
 OF THE AGRICULTURE AND MARKETS  LAW.
   § 3. This act shall take effect immediately, and shall  be  deemed  to
 have been in full force and effect on and after January 1, 2017.
 
                                  PART WW
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (n-2) to read as follows:

 S. 2009--B                         90

   (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
 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,

 S. 2009--B                         91
 
 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.
   (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 XX
 
   Section 1. Section 38 of the tax law, as added by section 1 of part EE
 of chapter 59 of the laws of 2013, is renumbered section 43 and subdivi-
 sions (b) and (c) are amended to read as follows:
   (b) An eligible employer is a corporation  (including  a  New  York  S
 corporation),  a  sole  proprietorship, a limited liability company or a
 partnership. An eligible employee is an individual who is  (i)  employed
 by  an  eligible employer in New York state, (ii) paid [at] A MAXIMUM OF
 $0.5 OVER the minimum wage rate as defined in article  nineteen  of  the
 labor  law  during  the  taxable  year  by  the eligible employer, (iii)
 between the ages of sixteen and nineteen during the period in  which  he
 or  she  is paid at such minimum wage rate by the eligible employer, and
 (iv) a student during the period in which he or  she  is  paid  at  such
 minimum wage rate by the taxpayer.

 S. 2009--B                         92
 
   (c)  For  taxable years beginning on or after January first, two thou-
 sand fourteen and before January first, two thousand fifteen, the amount
 of the credit allowed under this section shall be equal to  the  product
 of  the total number of hours worked during the taxable year by eligible
 employees  for  which they were paid at the minimum wage rate as defined
 in article nineteen of the labor law  and  [seventy  five]  SEVENTY-FIVE
 cents.  For taxable years beginning on or after January first, two thou-
 sand fifteen and before January first, two thousand sixteen, the  amount
 of  the  credit allowed under this section shall be equal to the product
 of the total number of hours during the taxable year worked by  eligible
 employees  for  which  they  were paid at such minimum wage rate and one
 dollar and thirty-one cents. For taxable years  beginning  on  or  after
 January  first, two thousand sixteen and before January first, two thou-
 sand [nineteen] TWENTY, the amount of  the  credit  allowed  under  this
 section  shall  be  equal  to  the  product of the total number of hours
 during the taxable year worked by eligible employees for which they were
 paid at [such] A MAXIMUM OF $0.5 OVER THE  minimum  wage  rate  and  one
 dollar  and thirty-five cents. Provided, however, if the federal minimum
 wage established by federal law pursuant to 29 U.S.C. section 206 or its
 successors is increased above eighty-five percent of the minimum wage in
 article nineteen of the labor law, the dollar amounts in  this  subdivi-
 sion  shall  be  reduced  to  the difference between the minimum wage in
 article nineteen of the labor law and the federal minimum  wage.    Such
 reduction  would  take effect on the date that employers are required to
 pay such federal minimum wage.
   § 2. This act shall take effect September 1, 2017.
 
                                  PART YY
 
   Section 1. Subdivision 3 of section 425 of the real property tax  law,
 as  added  by  section  1  of part B of chapter 389 of the laws of 1997,
 paragraph (a) as amended by chapter 264 of the laws of  2000,  paragraph
 (b-1)  as  added  by  section  1 of part FF of chapter 57 of the laws of
 2010, paragraph (d) as amended by chapter 564 of the laws of 2015, para-
 graph (e) as added by section 2 of part W of chapter 57 of the  laws  of
 2008, and paragraph (f) as added by section 1 of part B of chapter 59 of
 the laws of 2012, is amended to read as follows:
   3.   Eligibility  requirements.  (a)  Property  use.  To  qualify  for
 exemption pursuant to this section, the property must be a one,  two  or
 three  family  residence, a farm dwelling, SMALL BUSINESS or residential
 property held in condominium or cooperative form of  ownership.  If  the
 property is not an eligible type of property, but a portion of the prop-
 erty is partially used by the owner as a primary residence, that portion
 which  is  so  used  shall be entitled to the exemption provided by this
 section; provided that in  no  event  shall  the  exemption  exceed  the
 assessed value attributable to that portion.
   (b)  Primary  residence.  The property must serve as the primary resi-
 dence of one or more of the owners  thereof,  UNLESS  SUCH  PROPERTY  IS
 OWNED  BY  A SMALL BUSINESS AS DEFINED IN PARAGRAPH (G) OF THIS SUBDIVI-
 SION.
   (b-1) Income. For final assessment rolls to be used for  the  levy  of
 taxes  for  the  two thousand eleven-two thousand twelve school year and
 thereafter, the parcel's affiliated income may be no greater  than  five
 hundred  thousand dollars, as determined by the commissioner of taxation
 and finance pursuant to section one hundred  seventy-one-u  of  the  tax
 law,  in order to be eligible for the basic exemption authorized by this

 S. 2009--B                         93
 
 section. As used herein, the term "affiliated  income"  shall  mean  the
 combined income of all of the owners of the parcel who resided primarily
 thereon on the applicable taxable status date, and of any owners' spous-
 es  residing primarily thereon. For exemptions on final assessment rolls
 to be used for the levy of taxes for the two thousand  eleven-two  thou-
 sand  twelve  school  year,  affiliated income shall be determined based
 upon the parties' incomes for the income tax year ending in two thousand
 nine. In each subsequent school year, the  applicable  income  tax  year
 shall  be  advanced  by one year. The term "income" as used herein shall
 have the same meaning as in subdivision four of this section.
   (c) Trusts. If legal title to the property is  held  by  one  or  more
 trustees,  the  beneficial  owner  or  owners shall be deemed to own the
 property for purposes of this subdivision.
   (d) Farm dwellings not owned by the resident. (i) If  legal  title  to
 the farm dwelling is held by an S-corporation or by a C-corporation, the
 exemption  shall  be granted if the property serves as the primary resi-
 dence of a shareholder of such corporation.
   (ii) If the legal title to the farm dwelling is held by a partnership,
 the exemption shall be granted if the property  serves  as  the  primary
 residence of one or more of the partners.
   (iii)  If  the  legal  title to the farm dwelling is held by a limited
 liability company, the exemption shall be granted if the property serves
 as the primary residence of one or more of the owners.
   (iv) Any information deemed necessary to establish shareholder,  part-
 ner  or owner status for eligibility purposes shall be considered confi-
 dential and exempt from the freedom of information law.
   (e) Dwellings owned by limited partnerships. (i) If legal title  to  a
 dwelling is held by a limited partnership, the exemption shall be grant-
 ed if the property serves as the primary residence of one or more of the
 partners, provided that the limited partnership which holds title to the
 property  does  not  engage in any commercial activity, that the limited
 partnership was lawfully created to hold title solely for  estate  plan-
 ning and asset protection purposes, and that the partner or partners who
 primarily  reside  thereon personally pay all of the real property taxes
 and other costs associated with the property's ownership.
   (ii) Any information deemed necessary to establish partner status  for
 eligibility  purposes  shall  be considered confidential and exempt from
 the freedom of information law.
   (f) Compliance with state tax obligations. The property's  eligibility
 for  the  STAR  exemption  must not be suspended pursuant to section one
 hundred seventy-one-y of the tax law  due  to  the  past-due  state  tax
 liabilities  of one or more of its owners. Notwithstanding any provision
 of law to the contrary,  where  a  property's  eligibility  for  a  STAR
 exemption  has  been  suspended  pursuant to such section, the following
 provisions shall be applicable:
   (i) The property shall be ineligible for  a  basic  or  enhanced  STAR
 exemption effective with the next school year commencing after the issu-
 ance  of  notice  by the department of the suspension of its eligibility
 for the STAR exemption, even if the notice was issued after the applica-
 ble taxable status date. If a STAR exemption has been granted to such  a
 property  on a tentative or final assessment roll, the assessor or other
 person having custody of that roll is hereby authorized and directed  to
 immediately remove that STAR exemption from the roll.
   (ii) Any challenge to the factual or legal basis behind the suspension
 of a property's eligibility for a STAR exemption pursuant to section one
 hundred seventy-one-y of the tax law must be presented to the department

 S. 2009--B                         94
 
 in  the  manner  prescribed  by  such section. Neither an assessor nor a
 board of assessment review has the authority to consider  such  a  chal-
 lenge.
   (iii)  The  property  shall  remain  ineligible for the STAR exemption
 until the department notifies the assessor that the  suspension  of  its
 eligibility has been lifted. Once the assessor has been so notified, the
 exemption  may be resumed on a prospective basis only, provided that the
 eligibility requirements of this section are otherwise satisfied.
   (iv) In the case of a cooperative apartment or mobile home receiving a
 STAR exemption pursuant to paragraph (k) or (l) of  subdivision  two  of
 this section, a suspension of a STAR exemption due to a taxpayer's past-
 due  state tax liabilities shall only apply to the STAR exemption on the
 cooperative apartment or mobile home owned, or deemed to  be  owned,  by
 that taxpayer.
   (G)  SMALL  BUSINESSES.  (I) FOR THE PURPOSES OF THIS SUBDIVISION, THE
 TERM "SMALL BUSINESS" SHALL MEAN A SOLE PROPRIETOR, A LIMITED  LIABILITY
 COMPANY, PARTNERSHIP, OR NEW YORK S-CORPORATION, THAT DURING THE TAXABLE
 YEAR  EMPLOYS  TWENTY  PERSONS  OR  LESS AND HAS A GROSS BUSINESS INCOME
 AND/OR FARM INCOME OF LESS THAN THREE  HUNDRED  FIFTY  THOUSAND  DOLLARS
 ATTRIBUTABLE  TO  THE BUSINESS OR A NEW YORK CORPORATION THAT DURING THE
 TAXABLE YEAR EMPLOYS TWENTY PERSONS OR LESS AND HAS  A  BUSINESS  INCOME
 BASE OF FIVE HUNDRED THOUSAND DOLLARS OR LESS.
   (II)  FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS
 INCOME SHALL MEAN: (A) IN THE CASE OF A LIMITED LIABILITY COMPANY  OR  A
 PARTNERSHIP, NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B)
 OF  PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED FIFTY-EIGHT
 OF THE TAX LAW; AND (B) IN THE CASE OF A  NEW  YORK  S-CORPORATION,  NEW
 YORK RECEIPTS INCLUDED IN THE APPORTIONMENT DETERMINED UNDER SECTION TWO
 HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXABLE YEAR.
   (III)  FOR  PURPOSES  OF THIS PARAGRAPH, THE TERM BUSINESS INCOME BASE
 SHALL MEAN IN THE CASE OF A NEW YORK  CORPORATION,  BUSINESS  INCOME  AS
 DEFINED  IN  SUBDIVISION  EIGHT  OF SECTION TWO HUNDRED EIGHT OF THE TAX
 LAW.
   § 2. Clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2
 of section 425 of the real property tax law, as added by  section  1  of
 part  D-1  of  chapter  57  of  the  laws of 2007, is amended to read as
 follows:
   (B) The base figure for the basic STAR exemption shall be thirty thou-
 sand dollars. IN THE CASE OF A SMALL BUSINESS AS  DEFINED  IN  PARAGRAPH
 (G)  OF SUBDIVISION THREE OF THIS SECTION, THE BASE FIGURE FOR THE BASIC
 STAR EXEMPTION SHALL BE: (I) TEN THOUSAND DOLLARS IN  THE  TWO  THOUSAND
 EIGHTEEN--TWO  THOUSAND  NINETEEN  SCHOOL  YEAR;  (II)  TWENTY  THOUSAND
 DOLLARS IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR;
 AND  (III) THIRTY THOUSAND DOLLARS IN THE TWO THOUSAND TWENTY--TWO THOU-
 SAND TWENTY-ONE SCHOOL YEAR AND THEREAFTER.
   § 3. This act shall take effect immediately and  shall  apply  to  all
 taxable years beginning on and after January 1, 2018.
 
                                  PART ZZ
 
   Section  1.  Section  208  of  the  tax law is amended by adding a new
 subdivision 13 to read as follows:
   13. THE TERM "FULFILLMENT SERVICES" SHALL MEAN ANY  OF  THE  FOLLOWING
 SERVICES  PERFORMED BY AN ENTITY ON ITS PREMISES ON BEHALF OF A PURCHAS-
 ER:

 S. 2009--B                         95
 
   (A) THE ACCEPTANCE OF ORDERS ELECTRONICALLY  OR  BY  MAIL,  TELEPHONE,
 TELEFAX OR INTERNET;
   (B) RESPONSES TO CONSUMER CORRESPONDENCE OR INQUIRES ELECTRONICALLY OR
 BY MAIL, TELEPHONE, TELEFAX OR INTERNET;
   (C) BILLING AND COLLECTION ACTIVITIES; OR
   (D)  THE  SHIPMENT OF ORDERS FROM AN INVENTORY OF PRODUCTS OFFERED FOR
 SALE BY THE PURCHASER.
   § 2. Subdivision 2 of section 209  of  the  tax  law,  as  amended  by
 section  5  of  part  A of chapter 59 of the laws of 2014, is amended to
 read as follows:
   2. A foreign corporation shall not be deemed  to  be  doing  business,
 employing  capital, owning or leasing property, or maintaining an office
 in this state, or deriving receipts from activity in this state, for the
 purposes of this article, by reason  of  (a)  the  maintenance  of  cash
 balances  with banks or trust companies in this state, or (b) the owner-
 ship of shares of stock or securities kept in this state, if kept  in  a
 safe  deposit  box,  safe,  vault  or  other  receptacle  rented for the
 purpose, or if pledged as collateral security, or if deposited with  one
 or more banks or trust companies, or brokers who are members of a recog-
 nized  security exchange, in safekeeping or custody accounts, or (c) the
 taking of any action by any such bank or trust company or broker,  which
 is  incidental  to  the rendering of safekeeping or custodian service to
 such corporation, or (d) the maintenance of an office in this  state  by
 one or more officers or directors of the corporation who are not employ-
 ees  of  the corporation if the corporation otherwise is not doing busi-
 ness in this state, and does not employ capital or own or lease property
 in this state, or (e) the keeping of books or records of  a  corporation
 in this state if such books or records are not kept by employees of such
 corporation  and such corporation does not otherwise do business, employ
 capital, own or lease property or maintain an office in this  state,  or
 (f)  THE  USE  OF  FULFILLMENT  SERVICES,  PROVIDED  RECEIPTS, INCLUDING
 RECEIPTS PURSUANT TO SUCH SERVICES, DO NOT EXCEED THE THRESHOLD  SET  BY
 PARAGRAPH (B) OF SUBDIVISION ONE OF THIS SECTION, OF A PERSON OTHER THAN
 AN  AFFILIATED  PERSON AND THE OWNERSHIP OF PROPERTY STORED ON THE PREM-
 ISES OF SUCH PERSON IN CONJUNCTION WITH SUCH SERVICES, OR (G) any combi-
 nation of the foregoing activities. FOR PURPOSES  OF  THIS  SUBDIVISION,
 PERSONS  ARE  AFFILIATED PERSONS WITH RESPECT TO EACH OTHER WHERE ONE OF
 SUCH PERSONS HAS AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETH-
 ER DIRECT OR INDIRECT, IN THE OTHER, OR WHERE AN OWNERSHIP  INTEREST  OF
 MORE  THAN  FIVE  PERCENT,  WHETHER DIRECT OR INDIRECT, IN THE OTHER, OR
 WHERE AN OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR
 INDIRECT, IS HELD IN EACH OF SUCH PERSONS BY  ANOTHER  PERSON  OR  BY  A
 GROUP OF OTHER PERSONS WHICH ARE AFFILIATED PERSONS WITH RESPECT TO EACH
 OTHER.  THE TERM "PERSON" IN THE PRECEDING SENTENCE AND IN PARAGRAPH (F)
 OF THIS SUBDIVISION SHALL HAVE THE MEANING ASCRIBED THERETO BY  SUBDIVI-
 SION (A) OF SECTION ELEVEN HUNDRED ONE OF THIS CHAPTER.
   §  3.  This  act  shall take effect January 1, 2018 and shall apply to
 taxable years commencing on or after such date.
 
                                 PART AAA
 
   Section 1. The opening paragraph of paragraph (a) of subdivision 5  of
 section 210-A of the tax law, as amended by section 4 of part P of chap-
 ter 60 of the laws of 2016, is amended to read as follows:
   A  financial instrument is a "nonqualified financial instrument" if it
 is not a qualified financial instrument. A qualified  financial  instru-

 S. 2009--B                         96
 
 ment  means a financial instrument that is of a type described in any of
 clauses (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of  this
 paragraph  and that has been marked to market in the taxable year by the
 taxpayer under section 475 or section 1256 of the internal revenue code.
 Further,  if  the  taxpayer  has  in the taxable year marked to market a
 financial instrument of the type described in any of  the  clauses  (A),
 (B),  (C),  (D),  (G), (H) or (I) of subparagraph two of this paragraph,
 then any financial instrument within that type described  in  the  above
 specified  clause  or  clauses that has not been marked to market by the
 taxpayer under section 475 or section 1256 of the internal revenue  code
 is a qualified financial instrument in the taxable year. Notwithstanding
 the  two  preceding sentences, (i) a loan secured by real property shall
 not be a qualified financial instrument, (ii) if the only loans that are
 marked to market by the taxpayer under section 475 or  section  1256  of
 the  internal  revenue  code are loans secured by real property, then no
 loans shall be qualified financial  instruments,  (iii)  stock  that  is
 investment  capital  as  defined in paragraph (a) of subdivision five of
 section two hundred eight of this  article  shall  not  be  a  qualified
 financial  instrument, and (iv) stock that generates other exempt income
 as defined in subdivision six-a of section two  hundred  eight  of  this
 article  and  that  is not marked to market under section 475 or section
 1256 of the internal revenue  code  shall  not  constitute  a  qualified
 financial  instrument with respect to the income from that stock that is
 described in such subdivision six-a. If a corporation is included  in  a
 combined  report, the definition of qualified financial instrument shall
 be determined on a combined basis. IN THE CASE OF A RIC OR A  REIT  THAT
 IS NOT A CAPTIVE RIC OR A CAPTIVE REIT, A QUALIFIED FINANCIAL INSTRUMENT
 MEANS  A  FINANCIAL  INSTRUMENT  THAT  IS  OF A TYPE DESCRIBED IN ANY OF
 CLAUSES (A), (B), (C), (D), (G), (H) OR (I) OF SUBPARAGRAPH TWO OF  THIS
 PARAGRAPH,  OTHER  THAN  (I) A LOAN SECURED BY REAL PROPERTY, (II) STOCK
 THAT IS INVESTMENT CAPITAL AS DEFINED IN PARAGRAPH  (A)  OF  SUBDIVISION
 FIVE  OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE, AND (III) STOCK THAT
 GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION
 TWO HUNDRED EIGHT OF THIS ARTICLE WITH RESPECT TO THE INCOME  FROM  THAT
 STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A.
   § 2. Clause (D) of subparagraph 1 of paragraph (d) of subdivision 1 of
 section  210 of the tax law, as amended by section 19 of part T of chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
 [and], (C) AND (D-1) of this subparagraph, the amount prescribed by this
 paragraph will be determined in accordance with the following table:
 
 If New York receipts are:                The fixed dollar minimum tax is:
  not more than $100,000                               $   25
  more than $100,000 but not over $250,000             $   75
  more than $250,000 but not over $500,000             $  175
  more than $500,000 but not over $1,000,000           $  500
  more than $1,000,000 but not over $5,000,000         $1,500
  more than $5,000,000 but not over $25,000,000        $3,500
  more than $25,000,000 but not over $50,000,000       $5,000
  more than $50,000,000 but not over $100,000,000      $10,000
  more than $100,000,000 but not over $250,000,000     $20,000
  more than $250,000,000 but not over $500,000,000     $50,000
  more than $500,000,000 but not over $1,000,000,000   $100,000
  Over $1,000,000,000                                  $200,000

 S. 2009--B                         97
 
   § 3. Subparagraph 1 of paragraph (d) of subdivision 1 of  section  210
 of  the  tax  law  is  amended  by  adding a new clause (D-1) to read as
 follows:
   (D-1)  IN  THE  CASE  OF A REIT OR A RIC THAT IS NOT A CAPTIVE REIT OR
 CAPTIVE RIC, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE  DETERMINED
 IN ACCORDANCE WITH THE FOLLOWING TABLE:
 
 IF NEW YORK RECEIPTS ARE:                THE FIXED DOLLAR MINIMUM TAX IS:
  NOT MORE THAN $100,000                               $   25
  MORE THAN $100,000 BUT NOT OVER $250,000             $   75
  MORE THAN $250,000 BUT NOT OVER $500,000             $  175
  MORE THAN $500,000                                   $  500
 
   §  4.  The  opening  paragraph  of  paragraph  (a) of subdivision 5 of
 section 11-654.2 of the administrative code of the city of New York,  as
 amended  by  section  16 of part P of chapter 60 of the laws of 2016, is
 amended to read as follows:
   A financial instrument is a "nonqualified financial instrument" if  it
 is  not  a qualified financial instrument. A qualified financial instru-
 ment means a financial instrument that is of a type described in any  of
 [clause]  CLAUSES  (i),  (ii),  (iii),  (iv),  (vii),  (viii) or (ix) of
 subparagraph two of this paragraph and that has been marked to market in
 the taxable year by the taxpayer under section 475 or  section  1256  of
 the  internal  revenue code. Further, if the taxpayer has in the taxable
 year marked to market a financial instrument of the  type  described  in
 any of [clause] CLAUSES (i), (ii), (iii), (iv), (vii), (viii) or (ix) of
 subparagraph two of this paragraph, then any financial instrument within
 that  type  described  in the above specified clause or clauses that has
 not been marked to market by the taxpayer under section 475  or  section
 1256 of the internal revenue code is a qualified financial instrument in
 the  taxable  year.  Notwithstanding  the two preceding sentences, (i) a
 loan secured by real property shall not be a qualified financial instru-
 ment, (ii) if the only loans that are marked to market by  the  taxpayer
 under section 475 or section 1256 of the internal revenue code are loans
 secured  by  real  property,  then no loans shall be qualified financial
 instruments, (iii) stock that is investment capital as defined in  para-
 graph (a) of subdivision four of section 11-652 of this subchapter shall
 not  be  a qualified financial instrument, and (iv) stock that generates
 other exempt income as defined in subdivision five-a of  section  11-652
 of this subchapter and that is not marked to market under section 475 or
 section  1256 of the internal revenue code shall not constitute a quali-
 fied financial instrument with respect to the  income  from  that  stock
 that  is  described  in  such  subdivision  five-a.  If a corporation is
 included in a combined report, the  definition  of  qualified  financial
 instrument  shall  be  determined on a combined basis.  IN THE CASE OF A
 RIC OR A REIT THAT IS NOT A CAPTIVE RIC OR A CAPTIVE REIT,  A  QUALIFIED
 FINANCIAL  INSTRUMENT  MEANS  A  FINANCIAL  INSTRUMENT THAT IS OF A TYPE
 DESCRIBED IN ANY OF CLAUSES (I), (II), (III),  (IV),  (VII),  (VIII)  OR
 (IX)  OF  SUBPARAGRAPH  TWO  OF  THIS  PARAGRAPH,  OTHER THAN (I) A LOAN
 SECURED BY REAL PROPERTY, (II)  STOCK  THAT  IS  INVESTMENT  CAPITAL  AS
 DEFINED  IN  PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION 11-652 OF THIS
 SUBCHAPTER, AND (III)  STOCK  THAT  GENERATES  OTHER  EXEMPT  INCOME  AS
 DEFINED  IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER WITH
 RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVI-
 SION FIVE-A.

 S. 2009--B                         98
 
   § 5. Clause (iv) of subparagraph 1 of paragraph (e) of  subdivision  1
 of section 11-654 of the administrative code of the city of New York, as
 added  by  section  1  of  part  D of chapter 60 of the laws of 2015, is
 amended to read as follows:
   (iv) If New York city receipts are:                  Fixed dollar minimum
                                                        tax is:
 Not more than $100,000                                 $25
 More than $100,000 but not over $250,000               $75
 More than $250,000 but not over $500,000               $175
 More than $500,000 but not over $1,000,000             $500
 More than $1,000,000 but not over $5,000,000           $1,500
 More than $5,000,000 but not over $25,000,000          $3,500
 More than $25,000,000 but not over $50,000,000         $5,000
 More than $50,000,000 but not over $100,000,000        $10,000
 More than $100,000,000 but not over $250,000,000       $20,000
 More than $250,000,000 but not over $500,000,000       $50,000
 More than $500,000,000 but not over $1,000,000,000     $100,000
 Over $1,000,000,000                                    $200,000
   For  purposes  of this clause, New York city receipts are the receipts
 computed in accordance with section 11-654.2 of this subchapter for  the
 taxable year. If the taxable year is less than twelve months, the amount
 prescribed by this clause shall be reduced by twenty-five percent if the
 period  for which the taxpayer is subject to tax is more than six months
 but not more than nine months and by fifty percent  if  the  period  for
 which the taxpayer is subject to tax is not more than six months. If the
 taxable  year  is  less  than twelve months, the amount of New York city
 receipts for purposes of this  clause  is  determined  by  dividing  the
 amount  of  the receipts for the taxable year by the number of months in
 the taxable year and multiplying the result by twelve.
 PROVIDED HOWEVER, IN THE CASE OF A REIT OR RIC THAT  IS  NOT  A  CAPTIVE
 REIT OR A CAPTIVE RIC, THE FOLLOWING SCHEDULE SHALL APPLY:
 
 IF NEW YORK CITY RECEIPTS ARE:                         FIXED DOLLAR MINIMUM
                                                        TAX IS:
 NOT MORE THAN $100,000                                 $25
 MORE THAN $100,000 BUT NOT OVER $250,000               $75
 MORE THAN $250,000 BUT NOT OVER $500,000               $175
 MORE THAN $500,000                                     $500
   §  6.  This  act  shall take effect immediately; provided however that
 sections one, two and three of this act shall be deemed to have been  in
 full  force and effect on the same date and in the same manner as part A
 of chapter 59 of the laws of 2014, took  effect;  and  provided  further
 that  sections four and five of this act shall be deemed to have been in
 full force and effect on the same date and in the same manner as part  D
 of chapter 60 of the laws of 2015, took effect.
 
                                 PART BBB
 
   Section  1.  Paragraph  (a) of subdivision 7 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:
   (a)  The  term "business capital" means all assets, other than invest-
 ment capital and stock issued by  the  taxpayer,  less  liabilities  not
 deducted  from  investment  capital. Business capital shall include only
 those assets the income, loss or expense of which are properly reflected
 (or would have been properly  reflected  if  not  fully  depreciated  or

 S. 2009--B                         99
 
 expensed or depreciated or expensed to a nominal amount) in the computa-
 tion  of entire net income for the taxable year, EXCEPT BUSINESS CAPITAL
 SHALL NOT INCLUDE THOSE ASSETS THE DIVIDENDS FROM WHICH  ARE,  OR  WOULD
 BE, "EXEMPT UNITARY CORPORATION DIVIDENDS" UNDER PARAGRAPH (C) OF SUBDI-
 VISION  SIX-A  OF  THIS  SECTION  (SUCH AS STOCK IN CORPORATIONS TAXABLE
 UNDER  THE  FRANCHISE  TAX  IMPOSED  BY  ARTICLE  THIRTY-THREE  OF  THIS
 CHAPTER).
   § 2. This act shall take effect immediately.
 
                                 PART CCC
 
   Section  1.  Paragraph 2 of subdivision (f) of section 1137 of the tax
 law, as amended by section 1 of part H of chapter  62  of  the  laws  of
 2006, is amended to read as follows:
   (2)  The  amount  of  the  credit  authorized by paragraph one of this
 subdivision shall be five percent of the amount of taxes and  fees  (but
 not  including  any penalty or interest thereon) required to be reported
 on, and paid or paid over with, the return but only  if  the  return  is
 filed  on  or  before  the filing due date, but not more than [two] FOUR
 hundred dollars, for each quarterly or longer period, except that,  with
 respect  to returns required to be filed for quarterly or longer periods
 ending on or before the last day of February, two  thousand  seven,  the
 amount  of  the  credit  shall be not more than one hundred seventy-five
 dollars for each such quarterly or longer period.
   § 2. This act shall take effect immediately and shall apply to returns
 filed for the quarter beginning March 1, 2018 and thereafter.
 
                                 PART DDD
 
   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

 S. 2009--B                         100
 
 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
 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

 S. 2009--B                         101
 
 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).
   (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,

 S. 2009--B                         102
 
 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.
   (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

 S. 2009--B                         103
 
 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
 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:

 S. 2009--B                         104
 
   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.
   § 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:

 S. 2009--B                         105
 
   (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
   (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:

 S. 2009--B                         106
 
   § 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
 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-

 S. 2009--B                         107
 
 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.
 
                                 PART EEE
 
   Section 1. Article 2-A of the public housing law, as added by  section
 1 of part CC of chapter 63 of the laws of 2000, subdivision 4 of section
 22  as amended by section 1 of part H of chapter 60 of the laws of 2016,
 is amended to read as follows:
                                ARTICLE 2-A
                NEW YORK STATE LOW INCOME AND MIDDLE INCOME
                        HOUSING TAX CREDIT PROGRAM
 Section 21. Definitions.
         22. Allowance of credit, amount and limitations.
         23. Project monitoring.
         24. Credit recapture.
         25. Regulations, coordination with  federal  low-income  housing
               credit provisions.
   §  21.  Definitions.  1.  (a)  "Applicable  percentage" means, FOR THE
 PURPOSES OF AN ELIGIBLE LOW-INCOME BUILDING, the appropriate  percentage
 (depending  on  whether a building is new, existing, or federally subsi-
 dized) prescribed by the secretary  of  the  treasury  for  purposes  of
 section  42  of  the  internal  revenue code AND, FOR THE PURPOSES OF AN
 ELIGIBLE MIDDLE-INCOME BUILDING, THIRTY PERCENT OF THE  QUALIFIED  BASIS
 OF  THE  BUILDING  AS  DETERMINED PURSUANT TO SECTION 42 OF THE INTERNAL
 REVENUE CODE, for the month which is the earlier of:
   (i) the month in which the eligible low-income building OR THE  ELIGI-
 BLE MIDDLE-INCOME BUILDING is placed in service, or
   (ii) at the election of the taxpayer,
   (A) the month in which the taxpayer and the commissioner enter into an
 agreement with respect to such building (which is binding on the commis-
 sioner,  the taxpayer, and all successors in interest) as to the housing
 credit dollar amount to be allocated to such building, or
   (B) in the case of any building to which subsection (h)(4)(B) of  such
 section  42  applies,  the month in which the tax-exempt obligations are
 issued.
   (b) A month may be elected under subparagraph (ii) of paragraph (a) of
 this subdivision only if the election is made not later than  the  fifth
 day  after  the  close of such month. Such election, once made, shall be
 irrevocable.
   (c) If, as of the close of any taxable year in the credit period,  the
 qualified  basis  of  an  eligible  low-income  building  OR AN ELIGIBLE
 MIDDLE-INCOME BUILDING exceeds such basis as of the close of  the  first
 year  of  the credit period, the applicable percentage which shall apply

 S. 2009--B                         108
 
 to  such  excess  shall  be  two-thirds  of  the  applicable  percentage
 originally ascribed to such building.
   2. "Compliance period" means, with respect to any building, the period
 of  fifteen  taxable  years beginning with the first taxable year of the
 credit period with respect to such building.
   3. "Credit period" means, with  respect  to  any  eligible  low-income
 building  OR  ELIGIBLE MIDDLE-INCOME BUILDING, the period of ten taxable
 years beginning with
   (a) the taxable year in which the building is placed in service, or
   (b) at the election of the taxpayer, the succeeding taxable year,
 but only if the building is an eligible low-income building  as  of  the
 close  of  the  first year of such period. The election under THIS para-
 graph [(b) of this subdivision], once made, shall be irrevocable.
   4. "Eligibility statement" means a statement issued by the commission-
 er certifying that a building is an eligible low-income building  OR  AN
 ELIGIBLE  MIDDLE-INCOME  BUILDING.  Such  statement  shall set forth the
 taxable year in which such building is placed  in  service,  the  dollar
 amount  of  low-income  housing  credit  OR MIDDLE-INCOME HOUSING CREDIT
 allocated by the commissioner to such building as provided  in  subdivi-
 sion five of section twenty-two of this article, the applicable percent-
 age and maximum qualified basis with respect to such building taken into
 account  in  determining  such  dollar amount, sufficient information to
 identify each such building and the taxpayer or taxpayers  with  respect
 to  each  such building, and such other information as the commissioner,
 in consultation with the commissioner of  taxation  and  finance,  shall
 prescribe.  Such  statement shall be first issued following the close of
 the first taxable year in the credit  period,  and  thereafter,  to  the
 extent  required  by the commissioner of taxation and finance, following
 the close of each taxable year of the compliance period.
   5. "Eligible low-income building" means a  building  located  in  this
 state which either
   (a)  is a qualified low-income building as defined in section 42(c) of
 the internal revenue code, or
   (b) would be a qualified low-income building under such section if the
 20-50 test specified in subsection (g)(1) of such  section  were  disre-
 garded  and  the 40-60 test specified in such subsection (requiring that
 at least forty percent of residential units be both rent-restricted  and
 occupied  by  individuals  whose income is sixty percent or less of area
 median gross income) were a 40-90 test.
   5-A. "ELIGIBLE MIDDLE-INCOME BUILDING" MEANS  A  BUILDING  LOCATED  IN
 THIS  STATE  WHICH IS COMPOSED OF MULTIPLE RESIDENTIAL UNITS WHICH WILL,
 UPON COMPLETION, BE AFFORDABLE BY ELIGIBLE MIDDLE-INCOME HOUSEHOLDS.
   5-B. "ELIGIBLE MIDDLE-INCOME HOUSEHOLD" MEANS (A) IN CITIES  HAVING  A
 POPULATION  OF  ONE  MILLION  OR  MORE, A PERSON OR FAMILY RESIDING IN A
 RESIDENTIAL UNIT WHOSE INCOME DOES NOT EXCEED ONE HUNDRED THIRTY PERCENT
 OF THE MEDIAN INCOME FOR THE METROPOLITAN STATISTICAL AREA IN  WHICH  AN
 ELIGIBLE MIDDLE-INCOME BUILDING IS LOCATED; OR (B) IN ANY PORTION OF THE
 STATE  OUTSIDE  OF A CITY HAVING A POPULATION OF ONE MILLION OR MORE AND
 (I) WITHIN A METROPOLITAN STATISTICAL AREA, A PERSON OR FAMILY  RESIDING
 IN  A  RESIDENTIAL  UNIT WHOSE INCOME DOES NOT EXCEED ONE HUNDRED THIRTY
 PERCENT OF THE MEDIAN INCOME FOR THE METROPOLITAN  STATISTICAL  AREA  IN
 WHICH  AN  ELIGIBLE  MIDDLE-INCOME  BUILDING  IS LOCATED, OR ONE HUNDRED
 THIRTY PERCENT OF THE STATEWIDE MEDIAN INCOME, WHICHEVER SHALL BE  LESS,
 OR  (II)  OUTSIDE  OF  METROPOLITAN STATISTICAL AREA, A PERSON OR FAMILY
 RESIDING IN A RESIDENTIAL UNIT WHOSE INCOME DOES NOT EXCEED ONE  HUNDRED
 THIRTY  PERCENT OF THE MEDIAN INCOME FOR THE COUNTY IN WHICH AN ELIGIBLE

 S. 2009--B                         109
 
 MIDDLE-INCOME BUILDING IS LOCATED, OR ONE HUNDRED THIRTY PERCENT OF  THE
 STATEWIDE MEDIAN INCOME, WHICHEVER SHALL BE LESS.
   6. "Qualified basis" of an eligible low-income building OR AN ELIGIBLE
 MIDDLE-INCOME BUILDING means the qualified basis of such building deter-
 mined  under  section  42(c)  of  the  internal revenue code, or, FOR AN
 ELIGIBLE LOW-INCOME BUILDING,  which  would  be  determined  under  such
 section if the 40-90 test specified in paragraph (b) of subdivision five
 of  this  section  applied  under  such  section 42 to determine if such
 building were part of a qualified low-income housing project.
   7. References in this article to section 42 of  the  internal  revenue
 code shall mean such section as amended from time to time.
   §  22.  Allowance  of  credit,  amount  and limitations. 1. A taxpayer
 subject to tax under article nine-A, twenty-two, [thirty-two]  or  thir-
 ty-three  of  the tax law which owns an interest in one or more eligible
 low-income  buildings  OR  ELIGIBLE  MIDDLE-INCOME  BUILDINGS  shall  be
 allowed  a  credit against such tax for the amount of low-income housing
 credit OR FOR THE AMOUNT OF THE MIDDLE-INCOME  HOUSING  CREDIT,  AS  THE
 CASE MAY BE, allocated by the commissioner to each such building. Except
 as  provided  in  subdivision  two of this section, the credit amount so
 allocated shall be allowed as a credit against the tax for the ten taxa-
 ble years in the credit period.
   2. Adjustment of first-year credit allowed in eleventh year. The cred-
 it allowable for the first  taxable  year  of  the  credit  period  with
 respect  to  any  building  shall be adjusted using the rules of section
 42(f)(2) of the internal revenue code (relating to first-year adjustment
 of qualified basis by the weighted average of low-income to total  resi-
 dential  units,  OR  BY  THE  WEIGHTED AVERAGE OF MIDDLE-INCOME TO TOTAL
 RESIDENTIAL UNITS, AS THE CASE MAY BE), and any reduction in  first-year
 credit  by  reason  of  such adjustment shall be allowable for the first
 taxable year following the credit period.
   3. Amount of credit. Except as provided in subdivisions four and  five
 of  this section, the amount of low-income housing credit AND MIDDLE-IN-
 COME HOUSING CREDIT shall be the applicable percentage of the  qualified
 basis  of  each eligible low-income building OR OF EACH ELIGIBLE MIDDLE-
 INCOME BUILDING.
   4. Statewide limitation. The aggregate dollar amount of  credit  which
 the  commissioner  may  allocate  to eligible low-income buildings under
 this article shall be seventy-two million dollars.  THE AGGREGATE DOLLAR
 AMOUNT OF  CREDIT  WHICH  THE  COMMISSIONER  MAY  ALLOCATE  TO  ELIGIBLE
 MIDDLE-INCOME  BUILDINGS UNDER THIS ARTICLE SHALL BE TWENTY-FIVE MILLION
 DOLLARS. The limitation provided by this  subdivision  applies  only  to
 allocation of the aggregate dollar amount of credit by the commissioner,
 and does not apply to allowance to a taxpayer of the credit with respect
 to an eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING
 for each year of the credit period.
   5.  Building  limitation. The dollar amount of credit allocated to any
 building shall not exceed the  amount  the  commissioner  determines  is
 necessary for the financial feasibility of the project and the viability
 of  the  building  as  an eligible low-income building OR AS AN ELIGIBLE
 MIDDLE-INCOME BUILDING throughout the credit  period.  In  allocating  a
 dollar  amount of credit to any building, the commissioner shall specify
 the applicable percentage and the maximum qualified basis which  may  be
 taken into account under this article with respect to such building. The
 applicable  percentage and the maximum qualified basis with respect to a
 building shall not exceed the amounts determined in subdivisions one and
 six, respectively, of section twenty-one of this article.

 S. 2009--B                         110

   6.  Long-term  commitment  to  low-income  OR  MIDDLE-INCOME   housing
 required. (A) No credit shall be allowed under this article with respect
 to  [a]  AN  ELIGIBLE LOW-INCOME building for the taxable year unless an
 extended low-income housing commitment is in effect as  of  the  end  of
 such  taxable  year.  For  purposes of this [subdivision] PARAGRAPH, the
 term "extended low-income housing commitment" means an agreement between
 the taxpayer and the commissioner substantially similar to the agreement
 specified in section 42(h)(6)(B) of the internal revenue code.
   (B) NO CREDIT SHALL BE ALLOWED UNDER THIS ARTICLE WITH RESPECT  TO  AN
 ELIGIBLE  MIDDLE-INCOME BUILDING FOR THE TAXABLE YEAR UNLESS AN EXTENDED
 MIDDLE-INCOME HOUSING COMMITMENT IS IN EFFECT AS  OF  THE  END  OF  SUCH
 TAXABLE  YEAR.  FOR  THE  PURPOSES OF THIS PARAGRAPH, THE TERM "EXTENDED
 MIDDLE-INCOME HOUSING COMMITMENT" MEANS AN AGREEMENT BETWEEN THE TAXPAY-
 ER AND THE COMMISSIONER WHICH HAS BEEN DETERMINED BY THE COMMISSIONER TO
 BE SIMILAR TO THE AGREEMENT SPECIFIED  IN  SECTION  42(H)(6)(B)  OF  THE
 INTERNAL REVENUE CODE.
   7. Credit to successor owner. If a credit is allowed under subdivision
 one  of  this section with respect to an eligible low-income building OR
 AN ELIGIBLE MIDDLE-INCOME BUILDING, and such building  (or  an  interest
 therein)  is  sold  during  the credit period, the credit for the period
 after the sale which would have been allowable  under  such  subdivision
 one to the prior owner had the building not been sold shall be allowable
 to the new owner. Credit for the year of sale shall be allocated between
 the parties on the basis of the number of days during such year that the
 building or interest was held by each.
   § 23. Project monitoring. The commissioner shall establish such proce-
 dures  as  he  OR  SHE  deems  necessary for monitoring compliance of an
 eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING  with
 the  provisions  of  this article, and for notifying the commissioner of
 taxation and finance of any  such  noncompliance  of  which  he  OR  SHE
 becomes aware.
   § 24. Credit recapture. If, as of the close of any taxable year in the
 compliance  period,  the  amount  of the qualified basis of any building
 with respect to the taxpayer is less than the amount of such basis as of
 the close of the preceding taxable year, the credit under  this  article
 may  be  recaptured as provided in section eighteen OR EIGHTEEN-A of the
 tax law.
   § 25. Regulations, coordination with federal low-income housing credit
 provisions. 1. The commissioner shall promulgate rules  and  regulations
 necessary to administer the provisions of this act.
   2.  The  provisions  of  section 42 of the internal revenue code shall
 apply to the credit under this article, provided however, to the  extent
 such  provisions  are  inconsistent with this article, the provisions of
 this article shall control.
   § 2. Subdivision 4 of section 22 of the public housing law, as amended
 by section 2 of part H of chapter 60 of the laws of 2016, is amended  to
 read as follows:
   4.  Statewide  limitation. The aggregate dollar amount of credit which
 the commissioner may allocate to  eligible  low-income  buildings  under
 this  article  shall  be  eighty million dollars.   THE AGGREGATE DOLLAR
 AMOUNT OF  CREDIT  WHICH  THE  COMMISSIONER  MAY  ALLOCATE  TO  ELIGIBLE
 MIDDLE-INCOME  BUILDINGS UNDER THIS ARTICLE SHALL BE TWENTY-FIVE MILLION
 DOLLARS. The limitation provided by this  subdivision  applies  only  to
 allocation of the aggregate dollar amount of credit by the commissioner,
 and does not apply to allowance to a taxpayer of the credit with respect

 S. 2009--B                         111
 
 to an eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING
 for each year of the credit period.
   § 3. Subdivision 4 of section 22 of the public housing law, as amended
 by  section 3 of part H of chapter 60 of the laws of 2016, is amended to
 read as follows:
   4. Statewide limitation. The aggregate dollar amount of  credit  which
 the  commissioner  may  allocate  to eligible low-income buildings under
 this article shall be  eighty-eight  million  dollars.    THE  AGGREGATE
 DOLLAR  AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE
 MIDDLE-INCOME BUILDINGS UNDER THIS ARTICLE SHALL BE TWENTY-FIVE  MILLION
 DOLLARS.  The  limitation  provided  by this subdivision applies only to
 allocation of the aggregate dollar amount of credit by the commissioner,
 and does not apply to allowance to a taxpayer of the credit with respect
 to an eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING
 for each year of the credit period.
   § 4. Subdivision 4 of section 22 of the public housing law, as amended
 by section 4 of part H of chapter 60 of the laws of 2016, is amended  to
 read as follows:
   4.  Statewide  limitation. The aggregate dollar amount of credit which
 the commissioner may allocate to  eligible  low-income  buildings  under
 this  article shall be ninety-six million dollars.  THE AGGREGATE DOLLAR
 AMOUNT OF  CREDIT  WHICH  THE  COMMISSIONER  MAY  ALLOCATE  TO  ELIGIBLE
 MIDDLE-INCOME  BUILDINGS UNDER THIS ARTICLE SHALL BE TWENTY-FIVE MILLION
 DOLLARS. The limitation provided by this  subdivision  applies  only  to
 allocation of the aggregate dollar amount of credit by the commissioner,
 and does not apply to allowance to a taxpayer of the credit with respect
 to an eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING
 for each year of the credit period.
   § 5. Subdivision 4 of section 22 of the public housing law, as amended
 by  section 5 of part H of chapter 60 of the laws of 2016, is amended to
 read as follows:
   4. Statewide limitation. The aggregate dollar amount of  credit  which
 the  commissioner  may  allocate  to eligible low-income buildings under
 this article shall be one hundred four million dollars.   THE  AGGREGATE
 DOLLAR  AMOUNT OF CREDIT WHICH THE COMMISSIONER MAY ALLOCATE TO ELIGIBLE
 MIDDLE-INCOME BUILDINGS UNDER THIS ARTICLE SHALL BE TWENTY-FIVE  MILLION
 DOLLARS.  The  limitation  provided  by this subdivision applies only to
 allocation of the aggregate dollar amount of credit by the commissioner,
 and does not apply to allowance to a taxpayer of the credit with respect
 to an eligible low-income building OR AN ELIGIBLE MIDDLE-INCOME BUILDING
 for each year of the credit period.
   § 6. The tax law is amended by adding a new section 18-a  to  read  as
 follows:
   §  18-A.  MIDDLE-INCOME  HOUSING  CREDIT.  (A)  ALLOWANCE OF CREDIT. A
 TAXPAYER SUBJECT TO TAX UNDER ARTICLE  NINE-A,  TWENTY-TWO,  OR  THIRTY-
 THREE OF THIS CHAPTER SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSU-
 ANT  TO  THE  PROVISIONS  REFERENCED IN SUBDIVISION (D) OF THIS SECTION,
 WITH RESPECT TO THE OWNERSHIP OF ELIGIBLE  MIDDLE-INCOME  BUILDINGS  FOR
 WHICH  AN  ELIGIBILITY  STATEMENT HAS BEEN ISSUED BY THE COMMISSIONER OF
 HOUSING AND COMMUNITY RENEWAL. THE AMOUNT OF THE  CREDIT  SHALL  BE  THE
 CREDIT  AMOUNT  FOR EACH SUCH BUILDING ALLOCATED BY SUCH COMMISSIONER AS
 PROVIDED IN ARTICLE TWO-A OF THE PUBLIC HOUSING LAW. THE  CREDIT  AMOUNT
 SHALL BE ALLOWED FOR EACH OF THE TEN TAXABLE YEARS IN THE CREDIT PERIOD,
 AND ANY REDUCTION IN FIRST-YEAR CREDIT AS PROVIDED IN SUBDIVISION TWO OF
 SECTION  TWENTY-TWO OF SUCH LAW SHALL BE ALLOWED IN THE ELEVENTH TAXABLE
 YEAR.

 S. 2009--B                         112
 
   (B) CREDIT RECAPTURE. (1) GENERAL. IF, AS OF THE CLOSE OF ANY  TAXABLE
 YEAR  IN THE COMPLIANCE PERIOD, THE AMOUNT OF THE QUALIFIED BASIS OF ANY
 BUILDING WITH RESPECT TO THE TAXPAYER IS LESS THAN THE  AMOUNT  OF  SUCH
 BASIS  AS  OF  THE  CLOSE OF THE PRECEDING TAXABLE YEAR, THEN THE CREDIT
 RECAPTURE AMOUNT MUST BE ADDED BACK FOR THE TAXABLE YEAR.
   (2)  CREDIT RECAPTURE AMOUNT. THE CREDIT RECAPTURE AMOUNT IS AN AMOUNT
 EQUAL TO THE SUM OF
   (A) THE AGGREGATE DECREASE IN THE  CREDITS  ALLOWED  TO  THE  TAXPAYER
 UNDER THIS SECTION FOR ALL PRIOR TAXABLE YEARS WHICH WOULD HAVE RESULTED
 IF  THE  ACCELERATED  PORTION  OF THE CREDIT ALLOWABLE BY REASON OF THIS
 SECTION WERE NOT ALLOWED FOR ALL PRIOR TAXABLE YEARS WITH RESPECT TO THE
 EXCESS OF THE AMOUNT DESCRIBED IN SUBPARAGRAPH (B) OF PARAGRAPH  ONE  OF
 THIS  SUBDIVISION  OVER THE AMOUNT DESCRIBED IN SUBPARAGRAPH (A) OF SUCH
 PARAGRAPH, PLUS
   (B) INTEREST AT THE OVERPAYMENT RATE  ESTABLISHED  UNDER  SECTION  ONE
 THOUSAND  NINETY-SIX  OF  THIS  CHAPTER  ON  THE AMOUNT DETERMINED UNDER
 SUBPARAGRAPH (A) OF THIS PARAGRAPH FOR EACH PRIOR TAXABLE YEAR  FOR  THE
 PERIOD  BEGINNING  ON  THE  DUE DATE FOR FILING THE REPORT FOR THE PRIOR
 TAXABLE YEAR INVOLVED.
   (3) ACCELERATED PORTION OF CREDIT. FOR PURPOSES OF  PARAGRAPH  TWO  OF
 THIS  SUBDIVISION,  THE  ACCELERATED PORTION OF THE CREDIT FOR THE PRIOR
 TAXABLE YEARS WITH RESPECT TO ANY AMOUNT OF BASIS IS THE EXCESS OF
   (A) THE AGGREGATE CREDIT ALLOWED BY REASON OF  THIS  SECTION  (WITHOUT
 REGARD  TO  THIS SUBDIVISION) FOR SUCH YEARS WITH RESPECT TO SUCH BASIS,
 OVER
   (B) THE AGGREGATE CREDIT WHICH WOULD BE ALLOWABLE BY  REASON  OF  THIS
 SECTION FOR SUCH YEARS WITH RESPECT TO SUCH BASIS IF THE AGGREGATE CRED-
 IT  WHICH  WOULD  (BUT  FOR  THIS SUBDIVISION) HAVE BEEN ALLOWED FOR THE
 ENTIRE COMPLIANCE PERIOD WERE ALLOWABLE RATABLY OVER FIFTEEN YEARS.
   (4) SPECIAL RULES. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  RULES  OF
 SECTION 42 (J)(4)(B) AND (C) OF THE INTERNAL REVENUE CODE SHALL APPLY IN
 DETERMINING THE CREDIT RECAPTURE AMOUNT.
   (5)  EXCEPTIONS  TO  RECAPTURE. RECAPTURE UNDER THIS SUBDIVISION SHALL
 NOT APPLY TO A REDUCTION IN QUALIFIED BASIS
   (A) BY REASON OF A CASUALTY LOSS, IF THE COMMISSIONER, IN CONSULTATION
 WITH THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL, DETERMINES  THAT
 SUCH  LOSS IS RESTORED BY RECONSTRUCTION OR REPLACEMENT WITHIN A REASON-
 ABLE PERIOD, OR
   (B) BY REASON OF A CHANGE IN  FLOOR  SPACE  DEVOTED  TO  MIDDLE-INCOME
 UNITS  IN A BUILDING, IF SUCH BUILDING REMAINS AN ELIGIBLE MIDDLE-INCOME
 BUILDING AFTER SUCH CHANGE, AND IF  THE  COMMISSIONER,  IN  CONSULTATION
 WITH  THE COMMISSIONER OF HOUSING AND COMMUNITY RENEWAL, DETERMINES THAT
 SUCH CHANGE IS DE MINIMIS, OR
   (C) BY REASON OF ERROR IN  COMPLYING  WITH  MIDDLE-INCOME  ELIGIBILITY
 TESTS  REFERRED  TO  IN  SUBDIVISION  FIVE  OF SECTION TWENTY-ONE OF THE
 PUBLIC HOUSING LAW,  IF  THE  COMMISSIONER,  IN  CONSULTATION  WITH  THE
 COMMISSIONER  OF  HOUSING  AND  COMMUNITY  RENEWAL, DETERMINES THAT SUCH
 ERROR IS DE MINIMIS.
   (6) RECAPTURE BY PARTNERS OF A PARTNERSHIP. IN THE CASE  OF  OWNERSHIP
 OF A BUILDING OR INTEREST THEREIN BY A PARTNERSHIP WHICH HAS THIRTY-FIVE
 OR  MORE  PARTNERS,  THE  PROVISIONS OF SECTION 42(J)(5) OF THE INTERNAL
 REVENUE CODE SHALL APPLY TO ANY RECAPTURE UNDER THIS SUBDIVISION  UNLESS
 THE PARTNERSHIP ELECTS NOT TO HAVE SUCH PROVISIONS APPLY.
   (7)  (A) THE CREDIT RECAPTURE REQUIRED UNDER THIS SUBDIVISION WILL NOT
 APPLY SOLELY BY REASON OF THE DISPOSITION OF A BUILDING OR  AN  INTEREST
 THEREIN IF IT IS REASONABLY EXPECTED THAT SUCH BUILDING WILL CONTINUE TO

 S. 2009--B                         113
 
 BE  OPERATED  AS  AN  ELIGIBLE  MIDDLE-INCOME BUILDING FOR THE REMAINING
 COMPLIANCE PERIOD WITH RESPECT TO SUCH BUILDING.
   (B)  STATUTE OF LIMITATIONS. IF A BUILDING (OR AN INTEREST THEREIN) IS
 DISPOSED OF DURING ANY TAXABLE YEAR AND THERE IS ANY  REDUCTION  IN  THE
 QUALIFIED  BASIS  OF  SUCH  BUILDING WHICH RESULTS IN AN INCREASE IN TAX
 UNDER THIS SECTION FOR SUCH TAXABLE OR ANY SUBSEQUENT TAXABLE YEAR, THEN
   (I) THE STATUTORY PERIOD FOR THE ASSESSMENT  OF  ANY  DEFICIENCY  WITH
 RESPECT TO SUCH INCREASE IN TAX WILL NOT EXPIRE BEFORE THE EXPIRATION OF
 THREE  YEARS  FROM  THE  DATE  THE COMMISSIONER OF HOUSING AND COMMUNITY
 RENEWAL IS NOTIFIED BY THE TAXPAYER (IN SUCH MANNER AS THE  COMMISSIONER
 OF  HOUSING  AND  COMMUNITY  RENEWAL MAY PRESCRIBE) OF SUCH REDUCTION IN
 QUALIFIED BASIS, AND
   (II) SUCH DEFICIENCY MAY BE ASSESSED BEFORE  THE  EXPIRATION  OF  SUCH
 THREE-YEAR  PERIOD  NOTWITHSTANDING  THE  PROVISIONS OF ANY OTHER LAW OR
 RULE OF LAW WHICH WOULD OTHERWISE PREVENT SUCH ASSESSMENT.
   (C) CONSTRUCTION WITH PUBLIC HOUSING LAW; DEFINITIONS. THE  PROVISIONS
 OF THIS SECTION SHALL BE CONSTRUED IN CONJUNCTION WITH THE PROVISIONS OF
 ARTICLE TWO-A OF THE PUBLIC HOUSING LAW. FOR DEFINITIONS RELATING TO THE
 MIDDLE-INCOME HOUSING CREDIT, SEE SECTION TWENTY-ONE OF SUCH LAW.
   (D)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 15-A,
   (2) ARTICLE 22: SECTION 606: SUBSECTIONS (I) AND (X-1),
   (3) ARTICLE 33: SECTION 1511: SUBDIVISION (N-1).
   § 7. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 15-a to read as follows:
   15-A. MIDDLE-INCOME HOUSING CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAY-
 ER  SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
 WITH RESPECT TO  THE  OWNERSHIP  OF  ELIGIBLE  MIDDLE-INCOME  BUILDINGS,
 COMPUTED AS PROVIDED IN SECTION EIGHTEEN-A OF THIS CHAPTER.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX DUE FOR
 SUCH YEAR TO LESS THAN THE HIGHER OF THE  AMOUNTS  PRESCRIBED  IN  PARA-
 GRAPHS  (C)  AND (D) OF SUBDIVISION ONE OF THIS SECTION. 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  SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  TWO
 HUNDRED EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF
 SUBSECTION  (C)  OF  SECTION  ONE  THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
 NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (C) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SUBDIVISION (B) OF SECTION EIGHTEEN-A OF THIS CHAPTER.
   §  8. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new clause  (xiii-a)  to  read  as
 follows:
 
 (XIII-A) MIDDLE-INCOME HOUSING       CREDIT AMOUNT UNDER SUBDIVISION
 CREDIT UNDER SUBSECTION (X-L)        FIFTEEN-A OF SECTION TWO
                                      HUNDRED TEN-B
 
   §  9. Section 606 of the tax law is amended by adding a new subsection
 (x-1) to read as follows:
   (X-1) MIDDLE-INCOME HOUSING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAY-
 ER SHALL BE ALLOWED A CREDIT AGAINST THE TAX  IMPOSED  BY  THIS  ARTICLE

 S. 2009--B                         114
 
 WITH  RESPECT  TO  THE  OWNERSHIP  OF  ELIGIBLE MIDDLE-INCOME BUILDINGS,
 COMPUTED AS PROVIDED IN SECTION EIGHTEEN-A OF THIS CHAPTER.
   (2)  APPLICATION  OF  CREDIT.  IF THE AMOUNT OF CREDIT ALLOWABLE UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN 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.
   (3)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SUBDIVISION (B) OF SECTION EIGHTEEN-A OF THIS CHAPTER.
   § 10. Section 1511 of the tax law is amended by adding a new  subdivi-
 sion (n-1) to read as follows:
   (N-1) MIDDLE-INCOME HOUSING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAY-
 ER  SHALL  BE  ALLOWED  A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE
 WITH RESPECT TO  THE  OWNERSHIP  OF  ELIGIBLE  MIDDLE-INCOME  BUILDINGS,
 COMPUTED AS PROVIDED IN SECTION EIGHTEEN-A OF THIS CHAPTER.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX DUE FOR
 SUCH YEAR TO LESS THAN THE MINIMUM TAX FIXED BY PARAGRAPH FOUR OF SUBDI-
 VISION (A) OF SECTION FIFTEEN HUNDRED TWO OF THIS ARTICLE OR BY  SECTION
 FIFTEEN  HUNDRED TWO-A OF THIS ARTICLE, WHICHEVER IS APPLICABLE.  HOWEV-
 ER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
 BLE YEAR REDUCES THE TAX TO SUCH AMOUNT, THEN ANY AMOUNT OF CREDIT  THUS
 NOT  DEDUCTIBLE  IN SUCH TAXABLE YEAR 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, THE
 PROVISIONS OF SUBSECTION (C) OF SECTION  ONE  THOUSAND  EIGHTY-EIGHT  OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   (3)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SUBDIVISION (B) OF SECTION EIGHTEEN-A OF THIS CHAPTER.
   § 11. This act shall take effect immediately; provided that:
   (a) section two of this act shall take effect on the same date and  in
 the same manner as section 2 of part H of chapter 60 of the laws of 2016
 takes effect;
   (b)  section  three of this act shall take effect on the same date and
 in the same manner as section 3 of part H of chapter 60 of the  laws  of
 2016 takes effect;
   (c) section four of this act shall take effect on the same date and in
 the same manner as section 4 of part H of chapter 60 of the laws of 2016
 takes effect; and
   (d) section five of this act shall take effect on the same date and in
 the same manner as section 5 of part H of chapter 60 of the laws of 2016
 takes effect.
 
                                 PART FFF
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (ccc) to read as follows:
   (CCC) CREDIT FOR REHABILITATION OF DISTRESSED  COMMERCIAL  PROPERTIES.
 (1)  FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
 SEVENTEEN, A TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
 AGAINST THE TAX IMPOSED BY THIS ARTICLE, IN AN AMOUNT  EQUAL  TO  THIRTY
 PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
 ER WITH RESPECT TO A QUALIFIED DISTRESSED COMMERCIAL PROPERTY. PROVIDED,
 HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.

 S. 2009--B                         115
 
   (2)  TAX  CREDITS ALLOWED PURSUANT TO THIS SUBSECTION SHALL BE ALLOWED
 IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
 ITATION.
   (3)  IF  THE  AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR
 ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
 EXCESS  MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE
 APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
 EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   (4) (A) THE TERM "QUALIFIED  REHABILITATION  EXPENDITURE"  MEANS,  FOR
 PURPOSES OF THIS SUBSECTION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPITAL
 ACCOUNT:
   (I)  IN  CONNECTION  WITH  THE CERTIFIED REHABILITATION OF A QUALIFIED
 DISTRESSED COMMERCIAL PROPERTY, AND
   (II) FOR PROPERTY FOR WHICH  DEPRECIATION  WOULD  BE  ALLOWABLE  UNDER
 SECTION 168 OF THE INTERNAL REVENUE CODE.
   (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
 OR  INTEREST  THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO THE ENLARGE-
 MENT OF AN EXISTING BUILDING, OR (III) ANY  EXPENDITURE  MADE  PRIOR  TO
 JANUARY  FIRST,  TWO  THOUSAND SEVENTEEN OR AFTER DECEMBER THIRTY-FIRST,
 TWO THOUSAND TWENTY-TWO.
   (5) THE TERM "CERTIFIED REHABILITATION" MEANS, FOR  PURPOSES  OF  THIS
 SUBSECTION,  ANY  REHABILITATION  OF  A  CERTIFIED DISTRESSED COMMERCIAL
 PROPERTY WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT  AS
 BEING  COMPLETED,  WITH  A CERTIFICATE OF OCCUPANCY ISSUED, AND THAT THE
 COSTS ARE CONSISTENT WITH THE WORK COMPLETED. SUCH  CERTIFICATION  SHALL
 BE  ACCEPTABLE  AS PROOF THAT THE EXPENDITURES RELATED TO SUCH REHABILI-
 TATION QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES  OF
 THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBSECTION.
   (6) (A) THE TERM "QUALIFIED DISTRESSED COMMERCIAL PROPERTY" MEANS, FOR
 PURPOSES  OF  THIS  SUBSECTION, A DISTRESSED COMMERCIAL PROPERTY LOCATED
 WITHIN NEW YORK STATE:
   (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   (II) WHICH IS OWNED BY THE TAXPAYER, AND
   (III) WHICH IS LOCATED WITHIN A DISTRESSED COMMERCIAL AREA, AS IDENTI-
 FIED BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED AN AREA IN  NEED
 OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.
   (B)  IF  THE  DISTRESSED  COMMERCIAL PROPERTY IS RENTAL PROPERTY, SUCH
 PROPERTY SHALL HAVE BEEN MORE THAN  THIRTY  PERCENT  VACANT  FOR  TWELVE
 MONTHS WHILE ACTIVELY MARKETED FOR LEASE.
   (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
 ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
 BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   (7)  (A)  IF  THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
 QUALIFIED DISTRESSED COMMERCIAL PROPERTY, OR SUCH PROPERTY CEASES TO  BE
 USED  AS  A  COMMERCIAL  PROPERTY  OF  THE TAXPAYER WITHIN FIVE YEARS OF
 RECEIVING THE CREDIT UNDER THIS SUBSECTION, THE TAXPAYER'S  TAX  IMPOSED
 BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
 TION  OCCURS  SHALL  BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
 ALLOWED UNDER THIS SUBSECTION FOR ALL PRIOR TAXABLE YEARS  WITH  RESPECT
 TO SUCH REHABILITATION.
   (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
 PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
 TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
 LESS  THE  NUMBER  OF MONTHS THE BUILDING IS OWNED OR USED AS COMMERCIAL
 PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.

 S. 2009--B                         116
 
   (8)  ANY  EXPENDITURE  FOR  WHICH  A  CREDIT  IS  CLAIMED  UNDER  THIS
 SUBSECTION  SHALL  NOT BE ELIGIBLE FOR ANY OTHER CREDIT UNDER THIS CHAP-
 TER.
   §  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) CREDIT FOR REHABILITATION     AMOUNT OF CREDIT UNDER
 OF DISTRESSED COMMERCIAL PROPERTIES   SUBDIVISION FORTY-NINE
 UNDER SUBSECTION (CCC)                OF SECTION TWO HUNDRED TEN-B
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:
   49. CREDIT FOR REHABILITATION OF DISTRESSED COMMERCIAL PROPERTIES. (1)
 FOR TAXABLE YEARS BEGINNING ON OR  AFTER  JANUARY  FIRST,  TWO  THOUSAND
 SEVENTEEN, A TAXPAYER SHALL BE ALLOWED A CREDIT AS HEREINAFTER PROVIDED,
 AGAINST  THE  TAX  IMPOSED BY THIS ARTICLE, IN AN AMOUNT EQUAL TO THIRTY
 PERCENT OF THE QUALIFIED REHABILITATION EXPENDITURES MADE BY THE TAXPAY-
 ER WITH RESPECT TO A QUALIFIED DISTRESSED COMMERCIAL PROPERTY. PROVIDED,
 HOWEVER, THE CREDIT SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
   (2) TAX CREDITS ALLOWED PURSUANT TO THIS SUBDIVISION SHALL BE  ALLOWED
 IN THE TAXABLE YEAR IN WHICH THE PROPERTY IS DEEMED A CERTIFIED REHABIL-
 ITATION.
   (3)  IF  THE AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR
 ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S  TAX  FOR  SUCH  YEAR,  THE
 EXCESS  MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE
 APPLIED AGAINST THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS, BUT SHALL NOT
 EXCEED TWENTY-FIVE THOUSAND DOLLARS.
   (4) (A) THE TERM "QUALIFIED  REHABILITATION  EXPENDITURE"  MEANS,  FOR
 PURPOSES  OF THIS SUBDIVISION, ANY AMOUNT PROPERLY CHARGEABLE TO A CAPI-
 TAL ACCOUNT:
   (I) IN CONNECTION WITH THE CERTIFIED  REHABILITATION  OF  A  QUALIFIED
 COMMERCIAL PROPERTY, AND
   (II)  FOR  PROPERTY  FOR  WHICH  DEPRECIATION WOULD BE ALLOWABLE UNDER
 SECTION 168 OF THE INTERNAL REVENUE CODE.
   (B) SUCH TERM SHALL NOT INCLUDE (I) THE COST OF ACQUIRING ANY BUILDING
 OR INTEREST THEREIN, (II) ANY EXPENDITURE ATTRIBUTABLE TO  THE  ENLARGE-
 MENT  OF  AN  EXISTING  BUILDING, OR (III) ANY EXPENDITURE MADE PRIOR TO
 JANUARY FIRST, TWO THOUSAND SEVENTEEN OR  AFTER  DECEMBER  THIRTY-FIRST,
 TWO THOUSAND TWENTY-TWO.
   (5)  THE  TERM  "CERTIFIED REHABILITATION" MEANS, FOR PURPOSES OF THIS
 SUBDIVISION, ANY REHABILITATION OF  A  CERTIFIED  DISTRESSED  COMMERCIAL
 PROPERTY  WHICH HAS BEEN APPROVED AND CERTIFIED BY A LOCAL GOVERNMENT AS
 BEING COMPLETED, WITH A CERTIFICATE OF OCCUPANCY ISSUED,  AND  THAT  THE
 COSTS  ARE  CONSISTENT WITH THE WORK COMPLETED. SUCH CERTIFICATION SHALL
 BE ACCEPTABLE AS PROOF THAT THE EXPENDITURES RELATED TO  SUCH  REHABILI-
 TATION  QUALIFY AS QUALIFIED REHABILITATION EXPENDITURES FOR PURPOSES OF
 THE CREDIT ALLOWED UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
   (6) (A) THE TERM "QUALIFIED DISTRESSED COMMERCIAL PROPERTY" MEANS, FOR
 PURPOSES OF THIS SUBDIVISION, A DISTRESSED COMMERCIAL  PROPERTY  LOCATED
 WITHIN NEW YORK STATE:
   (I) WHICH HAS BEEN SUBSTANTIALLY REHABILITATED,
   (II) WHICH IS OWNED BY THE TAXPAYER, AND
   (III) WHICH IS LOCATED WITHIN A DISTRESSED COMMERCIAL AREA, AS IDENTI-
 FIED  BY EACH LOCALITY THROUGH LOCAL LAW, THAT IS DEEMED AN AREA IN NEED
 OF COMMUNITY RENEWAL DUE TO DILAPIDATION AND VACANCIES.

 S. 2009--B                         117
 
   (B) IF THE DISTRESSED COMMERCIAL PROPERTY  IS  RENTAL  PROPERTY,  SUCH
 PROPERTY  SHALL  HAVE  BEEN  MORE  THAN THIRTY PERCENT VACANT FOR TWELVE
 MONTHS WHILE ACTIVELY MARKETED FOR LEASE.
   (C) A BUILDING SHALL BE TREATED AS HAVING BEEN "SUBSTANTIALLY REHABIL-
 ITATED" IF THE QUALIFIED REHABILITATION EXPENDITURES IN RELATION TO SUCH
 BUILDING TOTAL TEN THOUSAND DOLLARS OR MORE.
   (7)  (A)  IF  THE TAXPAYER DISPOSES OF SUCH TAXPAYER'S INTEREST IN THE
 QUALIFIED DISTRESSED COMMERCIAL PROPERTY, OR SUCH PROPERTY CEASES TO  BE
 USED  AS  A  COMMERCIAL  PROPERTY  OF  THE TAXPAYER WITHIN FIVE YEARS OF
 RECEIVING THE CREDIT UNDER THIS SUBDIVISION, THE TAXPAYER'S TAX  IMPOSED
 BY THIS ARTICLE FOR THE TAXABLE YEAR IN WHICH SUCH DISPOSITION OR CESSA-
 TION  OCCURS  SHALL  BE INCREASED BY THE RECAPTURE PORTION OF THE CREDIT
 ALLOWED UNDER THIS SUBDIVISION FOR ALL PRIOR TAXABLE YEARS WITH  RESPECT
 TO SUCH REHABILITATION.
   (B)  FOR PURPOSES OF SUBPARAGRAPH (A) OF THIS PARAGRAPH, THE RECAPTURE
 PORTION SHALL BE THE PRODUCT OF THE AMOUNT  OF  CREDIT  CLAIMED  BY  THE
 TAXPAYER MULTIPLIED BY A RATIO, THE NUMERATOR OF WHICH IS EQUAL TO SIXTY
 LESS  THE  NUMBER  OF MONTHS THE BUILDING IS OWNED OR USED AS COMMERCIAL
 PROPERTY BY THE TAXPAYER AND THE DENOMINATOR OF WHICH IS SIXTY.
   (8) ANY EXPENDITURE FOR WHICH A CREDIT IS CLAIMED UNDER THIS  SUBDIVI-
 SION SHALL NOT BE ELIGIBLE FOR ANY OTHER CREDIT UNDER THIS CHAPTER.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                 PART GGG
 
   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.
   2. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR IN WHICH THE RESI-
 DENCE HAS BEEN PURCHASED OR CONSTRUCTED, OR THE  RETROFITTING  OR  RENO-
 VATION  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. 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

 S. 2009--B                         118
 
 TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM  THE  TAXPAYER'S
 TAX FOR SUCH YEAR OR YEARS.
   5. 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.
   6. (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.
   7. 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-
 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  expire  and  be
 deemed repealed December 31, 2022.
 
                                 PART HHH
 
   Section 1. Subsection (a) of section 801 of the tax law, as amended by
 section  1  of  part  N of chapter 59 of the laws of 2012, is amended to
 read as follows:
   (a) For the sole purpose of providing an additional stable  and  reli-
 able  dedicated  funding  source  for  the  metropolitan  transportation

 S. 2009--B                         119
 
 authority and its subsidiaries and affiliates to preserve,  operate  and
 improve  essential  transit and transportation services in the metropol-
 itan commuter transportation  district,  a  tax  is  hereby  imposed  on
 employers  and  individuals  as follows: (1) For employers who engage in
 business within the MCTD, the tax is imposed at a  rate  of  (A)  eleven
 hundredths  (.11)  percent  of  the  payroll  expense for employers with
 payroll expense no greater  than  three  hundred  seventy-five  thousand
 dollars  in  any  calendar  quarter,  (B)  twenty-three hundredths (.23)
 percent of the payroll expense for employers with payroll expense great-
 er than three hundred seventy-five thousand dollars and no greater  than
 four  hundred thirty-seven thousand five hundred dollars in any calendar
 quarter, and (C) thirty-four hundredths (.34)  percent  of  the  payroll
 expense  for  employers  with  payroll expense in excess of four hundred
 thirty-seven thousand five hundred dollars in any calendar  quarter.  If
 the  employer  is  a  professional  employer organization, as defined in
 section nine hundred sixteen of the labor law, the employer's tax  shall
 be  calculated  by  determining the payroll expense attributable to each
 client who has entered into a professional employer agreement with  such
 organization  and  the payroll expense attributable to such organization
 itself, multiplying each of those payroll expense amounts by the  appli-
 cable rate set forth in this paragraph and adding those products togeth-
 er.  (2)  For  individuals,  the tax is imposed at a rate of thirty-four
 hundredths (.34) percent of the net  earnings  from  self-employment  of
 individuals that are attributable to the MCTD if such earnings attribut-
 able  to  the MCTD exceed TWO HUNDRED fifty thousand dollars for the tax
 year.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.

                                 PART III
 
   Section 1. Paragraphs 3 and 4 of subsection (b) of section 800 of  the
 tax  law, paragraph 3 as amended by section 1 of part B of chapter 56 of
 the laws of 2011, paragraph 4 as amended by section  1  of  part  YY  of
 chapter  59  of  the  laws of 2015, are amended and a new paragraph 5 is
 added to read as follows:
   (3) an interstate agency or public corporation created pursuant to  an
 agreement or compact with another state or the Dominion of Canada; [or]
   (4)  Any  eligible  educational  institution. An "eligible educational
 institution" shall mean any public school district, a board  of  cooper-
 ative  educational  services, a public elementary or secondary school, a
 school approved pursuant to article eighty-five or  eighty-nine  of  the
 education  law  to  serve students with disabilities of school age, or a
 nonpublic elementary or secondary school that  provides  instruction  in
 grade one or above, all public library systems as defined in subdivision
 one  of  section  two  hundred seventy-two of the education law, and all
 public and free association libraries  as  such  terms  are  defined  in
 subdivision  two  of  section  two  hundred fifty-three of the education
 law[.]; OR
   (5) ANY AGENCY OR INSTRUMENTALITY OF THE STATE OF NEW YORK.
   § 2. This act shall take effect immediately.
 
                                 PART JJJ

 S. 2009--B                         120
 
   Section 1. Paragraph (f) of subdivision 1 of section 209-B of the  tax
 law,  as added by section 7 of part A of chapter 59 of the laws of 2014,
 is amended to read as follows:
   (f) The commissioner shall determine the rate of tax for taxable years
 beginning  on  or after January first, two thousand sixteen by adjusting
 the rate for taxable years beginning on  or  after  January  first,  two
 thousand  fifteen  and  before  January  first,  two thousand sixteen as
 necessary to ensure that the receipts attributable to such surcharge, as
 impacted by the chapter of the laws of two thousand fourteen which added
 this paragraph, will meet and not exceed the financial  projections  for
 state  fiscal  year  two  thousand  sixteen-two  thousand  seventeen, as
 reflected in state fiscal year two thousand fifteen-two thousand sixteen
 enacted budget. The commissioner shall annually determine the rate ther-
 eafter using the financial projections for the state  fiscal  year  that
 commences  in  the  year for which the rate is to be set as reflected in
 the enacted budget for the fiscal year commencing on the previous  April
 first.  PROVIDED HOWEVER, NO INCREASE IN THE RATE SHALL OCCUR IN TAXABLE
 YEARS BEGINNING AFTER TWO THOUSAND TWENTY-ONE.
   § 2. This act shall take effect immediately.
 
                                 PART KKK
 
   Section 1. Paragraph 3-a of subsection (c) of section 612 of  the  tax
 law,  as  amended  by  section  3 of part I of chapter 59 of the laws of
 2015, is amended to read as follows:
   (3-a) Pensions  and  annuities  received  by  an  individual  who  has
 attained  the  age  of  fifty-nine  and one-half, not otherwise excluded
 pursuant to paragraph three of this subsection, to the extent includible
 in gross income for federal income tax purposes, but not  in  excess  of
 [twenty] TWENTY-SEVEN THOUSAND DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON
 OR  AFTER  JANUARY  FIRST,  TWO THOUSAND SEVENTEEN, THIRTY-FOUR THOUSAND
 DOLLARS FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER  JANUARY  FIRST,  TWO
 THOUSAND  EIGHTEEN,  AND FORTY thousand dollars IN EACH SUBSEQUENT YEAR,
 which are periodic payments attributable to personal services  performed
 by  such individual prior to his retirement from employment, which arise
 (i) from an employer-employee relationship or (ii) from contributions to
 a retirement plan which are deductible for federal income tax  purposes.
 PROVIDED,  HOWEVER,  THE  PENSION  AND ANNUITIES BY A MARRIED COUPLE WHO
 FILE JOINT TAX RETURNS SHALL BE DOUBLE THE LIMITATIONS SET FORTH IN THIS
 PARAGRAPH. However, the term "pensions and annuities" shall also include
 distributions received by an individual who  has  attained  the  age  of
 fifty-nine  and  one-half  from  an  individual retirement account or an
 individual retirement annuity, as defined in section four hundred  eight
 of  the internal revenue code, and distributions received by an individ-
 ual who has attained the age of fifty-nine and  one-half  from  self-em-
 ployed  individual  and  owner-employee  retirement  plans which qualify
 under section four hundred one of the internal revenue code, whether  or
 not  the  payments  are  periodic  in  nature.  Nevertheless,  the  term
 "pensions and annuities" shall not include any lump sum distribution, as
 defined in subparagraph (D) of  paragraph  four  of  subsection  (e)  of
 section  four  hundred  two of the internal revenue code and taxed under
 section six hundred three of this article. Where a husband and wife file
 a joint state personal income tax return, the modification provided  for
 in  this  paragraph  shall  be  computed as if they were filing separate
 state personal income tax returns. Where a payment would otherwise  come
 within  the meaning of the term "pensions and annuities" as set forth in

 S. 2009--B                         121
 
 this paragraph, except that such individual is  deceased,  such  payment
 shall,  nevertheless, be treated as a pension or annuity for purposes of
 this paragraph if such payment is received by such individual's  benefi-
 ciary.
   §  2.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after the first of January  of
 the year in which it shall have become a law.
 
                                 PART LLL
 
   Section  1. Subdivision 1 of section 190 of the tax law, as amended by
 section 102 of part A of chapter 59 of the laws of 2014, is  amended  to
 read as follows:
   1.  General.  A  taxpayer  shall  be  allowed a credit against the tax
 imposed by this article equal to twenty  percent  of  the  premium  paid
 during  the  taxable  year  for long-term care insurance OR FOR A POLICY
 RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT  TO  SUBPARAGRAPH  (C),
 (D),  (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOU-
 SAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW; PROVIDED, HOWEVER,  THAT
 FOR  TAXABLE  YEARS  COMMENCING  ON OR AFTER JANUARY FIRST, TWO THOUSAND
 SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, SUCH CREDIT
 SHALL BE FORTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE  YEAR  FOR
 LONG-TERM  CARE  INSURANCE.  In  order  to  qualify for such credit, the
 taxpayer's premium payment must be for the purchase of or for continuing
 coverage under a long-term care insurance policy that qualifies for such
 credit pursuant to section one thousand one  hundred  seventeen  of  the
 insurance law.
   §  2. Paragraph (a) of subdivision 14 of section 210-B of the tax law,
 as added by section 17 of part A of chapter 59 of the laws of  2014,  is
 amended to read as follows:
   (a)  General.  A  taxpayer  shall  be allowed a credit against the tax
 imposed by this article equal to twenty  percent  of  the  premium  paid
 during  the  taxable  year  for long-term care insurance OR FOR A POLICY
 RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT  TO  SUBPARAGRAPH  (C),
 (D),  (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOU-
 SAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW; PROVIDED, HOWEVER,  THAT
 FOR  TAXABLE  YEARS  COMMENCING  ON OR AFTER JANUARY FIRST, TWO THOUSAND
 SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, SUCH CREDIT
 SHALL BE FORTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE  YEAR  FOR
 LONG-TERM  CARE  INSURANCE.    In  order to qualify for such credit, the
 taxpayer's premium payment must be for the purchase of or for continuing
 coverage under a long-term care insurance policy that qualifies for such
 credit pursuant to section one thousand one  hundred  seventeen  of  the
 insurance law.
   §  3. Paragraph 1 of subsection (aa) of section 606 of the tax law, as
 amended by section 1 of part P of chapter 61 of the  laws  of  2005,  is
 amended to read as follows:
   (1)  Residents.  A  taxpayer shall be allowed a credit against the tax
 imposed by this article equal to twenty  percent  of  the  premium  paid
 during  the  taxable  year  for long-term care insurance OR FOR A POLICY
 RIDER TO A LIFE INSURANCE POLICY ISSUED PURSUANT  TO  SUBPARAGRAPH  (C),
 (D),  (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOU-
 SAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW; PROVIDED, HOWEVER,  THAT
 FOR  TAXABLE  YEARS  COMMENCING  ON OR AFTER JANUARY FIRST, TWO THOUSAND
 SEVENTEEN AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, SUCH CREDIT
 SHALL BE FORTY PERCENT OF THE PREMIUM PAID DURING THE TAXABLE  YEAR  FOR

 S. 2009--B                         122
 
 LONG-TERM  CARE  INSURANCE.    In  order to qualify for such credit, the
 taxpayer's premium payment must be for the purchase of or for continuing
 coverage under a long-term care insurance policy that qualifies for such
 credit  pursuant  to  section  one thousand one hundred seventeen of the
 insurance law.  If  the  amount  of  the  credit  allowable  under  this
 subsection for any taxable year shall exceed the taxpayer's tax for such
 year,  the excess may be carried over to the following year or years and
 may be deducted from the taxpayer's tax for such year or years.
   § 4. Paragraph 1 of subsection (m) of section 1511 of the tax law,  as
 amended  by  section  21 of part B of chapter 58 of the laws of 2004, is
 amended to read as follows:
   (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
 this  article  equal  to  twenty  percent of the premium paid during the
 taxable year for long-term care insurance OR FOR A  POLICY  RIDER  TO  A
 LIFE  INSURANCE  POLICY ISSUED PURSUANT TO SUBPARAGRAPH (C), (D), (E) OR
 (F) OF PARAGRAPH ONE OF SUBSECTION  (A)  OF  SECTION  ONE  THOUSAND  ONE
 HUNDRED THIRTEEN OF THE INSURANCE LAW; PROVIDED, HOWEVER, THAT FOR TAXA-
 BLE  YEARS  COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVENTEEN
 AND BEFORE JANUARY FIRST, TWO THOUSAND TWENTY-ONE, SUCH CREDIT SHALL  BE
 FORTY  PERCENT OF THE PREMIUM PAID DURING THE TAXABLE YEAR FOR LONG-TERM
 CARE INSURANCE.  In order to qualify for  such  credit,  the  taxpayer's
 premium  payment  must be for the purchase of or for continuing coverage
 under a long-term care insurance policy that qualifies for  such  credit
 pursuant  to section one thousand one hundred seventeen of the insurance
 law.
   § 5. Paragraphs 1 and 2 of subsection  (g)  of  section  1117  of  the
 insurance  law,  paragraph  1  as  amended by chapter 417 of the laws of
 2001, paragraph 2 as amended by section 12 of part E of  chapter  63  of
 the laws of 2000 and subparagraphs (A) and (B) of paragraph 2 as amended
 by chapter 311 of the laws of 2002, are amended to read as follows:
   (1)  Except for certain group contracts described in paragraph four of
 this subsection, in order for premium payments for long-term care insur-
 ance, OR FOR A POLICY RIDER TO A LIFE INSURANCE POLICY  ISSUED  PURSUANT
 TO  SUBPARAGRAPH (C), (D), (E) OR (F) OF PARAGRAPH ONE OF SUBSECTION (A)
 OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS ARTICLE, to qualify
 for purposes of section one hundred ninety, subdivision  [twenty-five-a]
 FOURTEEN  of section two hundred [ten] TEN-B, subsection (aa) of section
 six hundred six[, subsection (k) of section one  thousand  four  hundred
 fifty-six] and subsection (m) of section one thousand five hundred elev-
 en  of  the  tax  law, the long-term care insurance OR SUCH POLICY RIDER
 must be approved by the  superintendent  pursuant  to  this  subsection.
 Prior  to  approving any such insurance OR POLICY RIDER, the superinten-
 dent shall conclude that it meets minimum standards,  including  minimum
 loss  ratio  standards  under this section or section three thousand two
 hundred twenty-nine of this chapter and is a  qualified  long-term  care
 insurance  contract  as defined in section 7702B of the internal revenue
 code.
   (2) (A) No insurer, agent, broker,  person,  business  or  corporation
 doing  business  in or into this state shall in any manner state, adver-
 tise or claim that a long-term care insurance policy, OR A POLICY  RIDER
 TO A LIFE INSURANCE POLICY ISSUED PURSUANT TO SUBPARAGRAPH (C), (D), (E)
 OR  (F)  OF  PARAGRAPH ONE OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE
 HUNDRED THIRTEEN OF THIS ARTICLE, qualifies for purposes of  the  above-
 referenced  provisions of the tax law unless either: (i) the superinten-
 dent has issued a letter or other  written  instrument  to  the  insurer
 stating  that  the policy OR POLICY RIDER has been determined to qualify

 S. 2009--B                         123
 
 under this subsection, or (ii) the  policy  OR  POLICY  RIDER  qualifies
 under paragraph four of this subsection without the need for approval by
 the superintendent.
   (B)  Any policy OR POLICY RIDER which is held out or purported to be a
 long-term care insurance policy by any insurer, agent,  broker,  person,
 business  or  corporation doing business in or into this state which has
 not been determined by the superintendent to qualify and which does  not
 qualify  under  paragraph  four  of  this subsection for purposes of the
 above referenced provisions of the tax law shall so state clearly, legi-
 bly and in close physical proximity to any description of the policy  OR
 POLICY  RIDER  as  a long-term care insurance policy that it does not so
 qualify. This subsection shall also be deemed to  cover  any  statement,
 advertisement  or  claim  concerning  such policy by any insurer, agent,
 broker, person, business or corporation doing business in or  into  this
 state.
   (C)  Violation  of  this  paragraph shall be considered a misrepresen-
 tation under section [twenty-one] TWO THOUSAND ONE hundred  twenty-three
 of this chapter.
   §  6.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after January 1, 2017.
 
                                 PART MMM
 
   Section 1. Subsection (d) of section 615 of the tax law is amended  by
 adding a new paragraph 5 to read as follows:
   (5)  AN  AMOUNT  EQUAL  TO  TEN THOUSAND DOLLARS FOR THE ADOPTION OF A
 CHILD WITH SPECIAL NEEDS. THE AMOUNT ALLOWED BY THIS  PARAGRAPH  MAY  BE
 USED  BY  A  TAXPAYER TO INCREASE HIS OR HER DEDUCTION IN EACH YEAR THAT
 THE TAXPAYER IS THE LEGAL PARENT OF A CHILD WITH SPECIAL NEEDS.
   FOR PURPOSES OF THIS PARAGRAPH, A CHILD WITH SPECIAL NEEDS SHALL  MEAN
 ANY CHILD WHO IS UNDER THE AGE OF TWENTY-ONE AND WHO POSSESSES A SPECIF-
 IC PHYSICAL, MENTAL, OR EMOTIONAL CONDITION OR DISABILITY OF SUCH SEVER-
 ITY  OR  KIND  THAT, IN THE OPINION OF THE OFFICE OF CHILDREN AND FAMILY
 SERVICES,  WOULD  CONSTITUTE  A  SIGNIFICANT  OBSTACLE  TO  THE  CHILD'S
 ADOPTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2017.
 
                                 PART NNN

   Section  1. Subsection (a) of section 601-a of the tax law, as amended
 by section 10 of part FF of chapter 59 of the laws of 2013,  is  amended
 to read as follows:
   (a)  For  tax  year two thousand thirteen, the commissioner, not later
 than September first, two thousand twelve, shall  multiply  the  amounts
 specified  in  subsection  (b) of this section for tax year two thousand
 twelve by one plus the cost of living adjustment described in subsection
 (c) of this section. For tax year two thousand fourteen, the commission-
 er, not later than September first, two thousand thirteen, shall  multi-
 ply the amounts specified in subsection (b) of this section for tax year
 two  thousand  thirteen  by  one plus the cost of living adjustment. For
 each succeeding tax year after  tax  year  two  thousand  fourteen  [and
 before tax year two thousand eighteen], the commissioner, not later than
 September  first  of such tax year, shall multiply the amounts specified
 in subsection (b) of this section for such tax year by one plus the cost

 S. 2009--B                         124
 
 of living adjustment described in subsection (c)  of  this  section  for
 such tax year.
   § 2. This act shall take effect immediately.
 
                                 PART OOO
 
   Section  1.  Paragraph  1  of subsection (a) of section 651 of the tax
 law, as amended by section 6 of part J of chapter  59  of  the  laws  of
 2014, is amended to read as follows:
   (1)  every  resident  individual (A) required to file a federal income
 tax return for the taxable year, or (B) having  federal  adjusted  gross
 income  for  the  taxable  year,  increased  by  the modifications under
 subsection (b) of section six hundred twelve OF THIS ARTICLE, in  excess
 of [four thousand dollars, or in excess of] his OR HER New York standard
 deduction,  [if  lower,]  or (C) SUBJECT TO TAX UNDER FORMER SECTION SIX
 HUNDRED TWO OF THIS ARTICLE, OR (D) having received during  the  taxable
 year  a  lump  sum  distribution  any portion of which is subject to tax
 under section six hundred three OF THIS ARTICLE;
   § 2. This act shall take effect immediately and apply to taxable years
 beginning on or after January 1, 2017.
 
                                 PART PPP
 
   Section 1. Subdivision (c) of section 3013 of the tax law, as added by
 chapter 479 of the laws of 2011, is amended to read as follows:
   (c) (1) In the event that  the  commissioner  elects  to  implement  a
 program  providing for payment of personal income tax refunds by prepaid
 debit card or direct deposit to [a] designated [account] ACCOUNTS of the
 taxpayer, the department shall amend the forms  used  to  file  personal
 income  tax  returns to reflect, in the area designated for selection of
 options for processing of refunds, that the taxpayer has the  option  of
 receiving  his  or  her tax refund by personal check and shall provide a
 box which the taxpayer may check to select that option.
   (2) DESIGNATED ACCOUNTS INCLUDE BUT ARE NOT LIMITED TO,  UP  TO  THREE
 ACCOUNTS  WITH  FINANCIAL  INSTITUTIONS  THAT  HAVE  ROUTING AND ACCOUNT
 NUMBERS AND ARE HELD IN THE NAMES OF  THE  TAXPAYER'S  SPOUSE  OR  JOINT
 ACCOUNT.  DESIGNATED  ACCOUNTS  HELD  IN  ONE  SPOUSE'S NAME MAY RECEIVE
 PERSONAL INCOME TAX REFUNDS FROM A MARRIED FILING JOINT RETURN.
   § 2. This act shall take effect immediately, provided,  however,  that
 the amendments to subdivision (c) of section 3013 of the tax law made by
 section  one of this act shall not affect the repeal of such section and
 shall be deemed repealed therewith.
 
                                 PART QQQ
 
   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

 S. 2009--B                         125
 
 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.
   § 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 taxable years [after] two thousand  [fifteen]
 SIXTEEN AND SEVENTEEN, a basic STAR credit shall be available to a qual-
 ified 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:

 S. 2009--B                         126
 
   [Beginning with] FOR taxable  years  [after]  two  thousand  [fifteen]
 SIXTEEN  AND  SEVENTEEN, an enhanced STAR credit shall be available to a
 qualified 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 2018--2019 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 2018--2019 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 2018--2019
 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
 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.

 S. 2009--B                         127
 
   Notwithstanding  any  other  provision  of  law  to  the contrary, the
 commissioner of taxation and finance shall no later  than  December  31,
 2017  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 2017, or has applied for a credit for taxable year 2018
 and  any additional information available that would assist the assessor
 in accurately  determining  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 2018--2019 school year using information provided
 by the commissioner of taxation and finance.  Taxpayers who received the
 STAR credit for the 2017--2018 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 2018--2019 school year; however, if a proper-
 ty'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 appro-
 priate  corrections.  If  the correction is not made before school taxes
 are levied, the failure to take the exemption into account in the compu-
 tation 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 RRR
 
   Section 1. Subparagraphs (B) and (C) of  paragraph  10  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, are amended to read as follows:
   (B) On or before September [fifteenth] FIRST of each year, or as  soon
 thereafter  as  practicable, the commissioner shall determine the eligi-
 bility of taxpayers for this credit utilizing the information  available
 to  him  or her as obtained from the applications submitted on or before
 July first of that year, or such later date as may have been  prescribed
 by the commissioner for that purpose, and from such other sources as the
 commissioner  deems  reliable  and appropriate. For those taxpayers whom
 the commissioner has determined eligible for this  credit,  the  commis-
 sioner  shall  advance  a  payment  in the amount specified in paragraph
 three, four or six of this subsection,  whichever  is  applicable.  Such
 payment  shall  be issued by September [thirtieth] FIFTEENTH of the year
 the credit is allowed, or as soon thereafter as is practicable.  Nothing
 contained herein shall be deemed to preclude the commissioner from issu-
 ing payments after September  thirtieth  to  qualified  taxpayers  whose
 applications were made after July first of that year, or such later date

 S. 2009--B                         128
 
 as  may  have  been  prescribed  by  the  commissioner for such purpose.
 PROVIDED, HOWEVER, FOR A QUALIFIED TAXPAYER THAT  HAS  APPLIED  FOR  THE
 ADVANCED PAYMENT BY JULY FIRST OF THE TAX YEAR OR IS ALREADY ELIGIBLE TO
 RECEIVE AN ADVANCED PAYMENT PRIOR TO JULY FIRST, IF THE ADVANCED PAYMENT
 IS  NOT  POSTMARKED  BY  THE FIFTEENTH OF SEPTEMBER OR THE AMOUNT OF THE
 ADVANCED PAYMENT THAT IS POSTMARKED BY THE  FIFTEENTH  OF  SEPTEMBER  IS
 LESS  THAN THE AMOUNT DUE THE TAXPAYER THEN THE QUALIFIED TAXPAYER SHALL
 RECEIVE AN AMOUNT EQUAL TO THE INTEREST AND PENALTY PAYMENT  IMPOSED  BY
 THE  SCHOOL DISTRICT FOR LATE PAYMENT OF THE SCHOOL TAX BILL PLUS INTER-
 EST PURSUANT TO PARAGRAPH (I) OF SECTION  SIX  HUNDRED  EIGHTY-EIGHT  OF
 THIS ARTICLE.
   (C) A taxpayer who has failed to receive an advance payment that he or
 she  believes  was  due  to  him  or her, or who has received an advance
 payment that he or she believes is less than the amount that was due  to
 him  or  her,  OR  WHO  DID  NOT RECEIVE THE ADVANCE PAYMENT BY THE DATE
 PRESCRIBED IN SUBPARAGRAPH (B) OF THIS PARAGRAPH may request payment  of
 the  claimed  deficiency PLUS THE AMOUNT OF INTEREST AND PENALTY PAYMENT
 IMPOSED BY THE SCHOOL DISTRICT FOR LATE PAYMENT OF THE SCHOOL  TAX  BILL
 AND  INTEREST  PURSUANT  TO PARAGRAPH (I) OF SECTION SIX HUNDRED EIGHTY-
 EIGHT OF THIS ARTICLE  in  a  manner  prescribed  by  the  commissioner.
 PROVIDED,  HOWEVER,  IF  A  TAXPAYER  RECEIVES AN ADVANCED PAYMENT ON OR
 AFTER OCTOBER FIRST, THE TAXPAYER IS NOT ELIGIBLE FOR  ANY  INTEREST  OR
 PENALTY  IMPOSED  BY  THE SCHOOL DISTRICT THAT IS INCURRED FIVE BUSINESS
 DAYS AFTER THE POSTMARK OF THE ADVANCED PAYMENT.
   § 2. Section 688 of the tax law is amended by adding a  new  paragraph
 (i) to read as follows:
   (I)  NOTWITHSTANDING  ANY  OTHER  PROVISIONS IN THIS SECTION, INTEREST
 WILL BE ALLOWED ON ANY ADVANCE PAYMENT  ALLOWED  PURSUANT  TO  PARAGRAPH
 (EEE)  OF SECTION SIX HUNDRED SIX OF THIS ARTICLE THAT IS NOT POSTMARKED
 BY THE FIFTEENTH OF SEPTEMBER OR IS LESS THAN THE AMOUNT DUE THE TAXPAY-
 ER FOR QUALIFIED TAXPAYERS THAT HAS  APPLIED  FOR  THE  ADVANCE  PAYMENT
 PRIOR  TO  JULY FIRST OF THAT TAX YEAR OR IS ALREADY ELIGIBLE TO RECEIVE
 AN ADVANCE PAYMENT PRIOR TO JULY FIRST.
   § 3. This act shall take effect immediately.
 
                                 PART SSS
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 44 to read as follows:
   (44)  MONUMENTS  AS THAT TERM IS DEFINED IN SUBDIVISION (F) OF SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW.
   § 2. This act shall take effect on the first day of a sales tax  quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law,  beginning  at least ninety days after the date this act shall have
 become a law and shall apply to sales made on or after such date.
 
                                 PART TTT
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 7-a to read as follows:
   (7-A)  TANGIBLE  PERSONAL PROPERTY AND SERVICES SOLD BY A CEMETERY FOR
 THE EXCLUSIVE USE ON THE GROUNDS AND IN THE BUILDINGS  OF  THE  CEMETERY
 CORPORATION  INCLUDING  BUT  NOT  LIMITED  TO  THE  ADDITIONAL  SERVICES
 PROVIDED BY A CEMETERY AS DEFINED IN PARAGRAPH (B)  OF  SECTION  FIFTEEN
 HUNDRED  NINE  OF THE NOT-FOR-PROFIT CORPORATION LAW AND FOR THE MAINTE-
 NANCE AND PRESERVATION OF LOTS, PLOTS AND PARTS THEREOF.

 S. 2009--B                         129
 
   § 2. Subdivision (a) of section 1116 of the  tax  law  is  amended  by
 adding a new paragraph 10 to read as follows:
   (10)  A  CEMETERY  CORPORATION, AS DEFINED IN PARAGRAPH (A) OF SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW, INCLUDING BUT
 NOT LIMITED TO THOSE CEMETERIES REGULATED BY THE RELIGIOUS  CORPORATIONS
 LAW  WHERE  IT  IS  THE PURCHASER, USER, OR CONSUMER, OR WHERE IT IS THE
 VENDOR OF SERVICES OR PROPERTY EXCLUSIVELY TO BE USED ON THE GROUNDS  OR
 BUILDINGS OF THE CORPORATION.
   §  3.  The  tax law is amended by adding a new section 1149 to read as
 follows:
   § 1149. AMNESTY PROGRAM. (A) NOTWITHSTANDING  THE  PROVISIONS  OF  ANY
 OTHER  LAW  TO  THE  CONTRARY,  THERE  IS  HEREBY ESTABLISHED AN AMNESTY
 PROGRAM AS DESCRIBED HEREIN, TO BE ADMINISTERED BY THE COMMISSIONER,  TO
 BE  EFFECTIVE  FOR  THE PERIOD OF APRIL FIRST, TWO THOUSAND SEVENTEEN TO
 MARCH FIFTEENTH, TWO THOUSAND EIGHTEEN FOR  ALL  ELIGIBLE  TAXPAYERS  AS
 DESCRIBED HEREIN, OWING ANY TAX OR SURCHARGE IMPOSED OR FORMERLY IMPOSED
 BY  SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS ARTICLE,
 AND ADMINISTERED BY SUCH COMMISSIONER.
   (B) SUCH AMNESTY PROGRAM SHALL APPLY TO TAX LIABILITIES FOR THE  TAXES
 SET FORTH IN SECTIONS ELEVEN HUNDRED FIVE AND ELEVEN HUNDRED TEN OF THIS
 ARTICLE  FOR TAXABLE PERIODS ENDING OR TRANSACTIONS OR USES OCCURRING ON
 OR BEFORE DECEMBER THIRTY FIRST, TWO THOUSAND SEVENTEEN.
   (C) FOR  PURPOSES  OF  THE  AMNESTY  PROGRAM  ESTABLISHED  UNDER  THIS
 SECTION,  AN  ELIGIBLE  TAXPAYER IS A CEMETERY CORPORATION AS DEFINED BY
 PARAGRAPH (A) OF SECTION  FIFTEEN  HUNDRED  TWO  OF  THE  NOT-FOR-PROFIT
 CORPORATION  LAW  WHO OR WHICH HAS A TAX LIABILITY WITH REGARD TO ONE OR
 MORE OF THE DESIGNATED TAXES FOR THE PERIOD OF TIME DESCRIBED IN  SUBDI-
 VISION (B) OF THIS SECTION.
   (D)  THE  AMNESTY  PROGRAM ESTABLISHED HEREIN SHALL PROVIDE, THAT UPON
 APPLICATION, INCLUDING APPLICABLE RETURNS, WHICH APPLICATION AND RETURNS
 SHALL BE IN SUCH FORM AND SUBMITTED IN SUCH MANNER AS PRESCRIBED BY  THE
 COMMISSIONER  OF TAXATION AND FINANCE, BY AN ELIGIBLE TAXPAYER, AND UPON
 PAYMENT IN SUCH FORM AND IN SUCH MANNER AS PRESCRIBED  BY  SUCH  COMMIS-
 SIONER, WHICH PAYMENT SHALL EITHER ACCOMPANY SUCH APPLICATION OR BE MADE
 WITHIN  THE  TIME  STATED  ON A BILL ISSUED BY SUCH COMMISSIONER TO SUCH
 TAXPAYER, OF THE AMOUNT OF A TAX LIABILITY UNDER  ONE  OR  MORE  OF  THE
 DESIGNATED  TAXES  WITH RESPECT TO WHICH AMNESTY IS SOUGHT, SUCH COMMIS-
 SIONER SHALL WAIVE ANY APPLICABLE PENALTIES AND INTEREST (INCLUDING  THE
 ADDITIONAL  RATE  OF  INTEREST  PRESCRIBED  UNDER SECTION ELEVEN HUNDRED
 FORTY-FIVE OF THIS PART). IN ADDITION, NO CIVIL, ADMINISTRATIVE OR CRIM-
 INAL ACTION OR PROCEEDING SHALL BE  BROUGHT  AGAINST  SUCH  AN  ELIGIBLE
 TAXPAYER  RELATING  TO THE TAX LIABILITY COVERED BY SUCH WAIVER. FAILURE
 TO PAY ALL SUCH TAXES BY THE LATER  OF  MARCH  FIFTEENTH,  TWO  THOUSAND
 EIGHTEEN,  OR  THE  DATE  PRESCRIBED  THEREFOR  ON A BILL ISSUED BY SUCH
 COMMISSIONER, SHALL INVALIDATE  ANY  AMNESTY  GRANTED  PURSUANT  TO  THE
 AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION.
   (E) AMNESTY TAX RETURN FORMS SHALL BE IN A FORM, CONTAIN SUCH INFORMA-
 TION  AND  BE  SUBMITTED  AS  PRESCRIBED  BY  THE COMMISSIONER AND SHALL
 PROVIDE FOR SPECIFICATIONS BY THE APPLICANT OF THE  TAX  LIABILITY  WITH
 RESPECT TO WHICH AMNESTY IS SOUGHT. THE APPLICANT MUST ALSO PROVIDE SUCH
 ADDITIONAL  INFORMATION  AS  IS  REQUIRED BY SUCH COMMISSIONER.  AMNESTY
 SHALL BE GRANTED ONLY WITH RESPECT TO THE TAX LIABILITIES  SPECIFIED  BY
 THE TAXPAYER ON SUCH FORMS. ANY RETURN OR REPORT FILED UNDER THE AMNESTY
 PROGRAM  ESTABLISHED HEREIN IS SUBJECT TO VERIFICATION AND ASSESSMENT AS
 PROVIDED BY STATUTE. IF THE APPLICANT FILES A FALSE  OR  FRAUDULENT  TAX

 S. 2009--B                         130
 
 RETURN  OR  REPORT,  OR  ATTEMPTS IN ANY MANNER TO DEFEAT OR EVADE A TAX
 UNDER THE AMNESTY PROGRAM, AMNESTY SHALL BE DENIED OR RESCINDED.
   (F)  WITH  RESPECT TO ANY EXISTING INSTALLMENT PAYMENT AGREEMENT OF AN
 ELIGIBLE TAXPAYER, WHERE SUCH AGREEMENT APPLIES TO A TAX LIABILITY  WITH
 RESPECT TO WHICH AMNESTY IS SOUGHT BY SUCH TAXPAYER, NOTWITHSTANDING ANY
 TERMS  OF  SUCH AGREEMENT TO THE CONTRARY, SUCH TAXPAYER, AS A CONDITION
 OF RECEIVING AMNESTY, MUST PAY ANY SUCH LIABILITY IN FULL BY  THE  LATER
 OF THE LAST DAY OF THE PRESCRIBED AMNESTY PERIOD, OR THE DATE PRESCRIBED
 THEREFOR ON A BILL ISSUED BY THE COMMISSIONER.
   (G)  THE  COMMISSIONER  MAY  PROMULGATE  REGULATIONS,  ISSUE FORMS AND
 INSTRUCTIONS AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY  TO  IMPLEMENT
 THE  PROVISIONS  OF  THE AMNESTY PROGRAM ESTABLISHED UNDER THIS SECTION.
 SUCH COMMISSIONER SHALL PUBLICIZE THE AMNESTY PROGRAM  PROVIDED  FOR  IN
 THIS  SECTION SO AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN
 SUCH PROGRAM.
   § 4. On or before February 28, 2020, the commissioner of taxation  and
 finance  shall  submit  a report to the chairperson of the assembly ways
 and means committee, the ranking minority member of  the  assembly  ways
 and  means  committee,  the chairperson of the senate finance committee,
 the ranking minority member of the  senate  finance  committee  and  the
 director  of the budget regarding the amnesty program established pursu-
 ant to this act. The report shall contain the following  information  as
 of  the  report cutoff date:  (i) the gross revenue collected under each
 tax and the year or other applicable period  for  or  during  which  the
 liability  was  incurred; (ii) the amount of money spent on advertising,
 notification,  and  outreach  activities,  by  each  activity,   and   a
 description  of  the form and content of such activities, by each activ-
 ity; (iii) the amount paid by the department of taxation and finance for
 services and expenses  related  to  the  establishment  of  the  amnesty
 program;  and  (iv)  an  estimate  of the net revenue generated from the
 amnesty program.
   § 5. This act shall take effect on the first  day  of  the  sales  tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax law beginning on or after December 1, 2017.
 
                                 PART UUU

   Section  1.  Subdivision (a) of section 1115 of the tax law is amended
 by adding a new paragraph 44 to read as follows:
   (44) ENERGY EFFICIENT TANGIBLE PERSONAL PROPERTY  OF  WHATEVER  NATURE
 FOR  USE  OR CONSUMPTION DIRECTLY AND EXCLUSIVELY: (I) IN THE PRODUCTION
 OF SNOW; (II) IN THE UPHILL TRANSPORTATION OF SKIERS; OR  (III)  IN  THE
 GROOMING  AND  MAINTENANCE OF SNOW BY ANY PERSON ENGAGED IN THE BUSINESS
 OF OPERATING A RECREATIONAL FACILITY FOR SKIING.
   § 2. Section 1115 of the tax law is amended by adding a  new  subdivi-
 sion (ll) to read as follows:
   (LL)  FUEL,  GAS, ELECTRICITY AND REFRIGERATION, AND GAS, ELECTRIC AND
 REFRIGERATION SERVICE OF WHATEVER NATURE FOR USE OR CONSUMPTION DIRECTLY
 AND EXCLUSIVELY IN THE PRODUCTION OF SNOW BY ANY PERSON ENGAGED  IN  THE
 BUSINESS  OF  OPERATING  A  RECREATIONAL  FACILITY  FOR SKIING, SHALL BE
 EXEMPT FROM THE TAXES IMPOSED UNDER SUBDIVISIONS (A) AND (B) OF  SECTION
 ELEVEN  HUNDRED  FIVE AND THE COMPENSATING USE TAX IMPOSED UNDER SECTION
 ELEVEN HUNDRED TEN OF THIS ARTICLE.
   § 3. This act shall take effect on the first of July  next  succeeding
 the date on which it shall have become a law.

 S. 2009--B                         131
 
                                 PART VVV
 
   Section  1. Subdivision 13 of section 1118 of the tax law, as added by
 section 7 of part V of chapter 60 of the laws of  2016,  is  amended  to
 read as follows:
   [(13)]  (14) In respect to the use of the following items at a tasting
 held by a licensed producer of alcoholic beverages  in  accordance  with
 the alcoholic beverage control law: (i) the alcoholic beverage or bever-
 ages  authorized  by  the alcoholic beverage control law to be furnished
 [at no charge] to a customer or prospective customer at such tasting for
 consumption at such tasting; and (ii) bottles, corks,  caps  and  labels
 used to package such alcoholic beverages.
   §  2.  Paragraph 33 of subdivision (a) of section 1115 of the tax law,
 as amended by section 1 of part U of chapter 59 of the laws of 2015,  is
 amended to read as follows:
   (33)  Wine or wine product, BEER OR BEER PRODUCT, CIDER OR CIDER PROD-
 UCT, LIQUOR OR LIQUOR PRODUCT, and the KEGS,  CANS,  bottles,  GROWLERS,
 corks,  caps,  and  labels used to package such [wine or wine] ALCOHOLIC
 product, furnished by the official agent of a farm winery, winery, BREW-
 ERY, FARM BREWERY, CIDER PRODUCER, FARM CIDERY, DISTILLERY, FARM DISTIL-
 LERY, wholesaler, or importer at a wine, BEER, CIDER OR  LIQUOR  tasting
 held in accordance with the alcoholic beverage control law to a customer
 or prospective customer who consumes such wine, BEER, CIDER OR LIQUOR at
 such [wine] tasting.
   §  3.  This  act  shall  take effect on the first day of the sales tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax law, beginning at least ninety days after the date  this  act  shall
 have  become  a  law,  and shall apply in accordance with the applicable
 transitional provisions of sections 1106 and 1217 of the tax law.
 
                                 PART WWW

   Section 1. Paragraph 2 of subdivision (e) of section 1111 of  the  tax
 law is amended by adding a new subparagraph (iv) to read as follows:
   (IV)  PROVIDED,  HOWEVER,  WHEN  THE  COMMISSIONER DETERMINES THAT THE
 PRICE OF MOTOR FUEL OR DIESEL MOTOR FUEL RESULTS IN THE PAYMENT OF SALES
 TAX REFUNDS BASED ON THE AMOUNT OF THE PREPAYMENT PROVIDED FOR  IN  THIS
 SECTION,  THE  COMMISSIONER,  BASED ON SUCH DETERMINATION, IS AUTHORIZED
 AND EMPOWERED TO PRESCRIBE AT THE BEGINNING OF EACH  SALES  TAX  QUARTER
 THE  AMOUNT  OF  TAX  PREPAYMENT  PROVIDED  BY THIS SUBDIVISION FOR EACH
 REGION TO BE COLLECTED UPON EACH GALLON OF MOTOR FUEL AND  DIESEL  MOTOR
 FUEL SOLD AT RETAIL. SUCH CALCULATION BY THE COMMISSIONER SHALL BE BASED
 ON  THE  AVERAGE RETAIL SALES PRICE FOR MOTOR FUEL AND DIESEL MOTOR FUEL
 WITHIN EACH RESPECTIVE  REGION,  CALCULATED  BY  THE  COMMISSIONER.  THE
 COMMISSIONER  SHALL  DETERMINE  A PREPAYMENT RATE WHICH IS APPROXIMATELY
 EQUAL TO THE PERCENTAGE OF  THE  PREPAYMENT  RATE  OTHERWISE  APPLICABLE
 WITHOUT  CAUSING REFUNDS, BASED ON THE AMOUNT OF TAX PREPAYMENT, CONSID-
 ERING THE REGIONAL AVERAGE RETAIL SALES PRICES OF SUCH FUEL WITHIN  EACH
 RESPECTIVE  REGION.  SUCH  AMENDED  SCHEDULES, WITH REFERENCE TO THE TAX
 REQUIRED TO BE PREPAID ON MOTOR FUEL OR DIESEL MOTOR FUEL, MAY  FIX  THE
 RATE  PER  GALLON  IN  MULTIPLES OF ONE-TENTH OF ONE CENT. SUCH AUTHORI-
 ZATION AND EMPOWERMENT PROVIDED WITHIN THIS  SUBPARAGRAPH  SHALL  EXPIRE
 JANUARY FIRST, TWO THOUSAND TWENTY-THREE.
   § 2. This act shall take effect April 1, 2017, and shall expire and be
 deemed repealed January 1, 2023.

 S. 2009--B                         132
 
                                 PART XXX
 
   Section  1.  Subparagraph  (A)  of  paragraph 7 of subdivision (ee) of
 section 1115 of the tax law, as amended by section 33 of part A of chap-
 ter 20 of the laws of 2015, is amended to read as follows:
   (A) "Tenant" means a person who, as lessee, enters into a space  lease
 with  a  landlord for a term of ten years or more commencing on or after
 September first, two thousand five, but not later than, in the case of a
 space lease with respect to leased premises located in eligible areas as
 defined in clause (i) of subparagraph (D) of this  paragraph,  September
 first,  two  thousand [seventeen] TWENTY-ONE and, in the case of a space
 lease with respect to leased  premises  located  in  eligible  areas  as
 defined  in  clause (ii) of subparagraph (D) of this paragraph not later
 than September first, two thousand [nineteen]  TWENTY-ONE,  of  premises
 for use as commercial office space in buildings located or to be located
 in  the eligible areas. A person who currently occupies premises for use
 as commercial office space under an existing lease in a building in  the
 eligible  areas  shall not be eligible for exemption under this subdivi-
 sion unless such existing lease, in the  case  of  a  space  lease  with
 respect  to  leased  premises  located  in  eligible areas as defined in
 clause (i) of subparagraph (D) of this paragraph  expires  according  to
 its terms before September first, two thousand [seventeen] TWENTY-ONE or
 such existing lease, in the case of a space lease with respect to leased
 premises located in eligible areas as defined in clause (ii) of subpara-
 graph  (D)  of this paragraph and such person enters into a space lease,
 for a term of ten years or more commencing on or after September  first,
 two  thousand  five, of premises for use as commercial office space in a
 building located or to be located in the eligible areas,  provided  that
 such  space  lease  with  respect to leased premises located in eligible
 areas as defined in clause (i) of subparagraph  (D)  of  this  paragraph
 commences  no later than September first, two thousand [seventeen] TWEN-
 TY-ONE, and provided that such space lease with respect to leased  prem-
 ises located in eligible areas as defined in clause (ii) of subparagraph
 (D) of this paragraph commences no later than September first, two thou-
 sand  [nineteen] TWENTY-ONE and provided, further, that such space lease
 shall expire no earlier than ten  years  after  the  expiration  of  the
 original lease.
   § 2. Section 2 of part C of chapter 2 of the laws of 2005 amending the
 tax  law  relating to exemptions from sales and use taxes, as amended by
 section 34 of part A of chapter 20 of the laws of 2015,  is  amended  to
 read as follows:
   § 2. This act shall take effect September 1, 2005 and shall expire and
 be  deemed repealed on December 1, [2020] 2022, and shall apply to sales
 made, uses occurring and services rendered on or  after  such  effective
 date,  in  accordance  with  the  applicable  transitional provisions of
 sections 1106 and 1217 of the tax law; except that clause (i) of subpar-
 agraph (D) of paragraph seven of subdivision (ee) of section 1115 of the
 tax law, as added by section one of this act, shall expire and be deemed
 repealed December 1, [2018] 2022.
   § 3. Subdivision (b) of section 25-z  of  the  general  city  law,  as
 amended  by  section  35 of part A of chapter 20 of the laws of 2015, is
 amended to read as follows:
   (b) No eligible business shall be authorized to receive a credit under
 any local law enacted pursuant to this article until the  premises  with
 respect  to which it is claiming the credit meet the requirements in the
 definition of eligible premises and until  it  has  obtained  a  certif-

 S. 2009--B                         133
 
 ication  of  eligibility from the mayor of such city or an agency desig-
 nated by such mayor, and an annual certification from such mayor  or  an
 agency  designated  by such mayor as to the number of eligible aggregate
 employment  shares maintained by such eligible business that may qualify
 for obtaining a tax credit for the eligible business' taxable year.  Any
 written documentation submitted to such mayor or such agency or agencies
 in  order  to  obtain  any  such certification shall be deemed a written
 instrument for purposes of section 175.00 of the penal law.  Such  local
 law  may  provide for application fees to be determined by such mayor or
 such agency or agencies. No such certification of eligibility  shall  be
 issued under any local law enacted pursuant to this article to an eligi-
 ble business on or after July first, two thousand [seventeen] TWENTY-ONE
 unless:
   (1)  prior to such date such business has purchased, leased or entered
 into a contract to purchase or lease particular premises or a parcel  on
 which  will  be constructed such premises or already owned such premises
 or parcel;
   (2) prior to such date improvements have been commenced on such  prem-
 ises  or parcel, which improvements will meet the requirements of subdi-
 vision (e) of section twenty-five-y of this article relating to expendi-
 tures for improvements;
   (3) prior to such date such business submits a preliminary application
 for a certification of eligibility to such mayor or such agency or agen-
 cies with respect to a proposed relocation to such particular  premises;
 and
   (4) such business relocates to such particular premises not later than
 thirty-six  months  or, in a case in which the expenditures made for the
 improvements specified in paragraph  two  of  this  subdivision  are  in
 excess  of fifty million dollars within seventy-two months from the date
 of submission of such preliminary application.
   § 4. Subdivision (b) of section 25-ee of  the  general  city  law,  as
 amended  by  section  36 of part A of chapter 20 of the laws of 2015, is
 amended to read as follows:
   (b) No eligible business or special eligible business shall be author-
 ized to receive a credit against tax under any local law enacted  pursu-
 ant  to  this  article  until  the  premises with respect to which it is
 claiming the credit meet the requirements in the definition of  eligible
 premises  and  until it has obtained a certification of eligibility from
 the mayor of such city or any agency designated by such  mayor,  and  an
 annual  certification  from  such  mayor or an agency designated by such
 mayor as to the number of eligible  aggregate  employment  shares  main-
 tained  by such eligible business or such special eligible business that
 may qualify for obtaining a tax credit for the eligible business'  taxa-
 ble  year. No special eligible business shall be authorized to receive a
 credit against tax under the  provisions  of  this  article  unless  the
 number of relocated employee base shares calculated pursuant to subdivi-
 sion (o) of section twenty-five-dd of this article is equal to or great-
 er than the lesser of twenty-five percent of the number of New York city
 base  shares  calculated pursuant to subdivision (p) of such section and
 two hundred fifty employment shares. Any written documentation submitted
 to such mayor or such agency or agencies in order  to  obtain  any  such
 certification  shall  be  deemed  a  written  instrument for purposes of
 section 175.00 of the penal law. Such local law may provide for applica-
 tion fees to be determined by such mayor or such agency or agencies.  No
 certification of eligibility shall be issued under any local law enacted

 S. 2009--B                         134
 
 pursuant to this article to an eligible business on or after July first,
 two thousand [seventeen] TWENTY-ONE unless:
   (1)  prior to such date such business has purchased, leased or entered
 into a contract to purchase or lease  premises  in  the  eligible  Lower
 Manhattan area or a parcel on which will be constructed such premises;
   (2)  prior to such date improvements have been commenced on such prem-
 ises or parcel, which improvements will meet the requirements of  subdi-
 vision (e) of section twenty-five-dd of this article relating to expend-
 itures for improvements;
   (3) prior to such date such business submits a preliminary application
 for a certification of eligibility to such mayor or such agency or agen-
 cies with respect to a proposed relocation to such premises; and
   (4)  such  business relocates to such premises as provided in subdivi-
 sion (j) of section twenty-five-dd of this article not later than  thir-
 ty-six  months  or,  in  a  case  in which the expenditures made for the
 improvements specified in paragraph  two  of  this  subdivision  are  in
 excess  of fifty million dollars within seventy-two months from the date
 of submission of such preliminary application.
   § 5. Subdivision (b) of section 22-622 of the administrative  code  of
 the  city  of New York, as amended by section 37 of part A of chapter 20
 of the laws of 2015, is amended to read as follows:
   (b) No eligible business shall  be  authorized  to  receive  a  credit
 against  tax  or  a  reduction  in  base  rent  subject to tax under the
 provisions of this chapter, and of title eleven of the code as described
 in subdivision (a) of this section, until the premises with  respect  to
 which  it is claiming the credit meet the requirements in the definition
 of eligible premises and until it has obtained a certification of eligi-
 bility from the mayor or an agency designated by the mayor, and an annu-
 al certification from the mayor or an agency designated by the mayor  as
 to the number of eligible aggregate employment shares maintained by such
 eligible  business  that  may qualify for obtaining a tax credit for the
 eligible business' taxable year. Any written documentation submitted  to
 the mayor or such agency or agencies in order to obtain any such certif-
 ication  shall  be  deemed  a written instrument for purposes of section
 175.00 of the penal law. Application fees for such certifications  shall
 be  determined by the mayor or such agency or agencies. No certification
 of eligibility shall be issued to an eligible business on or after  July
 first, two thousand [seventeen] TWENTY-ONE unless:
   (1)  prior to such date such business has purchased, leased or entered
 into a contract to purchase or lease particular premises or a parcel  on
 which  will  be constructed such premises or already owned such premises
 or parcel;
   (2) prior to such date improvements have been commenced on such  prem-
 ises or parcel which improvements will meet the requirements of subdivi-
 sion  (e) of section 22-621 of this chapter relating to expenditures for
 improvements;
   (3) prior to such date such business submits a preliminary application
 for a certification of eligibility to such mayor or such agency or agen-
 cies with respect to a proposed relocation to such particular  premises;
 and
   (4) such business relocates to such particular premises not later than
 thirty-six  months  or,  in  a  case  in which the expenditures made for
 improvements specified in paragraph  two  of  this  subdivision  are  in
 excess  of fifty million dollars within seventy-two months from the date
 of submission of such preliminary application.

 S. 2009--B                         135
 
   § 6. Subdivision (b) of section 22-624 of the administrative  code  of
 the  city  of New York, as amended by section 38 of part A of chapter 20
 of the laws of 2015, is amended to read as follows:
   (b) No eligible business or special eligible business shall be author-
 ized  to receive a credit against tax under the provisions of this chap-
 ter, and of title eleven of the code as described in subdivision (a)  of
 this  section,  until  the premises with respect to which it is claiming
 the credit meet the requirements in the definition of eligible  premises
 and  until it has obtained a certification of eligibility from the mayor
 or an agency designated by the mayor, and an annual  certification  from
 the  mayor  or  an  agency  designated  by the mayor as to the number of
 eligible aggregate employment shares maintained by such  eligible  busi-
 ness  or  special eligible business that may qualify for obtaining a tax
 credit for the eligible business'  taxable  year.  No  special  eligible
 business  shall  be authorized to receive a credit against tax under the
 provisions of this chapter and of title eleven of the  code  unless  the
 number of relocated employee base shares calculated pursuant to subdivi-
 sion  (o)  of section 22-623 of this chapter is equal to or greater than
 the lesser of twenty-five percent of the number of New  York  city  base
 shares  calculated  pursuant  to subdivision (p) of such section 22-623,
 and two hundred  fifty  employment  shares.  Any  written  documentation
 submitted to the mayor or such agency or agencies in order to obtain any
 such  certification shall be deemed a written instrument for purposes of
 section 175.00 of the penal  law.  Application  fees  for  such  certif-
 ications shall be determined by the mayor or such agency or agencies. No
 certification  of eligibility shall be issued to an eligible business on
 or after July first, two thousand [seventeen] TWENTY-ONE unless:
   (1) prior to such date such business has purchased, leased or  entered
 into  a  contract  to  purchase  or lease premises in the eligible Lower
 Manhattan area or a parcel on which will be constructed such premises;
   (2) prior to such date improvements have been commenced on such  prem-
 ises  or parcel, which improvements will meet the requirements of subdi-
 vision (e) of section 22-623 of this chapter  relating  to  expenditures
 for improvements;
   (3) prior to such date such business submits a preliminary application
 for a certification of eligibility to such mayor or such agency or agen-
 cies with respect to a proposed relocation to such premises; and
   (4) such business relocates to such premises not later than thirty-six
 months or, in a case in which the expenditures made for the improvements
 specified  in  paragraph  two of this subdivision are in excess of fifty
 million dollars within seventy-two months from the date of submission of
 such preliminary application.
   § 7. Paragraph 1 of subdivision (b) of section  25-s  of  the  general
 city  law,  as amended by section 39 of part A of chapter 20 of the laws
 of 2015, is amended to read as follows:
   (1) non-residential premises that are  wholly  contained  in  property
 that  is eligible to obtain benefits under title two-D or two-F of arti-
 cle four of the real property tax law, or would be eligible  to  receive
 benefits  under  such  article  except that such property is exempt from
 real property taxation and the requirements of paragraph (b) of subdivi-
 sion seven of section four hundred eighty-nine-dddd of such title two-D,
 or the requirements of subparagraph (ii) of paragraph (b) of subdivision
 five of section four hundred eighty-nine-cccccc  of  such  title  two-F,
 whichever is applicable, have not been satisfied, provided that applica-
 tion for such benefits was made after May third, nineteen hundred eight-
 y-five  and  prior  to  July first, two thousand [seventeen] TWENTY-ONE,

 S. 2009--B                         136
 
 that construction or renovation of such premises was described  in  such
 application, that such premises have been substantially improved by such
 construction  or  renovation  so  described,  that  the minimum required
 expenditure as defined in such title two-D or two-F, whichever is appli-
 cable,  has  been  made,  and  that  such real property is located in an
 eligible area; or
   § 8. Paragraph 3 of subdivision (b) of section  25-s  of  the  general
 city  law,  as amended by section 40 of part A of chapter 20 of the laws
 of 2015, is amended to read as follows:
   (3) non-residential premises that are wholly contained in real proper-
 ty that has obtained approval after October thirty-first,  two  thousand
 and prior to July first, two thousand [seventeen] TWENTY-ONE for financ-
 ing  by an industrial development agency established pursuant to article
 eighteen-A of the general municipal law, provided  that  such  financing
 has been used in whole or in part to substantially improve such premises
 (by  construction  or  renovation), and that expenditures have been made
 for improvements to such real property in excess of ten  per  centum  of
 the  value at which such real property was assessed for tax purposes for
 the tax year in which such improvements commenced,  that  such  expendi-
 tures  have  been made within thirty-six months after the earlier of (i)
 the issuance by such agency of bonds for such  financing,  or  (ii)  the
 conveyance  of title to such property to such agency, and that such real
 property is located in an eligible area; or
   § 9. Paragraph 5 of subdivision (b) of section  25-s  of  the  general
 city  law,  as amended by section 41 of part A of chapter 20 of the laws
 of 2015, is amended to read as follows:
   (5) non-residential premises that are wholly contained in real proper-
 ty owned by such city or the New York  state  urban  development  corpo-
 ration,  or  a  subsidiary  thereof,  a  lease for which was approved in
 accordance with the applicable provisions of the charter of such city or
 by the board of directors of such corporation,  and  such  approval  was
 obtained  after  October  thirty-first,  two  thousand and prior to July
 first, two thousand [seventeen] TWENTY-ONE, provided, however, that such
 premises were constructed or renovated subsequent to such approval, that
 expenditures have been made subsequent to such approval for improvements
 to such real property (by construction or renovation) in excess  of  ten
 per centum of the value at which such real property was assessed for tax
 purposes  for  the  tax  year in which such improvements commenced, that
 such expenditures have been made  within  thirty-six  months  after  the
 effective  date of such lease, and that such real property is located in
 an eligible area; or
   § 10. Paragraph 2 of subdivision (c) of section 25-t  of  the  general
 city  law,  as amended by section 42 of part A of chapter 20 of the laws
 of 2015, is amended to read as follows:
   (2) No eligible energy user, qualified eligible energy  user,  on-site
 cogenerator,  or clean on-site cogenerator shall receive a rebate pursu-
 ant to this article until it  has  obtained  a  certification  from  the
 appropriate  city agency in accordance with a local law enacted pursuant
 to this section. No such certification for a qualified  eligible  energy
 user  shall  be issued on or after November first, two thousand. No such
 certification of any other eligible energy user, on-site cogenerator, or
 clean on-site cogenerator shall be issued on or after  July  first,  two
 thousand [seventeen] TWENTY-ONE.
   §  11.  Paragraph 1 of subdivision (a) of section 25-aa of the general
 city law, as amended by section 43 of part A of chapter 20 of  the  laws
 of 2015, is amended to read as follows:

 S. 2009--B                         137

   (1) is eligible to obtain benefits under title two-D or two-F of arti-
 cle  four  of the real property tax law, or would be eligible to receive
 benefits under such title except that such property is exempt from  real
 property  taxation  and the requirements of paragraph (b) of subdivision
 seven  of  section four hundred eighty-nine-dddd of such title two-D, or
 the requirements of subparagraph (ii) of paragraph  (b)  of  subdivision
 five  of  section  four  hundred eighty-nine-cccccc of such title two-F,
 whichever is applicable, of the real property  tax  law  have  not  been
 satisfied,  provided  that  application for such benefits was made after
 the thirtieth day of June, nineteen hundred ninety-five and  before  the
 first   day   of   July,   two  thousand  [seventeen]  TWENTY-ONE,  that
 construction or renovation of such building or structure  was  described
 in  such  application, that such building or structure has been substan-
 tially improved by such construction or renovation,  and  (i)  that  the
 minimum  required expenditure as defined in such title has been made, or
 (ii) where there is no  applicable  minimum  required  expenditure,  the
 building  was  constructed  within such period or periods of time estab-
 lished by title two-D or two-F, whichever is applicable, of article four
 of the real property tax law for  construction  of  a  new  building  or
 structure; or
   §  12.  Paragraphs  2 and 3 of subdivision (a) of section 25-aa of the
 general city law, as amended by section 44 of part A of  chapter  20  of
 the laws of 2015, are amended to read as follows:
   (2)  has  obtained  approval after the thirtieth day of June, nineteen
 hundred ninety-five and before the  first  day  of  July,  two  thousand
 [seventeen] TWENTY-ONE, for financing by an industrial development agen-
 cy  established  pursuant to article eighteen-A of the general municipal
 law, provided that such financing has been used in whole or in  part  to
 substantially  improve  such  building  or  structure by construction or
 renovation, that expenditures have been made for  improvements  to  such
 real  property in excess of twenty per centum of the value at which such
 real property was assessed for tax purposes for the tax  year  in  which
 such  improvements  commenced, and that such expenditures have been made
 within thirty-six months after the earlier of (i) the issuance  by  such
 agency  of  bonds for such financing, or (ii) the conveyance of title to
 such building or structure to such agency; or
   (3) is owned by the city of New York  or  the  New  York  state  urban
 development  corporation,  or  a subsidiary corporation thereof, a lease
 for which was approved in accordance with the applicable  provisions  of
 the  charter  of  such  city or by the board of directors of such corpo-
 ration, as the case may be, and such approval  was  obtained  after  the
 thirtieth day of June, nineteen hundred ninety-five and before the first
 day of July, two thousand [seventeen] TWENTY-ONE, provided that expendi-
 tures have been made for improvements to such real property in excess of
 twenty  per centum of the value at which such real property was assessed
 for tax purposes for the tax year in which such improvements  commenced,
 and that such expenditures have been made within thirty-six months after
 the effective date of such lease; or
   §  13.  Subdivision  (f)  of section 25-bb of the general city law, as
 amended by section 45 of part A of chapter 20 of the laws  of  2015,  is
 amended to read as follows:
   (f) Application and certification. An owner or lessee of a building or
 structure  located  in  an  eligible revitalization area, or an agent of
 such owner or lessee, may apply to such  department  of  small  business
 services  for certification that such building or structure is an eligi-
 ble building or targeted  eligible  building  meeting  the  criteria  of

 S. 2009--B                         138
 
 subdivision  (a)  or  (q)  of  section  twenty-five-aa  of this article.
 Application for such certification must be filed after the thirtieth day
 of June, nineteen hundred ninety-five and before a  building  permit  is
 issued  for the construction or renovation required by such subdivisions
 and before the first day of July, two thousand  [seventeen]  TWENTY-ONE,
 provided that no certification for a targeted eligible building shall be
 issued  after October thirty-first, two thousand. Such application shall
 identify expenditures to be made that will affect eligibility under such
 subdivision (a) or (q). Upon completion of such expenditures, an  appli-
 cant shall supplement such application to provide information (i) estab-
 lishing  that the criteria of such subdivision (a) or (q) have been met;
 (ii) establishing a basis for determining the amount of special rebates,
 including a basis for an allocation of the special rebate among eligible
 revitalization area energy users purchasing or otherwise receiving ener-
 gy services from an eligible redistributor  of  energy  or  a  qualified
 eligible  redistributor of energy; and (iii) supporting an allocation of
 charges for energy services between eligible charges and other  charges.
 Such  department  shall  certify  a building or structure as an eligible
 building or targeted eligible building after receipt and review of  such
 information  and  upon a determination that such information establishes
 that the building or structure qualifies  as  an  eligible  building  or
 targeted  eligible  building.  Such  department  shall mail such certif-
 ication or notice thereof to the applicant upon issuance.  Such  certif-
 ication  shall  remain  in effect provided the eligible redistributor of
 energy or qualified eligible redistributor of energy reports any changes
 that materially affect the amount of the special rebates to which it  is
 entitled  or the amount of reduction required by subdivision (c) of this
 section in an energy services bill of an  eligible  revitalization  area
 energy  user  and otherwise complies with the requirements of this arti-
 cle. Such department shall notify the private utility or public  utility
 service  required  to make a special rebate to such redistributor of the
 amount of such special rebate established at the time  of  certification
 and any changes in such amount and any suspension or termination by such
 department  of certification under this subdivision. Such department may
 require some or all of the information required as part of  an  applica-
 tion or other report be provided by a licensed engineer.
   § 14. Paragraph 1 of subdivision (i) of section 22-601 of the adminis-
 trative code of the city of New York, as amended by section 46 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (1)  Non-residential  premises  that  are wholly contained in property
 that is eligible to obtain benefits under part  four  or  part  five  of
 subchapter  two of chapter two of title eleven of this code, or would be
 eligible to receive benefits under such chapter except that such proper-
 ty is exempt from real property taxation and the requirements  of  para-
 graph  two  of  subdivision  g  of  section  11-259 of this code, or the
 requirements of subparagraph (b) of paragraph two of  subdivision  e  of
 section  11-270  of  this  code,  whichever is applicable, have not been
 satisfied, provided that application for such benefits  was  made  after
 May  third,  nineteen  hundred  eighty-five and prior to July first, two
 thousand [seventeen] TWENTY-ONE, that construction or renovation of such
 premises was described in such application, that such premises have been
 substantially improved by such construction or renovation so  described,
 that  the  minimum  required expenditure as defined in such part four or
 part five, whichever is applicable, has been made, and  that  such  real
 property is located in an eligible area; or

 S. 2009--B                         139
 
   § 15. Paragraph 3 of subdivision (i) of section 22-601 of the adminis-
 trative code of the city of New York, as amended by section 47 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (3) non-residential premises that are wholly contained in real proper-
 ty  that  has obtained approval after October thirty-first, two thousand
 and prior to July first, two thousand [seventeen] TWENTY-ONE for financ-
 ing by an industrial development agency established pursuant to  article
 eighteen-A  of  the  general municipal law, provided that such financing
 has been used in whole or in part to substantially improve such premises
 (by construction or renovation), and that expenditures  have  been  made
 for  improvements  to  such real property in excess of ten per centum of
 the value at which such real property was assessed for tax purposes  for
 the  tax  year  in which such improvements commenced, that such expendi-
 tures have been made within thirty-six months after the earlier  of  (i)
 the  issuance  by  such  agency of bonds for such financing, or (ii) the
 conveyance of title to such property to such agency, and that such  real
 property is located in an eligible area; or
   § 16. Paragraph 5 of subdivision (i) of section 22-601 of the adminis-
 trative code of the city of New York, as amended by section 48 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (5) non-residential premises that are wholly contained in real proper-
 ty  owned  by  such  city or the New York state urban development corpo-
 ration, or a subsidiary thereof, a  lease  for  which  was  approved  in
 accordance with the applicable provisions of the charter of such city or
 by  the  board  of  directors of such corporation, and such approval was
 obtained after October thirty-first, two  thousand  and  prior  to  July
 first, two thousand [seventeen] TWENTY-ONE, provided, however, that such
 premises were constructed or renovated subsequent to such approval, that
 expenditures have been made subsequent to such approval for improvements
 to  such  real property (by construction or renovation) in excess of ten
 per centum of the value at which such real property was assessed for tax
 purposes for the tax year in which  such  improvements  commenced,  that
 such  expenditures  have  been  made  within thirty-six months after the
 effective date of such lease, and that such real property is located  in
 an eligible area; or
   § 17. Paragraph 1 of subdivision (c) of section 22-602 of the adminis-
 trative code of the city of New York, as amended by section 49 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (1)  No  eligible energy user, qualified eligible energy user, on-site
 cogenerator, clean on-site cogenerator or special eligible  energy  user
 shall  receive a rebate pursuant to this chapter until it has obtained a
 certification as an eligible  energy  user,  qualified  eligible  energy
 user, on-site cogenerator, clean on-site cogenerator or special eligible
 energy  user,  respectively,  from  the  commissioner  of small business
 services. No such certification for a  qualified  eligible  energy  user
 shall  be  issued  on  or  after July first, two thousand three. No such
 certification of any other eligible energy user, on-site cogenerator  or
 clean  on-site  cogenerator  shall be issued on or after July first, two
 thousand [seventeen] TWENTY-ONE.  The  commissioner  of  small  business
 services,  after  notice  and hearing, may revoke a certification issued
 pursuant to this subdivision where it is found that eligibility criteria
 have not been met or  that  compliance  with  conditions  for  continued
 eligibility  has  not been maintained. The corporation counsel may main-
 tain a civil action to recover an amount equal to any benefits improper-
 ly obtained.

 S. 2009--B                         140
 
   § 18. Subparagraph (b-2) of paragraph 2 of subdivision  i  of  section
 11-704 of the administrative code of the city of New York, as amended by
 section  50  of  part A of chapter 20 of the laws of 2015, is amended to
 read as follows:
   (b-2)  The amount of the special reduction allowed by this subdivision
 with respect to a lease other than a sublease  commencing  between  July
 first,  two  thousand  five and June thirtieth, two thousand [seventeen]
 TWENTY-ONE with an initial or renewal lease term of at least five  years
 shall be determined as follows:
   (i)  For  the  base year the amount of such special reduction shall be
 equal to the base rent for the base year.
   (ii) For the first, second,  third  and  fourth  twelve-month  periods
 following  the  base  year the amount of such special reduction shall be
 equal to the lesser of (A) the base  rent  for  each  such  twelve-month
 period or (B) the base rent for the base year.
   § 19. Subdivision 9 of section 499-aa of the real property tax law, as
 amended  by  section  51 of part A of chapter 20 of the laws of 2015, is
 amended to read as follows:
   9. "Eligibility period." The period commencing April  first,  nineteen
 hundred  ninety-five  and  terminating  March thirty-first, two thousand
 one, provided, however, that with respect to eligible  premises  defined
 in subparagraph (i) of paragraph (b) of subdivision ten of this section,
 the  period  commencing  July  first,  two thousand and terminating June
 thirtieth, two thousand [eighteen] TWENTY-ONE,  and  provided,  further,
 however,  that with respect to eligible premises defined in subparagraph
 (ii) of paragraph (b) or  paragraph  (c)  of  subdivision  ten  of  this
 section,  the period commencing July first, two thousand five and termi-
 nating June thirtieth, two thousand [eighteen] TWENTY-ONE.
   § 20. Subparagraph (iii) of paragraph (a) of subdivision 3 of  section
 499-cc  of the real property tax law, as amended by section 52 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (iii) With respect to the eligible premises  defined  in  subparagraph
 (ii)  of  paragraph  (b)  or paragraph (c) of subdivision ten of section
 four hundred ninety-nine-aa of this title and for purposes of  determin-
 ing  whether  the  amount of expenditures required by subdivision one of
 this section have been satisfied, expenditures on  improvements  to  the
 common  areas  of an eligible building shall be included only if work on
 such improvements commenced and the expenditures are made  on  or  after
 July  first,  two  thousand five and on or before December thirty-first,
 two thousand [eighteen] TWENTY-ONE; provided, however, that expenditures
 on improvements to the common areas of an eligible building  made  prior
 to three years before the lease commencement date shall not be included.
   §  21.  Subdivisions 5 and 9 of section 499-a of the real property tax
 law, as amended by section 53 of part A of chapter 20  of  the  laws  of
 2015, are amended to read as follows:
   5.  "Benefit  period." The period commencing with the first day of the
 month immediately following the rent commencement date  and  terminating
 no  later  than  sixty  months  thereafter, provided, however, that with
 respect to a lease commencing on or after April first, nineteen  hundred
 ninety-seven with an initial lease term of less than five years, but not
 less  than  three years, the period commencing with the first day of the
 month immediately following the rent commencement date  and  terminating
 no  later than thirty-six months thereafter. Notwithstanding the forego-
 ing sentence, a benefit period shall expire no later than March  thirty-
 first, two thousand [twenty-four] TWENTY-SEVEN.

 S. 2009--B                         141
 
   9.  "Eligibility  period." The period commencing April first, nineteen
 hundred ninety-five and terminating  March  thirty-first,  two  thousand
 [eighteen] TWENTY-ONE.
   §  22.  paragraph  (a)  of  subdivision 3 of section 449-c of the real
 property tax law, as amended by section 54 of part A of  chapter  20  of
 the laws of 2015, is amended to read as follows:
   (a)  For  purposes  of  determining whether the amount of expenditures
 required by subdivision one of this section have been satisfied, expend-
 itures on improvements to the common areas of an eligible building shall
 be included only if work on such improvements commenced and the expendi-
 tures are made on or after April first, nineteen hundred ninety-five and
 on or before September thirtieth, two  thousand  [eighteen]  TWENTY-ONE;
 provided, however, that expenditures on improvements to the common areas
 of  an  eligible  building  made  prior  to three years before the lease
 commencement date shall not be included.
   § 23. Subdivision 8 of section 499-d of the real property tax law,  as
 amended  by  section  55 of part A of chapter 20 of the laws of 2015, is
 amended to read as follows:
   8. Leases commencing on or after April first, nineteen  hundred  nine-
 ty-seven  shall be subject to the provisions of this title as amended by
 chapter six hundred twenty-nine of the laws of nineteen hundred  ninety-
 seven,  chapter  one  hundred  eighteen of the laws of two thousand one,
 chapter four hundred forty of the laws of two  thousand  three,  chapter
 sixty  of the laws of two thousand seven, chapter twenty-two of the laws
 of two thousand ten, chapter fifty-nine of  the  laws  of  two  thousand
 fourteen,  CHAPTER  TWENTY  OF  THE LAWS OF TWO THOUSAND FIFTEEN and the
 chapter of the laws of two thousand [fifteen] SEVENTEEN that added  this
 phrase. Notwithstanding any other provision of law to the contrary, with
 respect  to  leases commencing on or after April first, nineteen hundred
 ninety-seven, an application for a certificate  of  abatement  shall  be
 considered  timely filed if filed within one hundred eighty days follow-
 ing the lease commencement date or within sixty days following the  date
 chapter  six hundred twenty-nine of the laws of nineteen hundred ninety-
 seven became a law, whichever is later.
   § 24. Subparagraph (a) of paragraph 2  of  subdivision  i  of  section
 11-704 of the administrative code of the city of New York, as amended by
 section  56  of  part A of chapter 20 of the laws of 2015, is amended to
 read as follows:
   (a) An eligible tenant of eligible taxable premises shall be allowed a
 special reduction in determining the taxable base rent for such eligible
 taxable premises. Such special reduction shall be allowed  with  respect
 to  the rent for such eligible taxable premises for a period not exceed-
 ing sixty months or, with respect to a  lease  commencing  on  or  after
 April first, nineteen hundred ninety-seven with an initial lease term of
 less  than  five  years, but not less than three years, for a period not
 exceeding thirty-six months, commencing on the  rent  commencement  date
 applicable to such eligible taxable premises, provided, however, that in
 no event shall any special reduction be allowed for any period beginning
 after  March thirty-first, two thousand [twenty-four] TWENTY-SEVEN.  For
 purposes of applying such special reduction, the base rent for the  base
 year  shall,  where  necessary  to  determine  the amount of the special
 reduction allowable with respect to any number of months falling  within
 a tax period, be prorated by dividing the base rent for the base year by
 twelve and multiplying the result by such number of months.

 S. 2009--B                         142
 
   § 25. Paragraph (a) of subdivision 1 of section 489-dddddd of the real
 property  tax  law,  as amended by section 57 of part A of chapter 20 of
 the laws of 2015, is amended to read as follows:
   (a)  Application for benefits pursuant to this title may be made imme-
 diately following the effective date of a local law enacted pursuant  to
 this  title  and  continuing  until March first, two thousand [nineteen]
 TWENTY-ONE.
   § 26. Subdivision 3 of section 489-dddddd of  the  real  property  tax
 law,  as  amended  by  section 58 of part A of chapter 20 of the laws of
 2015, is amended to read as follows:
   3. (a) No benefits  pursuant  to  this  title  shall  be  granted  for
 construction  work  performed pursuant to a building permit issued after
 April first, two thousand [nineteen] TWENTY-ONE.
   (b) If no building permit was required, then no benefits  pursuant  to
 this  title  shall  be  granted  for construction work that is commenced
 after April first, two thousand [nineteen] TWENTY-ONE.
   § 27. Paragraph 1 of subdivision a of section 11-271 of  the  adminis-
 trative code of the city of New York, as amended by section 59 of part A
 of chapter 20 of the laws of 2015, is amended to read as follows:
   (1)  Application  for benefits pursuant to this part may be made imme-
 diately following the effective date of the local law  that  added  this
 section  and continuing until March first, two thousand [nineteen] TWEN-
 TY-ONE.
   § 28. Subdivision c of section 11-271 of the  administrative  code  of
 the  city  of New York, as amended by section 60 of part A of chapter 20
 of the laws of 2015, is amended to read as follows:
   c. (1) No  benefits  pursuant  to  this  part  shall  be  granted  for
 construction  work  performed pursuant to a building permit issued after
 April first, two thousand [nineteen] TWENTY-ONE.
   (2) If no building permit was required, then no benefits  pursuant  to
 this part shall be granted for construction work that is commenced after
 April first, two thousand [nineteen] TWENTY-ONE.
   §  28-a. Subparagraph (A) of paragraph 2 of subdivision (f) of section
 11-1706 of the administrative code of the city of New York,  as  amended
 by  section 60-a of part A of chapter 20 of the laws of 2015, is amended
 to read as follows:
   (A) Subject to the limitations set forth in subparagraphs (B) and  (C)
 of  this  paragraph, the credit allowed to a taxpayer for a taxable year
 under this subdivision shall be determined as follows:
   (i) For taxable years beginning on or after January first,  two  thou-
 sand fourteen and before July first, two thousand [nineteen] TWENTY-ONE:
   (I)  If  the  city  taxable  income is thirty-five thousand dollars or
 less, the amount of the credit shall  be  one  hundred  percent  of  the
 amount determined in paragraph three of this subdivision.
   (II)  If  the city taxable income is greater than thirty-five thousand
 dollars but less than one hundred thousand dollars, the  amount  of  the
 credit shall be a percentage of the amount determined in paragraph three
 of  this  subdivision,  such  percentage to be determined by subtracting
 from one hundred percent, a percentage determined by  subtracting  thir-
 ty-five  thousand  dollars from city taxable income, dividing the result
 by sixty-five thousand dollars and multiplying by one hundred percent.
   (III) If the city taxable income is one hundred  thousand  dollars  or
 greater, no credit shall be allowed.
   (IV)  Provided  further  that  for  any taxable year of a taxpayer for
 which this credit is effective that  encompasses  days  occurring  after
 June  thirtieth,  two  thousand [nineteen] TWENTY-ONE, the amount of the

 S. 2009--B                         143
 
 credit determined in item (I) or (II) of this clause shall be multiplied
 by a fraction, the numerator of which is  the  number  of  days  in  the
 taxpayer's taxable year occurring on or before June thirtieth, two thou-
 sand  [nineteen]  TWENTY-ONE, and the denominator of which is the number
 of days in the taxpayer's taxable year.
   § 29. The opening paragraph of subparagraph  (B)  of  paragraph  2  of
 subdivision  (b)  of  section 1402 of the tax law, as amended by chapter
 500 of the laws of 2014, is amended to read as follows:
   For purposes of this subdivision, the phrase "real  estate  investment
 trust  transfer" shall mean any conveyance of real property or an inter-
 est therein to a REIT, or to a partnership or  corporation  in  which  a
 REIT  owns  a controlling interest immediately following the conveyance,
 which conveyance (I) occurs in connection with the initial formation  of
 the REIT, provided that the conditions set forth in clauses (i) and (ii)
 of  this  subparagraph  are  satisfied,  or (II) in the case of any real
 estate investment trust transfer occurring on or after July  thirteenth,
 nineteen  hundred  ninety-six  and  before September first, two thousand
 [seventeen] TWENTY-ONE, is  described  in  the  last  sentence  of  this
 subparagraph.
   § 29-a. Subparagraph 2 of paragraph (xi) of subdivision (b) of section
 1201  of  the tax law, as amended by chapter 500 of the laws of 2014, is
 amended to read as follows:
   (2) any issuance or transfer of an interest in a REIT, or in  a  part-
 nership or corporation in which a REIT owns a controlling interest imme-
 diately  following the issuance or transfer, in connection with a trans-
 action described in subparagraph one of this paragraph.  Notwithstanding
 the foregoing, a transaction described in the preceding  sentence  shall
 not  constitute  a  real  estate investment trust transfer unless (A) it
 occurs in connection with the initial formation  of  the  REIT  and  the
 conditions  described  in subparagraphs three and four of this paragraph
 are satisfied, or (B) in the case of any real  estate  investment  trust
 transfer  occurring  on or after July thirteenth, nineteen hundred nine-
 ty-six and before September first, two thousand [seventeen]  TWENTY-ONE,
 the  transaction  is described in subparagraph five of this paragraph in
 which case the provisions of such subparagraph shall apply.
   § 29-b. Subparagraph (B) of paragraph 2 of subdivision  e  of  section
 11-2102  of  the administrative code of the city of New York, as amended
 by chapter 500 of the laws of 2014, is amended to read as follows:
   (B) any issuance or transfer of an interest in a REIT, or in  a  part-
 nership or corporation in which a REIT owns a controlling interest imme-
 diately  following  the issuance or transfer in connection with a trans-
 action described in subparagraph (A) of this paragraph.  Notwithstanding
 the foregoing, a transaction described in the preceding  sentence  shall
 not  constitute  a  real  estate investment trust transfer unless (i) it
 occurs in connection with the initial formation  of  the  REIT  and  the
 conditions  described in subparagraphs (C) and (D) of this paragraph are
 satisfied, or (ii) in the case  of  any  real  estate  investment  trust
 transfer  occurring  on or after July thirteenth, nineteen hundred nine-
 ty-six and before September first, two thousand [seventeen]  TWENTY-ONE,
 the  transaction  is  described in subparagraph (E) of this paragraph in
 which case the provision of such subparagraph shall apply.
   § 30. This act shall take effect immediately.
 
                                 PART YYY

 S. 2009--B                         144
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "education affordability act".
   §  2.    The  tax law is amended by adding a new section 43 to read as
 follows:
   § 43. EDUCATION AFFORDABILITY TAX CREDIT.   (A) DEFINITIONS.  FOR  THE
 PURPOSES  OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE SAME DEFI-
 NITION AS PROVIDED FOR IN ARTICLE TWENTY-FIVE OF THE EDUCATION LAW:
   "AUTHORIZED CONTRIBUTION";
   "CONTRIBUTION";
   "EDUCATIONAL PROGRAM";
   "EDUCATIONAL SCHOLARSHIP ORGANIZATION";
   "ELIGIBLE PUPIL";
   "LOCAL EDUCATION FUND";
   "NONPUBLIC SCHOOL";
   "PUBLIC EDUCATION ENTITY";
   "PUBLIC SCHOOL";
   "QUALIFIED CONTRIBUTION";
   "QUALIFIED EDUCATOR";
   "QUALIFIED SCHOOL";
   "SCHOLARSHIP"; AND
   "SCHOOL IMPROVEMENT ORGANIZATION".
   (B) ALLOWANCE OF CREDIT. A  TAXPAYER  SUBJECT  TO  TAX  UNDER  ARTICLE
 NINE-A  OR  TWENTY-TWO  OF  THIS CHAPTER SHALL BE ALLOWED CREDIT AGAINST
 SUCH TAX, PURSUANT TO THE PROVISIONS REFERENCED IN  SUBDIVISION  (L)  OF
 THIS  SECTION,  WITH  RESPECT TO QUALIFIED CONTRIBUTIONS MADE DURING THE
 TAXABLE YEAR.
   (C) AMOUNT OF CREDIT.  FOR  TAXPAYERS  WHOSE  FEDERAL  ADJUSTED  GROSS
 INCOME  IS LESS THAN THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
 DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
 AMOUNT OF THE CREDIT SHALL BE NINETY PERCENT  OF  THE  TAXPAYER'S  TOTAL
 QUALIFIED  CONTRIBUTIONS,  CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
 DOLLARS. FOR TAXPAYERS WHOSE FEDERAL ADJUSTED GROSS  INCOME  IS  GREATER
 THAN  OR  EQUAL  TO  THREE HUNDRED THOUSAND DOLLARS FOR THE TAXABLE YEAR
 DURING WHICH SUCH TAXPAYER MADE AT LEAST ONE QUALIFIED CONTRIBUTION, THE
 AMOUNT OF CREDIT SHALL BE SEVENTY-FIVE PERCENT OF THE  TAXPAYER'S  TOTAL
 QUALIFIED  CONTRIBUTIONS,  CAPPED AT EIGHT HUNDRED SEVENTY-FIVE THOUSAND
 DOLLARS.  A TAXPAYER THAT IS A PARTNER IN A  PARTNERSHIP,  MEMBER  OF  A
 LIMITED  LIABILITY  COMPANY  OR SHAREHOLDER IN AN S CORPORATION SHALL BE
 ALLOWED TO CLAIM ITS PRO RATA SHARE OF THE CREDIT EARNED BY THE PARTNER-
 SHIP, LIMITED LIABILITY COMPANY OR S CORPORATION, PROVIDED THAT  SUCH  A
 TAXPAYER  SHALL NOT CLAIM CREDIT IN EXCESS OF EIGHT HUNDRED SEVENTY-FIVE
 THOUSAND DOLLARS.
   (D) INFORMATION TO BE POSTED ON THE DEPARTMENT'S WEBSITE.  THE COMMIS-
 SIONER SHALL MAINTAIN ON THE DEPARTMENT'S WEBSITE A RUNNING TOTAL OF THE
 AMOUNT OF AVAILABLE CREDIT FOR WHICH TAXPAYERS  MAY  APPLY  PURSUANT  TO
 THIS  SECTION.    SUCH  RUNNING TOTAL SHALL BE UPDATED ON A DAILY BASIS.
 ADDITIONALLY,  THE  COMMISSIONER  SHALL  MAINTAIN  ON  THE  DEPARTMENT'S
 WEBSITE  A LIST OF THE SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
 FUNDS  AND  EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  APPROVED  TO  ISSUE
 CERTIFICATES OF RECEIPT PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION
 LAW.  THE COMMISSIONER SHALL ALSO MAINTAIN ON THE DEPARTMENT'S WEBSITE A
 LIST  OF  PUBLIC  EDUCATION  ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
 LOCAL EDUCATION FUNDS AND EDUCATIONAL  SCHOLARSHIP  ORGANIZATIONS  WHOSE
 APPROVAL  TO  ISSUE  CERTIFICATES OF RECEIPT HAS BEEN REVOKED ALONG WITH
 THE DATE OF REVOCATION.

 S. 2009--B                         145
 
   (E) APPLICATIONS FOR CONTRIBUTION AUTHORIZATION CERTIFICATES. PRIOR TO
 MAKING A CONTRIBUTION TO A PUBLIC EDUCATION ENTITY,  SCHOOL  IMPROVEMENT
 ORGANIZATION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZA-
 TION,  THE  TAXPAYER  SHALL  APPLY  TO THE DEPARTMENT FOR A CONTRIBUTION
 AUTHORIZATION  CERTIFICATE FOR SUCH CONTRIBUTION. SUCH APPLICATION SHALL
 BE IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.  THE  DEPARTMENT
 MAY  ALLOW  TAXPAYERS  TO  MAKE  MULTIPLE APPLICATIONS ON THE SAME FORM,
 PROVIDED THAT EACH CONTRIBUTION LISTED  ON  SUCH  APPLICATION  SHALL  BE
 TREATED  AS  A  SEPARATE APPLICATION AND THAT THE DEPARTMENT SHALL ISSUE
 SEPARATE CONTRIBUTION AUTHORIZATION CERTIFICATES FOR EACH SUCH  APPLICA-
 TION.
   (F)  CONTRIBUTION  AUTHORIZATION CERTIFICATES. 1.  ISSUANCE OF CERTIF-
 ICATES.  THE COMMISSIONER SHALL ISSUE CONTRIBUTION AUTHORIZATION CERTIF-
 ICATES IN TWO PHASES. IN PHASE ONE, WHICH BEGINS ON  THE  FIRST  DAY  OF
 JANUARY  AND  ENDS  ON THE THIRTY-FIRST DAY OF JANUARY, THE COMMISSIONER
 SHALL ACCEPT APPLICATIONS FOR CONTRIBUTION  AUTHORIZATION  CERTIFICATES.
 COMMENCING AFTER THE FIFTH DAY OF FEBRUARY, THE COMMISSIONER SHALL ISSUE
 CONTRIBUTION AUTHORIZATION CERTIFICATES FOR APPLICATIONS RECEIVED DURING
 PHASE ONE, PROVIDED THAT IF THE AGGREGATE TOTAL OF THE CONTRIBUTIONS FOR
 WHICH  APPLICATIONS  HAVE  BEEN  RECEIVED  DURING  PHASE ONE EXCEEDS THE
 AMOUNT OF THE CREDIT CAP IN SUBDIVISION (H) OF THIS SECTION, THEN  PHASE
 ONE  OF  THE  CREDIT CAP APPLICATION SHALL BE ALLOCATED IN TWO STEPS. IN
 STEP ONE, THE ALLOCATION SHALL EQUAL THE CONTRIBUTION CAP DIVIDED BY THE
 TOTAL NUMBER OF APPLICATIONS FOR  CONTRIBUTIONS,  ROUNDED  DOWN  TO  THE
 NEAREST  CENT.  EACH APPLICATION REQUESTING AN AMOUNT WHICH IS LESS THAN
 OR EQUAL TO THE ALLOCATION IN STEP ONE SHALL RECEIVE THE AMOUNT ON THEIR
 APPLICATION FOR CONTRIBUTION AND THE DIFFERENCE, WHICH SHALL BE REFERRED
 TO AS "EXCESS DISTRIBUTIONS" FOR THE PURPOSES OF THIS SUBDIVISION, SHALL
 BE AVAILABLE FOR ALLOCATION IN STEP TWO. EACH APPLICATION REQUESTING  AN
 AMOUNT WHICH EXCEEDS THE ALLOCATION IN STEP ONE SHALL BE ALLOCATED CRED-
 ITS  IN  STEP  TWO. IN STEP TWO, IF EXCESS DISTRIBUTIONS EQUAL ZERO THEN
 EACH APPLICATION SHALL RECEIVE THE  ALLOCATION  AMOUNT  FROM  STEP  ONE,
 OTHERWISE  EACH  APPLICATION SHALL RECEIVE AN AMOUNT EQUAL TO THE SUM OF
 THE (I) THE ALLOCATION AMOUNT IN STEP ONE AND (II) A PRO RATA  SHARE  OF
 AGGREGATE  EXCESS  DISTRIBUTIONS  BASED  ON  THE  DIFFERENCE BETWEEN THE
 AMOUNT ON THEIR APPLICATION FOR CONTRIBUTION AND THE ALLOCATION IN  STEP
 ONE.  FOR THE PURPOSES OF THIS SUBDIVISION, MULTIPLE APPLICATIONS BY THE
 SAME TAXPAYER SHALL BE TREATED AS ONE APPLICATION. IF THE CREDIT CAP  IS
 NOT  EXCEEDED,  PHASE  TWO  COMMENCES  ON FEBRUARY TWENTIETH AND ENDS ON
 OCTOBER THIRTY-FIRST. DURING PHASE  TWO  THE  COMMISSIONER  SHALL  ISSUE
 CONTRIBUTION  AUTHORIZATION  CERTIFICATES  ON  A  FIRST-COME FIRST SERVE
 BASIS BASED UPON THE DATE THE DEPARTMENT RECEIVED THE TAXPAYER'S  APPLI-
 CATION  FOR  SUCH CERTIFICATE.   CONTRIBUTION AUTHORIZATION CERTIFICATES
 FOR APPLICATIONS RECEIVED DURING PHASE ONE SHALL BE MAILED NO LATER THAN
 THE TWENTIETH DAY OF FEBRUARY. CONTRIBUTION  AUTHORIZATION  CERTIFICATES
 FOR  APPLICATIONS  RECEIVED DURING PHASE TWO SHALL BE MAILED WITHIN FIVE
 DAYS OF RECEIPT OF SUCH APPLICATIONS.
   2. CONTRIBUTION AUTHORIZATION CERTIFICATE CONTENTS. EACH  CONTRIBUTION
 AUTHORIZATION  CERTIFICATE SHALL STATE (I) THE DATE SUCH CERTIFICATE WAS
 ISSUED, (II) THE DATE BY WHICH THE AUTHORIZED CONTRIBUTION LISTED ON THE
 CERTIFICATE MUST BE MADE, WHICH SHALL BE NO LATER THAN DECEMBER  THIRTY-
 FIRST  OF  THE YEAR FOR WHICH THE CONTRIBUTION AUTHORIZATION CERTIFICATE
 WAS ISSUED, (III)  THE  AMOUNT  OF  AUTHORIZED  CONTRIBUTION,  (IV)  THE
 CERTIFICATE  NUMBER,  (V) THE TAXPAYER'S NAME AND ADDRESS, (VI) THE NAME
 AND ADDRESS OF THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZA-
 TION, LOCAL EDUCATION FUND OR EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  TO

 S. 2009--B                         146
 
 WHICH  THE  TAXPAYER MAY MAKE THE AUTHORIZED CONTRIBUTION, AND (VII) ANY
 OTHER INFORMATION THAT THE COMMISSIONER DEEMS NECESSARY.
   3.  NOTIFICATION  OF  THE  ISSUANCE  OF  A  CONTRIBUTION AUTHORIZATION
 CERTIFICATE. UPON THE ISSUANCE OF A CONTRIBUTION  AUTHORIZATION  CERTIF-
 ICATE  TO A TAXPAYER, THE COMMISSIONER SHALL NOTIFY THE PUBLIC EDUCATION
 ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND OR  EDUCA-
 TIONAL  SCHOLARSHIP  ORGANIZATION  OF  THE ISSUANCE OF SUCH CONTRIBUTION
 AUTHORIZATION CERTIFICATE.  SUCH  NOTIFICATION  SHALL  INCLUDE  (I)  THE
 TAXPAYER'S  NAME AND ADDRESS, (II) THE DATE SUCH CERTIFICATE WAS ISSUED,
 (III) THE DATE BY  WHICH  THE  AUTHORIZED  CONTRIBUTION  LISTED  IN  THE
 NOTIFICATION  MUST  BE  MADE  BY  THE  TAXPAYER,  (IV) THE AMOUNT OF THE
 AUTHORIZED CONTRIBUTION,  (V)  THE  CONTRIBUTION  AUTHORIZATION  CERTIF-
 ICATE'S  CERTIFICATE  NUMBER,  AND  (VI)  ANY OTHER INFORMATION THAT THE
 COMMISSIONER DEEMS NECESSARY.
   (G) CERTIFICATE OF RECEIPT. 1. IN GENERAL. NO PUBLIC EDUCATION ENTITY,
 SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION  SHALL  ISSUE A CERTIFICATE OF RECEIPT FOR ANY
 CONTRIBUTION MADE BY A TAXPAYER UNLESS  SUCH  PUBLIC  EDUCATION  ENTITY,
 SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL EDUCATION FUND, OR EDUCATIONAL
 SCHOLARSHIP ORGANIZATION HAS BEEN  APPROVED  TO  ISSUE  CERTIFICATES  OF
 RECEIPT  PURSUANT TO ARTICLE TWENTY-FIVE OF THE EDUCATION LAW. NO PUBLIC
 EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION FUND,
 OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL  ISSUE  A  CERTIFICATE  OF
 RECEIPT  FOR A CONTRIBUTION MADE BY A TAXPAYER UNLESS SUCH PUBLIC EDUCA-
 TION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR
 EDUCATIONAL  SCHOLARSHIP  ORGANIZATION  HAS  RECEIVED  NOTICE  FROM  THE
 DEPARTMENT THAT  THE  DEPARTMENT  ISSUED  A  CONTRIBUTION  AUTHORIZATION
 CERTIFICATE TO THE TAXPAYER FOR SUCH CONTRIBUTION.
   2. TIMELY CONTRIBUTION. IF A TAXPAYER MAKES AN AUTHORIZED CONTRIBUTION
 TO  THE  PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION, LOCAL
 EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SET FORTH ON THE
 CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE TAXPAYER  NO  LATER
 THAN  THE  DATE  BY WHICH SUCH AUTHORIZED CONTRIBUTION IS REQUIRED TO BE
 MADE, SUCH PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT  ORGANIZATION,
 LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL,
 WITHIN THIRTY DAYS OF RECEIPT OF THE AUTHORIZED CONTRIBUTION,  ISSUE  TO
 THE  TAXPAYER  A  CERTIFICATE OF RECEIPT; PROVIDED, HOWEVER, THAT IF THE
 TAXPAYER CONTRIBUTES AN AMOUNT THAT IS LESS THAN THE  AMOUNT  LISTED  ON
 THE  TAXPAYER'S  CONTRIBUTION  AUTHORIZATION  CERTIFICATE,  THE TAXPAYER
 SHALL NOT BE ISSUED A CERTIFICATE OF RECEIPT FOR SUCH CONTRIBUTION.
   3. CERTIFICATE OF RECEIPT CONTENTS. EACH CERTIFICATE OF RECEIPT  SHALL
 STATE  (I)  THE NAME AND ADDRESS OF THE ISSUING PUBLIC EDUCATION ENTITY,
 SCHOOL IMPROVEMENT ORGANIZATION, LOCAL EDUCATION  FUND,  OR  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATION,  (II)  THE TAXPAYER'S NAME AND ADDRESS, (III)
 THE DATE FOR EACH CONTRIBUTION, (IV) THE AMOUNT OF EACH CONTRIBUTION AND
 THE CORRESPONDING CONTRIBUTION AUTHORIZATION CERTIFICATE NUMBER, (V) THE
 TOTAL AMOUNT OF CONTRIBUTIONS, (VI) CERTIFICATE OF  RECEIPT  NUMBER  AND
 (VII) ANY OTHER INFORMATION THAT THE COMMISSIONER MAY DEEM NECESSARY.
   4. NOTIFICATION TO THE DEPARTMENT FOR THE ISSUANCE OF A CERTIFICATE OF
 RECEIPT.  UPON  THE  ISSUANCE  OF  A CERTIFICATE OF RECEIPT, THE ISSUING
 PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT ORGANIZATION,  LOCAL  EDUCA-
 TION  FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION SHALL, WITHIN THIRTY
 DAYS OF ISSUING THE CERTIFICATE OF RECEIPT, PROVIDE THE DEPARTMENT  WITH
 NOTIFICATION  OF THE ISSUANCE OF SUCH CERTIFICATE IN THE FORM AND MANNER
 PRESCRIBED BY THE DEPARTMENT.

 S. 2009--B                         147
 
   5. NOTIFICATION TO THE DEPARTMENT OF THE NON-ISSUANCE OF A CERTIFICATE
 OF RECEIPT. EACH PUBLIC EDUCATION ENTITY, SCHOOL  IMPROVEMENT  ORGANIZA-
 TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
 RECEIVED NOTIFICATION FROM THE DEPARTMENT PURSUANT TO SUBDIVISION (F) OF
 THIS  SECTION  REGARDING  THE  ISSUANCE  OF A CONTRIBUTION AUTHORIZATION
 CERTIFICATE TO A TAXPAYER SHALL, WITHIN THIRTY DAYS  OF  THE  EXPIRATION
 DATE  FOR  SUCH  AUTHORIZED  CONTRIBUTION,  PROVIDE  NOTIFICATION TO THE
 DEPARTMENT FOR EACH TAXPAYER THAT FAILED TO MAKE THE AUTHORIZED CONTRIB-
 UTION TO SUCH PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZATION,
 LOCAL  EDUCATION  FUND,  OR  EDUCATIONAL SCHOLARSHIP ORGANIZATION IN THE
 FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
   6. FAILURE TO NOTIFY THE DEPARTMENT. WITHIN THIRTY DAYS OF THE DISCOV-
 ERY OF THE FAILURE OF ANY PUBLIC EDUCATION  ENTITY,  SCHOOL  IMPROVEMENT
 PROGRAM,  LOCAL  EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION
 TO COMPLY WITH THE NOTIFICATION REQUIREMENTS  PRESCRIBED  BY  PARAGRAPHS
 FOUR AND FIVE OF THIS SUBDIVISION, THE COMMISSIONER SHALL ISSUE A NOTICE
 OF  COMPLIANCE  FAILURE  TO SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION.
 SUCH ENTITY, PROGRAM, FUND, OR ORGANIZATION SHALL HAVE THIRTY DAYS  FROM
 THE  DATE  OF  SUCH NOTICE TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARA-
 GRAPHS FOUR AND FIVE OF THIS SUBDIVISION. SUCH PERIOD  MAY  BE  EXTENDED
 FOR  AN  ADDITIONAL THIRTY DAYS UPON THE REQUEST OF THE ENTITY, PROGRAM,
 FUND, OR ORGANIZATION. UPON THE EXPIRATION OF PERIOD FOR COMPLIANCE  SET
 FORTH IN THE NOTICE PRESCRIBED BY THIS PARAGRAPH, THE COMMISSIONER SHALL
 NOTIFY THE COMMISSIONER OF EDUCATION THAT SUCH ENTITY, PROGRAM, FUND, OR
 ORGANIZATION  FAILED  TO MAKE THE NOTIFICATIONS PRESCRIBED BY PARAGRAPHS
 FOUR AND FIVE OF THIS SUBDIVISION.
   (H) CREDIT CAP. THE  MAXIMUM  PERMITTED  CREDITS  UNDER  THIS  SECTION
 AVAILABLE TO ALL TAXPAYERS FOR QUALIFIED CONTRIBUTIONS FOR CALENDAR YEAR
 TWO  THOUSAND  EIGHTEEN  SHALL  BE ONE HUNDRED FIFTY MILLION DOLLARS. IN
 CALENDAR YEAR TWO THOUSAND NINETEEN, THE MAXIMUM PERMITTED CREDITS UNDER
 THIS SECTION AVAILABLE TO ALL TAXPAYERS SHALL BE TWO HUNDRED TWENTY-FIVE
 MILLION DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE  ADDED  TO  THE
 CAP  PURSUANT TO SUBDIVISION (I) OF THIS SECTION.  FOR CALENDAR YEAR TWO
 THOUSAND TWENTY AND EACH CALENDAR YEAR THEREAFTER, THE MAXIMUM PERMITTED
 CREDITS AVAILABLE TO  ALL  TAXPAYERS  SHALL  BE  THREE  HUNDRED  MILLION
 DOLLARS PLUS ANY AMOUNTS THAT ARE REQUIRED TO BE ADDED TO THE CAP PURSU-
 ANT  TO  SUBDIVISION (I) OF THIS SECTION.  THE MAXIMUM PERMITTED CREDITS
 UNDER THIS SECTION FOR QUALIFIED CONTRIBUTIONS SHALL BE ALLOCATED  FIFTY
 PERCENT  TO PUBLIC EDUCATION ENTITIES, SCHOOL IMPROVEMENT ORGANIZATIONS,
 AND LOCAL EDUCATION FUNDS AND FIFTY PERCENT TO  EDUCATIONAL  SCHOLARSHIP
 ORGANIZATIONS.
   (I)  ADDITIONS  TO  CREDIT CAP. UNISSUED CERTIFICATES OF RECEIPT.  ANY
 AMOUNTS FOR WHICH THE DEPARTMENT RECEIVES NOTIFICATION  OF  NON-ISSUANCE
 OF  A  CERTIFICATE  OF  RECEIPT  SHALL BE ADDED TO THE CAP PRESCRIBED IN
 SUBDIVISION (H) OF THIS SECTION FOR THE IMMEDIATELY FOLLOWING YEAR.
   (J) REGULATIONS. THE COMMISSIONER IS HEREBY AUTHORIZED  TO  PROMULGATE
 AND  ADOPT ON AN EMERGENCY BASIS REGULATIONS NECESSARY FOR THE IMPLEMEN-
 TATION OF THIS SECTION.
   (K) WRITTEN REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR EACH  CALEN-
 DAR  YEAR,  FOR THE IMMEDIATELY PRECEDING YEAR, THE COMMISSIONER AND THE
 COMMISSIONER OF EDUCATION SHALL JOINTLY SUBMIT A WRITTEN REPORT  TO  THE
 GOVERNOR,  THE  TEMPORARY  PRESIDENT  OF  THE SENATE, THE SPEAKER OF THE
 ASSEMBLY, THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE AND THE  CHAIRMAN
 OF THE ASSEMBLY WAYS AND MEANS COMMITTEE REGARDING THE EDUCATION AFFORD-
 ABILITY  TAX  CREDIT. SUCH REPORT SHALL CONTAIN INFORMATION FOR ARTICLES
 NINE-A AND TWENTY-TWO, RESPECTIVELY, REGARDING: (I) THE NUMBER OF APPLI-

 S. 2009--B                         148

 CATIONS RECEIVED; (II) THE NUMBER OF AND AGGREGATE VALUE OF THE CONTRIB-
 UTION AUTHORIZATION CERTIFICATES  ISSUED  FOR  CONTRIBUTIONS  TO  PUBLIC
 EDUCATION  ENTITIES,  SCHOOL  IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION
 FUNDS,  AND SCHOLARSHIP ORGANIZATIONS, RESPECTIVELY; (III) THE GEOGRAPH-
 ICAL DISTRIBUTION BY COUNTY OF (A)  THE  APPLICATIONS  FOR  CONTRIBUTION
 AUTHORIZATION  CERTIFICATES,  DISTRIBUTION  BY  COUNTY OF (B) THE PUBLIC
 EDUCATION ENTITIES, SCHOOL IMPROVEMENT  ORGANIZATIONS,  LOCAL  EDUCATION
 FUNDS,  AND  EDUCATIONAL  SCHOLARSHIP ORGANIZATIONS LISTED ON THE ISSUED
 CONTRIBUTION AUTHORIZATION CERTIFICATES; AND (IV) INFORMATION, INCLUDING
 GEOGRAPHICAL DISTRIBUTION BY COUNTY, OF THE NUMBER  OF  ELIGIBLE  PUPILS
 THAT  RECEIVED SCHOLARSHIPS, THE NUMBER OF QUALIFIED SCHOOLS ATTENDED BY
 ELIGIBLE PUPILS THAT RECEIVED SUCH SCHOLARSHIPS, AND THE  AVERAGE  VALUE
 OF  SCHOLARSHIPS  RECEIVED BY SUCH ELIGIBLE PUPILS. THE COMMISSIONER AND
 DESIGNATED EMPLOYEES OF THE DEPARTMENT, THE  COMMISSIONER  OF  EDUCATION
 AND  DESIGNATED  EMPLOYEES  OF  THE STATE EDUCATION DEPARTMENT, SHALL BE
 ALLOWED AND ARE DIRECTED TO SHARE AND EXCHANGE INFORMATION REGARDING THE
 SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS AND  EDUCATIONAL
 SCHOLARSHIP  ORGANIZATIONS THAT APPLIED FOR APPROVAL TO BE AUTHORIZED TO
 RECEIVE QUALIFIED CONTRIBUTIONS;  AND  THE  PUBLIC  EDUCATION  ENTITIES,
 SCHOOL IMPROVEMENT ORGANIZATIONS, LOCAL EDUCATION FUNDS, AND EDUCATIONAL
 SCHOLARSHIP  ORGANIZATIONS  AUTHORIZED TO ISSUE CERTIFICATES OF RECEIPT,
 INCLUDING INFORMATION CONTAINED IN OR DERIVED FROM APPLICATION FORMS AND
 REPORTS SUBMITTED TO THE COMMISSIONER OF EDUCATION.
   (L) CROSS REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   1. ARTICLE 9-A: SECTION 210-B; SUBDIVISION 49;
   2. ARTICLE 22: SECTION 606; SUBSECTIONS (I) AND (CCC).
   §  3.  Paragraph (b) of subdivision 9 of section 208 of the tax law is
 amended by adding a new subparagraph 22 to read as follows:
   (22) THE AMOUNT OF ANY  DEDUCTION  ALLOWED  PURSUANT  TO  SECTION  ONE
 HUNDRED  SEVENTY  OF  THE  INTERNAL  REVENUE  CODE FOR WHICH A CREDIT IS
 CLAIMED PURSUANT TO SUBDIVISION FORTY-NINE OF SECTION TWO HUNDRED  TEN-B
 OF THIS ARTICLE.
   §  4. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:
   49. EDUCATION AFFORDABILITY TAX CREDIT. (A)  ALLOWANCE  OF  CREDIT.  A
 TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN
 SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE.
   (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR THAT YEAR TO LESS
 THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C)  OR  (D)  OF
 SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.  HOWEVER, IF
 THE  AMOUNT  OF  CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION FOR QUALIFIED
 CONTRIBUTIONS FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH  AMOUNT,  ANY
 AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
 TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
 FOR SUCH YEAR OR YEARS.
   §  5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new  clause  (xliii)  to  read  as
 follows:
 (XLIII) EDUCATION AFFORDABILITY      AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (CCC)    SUBDIVISION FORTY-NINE OF SECTION
                                      TWO HUNDRED TEN-B
   §  6.  Section  606  of  the  tax  law  is  amended  by adding two new
 subsections (w) and (w-1) to read as follows:

 S. 2009--B                         149
 
   (W) HOME-BASED INSTRUCTIONAL MATERIALS CREDIT. (1) FOR  TAXABLE  YEARS
 BEGINNING  ON  OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, A TAXPAYER
 SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY  THIS  ARTICLE  FOR
 THE  PURCHASE  OF  INSTRUCTIONAL  MATERIALS  APPROVED  BY  THE EDUCATION
 DEPARTMENT  FOR  USE  IN  NON-PUBLIC  HOME-BASED  EDUCATIONAL  PROGRAMS;
 PROVIDED, THAT THE AMOUNT OF CREDIT CLAIMED DOES NOT EXCEED  THE  LESSER
 OF  TWO  HUNDRED  DOLLARS  OR  ONE  HUNDRED  PERCENT OF THE COST OF SUCH
 PURCHASES MADE BY THE TAXPAYER DURING THE TAXABLE YEAR.
   (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
 WHICH THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY  ONE-HALF
 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (W-1) INSTRUCTIONAL MATERIALS AND SUPPLIES CREDIT.   (1)  FOR  TAXABLE
 YEARS  BEGINNING  ON  AND  AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, A
 TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO THE  LESSER  OF  THE  AMOUNT
 PAID BY THE TAXPAYER DURING THE TAXABLE YEAR FOR INSTRUCTIONAL MATERIALS
 AND  SUPPLIES,  OR  TWO HUNDRED DOLLARS; PROVIDED THAT THE TAXPAYER IS A
 TEACHER OR INSTRUCTOR IN A  QUALIFIED  SCHOOL,  AS  DEFINED  IN  SECTION
 FORTY-THREE  OF  THIS  CHAPTER, FOR AT LEAST NINE HUNDRED HOURS DURING A
 SCHOOL YEAR. FOR PURPOSES OF THIS SUBSECTION, THE  TERM  "MATERIALS  AND
 SUPPLIES" MEANS INSTRUCTIONAL MATERIALS OR SUPPLIES THAT ARE USED IN THE
 CLASSROOM IN ANY QUALIFIED SCHOOL.
   (2) A HUSBAND AND WIFE WHO FILE SEPARATE RETURNS FOR A TAXABLE YEAR IN
 WHICH  THEY COULD HAVE FILED A JOINT RETURN MAY EACH CLAIM ONLY ONE-HALF
 OF THE TAX CREDIT THAT WOULD HAVE BEEN ALLOWED FOR A JOINT RETURN.
   (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  7. Section 606 of the tax law is amended by adding a new subsection
 (ccc) to read as follows:
   (CCC) EDUCATION AFFORDABILITY TAX CREDIT. (1) ALLOWANCE OF  CREDIT.  A
 TAXPAYER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED IN SECTION
 FORTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY QUALIFIED CONTRIBUTIONS  FOR  ANY  TAXABLE  YEAR
 EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
 TO THE SUCCEEDING FIVE YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX
 FOR SUCH YEAR OR YEARS.
   § 8. Subsection (c) of section 615 of the tax law is amended by adding
 a new paragraph 9 to read as follows:
   (9)  THE  AMOUNT  OF  ANY FEDERAL DEDUCTION FOR CONTRIBUTIONS MADE FOR
 WHICH A TAXPAYER CLAIMS A CREDIT UNDER SUBSECTION (CCC) OF  SECTION  SIX
 HUNDRED SIX OF THIS ARTICLE.
   §  9. Section 606 of the tax law is amended by adding a new subsection
 (hhh) to read as follows:
   (HHH) HELPING OPEN OPPORTUNITIES TO LEARN TAX CREDIT. (1)  GENERAL.  A
 RESIDENT LOW AND MIDDLE INCOME TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED  AS PROVIDED IN PARAGRAPH THREE OF THIS SUBSECTION, AGAINST THE
 TAX IMPOSED BY THIS ARTICLE  FOR  THE  QUALIFIED  PRIMARY  OR  SECONDARY
 EDUCATION TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR.

 S. 2009--B                         150
 
   (2)  DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "RESIDENT  LOW  AND MIDDLE INCOME TAXPAYER" SHALL MEAN A TAXPAYER
 WHO IS A FULL-YEAR RESIDENT OF THIS  STATE  AND  WHOSE  FEDERAL  TAXABLE
 INCOME  IS  EQUAL  TO  OR  LESS THAN SEVEN HUNDRED TWENTY PERCENT OF THE
 FEDERAL POVERTY GUIDELINES, AS PROMULGATED ANNUALLY BY THE UNITED STATES
 DEPARTMENT OF HEALTH AND HUMAN SERVICES, FOR THE TAXABLE YEAR FOR  WHICH
 THIS CREDIT IS CLAIMED.
   (B)  "QUALIFIED PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" SHALL
 MEAN THE TUITION REQUIRED FOR THE ENROLLMENT OR ATTENDANCE OF AN  ELIGI-
 BLE  STUDENT AT A QUALIFIED SCHOOL, AS DEFINED IN SECTION FORTY-THREE OF
 THIS CHAPTER. PROVIDED, HOWEVER, THAT ANY TUITION PAYMENTS MADE FOR SUCH
 ELIGIBLE STUDENT PURSUANT TO THE RECEIPT OF FINANCIAL AID OR ONE OR MORE
 SCHOLARSHIPS SHALL BE EXCLUDED FROM THE DEFINITION OF THE  TERM  "QUALI-
 FIED  PRIMARY OR SECONDARY EDUCATION TUITION EXPENSES" FOR SUCH ELIGIBLE
 STUDENT.
   (C) "ELIGIBLE STUDENT" SHALL MEAN ANY DEPENDENT OF THE  TAXPAYER  WITH
 RESPECT  TO  WHOM THE TAXPAYER IS ALLOWED AN EXEMPTION UNDER SECTION SIX
 HUNDRED SIXTEEN OF THIS ARTICLE FOR THE TAXABLE YEAR WHO IS ENROLLED IN,
 AND FOR WHOM QUALIFIED PRIMARY AND SECONDARY EDUCATION TUITION  EXPENSES
 HAVE BEEN PAID FOR, KINDERGARTEN OR GRADE ONE THROUGH TWELVE IN A QUALI-
 FIED SCHOOL.
   (3)  AMOUNT  OF  CREDIT.  THE  AMOUNT OF CREDIT THAT A RESIDENT LOW OR
 MIDDLE INCOME TAXPAYER MAY CLAIM FOR THE QUALIFIED PRIMARY OR  SECONDARY
 EDUCATION  TUITION  EXPENSES  PAID FOR EACH ELIGIBLE STUDENT SHALL EQUAL
 THE LESSER OF FIFTEEN PERCENT OF  THE  QUALIFIED  PRIMARY  OR  SECONDARY
 EDUCATION  TUITION EXPENSES PAID BY THE TAXPAYER DURING THE TAXABLE YEAR
 FOR SUCH ELIGIBLE STUDENT, OR SIX HUNDRED DOLLARS.
   (4) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH  YEAR,  THE  EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
 CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX
 HUNDRED  EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
 SHALL BE PAID THEREON.
   (5) HUSBAND AND WIFE. IN THE CASE OF A HUSBAND AND  WIFE  WHO  FILE  A
 JOINT  FEDERAL  RETURN, BUT WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK
 TAXES SEPARATELY, THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION MAY  BE
 APPLIED  AGAINST  THE  TAX  IMPOSED OF EITHER OR DIVIDED BETWEEN THEM AS
 THEY MAY ELECT.
   § 10. The education law is amended by adding a new article 25 to  read
 as follows:
                                ARTICLE 25
                      EDUCATION AFFORDABILITY PROGRAM
 SECTION 1209. SHORT TITLE.
         1210. DEFINITIONS.
         1211. APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1212. APPLICATIONS   FOR   APPROVAL  TO  ISSUE  CERTIFICATES  OF
                 RECEIPT.
         1213. APPLICATION APPROVAL.
         1214. REVOCATION OF APPROVAL TO ISSUE CERTIFICATES OF RECEIPT.
         1215. RECORDKEEPING.
         1216. JOINT ANNUAL REPORT.
         1217. COMMISSIONER; POWERS.
   § 1209. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "EDUCATION AFFORDABILITY PROGRAM".

 S. 2009--B                         151
 
   §  1210.  DEFINITIONS.  AS  USED  IN THIS ARTICLE, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "AUTHORIZED  CONTRIBUTION" MEANS THE CONTRIBUTION AMOUNT LISTED ON
 THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO A TAXPAYER.
   2. "CONTRIBUTION" MEANS A DONATION PAID  BY  CASH,  CHECK,  ELECTRONIC
 FUNDS  TRANSFER,  DEBIT  CARD OR CREDIT CARD MADE BY THE TAXPAYER DURING
 THE TAX YEAR.
   3. "EDUCATIONAL PROGRAM" MEANS AN ACADEMIC PROGRAM OF A PUBLIC  SCHOOL
 THAT  ENHANCES THE CURRICULUM, OR PROVIDES OR EXPANDS A PRE-KINDERGARTEN
 PROGRAM OR AN AFTER-SCHOOL PROGRAM TO THE PUBLIC SCHOOL. FOR PURPOSES OF
 THIS DEFINITION, THE INSTRUCTION, MATERIALS, PROGRAMS  OR  OTHER  ACTIV-
 ITIES  OFFERED BY OR THROUGH AN EDUCATIONAL PROGRAM MAY INCLUDE, BUT ARE
 NOT LIMITED TO, THE FOLLOWING FEATURES:  (A)  INSTRUCTION  OR  MATERIALS
 PROMOTING  HEALTH, PHYSICAL EDUCATION, AND FAMILY AND CONSUMER SCIENCES;
 LITERARY, PERFORMING AND VISUAL ARTS; MATHEMATICS, SOCIAL STUDIES, TECH-
 NOLOGY AND SCIENTIFIC ACHIEVEMENT; (B)  INSTRUCTION  OR  PROGRAMMING  TO
 MEET  THE EDUCATION NEEDS OF AT-RISK STUDENTS OR STUDENTS WITH DISABILI-
 TIES, INCLUDING TUTORING  OR  COUNSELING;  OR  (C)  USE  OF  SPECIALIZED
 INSTRUCTIONAL  MATERIALS,  INSTRUCTORS  OR INSTRUCTION NOT PROVIDED BY A
 PUBLIC SCHOOL.
   4. "EDUCATIONAL SCHOLARSHIP ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTI-
 TY WHICH (A) IS EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION
 (C) OF SECTION FIVE HUNDRED  ONE  OF  THE  INTERNAL  REVENUE  CODE,  (B)
 COMMITS  FOR  THE  EXPENDITURE OF AT LEAST NINETY PERCENT OF THE REVENUE
 FROM QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR YEAR  AND  ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS FOR SCHOLARSHIPS, (C) DEPOS-
 ITS AND HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM QUALI-
 FIED  CONTRIBUTIONS  IN  AN  ACCOUNT THAT IS SEPARATE FROM THE ORGANIZA-
 TION'S OPERATING OR OTHER FUNDS UNTIL SUCH  QUALIFIED  CONTRIBUTIONS  OR
 INCOME  ARE WITHDRAWN FOR USE, AND (D) PROVIDES SCHOLARSHIPS TO ELIGIBLE
 PUPILS FOR USE AT NO FEWER THAN THREE QUALIFIED SCHOOLS.
   5. "ELIGIBLE PUPIL" MEANS A CHILD WHO (A) IS A RESIDENT OF THIS STATE,
 (B) IS SCHOOL AGE IN ACCORDANCE WITH SUBDIVISION ONE OF SECTION  THIRTY-
 TWO HUNDRED TWO OF THIS CHAPTER OR WHO IS FOUR YEARS OF AGE ON OR BEFORE
 DECEMBER  FIRST  OF THE YEAR IN WHICH THEY ARE ENROLLED IN A PRE-KINDER-
 GARTEN PROGRAM, (C) ATTENDS OR IS ABOUT TO ATTEND  A  QUALIFIED  SCHOOL,
 AND  (D) RESIDES IN A HOUSEHOLD THAT HAS A FEDERAL ADJUSTED GROSS INCOME
 OF FIVE HUNDRED THOUSAND DOLLARS OR LESS, PROVIDED HOWEVER,  FOR  HOUSE-
 HOLDS  WITH THREE OR MORE DEPENDENT CHILDREN, SUCH INCOME LEVEL SHALL BE
 INCREASED BY TEN THOUSAND DOLLARS PER DEPENDENT CHILD IN EXCESS OF  TWO,
 NOT TO EXCEED FIVE HUNDRED FIFTY THOUSAND DOLLARS.
   6.  "LOCAL  EDUCATION FUND" MEANS A NOT-FOR-PROFIT ENTITY WHICH (A) IS
 EXEMPT FROM TAXATION UNDER PARAGRAPH THREE OF SUBSECTION (C) OF  SECTION
 FIVE  HUNDRED  ONE  OF THE INTERNAL REVENUE CODE, (B) IS ESTABLISHED FOR
 THE PURPOSE OF SUPPORTING AN EDUCATIONAL PROGRAM IN AT LEAST ONE  PUBLIC
 SCHOOL,  OR  PUBLIC SCHOOL DISTRICT, (C) USES AT LEAST NINETY PERCENT OF
 THE QUALIFIED CONTRIBUTIONS RECEIVED DURING THE CALENDAR  YEAR  AND  ANY
 INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS TO SUPPORT THE PUBLIC SCHOOL
 OR  SCHOOLS  OR  PUBLIC  SCHOOL DISTRICT OR DISTRICTS THAT SUCH FUND HAS
 BEEN ESTABLISHED TO  SUPPORT,  AND  (D)  DEPOSITS  AND  HOLDS  QUALIFIED
 CONTRIBUTIONS  AND ANY INCOME DERIVED FROM QUALIFIED CONTRIBUTIONS IN AN
 ACCOUNT THAT IS SEPARATE FROM THE FUND'S OPERATING OR OTHER FUNDS  UNTIL
 SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE.
   7.   "NONPUBLIC  SCHOOL"  MEANS  ANY  NOT-FOR-PROFIT  PRE-KINDERGARTEN
 PROGRAM  OR  ELEMENTARY,  SECONDARY  SECTARIAN  OR  NONSECTARIAN  SCHOOL
 LOCATED  IN  THIS  STATE,  OTHER THAN A PUBLIC SCHOOL, THAT IS PROVIDING

 S. 2009--B                         152
 
 INSTRUCTION AT ONE OR MORE LOCATIONS TO A  STUDENT  IN  ACCORDANCE  WITH
 SUBDIVISION TWO OF SECTION THIRTY-TWO HUNDRED FOUR OF THIS CHAPTER.
   8.  "PUBLIC EDUCATION ENTITY" MEANS A PUBLIC SCHOOL OR A PUBLIC SCHOOL
 DISTRICT, PROVIDED THAT SUCH PUBLIC SCHOOL, OR  PUBLIC  SCHOOL  DISTRICT
 DEPOSITS  AND  HOLDS QUALIFIED CONTRIBUTIONS AND ANY INCOME DERIVED FROM
 QUALIFIED CONTRIBUTIONS IN AN ACCOUNT THAT IS SEPARATE FROM  THE  PUBLIC
 SCHOOL  OR  PUBLIC SCHOOL DISTRICT'S OPERATING OR OTHER FUNDS UNTIL SUCH
 QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE, AND IS APPROVED
 TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
   9. "PUBLIC SCHOOL" MEANS ANY FREE ELEMENTARY OR  SECONDARY  SCHOOL  IN
 THIS  STATE  GUARANTEED BY ARTICLE ELEVEN OF THE CONSTITUTION OR CHARTER
 SCHOOL AUTHORIZED BY ARTICLE FIFTY-SIX OF THIS CHAPTER.
   10. "QUALIFIED CONTRIBUTION" MEANS THE AUTHORIZED CONTRIBUTION MADE BY
 A TAXPAYER TO THE PUBLIC EDUCATION ENTITY, SCHOOL IMPROVEMENT  ORGANIZA-
 TION, LOCAL EDUCATION FUND, OR EDUCATIONAL SCHOLARSHIP ORGANIZATION THAT
 IS  LISTED  ON  THE CONTRIBUTION AUTHORIZATION CERTIFICATE ISSUED TO THE
 TAXPAYER AND FOR WHICH  THE  TAXPAYER  HAS  RECEIVED  A  CERTIFICATE  OF
 RECEIPT  FROM  SUCH  ENTITY, FUND, OR ORGANIZATION.  A CONTRIBUTION DOES
 NOT QUALIFY IF THE TAXPAYER DESIGNATES THE TAXPAYER'S CONTRIBUTION TO AN
 ENTITY OR ORGANIZATION FOR THE DIRECT BENEFIT OF ANY PARTICULAR OR SPEC-
 IFIED STUDENT.
   11. "QUALIFIED EDUCATOR" MEANS AN  INDIVIDUAL  WHO  IS  A  TEACHER  OR
 INSTRUCTOR  IN A QUALIFIED SCHOOL FOR AT LEAST NINE HUNDRED HOURS DURING
 A SCHOOL YEAR.
   12. "QUALIFIED SCHOOL" MEANS A PUBLIC SCHOOL OR NONPUBLIC SCHOOL.
   13. "SCHOLARSHIP" MEANS AN EDUCATIONAL SCHOLARSHIP  WHICH  PROVIDES  A
 TUITION  GRANT AWARDED TO AN ELIGIBLE PUPIL TO ATTEND A QUALIFIED SCHOOL
 IN AN AMOUNT NOT TO EXCEED THE TUITION CHARGED  TO  ATTEND  SUCH  SCHOOL
 LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
 OR HIS OR HER PARENT, PARENTS OR  GUARDIAN  FOR  SUCH  ELIGIBLE  PUPIL'S
 TUITION; PROVIDED, HOWEVER, IN THE CASE OF AN ELIGIBLE PUPIL ATTENDING A
 PUBLIC  SCHOOL  IN A PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS NOT A
 RESIDENT, THE AMOUNT OF THE  EDUCATIONAL  SCHOLARSHIP  AWARDED  MAY  NOT
 EXCEED  THE TUITION CHARGED BY THE PUBLIC SCHOOL PURSUANT TO PARAGRAPH D
 OF SUBDIVISION FOUR OF SECTION THIRTY-TWO HUNDRED TWO  OF  THIS  CHAPTER
 LESS  ANY  OTHER EDUCATIONAL SCHOLARSHIP RECEIVED BY SUCH ELIGIBLE PUPIL
 OR HIS OR HER PARENT, PARENTS OR  GUARDIAN  FOR  SUCH  ELIGIBLE  PUPIL'S
 TUITION, BUT ONLY IF THE PUBLIC SCHOOL DISTRICT OF WHICH SUCH PUPIL IS A
 RESIDENT IS NOT REQUIRED TO PAY FOR SUCH TUITION.
   14.  "SCHOOL  IMPROVEMENT  ORGANIZATION" MEANS A NOT-FOR-PROFIT ENTITY
 WHICH (I) IS EXEMPT FROM TAXATION UNDER PARAGRAPH  THREE  OF  SUBSECTION
 (C)  OF SECTION FIVE HUNDRED ONE OF THE INTERNAL REVENUE CODE, (II) USES
 AT LEAST NINETY PERCENT OF THE QUALIFIED CONTRIBUTIONS  RECEIVED  DURING
 THE  CALENDAR  YEAR  AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIB-
 UTIONS TO ASSIST PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS  LOCATED  IN
 THIS  STATE IN THEIR PROVISION OF EDUCATIONAL PROGRAMS, EITHER BY MAKING
 CONTRIBUTIONS TO ONE OR MORE PUBLIC SCHOOLS OR PUBLIC  SCHOOL  DISTRICTS
 LOCATED  IN  THIS  STATE  OR  PROVIDING  EDUCATIONAL  PROGRAMS TO, OR IN
 CONJUNCTION WITH, ONE OR MORE PUBLIC SCHOOLS OR PUBLIC SCHOOL  DISTRICTS
 LOCATED  IN THIS STATE, (III) DEPOSITS AND HOLDS QUALIFIED CONTRIBUTIONS
 AND ANY INCOME DERIVED FROM SUCH QUALIFIED CONTRIBUTIONS IN  AN  ACCOUNT
 THAT  IS SEPARATE FROM THE ORGANIZATION'S OPERATING OR OTHER FUNDS UNTIL
 SUCH QUALIFIED CONTRIBUTIONS OR INCOME ARE WITHDRAWN FOR USE,  AND  (IV)
 IS  APPROVED  TO ISSUE CERTIFICATES OF RECEIPT PURSUANT TO THIS ARTICLE.
 SUCH ENTITY MAY ALLOW THE TAXPAYER TO CHOOSE TO  DONATE  TO  A  PROGRAM,

 S. 2009--B                         153

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

 S. 2009--B                         154
 
 CERTIFICATES OF RECEIPT PURSUANT TO SECTION FORTY-THREE OF THE TAX  LAW;
 PROVIDED HOWEVER, THAT THE COMMISSIONER SHALL NOT REVOKE APPROVAL PURSU-
 ANT  TO  THIS  SECTION  BASED UPON A VIOLATION OF THE TAX LAW UNLESS THE
 COMMISSIONER   OF   TAXATION  AND  FINANCE  AGREES  THAT  REVOCATION  IS
 WARRANTED; AND PROVIDED FURTHER THAT THE COMMISSIONER SHALL  NOT  REVOKE
 APPROVAL  PURSUANT  TO THIS SECTION WHEN THE FAILURE TO COMPLY IS DUE TO
 CLERICAL ERROR AND NOT NEGLIGENCE OR INTENTIONAL DISREGARD FOR THE  LAW.
 WITHIN FIVE DAYS OF THE DETERMINATION REVOKING APPROVAL, THE COMMISSION-
 ER  SHALL  PROVIDE NOTICE OF SUCH REVOCATION TO THE EDUCATIONAL SCHOLAR-
 SHIP ORGANIZATION,  SCHOOL  IMPROVEMENT  ORGANIZATION,  LOCAL  EDUCATION
 FUND,  PUBLIC SCHOOL, OR PUBLIC SCHOOL DISTRICT AND TO THE DEPARTMENT OF
 TAXATION AND FINANCE.
   § 1215. RECORDKEEPING. EACH SCHOOL  IMPROVEMENT  ORGANIZATION,  EDUCA-
 TIONAL SCHOLARSHIP ORGANIZATION, LOCAL EDUCATION FUND, PUBLIC SCHOOL AND
 PUBLIC  SCHOOL  DISTRICT THAT ISSUED AT LEAST ONE CERTIFICATE OF RECEIPT
 SHALL MAINTAIN RECORDS INCLUDING (A)  NOTIFICATIONS  RECEIVED  FROM  THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE,  (B)  NOTIFICATIONS  MADE TO THE
 DEPARTMENT OF TAXATION AND FINANCE, (C)  COPIES  OF  QUALIFIED  CONTRIB-
 UTIONS  RECEIVED,  (D)  COPIES OF THE DEPOSIT OF SUCH QUALIFIED CONTRIB-
 UTIONS, (E) COPIES OF ISSUED CERTIFICATES OF RECEIPT, (F) ANNUAL  FINAN-
 CIAL  STATEMENTS,  (G)  IN THE CASE OF SCHOOL IMPROVEMENT ORGANIZATIONS,
 EDUCATIONAL SCHOLARSHIP ORGANIZATIONS AND  LOCAL  EDUCATION  FUNDS,  THE
 APPLICATION  SUBMITTED PURSUANT TO SECTION TWELVE HUNDRED TWELVE OF THIS
 ARTICLE AND THE APPROVAL ISSUED BY THE COMMISSIONER, AND (H)  ANY  OTHER
 INFORMATION AS PRESCRIBED BY REGULATION PROMULGATED BY THE COMMISSIONER.
   §  1216.  JOINT  ANNUAL  REPORT. ON OR BEFORE THE LAST DAY OF JUNE FOR
 EACH CALENDAR YEAR, THE COMMISSIONER OF TAXATION  AND  FINANCE  AND  THE
 COMMISSIONER,  JOINTLY,  SHALL  SUBMIT  A  WRITTEN REPORT AS PROVIDED IN
 SUBDIVISION (K) OF SECTION FORTY-THREE OF THE TAX LAW.
   § 1217. COMMISSIONER; POWERS. THE COMMISSIONER SHALL PROMULGATE ON  AN
 EMERGENCY  BASIS  REGULATIONS  NECESSARY  FOR THE IMPLEMENTATION OF THIS
 SECTION. THE COMMISSIONER SHALL MAKE  ANY  APPLICATION  REQUIRED  TO  BE
 FILED PURSUANT TO THIS ARTICLE AVAILABLE TO APPLICANTS WITHIN SIXTY DAYS
 OF THE EFFECTIVE DATE OF THIS ARTICLE.
   §  11.  The education law is amended by adding a new section 1503-a to
 read as follows:
   § 1503-A. POWER TO ACCEPT AND SOLICIT GIFTS AND  DONATIONS.    1.  ALL
 SCHOOL DISTRICTS ORGANIZED BY SPECIAL LAWS OR PURSUANT TO THE PROVISIONS
 OF  A  GENERAL  LAW ARE HEREBY AUTHORIZED AND EMPOWERED TO ACCEPT GIFTS,
 DONATIONS, AND CONTRIBUTIONS TO THE DISTRICT AND TO SOLICIT THE SAME.
   2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER OR OF ANY OTHER
 GENERAL OR SPECIAL LAW TO THE  CONTRARY,  THE  RECEIPT  OF  SUCH  GIFTS,
 DONATIONS,  CONTRIBUTIONS AND OTHER FUNDS, AND ANY INCOME DERIVED THERE-
 FROM, SHALL BE DISREGARDED  FOR  THE  PURPOSES  OF  ALL  APPORTIONMENTS,
 COMPUTATIONS, AND DETERMINATIONS OF STATE AID.
   §  12.  Severability. If any provision of this section or the applica-
 tion thereof to any person or circumstances is held invalid, such  inva-
 lidity  shall not affect other provisions or applications of the section
 which can be given effect without the invalid provision or  application,
 and to this end the provisions of this section are declared to be sever-
 able.
   §  13. This act shall take effect immediately and shall apply to taxa-
 ble years beginning after December 31, 2017.
 
                                 PART ZZZ

 S. 2009--B                         155
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (ccc) to read as follows:
   (CCC) GREEN BUILDING CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL
 BE  ALLOWED  A  CREDIT  AGAINST THE TAX IMPOSED BY THIS ARTICLE PROVIDED
 THAT SUCH TAXPAYER CONSTRUCTS OR  REHABILITATES  QUALIFYING  RESIDENTIAL
 REAL PROPERTY IN CONFORMITY WITH ENERGY EFFICIENCY STANDARDS ESTABLISHED
 BY THE NATIONAL ASSOCIATION OF HOME BUILDERS OR THE LEADERSHIP IN ENERGY
 AND  ENVIRONMENTAL  DESIGN  RATING SYSTEM DEVELOPED BY THE UNITED STATES
 GREEN BUILDING COUNCIL AND FASHIONS PROOF  THEREOF  IN  ACCORDANCE  WITH
 RULES  AND REGULATIONS PROMULGATED BY THE COMMISSIONER OF THE DEPARTMENT
 OF ENVIRONMENTAL CONSERVATION IN CONJUNCTION WITH THE COMMISSIONER.
   (2) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO FIFTY
 PERCENT OF THE ALLOWABLE COSTS PAID OR INCURRED BY THE TAXPAYER, IF  THE
 OWNER, FOR EITHER THE CONSTRUCTION OR REHABILITATION OF QUALIFYING RESI-
 DENTIAL  REAL  PROPERTY  IN  CONFORMITY WITH ENERGY EFFICIENCY STANDARDS
 ESTABLISHED BY THE NATIONAL ASSOCIATION OF HOME BUILDERS OR THE  LEADER-
 SHIP  IN  ENERGY AND ENVIRONMENTAL DESIGN RATING SYSTEM DEVELOPED BY THE
 UNITED STATES GREEN BUILDING COUNCIL; PROVIDED, HOWEVER, THAT SUCH CRED-
 IT SHALL NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS AND SHALL NOT BE
 AWARDED MORE THAN ONCE IN A PERIOD OF TEN YEARS.
   (3) FOR THE  PURPOSE  OF  THIS  SUBSECTION,  "ALLOWABLE  COSTS"  MEANS
 AMOUNTS  PROPERLY  CHARGEABLE TO AN ACCOUNT (OTHER THAN FOR LAND), WHICH
 ARE PAID OR INCURRED ON OR AFTER JANUARY FIRST, TWO THOUSAND  SEVENTEEN,
 FOR:    CONSTRUCTION  OR  REHABILITATION;  COMMISSIONING COSTS; INTEREST
 PAID; ARCHITECTURAL, ENGINEERING AND OTHER PROFESSIONAL  FEES  ALLOCABLE
 TO  CONSTRUCTION  OR REHABILITATION; SITE COSTS (SUCH AS TEMPORARY ELEC-
 TRIC WIRING, SCAFFOLDING, DEMOLITION COSTS,  AND  FENCING  AND  SECURITY
 FACILITIES);  AND LIGHTING SYSTEMS PERMANENTLY AFFIXED TO THE STRUCTURE,
 PLUMBING, ELECTRICAL WIRING NECESSARY TO ACCOMMODATE  NEW  ENERGY  EFFI-
 CIENT SYSTEMS, VENTILATION, INSULATION, WINDOWS AND NEW HEATING SYSTEMS;
 PROVIDED THAT SUCH COSTS SHALL NOT INCLUDE THE COST OF TELEPHONE SYSTEMS
 AND COMPUTERS (OTHER THAN ELECTRICAL WIRING COSTS) AND SHALL NOT INCLUDE
 THE  COST OF FUEL CELLS OR PHOTOVOLTAIC MODULES (INCLUDING INSTALLATION)
 OR THE COST OF NEW AIR  CONDITIONING  EQUIPMENT  USING  AN  EPA-APPROVED
 NON-OZONE   DEPLETING  REFRIGERANT  OR  OTHER  EPA-APPROVED  REFRIGERANT
 APPROVED BY THE COMMISSIONER OF  ENVIRONMENTAL  CONSERVATION  (EXCLUDING
 INSTALLATION).
   (4)  FOR  THE PURPOSES OF THIS SUBSECTION "QUALIFYING RESIDENTIAL REAL
 PROPERTY" SHALL MEAN THE PRINCIPAL PLACE OF RESIDENCE OF  AN  INDIVIDUAL
 TAXPAYER  WHO  CLAIMS A CREDIT PURSUANT TO THIS SUBSECTION. IN THE EVENT
 THAT SUCH PLACE OF RESIDENCE IS  A  MULTIPLE  DWELLING,  AS  DEFINED  BY
 SUBDIVISION  SEVEN  OF SECTION FOUR OF THE MULTIPLE DWELLING LAW, ALLOW-
 ABLE  COSTS  SHALL  ONLY  CONSTITUTE  THOSE  COSTS   INCURRED   DUE   TO
 CONSTRUCTION OR REHABILITATION UNDERTAKEN ON THE PORTION OF THE DWELLING
 THAT CONSTITUTES AN INDIVIDUAL TAXPAYER'S UNIT.
   (5)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 MAY  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS FOR UP TO FIVE YEARS
 AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (6) THE COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL  CONSERVATION,
 IN  CONJUNCTION  WITH  THE COMMISSIONER, SHALL PROMULGATE SUCH RULES AND
 REGULATIONS AS MAY BE NECESSARY  FOR  THE  DISTRIBUTION  OF  THE  CREDIT
 ESTABLISHED BY THIS SUBSECTION.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2017.

 S. 2009--B                         156
 
                                 PART AAAA
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (ccc) to read as follows:
   (CCC) FORESTRY STEWARDSHIP AND HABITAT CONSERVATION CREDIT. (1) IN THE
 CASE OF A TAXPAYER WHO OWNS LAND THAT IS SUBJECT  TO AN  AGREEMENT  WITH
 THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  BY WHICH SUCH LAND IS
 COMMITTED TO FORESTRY STEWARDSHIP, OR  HABITAT  CONSERVATION,  OR  BOTH,
 THERE  SHALL  BE  ALLOWED  A  CREDIT FOR TWENTY-FIVE PERCENT OF THE REAL
 PROPERTY TAXES PAID ON SUCH LAND. IN NO EVENT SHALL THE  CREDIT  ALLOWED
 UNDER THIS SUBSECTION IN COMBINATION WITH ANY OTHER CREDIT FOR SUCH REAL
 PROPERTY  TAXES UNDER THIS SECTION EXCEED THE TOTAL AMOUNT OF SUCH TAXES
 PAID DURING THE TAXABLE YEAR.
   (2) FOR THE PURPOSES OF THIS SUBSECTION:
   (A) "ELIGIBLE TRACT" SHALL MEAN A TRACT OF LAND OF  AT  LEAST  TWENTY-
 FIVE CONTIGUOUS ACRES THAT HAS BEEN INSPECTED BY THE DEPARTMENT OF ENVI-
 RONMENTAL  CONSERVATION,  A WILDLIFE BIOLOGIST CERTIFIED BY THE WILDLIFE
 SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY  THE  AMERICAN  FISHERIES
 SOCIETY, AND BASED ON SUCH INSPECTION IS DETERMINED BY THE DEPARTMENT OF
 ENVIRONMENTAL  CONSERVATION  TO BE: VALUABLE HABITAT FOR WILDLIFE, FISH,
 SHELLFISH OR CRUSTACEA; OR SAFE AND SUITABLE FOR FISH OR WILDLIFE-RELAT-
 ED RECREATION, INCLUDING FISHING, HUNTING, TRAPPING AND WILDLIFE  OBSER-
 VATION;  OR  BOTH.  LAND  DIVIDED ONLY BY FEDERAL, STATE, COUNTY OR TOWN
 ROADS, EASEMENTS OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION  CORRIDORS  OR
 SIMILAR  FACILITIES  SHALL BE CONSIDERED CONTIGUOUS FOR PURPOSES OF THIS
 SECTION.
   (B) "AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT BETWEEN THE  DEPARTMENT
 OF  ENVIRONMENTAL  CONSERVATION  AND  THE  OWNER  OF  AN ELIGIBLE TRACT,
 EXECUTED BY BOTH PARTIES, BY WHICH THE ELIGIBLE  TRACT IS  COMMITTED  TO
 HABITAT  CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH, FOR A PERIOD OF
 NOT LESS THAN FIVE YEARS.
   (C) "APPROVED HABITAT CONSERVATION PLAN" SHALL MEAN A  PLAN,  APPROVED
 BY  THE  DEPARTMENT OF ENVIRONMENTAL CONSERVATION, FOR THE MANAGEMENT OF
 AN ELIGIBLE TRACT WHICH SHALL CONTAIN REQUIREMENTS  AND  STANDARDS  WITH
 WHICH  THE  OWNER OF THE ELIGIBLE TRACT MUST COMPLY IN ORDER TO CONSERVE
 THE VALUE OF THE LAND AS WILDLIFE, FISH, SHELLFISH, OR  CRUSTACEA  HABI-
 TAT.
   (D)  "FORESTRY  STEWARDSHIP"  SHALL  MEAN  PARTICIPATION  IN  A FOREST
 CERTIFICATION PROGRAM (SUCH AS FOREST STEWARDSHIP COUNCIL CERTIFICATION,
 SUSTAINABLE FORESTRY  INITIATIVE,  AMERICAN  TREE  FARM  PROGRAM,  ETC.)
 RECOGNIZED IN THE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL CONSER-
 VATION.
   (3)  THERE IS HEREBY CREATED A NEW YORK STATE FORESTRY STEWARDSHIP AND
 HABITAT CONSERVATION PROGRAM FOR THE PURPOSE OF PROVIDING FORESTED LANDS
 IN THE STATE AND CONSERVING THE VALUE OF LAND IN THE STATE AS  WILDLIFE,
 FISH, SHELLFISH OR CRUSTACEA HABITAT.
   (4)  A  LANDOWNER  MAY  MAKE APPLICATION TO THE DEPARTMENT OF ENVIRON-
 MENTAL CONSERVATION, ON FORMS PRESCRIBED BY  SUCH  DEPARTMENT,  TO  HAVE
 LAND  INCLUDED  IN  THE NEW YORK STATE HABITAT CONSERVATION AND FORESTRY
 STEWARDSHIP PROGRAM. IF, BASED ON AN  INSPECTION  OF  THE  LAND  BY  THE
 DEPARTMENT OF ENVIRONMENTAL CONSERVATION, OR A WILDLIFE BIOLOGIST CERTI-
 FIED  BY THE WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY THE
 AMERICAN FISHERIES SOCIETY, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
 DETERMINES THAT SUCH LAND IS AN ELIGIBLE  TRACT,  IT  SHALL  NOTIFY  THE
 LANDOWNER  THAT THE LAND IS ELIGIBLE FOR INCLUSION IN THE NEW YORK STATE
 HABITAT CONSERVATION AND FORESTRY STEWARDSHIP PROGRAM.

 S. 2009--B                         157
 
   (5)  THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  MAY,   IN   ITS
 DISCRETION,  ENTER  INTO  AGREEMENTS  WITH OWNERS OF ELIGIBLE TRACTS FOR
 PURPOSES OF FORESTRY STEWARDSHIP, OR HABITAT CONSERVATION, OR BOTH. SUCH
 AGREEMENTS SHALL BE FOR A MINIMUM DURATION  OF  FIVE  YEARS,  AND  SHALL
 CONTAIN  A DESCRIPTION OF THE PROPERTY THAT IS THE SUBJECT OF THE AGREE-
 MENT, AND SUCH TERMS AND CONDITIONS AS THE DEPARTMENT DEEMS APPROPRIATE,
 INCLUDING, BUT NOT LIMITED TO:
   (A) FOR FORESTRY STEWARDSHIP AGREEMENTS, A DESCRIPTION OF THE  PARTIC-
 IPATION  IN A FOREST CERTIFICATION PROGRAM FOR A PERIOD OF NOT LESS THAN
 FIVE YEARS;
   (B) FOR HABITAT CONSERVATION AGREEMENTS, A REQUIREMENT THAT THE  LAND-
 OWNER  DEVELOP  A HABITAT CONSERVATION PLAN AND IMPLEMENT THE PLAN FOR A
 PERIOD OF NOT LESS THAN FIVE YEARS;
   (C) FOR HABITAT CONSERVATION AND FORESTRY  STEWARDSHIP  AGREEMENTS,  A
 REQUIREMENT  THAT  THE LANDOWNER DEVELOP A HABITAT CONSERVATION PLAN AND
 IMPLEMENT THE PLAN FOR A PERIOD OF NOT  LESS  THAN  FIVE  YEARS;  AND  A
 DESCRIPTION  OF  PARTICIPATION  IN  A FOREST CERTIFICATION PROGRAM FOR A
 PERIOD OF NOT LESS THAN FIVE YEARS;
   (D) A REQUIREMENT THAT THE LANDOWNER'S OBLIGATIONS CONCERNING THE LAND
 UNDER THE TERMS OF THE AGREEMENT, AS WELL AS ANY BENEFITS, SHALL PASS TO
 ANY SUCCESSOR IN INTEREST TO SUCH LAND FOR THE DURATION OF THE  TERM  OF
 THE AGREEMENT; AND
   (E)  A REQUIREMENT THAT A COPY OF THE AGREEMENT SHALL BE DULY RECORDED
 AND INDEXED AS SUCH IN THE OFFICE OF THE RECORDING OFFICER FOR THE COUN-
 TY OR COUNTIES WHERE THE LAND IS SITUATE IN  THE  MANNER  PRESCRIBED  BY
 ARTICLE  NINE  OF THE REAL PROPERTY LAW; AND THAT ANY SUBSEQUENT INSTRU-
 MENT OF CONVEYANCE RELATING TO THE PROPERTY ENCUMBERED BY THE  AGREEMENT
 SHALL  REFERENCE,  BY BOOK AND PAGE NUMBER, THE AGREEMENT; AND THAT SUCH
 INSTRUMENT SHALL ALSO SPECIFY  THAT  THE  PROPERTY  IS  SUBJECT  TO  THE
 RESTRICTIONS  CONTAINED IN THE AGREEMENT; AND THAT AN INSTRUMENT FOR THE
 PURPOSE OF CREATING, CONVEYING, MODIFYING OR TERMINATING  THE  AGREEMENT
 SHALL NOT BE EFFECTIVE UNLESS RECORDED.
   (6)  THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED BY A TAXPAYER PURSU-
 ANT TO THIS SUBSECTION SHALL NOT EXCEED  TEN  THOUSAND  DOLLARS  IN  ANY
 GIVEN YEAR.
   (7)  IF THE AMOUNT OF THE CREDIT UNDER THIS SUBSECTION FOR ANY TAXABLE
 YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL  BE
 TREATED  AS  AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
 CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   § 2. Paragraph 4 of subsection (n) of section 606 of the tax  law,  as
 amended  by  section  2  of part F of chapter 62 of the laws of 2006, is
 amended to read as follows:
   (4) Qualified agricultural property. For purposes of this  subsection,
 the  term  "qualified  agricultural property" means land located in this
 state which is used in agricultural production, and  land  improvements,
 structures  and  buildings  (excluding buildings used for the taxpayer's
 residential purpose) located on such land which are used or occupied  to
 carry out such production. Qualified agricultural property also includes
 land  set  aside  or  retired  under a federal supply management or soil
 conservation program or land that at the time it becomes  subject  to  a
 conservation easement, as defined under subsection (kk) of this section,
 met  the requirements under this paragraph, AND LAND THAT AT THE TIME IT
 BECOMES SUBJECT TO AN AGREEMENT AS DEFINED IN SUBSECTION (CCC)  OF  THIS
 SECTION MET THE REQUIREMENTS UNDER THIS PARAGRAPH.

 S. 2009--B                         158
 
   §  3. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:
   49.  FORESTRY  STEWARDSHIP AND HABITAT CONSERVATION CREDIT. (1) IN THE
 CASE OF A TAXPAYER WHO OWNS LAND THAT IS SUBJECT TO  AN  AGREEMENT  WITH
 THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  BY WHICH SUCH LAND IS
 COMMITTED TO FORESTRY STEWARDSHIP, OR  HABITAT  CONSERVATION,  OR  BOTH,
 THERE  SHALL  BE  ALLOWED A CREDIT FOR   TWENTY-FIVE PERCENT OF THE REAL
 PROPERTY TAXES PAID ON SUCH LAND. IN NO EVENT SHALL THE  CREDIT  ALLOWED
 UNDER  THIS  SUBDIVISION  IN  COMBINATION WITH ANY OTHER CREDIT FOR SUCH
 REAL PROPERTY TAXES UNDER THIS SECTION EXCEED THE TOTAL AMOUNT  OF  SUCH
 TAXES PAID DURING THE TAXABLE YEAR.
   (2) FOR THE PURPOSES OF THIS SUBDIVISION:
   (A)  "ELIGIBLE  TRACT"  SHALL MEAN A TRACT OF LAND OF AT LEAST TWENTY-
 FIVE CONTIGUOUS ACRES THAT HAS BEEN INSPECTED BY THE DEPARTMENT OF ENVI-
 RONMENTAL CONSERVATION, A WILDLIFE BIOLOGIST CERTIFIED BY  THE  WILDLIFE
 SOCIETY,  OR  A  FISHERIES BIOLOGIST CERTIFIED BY THE AMERICAN FISHERIES
 SOCIETY, AND BASED ON SUCH INSPECTION IS DETERMINED BY THE DEPARTMENT OF
 ENVIRONMENTAL CONSERVATION TO BE: VALUABLE HABITAT FOR  WILDLIFE,  FISH,
 SHELLFISH OR CRUSTACEA; OR SAFE AND SUITABLE FOR FISH OR WILDLIFE-RELAT-
 ED  RECREATION, INCLUDING FISHING, HUNTING, TRAPPING AND WILDLIFE OBSER-
 VATION; OR BOTH. LAND DIVIDED ONLY BY FEDERAL,  STATE,  COUNTY  OR  TOWN
 ROADS,  EASEMENTS  OR RIGHTS-OF-WAY, OR ENERGY TRANSMISSION CORRIDORS OR
 SIMILAR FACILITIES SHALL BE CONSIDERED CONTIGUOUS FOR PURPOSES  OF  THIS
 SECTION.
   (B)  "AGREEMENT" SHALL MEAN A WRITTEN AGREEMENT BETWEEN THE DEPARTMENT
 OF ENVIRONMENTAL CONSERVATION  AND  THE  OWNER  OF  AN  ELIGIBLE  TRACT,
 EXECUTED  BY  BOTH  PARTIES, BY WHICH THE ELIGIBLE TRACT IS COMMITTED TO
 HABITAT CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH, FOR A PERIOD  OF
 NOT LESS THAN FIVE YEARS.
   (C)  "APPROVED  HABITAT CONSERVATION PLAN" SHALL MEAN A PLAN, APPROVED
 BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, FOR THE  MANAGEMENT  OF
 AN  ELIGIBLE  TRACT  WHICH SHALL CONTAIN REQUIREMENTS AND STANDARDS WITH
 WHICH THE OWNER OF THE ELIGIBLE TRACT MUST COMPLY IN ORDER  TO  CONSERVE
 THE  VALUE  OF THE LAND AS WILDLIFE, FISH, SHELLFISH, OR CRUSTACEA HABI-
 TAT.
   (D) "FORESTRY  STEWARDSHIP"  SHALL  MEAN  PARTICIPATION  IN  A  FOREST
 CERTIFICATION PROGRAM (SUCH AS FOREST STEWARDSHIP COUNCIL CERTIFICATION,
 SUSTAINABLE  FORESTRY  INITIATIVE,  AMERICAN  TREE  FARM  PROGRAM, ETC.)
 RECOGNIZED IN THE REGULATIONS OF THE DEPARTMENT OF ENVIRONMENTAL CONSER-
 VATION.
   (3) THERE IS HEREBY CREATED A NEW YORK STATE FORESTRY STEWARDSHIP  AND
 HABITAT CONSERVATION PROGRAM FOR THE PURPOSE OF PROVIDING FORESTED LANDS
 IN  THE STATE AND CONSERVING THE VALUE OF LAND IN THE STATE AS WILDLIFE,
 FISH, SHELLFISH OR CRUSTACEA HABITAT.
   (4) A LANDOWNER MAY MAKE APPLICATION TO  THE  DEPARTMENT  OF  ENVIRON-
 MENTAL  CONSERVATION,  ON  FORMS  PRESCRIBED BY SUCH DEPARTMENT, TO HAVE
 LAND INCLUDED IN THE NEW YORK STATE HABITAT  CONSERVATION  AND  FORESTRY
 STEWARDSHIP  PROGRAM.  IF,  BASED  ON  AN  INSPECTION OF THE LAND BY THE
 DEPARTMENT OF ENVIRONMENTAL CONSERVATION, OR A WILDLIFE BIOLOGIST CERTI-
 FIED BY THE WILDLIFE SOCIETY, OR A FISHERIES BIOLOGIST CERTIFIED BY  THE
 AMERICAN FISHERIES SOCIETY, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
 DETERMINES  THAT  SUCH  LAND  IS  AN ELIGIBLE TRACT, IT SHALL NOTIFY THE
 LANDOWNER THAT THE LAND IS ELIGIBLE FOR INCLUSION IN THE NEW YORK  STATE
 HABITAT CONSERVATION AND FORESTRY STEWARDSHIP PROGRAM.
   (5)   THE   DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  MAY,  IN  ITS
 DISCRETION, ENTER INTO AGREEMENTS WITH OWNERS  OF  ELIGIBLE  TRACTS  FOR

 S. 2009--B                         159

 PURPOSES OF HABITAT CONSERVATION, OR FORESTRY STEWARDSHIP, OR BOTH. SUCH
 AGREEMENTS  SHALL  BE  FOR  A  MINIMUM DURATION OF FIVE YEARS, AND SHALL
 CONTAIN A DESCRIPTION OF THE PROPERTY THAT IS THE SUBJECT OF THE  AGREE-
 MENT, AND SUCH TERMS AND CONDITIONS AS THE DEPARTMENT DEEMS APPROPRIATE,
 INCLUDING, BUT NOT LIMITED TO:
   (A)  FOR FORESTRY STEWARDSHIP AGREEMENTS, A DESCRIPTION OF THE PARTIC-
 IPATION IN A FOREST CERTIFICATION PROGRAM FOR A PERIOD OF NOT LESS  THAN
 FIVE YEARS;
   (B)  FOR HABITAT CONSERVATION AGREEMENTS, A REQUIREMENT THAT THE LAND-
 OWNER DEVELOP A HABITAT CONSERVATION PLAN AND IMPLEMENT THE PLAN  FOR  A
 PERIOD OF NOT LESS THAN FIVE YEARS;
   (C)  FOR  HABITAT  CONSERVATION AND FORESTRY STEWARDSHIP AGREEMENTS, A
 REQUIREMENT THAT THE LANDOWNER DEVELOP A HABITAT CONSERVATION  PLAN  AND
 IMPLEMENT  THE  PLAN  FOR  A  PERIOD  OF NOT LESS THAN FIVE YEARS; AND A
 DESCRIPTION OF PARTICIPATION IN A FOREST  CERTIFICATION  PROGRAM  FOR  A
 PERIOD OF NOT LESS THAN FIVE YEARS;
   (D) A REQUIREMENT THAT THE LANDOWNER'S OBLIGATIONS CONCERNING THE LAND
 UNDER THE TERMS OF THE AGREEMENT, AS WELL AS ANY BENEFITS, SHALL PASS TO
 ANY  SUCCESSOR  IN INTEREST TO SUCH LAND FOR THE DURATION OF THE TERM OF
 THE AGREEMENT; AND
   (E) A REQUIREMENT THAT A COPY OF THE AGREEMENT SHALL BE DULY  RECORDED
 AND INDEXED AS SUCH IN THE OFFICE OF THE RECORDING OFFICER FOR THE COUN-
 TY  OR  COUNTIES  WHERE  THE LAND IS SITUATE IN THE MANNER PRESCRIBED BY
 ARTICLE NINE OF THE REAL PROPERTY LAW; AND THAT ANY  SUBSEQUENT  INSTRU-
 MENT  OF CONVEYANCE RELATING TO THE PROPERTY ENCUMBERED BY THE AGREEMENT
 SHALL REFERENCE, BY BOOK AND PAGE NUMBER, THE AGREEMENT; AND  THAT  SUCH
 INSTRUMENT  SHALL  ALSO  SPECIFY  THAT  THE  PROPERTY  IS SUBJECT TO THE
 RESTRICTIONS CONTAINED IN THE AGREEMENT; AND THAT AN INSTRUMENT FOR  THE
 PURPOSE  OF  CREATING, CONVEYING, MODIFYING OR TERMINATING THE AGREEMENT
 SHALL NOT BE EFFECTIVE UNLESS RECORDED.
   (6) THE AMOUNT OF THE CREDIT THAT MAY BE CLAIMED BY A TAXPAYER  PURSU-
 ANT  TO  THIS  SUBDIVISION  SHALL NOT EXCEED TEN THOUSAND DOLLARS IN ANY
 GIVEN YEAR.
   (7) IF THE AMOUNT OF THE CREDIT UNDER THIS SUBDIVISION FOR ANY TAXABLE
 YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL  BE
 TREATED  AS  AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION  ONE  THOUSAND  EIGHTY-SIX  OF  THIS
 CHAPTER, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   §  4. Paragraph (d) of subdivision 11 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:
   (d) Qualified agricultural property. For purposes of this subdivision,
 the  term  "qualified  agricultural property" means land located in this
 state which is used in agricultural production, and  land  improvements,
 structures  and  buildings  (excluding buildings used for the taxpayer's
 residential purpose) located on such land which are used or occupied  to
 carry out such production. Qualified agricultural property also includes
 land  set  aside  or  retired  under a federal supply management or soil
 conservation program [or], land that at the time it becomes subject to a
 conservation easement met the requirements under this paragraph AND LAND
 THAT AT THE TIME IT BECOMES SUBJECT TO AN  AGREEMENT  AS  DEFINED  UNDER
 SUBDIVISION  FORTY-NINE OF THIS SECTION, MET THE REQUIREMENTS UNDER THIS
 PARAGRAPH.
   § 5. 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:

 S. 2009--B                         160
 
 (XLIII) FOREST STEWARDSHIP AND       AMOUNT OF CREDIT UNDER
 HABITAT CONSERVATION                 SUBDIVISION FORTY-NINE OF
 CREDIT UNDER SUBSECTION (CCC)        SECTION TWO HUNDRED TEN-B
   § 6. This act shall take effect immediately.
 
                                 PART BBBB
 
   Section  1.  Section  13  of part A of chapter 97 of the laws of 2011,
 amending the general municipal law and the  education  law  relating  to
 establishing  limits  upon  school  district  and  local  government tax
 levies, as amended by section 18 of part A of chapter 20 of the laws  of
 2015, is amended to read as follows:
   §  13. This act shall take effect immediately; provided, however, that
 sections two through eleven of this act shall take effect July  1,  2011
 and shall first apply to school district budgets and the budget adoption
 process  for  the  2012-13  school  year; and shall continue to apply to
 school district budgets and the budget adoption process for  any  school
 year  beginning in any calendar year during which this act is in effect;
 provided further, that if section 26 of part A of chapter 58 of the laws
 of 2011 shall not have taken effect on or before such date then  section
 ten  of  this  act  shall  take  effect on the same date and in the same
 manner as such chapter of the  laws  of  2011,  takes  effect;  provided
 further,  that  section one of this act shall first apply to the levy of
 taxes by local governments for the fiscal year that begins in  2012  and
 shall  continue  to  apply to the levy of taxes by local governments for
 any fiscal year beginning in any calendar year during which this act  is
 in  effect[; provided, further, that this act shall remain in full force
 and effect at a minimum until and including  June  15,  2020  and  shall
 remain in effect thereafter only so long as the public emergency requir-
 ing  the  regulation  and control of residential rents and evictions and
 all such laws providing for such  regulation  and  control  continue  as
 provided  in  subdivision  3  of  section  1 of the local emergency rent
 control act, sections 26-501, 26-502 and 26-520  of  the  administrative
 code  of  the city of New York, section 17 of chapter 576 of the laws of
 1974 and subdivision 2 of section 1 of chapter 274 of the laws  of  1946
 constituting  the  emergency housing rent control law, and section 10 of
 chapter 555 of the laws of 1982, amending the general business  law  and
 the  administrative code of the city of New York relating to conversions
 of residential property  to cooperative or condominium ownership in  the
 city of New York as such laws are continued by chapter 93 of the laws of
 2011 and as such sections are amended from time to time].
   § 2. This act shall take effect immediately.
 
                                 PART CCCC
 
   Section  1.  Subdivision 3 of section 16-v of section 1 of chapter 174
 of the laws of 1968, constituting the New York state  urban  development
 corporation  act,  is  amended  by adding a new paragraph (e) to read as
 follows:
   (E) NOTWITHSTANDING ANY OTHER PROVISION OF  LAW  TO  THE  CONTRARY,  A
 QUALIFIED ENTITY THAT HAS PREVIOUSLY BEEN DESIGNATED AS A NEW YORK STATE
 INCUBATOR  AND  HAS  NOT  FULLY DISBURSED ANY GRANTS AWARDED PURSUANT TO
 THIS SECTION, SHALL CONTINUE BEING DESIGNATED AS SUCH BY THE CORPORATION
 FOR AN ADDITIONAL THREE YEARS.
   § 2. This act shall take effect immediately.

 S. 2009--B                         161
 
                                 PART DDDD
 
   Section 1.  Subclauses (i) and (ii) of clause (E) of subparagraph 5 of
 paragraph  b of subdivision 1 of section 1016 of the racing, pari-mutuel
 wagering and breeding law, as amended by chapter 18 of the laws of 2008,
 are amended to read as follows:
   (i) Such licensed regional harness track shall receive in lieu of  any
 other  payments on wagers placed at off-track betting facilities outside
 the special betting district on races conducted by an in-state thorough-
 bred racing corporation, two and eight-tenths  percent  on  regular  and
 multiple  bets  MADE  PRIOR TO JANUARY FIRST, TWO THOUSAND EIGHTEEN, AND
 ONE AND FOUR-TENTHS PERCENT ON SUCH  BETS  MADE  ON  AND  AFTER  JANUARY
 FIRST, TWO THOUSAND EIGHTEEN during a regional meeting and one and nine-
 tenths  percent  of  such bets MADE PRIOR TO JANUARY FIRST, TWO THOUSAND
 EIGHTEEN, AND FOUR-TENTHS PERCENT ON SUCH BETS MADE ON AND AFTER JANUARY
 FIRST, TWO THOUSAND EIGHTEEN if there is no regional  meeting  and  four
 and eight-tenths percent on exotic bets MADE PRIOR TO JANUARY FIRST, TWO
 THOUSAND  EIGHTEEN, AND TWO AND FOUR-TENTHS PERCENT ON SUCH BETS MADE ON
 AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN on days on which there is
 a regional meeting and three and four-tenths percent of such  bets  MADE
 PRIOR  TO JANUARY FIRST, TWO THOUSAND EIGHTEEN, AND ONE AND SEVEN-TENTHS
 PERCENT ON SUCH BETS MADE ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGH-
 TEEN if there is no regional meeting.
   (ii) [Such] A licensed regional harness track shall  receive  one  and
 one-half  per centum on total regional handle on races conducted at out-
 of-state or out-of-country thoroughbred tracks PRIOR TO  JANUARY  FIRST,
 TWO  THOUSAND  EIGHTEEN,  AND  THREE-QUARTERS  OF ONE PER CENTUM ON SUCH
 HANDLE REALIZED ON AND AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   § 2. Clause (G) of subparagraph 6 of paragraph b of subdivision  1  of
 section  1016  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:
   (G)  Of  the  sums  retained  by a licensed harness facility, PRIOR TO
 JANUARY FIRST, TWO THOUSAND EIGHTEEN, fifty percent shall be used exclu-
 sively for purses awarded in races conducted by such  licensed  facility
 and  the  remaining  fifty  percent  shall  be retained by such licensed
 facility for its general purposes, AND ON AND AFTER JANUARY  FIRST,  TWO
 THOUSAND  EIGHTEEN  ONE  HUNDRED  PERCENT  SHALL BE USED EXCLUSIVELY FOR
 PURSES AWARDED IN RACES CONDUCTED BY SUCH  LICENSED  FACILITY  provided,
 however,  that  in a harness special betting district the portion of the
 sums retained by a licensed harness facility to be used  for  purses  or
 the  methodology for calculating the amount to be used for purses may be
 specified in a written contract between a harness racing association  or
 corporation and its representative horsemen's association.
   § 3. Paragraph a of subdivision 2 of section 1017 of the racing, pari-
 mutuel  wagering and breeding law, as amended by chapter 174 of the laws
 of 2013, is amended to read as follows:
   a. Maintenance of effort.  Any  off-track  betting  corporation  which
 engages in accepting wagers on the simulcasts of thoroughbred races from
 out-of-state  or  out-of-country  as  permitted under subdivision one of
 this section shall submit to the commission, for its approval, a  sched-
 ule  of  payments  to  be made in any year or portion thereof, that such
 off-track corporation engages in nighttime thoroughbred simulcasting. In
 order to be approved by the commission,  PRIOR  TO  JANUARY  FIRST,  TWO
 THOUSAND EIGHTEEN, the payment schedule shall be identical to the actual
 payments and distributions of such payments to tracks and purses made by

 S. 2009--B                         162
 
 such  off-track  corporation  pursuant  to the provisions of section one
 thousand fifteen of this article during the year two  thousand  two,  as
 derived from out-of-state harness races displayed after 6:00 P.M. ON AND
 AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN NO SUCH PAYMENTS AND DISTRIB-
 UTIONS  OF  PAYMENTS SHALL BE MADE TO TRACKS. If approved by the commis-
 sion, such scheduled payments shall be made from revenues  derived  from
 any  simulcasting  conducted  pursuant  to  this section and section one
 thousand fifteen of this article.
   § 4.  Clause (D) of subparagraph (ii) of paragraph 1 of subdivision  b
 of section 1612 of the tax law, as amended by chapter 174 of the laws of
 2013, is amended to read as follows:
   (D)  notwithstanding  clauses  (A),  (B) and (C) of this subparagraph,
 when the vendor track is located  within  [fifteen]  FORTY  miles  of  a
 Native American class III gaming facility at a rate of forty-one percent
 of the total revenue wagered at the vendor track after payout for prizes
 pursuant to this chapter;
   § 5. Subparagraph (ii) of paragraph 1 of subdivision b of section 1612
 of  the  tax  law  is  amended  buy adding a new clause (G-3) to read as
 follows:
   (G-3) NOTWITHSTANDING ANY PROVISION TO THE  CONTRARY,  WHEN  A  VENDOR
 TRACK  IS  LOCATED WITHIN REGION FOUR OF DEVELOPMENT ZONE TWO AS DEFINED
 BY SECTION THIRTEEN HUNDRED TEN OF THE RACING, PARI-MUTUEL WAGERING  AND
 BREEDING  LAW  AND  IS  LOCATED  WITHIN ONEIDA COUNTY, SUCH VENDOR TRACK
 SHALL RECEIVE AN ADDITIONAL COMMISSION AT A RATE EQUAL TO THE PERCENTAGE
 OF REVENUE WAGERED AT THE VENDOR TRACK AFTER PAYOUT FOR PRIZES  PURSUANT
 TO  THIS CHAPTER, WHICH PERCENTAGE SHALL BE ONE HUNDRED, LESS THE SUM OF
 THE PERCENTAGES OF NET REVENUE WAGERED AT THE VENDOR TRACK  RETAINED  BY
 THE  COMMISSION FOR OPERATION, ADMINISTRATION, AND PROCUREMENT PURPOSES;
 AND THE VENDOR'S FEE, MARKETING ALLOWANCE AND CAPITAL AWARD PAID TO  THE
 VENDOR  TRACK  PURSUANT TO THIS CHAPTER; AND THE EFFECTIVE TAX RATE PAID
 ON ALL GROSS GAMING REVENUE PAID BY A GAMING FACILITY WITHIN  SENECA  OR
 WAYNE  COUNTIES  PURSUANT  TO  SECTION THIRTEEN HUNDRED FIFTY-ONE OF THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, PROVIDED,  HOWEVER,  SUCH
 ADDITIONAL  COMMISSION SHALL BE APPLIED TO REVENUE WAGERED AT THE VENDOR
 TRACK AFTER PAYOUT FOR PRIZES ONLY WHILE A GAMING FACILITY IN SENECA  OR
 WAYNE  COUNTIES IS OPEN AND OPERATIONAL PURSUANT TO AN OPERATION CERTIF-
 ICATE ISSUED PURSUANT TO SECTION  THIRTEEN  HUNDRED  THIRTY-ONE  OF  THE
 RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. THE ADDITIONAL COMMISSION
 SET  FORTH IN THIS CLAUSE SHALL BE PAID TO THE VENDOR TRACK WITHIN SIXTY
 DAYS AFTER THE CONCLUSION OF THE STATE FISCAL YEAR BASED ON  THE  CALCU-
 LATED PERCENTAGE DURING THE PREVIOUS FISCAL YEAR.
   §  6.  Clause (B) of subparagraph (ii) of paragraph 1 of subdivision b
 of section 1612 of the tax law, as amended by chapter 174 of the laws of
 2013, is amended to read as follows:
   (B) having one thousand one hundred or more video gaming machines,  at
 a  rate of thirty-one percent of the total revenue wagered at the vendor
 track after payout for prizes pursuant to this chapter, except for  such
 facility  located  in  the county of Westchester, in which case the rate
 shall be [thirty percent until March thirty-first, two thousand  twelve]
 THIRTY-ONE PERCENT.
   Notwithstanding  the  foregoing, not later than April first, two thou-
 sand [twelve] SEVENTEEN, the vendor fee shall become [thirty-one]  THIR-
 TY-TWO percent and remain at that level thereafter; and except for Aque-
 duct  racetrack,  in  which  case  the  vendor fee shall be thirty-eight
 percent of the total revenue wagered at the vendor  track  after  payout
 for prizes pursuant to this chapter;

 S. 2009--B                         163
 
   §  7.  Subdivision  f-1  of section 1612 of the tax law, as amended by
 chapter 175 of the laws of 2013, is amended to read as follows:
   f-1.  As  consideration for operation of video lottery gaming facility
 located in the county of Nassau or Suffolk and operated by a corporation
 established pursuant to section five hundred two of the racing, pari-mu-
 tuel wagering and breeding law, the division shall cause the  investment
 in the racing industry of the following percentages of the vendor fee to
 be deposited or paid as follows:
   1.  Two  and three tenths percent of the total wagered after payout of
 prizes for the  purpose  of  enhancing  purses  at  Aqueduct  racetrack,
 Belmont  Park  racetrack  and  Saratoga race course[, provided, however,
 that any amount that is in excess of the amount  necessary  to  maintain
 purse  support  from video lottery gaming at Aqueduct racetrack, Belmont
 Park racetrack and Saratoga race course at the same  level  realized  in
 two  thousand  thirteen,  to be adjusted by the consumer price index for
 all urban consumers, as published annually by the United States  depart-
 ment  of labor, bureau of labor statistics, shall instead be returned to
 the commission].
   2. five tenths percent of the total wagered after payout of prizes for
 the appropriate breeding fund for the manner of racing at Aqueduct race-
 track, Belmont Park  racetrack  and  Saratoga  race  course[,  provided,
 however,  that  any  amount that is in excess of the amount necessary to
 maintain payments from video lottery gaming at Aqueduct racetrack at the
 same level realized in two thousand thirteen,  to  be  adjusted  by  the
 consumer  price  index for all urban consumers, as published annually by
 the United States department of labor, bureau of labor statistics, shall
 instead be returned to the commission].
   3. one and three tenths percent of the  total  revenue  wagered  after
 payout  of  prizes  to  be  deposited  into an account of the franchised
 corporation established pursuant to  section  two  hundred  six  of  the
 racing,  pari-mutuel  wagering  and  breeding law to be used for capital
 expenditures in maintaining and upgrading  Aqueduct  racetrack,  Belmont
 Park  racetrack  and  Saratoga race course[, provided, however, that any
 amount that is in excess of the amount necessary  to  maintain  payments
 for capital expenditures from video lottery gaming at Aqueduct racetrack
 at  the  same level realized in two thousand thirteen, to be adjusted by
 the consumer price index for all urban consumers, as published  annually
 by  the  United  States department of labor, bureau of labor statistics,
 shall instead be returned to the commission].
   4. Nine tenths percent of the total revenue wagered after  payout  for
 prizes  to  be  deposited  into an account of the franchised corporation
 established pursuant to section two hundred six of the racing,  pari-mu-
 tuel  wagering  and  breeding  law  to  be used for general thoroughbred
 racing operations at Aqueduct  racetrack,  Belmont  Park  racetrack  and
 Saratoga  race  course[,  provided,  however, that any amount that is in
 excess  of  the  amount  necessary  to  maintain  payments  for  general
 thoroughbred  racing  operations  from  video lottery gaming at Aqueduct
 racetrack at the same level realized in two  thousand  thirteen,  to  be
 adjusted  by  the  consumer  price  index  for  all  urban consumers, as
 published annually by the United States department of labor,  bureau  of
 labor statistics, shall instead be returned to the commission].
   §  8.  This act shall take effect immediately; provided, however, that
 the amendments to subdivision f-1 of section 1612 of the tax law made by
 section seven of this act shall expire and be  deemed  repealed  on  and
 after March 31, 2018.

 S. 2009--B                         164
 
                                 PART EEEE
 
   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
 first,  two thousand [seventeen] TWENTY. In the cases of multiple owner-
 ships and limited racing appearances, the fund  shall  equitably  adjust
 the sum required.

 S. 2009--B                         165
 
   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-
 MENDATIONS  FOR  THE  IMPLEMENTATION  OF THE SAFETY PROPOSALS AND INITI-
 ATIVES SET FORTH IN SUCH REPORT. SUCH COMMITTEE SHALL CONSIST  OF  SEVEN

 S. 2009--B                         166
 
 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 THIS CHAPTER TO OPERATE THE RACING AND TRAIN-
 ING FACILITIES AT FINGER LAKES RACETRACK;
   (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
 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.

 S. 2009--B                         167
 
   (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
 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

 S. 2009--B                         168
 
 "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
 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

 S. 2009--B                         169
 
 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
 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-

 S. 2009--B                         170
 
 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 FFFF
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new article 15 to read as follows:
                                ARTICLE 15
                            INTERACTIVE GAMING
 SECTION 1500. LEGISLATIVE FINDINGS AND PURPOSE.

 S. 2009--B                         171
 
         1501. DEFINITIONS.
         1502. AUTHORIZATION.
         1503. REQUIRED SAFEGUARDS/MINIMUM STANDARDS.
         1504. SCOPE OF LICENSING REVIEW.
         1505. STATE TAX.
         1506. DISPOSITION OF TAXES.
   § 1500. LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLATURE HEREBY FINDS
 AND  DECLARES  THAT: 1. UNDER THE NEW YORK PENAL LAW A PERSON ENGAGES IN
 GAMBLING WHEN HE OR SHE STAKES OR RISKS  SOMETHING  OF  VALUE  UPON  THE
 OUTCOME  OF  A  CONTEST OF CHANCE OR A FUTURE CONTINGENT EVENT NOT UNDER
 HIS OR HER CONTROL OR INFLUENCE, UPON AN AGREEMENT OR UNDERSTANDING THAT
 HE OR SHE WILL RECEIVE SOMETHING OF VALUE IN  THE  EVENT  OF  A  CERTAIN
 OUTCOME.
   2.  A CONTEST OF CHANCE IS DEFINED AS ANY CONTEST, GAME, GAMING SCHEME
 OR GAMING DEVICE IN WHICH THE OUTCOME DEPENDS IN A MATERIAL DEGREE  UPON
 AN  ELEMENT OF CHANCE, NOTWITHSTANDING THAT SKILL OF THE CONTESTANTS MAY
 ALSO BE A FACTOR THEREIN. (SUBDIVISION 1 OF SECTION 225.00 OF THE  PENAL
 LAW).  THUS,  GAMES OF CHANCE MAY INVOLVE SOME SKILL, BUT IN THOSE GAMES
 THE LEVEL OF SKILL DOES NOT DETERMINE  THE  OUTCOME  REGARDLESS  OF  THE
 DEGREE  OF  SKILL EMPLOYED. SEE PEOPLE V. TURNER, 165 MISC. 2D 222, 224,
 629 N.Y.S.2D 661, 662 (CRIM. CT. 1995).  ON  THE  OTHER  HAND,  WHERE  A
 CONTEST  PITS  THE  SKILL  LEVELS OF THE PLAYERS AGAINST EACH OTHER, NEW
 YORK COURTS HAVE FOUND A GAME TO BE ONE OF SKILL RATHER THAN CHANCE. SEE
 PEOPLE V. HUNT, 162 MISC. 2D 70, 72, 616 N.Y.S.2D 168,  170  (CRIM.  CT.
 1994)  ("PLAYED  FAIRLY, SKILL RATHER THAN CHANCE IS THE MATERIAL COMPO-
 NENT OF THREE-CARD MONTE.");
   3. POKER IN MANY INSTANCES HAS BEEN DEFINED AS A GAME OF SKILL  AND  A
 NEW  YORK FEDERAL COURT IN U.S. V. DICRISTINA, 886 F. SUPP. 2D 164, 224,
 ASSESSED THAT UNDER FEDERAL LAW POKER WAS PREDOMINANTLY A GAME OF SKILL;
   4. NEW YORK COURTS HAVE INTERPRETED NEW  YORK  LAW  TO  APPLY  A  MORE
 RIGOROUS  TEST  IN  IDENTIFYING A "CONTEST OF CHANCE" THAN IS APPLIED BY
 MOST STATES IN THIS NATION AND  THE  COURTS  HAVE  FOUND  THAT  WHERE  A
 CONTEST  PITS  THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER, THOSE
 GAMES ARE GAMES OF SKILL AND  NOT  GAMES  OF  CHANCE.  FURTHERMORE,  THE
 COURTS  HAVE  NOT  LIMITED  THE  LEGISLATURE'S ABILITY TO DETERMINE THAT
 CERTAIN FORMS OF POKER SHOULD FALL OUTSIDE  THE  GENERAL  DEFINITION  OF
 GAMBLING SINCE THOSE GAMES ARE GAMES OF SKILL;
   5.  TEXAS  HOLD'EM  POKER  INVOLVES  TWO CARDS DEALT FACE DOWN TO EACH
 PLAYER AND THEN FIVE COMMUNITY CARDS PLACED FACE-UP  BY  THE  DEALER,  A
 SERIES  OF  THREE, THEN TWO ADDITIONAL SINGLE CARDS, WITH PLAYERS DETER-
 MINING WHETHER TO CHECK, BET, RAISE  OR  FOLD  AFTER  EACH  DEAL.  OMAHA
 HOLD'EM  POKER  IS  A  SIMILAR  GAME, IN WHICH EACH PLAYER IS DEALT FOUR
 CARDS AND MAKES HIS OR HER BEST HAND USING EXACTLY  TWO  OF  THEM,  PLUS
 EXACTLY THREE OF THE FIVE COMMUNITY CARDS. THESE GAMES ARE CONSIDERED TO
 BE  COMPLEX  FORMS  OF POKER WHICH INVOLVE PLAYER STRATEGY AND DECISION-
 MAKING AND WHICH PIT THE SKILL LEVELS OF THE PLAYERS AGAINST EACH OTHER.
 AS GAMES OF SKILL, THESE FORMS OF POKER DO NOT FALL UNDER THE DEFINITION
 OF GAMBLING AS PROHIBITED BY THE PENAL LAW; AND
   6. THE LEGISLATURE FURTHER FINDS THAT AS THE INTERNET  HAS  BECOME  AN
 INTEGRAL  PART  OF  SOCIETY,  AND  INTERNET POKER A MAJOR FORM OF ENTER-
 TAINMENT FOR MANY CONSUMERS,  ANY  INTERACTIVE  GAMING  ENFORCEMENT  AND
 REGULATORY  STRUCTURE  MUST  BEGIN FROM THE BEDROCK PREMISE THAT PARTIC-
 IPATION IN A LAWFUL AND LICENSED GAMING INDUSTRY IS A PRIVILEGE AND  NOT
 A  RIGHT,  AND  THAT  REGULATORY  OVERSIGHT IS INTENDED TO SAFEGUARD THE
 INTEGRITY OF THE GAMES AND PARTICIPANTS AND TO ENSURE ACCOUNTABILITY AND
 THE PUBLIC TRUST.

 S. 2009--B                         172
 
   § 1501. DEFINITIONS. AS USED IN  THIS  ARTICLE,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "AUTHORIZED  GAME" MEANS OMAHA HOLD'EM AND TEXAS HOLD'EM POKER, AS
 WELL AS ANY OTHER POKER GAME THAT THE COMMISSION DETERMINES IS THE MATE-
 RIAL EQUIVALENT OF EITHER OF THOSE, WHETHER IN A CASH  GAME  OR  TOURNA-
 MENT.
   2.  "AUTHORIZED  PARTICIPANTS" MEANS PERSONS WHO ARE EITHER PHYSICALLY
 PRESENT IN THIS STATE WHEN PLACING A WAGER OR WHO OTHERWISE ARE  PERMIT-
 TED  BY  APPLICABLE  LAW,  AS  DETERMINED  BY THE COMMISSION, TO PLACE A
 WAGER. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA  IN  CONNECTION  WITH
 INTERACTIVE  GAMING  SHALL  NOT  DETERMINE  THE LOCATION OR LOCATIONS IN
 WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE.
   3. "CORE FUNCTION" MEANS ANY OF THE  FOLLOWING:  (A)  THE  MANAGEMENT,
 ADMINISTRATION  OR  CONTROL  OF  WAGERS  ON  INTERACTIVE GAMING; (B) THE
 MANAGEMENT, ADMINISTRATION OR CONTROL OF  THE  GAMES  WITH  WHICH  THOSE
 WAGERS ARE ASSOCIATED; OR (C) THE DEVELOPMENT, MAINTENANCE, PROVISION OR
 OPERATION OF AN INTERACTIVE GAMING PLATFORM.
   4. "COMMISSION" MEANS THE NEW YORK STATE GAMING COMMISSION.
   5.  "DIVISION"  MEANS  THE DIVISION OF GAMING, ESTABLISHED UNDER PARA-
 GRAPH (C) OF SUBDIVISION TWO OF SECTION ONE HUNDRED THREE OF THIS  CHAP-
 TER.
   6.  "INTERACTIVE GAMING" MEANS THE CONDUCT OF GAMES THROUGH THE USE OF
 THE INTERNET OR OTHER COMMUNICATIONS TECHNOLOGY THAT  ALLOWS  A  PERSON,
 UTILIZING  MONEY,  CHECKS,  ELECTRONIC  CHECKS,  ELECTRONIC TRANSFERS OF
 MONEY, CREDIT CARDS, DEBIT CARDS OR ANY OTHER INSTRUMENTALITY, TO TRANS-
 MIT TO A COMPUTER INFORMATION TO ASSIST IN THE PLACING OF  A  WAGER  AND
 CORRESPONDING  INFORMATION  RELATED  TO  THE  DISPLAY  OF THE GAME, GAME
 OUTCOMES OR OTHER SIMILAR INFORMATION. THE TERM  DOES  NOT  INCLUDE  THE
 CONDUCT  OF  (A)  NON-GAMBLING  GAMES  THAT  DO  NOT OTHERWISE REQUIRE A
 LICENSE UNDER STATE OR FEDERAL LAW; OR (B)  GAMES  THAT  OCCUR  ENTIRELY
 AMONG  PARTICIPANTS  WHO  ARE LOCATED ON A LICENSED CASINO PREMISES. FOR
 PURPOSES OF THIS PROVISION, "COMMUNICATIONS TECHNOLOGY" MEANS ANY METHOD
 USED AND THE COMPONENTS EMPLOYED BY AN ESTABLISHMENT TO  FACILITATE  THE
 TRANSMISSION OF INFORMATION, INCLUDING, WITHOUT LIMITATION, TRANSMISSION
 AND  RECEPTION BY SYSTEMS BASED ON WIRE, CABLE, RADIO, MICROWAVE, LIGHT,
 OPTICS OR COMPUTER DATA NETWORKS,  INCLUDING,  WITHOUT  LIMITATION,  THE
 INTERNET AND INTRANETS.
   7. "INTERACTIVE GAMING GROSS REVENUE" MEANS THE TOTAL OF ALL SUMS PAID
 TO A LICENSEE FROM INTERACTIVE GAMING INVOLVING AUTHORIZED PARTICIPANTS,
 LESS  ONLY  THE  TOTAL  OF  ALL SUMS PAID OUT AS WINNINGS TO PATRONS AND
 PROMOTIONAL GAMING CREDITS; PROVIDED, HOWEVER, THAT THE CASH  EQUIVALENT
 VALUE  OF ANY MERCHANDISE OR OTHER NON-CASH THING OF VALUE INCLUDED IN A
 CONTEST OR TOURNAMENT SHALL NOT BE INCLUDED IN THE  TOTAL  OF  ALL  SUMS
 PAID  OUT AS WINNINGS TO PLAYERS FOR PURPOSES OF DETERMINING INTERACTIVE
 GAMING GROSS REVENUE.
   (A) NEITHER AMOUNTS DEPOSITED WITH A LICENSEE FOR PURPOSES OF INTERAC-
 TIVE GAMING NOR AMOUNTS TAKEN IN FRAUDULENT ACTS PERPETRATED  AGAINST  A
 LICENSEE FOR WHICH THE LICENSEE IS NOT REIMBURSED SHALL BE CONSIDERED TO
 HAVE BEEN "PAID" TO THE LICENSEE FOR PURPOSES OF CALCULATING INTERACTIVE
 GAMING GROSS REVENUE.
   (B)  "PROMOTIONAL  GAMING CREDIT" INCLUDES BONUSES, PROMOTIONS AND ANY
 AMOUNT RECEIVED BY A LICENSEE FROM A PATRON FOR WHICH THE  LICENSEE  CAN
 DEMONSTRATE THAT IT OR ITS AFFILIATE HAS NOT RECEIVED CASH.
   8.  "INTERACTIVE  GAMING  PLATFORM" MEANS THE COMBINATION OF HARDWARE,
 SOFTWARE AND DATA NETWORKS USED TO MANAGE, ADMINISTER OR CONTROL  WAGERS

 S. 2009--B                         173
 
 ON  INTERACTIVE  GAMING OR THE GAMES WITH WHICH THOSE WAGERS ARE ASSOCI-
 ATED.
   9.  "INTERNET"  MEANS  A  COMPUTER  NETWORK  OF  INTEROPERABLE PACKET-
 SWITCHED DATA NETWORKS.
   10. "LICENSEE" MEANS A PERSON WHO IS LICENSED  BY  THE  COMMISSION  TO
 OFFER  INTERACTIVE  GAMING,  USING  AN  INTERACTIVE  GAMING  PLATFORM TO
 AUTHORIZED PARTICIPANTS. A LICENSEE  MAY  UTILIZE  MULTIPLE  INTERACTIVE
 GAMING  PLATFORMS PROVIDED THAT EACH PLATFORM IS APPROVED BY THE COMMIS-
 SION.
   11. "OMAHA HOLD'EM POKER" MEANS  THE  POKER  GAME  MARKETED  AS  OMAHA
 HOLD'EM  POKER  OR  OMAHA POKER IN WHICH EACH PLAYER IS DEALT FOUR CARDS
 AND MUST MAKE HIS OR HER BEST HAND  USING  EXACTLY  TWO  OF  THEM,  PLUS
 EXACTLY THREE OF THE FIVE COMMUNITY CARDS.
   12.  "SIGNIFICANT  VENDOR" MEANS ANY PERSON WHO OFFERS OR WHO PROPOSES
 TO OFFER ANY OF THE  FOLLOWING  SERVICES  WITH  RESPECT  TO  INTERACTIVE
 GAMING:    (A)  A CORE FUNCTION; (B) SALE, LICENSING OR OTHER RECEIPT OF
 COMPENSATION FOR SELLING OR LICENSING A DATABASE  OR  CUSTOMER  LIST  OF
 INDIVIDUALS  RESIDING  IN THE UNITED STATES SELECTED IN WHOLE OR IN PART
 BECAUSE THEY PLACED WAGERS OR PARTICIPATED IN  GAMBLING  GAMES  WITH  OR
 THROUGH  AN  INTERNET  WEBSITE  OR OPERATOR (OR ANY DERIVATIVE OF SUCH A
 DATABASE OR CUSTOMER LIST); (C) PROVISION OF ANY  TRADEMARK,  TRADENAME,
 SERVICE  MARK OR SIMILAR INTELLECTUAL PROPERTY UNDER WHICH A LICENSEE OR
 SIGNIFICANT VENDOR IDENTIFIES INTERACTIVE GAMES  TO  CUSTOMERS;  OR  (D)
 PROVISION  OF ANY PRODUCT, SERVICE OR ASSET TO A LICENSEE OR SIGNIFICANT
 VENDOR IN RETURN FOR A PERCENTAGE OF  INTERACTIVE  GAMING  REVENUE  (NOT
 INCLUDING  FEES  TO  FINANCIAL  INSTITUTIONS  AND  PAYMENT PROVIDERS FOR
 FACILITATING A DEPOSIT OR WITHDRAWAL BY AN AUTHORIZED PARTICIPANT).  THE
 TERM  "SIGNIFICANT  VENDOR"  SHALL  NOT  INCLUDE  A PROVIDER OF GOODS OR
 SERVICES TO A LICENSEE THAT ARE NOT SPECIFICALLY DESIGNED  FOR  USE  AND
 NOT PRINCIPALLY USED IN CONNECTION WITH INTERACTIVE GAMING.
   13.  "TEXAS  HOLD'EM  POKER" MEANS THE TYPE OF POKER MARKETED AS TEXAS
 HOLD'EM POKER THAT INVOLVES TWO CARDS BEING  DEALT  FACE  DOWN  TO  EACH
 PLAYER AND THEN FIVE COMMUNITY CARDS BEING PLACED FACE-UP BY THE DEALER,
 A  SERIES OF THREE THEN TWO ADDITIONAL SINGLE CARDS, WITH PLAYERS HAVING
 THE OPTION TO CHECK, BET, RAISE OR FOLD AFTER EACH DEAL.
   § 1502. AUTHORIZATION.  1. THE COMMISSION SHALL,  WITHIN  ONE  HUNDRED
 EIGHTY DAYS OF THE DATE THIS ARTICLE BECOMES LAW, PROMULGATE REGULATIONS
 TO  IMPLEMENT INTERACTIVE GAMING IN THIS STATE AND SHALL AUTHORIZE UP TO
 ELEVEN LICENSES  TO  OPERATE  INTERACTIVE  GAMING  INVOLVING  AUTHORIZED
 PARTICIPANTS, SUBJECT TO THE PROVISIONS OF THIS ARTICLE AND OTHER APPLI-
 CABLE PROVISIONS OF LAW.
   2. APPLICANTS ELIGIBLE TO APPLY FOR A LICENSE PURSUANT TO THIS ARTICLE
 SHALL BE THOSE ENTITIES:
   (A)  LICENSED  BY THE STATE PURSUANT TO SECTION SIXTEEN HUNDRED SEVEN-
 TEEN-A OF THE TAX LAW TO OPERATE VIDEO LOTTERY GAMING AND HAS EXPERIENCE
 IN THE OPERATION OF INTERACTIVE GAMING BY BEING LICENSED IN A STATE WITH
 COMPARABLE LICENSING REQUIREMENTS OR GUARANTEES ACQUISITION OF  ADEQUATE
 BUSINESS  COMPETENCE  AND  EXPERIENCE  IN  THE  OPERATION OF INTERACTIVE
 GAMING; OR
   (B) LICENSED BY THE STATE TO  OPERATE  A  CLASS  III  GAMING  FACILITY
 PURSUANT  TO  ARTICLE THIRTEEN OF THIS CHAPTER AND HAS EXPERIENCE IN THE
 OPERATION OF INTERACTIVE GAMING BY BEING LICENSED IN A STATE WITH COMPA-
 RABLE LICENSING REQUIREMENTS OR GUARANTEES ACQUISITION OF ADEQUATE BUSI-
 NESS COMPETENCE AND EXPERIENCE IN THE OPERATION OF INTERACTIVE GAMING.
   3. THE COMMISSION SHALL, TO THE EXTENT PRACTICABLE, ISSUE LICENSES  TO
 MULTIPLE  APPLICANTS  NO  SOONER  THAN ONE HUNDRED EIGHTY DAYS AFTER THE

 S. 2009--B                         174
 
 PROMULGATION OF REGULATIONS IN ORDER TO ENSURE A ROBUST AND  COMPETITIVE
 MARKET  FOR  CONSUMERS  AND  TO  PREVENT EARLY LICENSEES FROM GAINING AN
 UNFAIR COMPETITIVE ADVANTAGE.
   4.  NO  PERSON  MAY  OPERATE,  MANAGE OR MAKE AVAILABLE AN INTERACTIVE
 GAMING PLATFORM OR ACT AS A SIGNIFICANT VENDOR WITH RESPECT TO  INTERAC-
 TIVE  GAMING  THAT  IS  OFFERED  TO PERSONS LOCATED IN THIS STATE UNLESS
 LICENSED BY THE COMMISSION PURSUANT TO THIS ARTICLE AND ONLY THOSE GAMES
 AUTHORIZED BY THE COMMISSION SHALL BE PERMITTED.
   5. LICENSE APPLICANTS MAY FORM A PARTNERSHIP, JOINT VENTURE  OR  OTHER
 CONTRACTUAL  ARRANGEMENT  IN  ORDER  TO  FACILITATE THE PURPOSES OF THIS
 ARTICLE.
   6. ANY PERSON FOUND SUITABLE BY THE COMMISSION MAY BE ISSUED A LICENSE
 AS AN OPERATOR OR SIGNIFICANT VENDOR PURSUANT TO THIS ARTICLE. IN DETER-
 MINING SUITABILITY, THE COMMISSION SHALL CONSIDER THOSE FACTORS IT DEEMS
 RELEVANT IN ITS DISCRETION, INCLUDING BUT NOT LIMITED TO:
   (A) WHETHER THE APPLICANT IS A PERSON OF GOOD CHARACTER,  HONESTY  AND
 INTEGRITY;
   (B)  WHETHER  THE APPLICANT IS PERSON WHOSE PRIOR ACTIVITIES, CRIMINAL
 RECORD, IF ANY, REPUTATION, HABITS AND ASSOCIATIONS DO NOT:
   (I) POSE A THREAT TO THE PUBLIC INTEREST OR  TO  THE  EFFECTIVE  REGU-
 LATION AND CONTROL OF INTERACTIVE GAMING; OR
   (II)  CREATE  OR  ENHANCE THE DANGERS OF UNSUITABLE, UNFAIR OR ILLEGAL
 PRACTICES, METHODS AND ACTIVITIES IN THE CONDUCT OF  INTERACTIVE  GAMING
 OR  IN  THE CARRYING ON OF THE BUSINESS AND FINANCIAL ARRANGEMENTS INCI-
 DENTAL TO SUCH GAMING;
   (C) WHETHER THE APPLICANT IS CAPABLE OF  AND  LIKELY  TO  CONDUCT  THE
 ACTIVITIES  FOR  WHICH  THE APPLICANT IS LICENSED IN ACCORDANCE WITH THE
 PROVISIONS OF THIS ARTICLE, ANY REGULATIONS PRESCRIBED UNDER THIS  ARTI-
 CLE AND ALL OTHER APPLICABLE LAWS;
   (D)  WHETHER  THE  APPLICANT HAS OR GUARANTEES ACQUISITION OF ADEQUATE
 BUSINESS COMPETENCE AND EXPERIENCE IN THE OPERATION OF  LICENSED  GAMING
 OR  OF  INTERACTIVE  GAMING  IN THIS STATE OR IN A STATE WITH COMPARABLE
 LICENSING REQUIREMENTS; AND
   (E) WHETHER THE APPLICANT HAS OR WILL OBTAIN SUFFICIENT FINANCING  FOR
 THE NATURE OF THE PROPOSED OPERATION AND FROM A SUITABLE SOURCE.
   7. THE COMMISSION FURTHER SHALL DEVELOP STANDARDS BY WHICH TO EVALUATE
 AND  APPROVE  INTERACTIVE  GAMING  PLATFORMS  FOR  USE  WITH INTERACTIVE
 GAMING. INTERACTIVE GAMING PLATFORMS MUST BE APPROVED BY THE  COMMISSION
 BEFORE  BEING USED BY A LICENSEE OR SIGNIFICANT VENDOR TO CONDUCT INTER-
 ACTIVE GAMING IN THIS STATE.
   8. THE COMMISSION SHALL REQUIRE ALL LICENSEES TO PAY A ONE-TIME FEE OF
 TEN MILLION DOLLARS.  SUCH FEE PAID BY EACH LICENSEE SHALL BE APPLIED TO
 SATISFY, IN WHOLE OR IN PART, AS APPLICABLE, THAT LICENSEE'S  TAX  OBLI-
 GATION PURSUANT TO SECTION FIFTEEN HUNDRED FIVE OF THIS ARTICLE IN SIXTY
 EQUAL  MONTHLY INSTALLMENTS, ALLOCATED TO EACH OF THE FIRST SIXTY MONTHS
 OF TAX OWED AFTER THE LICENSEE HAS BEGUN  OPERATING  INTERACTIVE  GAMING
 PURSUANT  TO THIS ARTICLE. NO AMOUNTS NOT REQUIRED TO BE USED TO SATISFY
 SUCH TAX OBLIGATION DURING THAT PERIOD SHALL BE ALLOCATED TO PAYMENT  OF
 SUCH TAX OBLIGATION AFTER THAT PERIOD.
   9.  LICENSES  ISSUED  BY THE COMMISSION SHALL REMAIN IN EFFECT FOR TEN
 YEARS.
   10. THE COMMISSION, BY REGULATION, MAY AUTHORIZE  AND  PROMULGATE  ANY
 RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
 AGENCIES THEREOF (A) TO ENABLE PATRONS IN THOSE STATES TO PARTICIPATE IN
 INTERACTIVE  GAMING  OFFERED  BY  LICENSEES UNDER THIS ARTICLE OR (B) TO
 ENABLE PATRONS IN  THIS  STATE  TO  PARTICIPATE  IN  INTERACTIVE  GAMING

 S. 2009--B                         175
 
 OFFERED BY LICENSEES UNDER THE LAWS OF THOSE OTHER STATES, PROVIDED THAT
 SUCH  OTHER STATE OR AUTHORIZED AGENCY APPLIES SUITABILITY STANDARDS AND
 REVIEW MATERIALLY CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE.
   11.  ANY  REGULATIONS  ADOPTED  PURSUANT  TO  SUBDIVISION  TEN OF THIS
 SECTION MUST SET FORTH PROVISIONS THAT ADDRESS:
   (A) ANY ARRANGEMENTS TO SHARE REVENUE BETWEEN NEW YORK AND  ANY  OTHER
 STATE OR AGENCY WITHIN ANOTHER STATE; AND
   (B) ARRANGEMENTS TO ENSURE THE INTEGRITY OF INTERACTIVE GAMING OFFERED
 PURSUANT  TO ANY SUCH AGREEMENT AND THE PROTECTION OF PATRONS LOCATED IN
 THIS STATE.
   12. THE COMMISSION MAY DELEGATE ITS RESPONSIBILITIES TO ADMINISTER THE
 PROVISIONS OF THIS ARTICLE TO THE DIVISION, AS IT SEES FIT,  EXCEPT  FOR
 ITS RESPONSIBILITIES TO APPROVE LICENSES.
   §  1503.  REQUIRED SAFEGUARDS/MINIMUM STANDARDS.  THE COMMISSION SHALL
 REQUIRE LICENSEES TO IMPLEMENT MEASURES TO MEET THE STANDARDS SET OUT IN
 THIS SECTION, ALONG WITH SUCH OTHER STANDARDS THAT THE COMMISSION IN ITS
 DISCRETION MAY CHOOSE TO REQUIRE.
   (A) APPROPRIATE SAFEGUARDS  TO  ENSURE,  TO  A  REASONABLE  DEGREE  OF
 CERTAINTY,  THAT PARTICIPANTS IN INTERACTIVE GAMING ARE NOT YOUNGER THAN
 TWENTY-ONE YEARS OF AGE.
   (B) APPROPRIATE SAFEGUARDS  TO  ENSURE,  TO  A  REASONABLE  DEGREE  OF
 CERTAINTY,  THAT  PARTICIPANTS  IN  INTERACTIVE  GAMING  ARE  PHYSICALLY
 LOCATED WITHIN THE STATE OR SUCH OTHER JURISDICTION THAT THE  COMMISSION
 HAS DETERMINED TO BE PERMISSIBLE.
   (C)  APPROPRIATE  SAFEGUARDS  TO  PROTECT,  TO  A REASONABLE DEGREE OF
 CERTAINTY, THE PRIVACY AND ONLINE SECURITY OF PARTICIPANTS  IN  INTERAC-
 TIVE GAMING.
   (D)  APPROPRIATE  SAFEGUARDS  TO  ENSURE,  TO  A  REASONABLE DEGREE OF
 CERTAINTY, THAT THE INTERACTIVE GAMING  IS  FAIR  AND  HONEST  AND  THAT
 APPROPRIATE  MEASURES  ARE  IN PLACE TO DETER, DETECT AND, TO THE EXTENT
 REASONABLY POSSIBLE, TO PREVENT CHEATING, INCLUDING COLLUSION,  AND  USE
 OF  CHEATING  DEVICES,  INCLUDING  USE  OF  SOFTWARE PROGRAMS (SOMETIMES
 REFERRED TO AS "BOTS") THAT MAKE BETS OR WAGERS ACCORDING TO ALGORITHMS.
   (E) APPROPRIATE  SAFEGUARDS  TO  MINIMIZE  COMPULSIVE  GAMING  AND  TO
 PROVIDE NOTICE TO PARTICIPANTS OF RESOURCES TO HELP PROBLEM GAMBLERS.
   (F)  APPROPRIATE  SAFEGUARDS TO ENSURE PARTICIPANTS' FUNDS ARE HELD IN
 ACCOUNTS SEGREGATED FROM  THE  FUNDS  OF  LICENSEES  AND  OTHERWISE  ARE
 PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK OR CRIMINAL OR CIVIL
 ACTIONS AGAINST THE LICENSEE.
   §  1504. SCOPE OF LICENSING REVIEW.  1. IN CONNECTION WITH ANY LICENSE
 ISSUED PURSUANT TO THIS ARTICLE, THE  LICENSEE,  SIGNIFICANT  VENDOR  OR
 APPLICANT SHALL IDENTIFY AND THE COMMISSION SHALL REVIEW THE SUITABILITY
 OF  SUCH  LICENSEE'S,  SIGNIFICANT  VENDOR'S OR APPLICANT'S OWNER, CHIEF
 EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER  AND  ANY  OTHER  OFFICER  OR
 EMPLOYEE  WHO  THE  COMMISSION  DEEMS  IS  SIGNIFICANTLY INVOLVED IN THE
 MANAGEMENT OR CONTROL OF THE LICENSEE, SIGNIFICANT VENDOR  OR  APPLICANT
 OR  OF  THE  INTERACTIVE GAMING PLATFORM.   "OWNER" FOR PURPOSES OF THIS
 PROVISION MEANS ANY PERSON WHO DIRECTLY OR INDIRECTLY HOLDS ANY  BENEFI-
 CIAL  OR  OWNERSHIP INTEREST IN THE APPLICANT OF FIVE PERCENT OR GREATER
 OR ANY AMOUNT OF OWNERSHIP THAT THE COMMISSION DETERMINES TO BE  SIGNIF-
 ICANT OWNERSHIP OF THE LICENSEE, SIGNIFICANT VENDOR, OR APPLICANT.
   2.  INSTITUTIONAL  INVESTORS  ARE SUBJECT TO THE PROVISIONS SET OUT IN
 THIS SECTION.
   (A) AN INSTITUTIONAL INVESTOR HOLDING UNDER TWENTY-FIVE PERCENT OF THE
 EQUITY SECURITIES OF A LICENSEE'S OR  SIGNIFICANT  VENDOR'S  (OR  APPLI-
 CANT'S)  HOLDING OR INTERMEDIARY COMPANIES, SHALL BE GRANTED A WAIVER OF

 S. 2009--B                         176
 
 ANY INVESTIGATION OF SUITABILITY OR OTHER REQUIREMENT IF SUCH SECURITIES
 ARE THOSE OF A CORPORATION, WHETHER PUBLICLY TRADED OR  PRIVATELY  HELD,
 AND  ITS  HOLDINGS  OF  SUCH  SECURITIES  WERE  PURCHASED FOR INVESTMENT
 PURPOSES  ONLY  AND IT FILES A CERTIFIED STATEMENT TO THE EFFECT THAT IT
 HAS NO INTENTION OF INFLUENCING OR AFFECTING THE AFFAIRS OF THE  ISSUER,
 THE  LICENSEE (OR SIGNIFICANT VENDOR OR APPLICANT, AS APPLICABLE) OR ITS
 HOLDING OR INTERMEDIARY COMPANIES; PROVIDED, HOWEVER, THAT IT  SHALL  BE
 PERMITTED TO VOTE ON MATTERS PUT TO THE VOTE OF THE OUTSTANDING SECURITY
 HOLDERS.  THE  COMMISSION  MAY  GRANT  SUCH A WAIVER TO AN INSTITUTIONAL
 INVESTOR HOLDING A HIGHER PERCENTAGE OF SUCH SECURITIES UPON  A  SHOWING
 OF  GOOD CAUSE AND IF THE CONDITIONS SPECIFIED ABOVE ARE MET. ANY INSTI-
 TUTIONAL INVESTOR GRANTED A WAIVER UNDER  THIS  PARAGRAPH  WHICH  SUBSE-
 QUENTLY  DETERMINES  TO  INFLUENCE  OR  AFFECT THE AFFAIRS OF THE ISSUER
 SHALL PROVIDE NOT LESS THAN THIRTY DAYS' NOTICE OF SUCH INTENT AND SHALL
 FILE WITH THE COMMISSION A  REQUEST  FOR  DETERMINATION  OF  SUITABILITY
 BEFORE TAKING ANY ACTION THAT MAY INFLUENCE OR AFFECT THE AFFAIRS OF THE
 ISSUER; PROVIDED, HOWEVER, THAT IT SHALL BE PERMITTED TO VOTE ON MATTERS
 PUT TO THE VOTE OF THE OUTSTANDING SECURITY HOLDERS. IF AN INSTITUTIONAL
 INVESTOR  CHANGES  ITS  INVESTMENT  INTENT,  OR  IF THE COMMISSION FINDS
 REASONABLE CAUSE TO BELIEVE THAT THE INSTITUTIONAL INVESTOR MAY BE FOUND
 UNSUITABLE, NO ACTION OTHER THAN DIVESTITURE  SHALL  BE  TAKEN  BY  SUCH
 INVESTOR  WITH  RESPECT  TO  ITS  SECURITY HOLDINGS UNTIL THERE HAS BEEN
 COMPLIANCE WITH ANY REQUIREMENTS ESTABLISHED BY  THE  COMMISSION,  WHICH
 MAY INCLUDE THE EXECUTION OF A TRUST AGREEMENT. THE LICENSEE (OR SIGNIF-
 ICANT  VENDOR  OR  APPLICANT,  AS  APPLICABLE) AND ITS RELEVANT HOLDING,
 INTERMEDIARY OR SUBSIDIARY COMPANY SHALL  NOTIFY  THE  COMMISSION  IMME-
 DIATELY OF ANY INFORMATION ABOUT, OR ACTIONS OF, AN INSTITUTIONAL INVES-
 TOR  HOLDING  ITS EQUITY SECURITIES WHERE SUCH INFORMATION OR ACTION MAY
 IMPACT UPON THE ELIGIBILITY OF SUCH INSTITUTIONAL INVESTOR FOR A  WAIVER
 PURSUANT TO THIS PARAGRAPH.
   (B) IF AT ANY TIME THE COMMISSION FINDS THAT AN INSTITUTIONAL INVESTOR
 HOLDING  ANY SECURITY OF A HOLDING OR INTERMEDIARY COMPANY OF A LICENSEE
 OR SIGNIFICANT VENDOR OR  APPLICANT,  OR,  WHERE  RELEVANT,  OF  ANOTHER
 SUBSIDIARY COMPANY OF A HOLDING OR INTERMEDIARY COMPANY OF A LICENSEE OR
 SIGNIFICANT  VENDOR  OR  APPLICANT  WHICH  IS  RELATED IN ANY WAY TO THE
 FINANCING OF THE LICENSEE OR SIGNIFICANT VENDOR OR APPLICANT,  FAILS  TO
 COMPLY  WITH  THE  TERMS  OF PARAGRAPH (A) OF THIS SECTION, OR IF AT ANY
 TIME THE COMMISSION FINDS THAT, BY REASON OF THE EXTENT OR NATURE OF ITS
 HOLDINGS, AN INSTITUTIONAL INVESTOR IS IN A POSITION TO EXERCISE SUCH  A
 SUBSTANTIAL  IMPACT  UPON  THE  CONTROLLING  INTERESTS  OF A LICENSEE OR
 SIGNIFICANT VENDOR OR APPLICANT THAT INVESTIGATION AND DETERMINATION  OF
 SUITABILITY  OF  THE  INSTITUTIONAL INVESTOR IS NECESSARY TO PROTECT THE
 PUBLIC INTEREST, THE COMMISSION MAY TAKE ANY NECESSARY ACTION  OTHERWISE
 AUTHORIZED UNDER THIS ARTICLE TO PROTECT THE PUBLIC INTEREST.
   (C)  FOR  PURPOSES  OF THIS SECTION, AN "INSTITUTIONAL INVESTOR" SHALL
 MEAN ANY RETIREMENT FUND ADMINISTERED BY A PUBLIC AGENCY FOR THE  EXCLU-
 SIVE  BENEFIT  OF  FEDERAL, STATE, OR LOCAL PUBLIC EMPLOYEES; INVESTMENT
 COMPANY REGISTERED UNDER THE INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. §
 80A-1 ET SEQ.); COLLECTIVE INVESTMENT TRUST  ORGANIZED  BY  BANKS  UNDER
 PART  NINE  OF  THE RULES OF THE COMPTROLLER OF THE CURRENCY; CLOSED END
 INVESTMENT TRUST; CHARTERED OR LICENSED LIFE INSURANCE COMPANY OR  PROP-
 ERTY  AND  CASUALTY  INSURANCE  COMPANY;  BANKING AND OTHER CHARTERED OR
 LICENSED LENDING INSTITUTION; INVESTMENT ADVISOR  REGISTERED  UNDER  THE
 INVESTMENT  ADVISORS  ACT  OF 1940 (15 U.S.C. § 80B-1 ET SEQ.); AND SUCH
 OTHER PERSONS AS THE COMMISSION MAY  DETERMINE  FOR  REASONS  CONSISTENT
 WITH THE PUBLIC INTEREST.

 S. 2009--B                         177
 
   §  1505.  STATE  TAX.  LICENSEES ENGAGED IN THE BUSINESS OF CONDUCTING
 INTERACTIVE GAMING PURSUANT TO THIS ARTICLE SHALL PAY  A  PRIVILEGE  TAX
 BASED  ON  THE  LICENSEE'S INTERACTIVE GAMING GROSS REVENUE AT A FIFTEEN
 PERCENT RATE.
   §  1506. DISPOSITION OF TAXES.  THE STATE SHALL USE THE REVENUE GENER-
 ATED FROM ALL TAXES IMPOSED BY THIS ARTICLE; ANY INTEREST AND  PENALTIES
 IMPOSED  BY THE COMMISSION RELATING TO THOSE TAXES; ALL PENALTIES LEVIED
 AND COLLECTED BY THE COMMISSION; AND  THE  APPROPRIATE  FUNDS,  CASE  OR
 PRIZES FORFEITED FROM INTERACTIVE GAMING, TO PAY FOR STATE ASSISTANCE TO
 ELIGIBLE  CITIES  AND  ELIGIBLE  MUNICIPALITIES IN WHICH A VIDEO LOTTERY
 GAMING FACILITY IS LOCATED PURSUANT TO SECTION FIFTY-FOUR-L OF THE STATE
 FINANCE LAW. THE COMMISSION SHALL PAY INTO THE STATE  LOTTERY  FUND  ANY
 REMAINING FUNDS GENERATED BY TAXES IMPOSED BY THIS ARTICLE; ANY INTEREST
 AND  PENALTIES  IMPOSED  BY  THE COMMISSION RELATING TO THOSE TAXES; ALL
 PENALTIES LEVIED AND COLLECTED BY THE COMMISSION;  AND  THE  APPROPRIATE
 FUNDS, CASH OR PRIZES FORFEITED FROM INTERACTIVE GAMING.
   §  2.  Subdivision  1 of section 225.00 of the penal law is amended to
 read as follows:
   1. "Contest of chance" means  any  contest,  game,  gaming  scheme  or
 gaming  device  in  which  the  outcome  depends  [in a material degree]
 PREDOMINANTLY upon an element of chance, notwithstanding that  skill  of
 the contestants may also be a factor therein.
   §  3.  The penal law is amended by adding a new section 225.36 to read
 as follows:
 § 225.36 INTERACTIVE GAMING OFFENSES AND EXCEPTIONS.
   1. THE KNOWING AND WILLFUL OFFERING OF UNLICENSED  INTERACTIVE  GAMING
 TO  PERSONS  IN  THIS  STATE,  OR  THE  KNOWING AND WILLFUL PROVISION OF
 SERVICES WITH RESPECT THERETO, SHALL CONSTITUTE A GAMBLING OFFENSE UNDER
 THIS ARTICLE.
   2.  LICENSED  INTERACTIVE  GAMING  ACTIVITIES  UNDER  SECTION  FIFTEEN
 HUNDRED  TWO  OF THE RACING, PARI-MUTUEL WAGERING AND BREEDING LAW SHALL
 NOT BE A GAMBLING OFFENSE UNDER THIS ARTICLE.
   3. A PERSON OFFERING UNLICENSED INTERACTIVE GAMING TO PERSONS IN  THIS
 STATE SHALL BE LIABLE FOR ALL TAXES SET FORTH IN SECTION FIFTEEN HUNDRED
 FIVE  OF  THE  RACING, PARI-MUTUEL WAGERING AND BREEDING LAW IN THE SAME
 MANNER AND AMOUNTS AS IF SUCH PERSON WERE A LICENSEE. TIMELY PAYMENT  OF
 SUCH  TAXES  SHALL  NOT CONSTITUTE A DEFENSE TO ANY PROSECUTION OR OTHER
 PROCEEDING IN CONNECTION WITH THE INTERACTIVE GAMING EXCEPT FOR A PROSE-
 CUTION OR PROCEEDING ALLEGING FAILURE TO MAKE SUCH PAYMENT.
   § 4. Severability clause. If any provision of this act or  application
 thereof  shall  for  any  reason  be  adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder of the act, but shall be confined in its opera-
 tion  to  the  provision thereof directly involved in the controversy in
 which the judgment shall have been rendered.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.
 
                                 PART GGGG
 
   Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
 amended by adding a new section 103-a to read as follows:
   §  103-A.  RACING  FAN ADVISORY COUNCIL. THERE IS HEREBY ESTABLISHED A
 RACING FAN ADVISORY COUNCIL WITHIN THE COMMISSION WHICH WILL OPERATE  AS
 FOLLOWS:

 S. 2009--B                         178
 
   1.  THE COUNCIL SHALL BE COMPOSED OF FIVE MEMBERS. NONE OF THE MEMBERS
 OF THE COUNCIL SHALL BE EMPLOYEES OR OFFICERS OF THE  COMMISSION  OR  BE
 PAID  EMPLOYEES,  LOBBYISTS,  OR  OFFICERS OF ANY LICENSED OR FRANCHISED
 RACETRACK OR OFF-TRACK BETTING CORPORATION OR ANY NONPROFIT  CORPORATION
 WHICH  REPRESENTS  BREEDERS OR HORSEMEN. MEMBERS SHALL BE SELECTED BASED
 ON THEIR LONG-TERM  INVOLVEMENT  AND  INTEREST  IN,  KNOWLEDGE  OF,  AND
 DEVOTION TO THE SPORT OF HORSE RACING AS FANS OF THE SPORT. FIVE PERSONS
 SHALL  BE  APPOINTED  BY  THE  EXECUTIVE DIRECTOR OF THE COMMISSION. ONE
 PERSON SHALL BE APPOINTED UPON THE RECOMMENDATION OF THE CHAIRPERSON  OF
 THE  SENATE  COMMITTEE  ON  RACING,  GAMING AND WAGERING, AND ONE PERSON
 SHALL BE APPOINTED UPON THE RECOMMENDATION OF  THE  CHAIRPERSON  OF  THE
 ASSEMBLY COMMITTEE ON RACING AND WAGERING.
   2.  THE  CHAIRPERSON OF THE COUNCIL SHALL BE SELECTED BY THE EXECUTIVE
 DIRECTOR OF THE COMMISSION. THE DEPUTY CHAIRPERSON SHALL BE SELECTED  BY
 A  MAJORITY  VOTE OF THE COUNCIL FROM AMONG THE PERSONS APPOINTED AT THE
 RECOMMENDATION OF THE CHAIRPERSONS OF THE DESIGNATED LEGISLATIVE COMMIT-
 TEES.
   3. THE MEMBERS OF THE COUNCIL SHALL SERVE FOR A PERIOD OF  FIVE  YEARS
 WITH  ALL  TERMS BEGINNING SEPTEMBER FIRST, TWO THOUSAND SIXTEEN. IN THE
 EVENT OF A VACANCY OCCURRING DURING A TERM OF APPOINTMENT BY  REASON  OF
 DEATH, RESIGNATION, DISQUALIFICATION OR OTHERWISE, SUCH VACANCY SHALL BE
 FILLED  FOR  THE  UNEXPIRED  TERM  IN  THE  SAME  MANNER AS THE ORIGINAL
 APPOINTMENT.
   4. THE RACING FAN ADVISORY COUNCIL SHALL REQUEST AND SHALL RECEIVE THE
 ASSISTANCE AND COOPERATION OF THE COMMISSION IN  REGARD  TO  RECEIPT  OF
 INFORMATION RELATING TO HORSE RACING AND WAGERING IN THIS STATE.
   5. THE RACING FAN ADVISORY COUNCIL SHALL:
   (A)  HAVE  AS  ITS  MISSION  THE GROWTH OF THE FAN BASE RELATED TO THE
 SPORT OF HORSE RACING;
   (B) RECOMMEND PROCEDURES TO ENSURE THAT THE OPINION OF THE  FAN  IS  A
 CENTRAL PART OF THE REGULATION OF HORSE RACING;
   (C)  PREPARE  AN  ANNUAL REPORT, AND ANY OTHER REPORTS IT DEEMS NECES-
 SARY, TO THE COMMISSION REGARDING THE OPERATION OF THE STATE'S THOROUGH-
 BRED AND HARNESS RACETRACKS AND THE  STATE'S  OFF-TRACK  BETTING  CORPO-
 RATIONS;
   (D)  ADVISE  THE  COMMISSION  ON  APPROPRIATE ACTIONS TO ENCOURAGE FAN
 ATTENDANCE AND WAGERING AT THE STATE'S THOROUGHBRED  AND  HARNESS  RACE-
 TRACKS AND THE STATE'S OFF-TRACK BETTING CORPORATIONS;
   (E)  BE  AUTHORIZED BY THE COMMISSION TO ENTER UPON THE RACETRACKS AND
 THEIR FACILITIES REGULATED OR CONTROLLED BY THE BOARD DURING RACE TIMES,
 AND DURING PERIODS OF HORSE WORKOUTS, AND DURING HOURS WHEN  MEMBERS  OF
 THE MEDIA ARE PERMITTED TO BE PRESENT AT THE FACILITIES;
   (F)  RECOMMEND  CHANGES TO THE RULES OF THE COMMISSION AND TO THE LAWS
 AFFECTING HORSE RACING;
   (G) PERFORM SUCH OTHER DUTIES AS MAY BE  INCREASED  BY  ORDER  OF  THE
 COMMISSION;
   (H)  ENGAGE  NEW YORK STATE'S RACING FAN POPULATION ON HOW TO MAKE THE
 SPORT MORE APPEALING;
   (I) RECOMMEND TO THE COMMISSION FURTHER PROCEDURES TO MAKE STEWARD AND
 PRESIDING JUDGE ACTIONS THAT IMPACT THE BETTING PUBLIC MORE TRANSPARENT;
 AND
   (J) WORK WITH RELEVANT COMPONENT  INDUSTRIES  TO  BETTER  EDUCATE  THE
 CASUAL FAN AS TO SIGNIFICANT INDUSTRY TOPICS.
   §  2.  This act shall take effect immediately; provided, however, that
 the members of the racing fan advisory council as created by  resolution
 of  the  New York State Gaming Commission dated September 1, 2016, shall

 S. 2009--B                         179
 
 be the initial members of the racing fan advisory council as established
 by section one of this act.
 
                                 PART HHHH
 
   Section  1.  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] TWELVE percent for the first one hundred million dollars  annually
 and  [eight]  TEN 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 operations 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 over-
 all supervision of the division; provided, however, that the  additional
 vendor's marketing allowance shall not exceed [eight] TEN percent in any
 year  for any operator of a racetrack located in the county of Westches-
 ter 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 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] TWELVE percent on  total  revenue
 wagered  at  the  vendor  track after payout for prizes in excess of one
 hundred million  dollars  annually  provided,  however,  a  vendor  that
 receives  a  vendor fee pursuant to clause (G-1) of subparagraph (ii) of
 this paragraph shall receive an additional marketing allowance at a rate
 of [ten] TWELVE percent of  the  total  revenue  wagered  at  the  video
 lottery  gaming  facility  after  payout for prizes. In establishing the
 vendor fee,
   § 2. This act shall take effect immediately.
 
                                 PART IIII
 
   Section 1. Subparagraph (A)  of  paragraph  2  of  subsection  (t)  of
 section 606 of the tax law, as amended by section 1 of part N of chapter
 85 of the laws of 2002, is amended to read as follows:
   (A)  The  term  "allowable  college  tuition  expenses" shall mean the
 amount of qualified college tuition expenses of eligible  students  paid
 by the taxpayer during the taxable year, limited to ten thousand dollars
 for  each  such  student FOR TAXABLE YEARS BEGINNING BEFORE TWO THOUSAND
 SEVENTEEN. THE  AMOUNT  OF  ALLOWABLE  COLLEGE  TUITION  EXPENSES  SHALL
 INCREASE  BY AN ADDITIONAL FOUR THOUSAND DOLLARS FROM THE PREVIOUS TAXA-
 BLE YEAR, FOR EACH STUDENT, FOR EACH TAXABLE YEAR BEGINNING ON OR  AFTER
 TWO  THOUSAND  SEVENTEEN  UNTIL TAXABLE YEARS BEGINNING ON AND AFTER TWO
 THOUSAND TWENTY-SEVEN WHEN  THE  AMOUNT  OF  ALLOWABLE  COLLEGE  TUITION
 EXPENSES SHALL EQUAL THE AMOUNT FROM THE PREVIOUS TAXABLE YEAR;
   §  2.  Paragraph 4 of subsection (t) of section 606 of the tax law, as
 added by section 1 of part DD of chapter 63 of  the  laws  of  2000,  is
 amended to read as follows:
   (4)  Amount  of  credit.   [If] FOR TAXABLE YEARS BEGINNING BEFORE TWO
 THOUSAND SEVENTEEN, IF allowable college tuition expenses are less  than

 S. 2009--B                         180
 
 five  thousand  dollars,  the  amount  of the credit provided under this
 subsection shall be equal to the applicable percentage of the lesser  of
 allowable  college  tuition  expenses  or two hundred dollars.  [If] FOR
 TAXABLE  YEARS  BEGINNING  BEFORE  TWO  THOUSAND SEVENTEEN, IF allowable
 college tuition expenses are five thousand dollars or more,  the  amount
 of  the  credit  provided  under  this  subsection shall be equal to the
 applicable percentage of the allowable college tuition  expenses  multi-
 plied  by  four  percent.    FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO
 THOUSAND SEVENTEEN,  THE  AMOUNT  OF  THE  CREDIT  PROVIDED  UNDER  THIS
 SUBSECTION  SHALL BE EQUAL TO THE APPLICABLE PERCENTAGE OF THE ALLOWABLE
 COLLEGE TUITION EXPENSES MULTIPLIED BY  FIVE  PERCENT.  Such  applicable
 percentage  shall  be twenty-five percent for taxable years beginning in
 two thousand one, fifty percent for taxable years beginning in two thou-
 sand two, seventy-five percent for taxable years beginning in two  thou-
 sand three and one hundred percent for taxable years beginning after two
 thousand three.
   § 3. This act shall take effect immediately.
 
                                 PART JJJJ

   Section 1. The education law is amended by adding a new section 682 to
 read as follows:
   § 682. COLLEGE DEBT FREEDOM ACCOUNT PROGRAM. 1. THERE IS HEREBY ESTAB-
 LISHED  THE  COLLEGE  DEBT  FREEDOM  ACCOUNT PROGRAM. SUCH PROGRAM SHALL
 PERMIT EMPLOYEES TO DEPOSIT A PORTION OF THEIR PRE-TAX  INCOME  PURSUANT
 TO  PARAGRAPH  FORTY-TWO OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE
 OF THE TAX LAW,  INTO  AN  ACCOUNT  SOLELY  INTENDED  FOR  UNDERGRADUATE
 STUDENT  LOAN  REPAYMENTS.    EMPLOYERS  MAY ELECT TO PARTICIPATE IN THE
 PROGRAM AND RECEIVE A TAX CREDIT BY CONTRIBUTING MATCHING  FUNDS  TO  AN
 EMPLOYEE'S  STUDENT  LOAN REPAYMENT ACCOUNT ESTABLISHED PURSUANT TO THIS
 SECTION. SUCH CONTRIBUTION SHALL  BE  MINIMALLY  FIFTY  PERCENT  OF  THE
 EMPLOYEE'S  DEPOSIT  AND A MAXIMUM ONE HUNDRED PERCENT OF THE EMPLOYEE'S
 DEPOSIT, UP  TO  TWENTY-FIVE  HUNDRED  DOLLARS  ANNUALLY,  PER  EMPLOYEE
 ACCOUNT.
   2.  FOR  THE  PURPOSES  OF THIS SECTION, "STUDENT LOAN" SHALL MEAN THE
 CUMULATIVE TOTAL OF THE  ANNUAL  STUDENT  LOANS  COVERING  THE  COST  OF
 ATTENDANCE  AT  AN UNDERGRADUATE COLLEGE OR UNIVERSITY, AND ANY INTEREST
 THEREON.
   3. EMPLOYEE STUDENT LOAN REPAYMENT ACCOUNTS SHALL BE ESTABLISHED BY AN
 EMPLOYEE FOR DEPOSIT OF FUNDS TO BE USED SOLELY FOR REPAYMENT OF STUDENT
 LOANS. SUCH ACCOUNTS SHALL BE MANAGED BY THE HIGHER  EDUCATION  SERVICES
 CORPORATION. ALL ENROLLEES AND PARTICIPATING EMPLOYERS SHALL PROVIDE THE
 CORPORATION  WITH  ALL  NECESSARY  INFORMATION IN ORDER TO IMPLEMENT THE
 PROVISIONS OF THIS SECTION.
   4.  MONEYS IN A STUDENT LOAN REPAYMENT ACCOUNT SHALL BE AVAILABLE ONLY
 FOR REPAYMENTS OF STUDENT LOANS AS DEFINED IN THIS  SECTION.  ANY  WITH-
 DRAWAL  OR  DISTRIBUTION  FROM  A  STUDENT  LOAN REPAYMENT ACCOUNT WHICH
 VIOLATED THE PROVISIONS OF THIS SUBDIVISION SHALL BE SUBJECT TO A PENAL-
 TY OF TEN PERCENT ON ANY SUCH WITHDRAWAL OR DISTRIBUTION.
   5. THE COMMISSIONER AND THE COMMISSIONER OF TAXATION AND FINANCE SHALL
 JOINTLY PROMULGATE RULES AND  REGULATIONS  NECESSARY  TO  IMPLEMENT  THE
 PROVISIONS OF THIS SECTION.
   § 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 42 to read as follows:
   (42)  PAYMENT  NOT  IN  EXCESS OF TWENTY-FIVE HUNDRED DOLLARS ACTUALLY
 PAID BY AN ELIGIBLE BORROWER FOR STUDENT LOAN REPAYMENT, TO  THE  EXTENT

 S. 2009--B                         181
 
 NOT  DEDUCTIBLE  IN  DETERMINING  FEDERAL  ADJUSTED GROSS INCOME AND NOT
 REIMBURSED. FOR THE PURPOSES OF  THIS  PARAGRAPH,  THE  FOLLOWING  TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "STUDENT  LOANS"  SHALL  MEAN  ANY  INDEBTEDNESS  INCURRED BY THE
 TAXPAYER FOR AN UNDERGRADUATE EDUCATION LOAN IN ACCORDANCE WITH  SECTION
 221 OF THE INTERNAL REVENUE CODE.
   (B) "ELIGIBLE BORROWER" SHALL MEAN A TAXPAYER WHO HAS INCURRED INDEBT-
 EDNESS  ON  STUDENT  LOANS  AS DEFINED IN SUBPARAGRAPH (A) OF THIS PARA-
 GRAPH.
   § 3. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 49 to read as follows:
   49.  COLLEGE  DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (A) GENERAL. AN
 EMPLOYER WHO CONTRIBUTES MATCHING FUNDS TOWARDS AN EMPLOYEE'S UNDERGRAD-
 UATE STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE  COMPUTED
 AS  PROVIDED  IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTI-
 CLE, FOR CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO TWENTY-FIVE
 HUNDRED DOLLARS PER EMPLOYEE PER YEAR.
   (B) AMOUNT OF CREDIT. THE CREDIT AUTHORIZED BY THIS SECTION  SHALL  BE
 EQUAL  TO  THE AMOUNT OF THE EMPLOYER'S CONTRIBUTION; PROVIDED THAT SUCH
 CONTRIBUTION SHALL BE A MINIMUM OF FIFTY PERCENT AND A  MAXIMUM  OF  ONE
 HUNDRED  PERCENT  OF  THE EMPLOYEE'S DEPOSIT TO A STUDENT LOAN REPAYMENT
 ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBDIVISION.
   § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended by adding a new clause (xliii) to read as
 follows:
 (XLIII) COLLEGE DEBT                 AMOUNT OF CREDIT
 FREEDOM ACCOUNT                      UNDER SUBDIVISION FORTY-NINE
 PROGRAM TAX CREDIT UNDER             OF SECTION TWO HUNDRED TEN-B
 SUBSECTION (CCC)
   § 5. Section 606 of the tax law is amended by adding a new  subsection
 (ccc) to read as follows:
   (CCC) COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (A) GENERAL. AN
 EMPLOYER WHO CONTRIBUTES MATCHING FUNDS TOWARDS AN EMPLOYEE'S UNDERGRAD-
 UATE  STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED
 AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE,
 FOR CONTRIBUTIONS THE EMPLOYER  DEPOSITS  ANNUALLY,  UP  TO  TWENTY-FIVE
 HUNDRED DOLLARS PER EMPLOYEE PER YEAR.
   (B)  AMOUNT  OF CREDIT. THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE
 EQUAL TO THE AMOUNT OF THE EMPLOYER  CONTRIBUTION;  PROVIDED  THAT  SUCH
 CONTRIBUTION  SHALL  BE  A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF ONE
 HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A  STUDENT  LOAN  REPAYMENT
 ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBSECTION.
   §  6.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (dd) to read as follows:
   (DD) COLLEGE DEBT FREEDOM ACCOUNT PROGRAM TAX CREDIT. (1) GENERAL.  AN
 EMPLOYER WHO CONTRIBUTES MATCHING FUNDS TOWARDS AN EMPLOYEE'S UNDERGRAD-
 UATE  STUDENT LOAN REPAYMENTS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED
 AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY  THIS  ARTI-
 CLE, FOR CONTRIBUTIONS THE EMPLOYER DEPOSITS ANNUALLY, UP TO TWENTY-FIVE
 HUNDRED DOLLARS PER EMPLOYEE PER YEAR.
   (2)  AMOUNT  OF CREDIT. THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE
 EQUAL TO THE AMOUNT OF THE EMPLOYER'S CONTRIBUTION; PROVIDED  THAT  SUCH
 CONTRIBUTION  SHALL  BE  A MINIMUM OF FIFTY PERCENT AND A MAXIMUM OF ONE
 HUNDRED PERCENT OF THE EMPLOYEE'S DEPOSIT TO A  STUDENT  LOAN  REPAYMENT
 ACCOUNT SUBJECT TO THE LIMITS SET FORTH IN THIS SUBDIVISION.

 S. 2009--B                         182
 
   §  7.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.
 
                                 PART KKKK
 
   Section 1. The state finance law is amended by adding a new article 17
 to read as follows:
                                ARTICLE 17
                      ANNUAL SPENDING GROWTH CAP ACT
 SECTION 244. DEFINITIONS.
         245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.
         246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.
   § 244. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS, UNLESS OTHERWISE SPECIFIED:
   1.  "ANNUAL SPENDING GROWTH CAP" SHALL MEAN A PERCENTAGE DETERMINED BY
 ADDING THE INFLATION RATES FROM EACH OF THE THREE CALENDAR  YEARS  IMME-
 DIATELY PRIOR TO THE COMMENCEMENT OF A GIVEN FISCAL YEAR AND THEN DIVID-
 ING THAT SUM BY THREE.
   2. "STATE OPERATING FUNDS SPENDING" SHALL MEAN ANNUAL DISBURSEMENTS OF
 ALL GOVERNMENTAL FUND TYPES INCLUDED IN THE CASH-BASIS FINANCIAL PLAN OF
 THE  STATE,  EXCLUDING  DISBURSEMENTS  FROM  FEDERAL  FUNDS  AND CAPITAL
 PROJECT FUNDS.
   3. "INFLATION RATE" SHALL MEAN THE PERCENTAGE CHANGE  IN  THE  TWELVE-
 MONTH  AVERAGE  OF  THE  CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS AS
 PUBLISHED BY THE UNITED STATES DEPARTMENT  OF  LABOR,  BUREAU  OF  LABOR
 STATISTICS OR ANY SUCCESSOR AGENCY FOR A GIVEN CALENDAR YEAR COMPARED TO
 THE PRIOR CALENDAR YEAR.
   4.  "EXECUTIVE BUDGET" SHALL MEAN THE BUDGET SUBMITTED ANNUALLY BY THE
 GOVERNOR  PURSUANT  TO SECTION ONE OF ARTICLE VII OF THE STATE CONSTITU-
 TION.
   5.  "STATE BUDGET AS ENACTED" SHALL MEAN THE BUDGET ACTED UPON BY  THE
 LEGISLATURE  IN A GIVEN FISCAL YEAR, AS SUBJECT TO SECTION FOUR OF ARTI-
 CLE VII OF THE STATE CONSTITUTION AND SECTION SEVEN OF ARTICLE IV OF THE
 STATE CONSTITUTION.
   6. "EMERGENCY" SHALL MEAN AN EXTRAORDINARY, UNFORESEEN, OR  UNEXPECTED
 OCCURRENCE,  OR  COMBINATION OF CIRCUMSTANCES, INCLUDING BUT NOT LIMITED
 TO A NATURAL DISASTER, INVASION, TERRORIST ATTACK, OR ECONOMIC CALAMITY.
   § 245. ESTABLISHMENT OF ANNUAL SPENDING GROWTH CAP.  1. THERE IS HERE-
 BY ESTABLISHED AN ANNUAL SPENDING GROWTH CAP.
   2. THE GOVERNOR SHALL NOT SUBMIT, AND THE LEGISLATURE  SHALL  NOT  ACT
 UPON, A BUDGET THAT CONTAINS A PERCENTAGE INCREASE OVER THE PRIOR FISCAL
 YEAR IN STATE OPERATING FUNDS SPENDING WHICH EXCEEDS THE ANNUAL SPENDING
 GROWTH CAP.
   3.  THE  GOVERNOR  SHALL CERTIFY IN WRITING THAT STATE OPERATING FUNDS
 SPENDING IN THE EXECUTIVE BUDGET DOES NOT  EXCEED  THE  ANNUAL  SPENDING
 GROWTH  CAP. IF FINAL INFLATION RATE DATA FOR THE PRIOR CALENDAR YEAR IS
 NOT YET AVAILABLE AT THE TIME THE GOVERNOR SUBMITS HIS OR HER  EXECUTIVE
 BUDGET,  HE  OR  SHE  SHALL  FURNISH A REASONABLE ESTIMATE OF SUCH PRIOR
 CALENDAR YEAR INFLATION RATE.
   4. THE COMPTROLLER SHALL PROVIDE, WITHIN FIVE DAYS OF  ACTION  BY  THE
 LEGISLATURE  UPON  THE  BUDGET,  A DETERMINATION AS TO WHETHER THE STATE
 OPERATING FUNDS SPENDING AS SET FORTH IN THE  STATE  BUDGET  AS  ENACTED
 EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
   5. IF THE COMPTROLLER FINDS THAT STATE OPERATING FUNDS SPENDING AS SET
 FORTH  IN THE STATE BUDGET AS ENACTED EXCEEDS THE ANNUAL SPENDING GROWTH

 S. 2009--B                         183
 
 CAP, THE GOVERNOR SHALL TAKE CORRECTIVE ACTION TO ENSURE THAT FUNDING IS
 LIMITED TO THE AMOUNT OF THE ANNUAL SPENDING CAP.
   § 246. PROVISIONS REGARDING DECLARATION OF EMERGENCY.  1. UPON A FIND-
 ING  OF AN EMERGENCY BY THE GOVERNOR, HE OR SHE MAY DECLARE AN EMERGENCY
 BY AN EXECUTIVE ORDER WHICH SHALL SET FORTH THE REASONS FOR SUCH  DECLA-
 RATION.
   2.  BASED  UPON  SUCH  DECLARATION,  THE  GOVERNOR MAY SUBMIT, AND THE
 LEGISLATURE MAY AUTHORIZE,  BY  A  TWO-THIRDS  SUPERMAJORITY,  A  BUDGET
 CONTAINING  A  PERCENTAGE  INCREASE  OVER THE PRIOR FISCAL YEAR IN STATE
 OPERATING FUNDS SPENDING THAT EXCEEDS THE ANNUAL SPENDING GROWTH CAP.
   § 2. Subdivision 2 of section 92-cc  of  the  state  finance  law,  as
 amended  by section 12-a of part I of chapter 60 of the laws of 2015, is
 amended to read as follows:
   2. Such fund shall have a maximum balance not to exceed [five] TEN per
 centum of the aggregate amount projected to be disbursed from the gener-
 al fund during the fiscal year immediately  following  the  then-current
 fiscal  year.  At  the  request of the director of the budget, the state
 comptroller shall transfer monies to the rainy day reserve  fund  up  to
 and including an amount equivalent to seventy-five one-hundredths of one
 per  centum  of  the aggregate amount projected to be disbursed from the
 general fund during the then-current fiscal year, unless  such  transfer
 would increase the rainy day reserve fund to an amount in excess of five
 per  centum  of  the aggregate amount projected to be disbursed from the
 general fund during the fiscal year immediately following the  then-cur-
 rent  fiscal year, in which event such transfer shall be limited to such
 amount as will increase the rainy day reserve  fund  to  such  five  per
 centum limitation.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law.
 
                                 PART LLLL
 
   Section 1. Section 1325 of the racing, pari-mutuel wagering and breed-
 ing law, as added by chapter 174 of the laws of 2013, is amended to read
 as follows:
   § 1325. Approval, denial and renewal of employee licenses  and  regis-
 trations. 1. Upon the filing of an application for a casino key employee
 license  or  gaming  employee  registration required by this article and
 after submission of such supplemental information as the commission  may
 require,  the  commission  shall REQUEST THE DIVISION OF STATE POLICE TO
 conduct [or cause to be conducted such] AN investigation into the quali-
 fication of the applicant, and the commission shall conduct  such  hear-
 ings  concerning  the qualification of the applicant, in accordance with
 its regulations, as may be necessary to determine qualification for such
 license.
   1-A. THE COST OF ANY SUCH INVESTIGATION SHALL BE BORNE BY  THE  GAMING
 FACILITY  THAT  INITIALLY  EMPLOYS  OR  EXTENDS EMPLOYMENT TO A LICENSEE
 PURSUANT TO THIS TITLE AFTER THE APPROVAL OR RENEWAL OF A LICENSE PURSU-
 ANT TO THIS TITLE AND SHALL BE PAID IN A TIME AND MANNER  DETERMINED  BY
 THE COMMISSION.
   2. After such investigation, the commission may either deny the appli-
 cation or grant a license to an applicant whom it determines to be qual-
 ified to hold such license.
   3.  The  commission  shall  have the authority to deny any application
 pursuant to the provisions of this article following notice and opportu-
 nity for hearing.

 S. 2009--B                         184
 
   4. When the commission grants an application, the commission may limit
 or place such restrictions thereupon as it may  deem  necessary  in  the
 public interest.
   5.  After  an application for a casino key employee license is submit-
 ted, final action of the commission shall be taken  within  ninety  days
 after  completion  of all hearings and investigations and the receipt of
 all information required by the commission.
   6. Licenses and registrations  of  casino  key  employees  and  gaming
 employees  issued  pursuant  to this article shall remain valid for five
 years unless suspended, revoked or voided pursuant to law. Such licenses
 and registrations may be renewed by the holder thereof upon application,
 on a form prescribed by the commission, and payment  of  the  applicable
 fee.  Notwithstanding  the forgoing, if a gaming employee registrant has
 not been employed in any position within a gaming facility for a  period
 of three years, the registration of that gaming employee shall lapse.
   [8]  7.  The commission shall establish by regulation appropriate fees
 to be paid upon the filing of the required applications. Such fees shall
 be deposited into the commercial gaming revenue fund.
   § 2. This act shall take effect immediately.
 
                                 PART MMMM
 
   Section 1. Section 1604 of the tax law is amended by adding  four  new
 subdivisions d, e, f and g to read as follows:
   D.  THE  DIVISION  MAY  CONTRACT WITH ONE OR MORE PERSONS TO ALLOW THE
 PLACEMENT OF ADVERTISING OR  PROMOTIONAL  MATERIAL  ON  AVAILABLE  MEDIA
 RELATED TO ANY ONLINE LOTTERY GAME OR TO SPONSOR INDIVIDUAL DRAWS IN ANY
 ONLINE  LOTTERY  GAME. IF THE DIVISION ENTERS INTO A CONTRACT UNDER THIS
 SUBDIVISION, THE DIVISION SHALL ALLOW AT LEAST ONE MINUTE BETWEEN  DRAWS
 OF  ONLINE  LOTTERY GAMES DURING WHICH ONE OR MORE ADVERTISEMENTS MAY BE
 EXHIBITED.
   E. A CONTRACT ENTERED INTO UNDER SUBDIVISION D OF THIS  SECTION  SHALL
 PROVIDE  THAT  ANY  ADVERTISEMENTS  EXHIBITED  BETWEEN  DRAWS  OF ONLINE
 LOTTERY GAMES SHALL COMPLY WITH CONTENT REGULATIONS FOR TELEVISED BROAD-
 CAST ADOPTED BY THE FEDERAL COMMUNICATIONS COMMISSION, WITH  THE  EXCEP-
 TION  THAT  THE  ADVERTISING  UNDER  SUBDIVISION  D  OF THIS SECTION MAY
 INCLUDE ADVERTISEMENTS FOR ALCOHOLIC BEVERAGES WITH RESTRICTIONS IMPOSED
 ONLY BY THE DIVISION.
   F. THE DIVISION SHALL SOLICIT BIDS FROM RESPONSIBLE PERSONS FOR ADVER-
 TISING OR PROMOTIONAL CONTRACTS UNDER SUBDIVISION D OF THIS SECTION. THE
 DIVISION SHALL SELECT FROM AMONG THE BIDS RECEIVED SO AS TO PRODUCE  THE
 MAXIMUM  AMOUNT OF NET REVENUE FOR THE STATE CONSISTENT WITH THE GENERAL
 WELFARE OF THE CITIZENS OF THE STATE. IN DECIDING WHETHER TO ENTER  INTO
 A  CONTRACT  UNDER  SUBDIVISION  D  OF  THIS SECTION, THE DIVISION SHALL
 CONSIDER WHETHER THE TERMS OF THE CONTRACT ARE COMPARABLE TO  THE  TERMS
 OF  SIMILAR  ADVERTISING OR PROMOTIONAL CONTRACTS RELATING TO LOTTERY OR
 OTHER GAMING IN OTHER STATES.
   G. THE  DIVISION,  SUBJECT  TO  APPLICABLE  LAWS  RELATING  TO  PUBLIC
 CONTRACTS,  MAY  ENTER  INTO CONTRACTS WITH ONE OR MORE PERSONS TO ALLOW
 THE PLACEMENT OF ADVERTISING OR PROMOTIONAL MATERIAL, INCLUDING BUT  NOT
 LIMITED  TO,  THE  PLACEMENT  OF  DISCOUNT  COUPONS FOR RETAIL GOODS, ON
 LOTTERY TICKETS, SHARES, AND OTHER AVAILABLE MEDIA UNDER THE CONTROL  OF
 THE  DIVISION. HOWEVER, EXCEPT FOR ADVERTISING THAT PROMOTES RESPONSIBLE
 CONSUMPTION OF ALCOHOLIC BEVERAGES, THE DIVISION  SHALL  NOT  ALLOW  THE
 PLACEMENT  OF  ADVERTISING FOR THE PROMOTION OF THE CONSUMPTION OF ALCO-

 S. 2009--B                         185
 
 HOLIC BEVERAGES OR TOBACCO PRODUCTS ON LOTTERY TICKETS UNDER THE CONTROL
 OF THE DIVISION.
   § 2. This act shall take effect immediately.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 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 MMMM of this act shall
 be as specifically set forth in the last section of such Parts.

2017-S2009C (ACTIVE) - Details

See Assembly Version of this Bill:: A3009
Law Section:: Budget Bills
Laws Affected:: Amd Various Laws, generally

2017-S2009C (ACTIVE) - Summary

2017-S2009C (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 2009--C                                            A. 3009--C
 
                       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  --  committee  discharged,  bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 IN ASSEMBLY -- A BUDGET BILL, submitted  by  the  Governor  pursuant  to
   article  seven  of  the  Constitution -- read once and referred to the
   Committee on Ways and Means --  committee  discharged,  bill  amended,
   ordered  reprinted  as  amended  and  recommitted to said committee --
   again reported from said committee with amendments, ordered  reprinted
   as  amended  and  recommitted to said committee -- again reported from
   said committee with  amendments,  ordered  reprinted  as  amended  and
   recommitted to said committee
 
 AN  ACT  intentionally omitted (Part A); 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);  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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD12574-08-7

 S. 2009--C                          2                         A. 3009--C
 
   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);  and  to
   amend  the  labor law and the tax law, in relation to establishing the
   empire state apprenticeship tax credit program (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 liability companies that are  disregarded  entities  in
   determining  eligibility  for  tax  credits (Part Q); to amend the tax
   law, in relation to extending the top personal income tax rate for two
   years; and to repeal subparagraph (B) of  paragraph  1  of  subsection
   (a),  subparagraph  (B)  of paragraph 1 of subsection (b) and subpara-
   graph (B) of paragraph 1 of subsection (c) of section 601 of  the  tax
   law,  relating to the imposition of tax (Part R); to amend the tax law
   and the administrative code of the city of New York,  in  relation  to
   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 financial institution data match system for state tax
   collection purposes; and providing for the repeal of  such  provisions
   upon  expiration  thereof  (Part  U);  intentionally omitted (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);  intentionally omitted (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); intentionally omitted (Part BB); to amend the tax
   law, in relation to closing the  existing  tax  loopholes  for  trans-
   actions  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); intentionally  omit-
   ted  (Part EE); intentionally omitted (Part FF); intentionally omitted
   (Part GG); intentionally  omitted  (Part  HH);  intentionally  omitted
   (Part  II);  intentionally  omitted  (Part  JJ); intentionally omitted
   (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 executive law, in
   relation  to  the powers and duties of the state bingo control commis-
   sion; and to amend the general municipal law,  in  relation  to  bingo
   games  (Part MM); to amend the racing, pari-mutuel wagering and breed-
   ing law, in relation to allowing for the reprivatization of NYRA (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; to amend chapter 346 of the laws of  1990  amending  the
   racing,  pari-mutuel wagering and breeding law and other laws relating
   to simulcasting and the imposition of certain taxes,  in  relation  to

 S. 2009--C                          3                         A. 3009--C
 
   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  racing, pari-mutuel wagering and
   breeding law and the workers' compensation law, in relation to the New
   York Jockey Injury Compensation Fund, Inc. (Part SS); to amend the tax
   law and the real property tax law, in relation to changing the  calcu-
   lation  of STAR credit (Part TT); to amend the tax law, in relation to
   the prepaid sales tax on motor fuel and diesel motor fuel under  arti-
   cle  28 thereof (Part UU); to amend the tax law and the administrative
   code of the city of New  York,  in  relation  to  qualified  financial
   instruments  of  RICS  and  REITS  (Part VV); to amend the tax law, in
   relation to exempting certain monuments from sales and use taxes (Part
   WW); to amend the New York state urban development corporation act, in
   relation to certain qualified entities (Part XX); to amend the econom-
   ic development law, in relation to excelsior research and  development
   tax  credits  (Part  YY);  to  amend  the economic development law, in
   relation to eligibility to participate in the excelsior  jobs  program
   (Part  ZZ);  to  amend the vehicle and traffic law, the insurance law,
   the executive law, the general municipal  law  and  the  tax  law,  in
   relation to the regulation of transportation network company services;
   to  establish  the New York State TNC Accessibility Task Force and the
   New York  state  transportation  network  company  review  board;  and
   providing  for the repeal of certain provisions relating thereto (Part
   AAA); to  establish  the  county-wide  shared  services  property  tax
   savings  law  (Part  BBB);  to  amend chapter 261 of the laws of 1988,
   amending the state finance law and other laws relating to the New York
   state infrastructure trust fund,  in  relation  to  the  minority  and
   women-owned  business  enterprise program (Part CCC); to amend the tax
   law, in relation to  the  establishment  of  a  tax  credit  for  farm
   donations  to  food  pantries  (Part  DDD);  to  amend the tax law, in
   relation to the imposition of a surcharge on prepaid wireless communi-
   cations service and to repeal certain provisions  of  the  county  law
   relating  thereto  (Part  EEE);  to  amend  the  public health law, in
   relation to the health  care  facility  transformation  program  (Part
   FFF); to amend the public health law, in relation to managed long term
   care  plans and demonstrations (Part GGG); to amend the education law,
   in relation to establishing the excelsior scholarship (Part  HHH);  to
   amend  the education law, in relation to establishing enhanced tuition
   assistance program awards (Part III); to amend the education  law,  in
   relation to the NY-SUNY 2020 challenge grant program act; and to amend
   chapter  260  of  the laws of 2011, amending the education law and the
   New York state urban development corporation act  relating  to  estab-
   lishing  components  of  the  NY-SUNY 2020 challenge grant program, in
   relation to the effectiveness thereof (Part JJJ); to amend the  educa-
   tion  law, in relation to a New York state part-time scholarship award
   program (Part KKK); requiring the president of  the  higher  education
   services corporation to report on options to make college more afford-
   able  for  New  York  students  and  providing  for the repeal of such
   provisions upon expiration thereof (Part LLL); to amend the  education
   law,  in  relation  to  establishing  the New York state child welfare
   worker incentive scholarship program and  the  New  York  state  child
   welfare worker loan forgiveness incentive program (Part MMM); to amend
   the  workers' compensation law, in relation to the schedule of compen-

 S. 2009--C                          4                         A. 3009--C
 
   sation in the case of injury, and in relation to appeals (Subpart  A);
   to  amend  the workers' compensation law, in relation to requiring the
   drafting of permanency impairment guidelines (Subpart B); to amend the
   workers'  compensation  law,  in  relation to a comprehensive pharmacy
   benefit plan and prescription drug formulary (Subpart C); to amend the
   workers' compensation law, in relation to penalties for failure to pay
   compensation (Subpart D); to amend the workers' compensation  law,  in
   relation  to  assumption  of  workers' compensation liability policies
   (Subpart E); to amend chapter 11 of the  laws  of  2008  amending  the
   workers'  compensation law, the insurance law, the volunteer ambulance
   workers' benefit law  and  the  volunteer  firefighters'  benefit  law
   relating  to  rates  for  workers'  compensation insurance and setting
   forth conditions for workers' compensation rate service  organization,
   in  relation  to the effectiveness thereof; and to amend the insurance
   law, in relation to workers' compensation rate  service  organizations
   (Subpart  F);  to  amend the workers' compensation law, in relation to
   requiring a study on independent medical examinations (Subpart G); and
   to amend the workers' compensation law, in relation  to  security  for
   payment  of  compensation  (Subpart  H); to amend the workers' compen-
   sation law, in relation to liability for compensation (Subpart I); and
   to amend the workers' compensation law, in relation to assessments for
   annual expenses; and providing for the repeal  of  certain  provisions
   upon  expiration thereof (Subpart J) (Part NNN); to amend the tax law,
   in relation to allowing an additional New York itemized deduction  for
   union  dues not included in federal itemized deductions (Part OOO); to
   amend the executive law and the criminal procedure law, in relation to
   the establishment of the office of the inspector general of  New  York
   for  transportation  (Part  PPP);  authorizing the transfer of certain
   expenditures and disbursements; and to repeal a chapter of the laws of
   2017 making appropriations for the support of government, as  proposed
   in  legislative bills numbers S.5492 and A.7068 relating thereto (Part
   QQQ); to amend the infrastructure investment act, in relation  to  the
   definition  of  an  authorized  entity  that  may utilize design-build
   contracts, and in relation to the effectiveness thereof (Part RRR); to
   amend the retirement and social security law, in relation to disabili-
   ty benefits for certain members of the New York  city  police  pension
   fund  (Part  SSS);  to amend the real property tax law, in relation to
   the  affordable  New  York  housing  program  and  to  repeal  certain
   provisions  of  such  law  relating  thereto  (Part TTT); to amend the
   economic development law, in relation to comprehensive economic devel-
   opment reporting; and to repeal section 438 of the  economic  develop-
   ment  law relating thereto (Part UUU); to amend the criminal procedure
   law, the family court act and the executive law, in relation to state-
   ments of those accused of crimes and  eyewitness  identifications,  to
   enhance criminal investigations and prosecutions and to promote confi-
   dence in the criminal justice system of this state; to amend the coun-
   ty  law  and the executive law, in relation to the implementation of a
   plan regarding indigent legal services (Part VVV); to amend the crimi-
   nal procedure law, the penal law, the executive law, the family  court
   act,  the  social services law, the correction law, the county law and
   the state finance law, in relation to proceedings against juvenile and
   adolescent offenders and the age of juvenile and adolescent  offenders
   and  to repeal certain provisions of the criminal procedure law relat-
   ing thereto (Part WWW); to provide for the administration  of  certain
   funds  and  accounts  related  to  the  2017-18 budget and authorizing
   certain payments and transfers; to amend the  state  finance  law,  in

 S. 2009--C                          5                         A. 3009--C
 
   relation  to  the  school  tax relief fund and payments, transfers and
   deposits; to amend chapter 62 of the laws of 2003 amending the general
   business law and other laws relating to implementing the state  fiscal
   plan  for  the 2003-2004 state fiscal year, in relation to the deposit
   provisions of the tobacco settlement  financing  corporation  act;  to
   amend  the  state finance law, in relation to establishing the retiree
   health benefit trust fund; to amend chapter 174 of the  laws  of  1968
   constituting  the New York state urban development corporation act, in
   relation to funding project costs undertaken by non-public schools; to
   amend the  New  York  state  urban  development  corporation  act,  in
   relation  to  funding  project  costs for certain capital projects; to
   amend chapter 389 of the laws of 1997, relating to  the  financing  of
   the  correctional  facilities  improvement fund and the youth facility
   improvement fund, in relation to the issuance of bonds; to  amend  the
   private  housing finance law, in relation to housing program bonds and
   notes; to amend chapter 329 of the laws of 1991,  amending  the  state
   finance  law and other laws relating to the establishment of the dedi-
   cated highway and bridge trust fund, in relation to  the  issuance  of
   bonds;  to  amend the public authorities law, in relation to the issu-
   ance of bonds by the dormitory authority; to amend chapter 61  of  the
   laws  of  2005 relating to providing for the administration of certain
   funds and accounts related to the 2005-2006  budget,  in  relation  to
   issuance  of  bonds by the urban development corporation; to amend the
   New York state urban development corporation act, in relation  to  the
   issuance of bonds; to amend the public authorities law, in relation to
   the state environmental infrastructure projects; to amend the New York
   state  urban  development  corporation act, in relation to authorizing
   the urban development corporation to issue bonds to fund project costs
   for the implementation  of  a  NY-CUNY  challenge  grant  program  and
   increasing  the  bonding limit for certain state and municipal facili-
   ties; to amend chapter 61 of the laws of 2005, relating  to  providing
   for  the  administration  of certain funds and accounts related to the
   2005-2006 budget, in relation to  increasing  the  bonding  limit  for
   certain  public protection facilities; to amend chapter 81 of the laws
   of 2002, relating to providing for the administration of certain funds
   and accounts related to the 2002-2003 budget, in relation to  increas-
   ing  the  aggregate amount of bonds to be issued by the New York state
   urban development corporation; to amend the public authorities law, in
   relation to financing  of  peace  bridge  and  transportation  capital
   projects; to amend the public authorities law, in relation to dormito-
   ries  at  certain  educational  institutions other than state operated
   institutions and statutory or contract colleges under the jurisdiction
   of the state university of New York;  to  amend  the  New  York  state
   medical  care  facilities finance agency act, in relation to bonds and
   mental health facilities improvement notes; to amend the state finance
   law and the public authorities law, in  relation  to  funding  certain
   capital  projects and the issuance of bonds; to repeal sections 58, 59
   and 60 of the state finance law relating thereto;  and  providing  for
   the  repeal  of certain provisions upon expiration thereof (Part XXX);
   and to amend the education law, in relation to  contracts  for  excel-
   lence  and  the apportionment of public moneys; to amend the education
   law, in relation to requiring the commissioner of education to include
   certain information in the official score report of all  students;  to
   amend  the  education  law,  in relation to charter school tuition and
   facility aid for charter schools; relating  to  apportionment  to  the
   Haverstraw-Stony  Point central school district; relating to penalties

 S. 2009--C                          6                         A. 3009--C
 
   arising from late final cost reports; to amend chapter 425 of the laws
   of 2002, amending the education  law  relating  to  the  provision  of
   supplemental  educational services, attendance at a safe public school
   and  the  suspension  of  pupils  who  bring a firearm to or possess a
   firearm at a school, in relation  to  the  effectiveness  thereof;  to
   amend  the  education  law,  in  relation  to English language learner
   pupils; to amend chapter 101 of the laws of 2003, amending the  educa-
   tion  law  relating  to the implementation of the No Child Left Behind
   Act of 2001, in relation to the effectiveness thereof;  to  amend  the
   education  law, in relation to transportable classroom units; to amend
   chapter 507 of the laws of 1974 relating to providing for  the  appor-
   tionment  of  state  monies to certain nonpublic schools, to reimburse
   them for their expenses in complying with certain  state  requirements
   for  the  administration  of state testing and evaluation programs and
   for participation in state programs for the reporting of basic  educa-
   tional data, in relation to the state's immunization program; to amend
   the education law, in relation to grants for hiring teachers; to amend
   the  education law, in relation to foundation aid; to amend the educa-
   tion law, in relation to education of Native American pupils; to amend
   the education law, in relation to additional expanded prekindergarten;
   to amend the education law, in relation to conforming  foundation  aid
   base change to accommodate pulling out community schools; to amend the
   education  law, in relation to establishing a foundation aid phase-in;
   and in relation to maintenance of effort reduction; and in relation to
   general aid for  public  schools;  to  amend  the  education  law,  in
   relation  to  state  aid  adjustments;  to amend the education law, in
   relation to the teachers of tomorrow teacher recruitment and retention
   program; to amend the education law, in relation to  class  sizes  for
   special  classes containing certain students with disabilities; relat-
   ing to the Hendrick Hudson reserve fund; to amend the  education  law,
   in relation to approved reimbursement for preschool integrated special
   class  programs;  to  amend  part  B of chapter 57 of the laws of 2008
   amending the education law relating to the universal  pre-kindergarten
   program,  in  relation  to the effectiveness thereof; to amend chapter
   121 of the laws of 1996 relating to authorizing  the  Roosevelt  union
   free  school  district  to  finance deficits by the issuance of serial
   bonds, in relation to certain apportionments;  to  amend  the  general
   municipal  law,  in  relation to contracts for the purchase of certain
   produce; to amend chapter 472 of the laws of 1998 amending the  educa-
   tion  law relating to the lease of school buses by school districts in
   relation to the effectiveness thereof; to amend chapter 82 of the laws
   of 1995, amending the education law and certain other laws relating to
   state aid to school districts and the appropriation of funds  for  the
   support  of  government,  in relation to the effectiveness thereof; to
   amend chapter 756 of the laws of 1992, relating to funding  a  program
   for work force education conducted by the consortium for worker educa-
   tion in New York city, in relation to reimbursements for the 2017-2018
   school  year;  to  amend  chapter 756 of the laws of 1992, relating to
   funding a program for work force education conducted by the consortium
   for worker education in New York city, in relation  to  withholding  a
   portion of employment preparation education aid and in relation to the
   effectiveness thereof; to amend chapter 89 of the laws of 2016, relat-
   ing  to supplementary funding for dedicated programs for public school
   students in the East Ramapo central school district,  in  relation  to
   reimbursement  to  such  school district and in relation to the effec-
   tiveness thereof; to amend chapter 147 of the laws of  2001,  amending

 S. 2009--C                          7                         A. 3009--C
 
   the  education  law  relating  to  conditional  appointment  of school
   district, charter school or BOCES employees, in relation to the effec-
   tiveness thereof; relating to school bus driver training; relating  to
   special apportionment for salary expenses and public pension accruals;
   relating  to  suballocations  of  appropriations; relating to the city
   school district of the city of Rochester; relating to total foundation
   aid for the purpose of the development, maintenance  or  expansion  of
   certain  magnet  schools  or  magnet school programs for the 2017-2018
   school year; relating to support of public libraries; to amend chapter
   57 of the laws of 2004, relating  to  the  support  of  education,  in
   relation  to  the  effectiveness  thereof; to amend chapter 658 of the
   laws of 2002, amending the  education  law,  relating  to  citizenship
   requirements  for permanent certification as a teacher, in relation to
   extending the effectiveness thereof; to amend the  education  law,  in
   relation  to  serving  persons  twenty-one years of age or older (Part
   YYY)
 
   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 YYY. 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
 
                                  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

 S. 2009--C                          8                         A. 3009--C
 
 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.
   [(3)]  (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

 S. 2009--C                          9                         A. 3009--C
 
                                          $12,000
 OVER $500,000                              NOT APPLICABLE
   (5) Part-year residents. If a taxpayer changes status during the taxa-
 ble  year from resident to nonresident, or from nonresident to resident,
 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
                                          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

 S. 2009--C                         10                         A. 3009--C
 
   (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 SEVENTEEN:
 
 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

 S. 2009--C                         11                         A. 3009--C
 
 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
 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

 S. 2009--C                         12                         A. 3009--C
 
   (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
   (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 $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:

 S. 2009--C                         13                         A. 3009--C
 
 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 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

 S. 2009--C                         14                         A. 3009--C
 
                                         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.
   § 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:

 S. 2009--C                         15                         A. 3009--C
 
   §  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 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,  AND  HAS
 PROVIDED A COPY TO THE COLLECTING OFFICER AT LEAST SIXTY DAYS BEFORE THE
 LAST  DATE SET BY LAW FOR THE DELIVERY OF THE TAX ROLL TO THE COLLECTING
 OFFICER, THE COLLECTING OFFICER SHALL BE AUTHORIZED  TO  ACCEPT  PARTIAL
 PAYMENTS  OF SCHOOL DISTRICT TAXES UNDER THE CONDITIONS SPECIFIED IN THE
 SCHOOL DISTRICT'S RESOLUTION, SUBJECT TO THE FOLLOWING:
   (I) IF THE CONDITIONS SET BY THE SCHOOL DISTRICT UPON PARTIAL PAYMENTS
 DIFFER FROM THOSE SET BY THE CITY OR TOWN, AND IN THE  JUDGMENT  OF  THE
 COLLECTING  OFFICER  IT  WOULD  BE  BURDENSOME  TO  ADMINISTER THEM, THE
 COLLECTING OFFICER MAY  NOTIFY  THE  SCHOOL  DISTRICT  THAT  THE  SCHOOL
 DISTRICT'S  CONDITIONS ARE NOT ACCEPTABLE. SUCH NOTICE SHALL BE PROVIDED
 NO LATER THAN FIFTEEN DAYS AFTER THE DATE ON WHICH THE COLLECTING  OFFI-
 CER  RECEIVED  A  COPY  OF THE SCHOOL DISTRICT RESOLUTION, OR FORTY-FIVE
 DAYS BEFORE THE LAST DATE SET BY LAW FOR THE DELIVERY OF THE TAX ROLL TO
 THE COLLECTING OFFICER, WHICHEVER IS LATER.
   (II) WHERE SUCH NOTICE HAS BEEN PROVIDED, 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, UNLESS THE
 SCHOOL DISTRICT NOTIFIES THE COLLECTING OFFICER THAT THE CITY OR  TOWN'S
 CONDITIONS  ARE  NOT  ACCEPTABLE. SUCH NOTICE SHALL BE PROVIDED NO LATER
 THAN FIFTEEN DAYS AFTER THE DATE ON WHICH THE SCHOOL  DISTRICT  RECEIVED
 THE  COLLECTING  OFFICER'S  NOTICE, OR THIRTY DAYS BEFORE THAT LAST DATE
 SET BY LAW FOR THE DELIVERY OF THE TAX ROLL TO THE  COLLECTING  OFFICER,
 WHICHEVER IS LATER.
   (III)  WHERE  SUCH  NOTICE  HAS  BEEN PROVIDED, THE COLLECTING OFFICER
 SHALL NOT BE AUTHORIZED TO ACCEPT PARTIAL PAYMENTS  OF  SCHOOL  DISTRICT
 TAXES.
   (D)  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

 S. 2009--C                         16                         A. 3009--C
 
 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.
   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, provided, however, that
 in the case of a county  that  had  adopted  a  resolution  pursuant  to
 section  928-a  of the real property tax law as such section read on the
 date immediately preceding the effective date of this  act,  the  former
 provisions  of  such  section  928-a  shall  remain in effect until such
 resolution shall be repealed by the county.
 
                                  PART G
 
   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 MAY BE DISCLOSED TO  ASSESSORS  AND
 COUNTY  DIRECTORS  OF  REAL PROPERTY TAX SERVICES. IN ADDITION, WHERE AN
 AGREEMENT IS IN PLACE BETWEEN THE COMMISSIONER AND THE HEAD OF  THE  TAX
 DEPARTMENT  OF  ANOTHER STATE, SUCH INFORMATION MAY BE DISCLOSED TO SUCH
 OFFICIAL OR HIS OR HER DESIGNEES.  SUCH INFORMATION SHALL BE  CONSIDERED
 CONFIDENTIAL  AND SHALL NOT BE SUBJECT TO FURTHER DISCLOSURE PURSUANT TO
 THE FREEDOM OF INFORMATION LAW OR OTHERWISE.
   § 2. This act shall take effect immediately.

 S. 2009--C                         17                         A. 3009--C
 
                                  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
 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.

 S. 2009--C                         18                         A. 3009--C

                                  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:
   § 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.

 S. 2009--C                         19                         A. 3009--C
 
   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,
 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  AGRICULTURAL  BIOTECHNOLOGY,  BIOGENERICS,
 BIOINFORMATICS,  BIOMEDICAL  ENGINEERING,  BIOPHARMACEUTICALS,  ACADEMIC
 MEDICAL CENTERS, BIOTECHNOLOGY, CHEMICAL SYNTHESIS, CHEMISTRY  TECHNOLO-
 GY, MEDICAL DIAGNOSTICS, GENOMICS, MEDICAL IMAGE ANALYSIS, MARINE BIOLO-
 GY,  MEDICAL DEVICES, MEDICAL NANOTECHNOLOGY, NATURAL PRODUCT PHARMACEU-
 TICALS, PROTEOMICS, REGENERATIVE MEDICINE, RNA INTERFERENCE,  STEM  CELL
 RESEARCH,  MEDICAL AND NEUROLOGICAL CLINICAL TRIALS, HEALTH ROBOTICS AND
 VETERINARY SCIENCE.

 S. 2009--C                         20                         A. 3009--C
 
   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
 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;

 S. 2009--C                         21                         A. 3009--C
 
   (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
 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.

 S. 2009--C                         22                         A. 3009--C
 
   §  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
   §  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:

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

   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
           $ 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

 S. 2009--C                         24                         A. 3009--C
 
 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 RESEARCH AND DEVELOPMENT TAX CREDIT. (A) ALLOWANCE
 OF CREDIT. (1) 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  CORPO-
 RATION  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,  PURSUANT  TO  THE PROVISIONS REFERRED TO IN
 SUBDIVISION (E) OF THIS  SECTION,  FOR  A  PERIOD  OF  THREE  YEARS,  AS
 PROVIDED  IN  SUBPARAGRAPH (II) OF PARAGRAPH TWO OF THIS SUBDIVISION, TO
 BE COMPUTED AS PROVIDED IN THIS SECTION, PROVIDED THAT NO  CREDIT  SHALL
 BE  ALLOWED  FOR  TAXABLE YEARS BEGINNING ON 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.
   (2)(I) 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.
   (II) THE CREDIT SHALL BE ALLOWED ONLY WITH RESPECT TO THE FIRST  TAXA-
 BLE  YEAR  DURING  WHICH  THE CRITERIA SET FORTH IN THIS SUBDIVISION ARE
 SATISFIED, AND WITH RESPECT TO  EACH  OF  THE  TWO  TAXABLE  YEARS  NEXT

 S. 2009--C                         25                         A. 3009--C
 
 FOLLOWING  (BUT ONLY, WITH RESPECT TO EACH OF SUCH YEARS, IF SUCH CRITE-
 RIA ARE SATISFIED).   SUBSEQUENT CERTIFICATIONS  OF  THE  LIFE  SCIENCES
 COMPANY  BY  THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT PURSUANT TO THIS
 SECTION  SHALL  NOT EXTEND THE THREE TAXABLE YEAR TIME LIMITATION ON THE
 ALLOWANCE OF THE CREDIT SET FORTH IN THE PRECEDING SENTENCE.
   (3) 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
 IN ANY TAXABLE YEAR. IF THE LIFE SCIENCES COMPANY  IS  A  PARTNER  IN  A
 PARTNERSHIP  OR  SHAREHOLDER 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  FIVE
 HUNDRED THOUSAND DOLLARS IN ANY TAXABLE YEAR.
   (4) 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 SECTION OR USED IN THE CALCULATION OF  THE
 CREDIT  PROVIDED  PURSUANT  TO  THIS  SECTION SHALL BE USED TO CLAIM ANY
 OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER OR BE USED IN  THE  CALCU-
 LATION OF ANY OTHER CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
   (B)  MAXIMUM  AMOUNT  OF  CREDITS. THE AGGREGATE AMOUNT OF TAX CREDITS
 ALLOWED UNDER THIS SECTION TO TAXPAYERS SUBJECT TO  TAX  UNDER  ARTICLES
 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  SECTION,
 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) "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 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 DEVELOPMENT TAX CREDIT
 THAT MAY BE CLAIMED BY SUCH QUALIFIED LIFE SCIENCES COMPANY, PURSUANT TO
 THIS SECTION, AND SHALL SPECIFY THE TAXABLE YEAR IN  WHICH  SUCH  CREDIT
 MAY BE CLAIMED.
   (2) "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.
   (3)  "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-

 S. 2009--C                         26                         A. 3009--C
 
 NESS.    PROVIDED  HOWEVER,  FOR PURPOSES OF THE CREDIT AUTHORIZED UNDER
 THIS SECTION, THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL  NOT  CERTIFY
 AS  A  LIFE SCIENCES COMPANY ANY CORPORATION, PARTNERSHIP, LIMITED PART-
 NERSHIP,  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 SCIENTIFIC RESEARCH AND DEVELOP-
 MENT  AS  DEFINED  IN  SUBDIVISION  TWENTY-TWO  OF SECTION THREE HUNDRED
 FIFTY-TWO OF THE ECONOMIC DEVELOPMENT LAW.
   (4) "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.
   (5) "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 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) 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 THE CREDIT
 ALLOWED UNDER THIS SECTION, THE DUE DATES  FOR  SUCH  APPLICATIONS,  THE
 ELIGIBILITY  STANDARDS FOR QUALIFIED LIFE SCIENCES COMPANIES, THE STAND-
 ARDS 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  NECESSARY  AND  APPROPRIATE. 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.
   (E)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 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

 S. 2009--C                         27                         A. 3009--C
 
 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  THE
 CREDIT ALLOWED UNDER THIS SECTION AND THE AMOUNT OF THE CREDIT EARNED BY
 THE  TAXPAYER.  PROVIDED,  HOWEVER,  IF  A  TAXPAYER  CLAIMS SUCH 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.
   (G) FOR PURPOSES OF THE CREDIT 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 RESEARCH AND DEVELOPMENT TAX CREDIT.  (A)  ALLOWANCE
 OF  CREDIT.  A TAXPAYER THAT IS ELIGIBLE PURSUANT TO SECTION FORTY-THREE
 OF THIS CHAPTER SHALL BE ALLOWED A CREDIT TO BE COMPUTED AS PROVIDED  IN
 SUCH SECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, THAT IF  THE
 AMOUNT  OF  THE  CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE
 YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE  TAXPAYER  OTHERWISE  PAYS
 TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, THE EXCESS SHALL BE TREAT-
 ED  AS  AN  OVERPAYMENT  OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE
 WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS  CHAPTER.
 PROVIDED, FURTHER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOU-
 SAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE
 PAID THEREON.
   § 9. Section 606 of the tax law is amended by adding a new  subsection
 (hhh) to read as follows:
   (HHH) LIFE SCIENCES RESEARCH AND DEVELOPMENT TAX 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 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.
   § 10. 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:

 S. 2009--C                         28                         A. 3009--C
 
 (XLIII) LIFE SCIENCES RESEARCH AND      AMOUNT OF CREDIT UNDER
 DEVELOPMENT TAX CREDIT UNDER            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:
   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

 S. 2009--C                         29                         A. 3009--C

   (f) is comprised of tasks the performance of which required the person
 filling the job to undergo eligible  training.]  "LIFE  SCIENCES"  MEANS
 AGRICULTURAL   BIOTECHNOLOGY,  BIOGENERICS,  BIOINFORMATICS,  BIOMEDICAL
 ENGINEERING, BIOPHARMACEUTICALS, ACADEMIC MEDICAL CENTERS,  BIOTECHNOLO-
 GY,  CHEMICAL  SYNTHESIS,  CHEMISTRY  TECHNOLOGY,  MEDICAL  DIAGNOSTICS,
 GENOMICS, MEDICAL  IMAGE  ANALYSIS,  MARINE  BIOLOGY,  MEDICAL  DEVICES,
 MEDICAL  NANOTECHNOLOGY,  NATURAL  PRODUCT  PHARMACEUTICALS, PROTEOMICS,
 REGENERATIVE MEDICINE, RNA INTERFERENCE, STEM CELL RESEARCH, MEDICAL AND
 NEUROLOGICAL CLINICAL TRIALS, HEALTH ROBOTICS  AND  VETERINARY  SCIENCE.
 "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
 eligible training in the form of an internship program in advanced tech-

 S. 2009--C                         30                         A. 3009--C
 
 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
 total of the credits allocated under  this  paragraph  and  the  credits

 S. 2009--C                         31                         A. 3009--C
 
 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
 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:

 S. 2009--C                         32                         A. 3009--C
 
   (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 part enacts into law major components of legislation
 relating to the New York youth jobs program tax credit  and  the  empire
 state  apprenticeship  tax  credit  program.  Each  component  is wholly
 contained within a Subpart identified  as  Subparts  A  through  B.  The
 effective  date for each particular provision contained within a Subpart
 is set forth in the last section of such Subpart. Any provision  in  any
 section  contained within a Subpart, including the effective date of the
 Subpart, which makes reference to a section "of this act", when used  in
 connection  with  that particular component, shall be deemed to mean and

 S. 2009--C                         33                         A. 3009--C

 refer to the corresponding section of the Subpart in which it is  found.
 Section three of this part sets forth the general effective date of this
 part.
 
                                 SUBPART A
 
   Section  1.  The  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] 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, AND FORTY MILLION DOLLARS OF TAX CREDITS
 UNDER PROGRAMS SIX, SEVEN, EIGHT, NINE AND TEN.
   (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,

 S. 2009--C                         34                         A. 3009--C
 
 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,  ENSURING THAT THE PROCESS ESTABLISHED
 WILL MINIMIZE ANY UNDUE DELAY IN ISSUING THE CERTIFICATE OF ELIGIBILITY.
 Any regulations that the commissioner determines are  necessary  may  be
 adopted  on  an emergency basis notwithstanding anything to the contrary
 in section two hundred two of the state  administrative  procedure  act.
 Such requirements may include the types of industries that the employers
 are  engaged in.  The commissioner may give preference to employers that
 are engaged in demand occupations or industries, or in  regional  growth
 sectors,  including  BUT NOT LIMITED TO those identified by the regional
 economic  development  councils,  such  as  clean  energy,   healthcare,
 advanced  manufacturing  and conservation. In addition, the commissioner
 shall give preference to employers who offer  advancement  and  employee
 benefit packages to the qualified individuals.
   (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.
   §  1-a. Subdivision (b) of section 25-a of the labor law is amended by
 adding a new paragraph 4 to read as follows:
   (4) FOR PROGRAMS SIX, SEVEN, EIGHT, NINE AND TEN, THE TAX CREDIT UNDER
 EACH PROGRAM SHALL BE ALLOCATED AS FOLLOWS: (I) TWENTY  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 REQUIREMENT OF SUBPARAGRAPH
 (II) OF PARAGRAPH TWO OF THIS SUBDIVISION, WHICH  INDIVIDUALS  SHALL  BE
 DEEMED  TO MEET THE RESIDENCY REQUIREMENTS OF SUBPARAGRAPH (II) OF PARA-
 GRAPH TWO OF THIS SUBDIVISION IF THEY RESIDE IN NEW YORK STATE.
   § 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:

 S. 2009--C                         35                         A. 3009--C
 
   [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.
 
                                 SUBPART B
 
   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 CERTIFIED EMPLOYERS FOR EMPLOYING QUALIFIED APPRENTICES  PURSU-
 ANT TO AN APPRENTICESHIP AGREEMENT REGISTERED WITH THE DEPARTMENT PURSU-
 ANT  TO PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED ELEVEN
 OF THIS CHAPTER. THE COMMISSIONER IS AUTHORIZED TO ALLOCATE  UP  TO  TEN
 MILLION DOLLARS OF TAX CREDITS ANNUALLY, BEGINNING IN TWO THOUSAND EIGH-
 TEEN  AND  ENDING  BEFORE  TWO  THOUSAND TWENTY-THREE. ANY UNUSED ANNUAL
 ALLOCATION OF THE CREDIT SHALL BE MADE AVAILABLE IN EACH OF  THE  SUBSE-
 QUENT YEARS BEFORE TWO THOUSAND TWENTY-THREE.
   (B)  DEFINITIONS.  (1)  THE  TERM "QUALIFIED APPRENTICESHIP AGREEMENT"
 MEANS AN APPRENTICESHIP AGREEMENT AS DEFINED BY  SECTION  EIGHT  HUNDRED
 SIXTEEN  OF THIS CHAPTER THAT HAS BEEN REGISTERED WITH, AND APPROVED BY,
 THE COMMISSIONER, FOR A TRADE OTHER THAN A CONSTRUCTION TRADE.
   (2) THE TERM "QUALIFIED  EMPLOYER"  MEANS  AN  EMPLOYER  THAT  HAS  OR
 PARTICIPATES   IN  A  COMMISSIONER  APPROVED  REGISTERED  APPRENTICESHIP
 PROGRAM.
   (3) THE TERM "CONSTRUCTION" MEANS CONSTRUCTING, RECONSTRUCTING, ALTER-
 ING, MAINTAINING, MOVING, REHABILITATING, REPAIRING, RENOVATING,  FABRI-
 CATING, SERVICING, OR DEMOLITION OF ANY BUILDING, STRUCTURE, OR IMPROVE-
 MENT,   OR  COMPONENT,  OR  RELATING  TO  THE  EXCAVATION  OF  OR  OTHER
 DEVELOPMENT OR IMPROVEMENT TO LAND.
   (4) THE TERM "PARTICIPATING EMPLOYER" MEANS A QUALIFIED EMPLOYER  THAT
 HAS APPLIED TO PARTICIPATE IN THE EMPIRE STATE APPRENTICESHIP TAX CREDIT
 PROGRAM  AND  RECEIVED  A PRELIMINARY CERTIFICATE OF TAX CREDIT FROM THE
 COMMISSIONER. THE PRELIMINARY CERTIFICATE SHALL STATE THE MAXIMUM AMOUNT
 OF THE TAX CREDIT THAT THE EMPLOYER MAY BE ABLE TO CLAIM IF  THE  APPLI-
 CANT BECOMES A "CERTIFIED EMPLOYER."
   (5)  THE TERM "CERTIFIED EMPLOYER" MEANS A QUALIFIED EMPLOYER THAT HAS
 RECEIVED A FINAL CERTIFICATE OF ELIGIBILITY FROM THE COMMISSIONER  AFTER
 THE   COMMISSIONER  HAS  DETERMINED  THAT  THE  QUALIFIED  EMPLOYER  HAS
 FULFILLED ALL THE REQUISITE ELIGIBILITY CRITERIA TO PARTICIPATE  IN  THE
 EMPIRE  STATE  APPRENTICESHIP  TAX  CREDIT  PROGRAM  ESTABLISHED IN THIS
 SECTION. THE FINAL CERTIFICATE OF ELIGIBILITY  SHALL  STATE  THE  ACTUAL
 AMOUNT  OF TAX CREDIT THAT A CERTIFIED EMPLOYER IS ENTITLED TO CLAIM AND
 THE ALLOCATION YEAR OF THE CREDIT.
   (6) THE TERM "QUALIFIED APPRENTICE" MEANS AN INDIVIDUAL EMPLOYED BY  A
 PARTICIPATING  EMPLOYER  IN A FULL TIME POSITION FOR AT LEAST SIX MONTHS
 OF A CALENDAR YEAR PURSUANT TO A QUALIFIED APPRENTICESHIP AGREEMENT WITH
 A QUALIFIED EMPLOYER. NO INDIVIDUAL EMPLOYED  BY  A  QUALIFIED  EMPLOYER
 SHALL  BE  DEEMED  A  QUALIFIED  APPRENTICE  IF  SUCH INDIVIDUAL HAS NOT

 S. 2009--C                         36                         A. 3009--C
 
 COMPLETED THEIR APPRENTICESHIP TRAINING PROGRAM WITHIN ONE YEAR OF THEIR
 EXPECTED DATE OF COMPLETION OF THEIR PROGRAM.
   (7) THE TERM "DISADVANTAGED YOUTH" MEANS AN INDIVIDUAL:
   (I)  WHO IS BETWEEN THE AGES OF SIXTEEN AND TWENTY-FOUR WHEN THE YOUTH
 BEGINS THE APPRENTICESHIP; AND
   (II) WHO IS LOW-INCOME OR AT-RISK, AS THOSE TERMS ARE DEFINED  BY  THE
 COMMISSIONER.
   (8)  THE  TERM  "MENTOR" MEANS AN INDIVIDUAL WHO PROVIDES INSTRUCTION,
 GUIDANCE, AND SUPPORT TO THE APPRENTICE ON A  REGULAR  BASIS  THROUGHOUT
 THE  APPRENTICE'S  COMPLETION  OF  THE  APPRENTICESHIP AS THE APPRENTICE
 SEEKS EMPLOYMENT IN THE FIELD OR INDUSTRY  OF  THE  APPRENTICESHIP.  THE
 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)(1)  A CERTIFIED EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT AGAINST
 INCOME OR FRANCHISE TAX FOR EACH QUALIFIED APPRENTICE. THE  BASE  CREDIT
 ALLOWED UNDER THIS PROGRAM SHALL BE COMPUTED AS FOLLOWS:
   (A) (1) TWO THOUSAND DOLLARS FOR EACH FIRST YEAR APPRENTICE; (2) THREE
 THOUSAND  DOLLARS  FOR  EACH  SECOND  YEAR  APPRENTICE;(3) FOUR THOUSAND
 DOLLARS FOR EACH THIRD YEAR APPRENTICE; (4) FIVE  THOUSAND  DOLLARS  FOR
 EACH FOURTH YEAR APPRENTICE; AND (5) SIX THOUSAND DOLLARS FOR EACH FIFTH
 YEAR  APPRENTICE.  THE  APPRENTICE'S  STATUS  AS A FIRST, SECOND, THIRD,
 FOURTH OR FIFTH YEAR APPRENTICE WILL BE DETERMINED ON THE  LAST  DAY  OF
 THE  CALENDAR  YEAR,  OR  IF THE APPRENTICE IS NO LONGER EMPLOYED BY THE
 PARTICIPATING EMPLOYER ON THE LAST DAY OF THE CALENDAR YEAR, ON THE LAST
 DAY OF THE APPRENTICE'S EMPLOYMENT WITH THE PARTICIPATING EMPLOYER; OR
   (B) IN LIEU OF THE CREDIT SPECIFIED IN SUBPARAGRAPH (A) OF THIS  PARA-
 GRAPH,  FOR  EACH QUALIFIED APPRENTICE WHO IS CONSIDERED A DISADVANTAGED
 YOUTH FOR EACH TAX YEAR: (1) FIVE THOUSAND DOLLARS FOR EACH  FIRST  YEAR
 APPRENTICE;  (2)  SIX  THOUSAND DOLLARS FOR EACH SECOND YEAR APPRENTICE;
 AND (3) SEVEN THOUSAND DOLLARS FOR EACH THIRD,  FOURTH,  OR  FIFTH  YEAR
 APPRENTICE. THE APPRENTICE'S STATUS AS A FIRST, SECOND, THIRD, FOURTH OR
 FIFTH YEAR APPRENTICE WILL BE DETERMINED ON THE LAST DAY OF THE CALENDAR
 YEAR,  OR  IF  THE APPRENTICE IS NO LONGER EMPLOYED BY THE PARTICIPATING
 EMPLOYER ON THE LAST DAY OF THE CALENDAR YEAR, ON THE LAST  DAY  OF  THE
 APPRENTICE'S  EMPLOYMENT WITH THE PARTICIPATING EMPLOYER. IF A DISADVAN-
 TAGED YOUTH BEGINS AN APPRENTICESHIP BEFORE THE AGE  OF  TWENTY-FIVE,  A
 CERTIFIED  EMPLOYER  SHALL  BE  ELIGIBLE  TO CONTINUE TO RECEIVE THE TAX
 CREDIT FOR SUCH YOUTH UNDER  THIS  SUBPARAGRAPH  UNTIL  THAT  APPRENTICE
 COMPLETES THE APPRENTICESHIP.
   (2)  IF AN APPRENTICE HAS BEEN TRAINED IN HIS OR HER TRADE BY A MENTOR
 FOR THE ENTIRETY OF THE CALENDAR YEAR, THE BASE CREDIT AMOUNTS DESCRIBED
 IN PARAGRAPH ONE OF THIS SUBDIVISION SHALL BE INCREASED BY FIVE  HUNDRED
 DOLLARS.
   (3)  THE  CERTIFIED  EMPLOYER  SHALL NOT BE ALLOWED A TAX CREDIT UNDER
 THIS PROGRAM FOR ANY APPRENTICE, IF THAT APPRENTICE IS THE BASIS FOR ANY
 OTHER STATE TAX CREDIT.
   (D) APPLICATION AND  APPROVAL  PROCESS.  (1)  TO  PARTICIPATE  IN  THE
 PROGRAM ESTABLISHED UNDER THIS SECTION, A QUALIFIED EMPLOYER MUST SUBMIT
 TO  THE  COMMISSIONER AN APPLICATION IN A FORM PRESCRIBED BY THE COMMIS-
 SIONER. AS PART OF SUCH APPLICATION, A QUALIFIED EMPLOYER MUST:
   (A) 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.

 S. 2009--C                         37                         A. 3009--C
 
   (B) ALLOW THE DEPARTMENT AND ITS AGENTS ACCESS TO ANY  AND  ALL  BOOKS
 AND RECORDS THE DEPARTMENT MAY REQUIRE TO MONITOR COMPLIANCE.
   (2)  AFTER  REVIEWING A QUALIFIED EMPLOYER'S COMPLETED APPLICATION AND
 DETERMINING THAT THE QUALIFIED EMPLOYER WILL MEET THE ELIGIBILITY CONDI-
 TIONS SET FORTH  UNDER  THIS  SECTION  AND  ANY  APPLICABLE  REGULATIONS
 PROMULGATED  BY  THE COMMISSIONER, THE COMMISSIONER MAY ADMIT THE APPLI-
 CANT INTO THE PROGRAM AS A PARTICIPATING EMPLOYER AND PROVIDE THE APPLI-
 CANT WITH A PRELIMINARY  CERTIFICATE  OF  ELIGIBILITY  ESTABLISHING  THE
 QUALIFIED  EMPLOYER  AS A PARTICIPATING EMPLOYER AND STATING THE MAXIMUM
 AMOUNT OF CREDIT FOR WHICH THE APPLICANT MAY BE ELIGIBLE.
   (3) TO RECEIVE A FINAL CERTIFICATE OF TAX  CREDIT,  THE  PARTICIPATING
 EMPLOYER  MUST  ANNUALLY SUBMIT A FINAL REPORT TO THE COMMISSIONER, IN A
 FORM PRESCRIBED BY THE COMMISSIONER. THE REPORT  MUST  DEMONSTRATE  THAT
 THE  APPLICANT  HAS  SATISFIED ALL ELIGIBILITY REQUIREMENTS AND PROVIDED
 ALL THE INFORMATION NECESSARY FOR THE COMMISSIONER TO COMPUTE AN  ACTUAL
 AMOUNT  OF  CREDIT  ALLOWED  FOR THAT CALENDAR YEAR, NOTWITHSTANDING THE
 FACT THAT A PARTICIPATING EMPLOYER'S TAXABLE YEAR MAY BE A FISCAL  YEAR,
 AS  DEFINED  IN  SUBDIVISION TEN OF SECTION TWO HUNDRED EIGHT OF THE TAX
 LAW.
   (4) AFTER REVIEWING THE FINAL REPORT AND FINDING  IT  SUFFICIENT,  THE
 COMMISSIONER  SHALL  CERTIFY  THE  PARTICIPATING EMPLOYER AS A CERTIFIED
 EMPLOYER AND ISSUE A FINAL CERTIFICATE OF TAX CREDIT.  SUCH  CERTIFICATE
 SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
   (A)  THE  NAME  AND  EMPLOYER  IDENTIFICATION  NUMBER OF THE CERTIFIED
 EMPLOYER;
   (B) THE ACTUAL AMOUNT OF CREDIT TO WHICH  THE  CERTIFIED  EMPLOYER  IS
 ENTITLED  FOR  THAT CALENDAR YEAR, WHICH ACTUAL AMOUNT CANNOT EXCEED THE
 AMOUNT OF CREDIT LISTED ON THE PRELIMINARY CERTIFICATE BUT MAY  BE  LESS
 THAN SUCH AMOUNT;
   (C) THE ALLOCATION YEAR OF THE CREDIT.
   (5)  IF A CERTIFIED EMPLOYER'S TAXABLE YEAR IS A FISCAL YEAR, IT SHALL
 BE ENTITLED TO CLAIM THE CREDIT ON THE RETURN FOR THE FISCAL  YEAR  THAT
 INCLUDES  THE LAST DAY OF THE CALENDAR YEAR COVERED BY THE FINAL CERTIF-
 ICATE OF TAX CREDIT.
   (E) 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. THE COMMISSIONER MAY  GIVE  PREFERENCE  TO
 QUALIFIED  EMPLOYERS  THAT  HIRE  AND  TRAIN DISADVANTAGED YOUTH THROUGH
 QUALIFIED APPRENTICESHIP AGREEMENTS, AND QUALIFIED  EMPLOYERS  THAT  ARE
 ENGAGED  IN  DEMAND  OCCUPATIONS  OR  INDUSTRIES,  OR IN REGIONAL GROWTH
 SECTORS, INCLUDING THOSE IDENTIFIED BY THE  DEPARTMENT,  SUCH  AS  CLEAN
 ENERGY,  HEALTH CARE, TECHNOLOGY, INCLUDING SOFTWARE ENGINEERING AND WEB
 DEVELOPMENT, ADVANCED MANUFACTURING AND CONSERVATION. IN  ADDITION,  THE
 COMMISSIONER MAY GIVE PREFERENCE TO EMPLOYERS THAT EMPLOY APPRENTICES IN
 NEWLY  ESTABLISHED  APPRENTICESHIP  PROGRAMS.  THE COMMISSIONER ALSO MAY
 TAKE THE FOLLOWING FACTORS INTO CONSIDERATION WHEN EVALUATING WHETHER TO
 APPROVE AN APPLICATION IN A YEAR SUBSEQUENT TO THE YEAR IN WHICH A QUAL-
 IFIED EMPLOYER WAS DETERMINED TO BE A CERTIFIED EMPLOYER:
   (1) THE LENGTH OF THE QUALIFIED APPRENTICESHIP AGREEMENT THE  EMPLOYER
 HAS ENTERED INTO;

 S. 2009--C                         38                         A. 3009--C
 
   (2)  HOW  MANY  APPRENTICES  HAVE  GRADUATED  FROM  THE APPRENTICESHIP
 PROGRAM TO WHICH THE  QUALIFIED  APPRENTICE  EMPLOYED  BY  THE  EMPLOYER
 BELONGS;
   (3)  HOW  MANY APPRENTICES IN THE APPRENTICESHIP PROGRAM THE QUALIFIED
 EMPLOYER HAS HIRED; AND
   (4) ANY OTHER FACTORS THE COMMISSIONER DEEMS RELEVANT.
   (F) THE COMMISSIONER SHALL ANNUALLY PUBLISH A REPORT. SUCH REPORT MUST
 CONTAIN THE NAMES AND ADDRESSES OF ANY CERTIFIED EMPLOYER ISSUED A FINAL
 CERTIFICATE OF ELIGIBILITY UNDER THIS SECTION, THE WORK LOCATION OF EACH
 APPRENTICE GENERATING CREDIT, THE AMOUNT OF EMPIRE STATE  APPRENTICESHIP
 TAX  CREDIT ALLOWED TO THE CERTIFIED EMPLOYER AS SPECIFIED ON SUCH FINAL
 CERTIFICATE OF ELIGIBILITY, AND THE NUMBER OF EACH  OF  THE  FIRST  YEAR
 APPRENTICES,  SECOND  YEAR  APPRENTICES,  THIRD YEAR APPRENTICES, FOURTH
 YEAR APPRENTICES, AND FIFTH YEAR APPRENTICES, AND HOW MANY  OF  EACH  OF
 THOSE  TYPES  ARE CONSIDERED DISADVANTAGED YOUTH. THE COMMISSIONER SHALL
 INCLUDE IN SUCH REPORT THE RELEVANT INDUSTRIES  OF  CERTIFIED  EMPLOYERS
 AND  RECOMMENDATIONS  FOR  LEGISLATIVE  OR  OTHER  ACTION TO FURTHER THE
 INTENT AND  PURPOSE  OF  THE  EMPIRE  STATE  APPRENTICESHIP  TAX  CREDIT
 PROGRAM.
   (G)  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.
   §  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
 PURSUANT TO SECTION TWENTY-FIVE-C OF THE LABOR LAW SHALL  BE  ALLOWED  A
 CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE EQUAL TO THE AMOUNT SPEC-
 IFIED  UNDER  SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE LABOR LAW.
 IN NO EVENT SHALL THE TAXPAYER BE ALLOWED  A  CREDIT  GREATER  THAN  THE
 AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIFICATE OF ELIGIBILITY.
   (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.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (vvv) to read as follows:
   (VVV)  EMPIRE  STATE APPRENTICESHIP TAX CREDIT. (1)(A) 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 EQUAL TO THE AMOUNT SPEC-
 IFIED UNDER SUBDIVISION (C) OF SECTION TWENTY-FIVE-C OF THE  LABOR  LAW.
 IN  NO  EVENT  SHALL  THE  TAXPAYER BE ALLOWED A CREDIT GREATER THAN THE
 AMOUNT OF THE CREDIT LISTED ON THE FINAL CERTIFICATE OF TAX CREDIT.
   (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

 S. 2009--C                         39                         A. 3009--C
 
 SHARE OF THE CREDIT EARNED BY THE PARTNERSHIP, LIMITED LIABILITY COMPANY
 OR S CORPORATION.
   (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.
   § 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 (VVV)            SUBDIVISION FORTY-NINE OF
                                              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. Severability. If any clause, sentence, paragraph, subdivision  or
 section  of this part shall be adjudged by any court of competent juris-
 diction to be invalid, such judgment shall not affect, impair, or inval-
 idate the remainder thereof, but shall be confined in its  operation  to
 the clause, sentence, paragraph, subdivision or section thereof directly
 involved  in  the  controversy  in  which  such judgment shall have been
 rendered. It is hereby declared to be the intent of the legislature that
 this part would have been enacted even if such  invalid  provisions  had
 not been included herein.
   §  3.  This act shall take effect immediately; provided, however, that
 the applicable effective date of Subparts A and B of this part shall  be
 as specifically set forth in the last section of such Subparts.
 
                                  PART 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. Legislative findings. The legislature  finds  and  declares
 that this act does not alter the meaning of the statutes amended herein;
 instead,  it is the intent of the legislature to confirm the long-stand-

 S. 2009--C                         40                         A. 3009--C
 
 ing position of the department  of  taxation  and  finance  interpreting
 these  statutes, as well as relevant prior statutes, as not allowing the
 investment tax credit where tangible personal property and other  tangi-
 ble  property  is  principally used by the taxpayer in the production or
 distribution of electricity or steam, the delivery of natural gas  after
 extraction  from  wells and the production and delivery of water through
 pipes and mains.
   § 2.  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

 S. 2009--C                         41                         A. 3009--C
 
 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
 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 IN THE PRODUCTION OR  DISTRIBUTION  OF  ELEC-
 TRICITY, NATURAL GAS AFTER EXTRACTION FROM WELLS, STEAM, OR WATER DELIV-
 ERED THROUGH PIPES AND MAINS.
   §  3. 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

 S. 2009--C                         42                         A. 3009--C

 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-
 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

 S. 2009--C                         43                         A. 3009--C
 
 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  IN
 THE  PRODUCTION  OR  DISTRIBUTION  OF  ELECTRICITY,  NATURAL  GAS  AFTER
 EXTRACTION FROM WELLS, STEAM,  OR  WATER  DELIVERED  THROUGH  PIPES  AND
 MAINS.
   § 4. This act shall take effect immediately.
 
                                  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

 S. 2009--C                         44                         A. 3009--C
 
 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
                                       $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:

 S. 2009--C                         45                         A. 3009--C
 
 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                         $19,674 PLUS 6.85% OF EXCESS OVER
                                       $323,200
   (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

 S. 2009--C                         46                         A. 3009--C
 
                                       $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
   (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

 S. 2009--C                         47                         A. 3009--C
 
                                       $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                         $16,524 PLUS 6.85% OF EXCESS OVER
                                       $269,300
   (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:

 S. 2009--C                         48                         A. 3009--C
 
 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:
 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

 S. 2009--C                         49                         A. 3009--C
 
                                       $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                         $13,288 PLUS 6.85% OF EXCESS OVER
                                       $215,400
   (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

 S. 2009--C                         50                         A. 3009--C
 
   (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
   (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

 S. 2009--C                         51                         A. 3009--C
 
   § 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.
   §  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.
   § 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.
   § 7. This act shall take effect immediately.
 
                                  PART S

 S. 2009--C                         52                         A. 3009--C
 
   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]
 TWENTY. 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 taxable years beginning in two thousand nine or after
 two thousand [seventeen] NINETEEN.
   (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] TWENTY.
   §  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]
 TWENTY.  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 taxable years beginning in two thousand nine  or  after
 two thousand [seventeen] NINETEEN.
   (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] TWENTY.
   § 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

 S. 2009--C                         53                         A. 3009--C
 
   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. Subsection (c) of section 606 of the tax law is amended by adding
 a new paragraph 1-b to read as follows:
   (1-B)  NOTWITHSTANDING  ANYTHING IN THIS SUBSECTION TO THE CONTRARY, A
 TAXPAYER SHALL BE ALLOWED A CREDIT AS PROVIDED IN THIS SUBSECTION  EQUAL
 TO THE APPLICABLE PERCENTAGE OF THE CREDIT ALLOWABLE UNDER SECTION TWEN-
 TY-ONE  OF  THE INTERNAL REVENUE CODE FOR THE SAME TAXABLE YEAR (WITHOUT
 REGARD TO WHETHER THE TAXPAYER IN FACT CLAIMED  THE  CREDIT  UNDER  SUCH
 SECTION  TWENTY-ONE  FOR SUCH TAXABLE YEAR) THAT WOULD HAVE BEEN ALLOWED
 ABSENT THE APPLICATION OF SECTION 21(C) OF SUCH CODE FOR TAXPAYERS  WITH
 MORE  THAN TWO QUALIFYING INDIVIDUALS, PROVIDED HOWEVER, THAT THE CREDIT
 SHALL BE CALCULATED AS IF THE DOLLAR LIMIT ON  AMOUNT  CREDITABLE  SHALL
 NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS IF THERE ARE THREE QUALI-
 FYING INDIVIDUALS, EIGHT THOUSAND FIVE HUNDRED DOLLARS IF THERE ARE FOUR
 QUALIFYING  INDIVIDUALS,  AND NINE THOUSAND DOLLARS IF THERE ARE FIVE OR
 MORE QUALIFYING INDIVIDUALS.
   § 3. This act shall take effect immediately; provided,  however,  that
 section  two  of  this  act shall apply to taxable years beginning on or
 after January 1, 2018.
 
                                  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 and shall expire April  1,
 2020  when  upon  such  date  the provisions of this act shall be deemed
 repealed.

 S. 2009--C                         54                         A. 3009--C
 
                                  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] 2020.
   §  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

                           Intentionally Omitted
 
                                  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

 S. 2009--C                         55                         A. 3009--C
 
   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
 
                           Intentionally Omitted
 
                                  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-

 S. 2009--C                         56                         A. 3009--C
 
 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,
 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-

 S. 2009--C                         57                         A. 3009--C

 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
 
                           Intentionally Omitted
 
                                  PART FF
 
                           Intentionally Omitted
 
                                  PART GG

                           Intentionally Omitted
 
                                  PART HH
 
                           Intentionally Omitted
 
                                  PART II
 
                           Intentionally Omitted
 
                                  PART JJ
 
                           Intentionally Omitted
 
                                  PART KK
 
                           Intentionally Omitted
 
                                  PART LL

 S. 2009--C                         58                         A. 3009--C
 
   Section  1.  Subdivision  2  of section 902 of the racing, pari-mutuel
 wagering and breeding law, as amended by chapter 18 of the laws of 2008,
 is amended and four new subdivisions 3, 4, 5 and 6 are added to read  as
 follows:
   2.  Notwithstanding  any  inconsistent provision of THE 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] EXECUTIVE DIRECTOR OF  THE  COMMISSION,
 upon  the  audit  and  warrant of the comptroller and pursuant to a plan
 developed by  the  [state  racing  and  wagering  board]  COMMISSION  as
 approved  by  the director of the budget; PROVIDED, HOWEVER, THE COMMIS-
 SION MAY DIRECT THE ASSESSMENT IMPOSED PURSUANT TO SUBDIVISION THREE  OF
 THIS SECTION TO BE PAID DIRECTLY TO THE LABORATORY AUTHORIZED TO CONDUCT
 EQUINE  DRUG  TESTING  PURSUANT  TO  SUBDIVISION  ONE  OF  THIS SECTION,
 PROVIDED HOWEVER, UPON DIRECTION OF THE COMMISSION, ANY AMOUNTS DIRECTLY
 PAID  TO  SUCH   LABORATORY   SHALL   CONSTITUTE   AN   ENCUMBRANCE   OF
 APPROPRIATION.
   3.  (A)  THE  COMMISSION  MAY  IMPOSE AN ASSESSMENT ON EACH RACE TRACK
 LICENSED OR FRANCHISED PURSUANT TO THIS CHAPTER, AND AN  ADDITIONAL  PER
 START  FEE, FOR ANY ADDITIONAL COSTS AND EXPENSES OF EQUINE DRUG TESTING
 AND RESEARCH CONDUCTED AT A LABORATORY AUTHORIZED PURSUANT  TO  SUBDIVI-
 SION  ONE  OF  THIS SECTION, AFTER ALL OTHER FUNDS FOR SUCH PURPOSE HAVE
 BEEN EXPENDED.
   (B) (I) THE COMMISSION SHALL ESTABLISH AN  ASSESSABLE  AMOUNT  BY  MAY
 FIRST  OF EACH YEAR BASED ON THE PROJECTED DEFICIT OF REVENUES DEPOSITED
 INTO THE RACING REGULATION ACCOUNT ESTABLISHED BY SECTION  NINETY-NINE-I
 OF THE STATE FINANCE LAW, INCLUDING FUNDS DEPOSITED PURSUANT TO SECTIONS
 ONE  HUNDRED  FIFTEEN, TWO HUNDRED THIRTY-SIX, TWO HUNDRED THIRTY-EIGHT,
 THREE HUNDRED SEVEN, THREE HUNDRED EIGHT, THREE HUNDRED  EIGHTEEN,  FIVE
 HUNDRED  TWENTY-SEVEN, ONE THOUSAND SEVEN, ONE THOUSAND EIGHT, ONE THOU-
 SAND NINE, ONE THOUSAND FOURTEEN, ONE  THOUSAND  FIFTEEN,  ONE  THOUSAND
 SIXTEEN,  AND  ONE  THOUSAND EIGHTEEN OF THIS CHAPTER IN RELATION TO THE
 CONDUCT OF RACING, THE AMOUNT OF FUNDS PAID FOR  EQUIPMENT  PURSUANT  TO
 SUBDIVISION TWO OF SECTION TWO HUNDRED TWENTY-EIGHT OF THIS CHAPTER, THE
 AMOUNT  OF  FUNDS  RECEIVED BY THE COMMISSION FROM THE PURSE ENHANCEMENT
 ACCOUNT FOR EQUINE HEALTH AND SAFETY PURSUANT TO PARAGRAPH TWO OF SUBDI-
 VISION B OF SECTION SIXTEEN HUNDRED TWELVE OF THE TAX LAW IN RELATION TO
 VIDEO LOTTERY TERMINAL FACILITIES AT RACE TRACKS  LICENSED  PURSUANT  TO
 ARTICLES  TWO  AND  THREE  OF  THIS  CHAPTER, AND BY THE AMOUNT OF FUNDS
 GENERATED BY ANY OTHER EXISTING FEES, TAXES AND ASSESSMENTS PAID BY RACE
 TRACKS OR OWNERS LICENSED PURSUANT TO ARTICLES TWO  AND  THREE  OF  THIS
 CHAPTER  FOR THE PURPOSE OF EQUINE DRUG TESTING, COMPARED TO EXPENSES IN
 THE RACING REGULATION ACCOUNT. THE COMMISSION SHALL IMPOSE THE  ASSESSA-
 BLE  AMOUNT  AS AN ASSESSMENT UPON EACH RACE TRACK, AND AS AN ADDITIONAL
 PER START FEE ON EACH OWNER. IN NO  EVENT  SHALL  THE  TOTAL  ASSESSABLE
 AMOUNT  EXCEED  THE TOTAL EXPENSE PROJECTED BY THE COMMISSION FOR EQUINE
 DRUG TESTING AND RESEARCH CONDUCTED AT A LABORATORY AUTHORIZED  PURSUANT
 TO SUBDIVISION ONE OF THIS SECTION DURING THAT YEAR.
   (II)  THE  TOTAL  VALUE OF THE ASSESSMENT IMPOSED UPON ALL RACE TRACKS
 SHALL BE FIFTY PERCENT OF THE ASSESSABLE AMOUNT CALCULATED  BY  SUBPARA-
 GRAPH  (I)  OF THIS PARAGRAPH, AND SHALL BE ASSESSED IN A MANNER THAT IS
 PROPORTIONAL TO THE NUMBER OF STARTS  AT  EACH  RACE  TRACK  DURING  THE
 PREVIOUS YEAR.  IN NO EVENT SHALL ANY RACE TRACK IMPOSE THE COST OF SUCH
 ASSESSMENT, IN PART OR IN WHOLE, ON ANY OWNER OR TRAINER.

 S. 2009--C                         59                         A. 3009--C
 
   (III)  THE  TOTAL  VALUE  OF  THE  ADDITIONAL PER START FEE IMPOSED ON
 OWNERS LICENSED PURSUANT TO THIS CHAPTER AS AN ADDITIONAL PER START  FEE
 SHALL  BE  FIFTY PERCENT OF THE ASSESSABLE AMOUNT CALCULATED BY SUBPARA-
 GRAPH (I) OF THIS PARAGRAPH DIVIDED BY THE TOTAL NUMBER OF STARTS IN THE
 PREVIOUS YEAR, AND SHALL BE ASSESSED AND PAID IN THE SAME MANNER, AND IN
 ADDITION TO, THE FEE FOR THE START OF A HORSE IN NEW YORK STATE PARI-MU-
 TUEL RACES PROVIDED BY SECTION ONE HUNDRED FIFTEEN-A OF THIS CHAPTER.
   4.  PAYMENT OF THE ASSESSMENT IMPOSED BY THIS SECTION SHALL BE MADE TO
 THE COMMISSION, OR TO THE LABORATORY AUTHORIZED TO CONDUCT  EQUINE  DRUG
 TESTING  IF  DIRECTED BY THE COMMISSION, BY EACH ENTITY REQUIRED TO MAKE
 SUCH PAYMENTS. PAYMENTS OF SUCH ASSESSMENT SHALL BE  MADE  ON  THE  LAST
 BUSINESS  DAY  OF  EACH  MONTH AND SHALL COVER ONE-TWELFTH OF THE ANNUAL
 ASSESSMENT, PROVIDED HOWEVER THAT ALL SUCH PAYMENTS REQUIRED TO BE  MADE
 ON THE LAST DAY OF APRIL SHALL BE DUE WITH THE MAY PAYMENT. A PENALTY OF
 FIVE PERCENT, AND INTEREST AT THE RATE OF ONE PERCENT PER MONTH FROM THE
 DATE  THE  ASSESSMENT,  IS DUE TO THE DATE OF THE PAYMENT OF THE ASSESS-
 MENT, AND SHALL BE PAYABLE IN CASE ANY ASSESSMENT IMPOSED BY THIS  CHAP-
 TER  IS NOT PAID WHEN DUE. IF THE COMMISSION DETERMINES THAT ANY PAYMENT
 RECEIVED UNDER THIS SECTION WAS PAID IN ERROR, THE COMMISSION MAY  CAUSE
 THE  SAME  TO  BE  REFUNDED WITHOUT INTEREST OUT OF ANY MONIES COLLECTED
 THEREUNDER, PROVIDED AN APPLICATION THEREFOR IS FILED WITH  THE  COMMIS-
 SION WITHIN ONE YEAR FROM THE TIME THE ERRONEOUS PAYMENT IS MADE.
   5.  ANY DEFICIT IN THE RACING REGULATION ACCOUNT ON MARCH THIRTY-FIRST
 OF EACH YEAR, EXCLUDING ANY DEFICIT  ATTRIBUTED  TO  THE  NEGATIVE  FUND
 BALANCE AS OF MARCH THIRTY-FIRST, TWO THOUSAND SEVENTEEN, SHALL BE ADDED
 TO  THE  ASSESSABLE  AMOUNT FOR THE FOLLOWING YEAR. FIFTY PERCENT OF ANY
 SURPLUS IN SUCH ACCOUNT AS OF MARCH THIRTY-FIRST OF EACH  YEAR,  NOT  TO
 EXCEED THE AMOUNT OF THE ASSESSMENT IMPOSED ON RACE TRACKS IN THAT YEAR,
 SHALL BE USED TO REDUCE THE ASSESSMENT IMPOSED ON EACH RACE TRACK IN THE
 FOLLOWING  YEAR  IN  PROPORTION TO THE AMOUNT PAID BY EACH RACE TRACK IN
 THE YEAR OF THE SURPLUS.  FIFTY PERCENT OF ANY SURPLUS IN  SUCH  ACCOUNT
 AS OF MARCH THIRTY-FIRST OF EACH YEAR, NOT TO EXCEED THE TOTAL AMOUNT OF
 THE  ADDITIONAL  START  FEES  IN  THAT YEAR, SHALL BE USED TO REDUCE THE
 ADDITIONAL PER START FEE IN THE FOLLOWING YEAR. SUCH REDUCTION SHALL  BE
 CALCULATED IN THE SAME MANNER AS THE ADDITIONAL PER START FEE.
   6. NOT LATER THAN MAY FIRST, EACH YEAR, THE COMMISSION SHALL SUBMIT TO
 THE  DIRECTOR  OF  THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE AND
 THE SPEAKER OF THE ASSEMBLY A REPORT ON THE  REVENUE  GENERATED  BY  THE
 ASSESSMENT,  THE  TOTAL  COST  OF EQUINE DRUG TESTING, AND ANY PROJECTED
 DEFICIT OR SURPLUS IN THE  RACING  REGULATION  ACCOUNT.  THE  COMMISSION
 SHALL  ALSO  PUBLISH  SUCH REPORT ON THE COMMISSION'S WEBSITE AS SOON AS
 PRACTICABLE.
   § 2. This act shall take effect immediately.
 
                                  PART MM
 
   Section 1. Paragraph (b) of subdivision 2 of section 435 of the execu-
 tive law, as amended by chapter 164 of the laws of 2003, is  amended  to
 read as follows:
   (b) No person, firm or corporation, other than an organization [which]
 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 A written OR
 ELECTRONIC 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

 S. 2009--C                         60                         A. 3009--C
 
 licensing as a bingo supplier, the [New York state racing  and  wagering
 board]  COMMISSION  shall require the applicant to furnish to such board
 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.
 In each such application for a license under this section shall be stat-
 ed 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 OR HER 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
   gross sales of $50,000 to $100,000............$500.00
   gross sales in excess of $100,000...........$1,000.00
   §  2.  Section 476 of the general municipal law is amended by adding a
 new subdivision 13 to read as follows:
   13. "ANCILLARY  NON-GAMING  ACTIVITY"  SHALL  MEAN  ANY  ACTIVITY  NOT
 DIRECTLY  RELATED  TO  THE  CONDUCT OR OUTCOME OF ANY GAME OF BINGO, AND
 SHALL INCLUDE ASSISTING AT ANY FOOD  CONCESSION,  CLEANING,  MAINTENANCE
 AND SITE PREPARATION AT THE LOCATION WHERE GAMES OF BINGO ARE CONDUCTED.
   § 3. 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.
   § 4. Section 480 of the general municipal law, as amended  by  chapter
 438  of  the  laws of 1962, paragraph (a) of subdivision 1 as amended by
 chapter 611 of the laws of 1963,  paragraph  (b)  of  subdivision  2  as
 amended  by  chapter  413  of  the  laws  of 1963, is amended to read as
 follows:
   § 480. 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 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 SUCH APPLICANT shall [be stated] STATE:
   (1)  the  name  and  address of the applicant together with sufficient
 facts relating to [its] SUCH APPLICANT'S incorporation and  organization
 to enable the governing body of the municipality to determine whether or
 not [it] THE APPLICANT is a bona fide authorized organization;
   (2)  the  names  and  addresses of [its] THE APPLICANT'S officers; 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;

 S. 2009--C                         61                         A. 3009--C
 
   (3) in case the applicant intends to lease premises for  this  purpose
 from  other than an authorized organization, the name and address of the
 licensed commercial lessor of such premises, and the capacity or  poten-
 tial  capacity  for  public  assembly  purposes of space in any premises
 presently owned or occupied by the applicant;
   (4)  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 article to conduct
 bingo or for use of the premises of a licensed commercial lessor;
   (5) 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  whom,  and  the
 purposes for which, they are to be paid;
   (6)  the  specific  purposes  to which the entire net proceeds of such
 games OF BINGO 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 bingo game or games or for assisting therein except
 as in this article otherwise provided; and  such  other  information  as
 shall  be  prescribed by [such] THE rules and regulations OF THE COMMIS-
 SION.
   (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 regu-
 lations of the commission and [of] this article.
   2. Commercial lessor. (a) Each applicant for a license to lease  prem-
 ises  to  a  licensed  organization for the purposes of conducting bingo
 therein shall file with the clerk of the  municipality  [a  written]  AN
 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 capac-
 ity for public assembly purposes; cost of premises  and  assessed  valu-
 ation  for real estate tax purposes, or annual net lease rent, whichever
 is applicable; gross rentals received  and  itemized  expenses  for  the
 immediately 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"
 set forth in section four hundred seventy-six of this article, and  such
 other  information  as shall be prescribed by [such] THE rules and regu-
 lations 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[, and any]. THE LICENSEE SHALL PAY ANY deficiency  of  fee
 thereby  shown  to be due [shall be paid by the licensee] and any excess

 S. 2009--C                         62                         A. 3009--C

 of fee thereby shown to have been paid shall be credited to [said]  SUCH
 licensee,  in  such  manner  as  the commission by rules and regulations
 shall prescribe.
   §  5.  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] DETERMINES 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 OF BINGO are  to  be
 conducted  in  accordance  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] WHAT SO EVER 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 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] THEN THE MUNICIPALITY 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] SUCH GOVERNING BODY determines that the premises pres-
 ently owned or occupied by [said] SUCH applicant are  in  every  respect
 adequate and suitable for conducting bingo games.
   §  6.  Section 486 of the general municipal law, as amended by chapter
 438 of the laws of 1962, is amended to read as follow:
   § 486. Participation by persons under THE AGE OF eighteen.  No  person
 under  the  age of eighteen years shall be permitted to play any game or
 games of bingo conducted pursuant to any license issued under this arti-
 cle [unless accompanied by an adult]. No person under the age  of  eigh-
 teen  years  shall  be  permitted  to  conduct, OPERATE or assist in the
 conduct of any game of bingo conducted pursuant to  any  license  issued
 [under]  PURSUANT TO this article. NOTHING IN THIS SECTION SHALL PREVENT
 A PERSON SIXTEEN YEARS OF AGE OR OLDER FROM  PERFORMING  ANCILLARY  NON-
 GAMING  ACTIVITIES  CONDUCTED  IN  CONJUNCTION  WITH  ANY  GAME OF BINGO
 CONDUCTED PURSUANT TO ANY LICENSE PURSUANT TO THIS ARTICLE.
   § 7. Intentionally omitted.
   § 8. Section 490 of the general municipal law, as amended  by  chapter
 99 of the laws of 1988, is amended to read as follows:
   §  490.  Advertising  of  bingo  games.  A  licensee may advertise the
 conduct of an occasion of bingo to the general public by means of  news-
 paper,  radio,  circular,  handbill  and  poster,  [and] by one sign not
 exceeding sixty square feet in area, which may be displayed on or  adja-
 cent  to  the premises owned or occupied by a licensed authorized organ-
 ization, [and when] AND THROUGH THE INTERNET OR  TELEVISION  AS  MAY  BE

 S. 2009--C                         63                         A. 3009--C
 
 REGULATED BY THE RULES AND REGULATIONS OF THE COMMISSION. WHEN an organ-
 ization is licensed to conduct bingo occasions on the premises of anoth-
 er  licensed authorized organization or of a licensed commercial 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 OR AMBULANCE equipment belonging to  any
 licensed  authorized  organization  which  is  a volunteer fire company,
 VOLUNTEER AMBULANCE CORPS or upon any equipment of a first aid or rescue
 squad in and throughout the community  served  by  such  volunteer  fire
 company, VOLUNTEER AMBULANCE CORPS or such first aid or rescue squad, as
 the  case may be. All advertisements shall be limited to the description
 of such event as "bingo", the name of the licensed authorized  organiza-
 tion  conducting such BINGO occasions, the license number of the author-
 ized organization as assigned by the clerk; THE PRIZES OFFERED  and  the
 date, location and time of the bingo occasion.
   §  9.  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] THAT conducted the same,  and  [its]
 SUCH  AUTHORIZED  ORGANIZATION'S members who were in charge thereof, and
 when applicable the authorized  organization  [which]  THAT  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] 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 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]. A CLERK MAY 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 infor-
 mation, in form prescribed by the [state] COMMISSION, shall be furnished
 in the same manner to the [state racing and wagering board] COMMISSION.
   §  10.  Subdivision  3-b and paragraph (c) of subdivision 5 of section
 186 of the general municipal law, as amended by subdivision 3-b as added
 by chapter 550 of the laws of 1994, paragraph (c) of  subdivision  5  as
 amended  by  chapter  881  of  the  laws of 1981, are amended to read as
 follows:
   3-b. "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.
   (c)  Those  [which  shall]  THAT otherwise lessen the burdens borne by
 government or [which] THAT are voluntarily undertaken by  an  authorized
 organization  to  augment  or supplement services which government would

 S. 2009--C                         64                         A. 3009--C
 
 normally render to the people,  including,  in  the  case  of  volunteer
 [firemen's]  FIREFIGHTERS  OR VOLUNTARY EMERGENCY MEDICAL SERVICE activ-
 ities, the purchase, erection or maintenance of a building for  a  fire-
 house  OR  A  VOLUNTEER AMBULANCE CORPS BUILDING, activities open to the
 public for the enhancement of membership[,] and the purchase  of  equip-
 ment  [which] THAT can reasonably be expected to increase the efficiency
 of response to fires, accidents, MEDICAL EMERGENCIES, public  calamities
 and other emergencies.
   § 11. Subdivisions 5, 6 and 13 of section 189 of the general municipal
 law, subdivision 5 as amended by chapter 434 of the laws of 2016, subdi-
 vision  6 as amended by chapter 302 of the laws of 2010, and subdivision
 13 as amended by chapter 252 of the laws of 1998, 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:
   (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  cost] THE COST OF SUCH PRIZE to the authorized
 organization or, if donated, [its] THE fair market value OF SUCH PRIZE.
   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.  [Nothing herein shall prohibit the sale of raffle]
   (B) RAFFLE tickets MAY BE SOLD to the public, AND A RAFFLE DRAWING MAY
 OCCUR,  outside the premises of an authorized organization or an author-
 ized games of chance lessor[; or in municipalities which have]  IF  SUCH
 SALES OCCUR, OR SUCH DRAWING OCCURS, IN A MUNICIPALITY THAT:
   (1) HAS passed a local law, ordinance or resolution in accordance with
 sections  one  hundred eighty-seven and one hundred eighty-eight of this
 article approving the conduct of games of chance;
   (2) [that are] IS located in the  county  in  which  the  municipality
 issuing  the  RAFFLE  license is located [and] OR in [the counties which
 are] A COUNTY THAT IS contiguous to the county in which the municipality
 issuing the raffle license is located[,  provided  those  municipalities

 S. 2009--C                         65                         A. 3009--C

 have  authorized  the  licensee, in writing, to sell such raffle tickets
 therein and provided, however, that no];
   (3)  HAS  NOT OBJECTED TO SUCH SALES AFTER THE GAMING COMMISSION GIVES
 NOTICE TO SUCH MUNICIPALITY OF AN AUTHORIZED ORGANIZATION'S  REQUEST  TO
 SELL SUCH RAFFLE TICKETS IN SUCH MUNICIPALITY; AND
   (4)  HAS  NOT  OBJECTED TO THE LOCATION IN SUCH MUNICIPALITY THAT SUCH
 DRAWING IS PROPOSED TO OCCUR, AFTER THE COMMISSION GIVES NOTICE TO  SUCH
 MUNICIPALITY  OF  AN  AUTHORIZED  ORGANIZATION'S REQUEST TO CONDUCT SUCH
 DRAWING IN SUCH MUNICIPALITY. A LOCATION OF A DRAWING MAY BE  ON  STATE-
 OWNED  PROPERTY  SO  LONG  AS THE AUTHORIZED ORGANIZATION CONDUCTING THE
 RAFFLE OBTAINS ALL REQUIRED AUTHORIZATIONS TO DO SO  AND  COMPLIES  WITH
 THIS PARAGRAPH.
   (C)  THE  GAMING  COMMISSION  MAY  BY REGULATION PRESCRIBE THE ADVANCE
 NOTICE AN AUTHORIZED ORGANIZATION MUST PROVIDE TO THE GAMING  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
 GAMING 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.
   §  12.  Subdivisions 1 and 2 of section 190-a of the general municipal
 law, as amended by chapter 400 of the laws of 2005, are 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.
   2.  (a)  For  the  purposes of this section, "authorized organization"
 shall mean and include any bona fide religious or  charitable  organiza-
 tion or bona fide educational, fraternal or service organization or bona
 fide organization of veterans [or], volunteer [firefighter, which] FIRE-
 FIGHTERS OR VOLUNTEER AMBULANCE WORKERS THAT by its charter, certificate
 of  incorporation, constitution, or act of the legislature, [shall have]
 HAS 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] ONE YEAR immediately prior to being grant-
 ed the filing requirement exemption contained in subdivision one of this
 section.
   (b) No organization shall be deemed an authorized organization [which]
 THAT is formed primarily for the purpose of conducting games  of  chance
 and  [which]  THAT  does not devote at least seventy-five percent of its
 activities to other than conducting games of chance. No political  party
 shall be deemed an authorized organization.
   §  13. Section 195-d of the general municipal law, as amended by chap-
 ter 637 of the laws of 1999, is amended to read as follows:

 S. 2009--C                         66                         A. 3009--C
 
   § 195-d. 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  article. The clerk or department may in its discretion fix a mini-
 mum 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.  No  alcoholic  beverage  shall  be
 offered or given as a prize in any game of chance.
   3.  A  PLAYER  MAY  PURCHASE  A CHANCE WITH CASH OR, IF THE AUTHORIZED
 ORGANIZATION WISHES, WITH A PERSONAL CHECK.
   § 14. Section 195-e of  the  general  municipal  law,  as  amended  by
 section 94 of the laws of 1981, is amended to read as follows:
   §  195-e.  Advertising  games. A licensee may advertise the conduct of
 games of chance to the general public by means of  newspaper,  circular,
 handbill  and poster, and 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 authorized organization, [and when] THROUGH THE
 INTERNET OR TELEVISION AS MAY BE REGULATED BY THE RULES AND  REGULATIONS
 OF  THE  COMMISSION.   WHEN an organization is licensed OR AUTHORIZED to
 conduct games of chance on THE premises of an authorized games of chance
 lessor, one additional such sign may be displayed on or adjacent to  the
 premises  in  which the games are to be conducted.  Additional signs may
 be displayed upon any [fire fighting] FIREFIGHTING OR  AMBULANCE  equip-
 ment belonging to any licensed authorized organization [which] THAT is a
 volunteer  fire company, VOLUNTEER AMBULANCE CORPS or upon any equipment
 of a first aid or rescue squad in and throughout the community served by
 such volunteer fire company, VOLUNTEER AMBULANCE CORPS or such first aid
 or rescue squad, as the case may be. All advertisements shall be limited
 to the description of such event as "Games  of  chance"  or  "Las  Vegas
 Night",  the  name of the authorized organization conducting such games,
 the license number of the authorized organization  as  assigned  by  the
 clerk  or department, THE PRIZES OFFERED and the date, location and time
 of the event.
   § 15.  Subdivision 2 of section 195-f of the general municipal law, as
 amended by chapter 678 of the laws  of  2004,  is  amended  to  read  as
 follows:
   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 [which] THAT rented its premises
 therefor, shall each furnish to the clerk or department a statement on a
 form prescribed by the [board]  GAMING  COMMISSION,  subscribed  by  the
 member in charge and affirmed by him OR HER as true, under the penalties
 of perjury, showing the number of tickets printed, the number of tickets
 sold,  the  price,  and the number of tickets returned to or retained by
 the authorized organization as unsold, a description  and  statement  of
 the fair market value for each prize actually awarded, the amount of the
 gross receipts derived therefrom, 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, a detailed
 description of the merchandise purchased or the services rendered there-
 for, the net proceeds derived from the raffle at such occasion, the  use
 to  which the proceeds have been or are to be applied [and]. IT shall be
 the duty of each licensee to maintain and keep such books and records as

 S. 2009--C                         67                         A. 3009--C
 
 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
 [board] GAMING 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 [board] GAMING 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 [twenty]  THIRTY  thousand
 dollars during one calendar year, no reporting shall be required.
   §  16. Subdivision 5 of section 195-o of the general municipal law, as
 amended by section 637 of the laws  of  1999,  is  amended  to  read  as
 follows:
   5. Reports. A distributor shall report quarterly to the [board] GAMING
 COMMISSION,  on  a form prescribed by the [board] GAMING 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  [board]  GAMING
 COMMISSION  may  require  that a distributor submit the quarterly report
 and invoices required by this section via [magnetic] ELECTRONIC media or
 electronic data transfer.
   § 17. 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 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] appointed by the temporary presi-
 dent  of  the  senate  and  two  [to be] 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,  WHICH  SHALL  CONTINUE TO EXIST UNTIL SUCH TIME AS THE APPOINT-
 MENTS REQUIRED HEREUNDER ARE MADE. THE NEW YORK RACING ASSOCIATION  WILL
 INCLUDE  KNOWLEDGE  OF  THE MARKETPLACE AND COMMUNITIES IN WHICH THE NEW
 YORK RACING ASSOCIATION OPERATES AS A FACTOR IN BOARD SELECTION; 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

 S. 2009--C                         68                         A. 3009--C
 
 OFFICIO,  NON-VOTING MEMBERS AS APPOINTED PURSUANT TO A MAJORITY VOTE OF
 THE BOARD. ALL PUBLIC APPOINTED MEMBERS OF THE BOARD SHALL BE A RESIDENT
 OF NEW YORK STATE.
   (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 ONE MEMBER APPOINTED
 BY EACH OF THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, AND  SPEAKER
 OF  THE  ASSEMBLY,  THE  MEMBER  APPOINTED  BY THE NEW YORK THOROUGHBRED
 HORSEMEN'S ASSOCIATION,  AND  THE  MEMBER  APPOINTED  BY  THE  NEW  YORK
 THOROUGHBRED  BREEDERS, INC.  SHALL EXPIRE MARCH THIRTY-FIRST, TWO THOU-
 SAND EIGHTEEN; THE INITIAL TERM OF THE REMAINING  MEMBERS  APPOINTED  BY
 EACH  OF THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, AND SPEAKER OF
 THE ASSEMBLY AND TWO MEMBERS APPOINTED BY THE NEW  YORK  RACING  ASSOCI-
 ATION REORGANIZATION BOARD SHALL EXPIRE ON MARCH THIRTY-FIRST, TWO THOU-
 SAND  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 TO REVIEW  INDUSTRY  BEST  PRAC-
 TICES  TO  IMPROVE THE SAFETY OF HORSE RACING OF THE THREE RACETRACKS; 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

 S. 2009--C                         69                         A. 3009--C

 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 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  INCLUDING REAL ESTATE DEVELOPMENT PARCELS AS DEFINED IN THE FRAN-
 CHISE AGREEMENT.
   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.

 S. 2009--C                         70                         A. 3009--C
 
   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.
   8.  THE  FRANCHISE  CORPORATION  SHALL NOT HAVE ANY DIRECT OR INDIRECT
 OWNERSHIP, CONTROL, INFLUENCE, OR INVESTMENT, IN ANY FRANCHISE OVERSIGHT
 BOARD APPROVED DEVELOPMENT OR SUCH ALTERNATIVE USE AS MAY BE APPROVED BY
 THE FRANCHISE OVERSIGHT BOARD CONDUCTED ON THE REAL  ESTATE  DEVELOPMENT
 PARCELS AS DEFINED IN THE FRANCHISE AGREEMENT.
   §  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;
   (D)  review  such  franchised  corporation's  revenue  and expenditure
 [polices] POLICIES which shall include collective bargaining  agreements

 S. 2009--C                         71                         A. 3009--C
 
 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, AND  SUCH  DEVIATION  IS  NOT
 MITIGATED  BY  THE FRANCHISED CORPORATION WITHIN ONE HUNDRED EIGHTY DAYS
 OF THE FRANCHISE OVERSIGHT BOARD PROVIDING NOTICE OF SUCH  DETERMINATION
 TO  THE  FRANCHISED CORPORATION, OR WHEN THE IMPLEMENTATION OF SUCH PLAN
 WOULD, IN THE OPINION OF THE FRANCHISE OVERSIGHT BOARD, POSE  A  SIGNIF-
 ICANT  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,  AND  WHEN  THE  FRANCHISED
 CORPORATION  HAS  FAILED TO ADDRESS CONCERNS IDENTIFIED BY THE FRANCHISE
 OVERSIGHT BOARD PURSUANT TO SUBPARAGRAPH (XVIII) OF THIS PARAGRAPH,  THE
 BOARD  MAY  BY  UNANIMOUS  VOTE  REQUEST  THE  DIRECTOR OF THE BUDGET TO
 IMPOUND AND ESCROW RACING SUPPORT PAYMENTS ACCRUING TO  THE  BENEFIT  OF
 THE  FRANCHISED  CORPORATION  PURSUANT  TO  PARAGRAPHS THREE AND FOUR OF
 SUBDIVISION F OF SECTION SIXTEEN HUNDRED TWELVE OF THE  TAX  LAW.    THE
 DIRECTOR  OF THE BUDGET SHALL RELEASE SUCH IMPOUNDED AND ESCROWED RACING
 SUPPORT PAYMENTS UPON NOTICE FROM THE FRANCHISE OVERSIGHT BOARD THAT THE
 FRANCHISED CORPORATION HAS ACHIEVED THE GOALS OF A NEW CORRECTIVE ACTION
 PLAN APPROVED BY THE BOARD.
   THE DIRECTOR OF THE BUDGET SHALL, UPON WARRANT OF THE FRANCHISE  OVER-
 SIGHT  BOARD, APPROVE THE USE OF WITHHELD RACING SUPPORT PAYMENTS NECES-
 SARY TO SATISFY FINANCIAL INSTRUMENTS USED TO FUND BOARD-APPROVED  CAPI-
 TAL INVESTMENTS, AS APPROVED BY THE FRANCHISE OVERSIGHT BOARD.
   § 3. 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:

 S. 2009--C                         72                         A. 3009--C
 
   (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.
   § 4. 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

 S. 2009--C                         73                         A. 3009--C
 
 and  for  account wagering licensees that do not operate either a simul-
 cast facility that is open to the public within the state of New York or
 a licensed racetrack within the state, twenty thousand dollars per  year
 payable  by  the licensee to the commission for deposit into the general
 fund. Except as provided in  this  section,  the  commission  shall  not
 approve any application to conduct simulcasting into individual or group
 residences,  homes  or  other areas for the purposes of or in connection
 with pari-mutuel wagering. The commission may approve simulcasting  into
 residences,  homes or other areas to be conducted jointly by one or more
 regional off-track betting corporations and one or more of  the  follow-
 ing:  a  franchised  corporation,  thoroughbred  racing corporation or a
 harness racing corporation or association; provided (i) the simulcasting
 consists only of those races on which pari-mutuel betting is  authorized
 by  this  chapter  at  one  or more simulcast facilities for each of the
 contracting off-track betting corporations which  shall  include  wagers
 made  in  accordance  with  section  one  thousand fifteen, one thousand
 sixteen and one thousand seventeen of  this  article;  provided  further
 that  the  contract  provisions or other simulcast arrangements for such
 simulcast facility shall be no less favorable than those  in  effect  on
 January  first,  two  thousand  five;  (ii)  that each off-track betting
 corporation having within its  geographic  boundaries  such  residences,
 homes  or  other  areas  technically  capable of receiving the simulcast
 signal shall be a contracting party; (iii) the distribution of  revenues
 shall  be  subject  to  contractual agreement of the parties except that
 statutory payments to  non-contracting  parties,  if  any,  may  not  be
 reduced;  provided,  however,  that nothing herein to the contrary shall
 prevent a track from televising its races on an irregular basis primari-
 ly for promotional or marketing purposes as found by the commission. For
 purposes of this paragraph, the provisions of section one thousand thir-
 teen of this article shall  not  apply.  Any  agreement  authorizing  an
 in-home simulcasting experiment commencing prior to May fifteenth, nine-
 teen hundred ninety-five, may, and all its terms, be extended until June
 thirtieth,  two  thousand  [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-

 S. 2009--C                         74                         A. 3009--C
 
 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:
   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:

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

   § 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
 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

 S. 2009--C                         76                         A. 3009--C
 
 total deposits in pools resulting from on-track regular bets, and  four-
 teen  to  twenty-one per centum of the total deposits in pools resulting
 from on-track multiple bets and fifteen to twenty-five per centum of the
 total  deposits in pools resulting from on-track exotic bets and fifteen
 to thirty-six per centum of the total deposits in pools  resulting  from
 on-track  super  exotic  bets, plus the breaks. The retention rate to be
 established is subject to the prior approval of the  gaming  commission.
 Such  rate  may not be changed more than once per calendar quarter to be
 effective on the first day of the calendar quarter.  "Exotic  bets"  and
 "multiple  bets"  shall  have  the  meanings  set  forth in section five
 hundred nineteen of this chapter. "Super exotic  bets"  shall  have  the
 meaning  set  forth  in  section  three hundred one of this chapter. For
 purposes of this section, a "pick six bet" shall mean a  single  bet  or
 wager on the outcomes of six races. The breaks are hereby defined as the
 odd  cents over any multiple of five for payoffs greater than one dollar
 five cents but less than five dollars, over  any  multiple  of  ten  for
 payoffs  greater  than  five  dollars but less than twenty-five dollars,
 over any multiple of twenty-five for payoffs  greater  than  twenty-five
 dollars but less than two hundred fifty dollars, or over any multiple of
 fifty  for  payoffs over two hundred fifty dollars. Out of the amount so
 retained there shall be paid  by  such  franchised  corporation  to  the
 commissioner  of  taxation and finance, as a reasonable tax by the state
 for the privilege of conducting pari-mutuel betting on the races run  at
 the  race  meetings  held  by such franchised corporation, the following
 percentages of the total pool for regular and  multiple  bets  five  per
 centum  of regular bets and four per centum of multiple bets plus twenty
 per centum of the breaks; for  exotic  wagers  seven  and  one-half  per
 centum  plus  twenty per centum of the breaks, and for super exotic bets
 seven and one-half per centum plus fifty per centum of the  breaks.  For
 the  period  June  first, nineteen hundred ninety-five through September
 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be
 three per centum and such tax on multiple wagers shall be two  and  one-
 half  per  centum,  plus twenty per centum of the breaks. For the period
 September tenth, nineteen  hundred  ninety-nine  through  March  thirty-
 first,  two  thousand  one, such tax on all wagers shall be two and six-
 tenths per centum and for the  period  April  first,  two  thousand  one
 through  December  thirty-first, two thousand [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:

 S. 2009--C                         77                         A. 3009--C
 
   (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,
 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-

 S. 2009--C                         78                         A. 3009--C
 
 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
 
                           Intentionally Omitted
 
                                  PART SS
 
   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 WORK-
 ERS' COMPENSATION  BOARD,  INCLUDING,  WITHOUT  LIMITATION,  SUBDIVISION
 THREE OF SECTION FIFTY OF THE WORKERS' COMPENSATION LAW.

 S. 2009--C                         79                         A. 3009--C
 
   §  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
 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

 S. 2009--C                         80                         A. 3009--C
 
 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-
 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 THIS CHAPTER TO OPERATE THE RACING AND TRAIN-
 ING FACILITIES AT FINGER LAKES RACETRACK;
   (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

 S. 2009--C                         81                         A. 3009--C
 
 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
 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,

 S. 2009--C                         82                         A. 3009--C
 
 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
 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

 S. 2009--C                         83                         A. 3009--C

 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
 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

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

 S. 2009--C                         85                         A. 3009--C
 
 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 TT
 
   Section 1. Subsection (eee) of section 606 of the tax law  is  amended
 by adding a new paragraph 13 to read as follows:
   (13) (A) NOTHING HEREIN SHALL BE CONSTRUED TO PRECLUDE THE COMMISSION-
 ER FROM MAKING A PRELIMINARY ADVANCE PAYMENT OF THE CREDIT BASED UPON AN
 ESTIMATE  OF  THE  STAR  TAX  SAVINGS  APPLICABLE  TO  A SCHOOL DISTRICT
 PORTION, WHERE HE OR SHE FINDS THAT ATTEMPTING TO ASCERTAIN  THE  ACTUAL
 STAR  TAX  SAVINGS APPLICABLE TO THE SCHOOL DISTRICT PORTION WOULD JEOP-
 ARDIZE THE TIMELY ISSUANCE OF THE PAYMENT. WHEN MAKING SUCH AN ESTIMATE,
 THE COMMISSIONER SHALL CONSIDER THE STAR TAX SAVINGS APPLICABLE  IN  THE
 SCHOOL  DISTRICT  FISCAL  YEAR PRECEDING THE ASSOCIATED FISCAL YEAR, THE
 ALLOWABLE LEVY GROWTH FACTOR APPLICABLE TO THE CALCULATION  OF  THE  TAX
 LEVY  LIMIT  FOR  THE  ASSOCIATED FISCAL YEAR PURSUANT TO PARAGRAPH A OF
 SUBDIVISION TWO OF SECTION TWO THOUSAND TWENTY-THREE-A OF THE  EDUCATION
 LAW,  TAXABLE  ASSESSED VALUE WHERE APPROPRIATE, AND SUCH OTHER INFORMA-
 TION THAT IN HIS OR HER JUDGMENT WILL HELP MAKE THE ESTIMATE AS ACCURATE
 AS POSSIBLE.
   (B) NOTHING HEREIN SHALL BE CONSTRUED  TO  PRECLUDE  THE  COMMISSIONER
 FROM MAKING A PRELIMINARY ADVANCE PAYMENT OF THE CREDIT WITHOUT ATTEMPT-
 ING  TO ASCERTAIN THE TAXPAYER'S QUALIFYING TAXES, WHERE HE OR SHE FINDS
 THAT ATTEMPTING TO ASCERTAIN THE TAXPAYER'S QUALIFYING TAXES WOULD JEOP-
 ARDIZE THE TIMELY ISSUANCE OF THE PAYMENT.
   (C) IF THE COMMISSIONER DETERMINES THAT A TAXPAYER RECEIVED A PRELIMI-
 NARY ADVANCE PAYMENT THAT IS ABOVE OR BELOW THE ADVANCE PAYMENT TO WHICH
 HE OR SHE WAS ENTITLED UNDER THIS  SUBSECTION,  THE  COMMISSIONER  SHALL
 PROVIDE  NOTICE  TO  SUCH  TAXPAYER THAT THE NEXT ADVANCE PAYMENT DUE TO
 SUCH TAXPAYER UNDER THIS SUBSECTION SHALL BE ADJUSTED TO RECONCILE  SUCH
 UNDERPAYMENT  OR  OVERPAYMENT; PROVIDED, HOWEVER, THE COMMISSIONER SHALL
 PERMIT A TAXPAYER  TO  REQUEST  THAT  SUCH  ADJUSTMENT  BE  MADE  ON  AN
 ORIGINALLY FILED TIMELY INCOME TAX RETURN FOR THE TAX YEAR IN WHICH SUCH
 OVERPAYMENT  OR  UNDERPAYMENT OCCURRED, PROVIDED SUCH RETURN IS FILED ON
 OR BEFORE THE DUE DATE FOR SUCH RETURN,  DETERMINED  WITHOUT  REGARD  TO
 EXTENSIONS.

 S. 2009--C                         86                         A. 3009--C
 
   (D) A TAXPAYER WHO RECEIVED A PRELIMINARY ADVANCE PAYMENT THAT CONSTI-
 TUTES AN OVERPAYMENT SHALL NOT BE REQUIRED TO PAY INTEREST ON THE AMOUNT
 OF THE OVERPAYMENT.
   §  2.  Subparagraph (B) of paragraph 10 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) On or before [September fifteenth of each year] THE DATE SPECIFIED
 BELOW,  or  as  soon  thereafter  as practicable, the commissioner shall
 determine the eligibility of taxpayers for  this  credit  utilizing  the
 information  available  to  him or her as obtained from the applications
 submitted on or before July first of that year, or such  later  date  as
 may  have been prescribed by the commissioner for that purpose, and from
 such other sources as the commissioner deems reliable  and  appropriate.
 For  those  taxpayers  whom the commissioner has determined eligible for
 this credit, the commissioner shall advance  a  payment  in  the  amount
 specified  in paragraph three, four or six of this subsection, whichever
 is applicable. Such payment shall be issued by [September  thirtieth  of
 the  year  the  credit  is allowed] THE DATE SPECIFIED BELOW, or as soon
 thereafter as is practicable; PROVIDED THAT IF SUCH  PAYMENT  IS  ISSUED
 AFTER  SUCH DATE, IT SHALL BE SUBJECT TO INTEREST AT THE RATE PRESCRIBED
 BY SUBPARAGRAPH (A) OF PARAGRAPH TWO OF SUBSECTION (J)  OF  SECTION  SIX
 HUNDRED NINETY-SEVEN OF THIS ARTICLE.  Nothing contained herein shall be
 deemed to preclude the commissioner from issuing payments after [Septem-
 ber  thirtieth] SUCH DATE to qualified taxpayers whose applications were
 made after July first of that year, or such later date as may have  been
 prescribed by the commissioner for such purpose.
   (I) THE APPLICABLE DATES FOR THIS PURPOSE ARE AS FOLLOWS:
   (I)  IF THE SCHOOL DISTRICT TAX ROLL IS FILED WITH THE COMMISSIONER ON
 OR BEFORE JULY FIRST, THE DETERMINATION OF ELIGIBILITY SHALL BE MADE  BY
 JULY FIFTEENTH, OR AS SOON THEREAFTER AS IS PRACTICABLE, AND THE ADVANCE
 PAYMENT  SHALL  BE ISSUED BY JULY THIRTIETH, OR AS SOON THEREAFTER AS IS
 PRACTICABLE.
   (II) IF THE SCHOOL DISTRICT TAX ROLL IS FILED  WITH  THE  COMMISSIONER
 AFTER  JULY FIRST AND ON OR BEFORE SEPTEMBER FIRST, THE DETERMINATION OF
 ELIGIBILITY SHALL BE MADE BY SEPTEMBER FIFTEENTH, OR AS SOON  THEREAFTER
 AS  IS PRACTICABLE, AND THE ADVANCE PAYMENT SHALL BE ISSUED BY SEPTEMBER
 THIRTIETH, OR AS SOON THEREAFTER AS IS PRACTICABLE.
   (III) IF THE SCHOOL DISTRICT TAX ROLL IS FILED WITH  THE  COMMISSIONER
 AFTER SEPTEMBER FIRST, THE DETERMINATION OF ELIGIBILITY SHALL BE MADE BY
 THE FIFTEENTH DAY AFTER SUCH FILING, OR AS SOON THEREAFTER AS IS PRACTI-
 CABLE,  AND  THE  ADVANCE  PAYMENT  SHALL BE ISSUED BY THE THIRTIETH DAY
 AFTER SUCH FILING, OR AS SOON THEREAFTER AS IS PRACTICABLE.
   (II) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBPARAGRAPH, IN
 THE CASE OF TAXPAYERS WHOSE PRIMARY RESIDENCE IS A COOPERATIVE APARTMENT
 OR A MOBILE HOME THAT IS SUBJECT TO THE PROVISIONS OF  SUBPARAGRAPH  (A)
 OR  (B) OF PARAGRAPH SIX OF THIS SUBSECTION, THE PAYMENT SHALL BE ISSUED
 BY THE SIXTIETH DAY FOLLOWING RECEIPT OF ALL OF THE DATA NEEDED TO PROP-
 ERLY CALCULATE THE CREDIT, OR AS SOON THEREAFTER AS IS PRACTICABLE.
   § 3. Subdivision 6 of section 1306-a of the real property tax law,  as
 amended  by  section  7  of part A of chapter 73 of the laws of 2016, is
 amended to read as follows:
   6. When the commissioner determines, at  least  [thirty]  TWENTY  days
 prior  to  the  levy of school district taxes, that an advance credit of
 the personal income tax credit authorized by subsection (eee) of section
 six hundred six of the tax law will be  provided  to  the  owners  of  a
 parcel  in that school district, he or she shall so notify the assessor,

 S. 2009--C                         87                         A. 3009--C

 the county director of real property tax services, and  the  authorities
 of  the school district, who shall cause a statement to be placed on the
 tax bill for the parcel in substantially the following  form:  ["A  STAR
 check  of  $      will  be  mailed  to  you upon issuance by the NYS Tax
 Department".  The commissioner shall advise such officials of the amount
 to be entered therein.] "AN ESTIMATED STAR CHECK WILL BE MAILED  TO  YOU
 UPON ISSUANCE BY THE NYS TAX DEPARTMENT. ANY OVERPAYMENT OR UNDERPAYMENT
 CAN BE RECONCILED ON YOUR NEXT TAX RETURN OR STAR CREDIT CHECK."
   Notwithstanding  any  provision  of  law to the contrary, in the event
 that the parcel in question had been granted a  STAR  exemption  on  the
 assessment  roll upon which school district taxes are to be levied, such
 exemption shall be deemed null and  void,  shall  be  removed  from  the
 assessment  roll, and shall be disregarded when the parcel's tax liabil-
 ity is determined. The assessor or other  local  official  or  officials
 having  custody  and  control  of  the data file used to generate school
 district tax rolls and tax bills shall be  authorized  and  directed  to
 change  such file as necessary to enable the school district authorities
 to discharge the duties imposed upon them by this subdivision.
   § 4. This act shall take effect immediately.
 
                                  PART UU
 
   Section 1. Paragraph 2 of subdivision (e) of section 1111 of  the  tax
 law,  as  amended  by  section 1 of part LL of chapter 59 of the laws of
 2014, is amended to read as follows:
   (2) (i) Where the motor fuel is imported, manufactured or sold in,  or
 diesel  motor fuel is sold or used in the region referred to in subpara-
 graph (i) of paragraph one of this subdivision, the tax required  to  be
 prepaid  pursuant  to section eleven hundred two of this article on each
 gallon of such fuel shall be [seventeen and one-half] SIXTEEN cents.
   (ii) Where motor fuel is imported, manufactured or sold in, or  diesel
 motor  fuel  is  sold  or used in the region referred to in subparagraph
 (ii) of paragraph one of  this  subdivision,  the  tax  required  to  be
 prepaid  pursuant  to section eleven hundred two of this article on each
 gallon of such fuel shall be [twenty-one] SIXTEEN cents.
   (iii) Where motor fuel is imported, manufactured or sold in, or diesel
 motor fuel is sold or used in the region  referred  to  in  subparagraph
 (iii)  of  paragraph  one  of  this  subdivision, the tax required to be
 prepaid pursuant to section eleven hundred two of this article  on  each
 gallon of such fuel shall be [sixteen] FIFTEEN cents.
   §  2.  Subdivision  (e)  of  section 1111 of the tax law is amended by
 adding two new paragraphs 4 and 5 to read as follows:
   (4) THE COMMISSIONER IS AUTHORIZED TO ADJUST THE  RATES  IN  PARAGRAPH
 TWO OF THIS SUBDIVISION AND SHALL PRESCRIBE A SCHEDULE OF SUCH RATES FOR
 EACH  REGION  DESCRIBED IN PARAGRAPH ONE OF THIS SUBDIVISION AS PROVIDED
 IN THIS PARAGRAPH.
   (I) THE SCHEDULE REQUIRED BY THIS PARAGRAPH SHALL BE REVIEWED  SEMIAN-
 NUALLY DURING THE MONTHS OF APRIL AND OCTOBER OF EACH YEAR, BEGINNING IN
 OCTOBER,  TWO  THOUSAND  SEVENTEEN.  THE  COMMISSIONER SHALL DETERMINE A
 TENTATIVE RATE OF TAX THAT WOULD BE REQUIRED TO BE PREPAID  PURSUANT  TO
 SECTION  ELEVEN HUNDRED TWO OF THIS ARTICLE ON EACH GALLON OF MOTOR FUEL
 OR DIESEL MOTOR FUEL SOLD OR USED BY MULTIPLYING  THE  REGIONAL  AVERAGE
 RETAIL SALES PRICES FOR SUCH FUEL FOR EACH REGION DESCRIBED IN PARAGRAPH
 ONE  OF THIS SUBDIVISION BY A NUMBER THAT IS SEVENTY-FIVE PERCENT OF THE
 AVERAGE LOCAL SALES TAX RATE IN EACH SUCH REGION AND ADDING TO THE PROD-
 UCT THEREOF THE TAXES IMPOSED BY PARAGRAPHS ONE AND TWO  OF  SUBDIVISION

 S. 2009--C                         88                         A. 3009--C
 
 (M)  OF  THIS  SECTION. THE REGIONAL AVERAGE RETAIL SALES PRICE SHALL BE
 DETERMINED FOR PURPOSES OF THIS SUBDIVISION USING DATA  REGARDING  SALES
 PRICES,  WHICH  SHALL  INCLUDE,  BUT  NOT BE LIMITED TO, SALES PRICES AS
 COMPILED  BY  GOVERNMENT  OR  INDUSTRY  SURVEYS AND SOURCES, TAKING INTO
 CONSIDERATION WITH RESPECT TO MOTOR FUEL,  THE  VOLUMES  AND  PRICES  OF
 UNLEADED  MOTOR  FUELS, INCLUDING REFORMULATED OR LIKE MOTOR FUELS, SOLD
 IN THIS STATE AND WITH RESPECT TO BOTH MOTOR FUEL AND DIESEL MOTOR FUEL,
 THE VOLUME AND PRICES OF SUCH FUELS SOLD AT FULL SERVICE  AND  SELF-SER-
 VICE  PUMPS FOR SUCH FUELS, DURING AN IMMEDIATELY PRECEDING PERIOD OF UP
 TO TWELVE MONTHS ENDING THE LAST DAY OF MARCH IN THE CASE OF  THE  APRIL
 SEMIANNUAL  REVIEW  AND  ENDING THE LAST DAY OF SEPTEMBER IN THE CASE OF
 THE OCTOBER SEMIANNUAL REVIEW;  PROVIDED,  HOWEVER,  THAT  THE  REGIONAL
 AVERAGE  RETAIL  SALES  PRICES FOR BOTH MOTOR FUEL AND DIESEL MOTOR FUEL
 SHALL REPRESENT THE RETAIL SALES PRICES UPON WHICH THE  TAX  UNDER  THIS
 ARTICLE  AND  PURSUANT  TO  THE AUTHORITY OF ARTICLE TWENTY-NINE OF THIS
 CHAPTER IS COMPUTED (INCLUDING ALL FEDERAL AND STATE AND ANY LOCAL TAXES
 INCLUDED IN SUCH PRICE) FOR SUCH PERIOD.
   (II) IF UPON SUCH REVIEW, IT IS DETERMINED THAT THE TENTATIVE RATE  OF
 TAX  THAT WOULD BE REQUIRED TO BE PREPAID FOR MOTOR FUEL OR DIESEL MOTOR
 FUEL IN ANY OF THE REGIONS DESCRIBED IN PARAGRAPH ONE OF  THIS  SUBDIVI-
 SION  WOULD INCREASE OR DECREASE THE RATE FOR SUCH REGION THEN IN EFFECT
 BY TWO OR MORE CENTS PER GALLON, THE COMMISSIONER SHALL ADJUST SUCH RATE
 TO BE EQUAL TO THE TENTATIVE RATE, WHICH SHALL TAKE EFFECT ON THE  FIRST
 DAY OF JUNE OR THE FIRST DAY OF DECEMBER, RESPECTIVELY. PROVIDED, HOWEV-
 ER, THE COMMISSIONER SHALL SET THE RATE OF TAX REQUIRED TO BE PREPAID IN
 THE  REGION  DESCRIBED  IN  SUBPARAGRAPH  (II)  OF PARAGRAPH ONE OF THIS
 SUBDIVISION EQUAL TO THE RATE SET FORTH  IN  SUBPARAGRAPH  (I)  OF  SUCH
 PARAGRAPH,  UNLESS THE REGIONAL AVERAGE RETAIL SALES PRICE IN THE METRO-
 POLITAN  COMMUTER  TRANSPORTATION  DISTRICT  EXCEEDS  FOUR  DOLLARS  PER
 GALLON.  IN  SUCH  EVENT,  THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A
 SEPARATE RATE IN THE REGION DESCRIBED  IN  SUCH  SUBPARAGRAPH  (II)  AND
 SHALL COMPUTE SUCH RATE BY MULTIPLYING THE REGIONAL AVERAGE RETAIL SALES
 PRICES  FOR  MOTOR FUEL AND DIESEL MOTOR FUEL IN SUCH REGION BY A NUMBER
 THAT IS EIGHTY-FIVE PERCENT OF THE AVERAGE LOCAL SALES TAX RATE IN  SUCH
 REGION AND ADDING TO THE PRODUCT THEREOF THE TAXES IMPOSED BY PARAGRAPHS
 ONE AND TWO OF SUBDIVISION (M) OF THIS SECTION.
   (III) THE COMMISSIONER SHALL CAUSE TO BE PUBLISHED ON THE DEPARTMENT'S
 WEBSITE  THE  SCHEDULE  OF  RATES  AND THE REGIONAL AVERAGE RETAIL SALES
 PRICES OF MOTOR FUEL AND DIESEL MOTOR FUEL FIXED  BY  THIS  SECTION,  NO
 LATER THAN TEN DAYS PRIOR TO THE EFFECTIVE DATE OF SUCH RATES.  NOTWITH-
 STANDING  ANY OTHER PROVISION OF LAW, THE CALCULATION AND PUBLICATION OF
 THE RATES SO FIXED BY THE  PROVISIONS  OF  THIS  SECTION  SHALL  NOT  BE
 INCLUDED  WITHIN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION ONE HUNDRED
 TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT RELATING TO THE DEFINITION
 OF A RULE.
   (5) WHERE A NEW RATE OF TAX REQUIRED TO BE PREPAID FOR MOTOR  FUEL  OR
 DIESEL  MOTOR  FUEL  IS  DETERMINED BY THE COMMISSIONER, (I) IF SUCH NEW
 RATE IS LESS THAN THE RATE THEN IN EFFECT, ON THE DATE THE RATE  BECOMES
 EFFECTIVE  (A) A REGISTERED DISTRIBUTOR SHALL BE ENTITLED TO A CREDIT IN
 AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE AMOUNT OF THE PREPAID  TAX
 PAID  OR  INCURRED  BY HIM OR HER WITH RESPECT TO MOTOR FUEL WHICH HE OR
 SHE IMPORTED AND WHICH HE OR SHE HAS IN INVENTORY AT THE TIME  SUCH  NEW
 RATE  BECOMES EFFECTIVE AND THE AMOUNT OF TAX WHICH WOULD BE DUE ON SUCH
 INVENTORY IF THE PREPAID TAX WERE CALCULATED BASED ON SUCH  NEW  AVERAGE
 PRICE  FOR THE REGION IN WHICH SUCH MOTOR FUEL WAS IMPORTED AND (B) SUCH
 INVENTORY SHALL THEN BE DEEMED TO HAVE BEEN TAXED BASED ON THE RATE  AND

 S. 2009--C                         89                         A. 3009--C
 
 ALL  CERTIFICATIONS OF TAX PAYMENT GIVEN BY THE DISTRIBUTOR WITH RESPECT
 TO MOTOR FUEL IN SUCH INVENTORY SHALL INDICATE A  PASS  THROUGH  OF  THE
 PREPAID  TAX  BASED  ON SUCH NEW PRICE, (II) IF SUCH NEW RATE IS GREATER
 THAN  THE EXISTING RATE, ON THE DATE SUCH NEW RATE BECOMES EFFECTIVE (A)
 SUCH DISTRIBUTOR SHALL BECOME LIABLE TO PAY AN ADDITIONAL TAX  EQUAL  TO
 THE DIFFERENCE BETWEEN THE AMOUNT OF TAX WHICH WOULD BE DUE WITH RESPECT
 TO MOTOR FUEL WHICH HE OR SHE IMPORTED AND WHICH HE OR SHE HAS IN INVEN-
 TORY  AT  THE TIME SUCH NEW RATE BECOMES EFFECTIVE IF THE PREPAID TAX ON
 SUCH MOTOR FUEL WERE CALCULATED BASED ON SUCH NEW AVERAGE PRICE FOR  THE
 REGION  IN  WHICH SUCH MOTOR FUEL WAS IMPORTED AND THE AMOUNT OF PREPAID
 TAX PAID OR ACTUALLY INCURRED BY SUCH DISTRIBUTOR WITH RESPECT  TO  SUCH
 MOTOR  FUEL  AND  (B)  SUCH  INVENTORY SHALL THEN BE DEEMED TO HAVE BEEN
 TAXED BASED ON THE NEW RATE AND ALL CERTIFICATIONS OF TAX PAYMENT  GIVEN
 BY  THE  DISTRIBUTOR  WITH RESPECT TO MOTOR FUEL IN SUCH INVENTORY SHALL
 INDICATE A PASS THROUGH OF THE PREPAID TAX BASED ON SUCH NEW RATE.  SUCH
 CREDIT  SHALL  BE ALLOWED WITH RESPECT TO OR SUCH TAX SHALL BE PAID WITH
 THE RETURN COVERING THE MONTH IMMEDIATELY PRECEDING THE MONTH  IN  WHICH
 SUCH  NEW RATE BECOMES EFFECTIVE. ANY CARRYOVER CREDIT MAY BE APPLIED TO
 SUBSEQUENT PERIODS.  THE AMOUNT TO BE REPORTED AS ADDITIONAL  TAX  SHALL
 BE  PAID  AND  DISPOSED  OF IN THE SAME MANNER AS THE TAX REQUIRED TO BE
 PREPAID BY SECTION ELEVEN HUNDRED TWO OF THIS ARTICLE.  SUCH  ADDITIONAL
 TAX  SHALL  BE  DETERMINED, ASSESSED, COLLECTED AND ENFORCED IN THE SAME
 MANNER AS THE TAX REQUIRED TO BE PREPAID BY SECTION ELEVEN  HUNDRED  TWO
 OF THIS ARTICLE.
   § 3. This act shall take effect September 1, 2017.
 
                                  PART VV
 
   Section  1. The opening paragraph of paragraph (a) of subdivision 5 of
 section 210-A of the tax law, as amended by section 4 of part P of chap-
 ter 60 of the laws of 2016, is amended to read as follows:
   A financial instrument is a "nonqualified financial instrument" if  it
 is  not  a qualified financial instrument. A qualified financial instru-
 ment means a financial instrument that is of a type described in any  of
 clauses  (A), (B), (C), (D), (G), (H) or (I) of subparagraph two of this
 paragraph and that has been marked to market in the taxable year by  the
 taxpayer under section 475 or section 1256 of the internal revenue code.
 Further,  if  the  taxpayer  has  in the taxable year marked to market a
 financial instrument of the type described in any of  the  clauses  (A),
 (B),  (C),  (D),  (G), (H) or (I) of subparagraph two of this paragraph,
 then any financial instrument within that type described  in  the  above
 specified  clause  or  clauses that has not been marked to market by the
 taxpayer under section 475 or section 1256 of the internal revenue  code
 is a qualified financial instrument in the taxable year. Notwithstanding
 the  two  preceding sentences, (i) a loan secured by real property shall
 not be a qualified financial instrument, (ii) if the only loans that are
 marked to market by the taxpayer under section 475 or  section  1256  of
 the  internal  revenue  code are loans secured by real property, then no
 loans shall be qualified financial  instruments,  (iii)  stock  that  is
 investment  capital  as  defined in paragraph (a) of subdivision five of
 section two hundred eight of this  article  shall  not  be  a  qualified
 financial  instrument, and (iv) stock that generates other exempt income
 as defined in subdivision six-a of section two  hundred  eight  of  this
 article  and  that  is not marked to market under section 475 or section
 1256 of the internal revenue  code  shall  not  constitute  a  qualified
 financial  instrument with respect to the income from that stock that is

 S. 2009--C                         90                         A. 3009--C
 
 described in such subdivision six-a. If a corporation is included  in  a
 combined  report, the definition of qualified financial instrument shall
 be determined on a combined basis. IN THE CASE OF A RIC OR A  REIT  THAT
 IS NOT A CAPTIVE RIC OR A CAPTIVE REIT, A QUALIFIED FINANCIAL INSTRUMENT
 MEANS  A  FINANCIAL  INSTRUMENT  THAT  IS  OF A TYPE DESCRIBED IN ANY OF
 CLAUSES (A), (B), (C), (D), (G), (H) OR (I) OF SUBPARAGRAPH TWO OF  THIS
 PARAGRAPH,  OTHER  THAN  (I) A LOAN SECURED BY REAL PROPERTY, (II) STOCK
 THAT IS INVESTMENT CAPITAL AS DEFINED IN PARAGRAPH  (A)  OF  SUBDIVISION
 FIVE  OF SECTION TWO HUNDRED EIGHT OF THIS ARTICLE, AND (III) STOCK THAT
 GENERATES OTHER EXEMPT INCOME AS DEFINED IN SUBDIVISION SIX-A OF SECTION
 TWO HUNDRED EIGHT OF THIS ARTICLE WITH RESPECT TO THE INCOME  FROM  THAT
 STOCK THAT IS DESCRIBED IN SUCH SUBDIVISION SIX-A.
   § 2. Clause (D) of subparagraph 1 of paragraph (d) of subdivision 1 of
 section  210 of the tax law, as amended by section 19 of part T of chap-
 ter 59 of the laws of 2015, is amended to read as follows:
   (D) Otherwise, for all other taxpayers not covered by clauses (A), (B)
 [and], (C) AND (D-1) of this subparagraph, the amount prescribed by this
 paragraph will be determined in accordance with the following table:
 
 If New York receipts are:                The fixed dollar minimum tax is:
  not more than $100,000                               $   25
  more than $100,000 but not over $250,000             $   75
  more than $250,000 but not over $500,000             $  175
  more than $500,000 but not over $1,000,000           $  500
  more than $1,000,000 but not over $5,000,000         $1,500
  more than $5,000,000 but not over $25,000,000        $3,500
  more than $25,000,000 but not over $50,000,000       $5,000
  more than $50,000,000 but not over $100,000,000      $10,000
  more than $100,000,000 but not over $250,000,000     $20,000
  more than $250,000,000 but not over $500,000,000     $50,000
  more than $500,000,000 but not over $1,000,000,000   $100,000
  Over $1,000,000,000                                  $200,000

   § 3. Subparagraph 1 of paragraph (d) of subdivision 1 of  section  210
 of  the  tax  law  is  amended  by  adding a new clause (D-1) to read as
 follows:
   (D-1) IN THE CASE OF A REIT OR A RIC THAT IS NOT  A  CAPTIVE  REIT  OR
 CAPTIVE  RIC, THE AMOUNT PRESCRIBED BY THIS PARAGRAPH WILL BE DETERMINED
 IN ACCORDANCE WITH THE FOLLOWING TABLE:
 
 IF NEW YORK RECEIPTS ARE:                THE FIXED DOLLAR MINIMUM TAX IS:
  NOT MORE THAN $100,000                               $   25
  MORE THAN $100,000 BUT NOT OVER $250,000             $   75
  MORE THAN $250,000 BUT NOT OVER $500,000             $  175
  MORE THAN $500,000                                   $  500

   § 4. The opening paragraph  of  paragraph  (a)  of  subdivision  5  of
 section  11-654.2 of the administrative code of the city of New York, as
 amended by section 16 of part P of chapter 60 of the laws  of  2016,  is
 amended to read as follows:
   A  financial instrument is a "nonqualified financial instrument" if it
 is not a qualified financial instrument. A qualified  financial  instru-
 ment  means a financial instrument that is of a type described in any of
 [clause] CLAUSES (i), (ii),  (iii),  (iv),  (vii),  (viii)  or  (ix)  of
 subparagraph two of this paragraph and that has been marked to market in
 the  taxable  year  by the taxpayer under section 475 or section 1256 of

 S. 2009--C                         91                         A. 3009--C
 
 the internal revenue code. Further, if the taxpayer has in  the  taxable
 year  marked  to  market a financial instrument of the type described in
 any of [clause] CLAUSES (i), (ii), (iii), (iv), (vii), (viii) or (ix) of
 subparagraph two of this paragraph, then any financial instrument within
 that  type  described  in the above specified clause or clauses that has
 not been marked to market by the taxpayer under section 475  or  section
 1256 of the internal revenue code is a qualified financial instrument in
 the  taxable  year.  Notwithstanding  the two preceding sentences, (i) a
 loan secured by real property shall not be a qualified financial instru-
 ment, (ii) if the only loans that are marked to market by  the  taxpayer
 under section 475 or section 1256 of the internal revenue code are loans
 secured  by  real  property,  then no loans shall be qualified financial
 instruments, (iii) stock that is investment capital as defined in  para-
 graph (a) of subdivision four of section 11-652 of this subchapter shall
 not  be  a qualified financial instrument, and (iv) stock that generates
 other exempt income as defined in subdivision five-a of  section  11-652
 of this subchapter and that is not marked to market under section 475 or
 section  1256 of the internal revenue code shall not constitute a quali-
 fied financial instrument with respect to the  income  from  that  stock
 that  is  described  in  such  subdivision  five-a.  If a corporation is
 included in a combined report, the  definition  of  qualified  financial
 instrument  shall  be  determined on a combined basis.  IN THE CASE OF A
 RIC OR A REIT THAT IS NOT A CAPTIVE RIC OR A CAPTIVE REIT,  A  QUALIFIED
 FINANCIAL  INSTRUMENT  MEANS  A  FINANCIAL  INSTRUMENT THAT IS OF A TYPE
 DESCRIBED IN ANY OF CLAUSES (I), (II), (III),  (IV),  (VII),  (VIII)  OR
 (IX)  OF  SUBPARAGRAPH  TWO  OF  THIS  PARAGRAPH,  OTHER THAN (I) A LOAN
 SECURED BY REAL PROPERTY, (II)  STOCK  THAT  IS  INVESTMENT  CAPITAL  AS
 DEFINED  IN  PARAGRAPH (A) OF SUBDIVISION FOUR OF SECTION 11-652 OF THIS
 SUBCHAPTER, AND (III)  STOCK  THAT  GENERATES  OTHER  EXEMPT  INCOME  AS
 DEFINED  IN SUBDIVISION FIVE-A OF SECTION 11-652 OF THIS SUBCHAPTER WITH
 RESPECT TO THE INCOME FROM THAT STOCK THAT IS DESCRIBED IN SUCH SUBDIVI-
 SION FIVE-A.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2016.
 
                                  PART WW
 
   Section 1. Subdivision (a) of section 1115 of the tax law  is  amended
 by adding a new paragraph 44 to read as follows:
   (44)  MONUMENTS  AS THAT TERM IS DEFINED IN SUBDIVISION (F) OF SECTION
 FIFTEEN HUNDRED TWO OF THE NOT-FOR-PROFIT CORPORATION LAW.
   § 2. This act shall take effect on the first day of a sales tax  quar-
 terly period, as described in subdivision (b) of section 1136 of the tax
 law,  beginning  at least ninety days after the date this act shall have
 become a law and shall apply to sales made on or after such date.
 
                                  PART XX
 
   Section 1. Subdivision 3 of section 16-v of section 1 of  chapter  174
 of  the  laws of 1968, constituting the New York state urban development
 corporation act, is amended by adding a new paragraph  (e)  to  read  as
 follows:
   (E)  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW TO THE CONTRARY, A
 QUALIFIED ENTITY THAT HAS PREVIOUSLY BEEN DESIGNATED AS A NEW YORK STATE
 INCUBATOR AND HAS NOT FULLY DISBURSED ANY  GRANTS  AWARDED  PURSUANT  TO

 S. 2009--C                         92                         A. 3009--C
 
 THIS SECTION, SHALL CONTINUE BEING DESIGNATED AS SUCH BY THE CORPORATION
 FOR AN ADDITIONAL THREE YEARS.
   § 2. This act shall take effect immediately.
 
                                  PART YY
 
   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 ZZ
 
   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
 meet  to be eligible as a regionally significant project, including, but

 S. 2009--C                         93                         A. 3009--C

 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 AAA
 
   Section 1. Legislative intent. The purpose of this act  is  to  ensure
 the   safety,  reliability,  and  cost-effectiveness  of  transportation
 network company (TNC) services within the  state  of  New  York  and  to

 S. 2009--C                         94                         A. 3009--C
 
 preserve  and  enhance  access to these important transportation options
 for residents and visitors to the state.
   §  2.  The  vehicle and traffic law is amended by adding a new article
 44-B to read as follows:
                               ARTICLE 44-B
                  TRANSPORTATION NETWORK COMPANY SERVICES
 SECTION 1691. DEFINITIONS.
         1692. GENERAL PROVISIONS.
         1693. FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK  COMPA-
                 NIES.
         1694. DISCLOSURES.
         1695. INSURANCE PROVISIONS.
         1696. DRIVER AND VEHICLE REQUIREMENTS.
         1697. MAINTENANCE OF RECORDS.
         1698. AUDIT PROCEDURES; CONFIDENTIALITY OF RECORDS.
         1699. CRIMINAL   HISTORY   BACKGROUND  CHECK  OF  TRANSPORTATION
                 NETWORK COMPANY DRIVERS.
         1700. CONTROLLING AUTHORITY.
   § 1691. DEFINITIONS. AS  USED  IN  THIS  ARTICLE:  1.  "TRANSPORTATION
 NETWORK COMPANY VEHICLE" OR "TNC VEHICLE" MEANS A VEHICLE THAT IS:
   (A)  USED  BY A TRANSPORTATION NETWORK COMPANY DRIVER TO PROVIDE A TNC
 PREARRANGED TRIP ORIGINATING WITHIN THE STATE OF NEW YORK; AND
   (B) OWNED, LEASED OR OTHERWISE AUTHORIZED FOR USE BY  THE  TRANSPORTA-
 TION NETWORK COMPANY DRIVER;
   (C) SUCH TERM SHALL NOT INCLUDE:
   (I) A TAXICAB, AS DEFINED IN SECTION ONE HUNDRED FORTY-EIGHT-A OF THIS
 CHAPTER AND SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
 YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW;
   (II)  A LIVERY VEHICLE, AS DEFINED IN SECTION ONE HUNDRED TWENTY-ONE-E
 OF THIS CHAPTER, OR AS OTHERWISE DEFINED IN LOCAL LAW;
   (III) A BLACK CAR, LIMOUSINE,  OR  LUXURY  LIMOUSINE,  AS  DEFINED  IN
 SECTION 19-502 OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW YORK, OR AS
 OTHERWISE DEFINED IN LOCAL LAW;
   (IV)  A FOR-HIRE VEHICLE, AS DEFINED IN SECTION 19-502 OF THE ADMINIS-
 TRATIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED  IN  LOCAL
 LAW;
   (V) A BUS, AS DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER;
   (VI)  ANY  MOTOR  VEHICLE WEIGHING MORE THAN SIX THOUSAND FIVE HUNDRED
 POUNDS UNLOADED;
   (VII) ANY MOTOR VEHICLE HAVING A SEATING CAPACITY OF MORE  THAN  SEVEN
 PASSENGERS; AND
   (VIII)  ANY  MOTOR VEHICLE SUBJECT TO SECTION THREE HUNDRED SEVENTY OF
 THIS CHAPTER.
   2. "DIGITAL NETWORK" MEANS ANY SYSTEM OR SERVICE OFFERED  OR  UTILIZED
 BY  A  TRANSPORTATION NETWORK COMPANY THAT ENABLES TNC PREARRANGED TRIPS
 WITH TRANSPORTATION NETWORK COMPANY DRIVERS.
   3. "TRANSPORTATION NETWORK COMPANY" OR "TNC" MEANS  A  PERSON,  CORPO-
 RATION,  PARTNERSHIP,  SOLE  PROPRIETORSHIP,  OR  OTHER  ENTITY  THAT IS
 LICENSED PURSUANT TO THIS ARTICLE AND IS OPERATING  IN  NEW  YORK  STATE
 EXCLUSIVELY  USING  A  DIGITAL NETWORK TO CONNECT TRANSPORTATION NETWORK
 COMPANY PASSENGERS TO TRANSPORTATION NETWORK COMPANY DRIVERS WHO PROVIDE
 TNC PREARRANGED TRIPS.
   4. "TRANSPORTATION NETWORK COMPANY DRIVER" OR "TNC  DRIVER"  MEANS  AN
 INDIVIDUAL WHO:

 S. 2009--C                         95                         A. 3009--C
 
   (A)  RECEIVES CONNECTIONS TO POTENTIAL PASSENGERS AND RELATED SERVICES
 FROM A TRANSPORTATION NETWORK COMPANY IN EXCHANGE FOR PAYMENT OF  A  FEE
 TO THE TRANSPORTATION NETWORK COMPANY; AND
   (B)  USES  A TNC VEHICLE TO OFFER OR PROVIDE A TNC PREARRANGED TRIP TO
 TRANSPORTATION NETWORK COMPANY  PASSENGERS  UPON  CONNECTION  THROUGH  A
 DIGITAL  NETWORK  CONTROLLED  BY  A  TRANSPORTATION  NETWORK  COMPANY IN
 EXCHANGE FOR COMPENSATION OR PAYMENT OF A FEE.
   5. "TRANSPORTATION NETWORK COMPANY PASSENGER" OR "PASSENGER"  MEANS  A
 PERSON  OR  PERSONS  WHO  USE A TRANSPORTATION NETWORK COMPANY'S DIGITAL
 NETWORK TO CONNECT WITH A  TRANSPORTATION  NETWORK  COMPANY  DRIVER  WHO
 PROVIDES  TNC  PREARRANGED  TRIPS  TO  THE  PASSENGER IN THE TNC VEHICLE
 BETWEEN POINTS CHOSEN BY THE PASSENGER.
   6. (A) "TNC PREARRANGED TRIP" OR "TRIP" MEANS THE PROVISION OF  TRANS-
 PORTATION  BY  A  TRANSPORTATION  NETWORK  COMPANY DRIVER TO A PASSENGER
 PROVIDED THROUGH THE USE OF A TNC'S DIGITAL NETWORK:
   (I) BEGINNING WHEN A TRANSPORTATION NETWORK COMPANY DRIVER  ACCEPTS  A
 PASSENGER'S REQUEST FOR A TRIP THROUGH A DIGITAL NETWORK CONTROLLED BY A
 TRANSPORTATION NETWORK COMPANY;
   (II) CONTINUING WHILE THE TRANSPORTATION NETWORK COMPANY DRIVER TRANS-
 PORTS THE REQUESTING PASSENGER IN A TNC VEHICLE; AND
   (III)  ENDING  WHEN THE LAST REQUESTING PASSENGER DEPARTS FROM THE TNC
 VEHICLE.
   (B) THE TERM "TNC PREARRANGED TRIP" DOES  NOT  INCLUDE  TRANSPORTATION
 PROVIDED THROUGH ANY OF THE FOLLOWING:
   (I) SHARED EXPENSE CARPOOL OR VANPOOL ARRANGEMENTS, INCLUDING THOSE AS
 DEFINED IN SECTION ONE HUNDRED FIFTY-EIGHT-B OF THIS CHAPTER; AND
   (II)  USE  OF  A  TAXICAB, LIVERY, LUXURY LIMOUSINE, OR OTHER FOR-HIRE
 VEHICLE, AS DEFINED IN THIS CHAPTER, SECTION 19-502 OF  THE  ADMINISTRA-
 TIVE CODE OF THE CITY OF NEW YORK, OR AS OTHERWISE DEFINED IN LOCAL LAW.
   7. "GROUP POLICY" MEANS AN INSURANCE POLICY ISSUED PURSUANT TO SECTION
 THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSURANCE LAW.
   §  1692.  GENERAL  PROVISIONS.   1. A TNC OR A TNC DRIVER SHALL NOT BE
 DEEMED A COMMON CARRIER, AS DEFINED IN SUBDIVISION SIX OF SECTION TWO OF
 THE TRANSPORTATION LAW; A CONTRACT CARRIER OF PASSENGERS BY MOTOR  VEHI-
 CLE, AS DEFINED IN SUBDIVISION NINE OF SECTION TWO OF THE TRANSPORTATION
 LAW;  OR A MOTOR CARRIER, AS DEFINED IN SUBDIVISION SEVENTEEN OF SECTION
 TWO OF THE TRANSPORTATION LAW. NEITHER A TNC NOR A TNC DRIVER  SHALL  BE
 DEEMED TO PROVIDE TAXICAB OR FOR-HIRE VEHICLE SERVICE WHILE OPERATING AS
 A  TNC  OR  TNC  DRIVER PURSUANT TO THIS ARTICLE. MOREOVER, A TNC DRIVER
 SHALL NOT BE REQUIRED TO REGISTER THE TNC VEHICLE SUCH TNC  DRIVER  USES
 FOR  TNC  PREARRANGED  TRIPS AS A COMMERCIAL OR FOR-HIRE VEHICLE, AS SET
 FORTH IN ARTICLE FOURTEEN OF THIS CHAPTER.
   2. (A) A TNC MAY NOT OPERATE IN THE STATE OF NEW  YORK  WITHOUT  FIRST
 HAVING  OBTAINED A LICENSE ISSUED BY THE DEPARTMENT IN A FORM AND MANNER
 AND WITH APPLICABLE FEES AS PROVIDED FOR BY REGULATIONS  PROMULGATED  BY
 THE COMMISSIONER.  AS A CONDITION OF OBTAINING A LICENSE, A TNC SHALL BE
 REQUIRED  TO  SUBMIT  TO  THE  DEPARTMENT PROOF OF A GROUP POLICY ISSUED
 PURSUANT TO SECTION THREE THOUSAND FOUR HUNDRED FIFTY-FIVE OF THE INSUR-
 ANCE LAW. FAILURE OF A TNC TO COMPLY WITH THE PROVISIONS OF THIS ARTICLE
 MAY RESULT IN APPLICABLE PENALTIES,  WHICH  MAY  INCLUDE,  BUT  ARE  NOT
 LIMITED  TO  FINES, SUSPENSION OR REVOCATION OF LICENSE OR A COMBINATION
 THEREOF AS OTHERWISE PROVIDED BY LAW. NO LICENSE SHALL BE  SUSPENDED  OR
 REVOKED  EXCEPT  UPON  NOTICE  TO THE TNC AND AFTER AN OPPORTUNITY TO BE
 HEARD.
   (B) FAILURE OF A TNC TO OBTAIN A LICENSE BEFORE OPERATION, PURSUANT TO
 THIS SUBDIVISION SHALL CONSTITUTE A MISDEMEANOR.

 S. 2009--C                         96                         A. 3009--C
 
   3. A TNC MUST MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN THE STATE OF
 NEW YORK.
   4. ON BEHALF OF A TNC DRIVER, A TNC MAY CHARGE A FARE FOR THE SERVICES
 RENDERED  TO  PASSENGERS;  PROVIDED  THAT, IF A FARE IS COLLECTED FROM A
 PASSENGER, THE TNC SHALL DISCLOSE TO SUCH PASSENGER THE FARE WITHIN  THE
 TNC'S  DIGITAL  NETWORK.   THE TNC SHALL ALSO PROVIDE PASSENGERS, BEFORE
 SUCH PASSENGERS ENTER A TNC VEHICLE, THE ACTUAL  FARE  OR  AN  ESTIMATED
 FARE  FOR  SUCH  TNC PREARRANGED TRIP THROUGH THE TNC'S DIGITAL NETWORK.
 THE TNC SHALL ALSO POST THE FAIR CALCULATION METHOD ON ITS WEBSITE.
   5. A TNC'S DIGITAL NETWORK SHALL DISPLAY A PICTURE OF THE TNC  DRIVER,
 AND  PROVIDE  THE MAKE, MODEL, COLOR AND LICENSE PLATE NUMBER OF THE TNC
 VEHICLE UTILIZED FOR PROVIDING  THE  TNC  PREARRANGED  TRIP  BEFORE  THE
 PASSENGER ENTERS THE TNC VEHICLE.
   6.  WITHIN  A  REASONABLE PERIOD OF TIME FOLLOWING THE COMPLETION OF A
 TRIP, A TNC SHALL TRANSMIT AN ELECTRONIC RECEIPT  TO  THE  PASSENGER  ON
 BEHALF OF THE TNC DRIVER THAT LISTS:
   (A) THE ORIGIN AND DESTINATION OF THE TRIP;
   (B) THE TOTAL TIME AND DISTANCE OF THE TRIP;
   (C) AN ITEMIZATION OF THE TOTAL FARE PAID, IF ANY;
   (D)  A  SEPARATE  STATEMENT  OF  THE  APPLICABLE  ASSESSMENT  FEE  AND
 SURCHARGE; AND
   (E) THE TNC NAME AND OPERATING LICENSE NUMBER.
   7. A TNC DRIVER SHALL NOT SOLICIT OR ACCEPT STREET HAILS.
   8. A TNC SHALL ADOPT A POLICY PROHIBITING SOLICITATION  OR  ACCEPTANCE
 OF CASH PAYMENTS FOR THE FARES CHARGED TO PASSENGERS FOR TNC PREARRANGED
 TRIPS  AND  NOTIFY  TNC  DRIVERS OF SUCH POLICY.   TNC DRIVERS SHALL NOT
 SOLICIT OR ACCEPT CASH PAYMENTS FROM PASSENGERS.
   9. A TNC SHALL PREVENT A TNC DRIVER  FROM  ACCEPTING  TNC  PREARRANGED
 TRIPS WITHIN A CITY OF A POPULATION OF ONE MILLION OR MORE AND ANY COUN-
 TY OR CITY THAT HAS ENACTED A LOCAL LAW OR ORDINANCE PURSUANT TO SECTION
 ONE HUNDRED EIGHTY-TWO OF THE GENERAL MUNICIPAL LAW AND HAS NOT REPEALED
 SUCH  LOCAL  LAW  OR  ORDINANCE, EXCEPT WHERE THE ACCEPTANCE OF A PREAR-
 RANGED TRIP IS AUTHORIZED PURSUANT TO AN EXISTING RECIPROCITY AGREEMENT.
   10. NOTHING IN THIS ARTICLE SHALL APPLY TO CITIES WITH A POPULATION OF
 ONE MILLION OR MORE.
   § 1693.  FINANCIAL RESPONSIBILITY OF TRANSPORTATION NETWORK COMPANIES.
 1. A TNC DRIVER, OR TNC ON THE TNC DRIVER'S BEHALF THROUGH A GROUP POLI-
 CY, SHALL MAINTAIN INSURANCE THAT RECOGNIZES THAT THE DRIVER  IS  A  TNC
 DRIVER AND PROVIDES FINANCIAL RESPONSIBILITY COVERAGE:
   (A) WHILE THE TNC DRIVER IS LOGGED ONTO THE TNC'S DIGITAL NETWORK; AND
   (B) WHILE THE TNC DRIVER IS ENGAGED IN A TNC PREARRANGED TRIP.
   2.  (A)  THE  FOLLOWING  AUTOMOBILE FINANCIAL RESPONSIBILITY INSURANCE
 REQUIREMENTS SHALL APPLY WHILE A TNC DRIVER IS  LOGGED  ONTO  THE  TNC'S
 DIGITAL  NETWORK BUT IS NOT ENGAGED IN A TNC PREARRANGED TRIP: INSURANCE
 AGAINST LOSS FROM THE LIABILITY IMPOSED BY LAW  FOR  DAMAGES,  INCLUDING
 DAMAGES  FOR  CARE  AND LOSS OF SERVICES, BECAUSE OF BODILY INJURY TO OR
 DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION  OF  PROPERTY  ARISING
 OUT  OF THE OWNERSHIP, MAINTENANCE, USE OR OPERATION OF A PERSONAL VEHI-
 CLE OR VEHICLES WITHIN THIS STATE, OR ELSEWHERE IN THE UNITED STATES  IN
 NORTH  AMERICA  OR CANADA, SUBJECT TO A LIMIT, EXCLUSIVE OF INTEREST AND
 COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE, OF  AT  LEAST  SEVENTY-FIVE
 THOUSAND  DOLLARS  BECAUSE OF BODILY INJURY TO OR DEATH OF ONE PERSON IN
 ANY ONE ACCIDENT AND, SUBJECT TO SAID LIMIT FOR ONE PERSON, TO  A  LIMIT
 OF  AT LEAST ONE HUNDRED FIFTY THOUSAND DOLLARS BECAUSE OF BODILY INJURY
 TO OR DEATH OF TWO OR MORE PERSONS IN ANY ONE ACCIDENT, AND TO  A  LIMIT
 OF  AT  LEAST  TWENTY-FIVE  THOUSAND  DOLLARS  BECAUSE  OF  INJURY TO OR

 S. 2009--C                         97                         A. 3009--C
 
 DESTRUCTION OF PROPERTY OF OTHERS IN ANY ONE ACCIDENT, PROVIDED HOWEVER,
 THAT SUCH POLICY NEED NOT BE FOR A PERIOD COTERMINOUS WITH THE REGISTRA-
 TION PERIOD OF THE PERSONAL VEHICLE INSURED, AND COVERAGE  IN  SATISFAC-
 TION  OF  THE FINANCIAL RESPONSIBILITY REQUIREMENTS SET FORTH IN SECTION
 THREE THOUSAND FOUR HUNDRED TWENTY OF THE INSURANCE LAW, ARTICLE  FIFTY-
 ONE  OF  THE  INSURANCE  LAW, AND SUCH OTHER REQUIREMENTS OR REGULATIONS
 THAT MAY APPLY FOR THE PURPOSES OF SATISFYING THE FINANCIAL RESPONSIBIL-
 ITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERATION OF A  MOTOR  VEHI-
 CLE.
   (B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY
 BE SATISFIED BY ANY OF THE FOLLOWING:
   (I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR
   (II)  INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE TNC;
 OR
   (III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH.
   3. (A) THE FOLLOWING  AUTOMOBILE  FINANCIAL  RESPONSIBILITY  INSURANCE
 REQUIREMENTS  SHALL  APPLY WHILE A TNC DRIVER IS ENGAGED IN A TNC PREAR-
 RANGED TRIP: INSURANCE AGAINST LOSS FROM THE LIABILITY  IMPOSED  BY  LAW
 FOR DAMAGES, INCLUDING DAMAGES FOR CARE AND LOSS OF SERVICES, BECAUSE OF
 BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF
 PROPERTY ARISING OUT OF THE OWNERSHIP, MAINTENANCE, USE, OR OPERATION OF
 A  SPECIFIC PERSONAL VEHICLE OR VEHICLES WITHIN THIS STATE, OR ELSEWHERE
 IN THE UNITED STATES IN NORTH AMERICA OR CANADA,  SUBJECT  TO  A  LIMIT,
 EXCLUSIVE  OF  INTEREST AND COSTS, WITH RESPECT TO EACH SUCH OCCURRENCE,
 OF AT LEAST ONE MILLION TWO HUNDRED FIFTY THOUSAND  DOLLARS  BECAUSE  OF
 BODILY INJURY TO OR DEATH OF ANY PERSON, AND INJURY TO OR DESTRUCTION OF
 PROPERTY  PROVIDED  HOWEVER,  THAT  SUCH POLICY NEED NOT BE FOR A PERIOD
 COTERMINOUS  WITH  THE  REGISTRATION  PERIOD  OF  THE  PERSONAL  VEHICLE
 INSURED,  AND  COVERAGE  IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY
 REQUIREMENTS SET FORTH IN SECTION THREE THOUSAND FOUR HUNDRED TWENTY  OF
 THE  INSURANCE  LAW,  ARTICLE  FIFTY-ONE  OF THE INSURANCE LAW; COVERAGE
 PROVIDED IN ACCORDANCE WITH SUBSECTION (F)  OF  SECTION  THREE  THOUSAND
 FOUR  HUNDRED  TWENTY  OF  THE  INSURANCE  LAW,  PROVIDING SUPPLEMENTARY
 UNINSURED/UNDERINSURED MOTORIST INSURANCE  FOR  BODILY  INJURY,  IN  THE
 AMOUNT  OF  ONE  MILLION  TWO  HUNDRED FIFTY THOUSAND DOLLARS BECAUSE OF
 BODILY INJURY TO OR DEATH OF ANY PERSON IN ANY ONE  ACCIDENT;  AND  SUCH
 OTHER  REQUIREMENTS  OR  REGULATIONS  THAT MAY APPLY FOR THE PURPOSES OF
 SATISFYING THE FINANCIAL RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE
 USE OR OPERATION OF A MOTOR VEHICLE.
   (B) THE COVERAGE REQUIREMENTS OF PARAGRAPH (A) OF THIS SUBDIVISION MAY
 BE SATISFIED BY ANY OF THE FOLLOWING:
   (I) INSURANCE MAINTAINED BY THE TNC DRIVER; OR
   (II) INSURANCE PROVIDED THROUGH A GROUP POLICY MAINTAINED BY THE  TNC;
 OR
   (III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II) OF THIS PARAGRAPH.
   4.  A TNC SHALL, UPON ENTERING INTO A CONTRACTUAL AGREEMENT WITH A TNC
 DRIVER, PROVIDE NOTICE TO THE TNC DRIVER THAT HE OR SHE MAY  NEED  ADDI-
 TIONAL INSURANCE COVERAGE INCLUDING MOTOR VEHICLE PHYSICAL DAMAGE COVER-
 AGE  AS DESCRIBED IN PARAGRAPH NINETEEN OF SUBSECTION (A) OF SECTION ONE
 THOUSAND ONE HUNDRED THIRTEEN OF THE INSURANCE LAW IF  THE  TNC  VEHICLE
 BEING  USED BY THE TNC DRIVER IS SUBJECT TO A LEASE OR LOAN. A TNC SHALL
 ALSO POST THIS NOTICE ON ITS WEBSITE IN A PROMINENT PLACE,  AND  PROVIDE
 CONTACT INFORMATION FOR THE DEPARTMENT OF FINANCIAL SERVICES.
   5.  IF  INSURANCE  MAINTAINED BY A TNC DRIVER PURSUANT TO SUBDIVISIONS
 TWO AND THREE OF THIS  SECTION  HAS  LAPSED  OR  DOES  NOT  PROVIDE  THE
 REQUIRED  COVERAGE,  THEN  THE  GROUP  POLICY  MAINTAINED BY A TNC SHALL

 S. 2009--C                         98                         A. 3009--C
 
 PROVIDE THE COVERAGE REQUIRED BY THIS SECTION BEGINNING WITH  THE  FIRST
 DOLLAR OF A CLAIM AND HAVE THE DUTY TO DEFEND SUCH CLAIM.
   6.  COVERAGE  UNDER  A GROUP POLICY MAINTAINED BY THE TNC SHALL NOT BE
 DEPENDENT ON THE DENIAL OF A CLAIM BY THE INSURER THAT ISSUED THE INSUR-
 ANCE POLICY USED TO REGISTER THE TNC VEHICLE, NOR SHALL THAT INSURER  BE
 REQUIRED TO FIRST DENY A CLAIM.
   7.  (A)  EXCEPT  AS  PROVIDED  IN PARAGRAPH (B) OF THIS SUBDIVISION, A
 GROUP POLICY MAINTAINED BY A TNC PURSUANT TO SUBPARAGRAPH (II) OF  PARA-
 GRAPH  (B)  OF SUBDIVISIONS TWO OR THREE OF THIS SECTION SHALL BE PLACED
 WITH AN INSURER AUTHORIZED TO WRITE INSURANCE IN THIS STATE.
   (B) IF A TNC IS UNABLE TO PURCHASE A GROUP POLICY PURSUANT TO SUBPARA-
 GRAPH (II) OF PARAGRAPH (B) OF SUBDIVISIONS TWO OR THREE OF THIS SECTION
 BECAUSE SUCH INSURANCE IS UNAVAILABLE FROM AUTHORIZED INSURERS  THE  TNC
 MAY  ACQUIRE SUCH GROUP INSURANCE WITH AN EXCESS LINE BROKER PURSUANT TO
 SECTION TWO THOUSAND ONE HUNDRED EIGHTEEN OF THE INSURANCE LAW.
   (C) THE OBLIGATION TO DETERMINE WHETHER THE INSURANCE REQUIRED BY THIS
 SECTION IS UNAVAILABLE FROM INSURERS AUTHORIZED TO  WRITE  INSURANCE  IN
 THIS  STATE  SHALL  BE  MADE  PRIOR TO THE INITIAL PLACEMENT AND AT EACH
 RENEWAL OF A POLICY.
   8.  A TNC DRIVER WHO, WHILE OPERATING A TNC VEHICLE WAS LOGGED  ON  TO
 THE  TNC'S  DIGITAL NETWORK BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR
 WAS ENGAGED IN A TNC PREARRANGED TRIP, AND HAS IN EFFECT  THE  INSURANCE
 REQUIRED  PURSUANT  TO  THIS  ARTICLE,  SHALL  NOT  BE  DEEMED  TO BE IN
 VIOLATION OF ARTICLE SIX OF THIS CHAPTER DURING SUCH TIME THAT HE OR SHE
 WAS LOGGED ON TO THE TNC'S DIGITAL NETWORK BUT  NOT  ENGAGED  IN  A  TNC
 PREARRANGED TRIP OR WAS ENGAGED IN A TNC PREARRANGED TRIP.
   9.  A TNC DRIVER SHALL CARRY PROOF OF COVERAGE SATISFYING SUBDIVISIONS
 TWO AND THREE OF THIS SECTION WITH HIM OR HER AT ALL TIMES DURING HIS OR
 HER USE OR OPERATION OF A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL
 NETWORK. SUCH PROOF OF COVERAGE SHALL BE IN SUCH FORM AS THE COMMISSION-
 ER SHALL PRESCRIBE, WHICH MAY BE IN THE FORM OF AN INSURANCE IDENTIFICA-
 TION CARD AS DEFINED IN SECTION THREE HUNDRED ELEVEN  OF  THIS  CHAPTER.
 ANY  INSURANCE  IDENTIFICATION CARD ISSUED PURSUANT TO THE PROVISIONS OF
 THIS ARTICLE SHALL BE IN ADDITION TO THE INSURANCE  IDENTIFICATION  CARD
 REQUIRED  PURSUANT TO ARTICLE SIX OF THIS CHAPTER, AND NOTHING CONTAINED
 IN THIS ARTICLE SHALL BE DEEMED TO SUPERSEDE THE  REQUIREMENTS  OF  SUCH
 ARTICLE SIX. WHENEVER THE PRODUCTION OF AN INSURANCE IDENTIFICATION CARD
 IS  REQUIRED  BY LAW, A TNC DRIVER SHALL (A) PRODUCE THE INSURANCE IDEN-
 TIFICATION CARD ISSUED PURSUANT TO ARTICLE SIX OF THIS CHAPTER AND,  (B)
 IF  SUCH  DRIVER  (I)  WAS LOGGED ONTO THE TNC'S DIGITAL NETWORK BUT NOT
 ENGAGED IN A TNC PREARRANGED TRIP OR (II) WAS ENGAGED IN  A  TNC  PREAR-
 RANGED TRIP, SUCH DRIVER SHALL ALSO PRODUCE THE INSURANCE IDENTIFICATION
 CARD REQUIRED PURSUANT TO THIS ARTICLE.
   10.  THE  SUPERINTENDENT  OF FINANCIAL SERVICES IS AUTHORIZED TO ISSUE
 SUCH RULES AND REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION.
   11. THE SUPERINTENDENT OF  FINANCIAL  SERVICES  MAY  PROMULGATE  REGU-
 LATIONS  TO  ADDRESS  INSURANCE  COVERAGE UNDER THIS SECTION AND SECTION
 SIXTEEN HUNDRED NINETY-FIVE OF THIS  ARTICLE  WHEN  A  TNC  DRIVER  USES
 MULTIPLE DIGITAL NETWORKS SIMULTANEOUSLY.
   12.  NOTHING  IN  THIS  SECTION  SHALL IMPOSE FINANCIAL RESPONSIBILITY
 REQUIREMENTS UPON ANY ENTITIES OPERATING AS VEHICLES FOR HIRE IN A  CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   13.  AN  INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A
 POLICY ISSUED PURSUANT TO THIS SECTION. NOTHING IN THIS  SECTION  SUPER-
 CEDES  THE  MANDATORY ARBITRATION REQUIREMENTS CONTAINED IN SECTION FIVE
 THOUSAND ONE HUNDRED FIVE OF THE INSURANCE LAW.

 S. 2009--C                         99                         A. 3009--C
 
   § 1694. DISCLOSURES. A TNC SHALL DISCLOSE IN WRITING  TO  TNC  DRIVERS
 THE  FOLLOWING  BEFORE  THEY  ARE  ALLOWED TO ACCEPT A REQUEST FOR A TNC
 PREARRANGED TRIP ON THE TNC'S DIGITAL NETWORK:
   1.  THE  INSURANCE  COVERAGE,  INCLUDING THE TYPES OF COVERAGE AND THE
 LIMITS FOR EACH COVERAGE, THAT THE TNC PROVIDES  WHILE  THE  TNC  DRIVER
 USES A TNC VEHICLE IN CONNECTION WITH A TNC'S DIGITAL NETWORK;
   2.  THAT  THE  TNC  DRIVER'S OWN AUTOMOBILE INSURANCE POLICY MIGHT NOT
 PROVIDE ANY COVERAGE WHILE THE TNC DRIVER IS  LOGGED  ON  TO  THE  TNC'S
 DIGITAL  NETWORK  OR  IS ENGAGED IN A TNC PREARRANGED TRIP, DEPENDING ON
 ITS TERMS; AND
   3. THAT, IF A TNC VEHICLE HAS A LIEN AGAINST IT,  THEN  THE  CONTINUED
 USE OF SUCH TNC VEHICLE BY ITS TNC DRIVER WITHOUT PHYSICAL DAMAGE COVER-
 AGE MAY VIOLATE THE TERMS OF THE CONTRACT WITH THE LIENHOLDER.
   §  1695.  INSURANCE PROVISIONS. 1.   INSURERS THAT WRITE MOTOR VEHICLE
 INSURANCE IN THIS STATE MAY, IN THE INSURANCE POLICY,  EXCLUDE  ANY  AND
 ALL COVERAGE AFFORDED UNDER THE POLICY ISSUED TO AN OWNER OR OPERATOR OF
 A  TNC  VEHICLE FOR ANY LOSS OR INJURY THAT OCCURS WHILE A TNC DRIVER IS
 LOGGED ON TO A TNC'S DIGITAL NETWORK OR WHILE A DRIVER  PROVIDES  A  TNC
 PREARRANGED TRIP, INCLUDING:
   (A) LIABILITY COVERAGE FOR BODILY INJURY AND PROPERTY DAMAGE;
   (B)  COVERAGE  PROVIDED PURSUANT TO ARTICLE FIFTY-ONE OF THE INSURANCE
 LAW;
   (C) UNINSURED MOTORIST COVERAGE;
   (D) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORIST COVERAGE; AND
   (E) MOTOR VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED  IN  PARAGRAPH
 NINETEEN  OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN
 OF THE INSURANCE LAW.
   2. SUCH EXCLUSIONS SHALL APPLY NOTWITHSTANDING ANY  REQUIREMENT  UNDER
 THE  LAW  TO THE CONTRARY.   NOTHING IN THIS SECTION IMPLIES OR REQUIRES
 THAT AN OWNER'S POLICY OF LIABILITY INSURANCE  OR  OTHER  MOTOR  VEHICLE
 INSURANCE  POLICY  PROVIDE COVERAGE WHILE THE TNC DRIVER IS LOGGED ON TO
 THE TNC'S DIGITAL NETWORK, WHILE THE TNC DRIVER  IS  ENGAGED  IN  A  TNC
 PREARRANGED  TRIP  OR  WHILE THE TNC DRIVER OTHERWISE USES OR OPERATES A
 TNC VEHICLE TO TRANSPORT PASSENGERS FOR COMPENSATION.
   3. NOTHING SHALL BE DEEMED  TO  PRECLUDE  AN  INSURER  FROM  PROVIDING
 PRIMARY,  EXCESS, OR UMBRELLA COVERAGE FOR THE TNC DRIVER'S TNC VEHICLE,
 IF IT CHOSE TO DO SO BY CONTRACT OR ENDORSEMENT.
   4. MOTOR VEHICLE INSURERS THAT EXCLUDE THE COVERAGE DESCRIBED IN  THIS
 ARTICLE  SHALL  HAVE  NO DUTY TO DEFEND OR INDEMNIFY ANY CLAIM EXPRESSLY
 EXCLUDED THEREUNDER.  NOTHING IN THIS ARTICLE SHALL BE DEEMED TO INVALI-
 DATE OR LIMIT AN EXCLUSION CONTAINED IN A POLICY INCLUDING ANY POLICY IN
 USE OR APPROVED FOR USE IN THIS STATE PRIOR TO  THE  EFFECTIVE  DATE  OF
 THIS SECTION.
   5. A MOTOR VEHICLE INSURER THAT DEFENDS OR INDEMNIFIES A CLAIM AGAINST
 A TNC DRIVER THAT IS EXCLUDED UNDER THE TERMS OF ITS POLICY SHALL HAVE A
 RIGHT  OF CONTRIBUTION AGAINST OTHER INSURERS THAT PROVIDE MOTOR VEHICLE
 INSURANCE TO THE SAME DRIVER IN SATISFACTION OF  THE  COVERAGE  REQUIRE-
 MENTS OF THE PROVISIONS OF THIS ARTICLE.
   6. IN A CLAIMS COVERAGE INVESTIGATION, A TNC AND ANY INSURER PROVIDING
 COVERAGE UNDER THIS ARTICLE SHALL, WITHIN FIFTEEN DAYS AFTER A CLAIM HAS
 BEEN FILED, FACILITATE THE EXCHANGE OF RELEVANT INFORMATION WITH DIRECT-
 LY  INVOLVED  PARTIES  AND  ANY INSURER OF THE TNC DRIVER IF APPLICABLE,
 INCLUDING THE PRECISE TIMES THAT A TNC DRIVER LOGGED ON AND OFF  OF  THE
 TNC'S  DIGITAL  NETWORK  IN THE TWELVE HOUR PERIOD IMMEDIATELY PRECEDING
 AND IN THE TWELVE HOUR PERIOD IMMEDIATELY  FOLLOWING  THE  ACCIDENT  AND
 DISCLOSE  TO ONE ANOTHER A CLEAR DESCRIPTION OF THE COVERAGE, EXCLUSIONS

 S. 2009--C                         100                        A. 3009--C
 
 AND LIMITS PROVIDED UNDER ANY MOTOR VEHICLE INSURANCE  MAINTAINED  UNDER
 THIS ARTICLE.
   7.  THE SUPERINTENDENT OF FINANCIAL SERVICES MAY PROMULGATE SUCH RULES
 AND REGULATIONS THAT THE SUPERINTENDENT DEEMS  NECESSARY  TO  FACILITATE
 THE  SHARING OF INFORMATION BETWEEN INSURERS, WHEN A MOTOR VEHICLE ACCI-
 DENT OCCURS AND AT LEAST ONE OF  THE  INSURERS  IS  PROVIDING  FINANCIAL
 RESPONSIBILITY COVERAGE TO A TNC VEHICLE PURSUANT TO THIS ARTICLE.
   8. THE COMMISSIONER SHALL PROVIDE RELEVANT INSURANCE COVERAGE INFORMA-
 TION REQUIRED BY THIS ARTICLE TO THE FOLLOWING PERSONS UPON REQUEST:
   (A)  A  PERSON  TO WHOM AN ACCIDENT REPORT PERTAINS OR WHO IS NAMED IN
 SUCH REPORT, OR HIS OR HER AUTHORIZED REPRESENTATIVE; AND
   (B) ANY OTHER PERSON OR HIS OR HER AUTHORIZED REPRESENTATIVE  WHO  HAS
 DEMONSTRATED TO THE SATISFACTION OF THE COMMISSIONER THAT SUCH PERSON IS
 OR MAY BE A PARTY TO A CIVIL ACTION ARISING OUT OF THE CONDUCT DESCRIBED
 IN SUCH ACCIDENT REPORT.
   § 1696. DRIVER AND VEHICLE REQUIREMENTS. 1. (A) AT ALL TIMES, AN INDI-
 VIDUAL ACTING AS A TNC DRIVER SHALL BE PERMITTED BY THE TNC AS FOLLOWS:
   (I) THE INDIVIDUAL SHALL SUBMIT AN APPLICATION TO THE TNC, WHICH SHALL
 INCLUDE INFORMATION REGARDING HIS OR HER ADDRESS, AGE, DRIVER'S LICENSE,
 MOTOR  VEHICLE  REGISTRATION,  AUTOMOBILE LIABILITY INSURANCE, AND OTHER
 INFORMATION REQUIRED BY THE TNC;
   (II) THE TNC SHALL CONDUCT, OR HAVE A THIRD PARTY CONDUCT, A  CRIMINAL
 BACKGROUND  CHECK  FOR EACH APPLICANT IN ACCORDANCE WITH SECTION SIXTEEN
 HUNDRED NINETY-NINE OF THIS ARTICLE AND THAT SHALL  REVIEW  WHETHER  THE
 APPLICANT:
   (A)  IS LISTED ON THE NEW YORK STATE SEX OFFENDER REGISTRY PURSUANT TO
 ARTICLE SIX-C OF THE CORRECTION LAW; AND
   (B) IS A MATCH IN THE UNITED STATES DEPARTMENT OF JUSTICE NATIONAL SEX
 OFFENDER PUBLIC WEBSITE;
   (III) THE TNC SHALL OBTAIN AND REVIEW, OR HAVE A  THIRD  PARTY  OBTAIN
 AND REVIEW, A DRIVING HISTORY RESEARCH REPORT FOR SUCH INDIVIDUAL.
   (B) THE TNC SHALL NOT PERMIT AN APPLICANT WHERE SUCH APPLICANT:
   (I)  FAILS  TO  MEET  ALL  QUALIFICATIONS  PURSUANT TO SECTION SIXTEEN
 HUNDRED NINETY-NINE OF THIS ARTICLE;
   (II) IS A MATCH IN THE UNITED STATES DEPARTMENT  OF  JUSTICE  NATIONAL
 SEX OFFENDER PUBLIC WEBSITE;
   (III) DOES NOT POSSESS A VALID NEW YORK DRIVER'S LICENSE;
   (IV)  DOES  NOT  POSSESS  PROOF OF REGISTRATION FOR THE MOTOR VEHICLES
 USED TO PROVIDE TNC PREARRANGED TRIPS;
   (V) DOES NOT POSSESS PROOF OF AUTOMOBILE LIABILITY INSURANCE  FOR  THE
 MOTOR  VEHICLES  USED TO PROVIDE TNC PREARRANGED TRIPS AS A TNC VEHICLE;
 OR
   (VI) IS NOT AT LEAST NINETEEN YEARS OF AGE.
   (C) UPON REVIEW OF ALL INFORMATION RECEIVED AND RETAINED  BY  THE  TNC
 AND  UPON  VERIFYING THAT THE INDIVIDUAL IS NOT DISQUALIFIED PURSUANT TO
 THIS SECTION FROM RECEIVING A TNC DRIVER PERMIT, A TNC MAY ISSUE  A  TNC
 DRIVER  PERMIT  TO  THE  APPLICANT. THE TNC SHALL REVIEW ALL INFORMATION
 RECEIVED RELATING TO SUCH APPLICANT AND HOLD SUCH  INFORMATION  FOR  SIX
 YEARS  ALONG  WITH  A  CERTIFICATION  THAT  SUCH  APPLICANT QUALIFIES TO
 RECEIVE A TNC DRIVER PERMIT.
   (D) (I) A TNC THAT ISSUES A  TNC  DRIVER'S  PERMIT  PURSUANT  TO  THIS
 SECTION  SHALL  PARTICIPATE  IN  THE NEW YORK LICENSE EVENT NOTIFICATION
 SERVICE (LENS) ESTABLISHED BY THE DEPARTMENT  TO  OBTAIN  TIMELY  NOTICE
 WHEN ANY OF THE FOLLOWING VIOLATIONS ARE ADDED TO A TNC DRIVER'S DRIVING
 RECORD:

 S. 2009--C                         101                        A. 3009--C
 
   (A)  UNLAWFULLY  FLEEING  A  POLICE  OFFICER  IN  A  MOTOR  VEHICLE IN
 VIOLATION OF SECTIONS 270.25, 270.30 OR 270.35 OF THE PENAL LAW;
   (B)  RECKLESS DRIVING IN VIOLATION OF SECTION ONE THOUSAND TWO HUNDRED
 TWELVE OF THIS CHAPTER;
   (C) OPERATING WHILE LICENSE OR PRIVILEGE IS SUSPENDED  OR  REVOKED  IN
 VIOLATION  OF  SECTION  FIVE  HUNDRED  ELEVEN OF THIS CHAPTER, EXCLUDING
 SUBDIVISION SEVEN OF SUCH SECTION;
   (D) OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL OR  DRUGS
 IN  VIOLATION  OF  SECTION  ONE  THOUSAND ONE HUNDRED NINETY-TWO OF THIS
 CHAPTER; AND
   (E) LEAVING THE SCENE OF AN INCIDENT WITHOUT REPORTING IN VIOLATION OF
 SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER.
   (II) THE DEPARTMENT MAY PROMULGATE REGULATIONS AUTHORIZING  ADDITIONAL
 LENS NOTIFICATIONS AS THE COMMISSIONER DEEMS NECESSARY TO PROTECT PUBLIC
 HEALTH AND SAFETY.
   (III)  UPON  SUCH NOTICE, A TNC MAY SUSPEND OR REVOKE ANY TNC DRIVER'S
 PERMIT AND REVOKE ACCESS TO THE TNC DIGITAL NETWORK, ONLY AFTER  CONSID-
 ERING  THE  NUMBER  OR  SEVERITY  OF ANY SUCH VIOLATIONS, INCLUDING SUCH
 FACTORS AS REQUIRED BY THIS ARTICLE FOR OBTAINING  A  TNC  PERMIT,  WHEN
 NECESSARY  TO  PROTECT  PUBLIC  HEALTH  AND  SAFETY. IF, HOWEVER, SUCH A
 NOTICE PROVIDES THAT AN APPLICANT HAS BEEN CONVICTED OF A  DISQUALIFYING
 CRIME  PURSUANT  TO  SECTION SIXTEEN HUNDRED NINETY-NINE OF THIS ARTICLE
 SUCH TNC DRIVER'S ACCESS TO THE TNC DIGITAL NETWORK AND SUCH  TNC  DRIV-
 ER'S  PERMIT  SHALL  BOTH IMMEDIATELY BE SUSPENDED OR REVOKED. UPON SUCH
 REVOCATION OR SUSPENSION PURSUANT TO THIS SECTION, THE TNC SHALL PROVIDE
 THE DRIVER WITH A COPY OF THE LENS RECORD USED  TO  MAKE  SUCH  DETERMI-
 NATION.
   (E)  NO  PERSON SHALL OPERATE A TNC VEHICLE OR OPERATE AS A TNC DRIVER
 UNLESS SUCH PERSON HOLDS A VALID TNC DRIVER PERMIT  ISSUED  PURSUANT  TO
 THIS  SECTION.  A VIOLATION OF THIS PARAGRAPH SHALL BE A TRAFFIC INFRAC-
 TION PUNISHABLE BY A FINE OF NOT LESS THAN SEVENTY-FIVE  NOR  MORE  THAN
 THREE  HUNDRED  DOLLARS,  OR  BY  IMPRISONMENT FOR NOT MORE THAN FIFTEEN
 DAYS, OR BY BOTH SUCH FINE AND IMPRISONMENT.
   (F) THE NAMES AND IDENTIFYING  INFORMATION  OF  TNC  DRIVERS  PROVIDED
 PURSUANT TO PARAGRAPH (D) OF THIS SUBDIVISION SHALL BE CONSIDERED INFOR-
 MATION,  WHICH IF DISCLOSED, WOULD CONSTITUTE AN UNWARRANTED INVASION OF
 PERSONAL PRIVACY UNDER THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFI-
 CERS LAW.
   2. A TNC SHALL IMPLEMENT A ZERO-TOLERANCE POLICY REGARDING A TNC DRIV-
 ER'S ACTIVITIES WHILE ACCESSING THE TNC'S DIGITAL NETWORK.  SUCH  POLICY
 SHALL  ADDRESS  THE  ISSUE OF OPERATING A VEHICLE UNDER THE INFLUENCE OF
 ALCOHOL OR DRUGS WHILE A TNC DRIVER IS PROVIDING TNC  PREARRANGED  TRIPS
 OR  IS  LOGGED  ONTO  THE TNC'S DIGITAL NETWORK BUT IS NOT PROVIDING TNC
 PREARRANGED TRIPS, AND THE TNC SHALL PROVIDE NOTICE OF  THIS  POLICY  ON
 ITS DIGITAL NETWORK, AS WELL AS PROCEDURES TO REPORT A COMPLAINT ABOUT A
 TNC  DRIVER  WITH WHOM A TNC PREARRANGED TRIP WAS COMMENCED AND WHOM THE
 PASSENGER REASONABLY SUSPECTS WAS OPERATING A VEHICLE UNDER  THE  INFLU-
 ENCE OF ALCOHOL OR DRUGS DURING THE COURSE OF THE TNC PREARRANGED TRIP.
   3.  (A)  A TNC SHALL ADOPT A POLICY OF NON-DISCRIMINATION ON THE BASIS
 OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE
 OR AFFILIATION, SEX, DISABILITY, AGE,  SEXUAL  ORIENTATION,  OR  GENETIC
 PREDISPOSITION  WITH  RESPECT TO PASSENGERS AND POTENTIAL PASSENGERS AND
 NOTIFY TNC DRIVERS OF SUCH POLICY.
   (B) TNC DRIVERS SHALL COMPLY WITH ALL APPLICABLE LAWS  REGARDING  NON-
 DISCRIMINATION  AGAINST  PASSENGERS OR POTENTIAL PASSENGERS ON THE BASIS
 OF DESTINATION, RACE, COLOR, NATIONAL ORIGIN, RELIGIOUS BELIEF, PRACTICE

 S. 2009--C                         102                        A. 3009--C
 
 OR AFFILIATION, SEX, DISABILITY, AGE,  SEXUAL  ORIENTATION,  OR  GENETIC
 PREDISPOSITION  WITH  RESPECT TO PASSENGERS AND POTENTIAL PASSENGERS AND
 NOTIFY TNC DRIVERS OF SUCH POLICY.
   (C)  TNC  DRIVERS  SHALL  COMPLY  WITH ALL APPLICABLE LAWS RELATING TO
 ACCOMMODATION OF SERVICE ANIMALS.
   (D) A TNC SHALL IMPLEMENT AND MAINTAIN A POLICY AND AN OVERSIGHT PROC-
 ESS OF PROVIDING ACCESSIBILITY TO  PASSENGERS  OR  POTENTIAL  PASSENGERS
 WITH  A  DISABILITY AND ACCOMMODATION OF SERVICE ANIMALS AS SUCH TERM IS
 DEFINED IN SECTION ONE HUNDRED TWENTY-THREE-B  OF  THE  AGRICULTURE  AND
 MARKETS  LAW  AND  SHALL TO THE EXTENT PRACTICABLE ADOPT FINDINGS ESTAB-
 LISHED BY THE NEW YORK STATE TNC ACCESSIBILITY TASK FORCE ADOPTED PURSU-
 ANT TO SECTION TWENTY-ONE OF THE CHAPTER OF THE  LAWS  OF  TWO  THOUSAND
 SEVENTEEN  THAT  ADDED THIS SECTION.   A TNC SHALL NOT IMPOSE ADDITIONAL
 CHARGES FOR PROVIDING SERVICES TO  PERSONS  WITH  PHYSICAL  DISABILITIES
 BECAUSE OF THOSE DISABILITIES.
   (E) THE NEW YORK STATE DIVISION OF HUMAN RIGHTS SHALL BE AUTHORIZED TO
 ACCEPT,  REVIEW  AND  INVESTIGATE  ANY POTENTIAL OR ACTUAL VIOLATIONS OF
 THIS SUBDIVISION IN A FORM AND MANNER CONSISTENT  WITH  AUTHORITY  UNDER
 ARTICLE  FIFTEEN  OF  THE EXECUTIVE LAW AND SHALL NOTIFY THE DEPARTMENT,
 UPON A FINDING OF A VIOLATION, FOR PURPOSES OF PERMIT SUSPENSION.
   4. A TNC SHALL REQUIRE THAT ANY OR ALL MOTOR VEHICLES THAT A TNC DRIV-
 ER WILL USE AS A TNC VEHICLE TO  PROVIDE  TNC  PREARRANGED  TRIPS  MEETS
 APPLICABLE  NEW YORK STATE VEHICLE SAFETY AND EMISSIONS REQUIREMENTS, AS
 SET FORTH IN SECTION THREE HUNDRED ONE OF THIS CHAPTER, OR  THE  VEHICLE
 SAFETY  AND  EMISSIONS REQUIREMENTS OF THE STATE IN WHICH THE VEHICLE IS
 REGISTERED.
   5. THE DEPARTMENT SHALL PROMULGATE REGULATIONS TO ENSURE THAT EACH TNC
 VEHICLE IS EASILY IDENTIFIED AS SUCH AND THAT THE TNC FOR WHICH THE  TNC
 DRIVER  IS  PROVIDING THE TNC SERVICE OR TNC PREARRANGED TRIP IS DISTIN-
 GUISHABLE. SUCH MARKING SHALL BE IN SUCH FORM  AS  IS  APPROVED  BY  THE
 COMMISSIONER, AND SHALL BE ATTACHED, AFFIXED OR DISPLAYED IN SUCH MANNER
 AS HE OR SHE MAY PRESCRIBE BY REGULATION.
   §  1697.  MAINTENANCE  OF  RECORDS. A TNC SHALL MAINTAIN THE FOLLOWING
 RECORDS:
   1. INDIVIDUAL TRIP RECORDS FOR AT LEAST SIX YEARS FROM THE  DATE  EACH
 TRIP WAS PROVIDED; AND
   2. INDIVIDUAL RECORDS OF TNC DRIVERS AT LEAST UNTIL THE SIX YEAR ANNI-
 VERSARY  OF  THE  DATE ON WHICH A TNC DRIVER'S RELATIONSHIP WITH THE TNC
 HAS ENDED.
   § 1698. AUDIT PROCEDURES;  CONFIDENTIALITY  OF  RECORDS.  1.  FOR  THE
 PURPOSE  OF  VERIFYING  THAT  A  TNC IS IN COMPLIANCE WITH THE LICENSING
 REQUIREMENTS OF THE DEPARTMENT, THE DEPARTMENT SHALL RESERVE  THE  RIGHT
 TO  AUDIT A SAMPLE OF RECORDS THAT THE TNC IS REQUIRED TO MAINTAIN, UPON
 REQUEST BY THE DEPARTMENT THAT SHALL BE FULFILLED IN NO FEWER  THAN  TEN
 BUSINESS  DAYS  BY  THE  TNC. THE SAMPLE SHALL BE CHOSEN RANDOMLY BY THE
 DEPARTMENT IN A MANNER AGREEABLE TO BOTH PARTIES. THE AUDIT  SHALL  TAKE
 PLACE  AT  A  MUTUALLY  AGREED  LOCATION  IN  NEW YORK STATE. ANY RECORD
 FURNISHED TO THE DEPARTMENT MAY EXCLUDE INFORMATION THAT WOULD  TEND  TO
 IDENTIFY SPECIFIC DRIVERS OR PASSENGERS.
   2.  THE  NAMES  AND  IDENTIFYING  INFORMATION  OF TNC DRIVERS THAT ARE
 RECEIVED PURSUANT TO THIS SECTION SHALL BE CONSIDERED INFORMATION WHICH,
 IF DISCLOSED, WOULD  CONSTITUTE  AN  UNWARRANTED  INVASION  OF  PERSONAL
 PRIVACY UNDER THE PROVISIONS OF ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
   3.  THE  DEPARTMENT  SHALL  ESTABLISH  REGULATIONS  FOR  THE FILING OF
 COMPLAINTS AGAINST ANY TNC DRIVER OR TNC PURSUANT TO THIS SECTION.

 S. 2009--C                         103                        A. 3009--C
 
   § 1699. CRIMINAL HISTORY BACKGROUND CHECK  OF  TRANSPORTATION  NETWORK
 COMPANY  DRIVERS. 1. A TNC SHALL CONDUCT, OR HAVE A THIRD PARTY CONDUCT,
 A CRIMINAL HISTORY BACKGROUND CHECK USING A LAWFUL  METHOD  APPROVED  BY
 THE  DEPARTMENT  PURSUANT  TO  PARAGRAPH  (A) OF SUBDIVISION TWO OF THIS
 SECTION FOR PERSONS APPLYING TO DRIVE FOR SUCH COMPANY.
   2.  (A) THE METHOD USED TO CONDUCT A CRIMINAL HISTORY BACKGROUND CHECK
 PURSUANT TO SUBDIVISION ONE OF THIS  SECTION  SHALL  BE  ESTABLISHED  IN
 REGULATIONS  ADOPTED  BY THE DEPARTMENT WITHIN THIRTY DAYS OF THE EFFEC-
 TIVE DATE OF THIS SUBDIVISION. TO ENSURE SAFETY OF  THE  PASSENGERS  AND
 THE  PUBLIC  SUCH REGULATIONS SHALL ESTABLISH THE METHOD USED TO CONDUCT
 SUCH BACKGROUND CHECKS AND ANY PROCESSES  AND  OPERATIONS  NECESSARY  TO
 COMPLETE  SUCH  CHECKS.  THE  REVIEW OF CRIMINAL HISTORY INFORMATION AND
 DETERMINATIONS ABOUT WHETHER OR NOT AN APPLICANT IS ISSUED A TNC  DRIVER
 PERMIT SHALL BE CONTROLLED BY PARAGRAPHS (B), (C) AND (D) OF THIS SUBDI-
 VISION.
   (B)  AN APPLICANT SHALL BE DISQUALIFIED TO RECEIVE A TNC DRIVER PERMIT
 WHERE HE OR SHE:
   (I) STANDS CONVICTED IN THE LAST THREE YEARS OF:  UNLAWFUL  FLEEING  A
 POLICE  OFFICER  IN  A  MOTOR  VEHICLE  IN VIOLATION OF SECTIONS 270.35,
 270.30 OR 270.25 OF THE PENAL LAW,  RECKLESS  DRIVING  IN  VIOLATION  OF
 SECTION  TWELVE  HUNDRED TWELVE OF THIS CHAPTER, OPERATING WHILE LICENSE
 OR PRIVILEGE IS SUSPENDED  OR  REVOKED  IN  VIOLATION  OF  SECTION  FIVE
 HUNDRED  ELEVEN  OF  THIS  CHAPTER,  EXCLUDING SUBDIVISION SEVEN OF SUCH
 SECTION, A MISDEMEANOR OFFENSE OF OPERATING A MOTOR VEHICLE WHILE  UNDER
 THE INFLUENCE OF ALCOHOL OR DRUGS IN VIOLATION OF SECTION ELEVEN HUNDRED
 NINETY-TWO  OF  THIS  CHAPTER,  OR  LEAVING  THE SCENE OF AN ACCIDENT IN
 VIOLATION OF SUBDIVISION TWO OF SECTION SIX HUNDRED OF THIS CHAPTER.  IN
 CALCULATING THE THREE YEAR PERIOD UNDER THIS SUBPARAGRAPH, ANY PERIOD OF
 TIME  DURING  WHICH  THE PERSON WAS INCARCERATED AFTER THE COMMISSION OF
 SUCH OFFENSE SHALL BE EXCLUDED AND  SUCH  THREE  YEAR  PERIOD  SHALL  BE
 EXTENDED BY A PERIOD OR PERIODS EQUAL TO THE TIME SPENT INCARCERATED; OR
   (II)  STANDS  CONVICTED  IN  THE  LAST  SEVEN  YEARS OF: A SEX OFFENSE
 DEFINED IN SUBDIVISION TWO OF SECTION ONE HUNDRED SIXTY-EIGHT-A  OF  THE
 CORRECTION  LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED TWENTY-
 FIVE OF THE PENAL LAW, A VIOLENT FELONY OFFENSE DEFINED IN SECTION 70.02
 OF THE PENAL LAW, A CLASS A FELONY OFFENSE DEFINED IN THE PENAL  LAW,  A
 FELONY  OFFENSE  DEFINED  IN  SECTION  ELEVEN HUNDRED NINETY-TWO OF THIS
 CHAPTER, AN OFFENSE FOR WHICH REGISTRATION AS A SEX OFFENDER IS REQUIRED
 PURSUANT TO ARTICLE SIX-C OF THE CORRECTION LAW, OR ANY CONVICTION OF AN
 OFFENSE IN ANY OTHER JURISDICTION THAT HAS ALL THE ESSENTIAL ELEMENTS OF
 AN OFFENSE LISTED IN THIS SUBPARAGRAPH. IN CALCULATING  THE  SEVEN  YEAR
 PERIOD  UNDER  THIS  SUBPARAGRAPH,  ANY  PERIOD OF TIME DURING WHICH THE
 PERSON WAS INCARCERATED AFTER THE COMMISSION OF SUCH  OFFENSE  SHALL  BE
 EXCLUDED  AND  SUCH  SEVEN  YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR
 PERIODS EQUAL TO THE TIME SPENT INCARCERATED.
   (C) A CRIMINAL HISTORY RECORD THAT CONTAINS CRIMINAL CONVICTION INFOR-
 MATION THAT DOES NOT DISQUALIFY AN APPLICANT PURSUANT  TO  SUBPARAGRAPHS
 (I)  OR (II) OF PARAGRAPH (B) OF THIS SUBDIVISION, SHALL BE REVIEWED AND
 CONSIDERED ACCORDING TO THE PROVISIONS OF ARTICLE TWENTY-THREE-A OF  THE
 CORRECTION  LAW  AND  SUBDIVISIONS  FIFTEEN  AND  SIXTEEN OF SECTION TWO
 HUNDRED NINETY-SIX OF THE EXECUTIVE LAW IN DETERMINING  WHETHER  OR  NOT
 THE APPLICANT SHOULD BE ISSUED A TNC DRIVER'S PERMIT.
   (D)  UPON  RECEIPT OF CRIMINAL CONVICTION INFORMATION PURSUANT TO THIS
 SECTION FOR ANY APPLICANT, SUCH APPLICANT  SHALL  PROMPTLY  BE  PROVIDED
 WITH  A  COPY  OF  SUCH  INFORMATION  AS  WELL  AS  A  COPY  OF  ARTICLE
 TWENTY-THREE-A OF THE CORRECTION  LAW.  SUCH  APPLICANT  SHALL  ALSO  BE

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 INFORMED  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.
   (E)  THE  DEPARTMENT  SHALL  PROMULGATE REGULATIONS FOR THE PURPOSE OF
 IMPLEMENTING THE PROVISIONS OF THIS SUBDIVISION.
   3. A TNC SHALL UPDATE THE CRIMINAL  HISTORY  BACKGROUND  CHECK  YEARLY
 DURING  THE  PERIOD  IN  WHICH THE PERSON IS AUTHORIZED TO DRIVE FOR THE
 COMPANY, HOWEVER, THE COMMISSIONER MAY REQUIRE, PURSUANT TO  REGULATION,
 MORE FREQUENT CRIMINAL HISTORY BACKGROUND CHECKS.
   4.  TO  ENSURE  SAFETY OF THE PASSENGERS AND THE PUBLIC A TNC SHALL BE
 RESPONSIBLE FOR ALL FEES ASSOCIATED  WITH  THE  CRIMINAL  HISTORY  CHECK
 PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
   5.  ANY TNC FOUND TO HAVE VIOLATED ANY REQUIREMENTS ESTABLISHED PURSU-
 ANT TO THIS SECTION, SHALL ON THE FIRST INSTANCE, BE SUBJECT TO A  CIVIL
 PENALTY  OF  NOT  MORE  THAN  TEN  THOUSAND  DOLLARS. FOR ANY SUBSEQUENT
 INSTANCE WITHIN THE PERIOD OF TWO YEARS FROM ANY INITIAL VIOLATION, SUCH
 TNC SHALL BE SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN FIFTY  THOUSAND
 DOLLARS, OR THE SUSPENSION OR REVOCATION OF ITS TNC LICENSE OR BOTH.
   §  1700. CONTROLLING AUTHORITY. 1. NOTWITHSTANDING ANY OTHER PROVISION
 OF LAW, THE REGULATION OF TNCS AND TNC DRIVERS IS  GOVERNED  EXCLUSIVELY
 BY  THE  PROVISIONS OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN
 WHICH ADDED THIS SECTION AND ANY RULES PROMULGATED BY THE STATE  THROUGH
 ITS  AGENCIES  CONSISTENT  WITH  SUCH  CHAPTER. NO COUNTY, TOWN, CITY OR
 VILLAGE MAY ENACT A TAX OR ANY FEE OR OTHER SURCHARGE ON A  TNC,  A  TNC
 DRIVER,  OR  A  TNC  VEHICLE  USED BY A TNC DRIVER OR REQUIRE A LICENSE,
 PERMIT, OR ADDITIONAL INSURANCE COVERAGE OR  ANY  OTHER  LIMITATIONS  OR
 RESTRICTIONS,  EXCEPT  FOR  A PROHIBITION ON PICK-UP PURSUANT TO SECTION
 ONE HUNDRED EIGHTY-TWO OF THE GENERAL MUNICIPAL LAW, FOR A  TNC,  A  TNC
 DRIVER,  OR  A  TNC  VEHICLE  USED  BY  A  TNC  DRIVER,  WHERE SUCH FEE,
 SURCHARGE, UNAUTHORIZED TAX, LICENSE, PERMIT, INSURANCE COVERAGE,  LIMI-
 TATION  OR  RESTRICTION, RELATES TO FACILITATING OR PROVIDING TNC PREAR-
 RANGED TRIPS, OR SUBJECTS A TNC, A TNC DRIVER, OR A TNC VEHICLE USED  BY
 A TNC DRIVER TO OPERATIONAL, OR OTHER REQUIREMENTS.
   2. NOTHING IN THIS ARTICLE SHALL AUTHORIZE ANY TNC DRIVER TO PICK-UP A
 PASSENGER  FOR PURPOSES OF A TNC PREARRANGED TRIP IN A CITY WITH A POPU-
 LATION OF ONE MILLION OR MORE OR WHERE A COUNTY OR  CITY  HAS  OPTED  TO
 PROHIBIT  THE  SAME  PURSUANT  TO  AUTHORITY CONSISTENT WITH SECTION ONE
 HUNDRED EIGHTY-TWO OF  THE  GENERAL  MUNICIPAL  LAW,  EXCEPT  WHERE  THE
 ACCEPTANCE  OF  A PREARRANGED TRIP IS AUTHORIZED PURSUANT TO AN EXISTING
 RECIPROCITY AGREEMENT.
   3. NOTHING IN THIS ARTICLE SHALL: (A) LIMIT THE ABILITY OF  A  COUNTY,
 TOWN, CITY OR VILLAGE TO ADOPT OR AMEND GENERALLY APPLICABLE LIMITATIONS
 OR  RESTRICTIONS RELATING TO LOCAL TRAFFIC OR PARKING CONTROL AS AUTHOR-
 IZED BY STATE LAW; OR (B) PREEMPT ANY RECIPROCITY AGREEMENTS,  INCLUDING
 AGREEMENTS ENTERED INTO PURSUANT TO SECTION FOUR HUNDRED NINETY-EIGHT OF
 THIS  CHAPTER,  BETWEEN  A COUNTY, TOWN, CITY OR VILLAGE THAT RELATES TO
 SERVICES REGULATED BY SECTION ONE  HUNDRED  EIGHTY-ONE  OF  THE  GENERAL
 MUNICIPAL LAW.
   4.  NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO LIMIT THE ABILITY OF
 A MUNICIPALITY OR OTHER GOVERNING AUTHORITY THAT  OWNS  OR  OPERATES  AN
 AIRPORT  LOCATED  OUTSIDE  OF A CITY WITH A POPULATION OF ONE MILLION OR
 MORE FROM ADOPTING REGULATIONS AND  ENTERING  INTO  CONTRACTS  OR  OTHER
 AGREEMENTS  RELATING TO THE DUTIES AND RESPONSIBILITIES ON AIRPORT PROP-
 ERTY OF A TRANSPORTATION NETWORK COMPANY, WHICH MAY INCLUDE THE  IMPOSI-
 TION  AND  PAYMENT OF REASONABLE FEES, PROVIDED THAT ANY SUCH CONTRACTS,

 S. 2009--C                         105                        A. 3009--C
 
 AGREEMENTS, OR REGULATIONS SHALL NOT IMPOSE ANY LICENSE OR OTHER  OPERA-
 TIONAL  REQUIREMENT ON A TRANSPORTATION NETWORK COMPANY DRIVER OR TRANS-
 PORTATION NETWORK COMPANY VEHICLE THAT IS  INCONSISTENT  WITH  OR  ADDI-
 TIONAL TO THE REQUIREMENTS OF THIS ARTICLE.
   § 3. Section 370 of the vehicle and traffic law is amended by adding a
 new subdivision 8 to read as follows:
   8.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, AN INDIVIDUAL
 SHALL NOT BE DEEMED TO BE ENGAGED IN THE BUSINESS OF CARRYING OR  TRANS-
 PORTING PASSENGERS FOR HIRE IF THE INDIVIDUAL DOES SO SOLELY AS A TRANS-
 PORTATION NETWORK COMPANY DRIVER IN ACCORDANCE WITH ARTICLE FORTY-FOUR-B
 OF THIS CHAPTER.
   § 4. Section 600 of the vehicle and traffic law, as amended by chapter
 49 of the laws of 2005, is amended to read as follows:
   § 600. Leaving  scene  of  an  incident without reporting. 1. Property
 damage. a. Any person operating a motor vehicle who, knowing  or  having
 cause to know that damage has been caused to the real property or to the
 personal property, not including animals, of another, due to an incident
 involving  the motor vehicle operated by such person shall, before leav-
 ing the place where the  damage  occurred,  stop,  exhibit  his  or  her
 license  and  insurance  identification card for such vehicle, when such
 card is required pursuant to articles six and eight of this chapter, and
 give his or her name, residence, including street and number,  insurance
 carrier  and  insurance  identification  information  including  but not
 limited to the number and effective dates of said individual's insurance
 policy, and license number to the party sustaining  the  damage,  or  in
 case  the person sustaining the damage is not present at the place where
 the damage occurred then he or she shall report  the  same  as  soon  as
 physically  able to the nearest police station, or judicial officer.  IN
 ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I)  PRODUCE  THE
 PROOF OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF
 THIS  CHAPTER  IF  SUCH  PERSON  IS A TNC DRIVER OPERATING A TNC VEHICLE
 WHILE THE INCIDENT OCCURRED WHO WAS (A) LOGGED ON TO THE  TNC'S  DIGITAL
 NETWORK  BUT NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN
 A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME
 SUCH INCIDENT OCCURRED, WAS (A) LOGGED ON TO THE TNC'S  DIGITAL  NETWORK
 BUT  NOT  ENGAGED  IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN A TNC
 PREARRANGED TRIP.
   b. It shall be the duty of any member of a law enforcement agency  who
 is  at  the scene of the accident to request the said operator or opera-
 tors of the motor vehicles, when physically  capable  of  doing  so,  to
 exchange  the  information required hereinabove and such member of a law
 enforcement agency shall assist such operator  or  operators  in  making
 such exchange of information in a reasonable and harmonious manner.
   A violation of the provisions of paragraph a of this subdivision shall
 constitute  a  traffic  infraction  punishable  by  a  fine of up to two
 hundred fifty dollars or a sentence of imprisonment for  up  to  fifteen
 days or both such fine and imprisonment.
   2.  Personal  injury.    a.  Any person operating a motor vehicle who,
 knowing or having cause to know that personal injury has been caused  to
 another  person, due to an incident involving the motor vehicle operated
 by such person shall, before leaving the place where the  said  personal
 injury  occurred,  stop,  exhibit his or her license and insurance iden-
 tification card for such vehicle, when such card is required pursuant to
 articles six and eight of this chapter, and give his or her name,  resi-
 dence,  including street and street number, insurance carrier and insur-
 ance identification information including but not limited to the  number

 S. 2009--C                         106                        A. 3009--C
 
 and  effective  dates  of said individual's insurance policy and license
 number, to the injured party, if practical, and also to a  police  offi-
 cer,  or  in  the event that no police officer is in the vicinity of the
 place of said injury, then, he or she shall report said incident as soon
 as  physically  able  to the nearest police station or judicial officer.
 IN ADDITION TO THE FOREGOING, ANY SUCH PERSON SHALL  ALSO:  (I)  PRODUCE
 THE   PROOF   OF   INSURANCE   COVERAGE  REQUIRED  PURSUANT  TO  ARTICLE
 FORTY-FOUR-B OF THIS CHAPTER IF SUCH PERSON IS A TNC DRIVER OPERATING  A
 TNC  VEHICLE  AT  THE  TIME OF THE INCIDENT WHO WAS (A) LOGGED ON TO THE
 TNC'S DIGITAL NETWORK BUT NOT ENGAGED IN A TNC PREARRANGED TRIP  OR  (B)
 WAS  ENGAGED  IN A TNC PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR
 SHE, AT THE TIME SUCH INCIDENT OCCURRED, WAS (A) LOGGED ON TO THE  TNC'S
 DIGITAL  NETWORK  BUT  NOT  ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS
 ENGAGED IN A TNC PREARRANGED TRIP.
   b. It shall be the duty of any member of a law enforcement agency  who
 is  at  the scene of the accident to request the said operator or opera-
 tors of the motor vehicles, when physically  capable  of  doing  so,  to
 exchange  the  information required hereinabove and such member of a law
 enforcement agency shall assist such operator  or  operators  in  making
 such exchange of information in a reasonable and harmonious manner.
   c.  A  violation  of the provisions of paragraph a of this subdivision
 resulting solely from the failure of an operator to exhibit his  or  her
 license  and  insurance  identification card for the vehicle or exchange
 the information required in such paragraph shall constitute  a  class  B
 misdemeanor  punishable by a fine of not less than two hundred fifty nor
 more than five hundred  dollars  in  addition  to  any  other  penalties
 provided  by law. Any subsequent such violation shall constitute a class
 A misdemeanor punishable by a fine of not less  than  five  hundred  nor
 more  than  one  thousand  dollars  in  addition  to any other penalties
 provided by law. Any violation of the provisions of paragraph a of  this
 subdivision,  other  than for the mere failure of an operator to exhibit
 his or her license and insurance identification card for such vehicle or
 exchange the information required in such paragraph, shall constitute  a
 class  A misdemeanor, punishable by a fine of not less than five hundred
 dollars nor more than one thousand dollars  in  addition  to  any  other
 penalties  provided  by  law.  Any  such violation committed by a person
 after such person has previously been  convicted  of  such  a  violation
 shall constitute a class E felony, punishable by a fine of not less than
 one thousand nor more than two thousand five hundred dollars in addition
 to  any other penalties provided by law. Any violation of the provisions
 of paragraph a of this subdivision, other than for the mere  failure  of
 an  operator  to exhibit his or her license and insurance identification
 card for such vehicle or exchange the information required in such para-
 graph, where the personal injury involved (i) results in  serious  phys-
 ical injury, as defined in section 10.00 of the penal law, shall consti-
 tute  a  class  E  felony,  punishable  by  a  fine of not less than one
 thousand nor more than five thousand dollars in addition  to  any  other
 penalties  provided  by law, or (ii) results in death shall constitute a
 class D felony punishable by a fine of not less than  two  thousand  nor
 more  than  five  thousand  dollars  in  addition to any other penalties
 provided by law.
   3. FOR THE PURPOSES OF THIS ARTICLE, THE TERMS  "TNC",  "TNC  DRIVER",
 "TNC  VEHICLE",  "TNC PREARRANGED TRIP" AND "DIGITAL NETWORK" SHALL HAVE
 THE SAME MEANINGS AS SUCH TERMS ARE DEFINED IN ARTICLE  FORTY-FOUR-B  OF
 THIS CHAPTER.

 S. 2009--C                         107                        A. 3009--C
 
   § 5. Section 601 of the vehicle and traffic law, as amended by chapter
 672 of the laws of 2004, is amended to read as follows:
   §  601.  Leaving scene of injury to certain animals without reporting.
 Any person operating a motor vehicle which shall strike and  injure  any
 horse,  dog,  cat or animal classified as cattle shall stop and endeavor
 to locate the owner or custodian of such animal or a  police,  peace  or
 judicial  officer  of  the  vicinity,  and take any other reasonable and
 appropriate action so that the animal may have necessary attention,  and
 shall  also promptly report the matter to such owner, custodian or offi-
 cer (or if no one of such has been located, then to a police officer  of
 some  other  nearby community), exhibiting his or her license and insur-
 ance identification card for such vehicle, when such  card  is  required
 pursuant  to  articles  six and eight of this chapter, giving his or her
 name and residence, including street and street number, insurance carri-
 er and insurance identification information and license number. IN ADDI-
 TION TO THE FOREGOING, ANY SUCH PERSON SHALL ALSO: (I) PRODUCE THE PROOF
 OF INSURANCE COVERAGE REQUIRED PURSUANT TO ARTICLE FORTY-FOUR-B OF  THIS
 CHAPTER  IF  SUCH  PERSON IS A TNC DRIVER OPERATING A TNC VEHICLE AT THE
 TIME OF THE INCIDENT WHO WAS (A) LOGGED ON TO THE TNC'S DIGITAL  NETWORK
 BUT  NOT  ENGAGED  IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN A TNC
 PREARRANGED TRIP; AND (II) DISCLOSE WHETHER HE OR SHE, AT THE TIME  SUCH
 INCIDENT  OCCURRED,  WAS  (A) LOGGED ON TO THE TNC'S DIGITAL NETWORK BUT
 NOT ENGAGED IN A TNC PREARRANGED TRIP OR (B) WAS ENGAGED IN A TNC PREAR-
 RANGED TRIP. Violation of this section shall be punishable by a fine  of
 not  more  than one hundred dollars for a first offense and by a fine of
 not less than fifty nor more than one hundred fifty dollars for a second
 offense and each subsequent offense; provided, however where the  animal
 that  has been struck and injured is a guide dog, hearing dog or service
 dog, as such terms are defined in section  forty-seven-b  of  the  civil
 rights  law which is actually engaged in aiding or guiding a person with
 a disability, a violation of this section shall be [publishable] PUNISH-
 ABLE by a fine of not less than fifty nor more than  one  hundred  fifty
 dollars  for  a first offense and by a fine of not less than one hundred
 fifty dollars nor more than three hundred dollars for a  second  offense
 and each subsequent offense.
   §  6. The insurance law is amended by adding two new sections 3455 and
 3456 to read as follows:
   § 3455. TRANSPORTATION NETWORK COMPANY GROUP INSURANCE POLICIES.   (A)
 FOR PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL APPLY:
   (1)  "TRANSPORTATION  NETWORK  COMPANY" SHALL HAVE THE SAME MEANING AS
 SET FORTH IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (2) "CERTIFICATE" OR "CERTIFICATE  OF  INSURANCE"  MEANS  ANY  POLICY,
 CONTRACT  OR OTHER EVIDENCE OF INSURANCE, OR ENDORSEMENT THERETO, ISSUED
 TO A GROUP MEMBER UNDER A TRANSPORTATION NETWORK COMPANY GROUP POLICY.
   (3) "TRANSPORTATION NETWORK COMPANY GROUP POLICY"  OR  "GROUP  POLICY"
 MEANS  A  GROUP  POLICY,  INCLUDING  CERTIFICATES  ISSUED  TO  THE GROUP
 MEMBERS, WHERE THE GROUP POLICYHOLDER IS A TRANSPORTATION NETWORK COMPA-
 NY AND THE POLICY  PROVIDES  INSURANCE  TO  THE  TRANSPORTATION  NETWORK
 COMPANY AND TO GROUP MEMBERS:
   (A) IN ACCORDANCE WITH THE REQUIREMENTS OF ARTICLE FORTY-FOUR-B OF THE
 VEHICLE AND TRAFFIC LAW;
   (B) OF THE TYPE DESCRIBED IN PARAGRAPH THIRTEEN, FOURTEEN, OR NINETEEN
 OF  SUBSECTION  (A) OF SECTION ONE THOUSAND ONE HUNDRED THIRTEEN OF THIS
 CHAPTER; AND
   (C) IN SATISFACTION OF THE FINANCIAL RESPONSIBILITY  REQUIREMENTS  SET
 FORTH  IN  SECTION  THREE  THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE,

 S. 2009--C                         108                        A. 3009--C
 
 SUBDIVISION FOUR OF SECTION THREE HUNDRED  ELEVEN  OF  THE  VEHICLE  AND
 TRAFFIC  LAW, ARTICLE FIFTY-ONE OF THIS CHAPTER, AND SUCH OTHER REQUIRE-
 MENTS OR REGULATIONS THAT MAY APPLY FOR THE PURPOSES OF  SATISFYING  THE
 FINANCIAL  RESPONSIBILITY REQUIREMENTS WITH RESPECT TO THE USE OR OPERA-
 TION OF A MOTOR VEHICLE.
   (4) "GROUP MEMBER" MEANS A TRANSPORTATION NETWORK  COMPANY  DRIVER  AS
 DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (5) "GROUP POLICYHOLDER" MEANS A TRANSPORTATION NETWORK COMPANY.
   (6)  "TNC  VEHICLE" SHALL HAVE THE MEANING SET FORTH IN ARTICLE FORTY-
 FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (B) AN INSURER MAY ISSUE OR ISSUE FOR DELIVERY IN THIS STATE A  TRANS-
 PORTATION  NETWORK  COMPANY  GROUP  POLICY  TO  A TRANSPORTATION NETWORK
 COMPANY AS A GROUP POLICYHOLDER ONLY IN ACCORDANCE WITH  THE  PROVISIONS
 OF THIS SECTION.
   (C)(1)  A  TRANSPORTATION  NETWORK  COMPANY GROUP POLICY SHALL PROVIDE
 COVERAGE FOR A TNC VEHICLE IN ACCORDANCE WITH THE REQUIREMENTS OF  ARTI-
 CLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (2) A TRANSPORTATION NETWORK COMPANY GROUP POLICY MAY PROVIDE:
   (A) COVERAGE FOR LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED PURSU-
 ANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (B) SUPPLEMENTARY UNINSURED/UNDERINSURED MOTORISTS INSURANCE FOR BODI-
 LY  INJURY  PURSUANT TO PARAGRAPH TWO OF SUBSECTION (F) OF SECTION THREE
 THOUSAND FOUR HUNDRED TWENTY OF THIS ARTICLE;
   (C) SUPPLEMENTAL SPOUSAL LIABILITY INSURANCE  PURSUANT  TO  SUBSECTION
 (G) OF SECTION THREE THOUSAND FOUR HUNDRED TWENTY OF THIS CHAPTER; AND
   (D)  MOTOR  VEHICLE PHYSICAL DAMAGE COVERAGE AS DESCRIBED IN PARAGRAPH
 NINETEEN OF SUBSECTION (A) OF SECTION ONE THOUSAND ONE HUNDRED  THIRTEEN
 OF THIS CHAPTER.
   (3)  THE  COVERAGE  DESCRIBED  IN  PARAGRAPHS  ONE  AND  TWO  OF  THIS
 SUBSECTION MAY BE PROVIDED IN ONE GROUP  POLICY  OR  IN  SEPARATE  GROUP
 POLICIES.
   (4)  A  TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUDING CERTIF-
 ICATES, SHALL BE ISSUED BY  AUTHORIZED  INSURERS  OR  FROM  EXCESS  LINE
 BROKERS  PURSUANT  TO  SECTION  SIXTEEN  SIX HUNDRED NINETY-THREE OF THE
 VEHICLE AND TRAFFIC LAW.
   (5) A POLICYHOLDER ALSO MAY BE AN INSURED UNDER A GROUP POLICY.
   (D) THE PREMIUM FOR THE TRANSPORTATION NETWORK COMPANY  GROUP  POLICY,
 INCLUDING  CERTIFICATES  MAY  BE PAID BY THE GROUP POLICYHOLDER FROM THE
 FUNDS CONTRIBUTED:
   (1) WHOLLY BY THE GROUP POLICYHOLDER;
   (2) WHOLLY BY THE GROUP MEMBERS; OR
   (3) JOINTLY BY THE GROUP POLICYHOLDER AND THE GROUP MEMBERS.
   (E) (1) ANY POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT,  OR  RETRO-
 SPECTIVE PREMIUM REFUND IN RESPECT OF PREMIUMS PAID BY THE GROUP POLICY-
 HOLDER MAY:
   (A) BE APPLIED TO REDUCE THE PREMIUM CONTRIBUTION OF THE GROUP POLICY-
 HOLDER, BUT NOT IN EXCESS OF THE PROPORTION TO ITS CONTRIBUTION; OR
   (B) BE RETAINED BY THE GROUP POLICYHOLDER.
   (2)  ANY  POLICY DIVIDEND, RETROSPECTIVE PREMIUM CREDIT, OR RETROSPEC-
 TIVE  PREMIUM  REFUND  NOT  DISTRIBUTED  UNDER  PARAGRAPH  ONE  OF  THIS
 SUBSECTION SHALL BE:
   (A)  APPLIED  TO  REDUCE  FUTURE  PREMIUMS  AND,  ACCORDINGLY,  FUTURE
 CONTRIBUTIONS, OF EXISTING OR FUTURE GROUP MEMBERS, OR BOTH; OR
   (B) PAID OR REFUNDED TO THOSE GROUP MEMBERS INSURED ON  THE  DATE  THE
 PAYMENT  OR  REFUND IS MADE TO THE GROUP POLICYHOLDER, IF DISTRIBUTED BY

 S. 2009--C                         109                        A. 3009--C
 
 THE GROUP POLICYHOLDER, OR  ON  THE  DATE  OF  MAILING,  IF  DISTRIBUTED
 DIRECTLY BY THE INSURER, SUBJECT TO THE FOLLOWING REQUIREMENTS:
   (I) THE INSURER SHALL BE RESPONSIBLE FOR DETERMINING THE ALLOCATION OF
 THE PAYMENT OF REFUND TO THE GROUP MEMBERS;
   (II)  IF THE GROUP POLICYHOLDER DISTRIBUTES THE PAYMENT OR REFUND, THE
 INSURER SHALL BE RESPONSIBLE FOR AUDIT TO ASCERTAIN THAT THE PAYMENT  OR
 REFUND IS ACTUALLY MADE IN ACCORDANCE WITH THE ALLOCATION PROCEDURE; AND
   (III)  IF  THE GROUP POLICYHOLDER FAILS TO MAKE THE PAYMENT OR REFUND,
 THE INSURER SHALL MAKE THE PAYMENT OR REFUND DIRECTLY OR USE THE  METHOD
 PROVIDED IN SUBPARAGRAPH (A) OF THIS PARAGRAPH.
   (3)  NOTWITHSTANDING  PARAGRAPHS  ONE AND TWO OF THIS SUBSECTION, IF A
 DIVIDEND ACCRUES UPON TERMINATION OF  COVERAGE  UNDER  A  TRANSPORTATION
 NETWORK  COMPANY  GROUP  POLICY,  THE  PREMIUM FOR WHICH WAS PAID OUT OF
 FUNDS CONTRIBUTED BY GROUP MEMBERS SPECIFICALLY FOR  THE  COVERAGE,  THE
 DIVIDEND  SHALL  BE  PAID  OR  REFUNDED BY THE GROUP POLICYHOLDER TO THE
 GROUP MEMBERS INSURED ON THE DATE THE PAYMENT OR REFUND IS MADE  TO  THE
 GROUP  POLICYHOLDER,  NET  OF  REASONABLE EXPENSES INCURRED BY THE GROUP
 POLICYHOLDER IN PAYING OR REFUNDING THE DIVIDEND TO SUCH GROUP MEMBERS.
   (4) FOR THE PURPOSES OF THIS SUBSECTION, "DIVIDEND" MEANS A RETURN  BY
 THE  INSURER  OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY OF EXCESS
 PREMIUMS TO THE GROUP POLICYHOLDER IN LIGHT OF  FAVORABLE  LOSS  EXPERI-
 ENCE,  INCLUDING  RETROSPECTIVE PREMIUM CREDITS OR RETROSPECTIVE PREMIUM
 REFUNDS. THE TERM "DIVIDEND" DOES NOT  INCLUDE  REIMBURSEMENTS  OR  FEES
 RECEIVED  BY  A  GROUP  POLICYHOLDER IN CONNECTION WITH THE OPERATION OR
 ADMINISTRATION OF A TRANSPORTATION NETWORK COMPANY GROUP POLICY, INCLUD-
 ING ADMINISTRATIVE REIMBURSEMENTS, FEES FOR  SERVICES  PROVIDED  BY  THE
 GROUP POLICYHOLDER, OR TRANSACTIONAL SERVICE FEES.
   (F)  THE INSURER SHALL TREAT IN LIKE MANNER ALL ELIGIBLE GROUP MEMBERS
 OF THE SAME CLASS AND STATUS.
   (G) EACH POLICY WRITTEN PURSUANT TO THIS  SECTION  SHALL  PROVIDE  PER
 OCCURRENCE  LIMITS  OF  COVERAGE  FOR EACH GROUP MEMBER IN AN AMOUNT NOT
 LESS THAN THAT REQUIRED BY THIS ARTICLE, AND MAY  PROVIDE  COVERAGE  FOR
 LIMITS HIGHER THAN THE MINIMUM LIMITS REQUIRED UNDER THE LAW.
   (H)  (1) THE INSURER SHALL BE RESPONSIBLE FOR MAILING OR DELIVERY OF A
 CERTIFICATE OF INSURANCE TO EACH GROUP MEMBER INSURED UNDER  THE  TRANS-
 PORTATION  NETWORK  COMPANY  GROUP  POLICY,  PROVIDED, HOWEVER, THAT THE
 INSURER MAY DELEGATE THE  MAILING  OR  DELIVERY  TO  THE  TRANSPORTATION
 NETWORK  COMPANY.  THE INSURER SHALL ALSO BE RESPONSIBLE FOR THE MAILING
 OR DELIVERY TO EACH GROUP MEMBER OF AN AMENDED CERTIFICATE OF  INSURANCE
 OR ENDORSEMENT TO THE CERTIFICATE, WHENEVER THERE IS A CHANGE IN LIMITS;
 CHANGE  IN  TYPE  OF  COVERAGE;  ADDITION,  REDUCTION, OR ELIMINATION OF
 COVERAGE; OR ADDITION OF EXCLUSION,  UNDER  THE  TRANSPORTATION  NETWORK
 COMPANY GROUP POLICY OR CERTIFICATE.
   (2)  THE CERTIFICATE SHALL CONTAIN IN SUBSTANCE ALL MATERIAL TERMS AND
 CONDITIONS OF COVERAGE AFFORDED TO GROUP MEMBERS, UNLESS THE TRANSPORTA-
 TION NETWORK COMPANY GROUP POLICY IS INCORPORATED  BY  REFERENCE  AND  A
 COPY OF THE GROUP POLICY ACCOMPANIES THE CERTIFICATE.
   (3) IF ANY COVERAGE AFFORDED TO THE GROUP MEMBER IS EXCESS OF APPLICA-
 BLE  INSURANCE COVERAGE, THE CERTIFICATE SHALL CONTAIN A NOTICE ADVISING
 THE GROUP MEMBERS THAT, IF THE  MEMBER  HAS  OTHER  INSURANCE  COVERAGE,
 SPECIFIED COVERAGES UNDER THE TRANSPORTATION NETWORK COMPANY GROUP POLI-
 CY WILL BE EXCESS OVER THE OTHER INSURANCE.
   (I)  A  GROUP POLICYHOLDER SHALL COMPLY WITH THE PROVISIONS OF SECTION
 TWO THOUSAND ONE HUNDRED TWENTY-TWO OF THIS CHAPTER, IN THE SAME  MANNER
 AS  AN  AGENT OR BROKER, IN ANY ADVERTISEMENT, SIGN, PAMPHLET, CIRCULAR,

 S. 2009--C                         110                        A. 3009--C
 
 CARD, OR OTHER PUBLIC ANNOUNCEMENT REFERRING TO COVERAGE UNDER A  TRANS-
 PORTATION NETWORK COMPANY GROUP POLICY OR CERTIFICATE.
   (J) A TRANSPORTATION NETWORK COMPANY GROUP POLICY SHALL NOT BE SUBJECT
 TO  SECTION  THREE  THOUSAND  FOUR  HUNDRED TWENTY-FIVE OR SECTION THREE
 THOUSAND FOUR HUNDRED TWENTY-SIX OF  THIS  ARTICLE;  PROVIDED  THAT  THE
 FOLLOWING  REQUIREMENTS SHALL APPLY WITH REGARD TO TERMINATION OF COVER-
 AGE:
   (1)(A) AN INSURER MAY TERMINATE A GROUP POLICY OR CERTIFICATE ONLY  IF
 CANCELLATION IS BASED ON ONE OR MORE OF THE REASONS SET FORTH IN SUBPAR-
 AGRAPH (A) THROUGH (D) OR (F) THROUGH (H) OF PARAGRAPH ONE OF SUBSECTION
 (C)  OF  SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE;
 PROVIDED, HOWEVER, THAT AN ACT OR OMISSION BY A GROUP MEMBER THAT  WOULD
 CONSTITUTE THE BASIS FOR CANCELLATION OF AN INDIVIDUAL CERTIFICATE SHALL
 NOT CONSTITUTE THE BASIS FOR CANCELLATION OF THE GROUP POLICY.
   (B)  WHERE THE PREMIUM IS DERIVED WHOLLY FROM FUNDS CONTRIBUTED BY THE
 GROUP POLICYHOLDER, AN INSURER MAY CANCEL AN INDIVIDUAL CERTIFICATE ONLY
 IF CANCELLATION IS BASED ON ONE OR MORE OF  THE  REASONS  SET  FORTH  IN
 SUBPARAGRAPH  (B),  (C)  OR  (H)  OF  PARAGRAPH ONE OF SUBSECTION (C) OF
 SECTION THREE THOUSAND FOUR HUNDRED TWENTY-SIX OF THIS ARTICLE.
   (2) (A) AN INSURER'S CANCELLATION OF A  GROUP  POLICY,  INCLUDING  ALL
 CERTIFICATES,  SHALL  NOT  BECOME  EFFECTIVE UNTIL THIRTY DAYS AFTER THE
 INSURER MAILS OR DELIVERS WRITTEN NOTICE OF CANCELLATION  TO  THE  GROUP
 POLICYHOLDER AT THE MAILING ADDRESS SHOWN IN THE POLICY.
   (I) WHERE ALL OR PART OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED
 BY  THE  GROUP  MEMBER  SPECIFICALLY FOR THE COVERAGE, THE INSURER SHALL
 ALSO MAIL OR DELIVER WRITTEN NOTICE OF CANCELLATION OF THE GROUP  POLICY
 TO  THE GROUP MEMBER AT THE GROUP MEMBER'S MAILING ADDRESS. SUCH CANCEL-
 LATION SHALL NOT BECOME EFFECTIVE UNTIL THIRTY DAYS  AFTER  THE  INSURER
 MAILS OR DELIVERS THE WRITTEN NOTICE TO THE GROUP MEMBER.
   (II)  WHERE NONE OF THE PREMIUM IS DERIVED FROM FUNDS CONTRIBUTED BY A
 GROUP MEMBER SPECIFICALLY FOR THE  COVERAGE,  THE  GROUP  POLICY  HOLDER
 SHALL  MAIL  OR  DELIVER WRITTEN NOTICE TO THE GROUP MEMBER ADVISING THE
 GROUP MEMBER OF THE CANCELLATION OF THE GROUP POLICY AND  THE  EFFECTIVE
 DATE  OF CANCELLATION. THE GROUP POLICY HOLDER SHALL MAIL OR DELIVER THE
 WRITTEN NOTICE WITHIN NINETY DAYS AFTER RECEIVING NOTICE OF CANCELLATION
 FROM THE INSURER.
   (B) AN INSURER'S CANCELLATION OF AN INDIVIDUAL CERTIFICATE  SHALL  NOT
 BECOME  EFFECTIVE  UNTIL THIRTY DAYS AFTER THE INSURER MAILS OR DELIVERS
 WRITTEN NOTICE OF CANCELLATION TO THE GROUP MEMBER AT THE GROUP MEMBER'S
 MAILING ADDRESS AND TO THE GROUP POLICYHOLDER  AT  THE  MAILING  ADDRESS
 SHOWN IN THE GROUP POLICY.
   (3)  (A) A GROUP POLICYHOLDER MAY CANCEL A GROUP POLICY, INCLUDING ALL
 CERTIFICATES, OR ANY INDIVIDUAL CERTIFICATE, FOR ANY REASON UPON  THIRTY
 DAYS WRITTEN NOTICE TO THE INSURER AND EACH GROUP MEMBER; AND
   (B)  THE  GROUP  POLICYHOLDER  SHALL MAIL OR DELIVER WRITTEN NOTICE TO
 EACH AFFECTED GROUP MEMBER OF THE GROUP POLICYHOLDER'S  CANCELLATION  OF
 THE  GROUP POLICY OR CERTIFICATE AND THE EFFECTIVE DATE OF CANCELLATION.
 THE GROUP POLICYHOLDER SHALL MAIL OR DELIVER THE WRITTEN NOTICE  TO  THE
 GROUP  MEMBER'S MAILING ADDRESS AT LEAST THIRTY DAYS PRIOR TO THE EFFEC-
 TIVE DATE OF CANCELLATION.
   (4) (A) UNLESS A GROUP POLICY PROVIDES FOR A LONGER POLICY PERIOD, THE
 POLICY AND ALL CERTIFICATES SHALL BE ISSUED OR RENEWED  FOR  A  ONE-YEAR
 POLICY PERIOD.
   (B) THE GROUP POLICYHOLDER SHALL BE ENTITLED TO RENEW THE GROUP POLICY
 AND  ALL  CERTIFICATES  UPON TIMELY PAYMENT OF THE PREMIUM BILLED TO THE
 GROUP POLICYHOLDER FOR THE RENEWAL, UNLESS:

 S. 2009--C                         111                        A. 3009--C
 
   (I) THE INSURER MAILS OR DELIVERS TO THE GROUP  POLICYHOLDER  AND  ALL
 GROUP MEMBERS WRITTEN NOTICE OF NONRENEWAL, OR CONDITIONAL RENEWAL; AND
   (II) THE INSURER MAILS OR DELIVERS THE WRITTEN NOTICE AT LEAST THIRTY,
 BUT  NOT  MORE THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE EXPIRATION DATE
 SPECIFIED IN THE POLICY OR, IF NO DATE IS SPECIFIED, THE  NEXT  ANNIVER-
 SARY DATE OF THE POLICY.
   (5) WHERE THE GROUP POLICYHOLDER NONRENEWS THE GROUP POLICY, THE GROUP
 POLICYHOLDER  SHALL  MAIL OR DELIVER WRITTEN NOTICE TO EACH GROUP MEMBER
 ADVISING THE GROUP MEMBER OF NONRENEWAL OF  THE  GROUP  POLICY  AND  THE
 EFFECTIVE  DATE  OF  NONRENEWAL.  THE  GROUP  POLICYHOLDER SHALL MAIL OR
 DELIVER WRITTEN NOTICE AT LEAST THIRTY DAYS PRIOR TO THE NONRENEWAL.
   (6) EVERY NOTICE OF CANCELLATION, NONRENEWAL, OR  CONDITIONAL  RENEWAL
 SHALL  SET FORTH THE SPECIFIC REASON OR REASONS FOR CANCELLATION, NONRE-
 NEWAL, OR CONDITIONAL RENEWAL.
   (7) (A) AN INSURER SHALL NOT BE REQUIRED UNDER THIS SUBSECTION TO GIVE
 NOTICE TO A GROUP MEMBER IF THE INSURER HAS BEEN ADVISED BY  EITHER  THE
 GROUP  POLICYHOLDER OR ANOTHER INSURER THAT SUBSTANTIALLY SIMILAR COVER-
 AGE HAS BEEN OBTAINED FROM THE OTHER INSURER WITHOUT LAPSE OF COVERAGE.
   (B) A GROUP POLICYHOLDER SHALL NOT BE REQUIRED UNDER  THIS  SUBSECTION
 TO  GIVE  NOTICE TO A GROUP MEMBER IF SUBSTANTIALLY SIMILAR COVERAGE HAS
 BEEN OBTAINED FROM ANOTHER INSURER WITHOUT LAPSE OF COVERAGE.
   (8) (A) IF, PRIOR TO THE EFFECTIVE DATE OF  CANCELLATION,  NONRENEWAL,
 OR  CONDITIONAL  RENEWAL  OF THE GROUP POLICY, OR A CERTIFICATE, WHETHER
 INITIATED BY THE INSURER, GROUP POLICYHOLDER OR BY THE GROUP  MEMBER  IN
 REGARD  TO THE GROUP MEMBER'S CERTIFICATE, COVERAGE ATTACHES PURSUANT TO
 THE TERMS OF A GROUP POLICY, THEN THE COVERAGE SHALL BE EFFECTIVE  UNTIL
 EXPIRATION  OF  THE  APPLICABLE PERIOD OF COVERAGE PROVIDED IN THE GROUP
 POLICY  NOTWITHSTANDING  THE  CANCELLATION,  NONRENEWAL  OR  CONDITIONAL
 NONRENEWAL OF THE GROUP POLICY.
   (B) NOTWITHSTANDING SUBPARAGRAPH (A) OF THIS PARAGRAPH, AN INSURER MAY
 TERMINATE COVERAGE UNDER AN INDIVIDUAL CERTIFICATE ON THE EFFECTIVE DATE
 OF  CANCELLATION, IF THE CERTIFICATE IS CANCELLED IN ACCORDANCE WITH THE
 PROVISIONS OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF THIS SUBSECTION.
   (K) ANY MAILING OR DELIVERY TO A GROUP MEMBER  REQUIRED  OR  PERMITTED
 UNDER  THIS  SECTION  MAY  BE MADE BY ELECTRONIC MAIL IF CONSENT TO SUCH
 METHOD OF DELIVERY HAS BEEN PREVIOUSLY RECEIVED FROM SUCH GROUP MEMBER.
   (L) AN INSURER MAY ISSUE A TRANSPORTATION NETWORK COMPANY GROUP POLICY
 TO A TRANSPORTATION NETWORK COMPANY, NOTWITHSTANDING THAT IT  MAY  BE  A
 CONDITION OF OPERATING A VEHICLE ON THE TRANSPORTATION NETWORK COMPANY'S
 DIGITAL NETWORK FOR THE TNC DRIVER TO PARTICIPATE IN SUCH GROUP POLICY.
   (M)  AN  INSURER SHALL NOT INCLUDE A MANDATORY ARBITRATION CLAUSE IN A
 POLICY  THAT  PROVIDES  FINANCIAL  RESPONSIBILITY  COVERAGE  UNDER  THIS
 SECTION EXCEPT AS PERMITTED IN SECTION FIVE THOUSAND ONE HUNDRED FIVE OF
 THE INSURANCE LAW.
   §  3456. PROHIBITION AGAINST CANCELLATION OF POLICY WHEN MOTOR VEHICLE
 IS USED OR OPERATED THROUGH A TRANSPORTATION  NETWORK  COMPANY  PROGRAM.
 (A)  AN  INSURER  SHALL  NOT  CANCEL AN EXISTING MOTOR VEHICLE INSURANCE
 POLICY SOLELY ON THE BASIS THAT THE MOTOR VEHICLE COVERED BY THE  INSUR-
 ANCE HAS BEEN MADE AVAILABLE PURSUANT TO A TRANSPORTATION NETWORK COMPA-
 NY  PROGRAM  IN  COMPLIANCE WITH ARTICLE FORTY-FOUR-B OF THE VEHICLE AND
 TRAFFIC LAW.
   (B) THE DEFINITIONS SET FORTH IN SECTION THREE THOUSAND  FOUR  HUNDRED
 FIFTY-FIVE OF THIS ARTICLE SHALL APPLY TO THIS SECTION.
   §  6-a. Subsection (g) of section 5102 of the insurance law is amended
 to read as follows:

 S. 2009--C                         112                        A. 3009--C
 
   (g) "Insurer" means the insurance company or self-insurer, as the case
 may be, which provides the financial security required  by  article  six
 [or], eight, OR FORTY-FOUR-B of the vehicle and traffic law.
   § 7. Subsection (b) of section 5103 of the insurance law is amended by
 adding a new paragraph 4 to read as follows:
   (4)  IS  INJURED  WHILE A MOTOR VEHICLE IS BEING USED OR OPERATED BY A
 TNC DRIVER PURSUANT TO ARTICLE FORTY-FOUR-B OF THE VEHICLE  AND  TRAFFIC
 LAW, PROVIDED, HOWEVER, THAT ONLY THE INSURER ISSUING THE OWNER'S POLICY
 OF  LIABILITY  INSURANCE  PROVIDING COVERAGE FOR THE MOTOR VEHICLE BEING
 OPERATED BY A TNC DRIVER MAY EXCLUDE SUCH COVERAGE AND  AN  INSURER  MAY
 NOT  INCLUDE THIS EXCLUSION IN A POLICY USED TO SATISFY THE REQUIREMENTS
 UNDER ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   § 8. Subsection (d) of section 5106 of the insurance law, as added  by
 chapter 452 of the laws of 2005, is amended to read as follows:
   (d)   [Where]  (1)  EXCEPT  AS  PROVIDED  IN  PARAGRAPH  TWO  OF  THIS
 SUBSECTION, WHERE there is reasonable belief more than one insurer would
 be the source of first party benefits,  the  insurers  may  agree  among
 themselves,  if  there  is a valid basis therefor, that one of them will
 accept and pay the claim initially. If there is no such agreement,  then
 the  first insurer to whom notice of claim is given shall be responsible
 for payment. Any such dispute shall be resolved in accordance  with  the
 arbitration procedures established pursuant to section five thousand one
 hundred five of this article and [regulation] REGULATIONS as promulgated
 by the superintendent, and any insurer paying first-party benefits shall
 be  reimbursed  by  other  insurers for their proportionate share of the
 costs of the claim and the allocated expenses of processing  the  claim,
 in accordance with the provisions entitled "other coverage" contained in
 regulation  and  the  provisions  entitled "other sources of first-party
 benefits" contained in regulation. If there is no such insurer  and  the
 motor  vehicle accident occurs in this state, then an applicant who is a
 qualified person as defined in article fifty-two of this  chapter  shall
 institute  the  claim against THE motor vehicle accident indemnification
 corporation.
   (2) A GROUP POLICY ISSUED PURSUANT  TO  SECTION  THREE  THOUSAND  FOUR
 HUNDRED  FIFTY-FIVE  OF  THIS CHAPTER SHALL PROVIDE FIRST PARTY BENEFITS
 WHEN A DISPUTE EXISTS AS TO WHETHER A DRIVER WAS USING  OR  OPERATING  A
 MOTOR  VEHICLE  IN CONNECTION WITH A TRANSPORTATION NETWORK COMPANY WHEN
 LOSS, DAMAGE, INJURY, OR DEATH OCCURS. A TRANSPORTATION NETWORK  COMPANY
 SHALL  NOTIFY  THE  INSURER  THAT ISSUED THE OWNER'S POLICY OF LIABILITY
 INSURANCE OF THE DISPUTE WITHIN TEN BUSINESS DAYS OF BECOMING AWARE THAT
 THE DISPUTE EXISTS. WHEN THERE IS A DISPUTE, THE  GROUP  INSURER  LIABLE
 FOR  THE PAYMENT OF FIRST PARTY BENEFITS UNDER A GROUP POLICY SHALL HAVE
 THE RIGHT TO RECOVER THE AMOUNT PAID FROM THE DRIVER'S  INSURER  TO  THE
 EXTENT  THAT  THE  DRIVER  WOULD  HAVE  BEEN LIABLE TO PAY DAMAGES IN AN
 ACTION AT LAW.
   § 9. Subsection (b) of section 2305 of the insurance law,  as  amended
 by  chapter  11  of the laws of 2008, paragraph 13 as amended by chapter
 136 of the laws of 2008, is amended to read as follows:
   (b) rate filings for:
   (1) workers' compensation insurance;
   (2) motor vehicle insurance, or  surety  bonds,  required  by  section
 three  hundred  seventy of the vehicle and traffic law OR ARTICLE FORTY-
 FOUR-B OF THE VEHICLE AND TRAFFIC LAW;
   (3) joint underwriting;
   (4) motor vehicle assigned risk insurance;

 S. 2009--C                         113                        A. 3009--C
 
   (5) insurance issued by the New York Property  Insurance  Underwriting
 Association;
   (6)  risk  sharing  plans  authorized  by  section  two thousand three
 hundred eighteen of this article;
   (7) title insurance;
   (8) medical malpractice liability insurance;
   (9) insurance issued by the Medical Malpractice Insurance Association;
   (10) mortgage guaranty insurance;
   (11) credit property insurance, as defined  in  section  two  thousand
 three hundred forty of this article; [and]
   (12) gap insurance; AND
   (13)  [Private]  PRIVATE  passenger  automobile  insurance,  except as
 provided in section two thousand three hundred fifty of this article[.],
 shall be filed with the superintendent and shall  not  become  effective
 unless  either  the  filing  has been approved or thirty days, which the
 superintendent may with cause extend an additional thirty days and  with
 further  cause  extend  an additional fifteen days, have elapsed and the
 filing has not been disapproved as failing to meet the  requirements  of
 this  article, including the standard that rates be not otherwise unrea-
 sonable. After a rate filing becomes effective, the filing and  support-
 ing  information  shall  be  open  to  public inspection. If a filing is
 disapproved, THEN notice of such disapproval order shall be given, spec-
 ifying in what respects such filing fails to meet  the  requirements  of
 this  article.  Upon  his  or  her  request, the superintendent shall be
 provided with support and  assistance  from  the  workers'  compensation
 board  and  other state agencies and departments with appropriate juris-
 diction. The loss cost multiplier for each  insurer  providing  coverage
 for  workers'  compensation, as defined by regulation promulgated by the
 superintendent, shall be promptly displayed on the department's  website
 and updated in the event of any change.
   §  10.  Paragraph 1 of subsection (a) of section 3425 of the insurance
 law, as amended by chapter 235 of the laws of 1989, is amended  to  read
 as follows:
   (1) "Covered  policy"  means  a  contract of insurance, referred to in
 this section as "automobile insurance", issued or issued for delivery in
 this state, on a risk  located  or  resident  in  this  state,  insuring
 against  losses  or liabilities arising out of the ownership, operation,
 or use of a motor vehicle, predominantly used for non-business purposes,
 when a natural person is the named insured under the policy  of  automo-
 bile  insurance;  PROVIDED,  HOWEVER,  THAT  THE USE OR OPERATION OF THE
 MOTOR VEHICLE BY A TRANSPORTATION NETWORK DRIVER AS  A  TNC  VEHICLE  IN
 ACCORDANCE  WITH  ARTICLE  FORTY-FOUR-B  OF  THE VEHICLE AND TRAFFIC LAW
 SHALL NOT BE INCLUDED IN DETERMINING WHETHER THE MOTOR VEHICLE IS  BEING
 USED PREDOMINANTLY FOR NON-BUSINESS PURPOSES.
   §  11. Subdivisions 1 and 3 of section 160-cc of the executive law, as
 added by chapter 49 of the laws of 1999, are amended and a new  subdivi-
 sion 10 is added to read as follows:
   1. "Black car operator" means the registered owner of a for-hire vehi-
 cle,  or  a  driver  designated  by such registered owner to operate the
 registered owner's for-hire vehicle as the registered owner's authorized
 designee, whose injury arose out of  and  in  the  course  of  providing
 covered  services  to  a  central dispatch facility that is a registered
 member of the New York black car operators'  injury  compensation  fund,
 inc.
   (A)  FOR  THE  PURPOSES OF THE ADMINISTRATION OF THIS ARTICLE, A BLACK
 CAR OPERATOR SHALL INCLUDE A TNC DRIVER THAT IS ENGAGED IN A TNC  PREAR-

 S. 2009--C                         114                        A. 3009--C
 
 RANGED  TRIP.  FOR THE PURPOSES OF THIS ARTICLE, THE TERMS "TNC DRIVER",
 "TNC PREARRANGED TRIP" AND "DIGITAL NETWORK" SHALL HAVE THE  SAME  MEAN-
 INGS  AS  SUCH  TERMS ARE DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE
 AND TRAFFIC LAW.
   (B)  FOR  THE  PURPOSES OF THE ADMINISTRATION OF THIS ARTICLE, A BLACK
 CAR OPERATOR SHALL INCLUDE A TNC  DRIVER  THAT  IS  LOGGED  ONTO  A  TNC
 DIGITAL  NETWORK  AND  IS  NOT  ENGAGED IN A TNC PREARRANGED TRIP BUT IS
 ENGAGED IN AN ACTIVITY REASONABLY RELATED TO DRIVING  AS  A  TNC  DRIVER
 TAKING  INTO  CONSIDERATION THE TIME, PLACE AND MANNER OF SUCH ACTIVITY,
 HOWEVER, THAT THIS PARAGRAPH SHALL ONLY APPLY TO A TNC DRIVER  PERMITTED
 PURSUANT  TO  ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW WITHIN
 TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS PARAGRAPH.
   3. "Central dispatch facility"  means  a  central  facility,  wherever
 located, INCLUDING A TRANSPORTATION NETWORK COMPANY, that (a) dispatches
 the  registered  owners  of  for-hire vehicles, or drivers acting as the
 designated  agent  of  such  registered  owners,  to  both  pick-up  and
 discharge  passengers  in the state, and (b) has certified to the satis-
 faction of the department of state that more than ninety percent of  its
 for-hire  business  is on a payment basis other than direct cash payment
 by a passenger; provided, however,  that  a  central  dispatch  facility
 shall  not  include any such central facility that owns fifty percent or
 more of the cars it dispatches. FOR THE PURPOSES  OF  ADMINISTRATION  OF
 THIS  ARTICLE,  CENTRAL  DISPATCH FACILITY SHALL INCLUDE TNC PREARRANGED
 TRIP AS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   10. "TRANSPORTATION NETWORK COMPANY" OR  "TNC"  SHALL  HAVE  THE  SAME
 MEANING  AS  THE  TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE
 AND TRAFFIC LAW.
   § 12. Subdivision 1 of section 160-ff of the executive law,  as  added
 by chapter 49 of the laws of 1999, is amended to read as follows:
   1.  [Within  thirty days of the effective date of this article, there]
 THERE shall be appointed a board of directors of the fund, consisting of
 [nine] ELEVEN directors, [five] SIX of whom shall  be  selected  by  the
 black  car  assistance corporation; [three] FOUR of whom shall be chosen
 by the governor, including one chosen upon  the  recommendation  of  the
 temporary president of the senate and one chosen upon the recommendation
 of the speaker of the assembly; ONE CHOSEN TO REPRESENT A TRANSPORTATION
 NETWORK  COMPANY  AS  DEFINED BY ARTICLE FORTY-FOUR-B OF THE VEHICLE AND
 TRAFFIC LAW; and one of whom shall be the secretary, who shall serve  ex
 officio.  [The initial terms of directors other than the secretary shall
 be staggered, the three directors appointed by the governor serving  for
 initial  terms  of  three years from the effective date of this article,
 three of the remaining five directors serving for initial terms  of  two
 years  from the effective date of this article and two directors serving
 for initial terms of one year from the effective date of  this  article]
 THE  GOVERNOR SHALL APPOINT THE DIRECTOR CHOSEN TO REPRESENT A TRANSPOR-
 TATION NETWORK COMPANY NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
 SEVENTEEN. The [subsequent] terms of all directors other than the secre-
 tary shall be three years. The board shall have the power to remove  for
 cause any director other than the secretary.
   §  13.  Subdivision 3 of section 160-jj of the executive law, as added
 by chapter 49 of the laws of 1999, is amended to read as follows:
   3. No local licensing authority or the  department  OR  THE  NEW  YORK
 STATE  DEPARTMENT  OF  MOTOR VEHICLES shall issue, continue or renew any
 license or registration certificate, OR PERMIT for the operation of  any
 central  dispatch  facility  unless such central dispatch facility, as a
 condition of maintaining its license  and/or  registration  certificate,

 S. 2009--C                         115                        A. 3009--C
 
 adds the surcharge required by this section to every invoice and billing
 for  covered  services  sent  to,  and  every credit payment for covered
 services received from, its customers and pays to the fund no later than
 the  fifteenth  day  of  each month the total surcharges due pursuant to
 this article.
   § 14. The general municipal law is amended by adding a new section 182
 to read as follows:
   § 182. LOCAL REGULATION OF TRANSPORTATION NETWORK COMPANIES.  1. EVERY
 COUNTY, AND ANY CITY WITH A POPULATION OF ONE HUNDRED THOUSAND  OR  MORE
 AS  OF THE LAST DECENNIAL CENSUS, MAY PROHIBIT THE PICK-UP OF ANY PERSON
 BY A TRANSPORTATION NETWORK COMPANY AS DEFINED BY  ARTICLE  FORTY-FOUR-B
 OF THE VEHICLE AND TRAFFIC LAW WITHIN THEIR GEOGRAPHIC BOUNDARIES PURSU-
 ANT TO THE ENACTMENT OF A LOCAL LAW OR ORDINANCE, EXCEPT THAT ANY COUNTY
 THAT  CONTAINS  A CITY WITH A POPULATION OF ONE HUNDRED THOUSAND OR MORE
 AS OF THE LAST DECENNIAL CENSUS SHALL ONLY BE AUTHORIZED TO PROHIBIT THE
 PICK-UP OF ANY PERSON BY A TRANSPORTATION NETWORK COMPANY AS DEFINED  BY
 ARTICLE  FORTY-FOUR-B  OF  THE  VEHICLE  AND  TRAFFIC LAW OUTSIDE OF THE
 GEOGRAPHIC BOUNDARIES OF SUCH CITY.
   2. ANY COUNTY OR CITY THAT ENACTS A LOCAL LAW OR ORDINANCE PURSUANT TO
 THIS SECTION OR REPEALS SUCH LOCAL LAW OR  ORDINANCE  SHALL  NOTIFY  THE
 DEPARTMENT  OF  MOTOR  VEHICLES.   SUCH DEPARTMENT SHALL MAINTAIN ON ITS
 PUBLIC WEBSITE A LIST OF ALL COUNTIES AND CITIES  THAT  HAVE  ENACTED  A
 LOCAL  LAW  OR  ORDINANCE PURSUANT TO THIS SECTION AND SHALL REMOVE FROM
 SUCH LIST ANY COUNTY OR CITY THAT REPEALS SUCH LOCAL LAW OR ORDINANCE.
   3.  THIS SECTION SHALL NOT APPLY TO A CITY WITH A  POPULATION  OF  ONE
 MILLION OR MORE.
   §  15.    Subdivision 1 of section 171-a of the tax law, as amended by
 chapter 90 of the laws of 2014, is amended to read as follows:
   1. All taxes, interest, penalties and fees collected  or  received  by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A (except as otherwise provided in section  two  hundred  eighty-
 four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except  as otherwise provided in section four hundred eighty-two there-
 of), twenty-B, twenty-one, twenty-two, twenty-six, [twenty-six-B,] twen-
 ty-eight (except as otherwise provided in section eleven hundred two  or
 eleven hundred three thereof), twenty-eight-A, TWENTY-NINE-B, thirty-one
 (except  as  otherwise  provided  in section fourteen hundred twenty-one
 thereof), thirty-three and  thirty-three-A  of  this  chapter  shall  be
 deposited  daily  in  one  account  with such responsible banks, banking
 houses or trust companies as may be designated by  the  comptroller,  to
 the credit of the comptroller. Such an account may be established in one
 or  more  of such depositories. Such deposits shall be kept separate and
 apart from all other money in the possession  of  the  comptroller.  The
 comptroller  shall require adequate security from all such depositories.
 Of the total revenue collected or received under such articles  of  this
 chapter,  the  comptroller  shall retain in the comptroller's hands such
 amount as the commissioner may determine to be necessary for refunds  or
 reimbursements  under  such articles of this chapter out of which amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers shall be entitled under the provisions  of  such  articles  of  this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts  showing  the amount of revenue collected or received from each
 of the taxes imposed by such articles. The comptroller, after  reserving

 S. 2009--C                         116                        A. 3009--C
 
 the  amount  to  pay such refunds or reimbursements, shall, on or before
 the tenth day of each month, pay into the state treasury to  the  credit
 of  the general fund all revenue deposited under this section during the
 preceding  calendar  month  and remaining to the comptroller's credit on
 the last day of such preceding month, (i) except  that  the  comptroller
 shall  pay  to  the  state  department of social services that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner  as  the  amount  to  be  credited against past-due support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article, (ii) and except that the comptroller shall pay to the New  York
 state  higher education services corporation and the state university of
 New York or the city university of New York respectively that amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in repayment of guaranteed student loans and state university  loans  or
 city  university  loans  pursuant  to  subdivision  five  of section one
 hundred seventy-one-d and subdivision six of section one hundred  seven-
 ty-one-e of this article, (iii) and except further that, notwithstanding
 any  law, the comptroller shall credit to the revenue arrearage account,
 pursuant to section ninety-one-a of the state finance law,  that  amount
 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
 thereon,  which  is  certified to the comptroller by the commissioner as
 the amount to be credited against a past-due  legally  enforceable  debt
 owed  to  a state agency pursuant to paragraph (a) of subdivision six of
 section one hundred seventy-one-f of this article, provided, however, he
 shall credit to  the  special  offset  fiduciary  account,  pursuant  to
 section  ninety-one-c of the state finance law, any such amount credita-
 ble as a liability as set forth in paragraph (b) of subdivision  six  of
 section  one  hundred  seventy-one-f  of  this  article, (iv) and except
 further that the comptroller shall pay to the  city  of  New  York  that
 amount  of  overpayment  of tax imposed by article nine, nine-A, twenty-
 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and  any
 interest thereon that is certified to the comptroller by the commission-
 er  as  the  amount  to be credited against city of New York tax warrant
 judgment debt pursuant to section  one  hundred  seventy-one-l  of  this
 article,  (v)  and  except  further  that the comptroller shall pay to a
 non-obligated spouse that amount of overpayment of tax imposed by  arti-
 cle twenty-two of this chapter and the interest on such amount which has
 been credited pursuant to section one hundred seventy-one-c, one hundred
 seventy-one-d,  one  hundred seventy-one-e, one hundred seventy-one-f or
 one hundred seventy-one-l of this article and which is certified to  the
 comptroller  by  the  commissioner  as the amount due such non-obligated
 spouse pursuant to paragraph  six  of  subsection  (b)  of  section  six
 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
 a  like  amount which the comptroller shall pay into the treasury to the
 credit of the general fund from  amounts  subsequently  payable  to  the
 department  of  social  services,  the state university of New York, the
 city university of New York, or the  higher  education  services  corpo-
 ration,  or  the  revenue  arrearage account or special offset fiduciary
 account pursuant to section ninety-one-a or ninety-one-c  of  the  state
 finance  law, as the case may be, whichever had been credited the amount
 originally withheld from such overpayment, and  (vii)  with  respect  to
 amounts  originally  withheld  from such overpayment pursuant to section

 S. 2009--C                         117                        A. 3009--C
 
 one hundred seventy-one-l of this article and paid to the  city  of  New
 York,  the  comptroller shall collect a like amount from the city of New
 York.
   §  16.  Subdivision  1  of section 171-a of the tax law, as amended by
 section 54 of part A of chapter 59 of the laws of 2014,  is  amended  to
 read as follows:
   1.  All  taxes,  interest, penalties and fees collected or received by
 the commissioner or the commissioner's duly authorized agent under arti-
 cles nine (except section one hundred eighty-two-a thereof and except as
 otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
 twelve-A  (except  as  otherwise provided in section two hundred eighty-
 four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
 section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
 (except as otherwise provided in section four hundred eighty-two  there-
 of),  twenty-one,  twenty-two,  twenty-six, [twenty-six-B,] twenty-eight
 (except as otherwise provided in section eleven hundred  two  or  eleven
 hundred   three   thereof),  twenty-eight-A,  TWENTY-NINE-B,  thirty-one
 (except as otherwise provided in  section  fourteen  hundred  twenty-one
 thereof),  thirty-three  and  thirty-three-A  of  this  chapter shall be
 deposited daily in one account  with  such  responsible  banks,  banking
 houses  or  trust  companies as may be designated by the comptroller, to
 the credit of the comptroller. Such an account may be established in one
 or more of such depositories. Such deposits shall be kept  separate  and
 apart  from  all  other  money in the possession of the comptroller. The
 comptroller shall require adequate security from all such  depositories.
 Of  the  total revenue collected or received under such articles of this
 chapter, the comptroller shall retain in the  comptroller's  hands  such
 amount  as the commissioner may determine to be necessary for refunds or
 reimbursements under such articles of this chapter out of  which  amount
 the comptroller shall pay any refunds or reimbursements to which taxpay-
 ers  shall  be  entitled  under  the provisions of such articles of this
 chapter. The commissioner and the comptroller shall maintain a system of
 accounts showing the amount of revenue collected or received  from  each
 of  the taxes imposed by such articles. The comptroller, after reserving
 the amount to pay such refunds or reimbursements, shall,  on  or  before
 the  tenth  day of each month, pay into the state treasury to the credit
 of the general fund all revenue deposited under this section during  the
 preceding  calendar  month  and remaining to the comptroller's credit on
 the last day of such preceding month, (i) except  that  the  comptroller
 shall  pay  to  the  state  department of social services that amount of
 overpayments of tax imposed by article twenty-two of  this  chapter  and
 the interest on such amount which is certified to the comptroller by the
 commissioner  as  the  amount  to  be  credited against past-due support
 pursuant to subdivision six of section one hundred seventy-one-c of this
 article, (ii) and except that the comptroller shall pay to the New  York
 state  higher education services corporation and the state university of
 New York or the city university of New York respectively that amount  of
 overpayments  of  tax  imposed by article twenty-two of this chapter and
 the interest on such amount which is certified to the comptroller by the
 commissioner as the amount to be credited against the amount of defaults
 in repayment of guaranteed student loans and state university  loans  or
 city  university  loans  pursuant  to  subdivision  five  of section one
 hundred seventy-one-d and subdivision six of section one hundred  seven-
 ty-one-e of this article, (iii) and except further that, notwithstanding
 any  law, the comptroller shall credit to the revenue arrearage account,
 pursuant to section ninety-one-a of the state finance law,  that  amount

 S. 2009--C                         118                        A. 3009--C
 
 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir-
 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest
 thereon,  which  is  certified to the comptroller by the commissioner as
 the  amount  to  be credited against a past-due legally enforceable debt
 owed to a state agency pursuant to paragraph (a) of subdivision  six  of
 section one hundred seventy-one-f of this article, provided, however, he
 shall  credit  to  the  special  offset  fiduciary  account, pursuant to
 section ninety-one-c of the state finance law, any such amount  credita-
 ble  as  a liability as set forth in paragraph (b) of subdivision six of
 section one hundred seventy-one-f  of  this  article,  (iv)  and  except
 further  that  the  comptroller  shall  pay to the city of New York that
 amount of overpayment of tax imposed by article  nine,  nine-A,  twenty-
 two,  thirty, thirty-A, thirty-B or thirty-three of this chapter and any
 interest thereon that is certified to the comptroller by the commission-
 er as the amount to be credited against city of  New  York  tax  warrant
 judgment  debt  pursuant  to  section  one hundred seventy-one-l of this
 article, (v) and except further that the  comptroller  shall  pay  to  a
 non-obligated  spouse that amount of overpayment of tax imposed by arti-
 cle twenty-two of this chapter and the interest on such amount which has
 been credited pursuant to section one hundred seventy-one-c, one hundred
 seventy-one-d, one hundred seventy-one-e, one hundred  seventy-one-f  or
 one  hundred seventy-one-l of this article and which is certified to the
 comptroller by the commissioner as the  amount  due  such  non-obligated
 spouse  pursuant  to  paragraph  six  of  subsection  (b) of section six
 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct
 a like amount which the comptroller shall pay into the treasury  to  the
 credit  of  the  general  fund  from amounts subsequently payable to the
 department of social services, the state university  of  New  York,  the
 city  university  of  New  York, or the higher education services corpo-
 ration, or the revenue arrearage account  or  special  offset  fiduciary
 account  pursuant  to  section ninety-one-a or ninety-one-c of the state
 finance law, as the case may be, whichever had been credited the  amount
 originally  withheld  from  such  overpayment, and (vii) with respect to
 amounts originally withheld from such overpayment  pursuant  to  section
 one  hundred  seventy-one-l  of this article and paid to the city of New
 York, the comptroller shall collect a like amount from the city  of  New
 York.
   §  17. Paragraph 34 of subdivision (b) of section 1101 of the tax law,
 as amended by section 1 of part WW of chapter 57 of the laws of 2010, is
 amended to read as follows:
   (34) Transportation service. The service of transporting, carrying  or
 conveying  a  person  or  persons by livery service; whether to a single
 destination or to multiple destinations; and  whether  the  compensation
 paid  by  or  on behalf of the passenger is based on mileage, trip, time
 consumed or any other basis. A service that  begins  and  ends  in  this
 state  is deemed intra-state even if it passes outside this state during
 a portion of the trip. However, transportation service does not  include
 transportation  of  persons  in connection with funerals. Transportation
 service includes transporting, carrying, or conveying  property  of  the
 person  being  transported,  whether  owned  by  or  in the care of such
 person.  NOTWITHSTANDING THE FOREGOING, TRANSPORTATION SERVICE SHALL NOT
 INCLUDE A TNC PREARRANGED TRIP, AS  THAT  TERM  IS  DEFINED  IN  ARTICLE
 FORTY-FOUR-B  OF  THE  VEHICLE  AND  TRAFFIC LAW, THAT IS SUBJECT TO TAX
 UNDER ARTICLE TWENTY-NINE-B OF THIS CHAPTER.  In  addition  to  what  is
 included  in  the  definition  of  "receipt"  in paragraph three of this
 subdivision, receipts from the sale of transportation service subject to

 S. 2009--C                         119                        A. 3009--C
 
 tax include any handling, carrying, baggage, booking  service,  adminis-
 trative,  mark-up,  additional,  or other charge, of any nature, made in
 conjunction  with  the  transportation  service.  Livery  service  means
 service  provided by limousine, black car or other motor vehicle, with a
 driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of
 one million or more in this state, an  affiliated  livery  vehicle,  and
 excluding any scheduled public service. Limousine means a vehicle with a
 seating  capacity of up to fourteen persons, excluding the driver. Black
 car means a for-hire vehicle dispatched from a central facility. "Affil-
 iated livery vehicle" means a for-hire  motor  vehicle  with  a  seating
 capacity  of up to six persons, including the driver, other than a black
 car or luxury limousine, that is authorized and licensed by the taxi and
 limousine commission of a city of one million or more to  be  dispatched
 by  a base station located in such a city and regulated by such taxi and
 limousine commission; and the charges for service provided by an  affil-
 iated  livery  vehicle  are on the basis of flat rate, time, mileage, or
 zones and not on a garage to garage basis.
   § 18. The tax law is amended by adding a new article 29-B to  read  as
 follows:
                               ARTICLE 29-B
          STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY
                             PREARRANGED TRIPS
 SECTION 1291. DEFINITIONS.
         1292. IMPOSITION.
         1293. PRESUMPTION.
         1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE.
         1295. RECORDS TO BE KEPT.
         1296. SECRECY OF RETURNS AND REPORTS.
         1297. PRACTICE AND PROCEDURE.
         1298. DEPOSIT AND DISPOSITION OF REVENUE.
   §  1291.  DEFINITIONS.  (A) "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP,
 LIMITED LIABILITY COMPANY, SOCIETY, ASSOCIATION,  JOINT  STOCK  COMPANY,
 CORPORATION,  ESTATE,  RECEIVER, TRUSTEE, ASSIGNEE, REFEREE OR ANY OTHER
 PERSON  ACTING  IN  A  FIDUCIARY  OR  REPRESENTATIVE  CAPACITY,  WHETHER
 APPOINTED  BY  A  COURT OR OTHERWISE, ANY COMBINATION OF INDIVIDUALS AND
 ANY OTHER FORM OF UNINCORPORATED ENTERPRISE OWNED OR CONDUCTED BY TWO OR
 MORE PERSONS.
   (B) "CITY" MEANS A CITY OF A MILLION OR MORE LOCATED IN THE  METROPOL-
 ITAN  COMMUTER  TRANSPORTATION  DISTRICT  ESTABLISHED  BY SECTION TWELVE
 HUNDRED SIXTY-TWO OF THE PUBLIC AUTHORITIES LAW.
   (C) "TRANSPORTATION NETWORK COMPANY" OR  "TNC"  SHALL  HAVE  THE  SAME
 MEANING  AS  THE  TERM IS DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE
 AND TRAFFIC LAW.
   (D) "TNC PREARRANGED TRIP" SHALL HAVE THE SAME MEANING AS THE TERM  IS
 DEFINED IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (E) "TNC DRIVER" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED IN
 ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (F)  "TNC  VEHICLE" SHALL HAVE THE SAME MEANING AS THE TERM IS DEFINED
 IN ARTICLE FORTY-FOUR-B OF THE VEHICLE AND TRAFFIC LAW.
   (G) "GROSS TRIP FARE" MEANS THE SUM OF THE BASE FARE CHARGE,  DISTANCE
 CHARGE AND TIME CHARGE FOR A COMPLETE TNC PREARRANGED TRIP AT THE APPLI-
 CABLE RATE CHARGED BY THE TNC AT THE TIME SUCH TRIP IS ARRANGED.
   §  1292.  IMPOSITION.  THERE  IS  HEREBY  IMPOSED ON EVERY TNC A STATE
 ASSESSMENT FEE OF 4% OF THE GROSS TRIP FARE  OF  EVERY  TNC  PREARRANGED
 TRIP  PROVIDED BY SUCH TNC THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE
 THE CITY AND TERMINATES ANYWHERE IN THIS STATE.

 S. 2009--C                         120                        A. 3009--C
 
   § 1293. PRESUMPTION. FOR THE PURPOSE OF THE PROPER  ADMINISTRATION  OF
 THIS  ARTICLE AND TO PREVENT EVASION OF THE STATE ASSESSMENT FEE IMPOSED
 BY THIS ARTICLE, IT SHALL BE PRESUMED THAT EVERY  TNC  PREARRANGED  TRIP
 THAT ORIGINATES ANYWHERE IN THE STATE OUTSIDE THE CITY IS SUBJECT TO THE
 STATE  ASSESSMENT FEE. THIS PRESUMPTION SHALL PREVAIL UNTIL THE CONTRARY
 IS PROVEN BY THE PERSON LIABLE FOR THE FEE.
   § 1294. RETURNS AND PAYMENT OF STATE ASSESSMENT FEE. (A) EVERY  PERSON
 LIABLE FOR THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE SHALL FILE A
 RETURN  ON A CALENDAR-QUARTERLY BASIS WITH THE COMMISSIONER. EACH RETURN
 SHALL SHOW THE NUMBER OF TNC PREARRANGED TRIPS,  THE  TOTAL  GROSS  TRIP
 FARES  AND  THE  AMOUNT OF FEES DUE THEREON IN THE QUARTER FOR WHICH THE
 RETURN IS FILED, TOGETHER WITH SUCH OTHER INFORMATION AS THE COMMISSION-
 ER MAY REQUIRE.  THE RETURNS REQUIRED BY THIS  SECTION  SHALL  BE  FILED
 WITHIN  THIRTY DAYS AFTER THE END OF THE QUARTERLY PERIOD COVERED THERE-
 BY. IF THE COMMISSIONER DEEMS  IT  NECESSARY  IN  ORDER  TO  ENSURE  THE
 PAYMENT OF THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE, THE COMMIS-
 SIONER  MAY  REQUIRE  RETURNS  TO  BE  MADE  FOR  SHORTER  PERIODS  THAN
 PRESCRIBED BY THE FOREGOING PROVISIONS OF THIS SECTION,  AND  UPON  SUCH
 DATES  AS  THE  COMMISSIONER  MAY  SPECIFY. THE FORM OF RETURNS SHALL BE
 PRESCRIBED BY THE COMMISSIONER AND SHALL CONTAIN SUCH INFORMATION AS THE
 COMMISSIONER MAY DEEM NECESSARY FOR THE PROPER  ADMINISTRATION  OF  THIS
 ARTICLE. THE COMMISSIONER MAY REQUIRE AMENDED RETURNS TO BE FILED WITHIN
 THIRTY DAYS AFTER NOTICE AND TO CONTAIN THE INFORMATION SPECIFIED IN THE
 NOTICE. THE COMMISSIONER MAY REQUIRE THAT THE RETURNS BE FILED ELECTRON-
 ICALLY.
   (B)  EVERY  PERSON REQUIRED TO FILE A RETURN UNDER THIS ARTICLE SHALL,
 AT THE TIME OF FILING SUCH RETURN, PAY TO THE COMMISSIONER THE TOTAL  OF
 ALL STATE ASSESSMENT FEES ON THE CORRECT NUMBER OF TRIPS SUBJECT TO SUCH
 FEE  UNDER  THIS  ARTICLE. THE AMOUNT SO PAYABLE TO THE COMMISSIONER FOR
 THE PERIOD FOR WHICH A RETURN IS REQUIRED TO BE FILED SHALL BE  DUE  AND
 PAYABLE  TO THE COMMISSIONER ON THE DATE SPECIFIED FOR THE FILING OF THE
 RETURN FOR SUCH PERIOD, WITHOUT REGARD TO WHETHER A RETURN IS  FILED  OR
 WHETHER  THE  RETURN THAT IS FILED CORRECTLY SHOWS THE CORRECT NUMBER OF
 TRIPS, GROSS TRIP FARES OR AMOUNT OF FEES DUE THEREON. THE  COMMISSIONER
 MAY REQUIRE THAT THE FEE BE PAID ELECTRONICALLY.
   §  1295. RECORDS TO BE KEPT. EVERY PERSON LIABLE FOR THE STATE ASSESS-
 MENT FEE IMPOSED BY THIS ARTICLE SHALL KEEP:
   (A) RECORDS OF EVERY TNC PREARRANGED TRIP SUBJECT TO THE STATE ASSESS-
 MENT FEE UNDER THIS ARTICLE, AND OF ALL AMOUNTS  PAID,  CHARGED  OR  DUE
 THEREON, IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE;
   (B)  TRUE  AND  COMPLETE  COPIES,  INCLUDING ELECTRONIC COPIES, OF ANY
 RECORDS REQUIRED TO BE KEPT BY A STATE  AGENCY  THAT  IS  AUTHORIZED  TO
 PERMIT OR REGULATE A TNC; AND
   (C) SUCH OTHER RECORDS AND INFORMATION AS THE COMMISSIONER MAY REQUIRE
 TO PERFORM HIS OR HER DUTIES UNDER THIS ARTICLE.
   §  1296. SECRECY OF RETURNS AND REPORTS. (A) EXCEPT IN ACCORDANCE WITH
 PROPER JUDICIAL ORDER OR AS OTHERWISE  PROVIDED  BY  LAW,  IT  SHALL  BE
 UNLAWFUL  FOR  THE  COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE DEPART-
 MENT, ANY PERSON ENGAGED OR RETAINED BY THE DEPARTMENT ON AN INDEPENDENT
 CONTRACT BASIS, OR ANY PERSON WHO IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF
 THE CONTENTS OF A RETURN OR REPORT FILED WITH THE COMMISSIONER  PURSUANT
 TO  THIS ARTICLE, TO DIVULGE OR MAKE KNOWN IN ANY MANNER ANY PARTICULARS
 SET FORTH OR DISCLOSED IN ANY SUCH  RETURN  OR  REPORT.    THE  OFFICERS
 CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  AND REPORTS SHALL NOT BE
 REQUIRED TO PRODUCE ANY OF THEM OR EVIDENCE  OF  ANYTHING  CONTAINED  IN
 THEM  IN  ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF OF THE

 S. 2009--C                         121                        A. 3009--C
 
 COMMISSIONER IN AN ACTION OR PROCEEDING UNDER  THE  PROVISIONS  OF  THIS
 CHAPTER OR IN ANY OTHER ACTION OR PROCEEDING INVOLVING THE COLLECTION OF
 A  STATE ASSESSMENT FEE DUE UNDER THIS ARTICLE TO WHICH THE STATE OR THE
 COMMISSIONER  IS A PARTY OR A CLAIMANT, OR ON BEHALF OF ANY PARTY TO ANY
 ACTION, PROCEEDING OR HEARING UNDER THE PROVISIONS OF THIS ARTICLE  WHEN
 THE  RETURNS,  REPORTS  OR  FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN
 SUCH ACTION, PROCEEDING OR HEARING, IN ANY OF WHICH EVENTS THE COURT, OR
 IN THE CASE OF A HEARING, THE DIVISION OF TAX APPEALS  MAY  REQUIRE  THE
 PRODUCTION  OF,  AND  MAY  ADMIT INTO EVIDENCE, SO MUCH OF SAID RETURNS,
 REPORTS OR OF THE FACTS SHOWN THEREBY, AS ARE PERTINENT TO  THE  ACTION,
 PROCEEDING  OR  HEARING AND NO MORE. THE COMMISSIONER OR THE DIVISION OF
 TAX APPEALS MAY, NEVERTHELESS, PUBLISH A COPY OR A SUMMARY OF ANY  DECI-
 SION RENDERED AFTER A HEARING REQUIRED BY THIS ARTICLE.  NOTHING IN THIS
 SECTION  SHALL BE CONSTRUED TO PROHIBIT THE DELIVERY TO A PERSON WHO HAS
 FILED A RETURN OR REPORT OR TO SUCH PERSON'S DULY  AUTHORIZED  REPRESEN-
 TATIVE  OF  A CERTIFIED COPY OF ANY RETURN OR REPORT FILED IN CONNECTION
 WITH SUCH PERSON'S STATE ASSESSMENT FEE.  NOR  SHALL  ANYTHING  IN  THIS
 SECTION  BE CONSTRUED TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLAS-
 SIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS
 AND THE ITEMS THEREOF, OR THE INSPECTION  BY  THE  ATTORNEY  GENERAL  OR
 OTHER  LEGAL REPRESENTATIVES OF THE STATE OF THE RETURN OR REPORT OF ANY
 PERSON REQUIRED TO PAY THE STATE ASSESSMENT FEE WHO SHALL  BRING  ACTION
 TO  REVIEW  THE  STATE  ASSESSMENT FEE BASED THEREON, OR AGAINST WHOM AN
 ACTION OR PROCEEDING UNDER THIS CHAPTER  HAS  BEEN  RECOMMENDED  BY  THE
 COMMISSIONER  OR  THE  ATTORNEY  GENERAL  OR HAS BEEN INSTITUTED, OR THE
 INSPECTION OF THE RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY  THE
 COMPTROLLER  OR DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPART-
 MENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF  ANY
 STATE  ASSESSMENT FEE PAID BY A PERSON REQUIRED TO PAY THE STATE ASSESS-
 MENT FEE UNDER THIS ARTICLE. PROVIDED, FURTHER, NOTHING IN THIS  SECTION
 SHALL  BE  CONSTRUED  TO  PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS THE
 COMMISSIONER DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDEN-
 TIFYING INFORMATION OF THOSE PERSONS REQUIRED TO  PAY  STATE  ASSESSMENT
 FEE UNDER THIS ARTICLE.
   (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY REQUIRE OR PERMIT ANY OR
 ALL PERSONS LIABLE FOR ANY STATE ASSESSMENT FEE IMPOSED BY THIS ARTICLE,
 TO  MAKE  PAYMENT TO BANKS, BANKING HOUSES OR TRUST COMPANIES DESIGNATED
 BY THE COMMISSIONER AND TO FILE RETURNS WITH SUCH BANKS, BANKING  HOUSES
 OR  TRUST COMPANIES AS AGENTS OF THE COMMISSIONER, IN LIEU OF PAYING ANY
 SUCH STATE ASSESSMENT FEE DIRECTLY TO  THE  COMMISSIONER.  HOWEVER,  THE
 COMMISSIONER  SHALL  DESIGNATE  ONLY SUCH BANKS, BANKING HOUSES OR TRUST
 COMPANIES AS ARE ALREADY DESIGNATED BY THE COMPTROLLER  AS  DEPOSITORIES
 PURSUANT TO SECTION TWELVE HUNDRED EIGHTY-EIGHT OF THIS CHAPTER.
   (C) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
 THE  COMMISSIONER MAY PERMIT THE SECRETARY OF THE TREASURY OF THE UNITED
 STATES OR SUCH SECRETARY'S DELEGATE, OR THE AUTHORIZED REPRESENTATIVE OF
 EITHER SUCH OFFICER, TO INSPECT ANY RETURN FILED UNDER THIS ARTICLE,  OR
 MAY  FURNISH TO SUCH OFFICER OR SUCH OFFICER'S AUTHORIZED REPRESENTATIVE
 AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY SUCH  PERSON  WITH  INFORMATION
 CONCERNING  AN  ITEM  CONTAINED  IN ANY SUCH RETURN, OR DISCLOSED BY ANY
 INVESTIGATION OF LIABILITY UNDER THIS ARTICLE, BUT SUCH PERMISSION SHALL
 BE GRANTED OR SUCH INFORMATION FURNISHED ONLY IF THE LAWS OF THE  UNITED
 STATES  GRANT  SUBSTANTIALLY  SIMILAR  PRIVILEGES TO THE COMMISSIONER OR
 OFFICER OF THIS STATE CHARGED  WITH  THE  ADMINISTRATION  OF  THE  STATE
 ASSESSMENT  FEE IMPOSED BY THIS ARTICLE, AND ONLY IF SUCH INFORMATION IS

 S. 2009--C                         122                        A. 3009--C
 
 TO BE USED FOR PURPOSES OF TAX ADMINISTRATION ONLY; AND PROVIDED FURTHER
 THE COMMISSIONER MAY FURNISH TO THE COMMISSIONER OF INTERNAL REVENUE  OR
 SUCH  COMMISSIONER'S  AUTHORIZED REPRESENTATIVE SUCH RETURNS FILED UNDER
 THIS ARTICLE AND OTHER TAX INFORMATION, AS SUCH COMMISSIONER MAY CONSID-
 ER  PROPER,  FOR  USE IN COURT ACTIONS OR PROCEEDINGS UNDER THE INTERNAL
 REVENUE CODE, WHETHER CIVIL OR CRIMINAL, WHERE A WRITTEN REQUEST  THERE-
 FOR  HAS  BEEN MADE TO THE COMMISSIONER BY THE SECRETARY OF THE TREASURY
 OF THE UNITED STATES OR SUCH SECRETARY'S DELEGATE, PROVIDED THE LAWS  OF
 THE UNITED STATES GRANT SUBSTANTIALLY SIMILAR POWERS TO THE SECRETARY OF
 THE  TREASURY  OF  THE  UNITED  STATES OR HIS OR HER DELEGATE. WHERE THE
 COMMISSIONER HAS SO AUTHORIZED USE OF RETURNS AND OTHER  INFORMATION  IN
 SUCH  ACTIONS  OR  PROCEEDINGS, OFFICERS AND EMPLOYEES OF THE DEPARTMENT
 MAY TESTIFY IN SUCH ACTIONS OR PROCEEDINGS IN RESPECT TO SUCH RETURNS OR
 OTHER INFORMATION.
   (D) RETURNS AND REPORTS FILED UNDER THIS ARTICLE  SHALL  BE  PRESERVED
 FOR  THREE YEARS AND THEREAFTER UNTIL THE COMMISSIONER ORDERS THEM TO BE
 DESTROYED.
   (E) (1) ANY OFFICER OR EMPLOYEE OF THE STATE  WHO  WILLFULLY  VIOLATES
 THE  PROVISIONS  OF  SUBDIVISION  (A) OF THIS SECTION SHALL BE DISMISSED
 FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE FOR  A  PERIOD
 OF FIVE YEARS THEREAFTER.
   (2)  CROSS-REFERENCE: FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN
 OF THIS CHAPTER.
   § 1297. PRACTICE AND PROCEDURE. THE PROVISIONS OF ARTICLE TWENTY-SEVEN
 OF THIS CHAPTER SHALL APPLY WITH RESPECT TO THE  ADMINISTRATION  OF  AND
 PROCEDURE WITH RESPECT TO THE STATE ASSESSMENT FEE IMPOSED BY THIS ARTI-
 CLE  IN  THE  SAME  MANNER  AND WITH THE SAME FORCE AND EFFECT AS IF THE
 LANGUAGE OF SUCH ARTICLE TWENTY-SEVEN HAD BEEN INCORPORATED IN FULL INTO
 THIS ARTICLE AND HAD EXPRESSLY REFERRED  TO  THE  STATE  ASSESSMENT  FEE
 UNDER  THIS  ARTICLE,  EXCEPT  TO  THE EXTENT THAT ANY SUCH PROVISION IS
 EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS NOT  RELEVANT
 TO THIS ARTICLE.
   § 1298.  DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, FEES, INTEREST
 AND PENALTIES COLLECTED OR RECEIVED BY THE COMMISSIONER UNDER THIS ARTI-
 CLE  SHALL  BE  DEPOSITED  AND DISPOSED OF PURSUANT TO THE PROVISIONS OF
 SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
   § 19. The tax law is amended by adding a new section 1822 to  read  as
 follows:
   §  1822.  VIOLATION  OF  THE  STATE  ASSESSMENT  FEE ON TRANSPORTATION
 NETWORK COMPANY PREARRANGED TRIPS. ANY WILLFUL ACT OR  OMISSION  BY  ANY
 PERSON  THAT CONSTITUTES A VIOLATION OF ANY PROVISION OF ARTICLE TWENTY-
 NINE-B OF THIS CHAPTER SHALL CONSTITUTE A MISDEMEANOR.
   § 20. Section 1825 of the tax law, as amended by section 89 of part  A
 of chapter 59 of the laws of 2014, is amended to read as follows:
   §  1825.  Violation  of secrecy provisions of the tax law.--Any person
 who violates the provisions of subdivision (b)  of  section  twenty-one,
 subdivision one of section two hundred two, subdivision eight of section
 two  hundred  eleven, subdivision (a) of section three hundred fourteen,
 subdivision one or two of section  four  hundred  thirty-seven,  section
 four  hundred  eighty-seven,  subdivision  one  or  two  of section five
 hundred fourteen, subsection (e) of section  six  hundred  ninety-seven,
 subsection  (a)  of section nine hundred ninety-four, subdivision (a) of
 section eleven hundred forty-six, section twelve  hundred  eighty-seven,
 SECTION  TWELVE  HUNDRED NINETY-SIX, subdivision (a) of section fourteen
 hundred eighteen, subdivision (a) of section fifteen  hundred  eighteen,
 subdivision  (a)  of section fifteen hundred fifty-five of this chapter,

 S. 2009--C                         123                        A. 3009--C
 
 and subdivision (e) of section 11-1797 of the administrative code of the
 city of New York shall be guilty of a misdemeanor.
   §  21. 1. For purposes of this section, transportation network company
 shall mean a  transportation  network  company  as  defined  by  article
 forty-four-B of the vehicle and traffic law.
   2.  There  is  hereby  established  the  New York State Transportation
 Network Company Accessibility Task Force to analyze and advise on how to
 maximize effective and integrated transportation  services  for  persons
 with  disabilities in the transportation network company market. The New
 York State Transportation Network Company Accessibility Task Force shall
 consist of eleven members. Two members of the New York State Transporta-
 tion Network Company Accessibility Task Force shall be appointed by  the
 speaker  of  the assembly. Two members of the New York State Transporta-
 tion Network Company Accessibility Task Force shall be appointed by  the
 temporary  president  of the senate. Seven members of the New York State
 Transportation  Network  Company  Accessibility  Task  Force  shall   be
 appointed  by the governor and shall include, but not be limited to, two
 representatives of groups who serve persons with  disabilities  and  two
 representatives  from  a  transportation  network  company. The governor
 shall designate two chairpersons to the New  York  State  Transportation
 Network Company Accessibility Task Force.
   3.  The  New  York  State Transportation Network Company Accessibility
 Task Force shall study the demand responsive transportation  marketplace
 and shall, in addition to any responsibilities assigned by the governor:
 (a)  conduct a needs assessment concerning the demand for demand respon-
 sive  accessible  transportation;  (b)  conduct  a  resource  assessment
 concerning  the availability of accessible demand responsive transporta-
 tion services for persons with disabilities; (c) identify  opportunities
 for,  and barriers to, increasing accessible demand responsive transpor-
 tation service for persons with mobility disabilities; (d) propose stra-
 tegies  for  increasing  accessible  demand  responsive   transportation
 service  for  persons with disabilities; and (e) any other issues deter-
 mined important to the  task  force  in  establishing  a  recommendation
 pursuant to subdivision five of this section.
   4.  The  New  York  State Transportation Network Company Accessibility
 Task Force shall hold public hearings and  provide  an  opportunity  for
 public  comment  on  the activities described in subdivision two of this
 section.
   5. The New York State  Transportation  Network  Company  Accessibility
 Task  Force  shall complete a report addressing the activities described
 in subdivision two of this section and make a recommendation,  supported
 by  such  activities, recommending the amount of accessibility necessary
 for adequate transportation for disabled passengers in order to  utilize
 such  services  and  present such findings at a public meeting where its
 members shall accept such report, pursuant to majority vote of the  task
 force,  and  present  such  report  to  the governor, the speaker of the
 assembly and the temporary president of the senate, and make such report
 publicly available for review on or before January first,  two  thousand
 nineteen.
   6.  Upon  making  the  report  described  in  subdivision five of this
 section, the New York State Transportation Network Company Accessibility
 Task Force shall be deemed dissolved.
   § 22. 1. For purposes of this section, transportation network  company
 ("TNC")  and  TNC  driver  shall have the same meaning as such terms are
 defined by article 44-B of the vehicle and  traffic  law.  Region  shall

 S. 2009--C                         124                        A. 3009--C
 
 mean  one or more of the following named areas comprised of the counties
 indicated:
   (a)  Western  New  York:  Allegany, Cattaraugus, Chautauqua, Erie, and
 Niagara counties;
   (b) Finger Lakes: Genesee, Livingston, Monroe, Ontario, Orleans, Sene-
 ca, Wayne, Wyoming, and Yates counties;
   (c) Southern Tier:  Broome,  Chemung,  Chenango,  Delaware,  Schuyler,
 Steuben, Tioga, and Tompkins counties;
   (d)  Central New York: Cayuga, Cortland, Madison, Onondaga, and Oswego
 counties;
   (e) Mohawk Valley: Fulton, Herkimer, Montgomery, Oneida,  Otsego,  and
 Schoharie counties;
   (f)  North  Country:  Clinton,  Essex,  Franklin, Hamilton, Jefferson,
 Lewis, and St. Lawrence counties;
   (g) Capital Region: Albany, Columbia,  Greene,  Rensselaer,  Saratoga,
 Schenectady, Warren, and Washington counties;
   (h)  Mid-Hudson: Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster,
 and Westchester counties; and
   (i) Long Island: Nassau, and Suffolk counties.
   2. (a) There is hereby established the New York  State  Transportation
 Network Company Review Board.  The board shall consist of 16 members who
 shall be selected as follows:
   (i)  one shall be the commissioner of the department of motor vehicles
 or his or her designee who shall serve as the chairperson;
   (ii) one shall be the superintendent of the  department  of  financial
 services or his or her designee;
   (iii)  one shall be the commissioner of the department of labor or his
 or her designee;
   (iv) one shall be the superintendent of the New York state  police  or
 his or her designee;
   (v)  one shall be the commissioner of the New York state department of
 economic development or his or her designee;
   (vi) eleven shall be appointed by  the  governor;  provided,  however,
 that  one shall be a representative of the New York black car operators'
 injury compensation fund inc., one shall be a representative of a trans-
 portation network company, and all regions as provided for  in  subdivi-
 sion 1 of this section shall be represented;
   (vii) three of such representatives of regions shall be appointed upon
 recommendation of the temporary president of the senate; and
   (viii)  three  of  such  representatives of regions shall be appointed
 upon recommendation of the speaker of the assembly.
   (b) The regional members appointed shall represent cities with a popu-
 lation over one hundred thousand and a county contained within a  region
 as  provided  for  in  subdivision 1 of this section; provided, however,
 that no two members shall represent the same region.  Such cities  shall
 not include a city with a population of one million or more.
   3.  The  New  York  state  transportation network company review board
 shall review issues related to the general operation of TNCs within  the
 state. Such issues shall include, but not be limited to: (a) TNC licens-
 ing;  (b)  TNC Driver permitting; (c) geographic operation; (d) consumer
 protection; (e) economic impact; (f) anti-discrimination;  (g)  workers'
 compensation;  (h)  local  government related impact; (i) public safety;
 (j) surge pricing; and (k) any other issue deemed appropriate and proper
 by the board.
   4. The New York state  transportation  network  company  review  board
 shall  hold no more than four public hearings and provide an opportunity

 S. 2009--C                         125                        A. 3009--C
 
 for the public, local government officials, and other interested parties
 to comment on areas pertinent to the activities of the  board.  The  New
 York  state  transportation  network company review board shall complete
 and submit a comprehensive report addressing the activities described in
 subdivision  three  of  this section on or before January 1, 2019.  Upon
 formal adoption by the review board, such report shall be  presented  to
 the governor, the speaker of the assembly and the temporary president of
 the  senate.  Upon  the  presentation of such report, the New York state
 transportation network review board shall be deemed dissolved.
   § 23. Severability clause. If any provision of this act or the  appli-
 cation  thereof  is held invalid, such invalidity shall not affect other
 provisions or applications of this act which can be given effect without
 the invalid provision or application, and to this end the provisions  of
 this act are declared to be severable.
   §  24.  Each agency that is designated to perform any function or duty
 pursuant to this act shall be authorized to establish  rules  and  regu-
 lations  for  the  administration  and  execution of such authority in a
 manner consistent with the provisions of this act and for the protection
 of the public, health, safety and welfare of persons within this state.
   § 25. The New York black car operators injury compensation fund,  inc.
 shall  complete a study on the impact of the inclusion of TNC drivers on
 such fund no later than ten months from the effective date of this act.
   § 26. This act shall take effect on the ninetieth day after  it  shall
 have  become  a  law;  provided  that the amendments to subdivision 1 of
 section 171-a of the tax law made by section fifteen of this  act  shall
 not  affect  the  expiration of such subdivision and shall expire there-
 with, when upon such date the provisions of section sixteen of this  act
 shall  take  effect; provided however that coverage provided pursuant to
 paragraph (b) of subdivision 1 of section 160-cc of the executive law as
 added by section eleven of this act shall be deemed  repealed  one  year
 from  the  effective  date  of this act; provided, further, that any TNC
 driver permitted to operate prior to the repeal of such paragraph  shall
 not see a reduction in coverage.
 
                                 PART BBB
 
   Section  1.  County-wide shared services property tax savings plan. 1.
 Notwithstanding the provisions of  the  municipal  home  rule  law,  the
 alternative  county  government  law,  or  any other general, special or
 local law to the contrary, the chief executive officer  of  each  county
 outside  of  a  city of one million or more shall prepare a property tax
 savings plan for shared, coordinated and efficient  services  among  the
 county, cities, towns and villages within such county.
   Such  plan  may include school districts, boards of cooperative educa-
 tional services, and special improvement districts within such county if
 the school district,  board  of  cooperative  educational  services,  or
 special improvement district has a representative on the shared services
 panel.
   2. a. There shall be a shared services panel in each county consisting
 of  the chief executive officer of the county, who shall serve as chair,
 and one representative from each city, town, and village in the county.
   b. The chief executive officer of each town, city and village shall be
 the representative to the shared services panel and shall be the  mayor,
 if a city or a village, or shall be the supervisor, if a town.
   c.  The  chief  executive  officer of the county may invite any school
 district, any board of  cooperative  educational  services,  and/or  any

 S. 2009--C                         126                        A. 3009--C
 
 special  improvement  district in the county to participate in the coun-
 ty-wide shared services property tax savings plan. Upon such invitation,
 the governing body of such school district, board of cooperative  educa-
 tional  services,  and/or a special improvement district may accept such
 invitation by selecting a representative  of  such  governing  body,  by
 majority vote, to serve as a member of the shared services panel.
   d.  In the development of the county-wide shared services property tax
 savings plan, the chief executive officer of the county shall  regularly
 consult  with, and take recommendations from, all the representatives of
 the shared services panel, as well as with and from  the  representative
 of  each collective bargaining unit of the county and the cities, towns,
 and villages as well as  from  the  representative  of  each  collective
 bargaining  unit  of any participating school district, board of cooper-
 ative educational services and special improvement district.
   3. Public input, as well as input from  civic,  business,  labor,  and
 community leaders, shall be accepted by the chief executive officer, the
 county  legislative  body  and the shared services panel on the proposed
 county-wide shared services property tax  savings  plan.  To  facilitate
 such  input,  three or more public hearings shall be arranged to be held
 within the county. All such public hearings shall be conducted prior  to
 the  submission  of the county-wide shared services property tax savings
 plan to a vote of the shared services panel, and public  notice  of  all
 such  hearings  shall  be provided at least one week prior in the manner
 prescribed in subdivision 1 of section 104 of the public  officers  law.
 Civic, business, labor, and community leaders, as well as members of the
 public,  shall  be  permitted  to  provided public testimony at any such
 hearings.
   4. a. Such property tax savings plan shall contain new recurring prop-
 erty tax savings through actions such as, but not limited to, the elimi-
 nation of duplicative services; shared services, such as joint  purchas-
 ing, shared highway equipment, shared storage facilities, shared plowing
 services, and energy and insurance purchasing cooperatives; reduction in
 back   office   administrative  overhead;  and  better  coordination  of
 services.
   b. The chief executive officer of the county shall submit such proper-
 ty tax savings plan to the county legislative body no later than  August
 first,  two  thousand seventeen. Such property tax savings plan shall be
 accompanied by a  certification  as  to  the  accuracy  of  the  savings
 contained therein.
   c.  The  county legislative body shall review and consider the county-
 wide shared services plan submitted to it in accordance with paragraph b
 of this subdivision. A majority of the members of such body may issue an
 advisory report making recommendations as deemed  necessary.  The  chief
 executive  officer  may  make  modifications  to  the plan based on such
 recommendations. If modifications are made by the chief executive  offi-
 cer, he or she shall produce an updated certification as to the accuracy
 of the savings contained therein.
   d.  The  county  shared  services panel shall consider the county-wide
 shared services tax savings plan. A majority vote of the panel shall  be
 required for approval of such plan, provided however that each member of
 the  panel  may,  prior to the panel-wide vote, cause to be removed from
 the plan any proposed action that affects the unit of  local  government
 represented  by  the  respective  member. Written notice of such removal
 shall be provided to the chief executive officer of the county prior  to
 the panel-wide vote on the plan.

 S. 2009--C                         127                        A. 3009--C
 
   e.  If  a  county  does  not  achieve  an  approved county-wide shared
 services property tax savings plan by the deadlines required  for  2017,
 then  it  shall release to the public a report on the proposal, the vote
 of the panel which vote shall require each panel member, in  writing  to
 state  the  reason for such vote.  The county shall then follow the same
 procedures defined in this section to attempt  to  produce  an  approved
 county-wide  shared  services property tax savings plan by the deadlines
 required for 2018.
   5. a. Upon approval of the shared services panel, the chief  executive
 officer  of  the  county  shall finalize the county-wide shared services
 property tax savings plan and shall transmit  to  the  director  of  the
 division  of the budget a certification of the plan and its property tax
 savings plan.  The chief executive officer of the county shall  finalize
 any  such approved county-wide shared services property tax savings plan
 no later than September fifteenth, two thousand seventeen, and any  such
 plan  shall  be  publicly  disseminated  to residents of the county in a
 concise, clear, and coherent manner using words with common and everyday
 meanings.
   b. The beginning of the plan publicly disseminated shall  contain  the
 information and shall be in the form set forth hereinbelow:
 
       County-wide Shared Services Property Tax Savings Plan Summary
 
 Row 1     Participating Cities   (insert number of cities in the
                                  county as well as the number and list
                                  of such cities with a representative
                                  on the panel who voted on such plan)
 Row 2     Participating Towns    (insert number of towns in the county
                                  as well as the number and list of
                                  such towns with a representative
                                  on the panel who voted on such plan)
 Row 3     Participating Villages (insert number of villages in the
                                  county as well as the number and list of
                                  such villages with a representative
                                  on the panel who voted on such plan)
 Row 4     Participating school   (insert number of school districts,
           districts, BOCES, and  BOCES, and special improvement
           special improvement    districts in the county as
           districts              well as the number and list of
                                  such school districts, BOCES, and
                                  special improvement districts
                                  with a representative on the
                                  panel who voted on such plan)
 Row 5     2017 Local             (insert sum total of property
           Government property    taxes levied in the year
           taxes                  2017 by the county, cities, towns,
                                  villages, school districts,
                                  BOCES, and special improvement
                                  districts within such county)
 Row 6     2017 Participating     (insert sum total of property
           Entities property      taxes levied in the year 2017 by the
           taxes                  county, any cities, towns, villages,
                                  school districts, BOCES, and
                                  special improvements districts
                                  identified as participating in
                                  the panel in rows one through

 S. 2009--C                         128                        A. 3009--C

                                  four above)
 Row 7     Total Anticipated      (insert sum total of net
           Savings                savings in such plan certified
                                  as being anticipated in calendar
                                  year 2018, calendar year 2019,
                                  and annually thereafter)
 Row 8     Anticipated Savings    (insert sum total of net
           as a Percentage of     savings in such plan
           Participating          certified as being anticipated
           Entities property      in calendar year 2018 as a
           taxes                  percentage of the sum total in
                                  Row 6, calendar year 2019
                                  as a percentage of the sum total
                                  in Row 6, and annually
                                  thereafter as a percentage of the
                                  sum total in Row 6)
 Row 9     Anticipated            (insert the amount of the
           Savings to the         savings that the average
           Average Taxpayer       taxpayer in the county
                                  will realize in calendar year
                                  2018, calendar year 2019,
                                  and annually thereafter if the
                                  net savings certified
                                  in the plan are realized)
 Row 10    Anticipated            (insert the percentage amount a
           Costs/Savings to       homeowner can expect his or her
           the Average            property taxes to increase or
           Homeowner              decrease in calendar year 2018,
                                  calendar year 2019, and
                                  annually thereafter if
                                  the net savings certified in the
                                  plan are realized)
 Row 11    Anticipated            (insert the percentage amount a
           Costs/Savings to       business can expect its property
           the Average            taxes to increase or decrease in
           Business               calendar year 2018, calendar year
                                  2019, and annually thereafter if
                                  the net savings certified in the
                                  plan are realized)
   c.  The  chief  executive officer of the county shall conduct a public
 presentation of the plan no later than October 15, 2017.  Public  notice
 of such public presentation shall be provided at least one week prior in
 the  manner  prescribed  in  subdivision  1 of section 104 of the public
 officers law.
   d. Any such finalized property tax savings plan which would  have  the
 effect of transferring or abolishing a function or duty of the county or
 of  the  cities, towns, villages, districts or other units of government
 wholly contained in the county, shall not become  operative  unless  and
 until  it  is approved in accordance with subdivision (h) of section one
 of article nine of the state constitution.
   6. a. If the county-wide property  tax  savings  plan  shall  fail  to
 obtain  the approval of the shared services panel, voting on the plan in
 accordance with this section, the chief executive officer of the  county
 shall  resubmit  such  plan  to the shared services panel, in accordance
 with the procedures established for  first  consideration  of  the  plan

 S. 2009--C                         129                        A. 3009--C
 
 outlined by this section, no later than August first, two thousand eigh-
 teen.
   b.  Any proposed county-wide shared services property tax savings plan
 prepared for reconsideration by the shared services panel, shall  follow
 the  same  procedures  prescribed in this section for original consider-
 ation in two thousand seventeen. No county-wide shared services property
 tax savings plan shall be deemed approved, or may be finalized,  without
 approval of such plan by the shared services panel.
   c.  If  the  shared  services  panel approves the proposed county-wide
 shared services property tax savings plan for 2018, the chief  executive
 officer  of  the  county  shall  finalize  any such approved county-wide
 shared services property  tax  savings  plan  no  later  than  September
 fifteenth,  two  thousand  eighteen, and any such plan shall be publicly
 disseminated to residents of the county in a concise, clear, and  coher-
 ent manner using words with common and everyday meanings.
   d.  The  beginning of the plan publicly disseminated shall contain the
 information and shall be in the form set forth hereinbelow:
       County-wide Shared Services Property Tax Savings Plan Summary
 
 Row 1     Participating Cities      (insert number of cities in the
                                     county as well as the number
                                     and list of such cities with
                                     a representative on the
                                     panel who voted on such plan)
 Row 2     Participating Towns       (insert number of towns in the
                                     county as well as the number
                                     and list of such towns with
                                     a representative on the
                                     panel who voted on such plan)
 Row 3     Participating Villages    (insert number of villages in the
                                     county as well as the number
                                     and list of such villages with
                                     a representative on the
                                     panel who voted on such plan)
 Row 4     Participating school      (insert number of school
           districts, BOCES, and     districts, BOCES, and special
           special improvement       improvement
           districts                 districts in the county
                                     as well as the number
                                     and list of such school districts,
                                     BOCES, and special improvement
                                     districts with a representative
                                     one the panel who voted on
                                     such plan)
 Row 5     2018 Local Government     (insert sum total of property taxes
           property                  levied in the year 2018 by the
           taxes                     county, cities, towns, villages,
                                     school districts, BOCES, and
                                     special improvement districts
                                     within such county)
 Row 6     2018 Participating        (insert sum total of property taxes
           Entities property         levied in the year 2018 by the
           taxes                     county, any cities, towns, villages,
                                     school districts, BOCES,
                                     and special improvement districts
                                     identified as participating

 S. 2009--C                         130                        A. 3009--C
 
                                     in the panel in
                                     rows one through four above)
 Row 7     Total Anticipated         (insert sum total of net savings in
           Savings                   such plan certified as being
                                     anticipated in calendar year 2019,
                                     calendar year 2020, and annually
                                     thereafter)
 Row 8     Anticipated Savings       (insert sum total of net savings in
           as a Percentage           such plan certified as being
           of Participating          anticipated in calendar year 2019
           Entities property         as a percentage of the
           taxes                     sum total in Row 6, calendar
                                     year 2020 as a percentage of the
                                     sum total in Row 6, and annually
                                     thereafter as a percentage
                                     of the sum total in Row 6)
 Row 9     Anticipated Savings       (insert the amount of
           to the Average            the savings that the average
           Taxpayer                  taxpayer in the county will
                                     realize in calendar year 2019,
                                     calendar year 2020, and
                                     annually thereafter if the net
                                     savings certified in the plan
                                     are realized)
 Row 10    Anticipated               (insert the percentage amount a
           Costs/Savings to          homeowner can expect his or her
           the Average               property taxes to increase or
           Homeowner                 decrease in calendar year
           2019, calendar year
                                     2020, and annually thereafter if
                                     the net savings certified in the
                                     plan are realized)
 Row 11    Anticipated               (insert the percentage amount a
           Costs/Savings to          business can expect its property
           the Average               taxes to increase or decrease in
           Business                  calendar year 2019, calendar year
                                     2020, and annually thereafter if
                                     the net savings certified in the
                                     plan are realized)
   e.  The  chief  executive officer of the county shall conduct a public
 presentation of the plan no later than October 15, 2018.  Public  notice
 of such public presentation shall be provided at least one week prior in
 the  manner  prescribed  in  subdivision  1 of section 104 of the public
 officers law.
   f. Any such finalized property tax savings plan which would  have  the
 effect of transferring or abolishing a function or duty of the county or
 of  the  cities, towns, villages, districts or other units of government
 wholly contained in the county, shall not become  operative  unless  and
 until  it  is approved in accordance with subdivision (h) of section one
 of article nine of the state constitution.
   7. For the purposes of this part "chief executive officer"  means  the
 county executive, county manager or other chief executive of the county,
 or where none, the chair of the county legislative body.
   8.  Each  county  plan  may  be eligible for one-time funding to match
 savings in such plan, subject to available appropriation. The  secretary
 of  state  shall develop an application, approved by the director of the

 S. 2009--C                         131                        A. 3009--C
 
 budget, with any necessary requirements to receive such  matching  fund-
 ing.  Savings that are actually and demonstrably realized by the partic-
 ipating local governments are eligible for matching funding. For actions
 that  are a part of an approved plan finalized in 2017, savings from new
 actions implemented on or after January 1, 2018 are eligible for  match-
 ing  funding.  For actions that are a part of an approved plan finalized
 in 2017, savings achieved from January 1, 2018 through December 31, 2018
 are eligible for matching funding. For actions that are  a  part  of  an
 approved plan finalized in 2018, savings from new actions implemented on
 or  after January 1, 2019 are eligible for matching funding. For actions
 that are a part of an approved plan finalized in 2018, savings  achieved
 from January 1, 2019 through December 31, 2019 are eligible for matching
 funding.  Only  net  savings  between  local governments for each action
 would be eligible for matching funding. Savings from internal  efficien-
 cies  or  any  other  actions  taken  by  a local government without the
 participation of another local government are not eligible for  matching
 funding.  Each county and all of the local governments within the county
 that are part of any action to be implemented as part  of  the  approved
 plan  must  collectively apply for the matching funding and agree on the
 distribution and use of any matching funding in  order  to  qualify  for
 matching funding.
   9. Where the implementation of any component of such finalized proper-
 ty  tax savings plan is, by any other general or special law, subject to
 a public hearing, a mandatory  or  permissive  referendum,  consents  of
 governmental agencies, or other requirements applicable to the making of
 contracts, then implementation of such component shall be conditioned on
 compliance with such requirements.
   10.  If  any clause, sentence, paragraph, subdivision, section or part
 of this act shall be adjudged by any court or competent jurisdiction  to
 be  invalid,  such  judgment shall not affect, impair, or invalidate the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence, paragraph,  subdivision,  section  or  part  thereof  directly
 involved  in  the  controversy  in  which  such judgment shall have been
 rendered. It is hereby declared to be the intent of the legislature that
 this act would have been enacted if such invalid provisions had not been
 included herein.
   § 2. School district and board  of  cooperative  educational  services
 participation in county-wide shared services property tax savings plans.
 Notwithstanding  any  provision  of  the  education  law,  or  any other
 provision of law, rule  or  regulation,  to  the  contrary,  any  school
 district or board of cooperative educational services may participate in
 a  county-wide  shared  services  property  tax savings plan established
 pursuant to the provisions of this chapter, and may further  participate
 in  any  of  the  activities  listed  in paragraph a of subdivision 4 of
 section one of this act  with  any  participating  county,  town,  city,
 village,  special  improvement district, school district and/or board of
 cooperative  educational  services  participating  in  such  county-wide
 shared services property tax saving plan.
   § 3. This act shall take effect immediately.
 
                                 PART CCC
 
   Section  1. The opening paragraph of subdivision (h) of section 121 of
 chapter 261 of the laws of 1988, amending  the  state  finance  law  and
 other  laws relating to the New York state infrastructure trust fund, as

 S. 2009--C                         132                        A. 3009--C
 
 amended by section 2 of part Q of chapter 58 of the  laws  of  2015,  is
 amended to read as follows:
   The  provisions  of  [section] SECTIONS sixty-two through sixty-six of
 this act shall expire APRIL FIFTEENTH, TWO THOUSAND EIGHTEEN,  PROVIDED,
 HOWEVER,  THAT  IF  THE  STATEWIDE DISPARITY STUDY REGARDING THE PARTIC-
 IPATION OF  MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISES  IN  STATE
 CONTRACTS  REQUIRED PURSUANT TO SUBDIVISION ONE OF SECTION THREE HUNDRED
 TWELVE-A OF THE EXECUTIVE LAW IS COMPLETED AND DELIVERED TO THE GOVERNOR
 AND THE LEGISLATURE ON OR BEFORE JUNE THIRTIETH, TWO THOUSAND SEVENTEEN,
 THEN THE PROVISIONS OF SECTIONS SIXTY-TWO THROUGH SIXTY-SIX OF THIS  ACT
 SHALL   EXPIRE   on  December  thirty-first,  two  thousand  [seventeen]
 EIGHTEEN, except that:
   § 2. This act shall take effect immediately.
 
                                 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 PANTRIES. (1) 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 FAIR MARKET VALUE OF THE TAXPAYER'S  QUALIFIED  DONATIONS
 MADE  TO ANY ELIGIBLE FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED
 FIVE THOUSAND DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER  IN
 A PARTNERSHIP OR A SHAREHOLDER OF A NEW YORK S CORPORATION, THEN THE CAP
 IMPOSED  BY THE PRECEDING SENTENCE SHALL BE APPLIED AT THE ENTITY LEVEL,
 SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL PARTNERS OR SHAREHOLDERS  OF
 SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED FIVE THOUSAND DOLLARS.
   (2) ELIGIBLE FARMER. FOR PURPOSES OF THIS SUBSECTION, THE TERM "ELIGI-
 BLE FARMER" MEANS A 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
 THAT 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 THAT 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.
   (3) QUALIFIED DONATION. FOR PURPOSES  OF  THIS  SUBSECTION,  THE  TERM
 "QUALIFIED  DONATION" MEANS A DONATION OF ANY APPARENTLY WHOLESOME FOOD,
 AS DEFINED IN SECTION 170(E)(3)(C)(VI) OF  THE  INTERNAL  REVENUE  CODE,
 GROWN  OR PRODUCED WITHIN THIS STATE, BY AN ELIGIBLE FARMER TO AN ELIGI-
 BLE FOOD PANTRY.
   (4) ELIGIBLE FOOD PANTRY. FOR PURPOSES OF THIS  SUBSECTION,  THE  TERM
 "ELIGIBLE  FOOD PANTRY" MEANS ANY FOOD PANTRY, FOOD BANK, OR OTHER EMER-
 GENCY FOOD PROGRAM OPERATING WITHIN THIS STATE THAT  HAS  QUALIFIED  FOR
 TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE.
   (5)   DETERMINATION  OF  FAIR  MARKET  VALUE.  FOR  PURPOSES  OF  THIS
 SUBSECTION, TO DETERMINE THE FAIR MARKET VALUE OF  APPARENTLY  WHOLESOME

 S. 2009--C                         133                        A. 3009--C
 
 FOOD  DONATED  TO AN ELIGIBLE FOOD PANTRY, THE STANDARDS SET FORTH UNDER
 SECTION 170(E)(3)(C)(V) OF THE INTERNAL REVENUE CODE SHALL APPLY.
   (6)  RECORD  OF  DONATION.  TO CLAIM A CREDIT UNDER THIS SUBSECTION, A
 TAXPAYER MUST GET AND KEEP A RECEIPT FROM THE ELIGIBLE FOOD PANTRY SHOW-
 ING: (I) THE NAME OF  THE  ELIGIBLE  FOOD  PANTRY;  (II)  THE  DATE  AND
 LOCATION  OF  THE  QUALIFIED  DONATION;  AND (III) A REASONABLY DETAILED
 DESCRIPTION OF THE QUALIFIED DONATION. A LETTER OR OTHER WRITTEN  COMMU-
 NICATION  FROM  THE  ELIGIBLE  FOOD  PANTRY ACKNOWLEDGING RECEIPT OF THE
 CONTRIBUTION AND CONTAINING THE INFORMATION IN SUBPARAGRAPHS (I),  (II),
 AND (III) OF THIS PARAGRAPH WILL SERVE AS A RECEIPT.
   (7)  APPLICATION OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT UNDER
 THIS SUBSECTION AGAINST THE TAX IMPOSED BY THIS ARTICLE. HOWEVER, IF THE
 AMOUNT OF CREDIT ALLOWED UNDER THIS  SUBSECTION  FOR  ANY  TAXABLE  YEAR
 EXCEEDS  THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS WILL BE TREATED AS
 AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH  THE
 PROVISIONS  OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE. PROVIDED,
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION SIX HUNDRED  EIGHT-
 Y-EIGHT OF THIS ARTICLE NOTWITHSTANDING, NO INTEREST WILL BE PAID THERE-
 ON.
   §  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
 PANTRIES CREDIT UNDER                SUBDIVISION FIFTY-TWO OF
 SUBSECTION (N-2)                     SECTION TWO HUNDRED TEN-B
   § 3. Subsection (c) of section 615 of the tax law is amended by adding
 a new paragraph 9 to read as follows:
   (9)  WITH  RESPECT TO A TAXPAYER WHO HAS CLAIMED THE FARM DONATIONS TO
 FOOD PANTRIES CREDIT PURSUANT TO SUBSECTION (N-2) OF SECTION SIX HUNDRED
 SIX OF THIS ARTICLE, THE TAXPAYER'S NEW YORK ITEMIZED  DEDUCTIONS  SHALL
 BE  REDUCED  BY  ANY  CHARITABLE  CONTRIBUTION  DEDUCTION  ALLOWED UNDER
 SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE CODE WITH RESPECT TO
 SUCH DONATIONS.
   § 4. 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 PANTRIES. (A) GENERAL. IN THE
 CASE OF A TAXPAYER THAT 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 FAIR MARKET VALUE OF THE TAXPAYER'S  QUALIFIED  DONATIONS
 MADE  TO ANY ELIGIBLE FOOD PANTRY DURING THE TAXABLE YEAR, NOT TO EXCEED
 FIVE THOUSAND DOLLARS PER TAXABLE YEAR. IF THE TAXPAYER IS A PARTNER  IN
 A  PARTNERSHIP,  THEN THE CAP IMPOSED BY THE PRECEDING SENTENCE SHALL BE
 APPLIED AT THE ENTITY LEVEL, SO THAT THE AGGREGATE CREDIT ALLOWED TO ALL
 PARTNERS OF SUCH ENTITY IN THE TAXABLE YEAR DOES NOT EXCEED  FIVE  THOU-
 SAND DOLLARS.
   (B)  ELIGIBLE  FARMER.  FOR  PURPOSES  OF  THIS  SUBDIVISION, THE TERM
 "ELIGIBLE FARMER" MEANS A TAXPAYER WHOSE FEDERAL GROSS INCOME FROM FARM-
 ING 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 IN EXCESS OF  THIRTY  THOU-
 SAND  DOLLARS. FOR PURPOSES OF THIS PARAGRAPH, PAYMENTS FROM THE STATE'S
 FARMLAND PROTECTION PROGRAM, ADMINISTERED BY THE DEPARTMENT OF  AGRICUL-

 S. 2009--C                         134                        A. 3009--C
 
 TURE 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 APPARENTLY WHOLESOME  FOOD,  AS
 DEFINED  IN SECTION 170(E)(3)(C)(VI) OF THE INTERNAL REVENUE CODE, GROWN
 OR PRODUCED WITHIN THIS STATE, BY AN ELIGIBLE FARMER TO AN ELIGIBLE FOOD
 PANTRY.
   (D) ELIGIBLE FOOD PANTRY. FOR PURPOSES OF THIS SUBDIVISION,  THE  TERM
 "ELIGIBLE  FOOD PANTRY" MEANS ANY FOOD PANTRY, FOOD BANK, OR OTHER EMER-
 GENCY FOOD PROGRAM OPERATING WITHIN THIS STATE THAT  HAS  QUALIFIED  FOR
 TAX EXEMPTION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE.
   (E)  DETERMINATION OF FAIR MARKET VALUE. FOR PURPOSES OF THIS SUBDIVI-
 SION, TO DETERMINE THE FAIR MARKET VALUE OF  APPARENTLY  WHOLESOME  FOOD
 DONATED  TO  AN  ELIGIBLE  FOOD  PANTRY,  THE  STANDARDS SET FORTH UNDER
 SECTION 170(E)(3)(C)(V) OF THE INTERNAL REVENUE CODE SHALL APPLY.
   (F) RECORD OF DONATION. TO CLAIM A CREDIT UNDER  THIS  SUBDIVISION,  A
 TAXPAYER MUST GET AND KEEP A RECEIPT FROM THE ELIGIBLE FOOD PANTRY SHOW-
 ING:  (I)  THE  NAME  OF  THE  ELIGIBLE  FOOD  PANTRY; (II) THE DATE AND
 LOCATION OF THE QUALIFIED DONATION;  AND  (III)  A  REASONABLY  DETAILED
 DESCRIPTION  OF THE QUALIFIED DONATION. A LETTER OR OTHER WRITTEN COMMU-
 NICATION FROM THE ELIGIBLE FOOD  PANTRY  ACKNOWLEDGING  RECEIPT  OF  THE
 CONTRIBUTION  AND CONTAINING THE INFORMATION IN SUBPARAGRAPHS (I), (II),
 AND (III) OF THIS PARAGRAPH WILL SERVE AS A RECEIPT.
   (G) 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 AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
 IT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX
 TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED
 DOLLAR  MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH
 TAXABLE YEAR 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.
   § 5. Paragraph (b) of subdivision 9 of section 208 of the tax  law  is
 amended by adding a new subparagraph 22 to read as follows:
   (22)  THE AMOUNT OF ANY DEDUCTION FOR CHARITABLE CONTRIBUTIONS ALLOWED
 UNDER SECTION ONE HUNDRED SEVENTY OF THE INTERNAL REVENUE  CODE  TO  THE
 EXTENT  SUCH  CONTRIBUTIONS  ARE USED AS THE BASIS OF THE CALCULATION OF
 THE FARM DONATIONS TO FOOD PANTRIES CREDIT UNDER  SUBDIVISION  FIFTY-TWO
 OF SECTION TWO HUNDRED TEN-B OF THIS ARTICLE.
   § 6. This act shall take effect immediately.
 
                                 PART EEE
 
   Section 1. Subdivisions 1, 2, 3 and 4 of section 186-f of the tax law,
 as  added  by section 3 of part B of chapter 56 of the laws of 2009, are
 amended to read as follows:
   1. Definitions. As used in this section, where not  otherwise  specif-
 ically defined and unless a different meaning is clearly required:
   (a)  "Place  of  primary  use"  has  the  same meaning as that term is
 defined in paragraph twenty-six of subdivision  (b)  of  section  eleven
 hundred one of this chapter.
   (b) "Wireless communications customer" means mobile telecommunications
 customer  as  defined  in  subparagraph (i) of paragraph twenty-seven of

 S. 2009--C                         135                        A. 3009--C
 
 subdivision (b) of section eleven  hundred  one  of  this  chapter,  who
 contracts for or is the end user of wireless communications service.
   (c)  "Wireless  communications  device"  means  any  equipment used to
 access a wireless communications service.
   (d) "Wireless communications  service"  means  all  commercial  mobile
 services,  as  that term is defined in section 332(d) of title 47 of the
 United States Code, as amended from time to  time,  including,  but  not
 limited  to,  all  broadband  personal communications services, wireless
 radio telephone  services,  geographic  area  specialized  and  enhanced
 specialized  mobile  radio services, and incumbent-wide area specialized
 mobile radio licensees, which offer real time,  two-way  voice  or  data
 service  that  is  interconnected  with  the  public  switched telephone
 network  or  otherwise  provides  access  to  emergency   communications
 services.
   (e)  "Wireless  communications  service supplier" means a home service
 provider as defined in subparagraph (ii) of  paragraph  twenty-seven  of
 subdivision  (b) of section eleven hundred one of this chapter, provided
 that the home service provider provides wireless communications  service
 and has one or more wireless communications customers in New York state.
   (F)  "PREPAID  WIRELESS COMMUNICATIONS SELLER" MEANS A PERSON MAKING A
 RETAIL SALE OF PREPAID WIRELESS COMMUNICATIONS SERVICE.
   (G) "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.  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.
   (2) A SURCHARGE IS IMPOSED ON THE RETAIL SALE OF EACH PREPAID WIRELESS
 COMMUNICATIONS SERVICE, WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS
 SOLD THEREWITH, AT THE RATE OF NINETY CENTS PER RETAIL SALE. A SALE OF A
 PREPAID WIRELESS COMMUNICATIONS SERVICE 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.
   (b) [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 communi-
 cations  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]
 SURCHARGES  must be reported and paid to the commissioner on a quarterly
 basis on or before the [fifteenth] TWENTIETH day of the month  following

 S. 2009--C                         136                        A. 3009--C
 
 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.
   (c)  The  [surcharge] SURCHARGES must be added as a separate line item
 to bills furnished by a wireless communications service supplier to  its
 customers,  OR  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  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 AND PREPAID WIRELESS
 COMMUNICATIONS SELLER is entitled to retain, as an  administrative  fee,
 an  amount  equal to [two] THREE percent of fifty-eight and three-tenths
 percent of the total collections of the [surcharge]  SURCHARGES  imposed
 by this section, provided that the supplier OR SELLER files any required
 return and remits the surcharge due to the commissioner on or before its
 due date.
   3.  [Applicability  of  article  twenty-seven. For purposes of article
 twenty-seven of this chapter as applied to this section by  section  two
 hundred  seven-b of this article, the term "taxpayer" in article twenty-
 seven refers to a wireless communications service  supplier  subject  to
 this  section  or  a  wireless  communications  customer subject to this
 section, as the case may be, and the term "tax" in article  twenty-seven
 refers to the surcharge imposed by this section.
   4.  Exemptions. The state of New York and any of its agencies, instru-
 mentalities and political subdivisions are] EXEMPTION. LIFELINE  CONSUM-
 ERS  SHALL  BE  exempt  from  the [surcharge] SURCHARGES imposed by this
 section.
   4. APPLICABLE PROVISIONS. (A) EXCEPT AS  OTHERWISE  PROVIDED  IN  THIS
 SECTION, THE SURCHARGES IMPOSED UNDER THIS SECTION SHALL BE ADMINISTERED
 AND  COLLECTED BY THE COMMISSIONER IN A LIKE MANNER AS THE TAXES IMPOSED
 BY ARTICLE TWENTY-EIGHT OF THIS CHAPTER. ALL THE PROVISIONS  OF  ARTICLE
 TWENTY-EIGHT OF THIS CHAPTER, INCLUDING THE PROVISIONS RELATING TO DEFI-
 NITIONS, EXEMPTIONS, RETURNS, PERSONAL LIABILITY FOR THE TAX, COLLECTION
 OF  TAX FROM THE CUSTOMER, PAYMENT OF TAX, AND THE ADMINISTRATION OF THE
 TAXES IMPOSED BY SUCH ARTICLE, SHALL APPLY  TO  THE  SURCHARGES  IMPOSED
 UNDER  THE  AUTHORITY  OF THIS SECTION SO FAR AS THOSE PROVISIONS CAN BE
 MADE APPLICABLE TO THE SURCHARGES IMPOSED BY  THIS  SECTION,  WITH  SUCH
 MODIFICATIONS  AS  MAY  BE  NECESSARY  IN ORDER TO ADAPT THE LANGUAGE OF
 THOSE PROVISIONS TO  THE  SURCHARGES  IMPOSED  BY  THIS  SECTION.  THOSE
 PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
 OF  THOSE  PROVISIONS HAD BEEN SET FORTH IN FULL IN THIS SECTION, EXCEPT
 TO THE EXTENT THAT ANY OF THOSE PROVISIONS IS EITHER INCONSISTENT WITH A
 PROVISION OF THIS SECTION OR IS NOT RELEVANT TO THE SURCHARGE IMPOSED BY
 THIS SECTION. FOR PURPOSES OF THIS SECTION, ANY REFERENCE IN THIS  CHAP-
 TER  TO A TAX OR THE TAXES IMPOSED BY ARTICLE TWENTY-EIGHT OF THIS CHAP-
 TER SHALL BE DEEMED ALSO TO REFER TO  THE  SURCHARGES  IMPOSED  BY  THIS
 SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
   (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
 SION:

 S. 2009--C                         137                        A. 3009--C
 
   (1) THE EXEMPTIONS PROVIDED FOR IN SECTION ELEVEN HUNDRED  SIXTEEN  OF
 THIS CHAPTER, OTHER THAN THE EXEMPTIONS IN PARAGRAPHS ONE, TWO AND THREE
 OF  SUBDIVISION  (A)  OF THAT SECTION, SHALL NOT APPLY TO THE SURCHARGES
 IMPOSED BY THIS SECTION.
   (2)  THE  CREDIT PROVIDED IN SUBDIVISION (F) OF SECTION ELEVEN HUNDRED
 THIRTY-SEVEN OF THIS CHAPTER SHALL NOT APPLY TO THIS SECTION.
   § 2. Sections 308-a, 308-b, 308-c, 309-d, 308-e, 308-f, 308-g,  308-h,
 308-k,  308-l,  308-m,  308-n, 308-p, 308-q, 308-r, 308-s, 308-t, 308-u,
 308-v, 308-w, 308-x and 308-y of the county law are REPEALED.
   § 3. The tax law is amended by adding a new section 186-g to  read  as
 follows:
   § 186-G. WIRELESS COMMUNICATIONS SURCHARGE AUTHORIZED. 1. DEFINITIONS.
 AS  USED  IN  THIS SECTION, WHERE NOT OTHERWISE SPECIFICALLY DEFINED AND
 UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED, ALL OF  THE  DEFINITIONS
 OF  SECTION  ONE HUNDRED EIGHTY-SIX-F OF THIS ARTICLE SHALL APPLY TO THE
 SURCHARGES AUTHORIZED BY THIS SECTION.
   2. IMPOSITION OF SURCHARGE. (A) NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW TO THE CONTRARY, AND IN ADDITION TO ANY OTHER TAX OR FEE IMPOSED  BY
 THIS  CHAPTER  OR ANY OTHER LAW, A CITY HAVING A POPULATION OF A MILLION
 OR MORE, AND A COUNTY, OTHER THAN A COUNTY WHOLLY WITHIN  SUCH  A  CITY,
 ACTING  THROUGH  ITS  LOCAL  LEGISLATIVE  BODY, IS HEREBY AUTHORIZED AND
 EMPOWERED TO ADOPT AND  AMEND  LOCAL  LAWS,  ORDINANCES  OR  RESOLUTIONS
 IMPOSING A SURCHARGE WITHIN THE TERRITORIAL LIMITS OF SUCH CITY OR COUN-
 TY  TO  TAKE  EFFECT  ON OR AFTER DECEMBER FIRST, TWO THOUSAND SEVENTEEN
 THAT  SHALL  INCLUDE  BOTH  (I)  WIRELESS  COMMUNICATIONS  SERVICE,   AS
 DESCRIBED  IN  PARAGRAPH (B) OF THIS SUBDIVISION; AND (II) PREPAID WIRE-
 LESS COMMUNICATIONS SERVICE, AS  DESCRIBED  IN  PARAGRAPH  (C)  OF  THIS
 SUBDIVISION.
   (B)  SUCH  SURCHARGE  ON WIRELESS COMMUNICATIONS SERVICE PROVIDED TO A
 WIRELESS COMMUNICATIONS CUSTOMER WITH A PLACE OF PRIMARY USE IN  A  CITY
 OR  COUNTY  AUTHORIZED TO IMPOSE THE SURCHARGE BY THIS SUBDIVISION SHALL
 BE IMPOSED AT THE RATE OF THIRTY CENTS PER MONTH ON EACH WIRELESS COMMU-
 NICATIONS DEVICE IN SERVICE DURING ANY PART OF THE MONTH. THE  SURCHARGE
 MUST  BE  REFLECTED  AND  MADE PAYABLE ON BILLS RENDERED TO THE WIRELESS
 COMMUNICATIONS CUSTOMER FOR WIRELESS COMMUNICATIONS SERVICE.
   (C) SUCH SURCHARGE ON THE RETAIL SALE OF EACH PREPAID WIRELESS  COMMU-
 NICATIONS SERVICE, WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS SOLD
 THEREWITH,  SHALL BE IMPOSED AT THE RATE OF THIRTY CENTS PER RETAIL SALE
 WITHIN A CITY OR COUNTY AUTHORIZED  TO  IMPOSE  THE  SURCHARGE  BY  THIS
 SUBDIVISION.  A SALE OF A PREPAID WIRELESS COMMUNICATIONS SERVICE OCCURS
 IN SUCH CITY OR COUNTY IF THE SALE TAKES PLACE AT  A  SELLER'S  BUSINESS
 LOCATION  IN SUCH CITY OR COUNTY. 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 SUCH CITY OR COUNTY OR, IF
 THERE IS NO ITEM SHIPPED, AT THE PURCHASER'S  BILLING  ADDRESS  IN  SUCH
 CITY  OR  COUNTY,  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.
   3.  ANY  SUCH  LOCAL  LAW, ORDINANCE OR RESOLUTION ADOPTED PURSUANT TO
 THIS SECTION SHALL STATE THE AMOUNT OF THE SURCHARGES AND  THE  DATE  ON
 WHICH  BOTH  THE WIRELESS COMMUNICATIONS SERVICE SUPPLIER SHALL BEGIN TO
 ADD SUCH SURCHARGE TO THE BILLINGS OF  ITS  CUSTOMERS  AND  THE  PREPAID
 WIRELESS  COMMUNICATIONS  SELLER  SHALL  BEGIN TO COLLECT SUCH SURCHARGE
 FROM ITS CUSTOMERS. NO SUCH LOCAL LAW, ORDINANCE OR RESOLUTION SHALL  BE
 EFFECTIVE  UNLESS  A CERTIFIED COPY OF SUCH LAW, ORDINANCE OR RESOLUTION
 IS MAILED BY REGISTERED OR CERTIFIED MAIL TO THE COMMISSIONER IN ACCORD-

 S. 2009--C                         138                        A. 3009--C

 ANCE WITH THE PROVISIONS OF SUBDIVISIONS (D) AND (E) OF  SECTION  TWELVE
 HUNDRED TEN OF THIS CHAPTER.
   4.  EXEMPTION.  LIFELINE CONSUMERS SHALL BE EXEMPT FROM THE SURCHARGES
 IMPOSED BY THIS SECTION.
   5. THE SURCHARGES MUST BE REPORTED AND PAID TO THE COMMISSIONER  ON  A
 QUARTERLY  BASIS  ON  OR BEFORE THE TWENTIETH DAY OF THE MONTH FOLLOWING
 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.
   6. THE SURCHARGES MUST BE ADDED AS  A  SEPARATE  LINE  ITEM  TO  BILLS
 FURNISHED  BY  A WIRELESS COMMUNICATIONS SERVICE SUPPLIER TO ITS CUSTOM-
 ERS, OR 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 IDEN-
 TIFIED AS THE "PUBLIC SAFETY COMMUNICATIONS SURCHARGE".
   7.  EACH WIRELESS COMMUNICATIONS SERVICE SUPPLIER AND PREPAID WIRELESS
 COMMUNICATIONS SELLER IS ENTITLED TO RETAIN, AS AN  ADMINISTRATIVE  FEE,
 AN  AMOUNT  EQUAL  TO THREE PERCENT OF ITS COLLECTIONS OF THE SURCHARGES
 IMPOSED UNDER THE AUTHORITY OF THIS SECTION, PROVIDED THAT THE  SUPPLIER
 OR  SELLER FILES ANY REQUIRED RETURN AND REMITS THE SURCHARGE DUE TO THE
 COMMISSIONER ON OR BEFORE ITS DUE DATE.
   8. APPLICABLE PROVISIONS. (A) EXCEPT AS  OTHERWISE  PROVIDED  IN  THIS
 SECTION, ANY SURCHARGE IMPOSED UNDER THE AUTHORITY OF THIS SECTION SHALL
 BE  ADMINISTERED  AND  COLLECTED BY THE COMMISSIONER IN A LIKE MANNER AS
 THE TAXES IMPOSED BY ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAP-
 TER. ALL THE PROVISIONS OF ARTICLE TWENTY-EIGHT AND TWENTY-NINE OF  THIS
 CHAPTER,  INCLUDING  THE PROVISIONS RELATING TO DEFINITIONS, EXEMPTIONS,
 RETURNS, PERSONAL LIABILITY FOR THE TAX,  COLLECTION  OF  TAX  FROM  THE
 CUSTOMER, PAYMENT OF TAX, AND THE ADMINISTRATION OF THE TAXES IMPOSED BY
 SUCH  ARTICLE, SHALL APPLY TO THE SURCHARGES IMPOSED UNDER THE AUTHORITY
 OF THIS SECTION SO FAR AS THOSE PROVISIONS CAN BE MADE APPLICABLE TO THE
 SURCHARGES IMPOSED UNDER  THE  AUTHORITY  OF  THIS  SECTION,  WITH  SUCH
 MODIFICATIONS  AS  MAY  BE  NECESSARY  IN ORDER TO ADAPT THE LANGUAGE OF
 THOSE PROVISIONS TO THE SURCHARGES IMPOSED UNDER THE AUTHORITY  OF  THIS
 SECTION.  THOSE PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS
 IF THE LANGUAGE OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL  IN  THIS
 SECTION,  EXCEPT  TO  THE  EXTENT THAT ANY OF THOSE PROVISIONS IS EITHER
 INCONSISTENT WITH A PROVISION OF THIS SECTION OR IS NOT RELEVANT TO  THE
 SURCHARGE  IMPOSED UNDER THE AUTHORITY OF THIS SECTION.  FOR PURPOSES OF
 THIS SECTION, ANY REFERENCE IN THIS  CHAPTER  TO  A  TAX  OR  THE  TAXES
 IMPOSED  BY  ARTICLES TWENTY-EIGHT AND TWENTY-NINE OF THIS CHAPTER SHALL
 BE DEEMED ALSO TO REFER TO THE SURCHARGES IMPOSED UNDER THE AUTHORITY OF
 THIS SECTION UNLESS A DIFFERENT MEANING IS CLEARLY REQUIRED.
   (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
 SION:
   (1)  THE  EXEMPTIONS PROVIDED FOR IN SECTION ELEVEN HUNDRED SIXTEEN OF
 THIS CHAPTER, OTHER THAN THE EXEMPTIONS IN PARAGRAPHS ONE, TWO AND THREE
 OF SUBDIVISION (A) OF THAT SECTION, SHALL NOT APPLY  TO  THE  SURCHARGES
 IMPOSED UNDER THE AUTHORITY OF THIS SECTION;
   (2)  THE  CREDIT PROVIDED IN SUBDIVISION (F) OF SECTION ELEVEN HUNDRED
 THIRTY-SEVEN OF THIS CHAPTER SHALL NOT APPLY TO THIS SECTION.
   9. ALL SURCHARGE  MONIES  REMITTED  TO  THE  COMMISSIONER  UNDER  THIS
 SECTION  SHALL  BE  EXPENDED  ONLY UPON AUTHORIZATION OF THE LEGISLATIVE
 BODY OF A CITY OR COUNTY THAT IMPOSES THE  SURCHARGES  PURSUANT  TO  THE
 AUTHORITY  OF  SUBDIVISION  TWO OF THIS SECTION, AND ONLY FOR PAYMENT OF

 S. 2009--C                         139                        A. 3009--C
 
 SYSTEM COSTS, ELIGIBLE WIRELESS 911 SERVICE COSTS, OR OTHER COSTS  ASSO-
 CIATED  WITH  THE  ADMINISTRATION,  DESIGN,  INSTALLATION, CONSTRUCTION,
 OPERATION, OR MAINTENANCE OF PUBLIC SAFETY COMMUNICATIONS NETWORKS OR  A
 SYSTEM  TO  PROVIDE  ENHANCED  WIRELESS 911 SERVICE SERVING SUCH CITY OR
 COUNTY, INCLUDING, BUT NOT LIMITED TO, HARDWARE, SOFTWARE,  CONSULTANTS,
 FINANCING  AND OTHER ACQUISITION COSTS.  SUCH CITY OR COUNTY SHALL SEPA-
 RATELY ACCOUNT FOR AND KEEP ADEQUATE BOOKS AND RECORDS OF THE AMOUNT AND
 OBJECT OR PURPOSE OF ALL EXPENDITURES OF ALL SUCH MONIES. 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 FOLLOWING FISCAL YEAR.
   § 4. This  act  shall  take  effect  immediately;  provided,  however,
 sections one and two of this act shall take effect December 1, 2017; and
 section  one  of this act shall apply to wireless communications service
 and prepaid wireless communications service provided on and  after  that
 date.
 
                                 PART FFF
 
   Section  1.  The  public health law is amended by adding a new section
 2825-e to read as follows:
   § 2825-E. HEALTH CARE FACILITY TRANSFORMATION PROGRAM:  STATEWIDE  II.
 1.  A  STATEWIDE  HEALTH  CARE FACILITY TRANSFORMATION PROGRAM IS HEREBY
 ESTABLISHED UNDER THE JOINT ADMINISTRATION OF THE COMMISSIONER  AND  THE
 PRESIDENT  OF  THE  DORMITORY AUTHORITY OF THE STATE OF NEW YORK FOR THE
 PURPOSE OF STRENGTHENING AND PROTECTING CONTINUED ACCESS TO HEALTH  CARE
 SERVICES IN COMMUNITIES. THE PROGRAM SHALL PROVIDE FUNDING IN SUPPORT OF
 CAPITAL  PROJECTS, DEBT RETIREMENT, WORKING CAPITAL OR OTHER NON-CAPITAL
 PROJECTS THAT FACILITATE HEALTH CARE TRANSFORMATION  ACTIVITIES  INCLUD-
 ING,  BUT  NOT  LIMITED  TO, MERGER, CONSOLIDATION, ACQUISITION OR OTHER
 ACTIVITIES INTENDED TO CREATE FINANCIALLY SUSTAINABLE SYSTEMS OF CARE OR
 PRESERVE OR EXPAND ESSENTIAL HEALTH CARE SERVICES. GRANTS SHALL  NOT  BE
 AVAILABLE  TO  SUPPORT  GENERAL  OPERATING EXPENSES. THE ISSUANCE OF ANY
 BONDS OR NOTES HEREUNDER SHALL BE SUBJECT  TO  SECTION  SIXTEEN  HUNDRED
 EIGHTY-R  OF THE PUBLIC AUTHORITIES LAW AND THE APPROVAL OF THE DIRECTOR
 OF THE DIVISION OF THE BUDGET, AND ANY PROJECTS FUNDED THROUGH THE ISSU-
 ANCE OF BONDS OR NOTES HEREUNDER SHALL BE APPROVED BY THE NEW YORK STATE
 PUBLIC AUTHORITIES CONTROL BOARD, AS REQUIRED UNDER SECTION FIFTY-ONE OF
 THE PUBLIC AUTHORITIES LAW.
   2. THE COMMISSIONER AND THE PRESIDENT OF THE DORMITORY AUTHORITY SHALL
 ENTER INTO AN AGREEMENT, SUBJECT TO APPROVAL  BY  THE  DIRECTOR  OF  THE
 BUDGET,  AND  SUBJECT  TO SECTION SIXTEEN HUNDRED EIGHTY-R OF THE PUBLIC
 AUTHORITIES LAW, FOR THE PURPOSES OF AWARDING, DISTRIBUTING, AND  ADMIN-
 ISTERING  THE  FUNDS MADE AVAILABLE PURSUANT TO THIS SECTION. SUCH FUNDS
 MAY BE DISTRIBUTED BY THE COMMISSIONER FOR  CAPITAL  GRANTS  TO  GENERAL
 HOSPITALS,  RESIDENTIAL HEALTH CARE FACILITIES, DIAGNOSTIC AND TREATMENT
 CENTERS AND CLINICS LICENSED PURSUANT TO  THIS  CHAPTER  OR  THE  MENTAL
 HYGIENE  LAW,  AND  COMMUNITY-BASED  HEALTH CARE PROVIDERS AS DEFINED IN
 SUBDIVISION THREE OF THIS SECTION FOR WORKS OR PURPOSES THAT SUPPORT THE
 PURPOSES SET FORTH IN THIS SECTION. A COPY OF SUCH  AGREEMENT,  AND  ANY
 AMENDMENTS THERETO, SHALL BE PROVIDED TO THE CHAIR OF THE SENATE FINANCE
 COMMITTEE,  THE  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, AND THE
 DIRECTOR OF THE DIVISION OF THE BUDGET NO LATER THAN THIRTY  DAYS  PRIOR
 TO  THE  RELEASE  OF  A  REQUEST FOR APPLICATIONS FOR FUNDING UNDER THIS
 PROGRAM.  PRIORITY SHALL BE GIVEN TO NEW APPLICATIONS FOR  PROJECTS  NOT

 S. 2009--C                         140                        A. 3009--C
 
 FUNDED UNDER SECTION TWENTY-EIGHT HUNDRED TWENTY-FIVE-D OF THIS ARTICLE.
 PROJECTS  AWARDED, IN WHOLE OR PART, UNDER SECTIONS TWENTY-EIGHT HUNDRED
 TWENTY-FIVE-A AND TWENTY-EIGHT HUNDRED  TWENTY-FIVE-B  OF  THIS  ARTICLE
 SHALL  NOT  BE  ELIGIBLE  FOR GRANTS OR AWARDS MADE AVAILABLE UNDER THIS
 SECTION.
   3. NOTWITHSTANDING  SECTION  ONE  HUNDRED  SIXTY-THREE  OF  THE  STATE
 FINANCE  LAW OR ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY, UP TO
 FIVE HUNDRED MILLION DOLLARS OF THE FUNDS APPROPRIATED FOR THIS  PROGRAM
 SHALL BE AWARDED WITHOUT A COMPETITIVE BID OR REQUEST FOR PROPOSAL PROC-
 ESS  FOR  GRANTS  TO  HEALTH  CARE  PROVIDERS  (HEREAFTER "APPLICANTS").
 PROVIDED, HOWEVER, THAT A MINIMUM OF  SEVENTY-FIVE  MILLION  DOLLARS  OF
 TOTAL AWARDED FUNDS SHALL BE MADE TO COMMUNITY-BASED HEALTH CARE PROVID-
 ERS, WHICH FOR PURPOSES OF THIS SECTION SHALL BE DEFINED AS A DIAGNOSTIC
 AND  TREATMENT CENTER LICENSED OR GRANTED AN OPERATING CERTIFICATE UNDER
 THIS ARTICLE; A MENTAL HEALTH CLINIC LICENSED OR  GRANTED  AN  OPERATING
 CERTIFICATE UNDER ARTICLE THIRTY-ONE OF THE MENTAL HYGIENE LAW; AN ALCO-
 HOL  AND SUBSTANCE ABUSE TREATMENT CLINIC LICENSED OR GRANTED AN OPERAT-
 ING CERTIFICATE UNDER ARTICLE THIRTY-TWO OF THE MENTAL  HYGIENE  LAW;  A
 PRIMARY  CARE  PROVIDER  OR  A  HOME CARE PROVIDER CERTIFIED OR LICENSED
 PURSUANT TO ARTICLE THIRTY-SIX OF THIS CHAPTER; OR  OTHER  PURPOSES  AND
 COMMUNITY-BASED  PROVIDERS  DESIGNATED  BY  THE COMMISSIONER PURSUANT TO
 INFORMATION OBTAINED PURSUANT TO SUBDIVISION  FOUR-A  OF  THIS  SECTION.
 ELIGIBLE  APPLICANTS  SHALL  BE THOSE DEEMED BY THE COMMISSIONER TO BE A
 PROVIDER THAT FULFILLS OR WILL FULFILL A  HEALTH  CARE  NEED  FOR  ACUTE
 INPATIENT,  OUTPATIENT,  PRIMARY,  HOME  CARE OR RESIDENTIAL HEALTH CARE
 SERVICES IN A COMMUNITY.
   4. NOTWITHSTANDING SUBDIVISION TWO OF THIS SECTION OR ANY INCONSISTENT
 PROVISION OF LAW TO THE CONTRARY, AND UPON APPROVAL OF THE  DIRECTOR  OF
 THE  BUDGET,  THE  COMMISSIONER  MAY  AWARD  UP TO THREE HUNDRED MILLION
 DOLLARS OF THE  FUNDS  MADE  AVAILABLE  PURSUANT  TO  THIS  SECTION  FOR
 UNFUNDED  PROJECT  APPLICATIONS SUBMITTED IN RESPONSE TO THE REQUEST FOR
 APPLICATIONS NUMBER 1607010255 ISSUED BY THE DEPARTMENT ON JULY  TWENTI-
 ETH, TWO THOUSAND SIXTEEN PURSUANT TO SECTION TWENTY-EIGHT HUNDRED TWEN-
 TY-FIVE-D  OF  THIS  ARTICLE,  PROVIDED  HOWEVER  THAT THE PROVISIONS OF
 SUBDIVISION THREE OF THIS SECTION SHALL APPLY.
   4-A. AUTHORIZED AMOUNTS TO BE AWARDED PURSUANT TO APPLICATIONS SUBMIT-
 TED IN RESPONSE TO THE REQUEST FOR APPLICATION NUMBER  1607010255  SHALL
 BE  AWARDED NO LATER THAN MAY FIRST, TWO THOUSAND SEVENTEEN. THE COMMIS-
 SIONER SHALL NOT ISSUE A  REQUEST  FOR  APPLICATION  FOR  THE  REMAINING
 APPROPRIATED  AMOUNTS ON OR BEFORE JUNE FIRST, TWO THOUSAND SEVENTEEN TO
 ALLOW STAKEHOLDER, COMMUNITY, AND LEGISLATIVE  INPUT  REGARDING  PROGRAM
 ELIGIBILITY, AWARD CRITERIA AND THE PROCESS BY WHICH THE REMAINING FUNDS
 WILL BE AWARDED.
   5.  IN  DETERMINING AWARDS FOR ELIGIBLE APPLICANTS UNDER THIS SECTION,
 THE COMMISSIONER SHALL CONSIDER STAKEHOLDER, COMMUNITY, AND  LEGISLATIVE
 INPUT PURSUANT TO SUBDIVISION FOUR-A OF THIS SECTION, AND OTHER CRITERIA
 INCLUDING, BUT NOT LIMITED TO:
   (A)  THE  EXTENT  TO WHICH THE PROPOSED PROJECT WILL CONTRIBUTE TO THE
 INTEGRATION OF HEALTH CARE SERVICES OR THE LONG TERM  SUSTAINABILITY  OF
 THE APPLICANT OR PRESERVATION OF ESSENTIAL HEALTH SERVICES IN THE COMMU-
 NITY OR COMMUNITIES SERVED BY THE APPLICANT;
   (B)  THE  EXTENT  TO  WHICH THE PROPOSED PROJECT OR PURPOSE IS ALIGNED
 WITH DELIVERY SYSTEM REFORM INCENTIVE PAYMENT  ("DSRIP")  PROGRAM  GOALS
 AND OBJECTIVES;
   (C) CONSIDERATION OF GEOGRAPHIC DISTRIBUTION OF FUNDS;

 S. 2009--C                         141                        A. 3009--C
 
   (D)  THE  RELATIONSHIP  BETWEEN  THE  PROPOSED  PROJECT AND IDENTIFIED
 COMMUNITY NEED;
   (E)  THE  EXTENT  TO  WHICH  THE  APPLICANT  HAS ACCESS TO ALTERNATIVE
 FINANCING;
   (F) THE EXTENT THAT THE PROPOSED PROJECT FURTHERS THE  DEVELOPMENT  OF
 PRIMARY CARE AND OTHER OUTPATIENT SERVICES;
   (G)  THE EXTENT TO WHICH THE PROPOSED PROJECT BENEFITS MEDICAID ENROL-
 LEES AND UNINSURED INDIVIDUALS;
   (H) THE EXTENT TO  WHICH  THE  APPLICANT  HAS  ENGAGED  THE  COMMUNITY
 AFFECTED  BY  THE  PROPOSED  PROJECT  AND  THE MANNER IN WHICH COMMUNITY
 ENGAGEMENT HAS SHAPED SUCH PROJECT; AND
   (I) THE EXTENT TO WHICH THE PROPOSED PROJECT ADDRESSES POTENTIAL  RISK
 TO PATIENT SAFETY AND WELFARE.
   6.  DISBURSEMENT  OF  AWARDS  MADE  PURSUANT  TO THIS SECTION SHALL BE
 CONDITIONED ON THE AWARDEE ACHIEVING  CERTAIN  PROCESS  AND  PERFORMANCE
 METRICS  AND  MILESTONES  AS  DETERMINED  IN  THE SOLE DISCRETION OF THE
 COMMISSIONER. SUCH METRICS AND MILESTONES SHALL BE STRUCTURED TO  ENSURE
 THAT  THE  GOALS OF THE PROJECT ARE ACHIEVED, AND SUCH METRICS AND MILE-
 STONES SHALL BE INCLUDED  IN  GRANT  DISBURSEMENT  AGREEMENTS  OR  OTHER
 CONTRACTUAL DOCUMENTS AS REQUIRED BY THE COMMISSIONER.
   7.  THE  DEPARTMENT SHALL PROVIDE A REPORT ON A QUARTERLY BASIS TO THE
 CHAIRS OF THE SENATE FINANCE, ASSEMBLY WAYS AND MEANS, AND SENATE HEALTH
 AND ASSEMBLY HEALTH COMMITTEES. SUCH REPORTS SHALL BE SUBMITTED NO LATER
 THAN SIXTY DAYS AFTER THE CLOSE OF THE QUARTER, AND SHALL  INCLUDE,  FOR
 EACH  AWARD,  THE NAME OF THE APPLICANT, A DESCRIPTION OF THE PROJECT OR
 PURPOSE, THE AMOUNT OF THE  AWARD,  DISBURSEMENT  DATE,  AND  STATUS  OF
 ACHIEVEMENT  OF  PROCESS AND PERFORMANCE METRICS AND MILESTONES PURSUANT
 TO SUBDIVISION FIVE OF THIS SECTION.
   § 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 GGG
 
   Section  1.  Subparagraph  (i)  of  paragraph  (g) of subdivision 7 of
 section 4403-f of the public health law, as amended by section  41-b  of
 part H of chapter 59 of the laws of 2011, is amended to read as follows:
   (i)  Managed long term care plans and demonstrations may enroll eligi-
 ble persons in the plan  or  demonstration  upon  the  completion  of  a
 comprehensive  assessment  that shall include, but not be limited to, an
 evaluation of the medical, social, COGNITIVE, and environmental needs of
 each prospective enrollee in such program. This  assessment  shall  also
 serve  as  the basis for the development and provision of an appropriate
 plan of care for the enrollee. Upon approval of federal waivers pursuant
 to paragraph (b) of this subdivision which  require  medical  assistance
 recipients who require community-based long term care services to enroll
 in  a  plan, and upon approval of the commissioner, a plan may enroll an
 applicant who is currently receiving home and  community-based  services
 and  complete the comprehensive assessment within thirty days of enroll-
 ment provided that the plan continues to cover transitional  care  until
 such time as the assessment is completed.
   §  2.  This act shall take effect immediately; provided, however, that
 the amendments to subparagraph (i) of paragraph (g) of subdivision 7  of
 section  4403-f of the public health law made by section one of this act
 shall not affect the expiration and reversion of such  subparagraph  and
 shall  be  deemed to expire therewith; provided, further that the amend-
 ments to subparagraph (i) of paragraph (g) of subdivision 7  of  section

 S. 2009--C                         142                        A. 3009--C
 
 4403-f  of  the  public health law made by section one of this act shall
 not affect the repeal of such section and shall be deemed repealed ther-
 ewith.
 
                                 PART HHH
 
   Section  1. The education law is amended by adding a new section 669-h
 to read as follows:
   § 669-H. EXCELSIOR SCHOLARSHIP. 1. ELIGIBILITY. AN EXCELSIOR  SCHOLAR-
 SHIP  AWARD SHALL BE MADE TO AN APPLICANT WHO: (A) IS MATRICULATED IN AN
 APPROVED PROGRAM LEADING TO AN UNDERGRADUATE DEGREE AT A NEW YORK  STATE
 PUBLIC  INSTITUTION OF HIGHER EDUCATION; (B) IF ENROLLED IN (I) A PUBLIC
 INSTITUTION OF HIGHER EDUCATION PRIOR TO APPLICATION, HAS  COMPLETED  AT
 LEAST  THIRTY  COMBINED  CREDITS  PER YEAR FOLLOWING THE STUDENT'S START
 DATE, OR ITS EQUIVALENT, APPLICABLE TO HIS OR HER PROGRAM OR PROGRAMS OF
 STUDY OR (II) AN INSTITUTION OF HIGHER EDUCATION PRIOR  TO  APPLICATION,
 HAS  COMPLETED  AT  LEAST THIRTY COMBINED CREDITS PER YEAR FOLLOWING THE
 STUDENT'S START DATE, OR  ITS  EQUIVALENT,  APPLICABLE  TO  HIS  OR  HER
 PROGRAM  OR PROGRAMS OF STUDY AND WHICH WERE ACCEPTED UPON TRANSFER TO A
 PUBLIC INSTITUTION OF HIGHER EDUCATION; (C) ENROLLS IN AT  LEAST  TWELVE
 CREDITS  PER SEMESTER AND COMPLETES AT LEAST THIRTY COMBINED CREDITS PER
 YEAR FOLLOWING THE STUDENT'S START DATE, OR ITS  EQUIVALENT,  APPLICABLE
 TO  HIS  OR  HER  PROGRAM OR PROGRAMS OF STUDY EXCEPT IN LIMITED CIRCUM-
 STANCES AS PRESCRIBED BY THE CORPORATION IN REGULATION. NOTWITHSTANDING,
 IN THE STUDENT'S LAST SEMESTER, THE STUDENT MAY TAKE AT LEAST ONE COURSE
 NEEDED TO MEET HIS OR HER GRADUATION  REQUIREMENTS  AND  ENROLL  IN  AND
 COMPLETE  AT  LEAST  TWELVE CREDIT HOURS OR ITS EQUIVALENT. FOR STUDENTS
 WHO ARE DISABLED AS DEFINED BY THE AMERICANS WITH  DISABILITIES  ACT  OF
 1990,  42  USC  12101,  THE  CORPORATION SHALL PRESCRIBE RULES AND REGU-
 LATIONS THAT ALLOW APPLICANTS WHO ARE DISABLED TO  BE  ELIGIBLE  FOR  AN
 AWARD  PURSUANT  TO  THIS SECTION BASED ON MODIFIED CRITERIA; (D) HAS AN
 ADJUSTED GROSS INCOME, AS DEFINED IN THIS SUBDIVISION, EQUAL TO OR  LESS
 THAN: (I) ONE HUNDRED THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN AWARD
 IN THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR; (II)
 ONE  HUNDRED  TEN  THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN AWARD IN
 THE TWO THOUSAND EIGHTEEN--TWO  THOUSAND  NINETEEN  ACADEMIC  YEAR;  AND
 (III)  ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS FOR RECIPIENTS RECEIVING
 AN AWARD IN THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY ACADEMIC YEAR
 AND THEREAFTER; AND (E) COMPLIES WITH THE APPLICABLE PROVISIONS OF  THIS
 ARTICLE  AND  ALL  REQUIREMENTS  PROMULGATED  BY THE CORPORATION FOR THE
 ADMINISTRATION OF THE PROGRAM. ADJUSTED GROSS INCOME SHALL BE THE  TOTAL
 OF  THE  COMBINED  ADJUSTED GROSS INCOME OF THE APPLICANT AND THE APPLI-
 CANT'S PARENTS OR THE APPLICANT AND THE APPLICANT'S SPOUSE, IF  MARRIED,
 AS  REPORTED  ON THE FEDERAL INCOME TAX RETURN, OR AS OTHERWISE OBTAINED
 BY THE CORPORATION, FOR THE CALENDAR YEAR COINCIDING WITH THE  TAX  YEAR
 ESTABLISHED  BY  THE  U.S. DEPARTMENT OF EDUCATION TO QUALIFY APPLICANTS
 FOR FEDERAL STUDENT FINANCIAL AID PROGRAMS AUTHORIZED BY TITLE IV OF THE
 HIGHER EDUCATION ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, FOR THE
 SCHOOL YEAR IN WHICH APPLICATION FOR ASSISTANCE IS MADE.
   2. AMOUNT. WITHIN AMOUNTS APPROPRIATED THEREFOR AND  BASED  ON  AVAIL-
 ABILITY  OF  FUNDS, AWARDS SHALL BE GRANTED BEGINNING WITH THE TWO THOU-
 SAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR  AND  THEREAFTER  TO
 APPLICANTS  THAT  THE CORPORATION HAS DETERMINED ARE ELIGIBLE TO RECEIVE
 SUCH AWARDS. THE CORPORATION SHALL GRANT SUCH AWARDS IN AN AMOUNT UP  TO
 FIVE THOUSAND FIVE HUNDRED DOLLARS OR ACTUAL TUITION, WHICHEVER IS LESS;
 PROVIDED,  HOWEVER, (A) A STUDENT WHO RECEIVES EDUCATIONAL GRANTS AND/OR

 S. 2009--C                         143                        A. 3009--C
 
 SCHOLARSHIPS THAT COVER THE STUDENT'S FULL COST OF ATTENDANCE SHALL  NOT
 BE ELIGIBLE FOR AN AWARD UNDER THIS PROGRAM; AND (B) AN AWARD UNDER THIS
 PROGRAM  SHALL  BE  APPLIED TO TUITION AFTER THE APPLICATION OF PAYMENTS
 RECEIVED  UNDER  THE  TUITION ASSISTANCE PROGRAM PURSUANT TO SECTION SIX
 HUNDRED SIXTY-SEVEN OF THIS SUBPART, TUITION CREDITS PURSUANT TO SECTION
 SIX HUNDRED EIGHTY-NINE-A OF THIS ARTICLE, FEDERAL PELL  GRANT  PURSUANT
 TO  SECTION  ONE  THOUSAND  SEVENTY OF TITLE TWENTY OF THE UNITED STATES
 CODE, ET. SEQ., AND ANY OTHER PROGRAM THAT COVERS THE  COST  OF  ATTEND-
 ANCE,  AND  THE  AWARD UNDER THIS PROGRAM SHALL BE REDUCED IN THE AMOUNT
 EQUAL TO SUCH PAYMENTS, PROVIDED  THAT  THE  COMBINED  BENEFITS  DO  NOT
 EXCEED FIVE THOUSAND FIVE HUNDRED DOLLARS. UPON NOTIFICATION OF AN AWARD
 UNDER  THIS  PROGRAM, THE INSTITUTION SHALL DEFER THE AMOUNT OF TUITION.
 NOTWITHSTANDING PARAGRAPH H OF SUBDIVISION TWO OF SECTION THREE  HUNDRED
 FIFTY-FIVE  AND  PARAGRAPH (A) OF SUBDIVISION SEVEN OF SECTION SIX THOU-
 SAND TWO HUNDRED SIX OF THIS CHAPTER, AND ANY OTHER LAW, RULE  OR  REGU-
 LATION  TO THE CONTRARY, THE UNDERGRADUATE TUITION CHARGED BY THE INSTI-
 TUTION TO RECIPIENTS OF AN AWARD  SHALL  NOT  EXCEED  THE  TUITION  RATE
 ESTABLISHED  BY  THE INSTITUTION FOR THE TWO THOUSAND SIXTEEN--TWO THOU-
 SAND SEVENTEEN ACADEMIC YEAR PROVIDED, HOWEVER, THAT IN THE TWO THOUSAND
 TWENTY-ONE--TWO THOUSAND TWENTY-TWO ACADEMIC YEAR AND EVERY  FOUR  YEARS
 THEREAFTER,  THE  UNDERGRADUATE  TUITION  CHARGED  BY THE INSTITUTION TO
 RECIPIENTS OF AN AWARD SHALL BE RESET TO EQUAL THE TUITION  RATE  ESTAB-
 LISHED  BY  THE  INSTITUTION FOR THE FORTHCOMING ACADEMIC YEAR, PROVIDED
 FURTHER THAT THE TUITION  CREDIT  CALCULATED  PURSUANT  TO  SECTION  SIX
 HUNDRED  EIGHTY-NINE-A  OF  THIS  ARTICLE  SHALL  BE  APPLIED TOWARD THE
 TUITION RATE CHARGED FOR RECIPIENTS OF  AN  AWARD  UNDER  THIS  PROGRAM.
 PROVIDED  FURTHER  THAT  THE  STATE  UNIVERSITY OF NEW YORK AND THE CITY
 UNIVERSITY OF NEW YORK SHALL PROVIDE AN  ADDITIONAL  TUITION  CREDIT  TO
 STUDENTS RECEIVING AN AWARD TO COVER THE REMAINING COST OF TUITION.
   3. DURATION. AN ELIGIBLE RECIPIENT SHALL NOT RECEIVE AN AWARD FOR MORE
 THAN  FOUR  ACADEMIC  YEARS  OF  FULL-TIME  UNDERGRADUATE  STUDY OR FIVE
 ACADEMIC YEARS IF THE PROGRAM OF STUDY NORMALLY REQUIRES FIVE YEARS.  AN
 ELIGIBLE  RECIPIENT  ENROLLED  IN  AN ELIGIBLE TWO YEAR PROGRAM OF STUDY
 SHALL NOT RECEIVE AN AWARD FOR MORE THAN TWO ACADEMIC YEARS.    NOTWITH-
 STANDING, SUCH DURATION MAY BE EXTENDED FOR AN ALLOWABLE INTERRUPTION OF
 STUDY  INCLUDING,  BUT NOT LIMITED TO, DEATH OF A FAMILY MEMBER, MEDICAL
 LEAVE, MILITARY SERVICE, AND  PARENTAL  LEAVE,  AS  ESTABLISHED  BY  THE
 CORPORATION IN REGULATION.
   4.  CONDITIONS.  (A) AN APPLICANT WHO WOULD BE ELIGIBLE FOR A NEW YORK
 STATE TUITION ASSISTANCE PROGRAM AWARD PURSUANT TO SECTION  SIX  HUNDRED
 SIXTY-SEVEN  OF  THIS  SUBPART  AND/OR  A FEDERAL PELL GRANT PURSUANT TO
 SECTION ONE THOUSAND SEVENTY OF TITLE TWENTY OF THE UNITED STATES  CODE,
 ET. SEQ., IS REQUIRED TO APPLY FOR EACH SUCH AWARD.
   (B)  AN  APPLICANT WHO HAS EARNED A BACHELOR'S DEGREE IS INELIGIBLE TO
 RECEIVE AN AWARD PURSUANT TO THIS SECTION.
   (C) AN APPLICANT WHO HAS EARNED AN ASSOCIATE'S DEGREE IS INELIGIBLE TO
 RECEIVE AN AWARD FOR A TWO  YEAR  PROGRAM  OF  STUDY  PURSUANT  TO  THIS
 SECTION.
   (D)  NOTWITHSTANDING  PARAGRAPH  C  OF SUBDIVISION FOUR OF SECTION SIX
 HUNDRED SIXTY-ONE OF THIS PART, A SCHOOL SHALL CERTIFY THAT A  RECIPIENT
 HAS  ACHIEVED  A GRADE POINT AVERAGE NECESSARY FOR SUCCESSFUL COMPLETION
 OF HIS OR HER COURSEWORK TO RECEIVE PAYMENT UNDER THE AWARD.
   (E) A RECIPIENT SHALL AGREE TO RESIDE EXCLUSIVELY IN NEW  YORK  STATE,
 AND SHALL NOT BE EMPLOYED IN ANY OTHER STATE, FOR A CONTINUOUS NUMBER OF
 YEARS  EQUAL  TO THE DURATION OF THE AWARD RECEIVED WITHIN SIX MONTHS OF
 RECEIPT OF HIS OR HER FINAL AWARD PAYMENT, AND SIGN A CONTRACT WITH  THE

 S. 2009--C                         144                        A. 3009--C
 
 CORPORATION  TO  HAVE  HIS OR HER FULL AWARD CONVERTED TO A STUDENT LOAN
 ACCORDING TO A SCHEDULE TO BE DETERMINED  BY  THE  CORPORATION  IF  SUCH
 STUDENT  FAILS  TO FULFILL THIS REQUIREMENT. THE TERMS AND CONDITIONS OF
 THIS  PARAGRAPH  MAY, AS ESTABLISHED BY THE RULES AND REGULATIONS OF THE
 CORPORATION, BE DEFERRED: (I) TO COMPLETE UNDERGRADUATE STUDY;  OR  (II)
 TO  ATTEND GRADUATE SCHOOL ON AT LEAST A HALF-TIME BASIS. ANY OBLIGATION
 TO COMPLY WITH SUCH PROVISIONS AS OUTLINED  IN  THIS  PARAGRAPH  MAY  BE
 CANCELLED   UPON   THE  DEATH  OF  THE  RECIPIENT.  NOTWITHSTANDING  ANY
 PROVISIONS OF THIS PARAGRAPH TO THE CONTRARY, THE CORPORATION IS AUTHOR-
 IZED TO PROMULGATE RULES AND REGULATIONS TO PROVIDE FOR  THE  WAIVER  OR
 SUSPENSION OF ANY FINANCIAL OBLIGATION WHICH WOULD INVOLVE EXTREME HARD-
 SHIP.
   (F)  NOTWITHSTANDING PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION,
 A STUDENT WHO OTHERWISE SATISFIES ALL OF  THE  REQUIREMENTS  UNDER  THIS
 SECTION  BUT  FAILS TO COMPLETE AT LEAST THIRTY COMBINED CREDITS, OR ITS
 EQUIVALENT, APPLICABLE TO HIS OR HER PROGRAM OR PROGRAMS OF STUDY IN ANY
 YEAR SHALL BE ELIGIBLE TO RECEIVE AN AWARD PAYMENT FOR THE FIRST  SEMES-
 TER  OF SUCH YEAR, PROVIDED HOWEVER, THE STUDENT SHALL BE INELIGIBLE FOR
 ANY FURTHER PAYMENTS UNDER THIS SECTION.
   5. RECIPIENT SELECTION. THE PRESIDENT MAY ESTABLISH: (A)  AN  APPLICA-
 TION  DEADLINE  AND (B) A METHOD OF SELECTING RECIPIENTS IF IN ANY GIVEN
 YEAR THERE ARE INSUFFICIENT FUNDS TO COVER THE NEEDS OF ALL  THE  APPLI-
 CANTS  PROVIDED  THAT PRIORITY SHALL BE GIVEN TO ELIGIBLE APPLICANTS WHO
 ARE CURRENTLY IN ATTENDANCE AT A PUBLIC INSTITUTION OF HIGHER EDUCATION.
   6. RULES AND REGULATIONS.  THE CORPORATION IS AUTHORIZED TO PROMULGATE
 RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS,  NECES-
 SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION INCLUDING,
 BUT  NOT LIMITED TO, THE CRITERIA FOR DISTRIBUTING THE AWARDS, WHICH MAY
 INCLUDE A LOTTERY OR OTHER FORM OF RANDOM SELECTION.
   § 2. This act shall take effect immediately.

                                 PART III
 
   Section 1. The education law is amended by adding a new section  667-d
 to read as follows:
   §  667-D.  ENHANCED  TUITION AWARDS. 1.   RECIPIENT QUALIFICATIONS. A.
 ESTABLISHMENT.  ENHANCED TUITION AWARDS ARE AVAILABLE FOR  STUDENTS  WHO
 ARE  ENROLLED  IN  APPROVED  PROGRAMS  IN  PRIVATE NOT-FOR-PROFIT DEGREE
 GRANTING INSTITUTIONS EXCEPT THOSE INSTITUTIONS SET FORTH IN PARAGRAPH B
 OF SUBDIVISION FOUR OF SECTION SIX HUNDRED SIXTY-ONE OF  THIS  PART  AND
 WHO DEMONSTRATE THE ABILITY TO COMPLETE SUCH COURSES, IN ACCORDANCE WITH
 STANDARDS  ESTABLISHED  BY  THE  COMMISSIONER;  PROVIDED, THAT, NO AWARD
 SHALL EXCEED ONE HUNDRED PERCENT OF THE AMOUNT OF TUITION CHARGED.
   B. APPLICATION FOR OTHER AWARDS. A STUDENT WHO WOULD BE ELIGIBLE FOR A
 TUITION ASSISTANCE PROGRAM AWARD PURSUANT TO SECTION SIX HUNDRED  SIXTY-
 SEVEN  OF  THIS  SUBPART AND/OR A FEDERAL PELL GRANT PURSUANT TO SECTION
 ONE THOUSAND SEVENTY OF TITLE TWENTY OF  THE  UNITED  STATES  CODE,  ET.
 SEQ.,  IS  REQUIRED  TO  APPLY  FOR  EACH SUCH AWARD. ANY AWARD SHALL BE
 APPLIED TO TUITION AFTER THE APPLICATION OF PAYMENTS RECEIVED UNDER  THE
 TUITION  ASSISTANCE  PROGRAM PURSUANT TO SECTION SIX HUNDRED SIXTY-SEVEN
 OF THIS SUBPART.
   C. GPA REQUIREMENTS.  NOTWITHSTANDING PARAGRAPH C OF SUBDIVISION  FOUR
 OF  SECTION  SIX  HUNDRED SIXTY-ONE OF THIS PART, A SCHOOL SHALL CERTIFY
 THAT A RECIPIENT HAS  ACHIEVED  A  GRADE  POINT  AVERAGE  NECESSARY  FOR
 SUCCESSFUL  COMPLETION OF HIS OR HER COURSEWORK TO RECEIVE PAYMENT UNDER
 THE AWARD.

 S. 2009--C                         145                        A. 3009--C
 
   D. CREDIT REQUIREMENTS.  AN AWARD SHALL BE MADE TO AN  APPLICANT  WHO:
 (I)  IF  ENROLLED IN (A) A PRIVATE INSTITUTION OF HIGHER EDUCATION PRIOR
 TO APPLICATION, HAS COMPLETED AT LEAST THIRTY COMBINED CREDITS PER  YEAR
 FOLLOWING THE STUDENT'S START DATE, OR ITS EQUIVALENT, APPLICABLE TO HIS
 OR HER PROGRAM OR PROGRAMS OF STUDY OR (B) A PUBLIC INSTITUTION OF HIGH-
 ER  EDUCATION  PRIOR  TO  APPLICATION,  HAS  COMPLETED  AT  LEAST THIRTY
 COMBINED CREDITS PER YEAR FOLLOWING THE STUDENT'S  START  DATE,  OR  ITS
 EQUIVALENT,  APPLICABLE  TO  HIS OR HER PROGRAM OR PROGRAMS OF STUDY AND
 WHICH WERE ACCEPTED UPON TRANSFER TO A  PRIVATE  INSTITUTION  OF  HIGHER
 EDUCATION;  (II)  ENROLLS  IN  AT  LEAST TWELVE CREDITS PER SEMESTER AND
 COMPLETES AT LEAST  THIRTY  COMBINED  CREDITS  PER  YEAR  FOLLOWING  THE
 STUDENT'S  START  DATE,  OR  ITS  EQUIVALENT,  APPLICABLE  TO HIS OR HER
 PROGRAM  OR  PROGRAMS  OF  STUDY  EXCEPT  IN  LIMITED  CIRCUMSTANCES  AS
 PRESCRIBED  BY  THE  CORPORATION  IN REGULATION. NOTWITHSTANDING, IN THE
 STUDENT'S LAST SEMESTER, THE STUDENT MAY TAKE AT LEAST ONE COURSE NEEDED
 TO MEET HIS OR HER GRADUATION REQUIREMENTS AND ENROLL IN AND COMPLETE AT
 LEAST TWELVE CREDIT HOURS OR ITS EQUIVALENT.  FOR STUDENTS WHO ARE DISA-
 BLED AS DEFINED BY THE AMERICANS WITH DISABILITIES ACT OF 1990,  42  USC
 12101,  THE CORPORATION SHALL PRESCRIBE RULES AND REGULATIONS THAT ALLOW
 APPLICANTS WHO ARE DISABLED TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS
 SECTION BASED ON MODIFIED CRITERIA.
   E. NOTWITHSTANDING PARAGRAPH D OF  THIS  SUBDIVISION,  A  STUDENT  WHO
 OTHERWISE SATISFIES ALL OF THE REQUIREMENTS UNDER THIS SECTION BUT FAILS
 TO  COMPLETE AT LEAST THIRTY COMBINED CREDITS, OR ITS EQUIVALENT, APPLI-
 CABLE TO HIS OR HER PROGRAM OR PROGRAMS OF STUDY IN ANY  YEAR  SHALL  BE
 ELIGIBLE  TO  RECEIVE  AN  AWARD  PAYMENT FOR THE FIRST SEMESTER OF SUCH
 YEAR, PROVIDED HOWEVER, THE STUDENT SHALL BE INELIGIBLE FOR ANY  FURTHER
 PAYMENTS UNDER THIS SECTION.
   F.  ADDITIONAL REQUIREMENTS.  A RECIPIENT SHALL AGREE TO RESIDE EXCLU-
 SIVELY IN NEW YORK STATE, AND SHALL NOT BE EMPLOYED IN ANY OTHER  STATE,
 FOR  A  CONTINUOUS  NUMBER  OF  YEARS EQUAL TO THE DURATION OF THE AWARD
 RECEIVED WITHIN SIX MONTHS OF RECEIPT OF HIS OR HER FINAL AWARD PAYMENT,
 AND SIGN A CONTRACT WITH THE CORPORATION TO HAVE HIS OR HER  FULL  AWARD
 CONVERTED  TO A STUDENT LOAN ACCORDING TO A SCHEDULE TO BE DETERMINED BY
 THE CORPORATION IF SUCH STUDENT FAILS TO FULFILL THIS  REQUIREMENT.  THE
 TERMS  AND CONDITIONS OF THIS PARAGRAPH MAY, AS ESTABLISHED BY THE RULES
 AND REGULATIONS OF THE CORPORATION, BE DEFERRED: (I) TO COMPLETE  UNDER-
 GRADUATE  STUDY;  OR  (II) TO ATTEND GRADUATE SCHOOL ON AT LEAST A HALF-
 TIME BASIS. ANY OBLIGATION TO COMPLY WITH SUCH PROVISIONS AS OUTLINED IN
 THIS PARAGRAPH MAY  BE  CANCELLED  UPON  THE  DEATH  OF  THE  RECIPIENT.
 NOTWITHSTANDING  ANY PROVISIONS   OF THIS PARAGRAPH TO THE CONTRARY, THE
 CORPORATION IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS TO PROVIDE
 FOR THE WAIVER OR SUSPENSION OF ANY  FINANCIAL  OBLIGATION  WHICH  WOULD
 INVOLVE EXTREME HARDSHIP.
   G.  FAILURE  TO  MEET  THE CONDITIONS OF THE AWARD SHALL NOT OTHERWISE
 DISQUALIFY A STUDENT'S ELIGIBILITY TO RECEIVE AN AWARD UNDER SECTION SIX
 HUNDRED SIXTY-SEVEN OF THIS SUBPART.
   2. DURATION. NO UNDERGRADUATE SHALL BE ELIGIBLE  FOR  MORE  THAN  FOUR
 ACADEMIC  YEARS OF STUDY, OR FIVE ACADEMIC YEARS IF THE PROGRAM OF STUDY
 NORMALLY REQUIRES FIVE YEARS.  AN UNDERGRADUATE STUDENT ENROLLED  IN  AN
 ELIGIBLE TWO-YEAR PROGRAM APPROVED BY THE COMMISSIONER SHALL BE ELIGIBLE
 FOR  NO  MORE  THAN TWO ACADEMIC YEARS.   UNDER NO CIRCUMSTANCES SHALL A
 STUDENT RECEIVE AN AWARD FOR  A  TWO-YEAR  PROGRAM  FOR  MORE  THAN  TWO
 CONSECUTIVE  YEARS  OF  ACADEMIC  STUDY OR FOUR CONSECUTIVE SEMESTERS OF
 ACADEMIC STUDY; OR AT A FOUR OR FIVE-YEAR PROGRAM, FOR  MORE  THAN  FOUR
 CONSECUTIVE  YEARS  OR  EIGHT CONSECUTIVE SEMESTERS OF ACADEMIC STUDY OR

 S. 2009--C                         146                        A. 3009--C
 
 FIVE CONSECUTIVE YEARS, OR TEN CONSECUTIVE SEMESTERS  OF  STUDY  IF  THE
 PROGRAM  NORMALLY  REQUIRES FIVE YEARS.   NOTWITHSTANDING, SUCH DURATION
 MAY BE EXTENDED FOR AN ALLOWABLE INTERRUPTION OF  STUDY  INCLUDING,  BUT
 NOT  LIMITED  TO,  DEATH  OF  A  FAMILY  MEMBER, MEDICAL LEAVE, MILITARY
 SERVICE, AND PARENTAL LEAVE, AS ESTABLISHED BY THE CORPORATION IN  REGU-
 LATION.
   3.  INCOME. AN AWARD SHALL BE MADE TO AN APPLICANT WHO HAS AN ADJUSTED
 GROSS INCOME, AS DEFINED IN THIS SUBDIVISION, EQUAL TO OR LESS THAN: (I)
 ONE HUNDRED THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN  AWARD  IN  THE
 TWO  THOUSAND  SEVENTEEN--TWO  THOUSAND EIGHTEEN ACADEMIC YEAR; (II) ONE
 HUNDRED TEN THOUSAND DOLLARS FOR RECIPIENTS RECEIVING AN  AWARD  IN  THE
 TWO  THOUSAND  EIGHTEEN--TWO  THOUSAND NINETEEN ACADEMIC YEAR; AND (III)
 ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS  FOR  RECIPIENTS  RECEIVING  AN
 AWARD  IN  THE  TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY ACADEMIC YEAR
 AND THEREAFTER. ADJUSTED GROSS INCOME SHALL BE THE TOTAL OF THE COMBINED
 ADJUSTED GROSS INCOME OF THE APPLICANT AND THE  APPLICANT'S  PARENTS  OR
 THE APPLICANT AND THE APPLICANT'S SPOUSE, IF MARRIED, AS REPORTED ON THE
 FEDERAL  INCOME TAX RETURN, OR AS OTHERWISE OBTAINED BY THE CORPORATION,
 FOR THE CALENDAR YEAR COINCIDING WITH THE TAX YEAR  ESTABLISHED  BY  THE
 U.S.  DEPARTMENT  OF EDUCATION TO QUALIFY APPLICANTS FOR FEDERAL STUDENT
 FINANCIAL AID PROGRAMS AUTHORIZED BY TITLE IV OF  THE  HIGHER  EDUCATION
 ACT  OF  NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED, FOR THE SCHOOL YEAR IN
 WHICH APPLICATION FOR ASSISTANCE IS MADE.
   4. AMOUNT. WITHIN THE  AMOUNTS  APPROPRIATED  THEREFOR  AND  BASED  ON
 AVAILABILITY  OF  FUNDS,  AWARDS SHALL BE GRANTED BEGINNING WITH THE TWO
 THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN ACADEMIC YEAR  AND  THEREAFTER
 TO  APPLICANTS  THAT  THE  CORPORATION  HAS  DETERMINED  ARE ELIGIBLE TO
 RECEIVE SUCH AWARDS. THE AMOUNT OF THE AWARD UNDER THIS PROGRAM SHALL BE
 SUCH THAT THE SUM OF THE  AWARD  PLUS  A  STUDENT'S  TUITION  ASSISTANCE
 PROGRAM  AWARD  PURSUANT  TO  SECTION  SIX  HUNDRED  SIXTY-SEVEN OF THIS
 SUBPART PLUS THE INSTITUTION'S MATCHING AWARD  PURSUANT  TO  SUBDIVISION
 FIVE OF THIS SECTION SHALL EQUAL SIX THOUSAND DOLLARS.
   5.  MATCHING  AWARDS.  COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO
 THOUSAND EIGHTEEN ACADEMIC YEAR  AND  THEREAFTER,  PARTICIPATING  INSTI-
 TUTIONS  SHALL  CREDIT EACH RECIPIENT'S REMAINING TUITION EXPENSES IN AN
 AMOUNT EQUAL TO THE RECIPIENT'S AWARD UNDER THIS  SECTION.  SUCH  CREDIT
 SHALL  BE  APPLIED AFTER THE RECIPIENT HAS RECEIVED AN INSTITUTIONAL AID
 PACKAGE, IF ANY, TO ENSURE THAT THIS PROGRAM DOES  NOT  REDUCE  INSTITU-
 TIONAL AID THAT WOULD OTHERWISE BE GRANTED.
   6.  TUITION. THE RATE OF TUITION CHARGED TO AN INDIVIDUAL RECEIVING AN
 AWARD SHALL NOT BE INCREASED FOR THE DURATION OF TIME THAT SUCH INDIVID-
 UAL RECEIVES AN AWARD.
   7. COLLEGE OPTION. AN INSTITUTION MAY CHOOSE NOT TO PARTICIPATE IN THE
 PROGRAM AND STUDENTS ATTENDING ANY NON-PARTICIPATING COLLEGE  MAY  STILL
 BE  ELIGIBLE  TO RECEIVE AN AWARD PURSUANT TO SECTION SIX HUNDRED SIXTY-
 SEVEN OF THIS SUBPART.
   8. RECIPIENT SELECTION. THE PRESIDENT MAY ESTABLISH: A. AN APPLICATION
 DEADLINE AND B. A METHOD OF SELECTING RECIPIENTS IF IN  ANY  GIVEN  YEAR
 THERE  ARE  INSUFFICIENT  FUNDS TO COVER THE NEEDS OF ALL THE APPLICANTS
 PROVIDED THAT PRIORITY SHALL BE GIVEN TO  ELIGIBLE  APPLICANTS  WHO  ARE
 CURRENTLY IN ATTENDANCE AT AN INSTITUTION OF HIGHER EDUCATION.
   9.  RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
 RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS,  NECES-
 SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION INCLUDING,
 BUT  NOT LIMITED TO, THE CRITERIA FOR DISTRIBUTING THE AWARDS, WHICH MAY
 INCLUDE A LOTTERY OR OTHER FORM OF RANDOM SELECTION.

 S. 2009--C                         147                        A. 3009--C
 
   § 2. This act shall take effect immediately.
 
                                 PART JJJ
 
   Section  1.  Subparagraph 4 of paragraph h of subdivision 2 of section
 355 of the education law, as amended by section 1 of part D  of  chapter
 54 of the laws of 2016, is amended to read as follows:
   (4)  The trustees shall not impose a differential tuition charge based
 upon need or  income.  Except  as  hereinafter  provided,  all  students
 enrolled  in  programs  leading to like degrees at state-operated insti-
 tutions of the state university shall  be  charged  a  uniform  rate  of
 tuition  except for differential tuition rates based on state residency.
 Provided, however, that the trustees may authorize the presidents of the
 colleges of technology and the colleges of agriculture and technology to
 set differing rates of tuition for each of  the  colleges  for  students
 enrolled  in degree-granting programs leading to an associate degree and
 non-degree granting programs so long  as  such  tuition  rate  does  not
 exceed  the  tuition  rate  charged to students who are enrolled in like
 degree programs or degree-granting undergraduate programs leading  to  a
 baccalaureate  degree  at other state-operated institutions of the state
 university of New York. Notwithstanding  any  other  provision  of  this
 subparagraph, the trustees may authorize the setting of a separate cate-
 gory  of  tuition  rate, that shall be greater than the tuition rate for
 resident students and  less  than  the  tuition  rate  for  non-resident
 students,  only  for  students enrolled in distance learning courses who
 are not residents of the state. Except as otherwise authorized  in  this
 subparagraph,  the  trustees  shall  not adopt changes affecting tuition
 charges prior to the enactment of the annual  budget,  provided  however
 that:
   (i)  Commencing  with  the  two  thousand  eleven--two thousand twelve
 academic year and ending  in  the  two  thousand  fifteen--two  thousand
 sixteen academic year the state university of New York board of trustees
 shall  be  empowered  to  increase  the  resident  undergraduate rate of
 tuition by not more than three hundred dollars over the resident  under-
 graduate  rate  of tuition adopted by the board of trustees in the prior
 academic year, provided however that commencing with  the  two  thousand
 eleven--two thousand twelve academic year [and each year thereafter] AND
 ENDING IN THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN ACADEMIC YEAR
 if  the  annual resident undergraduate rate of tuition would exceed five
 thousand dollars, then a tuition credit for each  eligible  student,  as
 determined  and  calculated  by  the  New  York  state  higher education
 services corporation pursuant to section six  hundred  eighty-nine-a  of
 this  title, shall be applied toward the tuition charged for each semes-
 ter, quarter or term of study. Tuition for  each  semester,  quarter  or
 term  of study shall not be due for any student eligible to receive such
 tuition credit until  the  tuition  credit  is  calculated  and  applied
 against  the  tuition charged for the corresponding semester, quarter or
 term.
   (ii) COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
 ACADEMIC YEAR AND ENDING IN THE TWO THOUSAND TWENTY--TWO THOUSAND  TWEN-
 TY-ONE  ACADEMIC YEAR THE STATE UNIVERSITY OF NEW YORK BOARD OF TRUSTEES
 SHALL BE EMPOWERED  TO  INCREASE  THE  RESIDENT  UNDERGRADUATE  RATE  OF
 TUITION  BY  NOT  MORE THAN TWO HUNDRED DOLLARS OVER THE RESIDENT UNDER-
 GRADUATE RATE OF TUITION ADOPTED BY THE BOARD OF TRUSTEES IN  THE  PRIOR
 ACADEMIC YEAR, PROVIDED, HOWEVER THAT IF THE ANNUAL RESIDENT UNDERGRADU-
 ATE  RATE  OF TUITION WOULD EXCEED FIVE THOUSAND DOLLARS, THEN A TUITION

 S. 2009--C                         148                        A. 3009--C
 
 CREDIT FOR EACH ELIGIBLE STUDENT, AS DETERMINED AND  CALCULATED  BY  THE
 NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION PURSUANT TO SECTION
 SIX  HUNDRED  EIGHTY-NINE-A  OF  THIS TITLE, SHALL BE APPLIED TOWARD THE
 TUITION CHARGED FOR EACH SEMESTER, QUARTER OR TERM OF STUDY. TUITION FOR
 EACH SEMESTER, QUARTER OR TERM OF STUDY SHALL NOT BE DUE FOR ANY STUDENT
 ELIGIBLE  TO  RECEIVE  SUCH  TUITION  CREDIT UNTIL THE TUITION CREDIT IS
 CALCULATED AND APPLIED AGAINST THE TUITION CHARGED FOR THE CORRESPONDING
 SEMESTER, QUARTER OR TERM.  PROVIDED, FURTHER THAT THE REVENUE RESULTING
 FROM AN INCREASE IN THE RATE OF  TUITION  SHALL  BE  ALLOCATED  TO  EACH
 CAMPUS  PURSUANT  TO A PLAN APPROVED BY THE BOARD OF TRUSTEES TO SUPPORT
 INVESTMENTS  IN  NEW  CLASSROOM  FACULTY,  INSTRUCTION,  INITIATIVES  TO
 IMPROVE  STUDENT SUCCESS AND ON-TIME COMPLETION AND A TUITION CREDIT FOR
 EACH ELIGIBLE STUDENT.
   (III)  On  or  before  November  thirtieth,  two   thousand   [eleven]
 SEVENTEEN,  the  trustees  shall approve and submit to the chairs of the
 assembly ways and means committee and the senate finance  committee  and
 to  the  director  of the budget a master tuition plan setting forth the
 tuition rates that  the  trustees  propose  for  resident  undergraduate
 students  for  the [five] FOUR year period commencing with the two thou-
 sand [eleven] SEVENTEEN--two thousand [twelve]  EIGHTEEN  academic  year
 and  ending in the two thousand [fifteen] TWENTY--two thousand [sixteen]
 TWENTY-ONE academic year, and shall submit any  proposed  amendments  to
 such  plan  by  November  thirtieth  of  each subsequent year thereafter
 through November thirtieth, two thousand [fifteen] TWENTY, and  provided
 further, that with the approval of the board of trustees, each universi-
 ty  center  may  increase  non-resident undergraduate tuition rates each
 year by not more than ten percent over the tuition rates  of  the  prior
 academic  year  for  a  six year period commencing with the two thousand
 eleven--two thousand twelve academic year and ending in the two thousand
 sixteen--two thousand seventeen academic year.
   [(iii)] (IV) Beginning in state fiscal year  two  thousand  twelve-two
 thousand  thirteen and ending in state fiscal year two thousand fifteen-
 -two thousand sixteen, the state shall appropriate  and  make  available
 general fund operating support, including fringe benefits, for the state
 university  in  an amount not less than the amount appropriated and made
 available in the prior state fiscal year; provided, however, that if the
 governor declares a fiscal emergency, and communicates such emergency to
 the temporary president of the senate and speaker of the assembly, state
 support for operating expenses at the state university and city  univer-
 sity  may  be  reduced in a manner proportionate to one another, and the
 aforementioned provisions shall not apply.
   (V) BEGINNING IN STATE FISCAL YEAR TWO THOUSAND  SEVENTEEN--TWO  THOU-
 SAND  EIGHTEEN  AND ENDING IN STATE FISCAL YEAR TWO THOUSAND TWENTY--TWO
 THOUSAND TWENTY-ONE, THE STATE  SHALL  APPROPRIATE  AND  MAKE  AVAILABLE
 GENERAL FUND OPERATING SUPPORT, INCLUDING FRINGE BENEFITS, FOR THE STATE
 UNIVERSITY  IN  AN AMOUNT NOT LESS THAN THE AMOUNT APPROPRIATED AND MADE
 AVAILABLE IN THE PRIOR STATE FISCAL YEAR; PROVIDED, HOWEVER, THAT IF THE
 GOVERNOR DECLARES A FISCAL EMERGENCY, AND COMMUNICATES SUCH EMERGENCY TO
 THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY, STATE
 SUPPORT FOR OPERATING EXPENSES AT THE STATE UNIVERSITY AND CITY  UNIVER-
 SITY  MAY  BE  REDUCED IN A MANNER PROPORTIONATE TO ONE ANOTHER, AND THE
 AFOREMENTIONED  PROVISIONS SHALL NOT APPLY; PROVIDED FURTHER, THE  STATE
 SHALL  APPROPRIATE AND MAKE AVAILABLE GENERAL FUND SUPPORT TO FULLY FUND
 THE TUITION CREDIT PURSUANT TO SUBDIVISION TWO OF  SECTION  SIX  HUNDRED
 SIXTY-NINE-H OF THIS TITLE.

 S. 2009--C                         149                        A. 3009--C
 
   [(iv)] (VI) For the state university fiscal years commencing two thou-
 sand  eleven--two  thousand  twelve and ending two thousand fifteen--two
 thousand sixteen, each university center may set aside a portion of  its
 tuition  revenues  derived  from  tuition increases to provide increased
 financial  aid  for New York state resident undergraduate students whose
 net taxable income is eighty thousand dollars or  more  subject  to  the
 approval  of  a NY-SUNY 2020 proposal by the governor and the chancellor
 of the state university of New York. Nothing in this paragraph shall  be
 construed  as  to  authorize  that  students whose net taxable income is
 eighty thousand dollars or more  are  eligible  for  tuition  assistance
 program awards pursuant to section six hundred sixty-seven of this chap-
 ter.
   §  2.  Paragraph (a) of subdivision 7 of section 6206 of the education
 law, as amended by section 2 of part D of chapter  54  of  the  laws  of
 2016, is amended to read as follows:
   (a)  The  board  of  trustees  shall establish positions, departments,
 divisions and faculties; appoint and in accordance with  the  provisions
 of  law  fix  salaries  of instructional and non-instructional employees
 therein; establish and conduct courses and curricula;  prescribe  condi-
 tions of student admission, attendance and discharge; and shall have the
 power  to  determine  in its discretion whether tuition shall be charged
 and to regulate tuition charges, and  other  instructional  and  non-in-
 structional  fees and other fees and charges at the educational units of
 the city university. The trustees shall review  any  proposed  community
 college  tuition  increase  and the justification for such increase. The
 justification provided by the community college for such increase  shall
 include  a  detailed  analysis of ongoing operating costs, capital, debt
 service expenditures, and all revenues. The trustees shall not impose  a
 differential  tuition  charge  based  upon  need or income. All students
 enrolled in programs leading to like  degrees  at  the  senior  colleges
 shall  be  charged  a  uniform  rate of tuition, except for differential
 tuition rates  based  on  state  residency.  Notwithstanding  any  other
 provision of this paragraph, the trustees may authorize the setting of a
 separate  category  of  tuition  rate,  that  shall  be greater than the
 tuition rate for resident students and less than the  tuition  rate  for
 non-resident  students,  only for students enrolled in distance learning
 courses who are not residents of the state; provided, however, that:
   (i) Commencing with  the  two  thousand  eleven--two  thousand  twelve
 academic  year  and  ending  in  the  two thousand fifteen--two thousand
 sixteen academic year, the city university of New York board of trustees
 shall be empowered  to  increase  the  resident  undergraduate  rate  of
 tuition  by not more than three hundred dollars over the resident under-
 graduate rate of tuition adopted by the board of trustees in  the  prior
 academic  year,  provided  however that commencing with the two thousand
 eleven--two thousand twelve academic year  and  [each  year  thereafter]
 ENDING  WITH  THE  TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN ACADEMIC
 YEAR if the annual resident undergraduate rate of tuition  would  exceed
 five  thousand dollars, then a tuition credit for each eligible student,
 as determined and calculated by the  New  York  state  higher  education
 services  corporation  pursuant  to section six hundred eighty-nine-a of
 this chapter, shall be applied  toward  the  tuition  charged  for  each
 semester,  quarter  or term of study. Tuition for each semester, quarter
 or term of study shall not be due for any student  eligible  to  receive
 such  tuition  credit until the tuition credit is calculated and applied
 against the tuition charged for the corresponding semester,  quarter  or
 term.

 S. 2009--C                         150                        A. 3009--C
 
   (ii) COMMENCING WITH THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
 ACADEMIC  YEAR AND ENDING IN THE TWO THOUSAND TWENTY--TWO THOUSAND TWEN-
 TY-ONE ACADEMIC YEAR THE CITY UNIVERSITY OF NEW YORK BOARD  OF  TRUSTEES
 SHALL  BE  EMPOWERED  TO  INCREASE  THE  RESIDENT  UNDERGRADUATE RATE OF
 TUITION  BY  NOT  MORE THAN TWO HUNDRED DOLLARS OVER THE RESIDENT UNDER-
 GRADUATE RATE OF TUITION ADOPTED BY THE BOARD OF TRUSTEES IN  THE  PRIOR
 ACADEMIC  YEAR, PROVIDED HOWEVER THAT IF THE ANNUAL RESIDENT UNDERGRADU-
 ATE RATE OF TUITION WOULD EXCEED FIVE THOUSAND DOLLARS, THEN  A  TUITION
 CREDIT  FOR  EACH  ELIGIBLE STUDENT, AS DETERMINED AND CALCULATED BY THE
 NEW YORK STATE HIGHER EDUCATION SERVICES CORPORATION PURSUANT TO SECTION
 SIX HUNDRED EIGHTY-NINE-A OF THIS TITLE, SHALL  BE  APPLIED  TOWARD  THE
 TUITION CHARGED FOR EACH SEMESTER, QUARTER OR TERM OF STUDY. TUITION FOR
 EACH SEMESTER, QUARTER OR TERM OF STUDY SHALL NOT BE DUE FOR ANY STUDENT
 ELIGIBLE  TO  RECEIVE  SUCH  TUITION  CREDIT UNTIL THE TUITION CREDIT IS
 CALCULATED AND APPLIED AGAINST THE TUITION CHARGED FOR THE CORRESPONDING
 SEMESTER, QUARTER OR TERM.  PROVIDED, FURTHER THAT THE REVENUE RESULTING
 FROM AN INCREASE IN THE RATE OF  TUITION  SHALL  BE  ALLOCATED  TO  EACH
 CAMPUS  PURSUANT  TO A PLAN APPROVED BY THE BOARD OF TRUSTEES TO SUPPORT
 INVESTMENTS  IN  NEW  CLASSROOM  FACULTY,  INSTRUCTION,  INITIATIVES  TO
 IMPROVE  STUDENT SUCCESS AND ON-TIME COMPLETION AND A TUITION CREDIT FOR
 EACH ELIGIBLE STUDENT.
   (III)  On  or  before  November  thirtieth,  two   thousand   [eleven]
 SEVENTEEN,  the  trustees  shall approve and submit to the chairs of the
 assembly ways and means committee and the senate finance  committee  and
 to  the  director  of the budget a master tuition plan setting forth the
 tuition rates that  the  trustees  propose  for  resident  undergraduate
 students  for  the [five] FOUR year period commencing with the two thou-
 sand [eleven] SEVENTEEN--two thousand [twelve]  EIGHTEEN  academic  year
 and  ending in the two thousand [fifteen] TWENTY--two thousand [sixteen]
 TWENTY-ONE academic year, and shall submit any  proposed  amendments  to
 such  plan  by  November  thirtieth  of  each subsequent year thereafter
 through November thirtieth, two thousand [fifteen] TWENTY.
   [(iii)] (IV) Beginning in state fiscal year two  thousand  twelve--two
 thousand  thirteen and ending in state fiscal year two thousand fifteen-
 -two thousand sixteen, the state shall appropriate  and  make  available
 state support for operating expenses, including fringe benefits, for the
 city  university  in an amount not less than the amount appropriated and
 made available in the prior state fiscal year; provided,  however,  that
 if the governor declares a fiscal emergency, and communicates such emer-
 gency to the temporary president of the senate and speaker of the assem-
 bly,  state  support  for operating expenses of the state university and
 city university may be reduced in a manner proportionate to one another,
 and the aforementioned provisions shall not apply.
   (V) BEGINNING IN STATE FISCAL YEAR TWO THOUSAND  SEVENTEEN--TWO  THOU-
 SAND  EIGHTEEN  AND ENDING IN STATE FISCAL YEAR TWO THOUSAND TWENTY--TWO
 THOUSAND TWENTY-ONE, THE STATE  SHALL  APPROPRIATE  AND  MAKE  AVAILABLE
 GENERAL  FUND OPERATING SUPPORT, INCLUDING FRINGE BENEFITS, FOR THE CITY
 UNIVERSITY IN AN AMOUNT NOT LESS THAN THE AMOUNT APPROPRIATED  AND  MADE
 AVAILABLE IN THE PRIOR STATE FISCAL YEAR; PROVIDED, HOWEVER, THAT IF THE
 GOVERNOR DECLARES A FISCAL EMERGENCY, AND COMMUNICATES SUCH EMERGENCY TO
 THE TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY, STATE
 SUPPORT  FOR OPERATING EXPENSES AT THE STATE UNIVERSITY AND CITY UNIVER-
 SITY MAY BE REDUCED IN A MANNER PROPORTIONATE TO ONE  ANOTHER,  AND  THE
 AFOREMENTIONED   PROVISIONS SHALL NOT APPLY; PROVIDED FURTHER, THE STATE
 SHALL APPROPRIATE AND MAKE AVAILABLE GENERAL FUND SUPPORT TO FULLY  FUND

 S. 2009--C                         151                        A. 3009--C
 
 THE  TUITION  CREDIT  PURSUANT TO SUBDIVISION TWO OF SECTION SIX HUNDRED
 SIXTY-NINE-H OF THIS CHAPTER.
   §  3.  Section  359  of  the  education law is amended by adding a new
 subdivision 6 to read as follows:
   6. THE STATE UNIVERSITY TRUSTEES SHALL  ANNUALLY  REPORT  ON  HOW  THE
 REVENUE GENERATED HAS BEEN INVESTED IN FACULTY, INSTRUCTION, INITIATIVES
 TO  IMPROVE STUDENT SUCCESS AND ON-TIME COMPLETION AND STUDENT FINANCIAL
 ASSISTANCE FOR THE DURATION OF THE FOUR YEAR TUITION PLAN. THE  TRUSTEES
 SHALL SUBMIT THE REPORT BY SEPTEMBER FIRST OF EACH SUBSEQUENT YEAR.
   §  4.  Section  6206  of  the education law is amended by adding a new
 subdivision 19 to read as follows:
   19. THE CITY UNIVERSITY TRUSTEES SHALL  ANNUALLY  REPORT  ON  HOW  THE
 REVENUE GENERATED HAS BEEN INVESTED IN FACULTY, INSTRUCTION, INITIATIVES
 TO  IMPROVE STUDENT SUCCESS AND ON-TIME COMPLETION AND STUDENT FINANCIAL
 ASSISTANCE FOR THE DURATION OF THE FOUR YEAR TUITION PLAN. THE  TRUSTEES
 SHALL SUBMIT THE REPORT BY SEPTEMBER FIRST OF EACH SUBSEQUENT YEAR.
   § 5. Section 16 of chapter 260 of the laws of 2011 amending the educa-
 tion law and the New York state urban development corporation act relat-
 ing  to  establishing  components  of  the  NY-SUNY 2020 challenge grant
 program, as amended by section 5 of part D of chapter 54 of the laws  of
 2016, is amended to read as follows:
   §  16. This act shall take effect July 1, 2011; provided that sections
 one, two, three, four, five, six, eight, nine, ten, eleven,  twelve  and
 thirteen of this act shall expire [6] 10 years after such effective date
 when upon such date the provisions of this act shall be deemed repealed;
 and  provided  further  that  sections  fourteen and fifteen of this act
 shall expire 5 years after such effective date when upon such  date  the
 provisions of this act shall be deemed repealed.
   §  6. This act shall take effect immediately; provided that the amend-
 ments to subparagraph 4 of paragraph h of subdivision 2 of  section  355
 of  the education law made by section one of this act and the amendments
 to paragraph (a) of subdivision 7 of section 6206 of the  education  law
 made  by section two of this act shall not affect the expiration of such
 provisions and shall be deemed to expire therewith.
 
                                 PART KKK
 
   Section 1. The education law  is  amended  by  adding  a  new  section
 667-c-1 to read as follows:
   §  667-C-1.  NEW YORK STATE PART-TIME SCHOLARSHIP (PTS) AWARD PROGRAM.
 1. THE NEW YORK STATE PART-TIME SCHOLARSHIP (PTS) AWARD PROGRAM IS HERE-
 BY ESTABLISHED FOR  THE  PURPOSE  OF  PROVIDING  SCHOLARSHIP  AWARDS  TO
 STUDENTS  WHO  ATTEND A COMMUNITY COLLEGE AT THE STATE UNIVERSITY OF NEW
 YORK (SUNY) OR THE CITY UNIVERSITY OF NEW YORK  (CUNY)  ON  A  PART-TIME
 BASIS.
   2. TO BE ELIGIBLE, AN APPLICANT MUST MEET THE QUALIFICATIONS OF SUBDI-
 VISIONS THREE AND FIVE OF SECTION SIX HUNDRED SIXTY-ONE OF THIS ARTICLE,
 ENROLL  IN  AT  LEAST SIX BUT LESS THEN TWELVE CREDIT HOURS AT A SUNY OR
 CUNY COMMUNITY COLLEGE IN THE 2017-2018 ACADEMIC  YEAR,  OR  THEREAFTER,
 AND MAINTAIN A GRADE POINT AVERAGE OF 2.0.
   3.  A. SUCH AWARDS SHALL BE MADE TO ELIGIBLE APPLICANTS IN THE FOLLOW-
 ING PRIORITY:
   (I) FIRST, TO APPLICANTS WHO HAVE RECEIVED PAYMENT OF AN AWARD  PURSU-
 ANT  TO  THIS SECTION IN A PRIOR YEAR AND REMAIN IN GOOD ACADEMIC STAND-
 ING; AND

 S. 2009--C                         152                        A. 3009--C
 
   (II) SECOND, TO APPLICANTS IN DESCENDING ORDER BASED ON FINANCIAL NEED
 AS DETERMINED BY THE CORPORATION AND; PROVIDED THAT AWARDS MADE SHALL BE
 PROPORTIONATE TO THE TOTAL APPLICATIONS RECEIVED FOR  STUDENTS  ACCEPTED
 FOR  UNDERGRADUATE STUDY AT SUNY AND CUNY RESPECTIVELY. PROVIDED, HOWEV-
 ER,  IN  THE PROGRAM'S FIRST YEAR, FIRST PRIORITY SHALL BE IN ACCORDANCE
 WITH THIS SUBPARAGRAPH.
   B. IN THE EVENT THAT THERE ARE  MORE  APPLICANTS  WHO  HAVE  THE  SAME
 PRIORITY  THAN  THERE  ARE  REMAINING  SCHOLARSHIPS, THE PRESIDENT SHALL
 DISTRIBUTE THE REMAINING NUMBER OF  SUCH  SCHOLARSHIPS  BY  MEANS  OF  A
 LOTTERY OR OTHER FORM OF RANDOM SELECTION.
   4.  WITHIN  AMOUNTS  APPROPRIATED  THEREFOR, THE PRESIDENT SHALL GRANT
 AWARDS TO ELIGIBLE APPLICANTS TO COVER THE COST OF SIX CREDIT HOURS  PER
 SEMESTER  AT A SUNY OR CUNY COMMUNITY COLLEGE, PROVIDED HOWEVER, THAT NO
 SUCH AWARD SHALL EXCEED FIFTEEN HUNDRED DOLLARS PER SEMESTER.
   5. PTS AWARDS SHALL BE GRANTED PURSUANT TO THIS SECTION  FOR  NO  MORE
 THAN  FOUR  CONSECUTIVE  ACADEMIC SEMESTERS PURSUANT TO FUTURE APPROPRI-
 ATIONS FOR THE CONTINUATION OF THIS PROGRAM.
   6. THE CORPORATION IS AUTHORIZED TO PROMULGATE RULES AND  REGULATIONS,
 AND  MAY PROMULGATE EMERGENCY REGULATIONS, NECESSARY FOR THE IMPLEMENTA-
 TION OF THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.
 
                                 PART LLL
 
   Section 1. On or before June 30, 2018, the  president  of  the  higher
 education  services  corporation shall report on options to make college
 more affordable for New York students and their families and shall issue
 such report to the governor, the temporary president of the senate,  the
 speaker of the assembly, the senate finance committee, the assembly ways
 and  means committee and the higher education committees of the legisla-
 ture.
   § 2. The report shall, at a minimum: (1) explore options for a program
 to allow qualified residents to refinance student loan debt at favorable
 interest rates including options to  refinance  student  loan  debt  for
 individuals  who  have  been  out of college for at least ten years; (2)
 analyze alternative methods to provide student loan  debt  relief  which
 shall  include  a  review  of  other states' policies on minimizing such
 debt; (3) review student housing at the state university of New York and
 city university of New York which shall include a comparison of  student
 charges  and  facility  operational costs, as well as occupancy policies
 and requirements; (4) review programs and options to enable families  to
 prepare  for  college  costs through various programs including pre-paid
 tuition programs and other college savings programs; (5) examine afford-
 ability initiatives at public and private colleges which may include but
 not be limited to textbook affordability, reducing the cost  of  student
 housing,  student transportation, reduction of administrative costs, and
 the creation of on-campus or community job opportunity for students; (6)
 and in consultation with the chancellor of the state university  of  New
 York  and  the chancellor of the city university of New York examine the
 process by which students, who are receiving support through opportunity
 programs or other programs that provide additional academic support, are
 able to maintain such support when such students transfer to a different
 campus or transfer from a community college to a senior or  state  oper-
 ated  college.   Information presented in the report will allow colleges
 to explore opportunities to implement college affordability options.

 S. 2009--C                         153                        A. 3009--C
 
   § 3. This act shall take effect immediately and shall  expire  and  be
 deemed repealed January 1, 2019.
 
                                 PART MMM
 
   Section  1.  Legislative intent. The legislature hereby recognizes the
 need to invest in individuals committed to working in the field of child
 welfare  by  providing  higher  education  incentives  for  current  and
 prospective  employees.  This  workforce  is  in  charge of ensuring the
 health, safety, and well-being of our state's most  vulnerable  children
 and  families. By providing current and prospective employees the oppor-
 tunity for affordable higher education, we are enhancing  their  ability
 to  meet  the needs of the children and youth in care, many of whom have
 experienced profound trauma, as well as providing the skills  needed  to
 operate in today's changing health landscape.
   §  2.  The  education  law is amended by adding a new section 679-h to
 read as follows:
   § 679-H. NEW YORK STATE CHILD  WELFARE  WORKER  INCENTIVE  SCHOLARSHIP
 PROGRAM.  1.  PURPOSE.  THE PRESIDENT SHALL GRANT SCHOLARSHIP AWARDS FOR
 THE PURPOSE OF ENHANCING THE PROFICIENCY OF CURRENT CHILD WELFARE  WORK-
 ERS  IN NEW YORK STATE. SUCH AWARDS SHALL BE MADE ON A COMPETITIVE BASIS
 TO APPLICANTS WHO ARE CURRENTLY EMPLOYED AT A  VOLUNTARY  NOT-FOR-PROFIT
 CHILD  WELFARE  AGENCY IN NEW YORK STATE LICENSED BY THE OFFICE OF CHIL-
 DREN AND FAMILY SERVICES, OR EMPLOYED WITHIN  SUCH  STATE  AGENCY  AS  A
 CHILD  WELFARE  WORKER,  WITH  AT  LEAST  TWO  YEARS' EXPERIENCE AND ARE
 ENROLLING IN AN APPROVED PROGRAM TO OBTAIN A DEGREE  THAT  WILL  ENHANCE
 THEIR ABILITY TO WORK IN SUCH AGENCY.
   2.  ELIGIBILITY. TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS SECTION,
 APPLICANTS  SHALL:  A. BE CURRENTLY EMPLOYED AT A VOLUNTARY NOT-FOR-PRO-
 FIT CHILD WELFARE AGENCY IN NEW YORK STATE LICENSED  BY  THE  OFFICE  OF
 CHILDREN AND FAMILY SERVICES, WITH AT LEAST TWO YEARS OF QUALIFIED EXPE-
 RIENCE;
   B.  BE  MATRICULATED IN AN UNDERGRADUATE OR GRADUATE DEGREE PROGRAM AT
 AN INSTITUTION OF HIGHER EDUCATION LOCATED WITHIN NEW YORK  STATE  IN  A
 PROGRAM OF STUDY THAT WOULD ENHANCE THEIR ABILITY TO WORK IN SUCH AGENCY
 AS DETERMINED BY THE PRESIDENT;
   C. AGREE TO WORK IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY IN
 NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES AS
 A CHILD WELFARE WORKER ON A FULL TIME BASIS FOR A PERIOD OF NO LESS THAN
 FIVE  CONTINUOUS  YEARS  UPON COMPLETION OF SUCH DEGREE PROGRAM WITHIN A
 REASONABLE PERIOD OF TIME AND MAINTAIN RESIDENCY IN NEW YORK  STATE  FOR
 SUCH PERIOD OF EMPLOYMENT; AND
   D.  COMPLY  WITH  SUBDIVISIONS  THREE  AND FIVE OF SECTION SIX HUNDRED
 SIXTY-ONE OF THIS PART.
   3. AWARD CONDITIONS AND REQUIREMENTS.  A. WITHIN AMOUNTS  APPROPRIATED
 THEREFORE  AND  BASED  ON  AVAILABILITY  OF FUNDS, SCHOLARSHIPS SHALL BE
 GRANTED BEGINNING WITH THE TWO THOUSAND SEVENTEEN -- TWO THOUSAND  EIGH-
 TEEN  ACADEMIC  YEAR AND THEREAFTER ON A COMPETITIVE BASIS TO APPLICANTS
 WHOM THE CORPORATION HAS CERTIFIED ARE ELIGIBLE TO RECEIVE SUCH  AWARDS;
 AND WHO AGREE TO WORK IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY
 IN NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES
 AS  A  CHILD WELFARE WORKER ON A FULL TIME BASIS FOR A PERIOD OF NO LESS
 THAN FIVE CONTINUOUS YEARS UPON  COMPLETION  OF  SUCH  DEGREE  WITHIN  A
 REASONABLE  PERIOD  OF TIME AND MAINTAIN RESIDENCY IN NEW YORK STATE FOR
 SUCH PERIOD OF EMPLOYMENT.

 S. 2009--C                         154                        A. 3009--C
 
   B. AN APPLICANT MUST MAKE EVERY REASONABLE EFFORT TO OBTAIN EMPLOYMENT
 IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY  IN  NEW  YORK  STATE
 LICENSED  BY  THE  OFFICE  OF  CHILDREN  AND  FAMILY SERVICES AS A CHILD
 WELFARE WORKER UPON GRADUATION.
   4.  AMOUNT. THE CORPORATION SHALL GRANT SUCH AWARDS WITHIN THE AMOUNTS
 APPROPRIATED FOR SUCH PURPOSE AND BASED ON AVAILABILITY OF FUNDS ACCORD-
 ING TO A SCHEDULE TO BE DETERMINED BY THE CORPORATION IN AN AMOUNT:
   A. EQUAL TO THE TUITION CHARGED TO STATE RESIDENT  STUDENTS  ATTENDING
 AN UNDERGRADUATE OR GRADUATE DEGREE PROGRAM, AS APPLICABLE, AT THE STATE
 UNIVERSITY  OF NEW YORK; THE AVERAGE MANDATORY FEES CHARGED AT THE STATE
 UNIVERSITY OF NEW YORK, OR THE ACTUAL TUITION AND FEES  CHARGED  TO  THE
 RECIPIENT,  WHICHEVER  IS  LESS;  AND  THE  AVERAGE  NON-TUITION COST OF
 ATTENDANCE, AS DETERMINED BY THE CORPORATION  AND  AS  APPROVED  BY  THE
 DIRECTOR  OF  THE  BUDGET,  FOR A STUDENT AT THE STATE UNIVERSITY OF NEW
 YORK OR ACTUAL NON-TUITION  COST  OF  ATTENDANCE  AT  SUCH  INSTITUTION,
 WHICHEVER  IS  LESS  PROVIDED  THAT  THE SCHOLARSHIP SHALL NOT EXCEED AN
 AMOUNT THAT IS EQUAL TO THE TOTAL  COST  OF  ATTENDANCE  DETERMINED  FOR
 FEDERAL TITLE IV STUDENT FINANCIAL AID PURPOSES, LESS ALL OTHER SCHOLAR-
 SHIPS  AND  GRANTS PROVIDED BY NEW YORK STATE, OTHER STATES, THE FEDERAL
 GOVERNMENT, OR OTHER GOVERNMENTS, AND THE AMOUNT OF EDUCATIONAL BENEFITS
 PAID UNDER ANY  PROGRAM  THAT  WOULD  DUPLICATE  THE  PURPOSES  OF  THIS
 PROGRAM,  PROVIDED THAT ANY SCHOLARSHIPS OR GRANTS PROVIDED TO A RECIPI-
 ENT BY THE INSTITUTION WHICH ARE INTENDED TO FUND  ANY  PORTION  OF  THE
 DIFFERENCE  BETWEEN  THE  ANNUAL  STATE  AWARD  AND  THE ACTUAL COSTS OF
 ATTENDANCE AT ANY SUCH INSTITUTION SHALL NOT BE CONSIDERED TO  DUPLICATE
 THE PURPOSES OF THIS PROGRAM.
   B. NOT TO EXCEED TWENTY THOUSAND DOLLARS FOR A MASTER'S DEGREE PROGRAM
 AT  A  PRIVATE  INSTITUTION;  THE  AVERAGE MANDATORY FEES CHARGED AT THE
 PRIVATE INSTITUTION, OR THE ACTUAL  TUITION  AND  FEES  CHARGED  TO  THE
 RECIPIENT,  WHICHEVER  IS  LESS;  AND  THE  AVERAGE  NON-TUITION COST OF
 ATTENDANCE, AS DETERMINED BY THE CORPORATION  AND  AS  APPROVED  BY  THE
 DIRECTOR  OF  THE  BUDGET,  FOR A STUDENT AT SUCH PRIVATE INSTITUTION OR
 ACTUAL NON-TUITION COST OF ATTENDANCE AT SUCH INSTITUTION, WHICHEVER  IS
 LESS,  PROVIDED  THAT THE SCHOLARSHIP SHALL NOT EXCEED AN AMOUNT THAT IS
 EQUAL TO THE TOTAL COST OF ATTENDANCE DETERMINED FOR  FEDERAL  TITLE  IV
 STUDENT  FINANCIAL  AID PURPOSES, LESS ALL OTHER SCHOLARSHIPS AND GRANTS
 PROVIDED BY NEW YORK STATE, OTHER STATES,  THE  FEDERAL  GOVERNMENT,  OR
 OTHER GOVERNMENTS, AND THE AMOUNT OF EDUCATIONAL BENEFITS PAID UNDER ANY
 PROGRAM THAT WOULD DUPLICATE THE PURPOSES OF THIS PROGRAM, PROVIDED THAT
 ANY  SCHOLARSHIPS  OR  GRANTS PROVIDED TO A RECIPIENT BY THE INSTITUTION
 WHICH ARE INTENDED TO FUND ANY PORTION OF  THE  DIFFERENCE  BETWEEN  THE
 ANNUAL STATE AWARD AND THE ACTUAL COSTS OF ATTENDANCE AT ANY SUCH INSTI-
 TUTION  SHALL  NOT  BE  CONSIDERED  TO  DUPLICATE  THE  PURPOSES OF THIS
 PROGRAM.
   5. OTHER AWARDS. AWARD RECIPIENTS SHALL BE ELIGIBLE TO APPLY FOR OTHER
 AWARDS.
   6. DURATION. AN AWARD SHALL ENTITLE THE RECIPIENT TO  ANNUAL  PAYMENTS
 FOR EITHER AN ASSOCIATE'S DEGREE, BACHELOR'S DEGREE, OR GRADUATE DEGREE.
 AN  ELIGIBLE RECIPIENT ENROLLED IN AN ELIGIBLE TWO YEAR PROGRAM OF STUDY
 SHALL NOT RECEIVE AN AWARD FOR MORE THAN TWO ACADEMIC YEARS. AN ELIGIBLE
 RECIPIENT ENROLLED IN AN ELIGIBLE UNDERGRADUATE PROGRAM OF  STUDY  SHALL
 NOT  RECEIVE AN AWARD FOR MORE THAN FOUR ACADEMIC YEARS OF UNDERGRADUATE
 STUDY OR FIVE ACADEMIC YEARS IF THE PROGRAM OF STUDY  NORMALLY  REQUIRES
 FIVE  YEARS.  AN  ELIGIBLE  RECIPIENT  ENROLLED IN A GRADUATE PROGRAM OF
 STUDY SHALL NOT RECEIVE AN AWARD  FOR  MORE  THAN  TWO  ACADEMIC  YEARS.

 S. 2009--C                         155                        A. 3009--C
 
 NOTWITHSTANDING,  SUCH  DURATION MAY BE EXTENDED FOR AN ALLOWABLE INTER-
 RUPTION OF STUDY AS DETERMINED BY THE CORPORATION.
   7.  PENALTIES  FOR NONCOMPLIANCE.   A. THE CORPORATION MAY COLLECT THE
 FULL AMOUNT OF THE AWARD GIVEN PURSUANT TO THIS SECTION, PLUS  INTEREST,
 ACCORDING TO A SCHEDULE TO BE DETERMINED BY THE CORPORATION, IF: (I) THE
 RECIPIENT  FAILS  TO  COMPLETE  THEIR DEGREE PROGRAM WITHIN A REASONABLE
 TIME AS DETERMINED BY THE  CORPORATION;  OR  (II)  ONE  YEAR  AFTER  THE
 COMPLETION  OF  THE  DEGREE PROGRAM IT IS FOUND THAT A RECIPIENT DID NOT
 BEGIN FULL-TIME EMPLOYMENT AT A VOLUNTARY NOT-FOR-PROFIT  CHILD  WELFARE
 AGENCY  IN  NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY
 SERVICES AS A CHILD WELFARE WORKER; OR  (III)  THE  RECIPIENT  FAILS  TO
 COMPLETE  FIVE  CONTINUOUS  YEARS OF FULL-TIME EMPLOYMENT AT A VOLUNTARY
 NOT-FOR-PROFIT CHILD WELFARE AGENCY IN THE STATE LICENSED BY THE  OFFICE
 OF  CHILDREN  AND  FAMILY SERVICES AS A CHILD WELFARE WORKER OR MAINTAIN
 RESIDENCY IN NEW YORK STATE FOR SUCH PERIOD OF EMPLOYMENT; OR  (IV)  THE
 RECIPIENT FAILS TO RESPOND TO REQUESTS BY THE CORPORATION FOR THE STATUS
 OF  HIS  OR  HER ACADEMIC OR PROFESSIONAL PROGRESS. THE TERMS AND CONDI-
 TIONS OF THIS SUBDIVISION SHALL BE DEFERRED FOR ANY INTERRUPTION  IN  AN
 UNDERGRADUATE  OR  GRADUATE  STUDY  OR  EMPLOYMENT AS ESTABLISHED BY THE
 RULES AND REGULATIONS OF THE CORPORATION. ANY OBLIGATION TO COMPLY  WITH
 SUCH  PROVISIONS AS OUTLINED IN THIS SECTION SHALL BE CANCELLED UPON THE
 DEATH OF THE RECIPIENT. NOTWITHSTANDING ANY PROVISIONS OF THIS  SUBDIVI-
 SION  TO THE CONTRARY, THE CORPORATION IS AUTHORIZED TO PROMULGATE RULES
 AND REGULATIONS NECESSARY FOR THE WAIVER OF SUSPENSION OF ANY  FINANCIAL
 OBLIGATION WHICH WOULD INVOLVE EXTREME HARDSHIP.
   8. RECIPIENT SELECTION. THE PRESIDENT MAY ESTABLISH:
   A. AN APPLICATION DEADLINE; AND
   B.  A  METHOD  OF  SELECTING RECIPIENTS IF IN ANY GIVEN YEAR THERE ARE
 INSUFFICIENT FUNDS TO COVER THE NEEDS OF ALL  APPLICANTS  AND  RETURNING
 RECIPIENTS.
   9.  RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
 RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS,  NECES-
 SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION INCLUDING,
 BUT  NOT  LIMITED TO, THE CRITERIA TO DISTRIBUTING THE AWARDS, WHICH MAY
 INCLUDE A LOTTERY OR OTHER FORM OF RANDOM SELECTION,  AND  THE  RATE  OF
 INTEREST CHARGES FOR REPAYMENT OF THE STUDENT LOAN.
   §  3.  The  education  law is amended by adding a new section 679-i to
 read as follows:
   § 679-I.  NEW YORK STATE CHILD WELFARE WORKER LOAN FORGIVENESS  INCEN-
 TIVE  PROGRAM.  1.  PURPOSE.  THE  PRESIDENT  SHALL  GRANT  STUDENT LOAN
 FORGIVENESS AWARDS FOR THE PURPOSE OF ATTRACTING WORKERS TO BE  EMPLOYED
 IN  VOLUNTARY  NOT-FOR-PROFIT  CHILD  WELFARE AGENCIES IN NEW YORK STATE
 LICENSED BY THE OFFICE OF  CHILDREN  AND  FAMILY  SERVICES  AS  A  CHILD
 WELFARE  WORKER.  SUCH  AWARDS  SHALL BE MADE ON A COMPETITIVE BASIS, IN
 ACCORDANCE WITH RULES AND REGULATIONS PROMULGATED BY THE CORPORATION FOR
 SUCH PURPOSES, TO APPLICANTS WHO MEET THE ELIGIBILITY CRITERIA.
   2. ELIGIBILITY. TO BE ELIGIBLE FOR AN AWARD PURSUANT TO THIS  SECTION,
 APPLICANTS SHALL:
   A.  HAVE  GRADUATED  AND  OBTAINED AN UNDERGRADUATE OR GRADUATE DEGREE
 FROM A COLLEGE OR UNIVERSITY LOCATED IN NEW YORK STATE;
   B. HAVE OUTSTANDING STUDENT LOAN DEBT FROM OBTAINING SUCH DEGREE;
   C. AGREE TO WORK IN A VOLUNTARY NOT-FOR-PROFIT CHILD WELFARE AGENCY IN
 NEW YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES AS
 A CHILD WELFARE WORKER, ON A FULL TIME BASIS FOR A  PERIOD  OF  NO  LESS
 THAN FIVE YEARS;
   D. APPLY FOR THIS PROGRAM WITHIN TWO YEARS OF COLLEGE GRADUATION; AND

 S. 2009--C                         156                        A. 3009--C
 
   E.  COMPLY  WITH  SUBDIVISIONS  THREE  AND FIVE OF SECTION SIX HUNDRED
 SIXTY-ONE OF THIS PART.
   3.  AWARDS.  AWARDS  SHALL  BE  GRANTED TO QUALIFIED APPLICANTS IN THE
 AMOUNT OF UP TO TEN THOUSAND DOLLARS PER YEAR,  PER  APPLICANT,  NOT  TO
 EXCEED  A  DURATION  OF FIVE YEARS AND NOT TO EXCEED THE TOTAL AMOUNT OF
 SUCH APPLICANT'S STUDENT LOAN DEBT. THE  CORPORATION  SHALL  GRANT  SUCH
 AWARDS  WITHIN  AMOUNTS  APPROPRIATED FOR SUCH PURPOSES AND BASED ON THE
 AVAILABILITY OF FUNDS. NO ONE APPLICANT SHALL RECEIVE MORE THAN A  TOTAL
 OF FIFTY THOUSAND DOLLARS UPON THE END OF A FIVE-YEAR PERIOD.
   4.  PRIORITY.  FIRST  PRIORITY  SHALL  BE GIVEN TO APPLICANTS WHO HAVE
 RECEIVED PAYMENT OF AN AWARD PURSUANT TO THIS SECTION IN  A  PRIOR  YEAR
 AND  REMAIN  ELIGIBLE.  SECOND PRIORITY SHALL BE GIVEN TO APPLICANTS WHO
 ARE COMPLETING THE SECOND, THIRD, FOURTH  OR  FIFTH  YEAR  OF  FULL-TIME
 EMPLOYMENT  AT  A  VOLUNTARY  NOT-FOR-PROFIT CHILD WELFARE AGENCY IN NEW
 YORK STATE LICENSED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES. THIRD
 PRIORITY SHALL BE GIVEN TO AN APPLICANT  WHO  CAN  DEMONSTRATE  ECONOMIC
 NEED  BUT  DID  NOT  RECEIVE  AN  AWARD  DURING  THE  FIRST YEAR OF THIS
 PROGRAM'S OPERATION. IF LARGER NUMBERS OF APPLICANTS ARE ELIGIBLE PURSU-
 ANT TO THIS SUBDIVISION THAN FUNDS AVAILABLE, APPLICANTS SHALL BE CHOSEN
 PURSUANT TO  RULES  AND  REGULATIONS  PROMULGATED  BY  THE  CORPORATION;
 PROVIDED,  HOWEVER, THAT EACH APPLICANT CHOSEN SHALL RECEIVE AN AWARD OF
 UP TO TEN THOUSAND DOLLARS IN EACH YEAR SUCH APPLICANT IS ACCEPTED  INTO
 THE PROGRAM.
   5.  RULES AND REGULATIONS. THE CORPORATION IS AUTHORIZED TO PROMULGATE
 RULES AND REGULATIONS, AND MAY PROMULGATE EMERGENCY REGULATIONS,  NECES-
 SARY FOR THE IMPLEMENTATION OF THE PROVISIONS OF THIS SECTION.
   § 4. This act shall take effect immediately.
 
                                 PART NNN
 
   Section  1.  This  act enacts into law components of legislation which
 are necessary to implement legislation relating to workers' compensation
 and insurance. Each component is wholly contained within a Subpart iden-
 tified as Subparts A through J. The effective date for  each  particular
 provision contained within such Subpart is set forth in the last section
 of  such  Subpart.  Any  provision  in  any  section  contained within a
 Subpart, including the effective date of  the  Subpart,  which  makes  a
 reference  to a section "of this act", when used in connection with that
 particular component, shall be deemed to mean and refer  to  the  corre-
 sponding  section  of the Subpart in which it is found. Section three of
 this act sets forth the general effective date of this act.
 
                                 SUBPART A
 
   Section 1. Paragraph w of subdivision 3 of section 15 of the  workers'
 compensation  law,  as  amended  by  chapter  6  of the laws of 2007, is
 amended to read as follows:
   w. Other cases. In all other cases of  permanent  partial  disability,
 the  compensation  shall  be  sixty-six  and  two-thirds  percent of the
 difference between the injured employee's average weekly wages  and  his
 or her wage-earning capacity thereafter in the same employment or other-
 wise.    Compensation  under  this paragraph shall be payable during the
 continuance of such permanent partial disability, WITHOUT THE  NECESSITY
 FOR  THE CLAIMANT WHO IS ENTITLED TO BENEFITS AT THE TIME OF CLASSIFICA-
 TION TO DEMONSTRATE ONGOING ATTACHMENT TO THE LABOR MARKET, but  subject
 to  reconsideration of the degree of such impairment by the board on its

 S. 2009--C                         157                        A. 3009--C
 
 own motion or upon application of any party  in  interest  however,  all
 compensation  payable  under  this  paragraph  shall not exceed (i) five
 hundred twenty-five weeks in cases in which  the  loss  of  wage-earning
 capacity is greater than ninety-five percent; (ii) five hundred weeks in
 cases  in which the loss of wage-earning capacity is greater than ninety
 percent but not more than ninety-five percent; (iii) four hundred seven-
 ty-five weeks in cases in which the loss  of  wage-earning  capacity  is
 greater  than eighty-five percent but not more than ninety percent; (iv)
 four hundred fifty weeks in cases in  which  the  loss  of  wage-earning
 capacity  is  greater  than eighty percent but not more than eighty-five
 percent; (v) four hundred twenty-five weeks in cases in which  the  loss
 of  wage-earning  capacity  is greater than seventy-five percent but not
 more than eighty percent; (vi) four hundred weeks in cases in which  the
 loss  of  wage-earning  capacity is greater than seventy percent but not
 more than seventy-five percent; (vii) three hundred  seventy-five  weeks
 in  cases  in  which  the  loss of wage-earning capacity is greater than
 sixty percent but not more than seventy percent;  (viii)  three  hundred
 fifty  weeks  in  cases  in  which  the loss of wage-earning capacity is
 greater than fifty percent but not more than sixty percent;  (ix)  three
 hundred  weeks  in  cases  in which the loss of wage-earning capacity is
 greater than forty percent but not more  than  fifty  percent;  (x)  two
 hundred  seventy-five  weeks  in cases in which the loss of wage-earning
 capacity is greater than thirty percent but not more than forty percent;
 (xi) two hundred fifty weeks in cases in which the loss of  wage-earning
 capacity  is  greater  than  fifteen  percent  but  not more than thirty
 percent; and (xii) two hundred twenty-five weeks in cases in  which  the
 loss  of wage-earning capacity is fifteen percent or less.  FOR A CLAIM-
 ANT WITH A DATE OF ACCIDENT OR DISABLEMENT AFTER THE EFFECTIVE  DATE  OF
 THE  CHAPTER  OF  THE  LAWS  OF TWO THOUSAND SEVENTEEN THAT AMENDED THIS
 SUBDIVISION, WHERE THE CARRIER OR  EMPLOYER  HAS  PROVIDED  COMPENSATION
 PURSUANT  TO  SUBDIVISION FIVE OF THIS SECTION BEYOND ONE HUNDRED THIRTY
 WEEKS FROM THE DATE OF ACCIDENT OR DISABLEMENT, ALL SUBSEQUENT WEEKS  IN
 WHICH  COMPENSATION WAS PAID SHALL BE CONSIDERED TO BE BENEFIT WEEKS FOR
 PURPOSES OF THIS SECTION, WITH THE CARRIER OR EMPLOYER RECEIVING  CREDIT
 FOR  ALL  SUCH  SUBSEQUENT  WEEKS  AGAINST THE AMOUNT OF MAXIMUM BENEFIT
 WEEKS WHEN PERMANENT PARTIAL DISABILITY UNDER  THIS  SECTION  IS  DETER-
 MINED.  IN THE EVENT OF PAYMENT FOR INTERMITTENT TEMPORARY PARTIAL DISA-
 BILITY PAID AFTER ONE HUNDRED THIRTY WEEKS FROM THE DATE OF ACCIDENT  OR
 DISABLEMENT,  SUCH TIME SHALL BE REDUCED TO A NUMBER OF WEEKS, FOR WHICH
 THE CARRIER WILL RECEIVE A CREDIT AGAINST  THE  MAXIMUM  BENEFIT  WEEKS.
 FOR  A  CLAIMANT WITH A DATE OF ACCIDENT OR DISABLEMENT AFTER THE EFFEC-
 TIVE DATE OF THE CHAPTER OF THE LAWS  OF  TWO  THOUSAND  SEVENTEEN  THAT
 AMENDED  THIS  SUBDIVISION,  WHEN PERMANENCY IS AT ISSUE, AND A CLAIMANT
 HAS SUBMITTED MEDICAL EVIDENCE THAT HE OR SHE IS NOT AT MAXIMUM  MEDICAL
 IMPROVEMENT, AND THE CARRIER HAS PRODUCED OR HAS HAD A REASONABLE OPPOR-
 TUNITY  TO PRODUCE AN INDEPENDENT MEDICAL EXAMINATION CONCERNING MAXIMUM
 MEDICAL IMPROVEMENT, AND THE BOARD HAS DETERMINED THAT THE  CLAIMANT  IS
 NOT  YET AT MAXIMUM MEDICAL IMPROVEMENT, THE CARRIER SHALL NOT RECEIVE A
 CREDIT FOR BENEFIT WEEKS PRIOR  TO  A  FINDING  THAT  THE  CLAIMANT  HAS
 REACHED  MAXIMUM  MEDICAL  IMPROVEMENT,  AT WHICH TIME THE CARRIER SHALL
 RECEIVE CREDIT FOR ANY WEEKS OF TEMPORARY DISABILITY  PAID  TO  CLAIMANT
 AFTER  SUCH FINDING AGAINST THE MAXIMUM BENEFIT WEEKS AWARDED UNDER THIS
 SUBDIVISION. For those claimants  classified  as  permanently  partially
 disabled  who  no  longer  receive  indemnity payments because they have
 surpassed  their  number  of  maximum  benefit  weeks,   the   following
 provisions will apply:

 S. 2009--C                         158                        A. 3009--C
 
   (1)  There  will be a presumption that medical services shall continue
 notwithstanding the completion of the time period for  compensation  set
 forth  in this section and the burden of going forward and the burden of
 proof will lie with the carrier, self-insured employer or  state  insur-
 ance  fund in any application before the board to discontinue or suspend
 such services. Medical services will continue during the pendency of any
 such application and any appeals thereto.
   (2) The board is directed to promulgate regulations that establish  an
 independent  review  and  appeal  by  an  outside agent or entity of the
 board's choosing of any  administrative  law  judge's  determination  to
 discontinue  or suspend medical services before a final determination of
 the board.
   § 2. Subdivisions 3 and 4 of section 35 of the  workers'  compensation
 law, as added by chapter 6 of the laws of 2007, the opening paragraph of
 subdivision  4 as further amended by section 104 of part A of chapter 62
 of the laws of 2011, are amended to read as follows:
   3. Extreme hardship redetermination. In cases where the loss of  wage-
 earning capacity is greater than [eighty] SEVENTY-FIVE percent, a claim-
 ant  may  request,  within the year prior to the scheduled exhaustion of
 indemnity benefits under paragraph w of  subdivision  three  of  section
 fifteen  of  this  article,  that  the  board reclassify the claimant to
 permanent total disability or total industrial disability due to factors
 reflecting extreme hardship.
   4. Annual safety net reporting. The [commissioner of labor] BOARD,  in
 conjunction  with  the [board] COMMISSIONER OF LABOR and the superinten-
 dent of financial services, shall track  all  claimants  who  have  been
 awarded  permanent  partial  disability  status  and  report annually on
 December first, beginning in two thousand eight, to  the  governor,  the
 speaker  of  the  assembly,  the  majority leader of the senate, and the
 chairs of the labor, ways and means and finance committees of the assem-
 bly and senate:
   (i) The number of said claimants who have:
   (1) returned to gainful employment;
   (2) been recategorized as being totally industrially disabled;
   (3) remain subject to duration limitations set forth in paragraph w of
 subdivision three of section fifteen of this article; and
   (4) not returned to work, and whose indemnity payments have expired.
   (ii) The additional steps the commissioner contemplates are  necessary
 to  minimize the number of workers who have neither returned to work nor
 been recategorized from permanent partial disability.
   § 3. Section 23 of  the  workers'  compensation  law,  as  amended  by
 section  10  of part GG of chapter 57 of the laws of 2013, is amended to
 read as follows:
   § 23. Appeals. An award or decision of the board shall  be  final  and
 conclusive  upon  all  questions within its jurisdiction, as against the
 state fund or between the parties, unless reversed or modified on appeal
 therefrom as hereinafter provided. Any  party  may  within  thirty  days
 after  notice  of  the filing of an award or decision of a referee, file
 with the board an application in writing for a modification  or  rescis-
 sion  or  review of such award or decision, as provided in this chapter.
 The board shall render its decision upon such application in writing and
 shall include in such decision a statement of the facts which formed the
 basis of its action on the issues raised before it on such  application.
 Within  thirty  days after notice of the decision of the board upon such
 application has been served upon the  parties,  or  within  thirty  days
 after notice of an administrative redetermination review decision by the

 S. 2009--C                         159                        A. 3009--C
 
 chair  pursuant  to  subdivision  five of section fifty-two, section one
 hundred thirty-one or section one hundred forty-one-a  of  this  chapter
 has been served upon any party in interest, an appeal may be taken ther-
 efrom  to the appellate division of the supreme court, third department,
 by any party in interest, including an employer  insured  in  the  state
 fund;  provided,  however,  that any party in interest may within thirty
 days after notice of the filing of the board panel's decision  with  the
 secretary  of  the board, make application in writing for review thereof
 by the full board. If the decision or determination was that of a  panel
 of the board and there was a dissent from such decision or determination
 other  than a dissent the sole basis of which is to refer the case to an
 impartial specialist, OR IF THERE WAS A DECISION OR DETERMINATION BY THE
 PANEL WHICH REDUCED THE LOSS OF WAGE EARNING CAPACITY FINDING MADE BY  A
 COMPENSATION  CLAIMS  REFEREE  PURSUANT TO SUBPARAGRAPH W OF SUBDIVISION
 THREE OF SECTION FIFTEEN OF THIS ARTICLE FROM A PERCENTAGE AT  OR  ABOVE
 THE  PERCENTAGE SET FORTH IN SUBDIVISION THREE OF SECTION THIRTY-FIVE OF
 THIS ARTICLE WHEREBY A CLAIMANT  WOULD  BE  ELIGIBLE  TO  APPLY  FOR  AN
 EXTREME  HARDSHIP  REDETERMINATION  TO A PERCENTAGE BELOW THE THRESHOLD,
 the full board shall review and affirm, modify or rescind such  decision
 or  determination  in  the  same  manner as herein above provided for an
 award or decision of a referee.  If the decision  or  determination  was
 that of a unanimous panel of the board, or there was a dissent from such
 decision  or  determination the sole basis of which is to refer the case
 to an impartial specialist, the board may in its sole discretion  review
 and affirm, modify or rescind such decision or determination in the same
 manner  as  herein above provided for an award or decision of a referee.
 Failure to apply for review by the full board shall not bar any party in
 interest from taking an appeal directly to the court as above  provided.
 The board may also, in its discretion certify to such appellate division
 of  the  supreme  court, questions of law involved in its decision. Such
 appeals and the question so certified shall be heard in a summary manner
 and shall have precedence over all other civil cases in such court.  The
 board  shall  be  deemed  a party to every such appeal from its decision
 upon such application, and the chair shall be deemed a  party  to  every
 such  appeal  from  an  administrative  redetermination  review decision
 pursuant to subdivision five of section fifty-two of this  chapter.  The
 attorney  general  shall  represent  the board and the chair thereon. An
 appeal may also be taken to the court of appeals in the same manner  and
 subject  to  the  same  limitations  not inconsistent herewith as is now
 provided in the civil practice law and rules. It shall not be  necessary
 to  file exceptions to the rulings of the board. An appeal to the appel-
 late division of the supreme court, third department, or to the court of
 appeals, shall not operate as a stay  of  the  payment  of  compensation
 required by the terms of the award or of the payment of the cost of such
 medical,  dental,  surgical,  optometric or other attendance, treatment,
 devices, apparatus or other necessary items the employer is required  to
 provide  pursuant to section thirteen of this article which are found to
 be fair and reasonable. Where such award is modified or  rescinded  upon
 appeal,  the appellant shall be entitled to reimbursement in a sum equal
 to the compensation in dispute paid to the respondent in addition  to  a
 sum  equal  to the cost of such medical, dental, surgical, optometric or
 other attendance, treatment, devices, apparatus or other necessary items
 the employer is required to provide pursuant to section thirteen of this
 article paid by the appellant pending adjudication of the  appeal.  Such
 reimbursement  shall be paid from administration expenses as provided in
 section one hundred fifty-one of this chapter upon audit and warrant  of

 S. 2009--C                         160                        A. 3009--C
 
 the comptroller upon vouchers approved by the chair. Where such award is
 subject  to  the provisions of section twenty-seven of this article, the
 appellant shall pay directly to the  claimant  all  compensation  as  it
 becomes due during the pendency of the appeal, and upon affirmance shall
 be  entitled  to credit for such payments. Neither the chair, the board,
 the commissioners of the state insurance fund nor the claimant shall  be
 required  to  file  a  bond upon an appeal to the court of appeals. Upon
 final determination of such an appeal, the board or chair, as  the  case
 may  be, shall enter an order in accordance therewith. Whenever a notice
 of appeal is served or an application made to the board by the  employer
 or  insurance  carrier  for a modification or rescission or review of an
 award or decision, and the board shall find that such notice  of  appeal
 was served or such application was made for the purpose of delay or upon
 frivolous  grounds,  the  board  shall impose a penalty in the amount of
 five hundred dollars upon  the  employer  or  insurance  carrier,  which
 penalty shall be added to the compensation and paid to the claimant. The
 penalties  provided  herein shall be collected in like manner as compen-
 sation. A party against whom an award of compensation shall be made  may
 appeal  from  a  part  of such award. In such a case the payment of such
 part of the award as is not appealed from shall not prejudice any rights
 of such party on appeal, nor be  taken  as  an  admission  against  such
 party.  Any appeal by an employer from an administrative redetermination
 review decision pursuant to subdivision five  of  section  fifty-two  of
 this  chapter  shall  in  no  way serve to relieve the employer from the
 obligation to timely pay compensation and benefits otherwise payable  in
 accordance with the provisions of this chapter.
   Nothing  contained  in  this section shall be construed to inhibit the
 continuing jurisdiction of the board as provided in section one  hundred
 twenty-three of this chapter.
   § 4. This act shall take effect immediately.
 
                                 SUBPART B
 
   Section  1.  Subdivision  3 of section 15 of the workers' compensation
 law is amended by adding a new paragraph x to read as follows:
   X. IMPAIRMENT GUIDELINES. THE CHAIR SHALL CONSULT WITH REPRESENTATIVES
 OF LABOR, BUSINESS, MEDICAL PROVIDERS, INSURANCE CARRIERS, AND  SELF-IN-
 SURED EMPLOYERS REGARDING REVISIONS TO PERMANENCY IMPAIRMENT GUIDELINES,
 INCLUDING  PERMITTING REVIEW AND COMMENT BY SUCH REPRESENTATIVES' CHOSEN
 MEDICAL ADVISORS, AND AFTER CONSULTATION SHALL, IN ACCORDANCE  WITH  THE
 STATE  ADMINISTRATIVE  PROCEDURE ACT, PROPOSE FOR PUBLIC COMMENT REVISED
 PERMANENCY GUIDELINES CONCERNING MEDICAL EVALUATION  OF  IMPAIRMENT  AND
 THE  DETERMINATION  OF PERMANENCY AS SET FORTH IN PARAGRAPHS A THROUGH V
 OF THIS SUBDIVISION BY SEPTEMBER FIRST,  TWO  THOUSAND  SEVENTEEN,  WITH
 SUCH  GUIDELINES  TO BE ADOPTED BY THE CHAIR BY JANUARY FIRST, TWO THOU-
 SAND EIGHTEEN.  THE PERMANENCY IMPAIRMENT GUIDELINES SHALL BE REFLECTIVE
 OF ADVANCES IN MODERN MEDICINE THAT ENHANCE HEALING AND RESULT IN BETTER
 OUTCOMES. IN THE EVENT THE CHAIR FAILS TO ADOPT SUCH  PERMANENCY  GUIDE-
 LINES TO BE EFFECTIVE BY JANUARY FIRST, TWO THOUSAND EIGHTEEN, THE CHAIR
 SHALL  ADOPT, BY EMERGENCY REGULATION, PERMANENCY IMPAIRMENT GUIDELINES.
 THE PERMANENCY IMPAIRMENT GUIDELINES  ADOPTED  BY  EMERGENCY  REGULATION
 SHALL  BE  EITHER  THE  IMPAIRMENT  GUIDELINES  PROPOSED BY THE CHAIR ON
 SEPTEMBER FIRST, TWO THOUSAND SEVENTEEN  OR  THE  PERMANENCY  IMPAIRMENT
 GUIDELINES  CREATED  BY  THE  CONSULTANT  TO  THE BOARD AND SUBMITTED TO
 REPRESENTATIVES OF LABOR, BUSINESS, MEDICAL PROVIDERS, INSURANCE  CARRI-
 ERS,  AND SELF-INSURED EMPLOYERS, AS VOTED ON IN AN EMERGENCY MEETING OF

 S. 2009--C                         161                        A. 3009--C
 
 THE BOARD TO BE HELD ON DECEMBER TWENTY-NINTH, TWO  THOUSAND  SEVENTEEN.
 IN  THE  EVENT  THE BOARD IS UNABLE TO REACH A DECISION AT SUCH MEETING,
 THE CHAIR SHALL SELECT THE PERMANENCY GUIDELINES TO BE ADOPTED BY  EMER-
 GENCY  REGULATIONS.  EMERGENCY REGULATIONS SHALL BE IN EFFECT FOR NINETY
 DAYS OR UNTIL SUCH TIME AS PERMANENT  REGULATIONS  ARE  ADOPTED  BY  THE
 CHAIR.    AS OF JANUARY FIRST, TWO THOUSAND EIGHTEEN THE 2012 PERMANENCY
 IMPAIRMENT GUIDELINES PERTAINING TO PARAGRAPHS A THROUGH V  OF  SUBDIVI-
 SION  THREE  OF  SECTION FIFTEEN OF THIS ARTICLE ARE REPEALED, AND SHALL
 HAVE NO EFFECT. THE BOARD SHALL TRAIN ADJUDICATION AND  OTHER  STAFF  TO
 ENSURE TIMELY AND EFFECTIVE IMPLEMENTATION.
   § 2. This act shall take effect immediately.
 
                                 SUBPART C
 
   Section  1.  The  workers' compensation law is amended by adding a new
 section 13-p to read as follows:
   § 13-P. COMPREHENSIVE PRESCRIPTION DRUG  FORMULARY.  THE  CHAIR  SHALL
 ESTABLISH  A  COMPREHENSIVE  PRESCRIPTION  DRUG  FORMULARY  ON OR BEFORE
 DECEMBER THIRTY-FIRST, TWO THOUSAND  SEVENTEEN.  THE  PRESCRIPTION  DRUG
 FORMULARY  SHALL  INCLUDE  A TIERED LIST OF HIGH-QUALITY, COST-EFFECTIVE
 MEDICATIONS THAT ARE PRE-APPROVED TO BE  PRESCRIBED  AND  DISPENSED,  AS
 WELL AS ADDITIONAL NON-PREFERRED DRUGS THAT CAN BE PRESCRIBED WITH PRIOR
 APPROVAL.  SUCH  PRESCRIPTION  DRUG  FORMULARY, SHALL INCLUDE BUT NOT BE
 LIMITED TO IMPLEMENTATION OF A PHARMACY REIMBURSEMENT STRATEGY, ADMINIS-
 TRATION OF A PRESCRIPTION DRUG REBATE PROGRAM  FOR  FORMULARY  DRUGS,  A
 PRE-APPROVAL  PROGRAM,  DRUG  UTILIZATION REVIEW, AND LIMITATIONS ON THE
 PRESCRIBING OF COMPOUNDED MEDICATIONS AND  COMPOUNDED  TOPICAL  PREPARA-
 TIONS.    THE BOARD SHALL PROMULGATE REGULATIONS TO PERMIT AN INTERESTED
 PARTY TO SUBMIT A REQUEST TO THE MEDICAL DIRECTOR OF THE BOARD TO  ALTER
 OR  AMEND  THE  FORMULARY TO CONSIDER CHANGING THE STATUS OF A DRUG FROM
 NON-PREFERRED TO PREFERRED. REGULATIONS  MAY  INCLUDE  A  PROVISION  FOR
 REASONABLE COSTS AND FEES ASSOCIATED WITH THE REVIEW.
   § 2. This act shall take effect immediately.

                                 SUBPART D
 
   Section  1.  Paragraph (a) of subdivision 2 of section 25 of the work-
 ers' compensation law, as amended by chapter 635 of the laws of 1996, is
 amended to read as follows:
   (a) In case the employer decides to controvert the  right  to  compen-
 sation, it shall, either on or before the eighteenth day after disabili-
 ty  or  within  ten days after it has knowledge of the alleged accident,
 whichever period is the greater, file a notice with the chair, on a form
 prescribed by the chair, that compensation is not being paid, giving the
 name of the claimant, name of the employer, date of the alleged accident
 and the reason why compensation is not being paid.   WHEN  A  CLAIM  FOR
 COMPENSATION  IS  FILED  WITH MEDICAL EVIDENCE OF WORK RELATED INJURY OR
 ILLNESS, AND THE CLAIMANT IS DISABLED AND NOT WORKING, AND THE  CLAIMANT
 IS  OTHERWISE  ENTITLED  TO COMPENSATION, AND THE EMPLOYER IS NOT MAKING
 PAYMENT TO THE CLAIMANT AS REQUIRED HEREIN, AND  THE  EMPLOYER  HAS  NOT
 CONTROVERTED  THE  CLAIM,  AND THE EFFORTS TO RESOLVE THE ISSUE WITH THE
 CARRIER HAVE NOT BEEN SUCCESSFUL,  THE  CLAIMANT  MAY  REQUEST,  IN  THE
 FORMAT  PRESCRIBED  BY THE CHAIR, A HEARING TO BE HELD WITHIN FORTY-FIVE
 DAYS OF THE BOARD'S RECEIPT OF SUCH REQUEST.
   If the insurance carrier shall fail either to file notice  of  contro-
 versy  or  begin payment of compensation within the prescribed period or

 S. 2009--C                         162                        A. 3009--C

 within ten days after receipt of  a  copy  of  the  notice  required  in
 section  one hundred ten of this chapter, whichever period is the great-
 er, the board may[, after a hearing,] impose a penalty in the amount  of
 three hundred dollars, which shall be in addition to all other penalties
 provided  for  in  this  chapter and shall be paid to the claimant. Such
 penalty shall be collected in like manner as an award of compensation.
   § 2. Subdivision 3 of section 25 of the workers' compensation  law  is
 amended by adding a new paragraph (g) to read as follows:
   (G) NOTWITHSTANDING ANY OTHER PROVISION IN THIS CHAPTER, THE CHAIR MAY
 BY  REGULATION  ELECT TO ESTABLISH A PERFORMANCE STANDARD CONCERNING THE
 SUBJECT OF ANY PENALTY OR ASSESSMENT PROVISION APPLICABLE TO  AN  INSUR-
 ANCE  CARRIER OR SELF-INSURED EMPLOYER, WHERE SUCH PENALTY OR ASSESSMENT
 IS REMITTABLE TO THE NEW YORK STATE  TREASURY,  OR  CHAIR,  BUT  NOT  TO
 CLAIMANTS  OR  ANY  OTHER  PAYEE OR FUND, AND IMPOSE A SINGLE PENALTY OR
 ASSESSMENT UPON THE FAILURE TO  MEET  THAT  PROMULGATED  STANDARD,  WITH
 NOTICE  TO  THE CARRIER OR SELF-INSURED EMPLOYER. THE PENALTY OR ASSESS-
 MENT IMPOSED IN THE AGGREGATE SHALL BE PAYABLE TO THE CHAIR. SUCH AGGRE-
 GATE PENALTY OR ASSESSMENT SHALL BE BASED UPON THE NUMBER OF  VIOLATIONS
 AS  MULTIPLIED  AGAINST THE APPLICABLE PENALTY OR ASSESSMENT, BUT MAY BE
 NEGOTIATED BY THE CHAIR'S DESIGNEE IN FULL SATISFACTION OF  THE  PENALTY
 OR  ASSESSMENT.  A  FINAL AGREEMENT BETWEEN THE CHAIR'S DESIGNEE AND THE
 CARRIER OR SELF-INSURED EMPLOYER MAY BE SUBMITTED AND  APPROVED  SUBJECT
 TO  SECTION  THIRTY-TWO OF THIS ARTICLE, WITHOUT NOTICE TO ANY CLAIMANT.
 ANY AGGREGATE PENALTY OR ASSESSMENT ISSUED HEREIN SHALL BE ISSUED ADMIN-
 ISTRATIVELY, AND THE BOARD, AND THE CHAIR MAY,  BY  REGULATION,  SPECIFY
 THE METHOD OF REVIEW OR REDETERMINATION, AND THE PRESENTMENT OF EVIDENCE
 AND OBJECTIONS SHALL OCCUR SOLELY UPON THE DOCUMENTATION. THE CARRIER OR
 SELF-INSURED  EMPLOYER  SHALL  RECEIVE CREDIT FOR ANY INSTANCES IN WHICH
 THE AGGREGATE PENALTY OR ASSESSMENT IS INCLUSIVE OF A PENALTY OR ASSESS-
 MENT PREVIOUSLY ISSUED AND PAID IN AN INDIVIDUAL CLAIM OR PROCEEDING.  A
 FINAL  DETERMINATION  IS SUBJECT TO REVIEW UNDER SECTION TWENTY-THREE OF
 THIS ARTICLE, EXCEPT THAT NO STAY IN PAYMENT OF THE PENALTY  OR  ASSESS-
 MENT  SHALL APPLY PENDING THE OUTCOME OF THE APPLICATION FOR ADMINISTRA-
 TIVE REVIEW. FAILURE TO PAY THE FINALLY DETERMINED  PENALTY  OR  ASSESS-
 MENT,  OR  THE  PENALTY  OR  ASSESSMENT  AGREED UPON PURSUANT TO SECTION
 THIRTY-TWO OF THIS ARTICLE, WITHIN TEN DAYS OF FILING, SHALL  RESULT  IN
 THE IMPOSITION OF A TWENTY-PERCENT PENALTY, PAYABLE TO THE CHAIR. IN THE
 EVENT  OF THE CARRIER OR SELF-INSURED EMPLOYER INSTITUTING OR CONTINUING
 AN ISSUE WITHOUT REASONABLE GROUNDS, THE PROVISIONS OF SUBDIVISION THREE
 OF SECTION ONE HUNDRED FOURTEEN-A OF THIS CHAPTER SHALL  BE  APPLICABLE.
 AGGREGATE PENALTIES SHALL BE BORNE EXCLUSIVELY BY INSURANCE CARRIERS AND
 LICENSED  REPRESENTATIVES  PURSUANT  TO  SUBDIVISION  THREE-B OF SECTION
 FIFTY OF THIS ARTICLE AND THE COSTS  SHALL  NOT  BE  PASSED  TO  INSURED
 EMPLOYERS.
   § 3. This act shall take effect immediately.
 
                                 SUBPART E
 
   Section  1.  Subdivision  3 of section 50 of the workers' compensation
 law, as amended by section 3 of part G of chapter  57  of  the  laws  of
 2011,  the closing paragraph as further amended by section 104 of part A
 of chapter 62 of the laws of 2011, is amended to read as follows:
   3. By furnishing satisfactory proof to  the  chair  of  his  financial
 ability  to  pay  such  compensation for himself, or to pay such compen-
 sation on behalf of a group of employers in accordance with  subdivision
 ten  of  this section, in which case the chair shall require the deposit

 S. 2009--C                         163                        A. 3009--C
 
 with the chair of such securities as the chair may deem necessary of the
 kind prescribed in subdivisions one, two,  three,  four  and  five,  and
 subparagraph  (a) of paragraph three of subdivision seven of section two
 hundred  thirty-five  of the banking law, or the deposit of cash, or the
 filing of irrevocable letters of credit issued by  a  qualified  banking
 institution  as  defined by rules promulgated by the chair or the filing
 of a bond of a surety company authorized to transact  business  in  this
 state,  in  an  amount to be determined by the chair, or the posting and
 filing as aforesaid of a combination of such  securities,  cash,  irrev-
 ocable  letters  of credit and surety bond in an amount to be determined
 by the chair, to secure his liability to pay the  compensation  provided
 in this chapter. Any such surety bond must be approved as to form by the
 chair.  If  an employer or group of employers posts and files a combina-
 tion of securities, cash, irrevocable letters of credit and surety  bond
 as  aforesaid,  and  if  it becomes necessary to use the same to pay the
 compensation provided in this chapter, the chair shall  first  use  such
 securities  or  cash or irrevocable letters of credit and, when the full
 amount thereof has been exhausted, he shall then require the  surety  to
 pay  forthwith to the chair all or any part of the penal sum of the bond
 for that purpose. The chair may also require an agreement on the part of
 the employer or group of employers to  pay  any  awards  commuted  under
 section twenty-seven of this chapter, into the special fund of the state
 fund,  as  a condition of his being allowed to remain uninsured pursuant
 to this section. The chair shall have the authority to deny the applica-
 tion of an employer or group of employers to pay such  compensation  for
 himself  or  to  revoke his consent furnished, under this section at any
 time, for good cause shown. The employer or group of employers  qualify-
 ing under this subdivision shall be known as a self-insurer.
   If  for  any  reason  the  status of an employer or group of employers
 under this subdivision is terminated, the securities or the surety bond,
 or the securities, cash, or irrevocable letters  of  credit  and  surety
 bond,  on  deposit referred to herein shall remain in the custody of the
 chair for such time as the chair may deem proper and warranted under the
 circumstances. In lieu thereof, and at the discretion of the chair,  the
 employer, his or her heirs or assigns or others carrying on or liquidat-
 ing  such  business,  may execute an assumption of workers' compensation
 liability insurance policy [securing] AS DESCRIBED  HEREIN.  SEPARATELY,
 THE  CHAIR  MAY EXECUTE AN ASSUMPTION OF WORKERS' COMPENSATION LIABILITY
 INSURANCE POLICY AS DESCRIBED HEREIN ON  BEHALF  OF  THE  SPECIAL  FUNDS
 CREATED  UNDER  THE PROVISIONS OF SUBDIVISIONS EIGHT AND NINE OF SECTION
 FIFTEEN AND SECTION TWENTY-FIVE-A OF THIS CHAPTER,  AND  NOTWITHSTANDING
 ANY  PROVISION  TO  THE  CONTRARY THE CHAIR MAY EXECUTE AN ASSUMPTION OF
 WORKERS' COMPENSATION LIABILITY INSURANCE POLICY ON BEHALF OF THE  UNIN-
 SURED EMPLOYERS' FUND.  AN ASSUMPTION OF WORKERS' COMPENSATION LIABILITY
 POLICY  REFERRED  TO HEREIN SHALL SECURE such further and future contin-
 gent liability as may DIRECTLY OR INDIRECTLY arise from  prior  injuries
 to  workers and be incurred by reason of any change in condition of such
 workers warranting the board making subsequent  awards  for  payment  of
 additional  compensation. Such policy shall be in a form approved by the
 superintendent of financial services and issued by the state fund or any
 insurance company licensed to issue this  class  of  insurance  in  this
 state  OR,  UPON  APPLICATION  BY THE CHAIR, ANY OTHER INSURANCE COMPANY
 DEEMED BY THE SUPERINTENDENT OF FINANCIAL SERVICES TO BE  AN  ACCEPTABLE
 ISSUER.  In the event that such policy is issued by an insurance company
 other  than the state fund, then said policy shall be deemed of the kind
 specified in paragraph fifteen of subsection (a) of section one thousand

 S. 2009--C                         164                        A. 3009--C
 
 one hundred thirteen of the insurance law and covered  by  the  workers'
 compensation  security  fund as created and governed by article six-A of
 this chapter. It shall only be issued  for  a  single  complete  premium
 payment  in  advance  [by  the employer or group of employers] and in an
 amount deemed acceptable by the chair and the superintendent  of  finan-
 cial  services.    In  lieu  of the applicable premium charge ordinarily
 required to be imposed by  a  carrier,  said  premium  shall  include  a
 surcharge in an amount to be determined by the chair to: (i) satisfy all
 assessment  liability  due and owing to the board and/or the chair under
 this chapter; and (ii) satisfy all  future  assessment  liability  under
 this section, and which surcharge shall be adjusted from time to time to
 reflect  any  changes to the assessment of group self-insured employers,
 including any changes enacted by the chapter of the laws of two thousand
 eleven amending sections fifteen and one hundred fifty-one of this chap-
 ter. Said surcharge shall be payable to the board  simultaneous  to  the
 execution of the assumption of workers' compensation liability insurance
 policy.  However,  the  payment  of  said surcharge does not relieve the
 carrier from any other liability, including liability owed to the super-
 intendent of financial services pursuant to article six-A of this  chap-
 ter.  When  issued such policy shall be non-cancellable without recourse
 for any cause during the continuance of the  liability  secured  and  so
 covered.
   §  1-a.  Subparagraph (b) of paragraph 2 of subdivision 3-a of section
 50 of the workers' compensation law, as amended by section 4 of  part  G
 of chapter 57 of the laws of 2011, is amended to read as follows:
   (b)  Where  such  plan is adopted the group self-insurer shall furnish
 satisfactory proof to the chair of its financial  ability  to  pay  such
 compensation  for  the members in the industry covered by it, its reven-
 ues, their source and assurance of continuance. The chair shall  require
 the deposit with the chair of such securities as may be deemed necessary
 of  the  kind prescribed in subdivisions one, two, three, four and five,
 and subparagraph (a) of paragraph three of subdivision seven of  section
 two hundred thirty-five of the banking law or the deposit of cash or the
 filing  of  irrevocable  letters of credit issued by a qualified banking
 institution as defined by rules promulgated by the chair or  the  filing
 of  a  bond  of a surety company authorized to transact business in this
 state, in an amount to be determined to secure its liability to pay  the
 compensation  of each employer as above provided.  Such surety bond must
 be approved as to form by the chair. The chair shall require each  group
 self-insurer  to  provide  regular  reports no less than annually, which
 shall include but not be limited to audited financial statements,  actu-
 arial opinions and payroll information containing proof that it is fully
 funded.  Such  reports  shall  also include a contribution year analysis
 detailing contributions  and  expenses  associated  with  each  specific
 contribution  year.  For  purposes of this paragraph, proof that a group
 self-insurer is fully funded shall at a minimum include proof  of  unre-
 stricted cash and investments permitted by regulation of the chair of at
 least  one hundred percent of the total liabilities, including the esti-
 mate presented in the actuarial opinion submitted by the group  self-in-
 surer  in accordance with this chapter. The chair by regulation, may set
 further financial standards for group self-insurers. Any group  self-in-
 surer  that fails to show that it is fully funded shall be deemed under-
 funded, and must submit a plan for achieving fully funded  status  which
 may  include  a deficit assessment on members of such group self-insurer
 which shall be subject to approval or modification  by  the  chair.  THE
 AMOUNT  OF  SUCH  UNDER-FUNDING, AS MEASURED BY THE ACTUARIAL OPINION OR

 S. 2009--C                         165                        A. 3009--C

 ASSUMPTION OF LOSS POLICY QUOTATION SUBMITTED BY  THE  GROUP,  SHALL  BE
 CONSIDERED  UNFUNDED  CLAIMS  AS SET FORTH IN SUBDIVISION TWO OF SECTION
 SIXTEEN HUNDRED EIGHTY-Q OF THE  PUBLIC  AUTHORITIES  LAW  AS  ADDED  BY
 SECTION 35 OF PART GG OF CHAPTER 57 OF THE LAWS OF 2013.
   §  2.  Subdivision (i) of section 32 of the workers' compensation law,
 as added by chapter 6 of the  laws  of  2007,  paragraph  5  as  further
 amended  by  section 104 of part A of chapter 62 of the laws of 2011, is
 amended to read as follows:
   (i) (1) The waiver agreement management office may  contract  with  AN
 INSURANCE  CARRIER,  SELF-INSURED  EMPLOYER, STATE INSURANCE FUND OR any
 third party to ASSUME  LIABILITY  FOR,  manage,  administer,  or  settle
 claims  on  its  behalf, so long as (A) such contract is approved by the
 special disability fund advisory committee and (B)  such  [third]  party
 shall  agree  to be subject to any guidelines or directives as the chair
 may issue.
   (2) The chair MAY, with approval of the special disability fund  advi-
 sory  committee  and  on  such terms as the committee deems appropriate,
 [shall have discretion to] procure  one  or  more  private  entities  to
 assume  the  liability for and [management, administration or settlement
 of] MANAGE, ADMINISTER, OR SETTLE all or a portion of the claims in  the
 special  disability fund INCLUDING, WITHOUT LIMITATION, BY OBTAINING "AN
 ASSUMPTION OF  WORKERS'  COMPENSATION  LIABILITY  INSURANCE  POLICY"  AS
 DEFINED  IN SUBDIVISION THREE OF SECTION FIFTY OF THIS CHAPTER. ANY SUCH
 POLICY SHALL EXPRESSLY PROVIDE AND, NOTWITHSTANDING ANY OTHER  PROVISION
 OF  LAW,  OPERATE  TO RELEASE FROM ANY FURTHER LIABILITY (I) THE SPECIAL
 DISABILITY FUND AND (II) THE INSURANCE CARRIER, INCLUDING  AS  THE  CASE
 MAY BE THE STATE INSURANCE FUND, ORIGINALLY LIABLE FOR ANY CLAIM COVERED
 BY  THE  ASSUMPTION  OF WORKERS' COMPENSATION LIABILITY INSURANCE POLICY
 SECURING SUCH FURTHER AND FUTURE CONTINGENT LIABILITY AS MAY ARISE  FROM
 ANY  SUCH  CLAIM,  INCLUDING  FROM  PRIOR  INJURIES  TO EMPLOYEES AND BE
 INCURRED BY REASON OF ANY CHANGE IN THE CONDITION OF SUCH EMPLOYEES  FOR
 PAYMENT OF ADDITIONAL COMPENSATION. NOTWITHSTANDING ANY OTHER PROVISIONS
 OF  LAW, NO CONSULTATION OR APPROVAL OF ANY EMPLOYER, INSURANCE CARRIER,
 SELF-INSURER OR THE STATE INSURANCE FUND SHALL BE REQUIRED  BEFORE  SUCH
 OFFICE MAY ENTER INTO ANY SUCH POLICY OF WAIVER AGREEMENT, OR BEFORE THE
 BOARD  MAY  APPROVE SUCH WAIVER AGREEMENT. Any such procurement shall be
 conducted in accordance with state finance law, except as otherwise  set
 forth  below.  The  chair shall not award any contract that has not been
 approved by the special disability  fund  advisory  committee.  Notwith-
 standing  the  foregoing,  the  chair of the workers' compensation board
 may, if approved by the special disability fund advisory committee,  and
 on such terms as the committee deems appropriate:
   (A)  waive  any  informality  in a bid, and either reject all bids and
 again advertise for bids, or interview at least two  responsible  quali-
 fied bidders and negotiate and enter into a contract with one or more of
 such bidders; or
   (B)  group  claims  to  be assigned, in whole or in part, based on the
 insurance carrier, self-insured employer or state insurance fund that is
 receiving or will receive reimbursement on those claims from the  second
 disability fund. Such grouping shall be permissible notwithstanding that
 any  insurance carrier may have greater access to information, or may be
 able to provide better terms, in regard to claims so grouped.
   (3) [Any such contract shall expressly provide that the special  disa-
 bility  fund is no longer liable for the claims covered by the contract,
 and require security of either cash, an indemnity policy, or such  secu-
 rity as is otherwise sufficient to cover any losses incurred as a result

 S. 2009--C                         166                        A. 3009--C

 of  the  failure  or  default of the entity or entities awarded any such
 contract, including as a result of the insolvency of  any  such  entity.
 The  chair  may waive all or part of such security, and may impose other
 reasonable  methods  of  insuring  payment, upon approval of the special
 disability fund advisory committee.] ANY POLICY EXECUTED  BY  THE  CHAIR
 PURSUANT  TO THIS SECTION SHALL BE IN THE FORM OF AN ASSUMPTION OF WORK-
 ERS' COMPENSATION LIABILITY INSURANCE POLICY SECURING SUCH  FURTHER  AND
 FUTURE  CONTINGENT LIABILITY AS MAY ARISE FROM ANY CLAIM COVERED BY SUCH
 POLICY, INCLUDING PRIOR INJURIES TO WORKERS AND BE INCURRED BY REASON OF
 ANY CHANGE IN THE CONDITION OF SUCH WORKERS WARRANTING THE BOARD  MAKING
 SUBSEQUENT  AWARDS  FOR  PAYMENT OF ADDITIONAL COMPENSATION. SUCH POLICY
 SHALL BE IN A FORM APPROVED BY THE SUPERINTENDENT OF FINANCIAL  SERVICES
 AND ISSUED BY THE STATE INSURANCE FUND OR ANY INSURANCE COMPANY LICENSED
 TO  ISSUE THIS CLASS OF INSURANCE IN THIS STATE, OR DEEMED ACCEPTABLE AS
 AN ISSUER UPON APPLICATION BY THE CHAIR TO THE SUPERINTENDENT AS  SPECI-
 FIED IN SUBDIVISION THREE OF SECTION FIFTY OF THIS CHAPTER. IN THE EVENT
 THAT  SUCH POLICY IS ISSUED BY AN INSURANCE COMPANY OTHER THAN THE STATE
 INSURANCE FUND, THEN SAID POLICY SHALL BE DEEMED OF THE  KIND  SPECIFIED
 IN  PARAGRAPH  FIFTEEN  OF  SUBSECTION  (A)  OF SECTION ONE THOUSAND ONE
 HUNDRED THIRTEEN OF THE  INSURANCE  LAW  AND  COVERED  BY  THE  WORKERS'
 COMPENSATION  SECURITY  FUND AS CREATED AND GOVERNED BY ARTICLE SIX-A OF
 THIS CHAPTER. SUCH POLICY SHALL ONLY BE ISSUED  FOR  A  SINGLE  COMPLETE
 PREMIUM  PAID IN ADVANCE AND IN AN AMOUNT DEEMED ACCEPTABLE BY THE CHAIR
 AND THE SUPERINTENDENT OF FINANCIAL SERVICES. WHEN  ISSUED  SUCH  POLICY
 SHALL  BE  NONCANCELLABLE  WITHOUT  RECOURSE  FOR  ANY  CAUSE DURING THE
 CONTINUANCE OF THE LIABILITY SECURED AND SO COVERED.
   (4) Notwithstanding any other provision of this  article,  the  waiver
 agreement management office may request in writing any information rele-
 vant  to  its entry into or management of waiver agreements from (A) any
 insurance carrier, employer, or the state insurance fund, if that entity
 has submitted a claim for reimbursement from the special disability fund
 as to the claimant to whom the information relates; or (B)  the  special
 funds  conservation  committee.  The  party  to whom the request is made
 shall provide the requested information  within  fourteen  days  of  the
 request, unless before that date it files an objection with the board to
 any  information  which  is  subject  to a recognized privilege or whose
 production is otherwise barred by law. The objecting party shall provide
 the requested information within  five  business  days  of  the  board's
 rejection of its objection.
   (5)  No  carrier,  self-insured  employer  or the state insurance fund
 shall assume the liability for, or management, administration or settle-
 ment of any claims under this section on which it holds reserves, beyond
 such reserves as are permitted by regulation of  the  superintendent  of
 financial services for purposes of this provision. No carrier may assume
 liability for any claims in the special disability fund under this para-
 graph  unless  the  carrier  maintains, on a stand alone basis, separate
 from its parent or any affiliated  entities,  an  interactive  financial
 strength  rating  from a nationally recognized statistical rating organ-
 ization that is considered secure or deemed acceptable  by  the  special
 disability fund advisory committee.
   (6)  The  director of the budget shall notify in writing the chairs of
 the senate finance committee and the assembly ways and  means  committee
 of  any  plans  to  transfer all or a portion of the portfolio of claims
 determined to be eligible for reimbursement from the special  disability
 fund  or  to [contract with any party to take responsibility in whole or
 in part for the administration of a  material  portion  of  the  claims,

 S. 2009--C                         167                        A. 3009--C

 including  the procurement process to be used to select parties involved
 in such transfer or contract,] ENTER  INTO  AN  ASSUMPTION  OF  WORKERS'
 COMPENSATION  LIABILITY  INSURANCE POLICY, not less than forty-five days
 prior  to  the  commencement  of  such process. At any time borrowing is
 anticipated to settle claims, the chief executive officer of the  dormi-
 tory  authority  of the state of New York and the director of the budget
 shall provide a report to the chairs of the senate finance committee and
 the assembly ways and means committee on a  planned  bond  sale  of  the
 authority  and such report shall include, but not be limited to: (A) the
 maximum amount of  bonds  expected  to  be  sold  by  the  authority  in
 connection with a sale agreement; (B) the expected maximum interest rate
 and  maturity  date  of such bonds; (C) the expected amount of the bonds
 that will be fixed and/or variable  interest  rate;  (D)  the  estimated
 costs  of issuance; (E) the estimated level or levels of reserve fund or
 funds, if any; (F) the estimated cost of bond issuance, if any; (G)  the
 anticipated  use  or  uses of the proceeds; (H) the maximum expected net
 proceeds that will be paid to the state as a result of the  issuance  of
 such  bonds;  and  (I)  the  process to be used to select parties to the
 transaction. Any such expectations and estimates in the report shall not
 be deemed a substantive limitation on the  authority  of  the  dormitory
 authority of the state of New York.
   § 3. This act shall take effect immediately.
 
                                 SUBPART F
 
   Section  1.  Section 16 of chapter 11 of the laws of 2008 amending the
 workers' compensation law, the insurance law,  the  volunteer  ambulance
 workers' benefit law and the volunteer firefighters' benefit law, relat-
 ing  to  rates  for  workers'  compensation  insurance and setting forth
 conditions for a workers' compensation  rate  service  organization,  as
 amended  by  chapter  237  of  the  laws  of 2012, is amended to read as
 follows:
   § 16. This act shall take effect February 1, 2008; provided  that  the
 amendments  to  paragraph  2  of  subsection  (a) of section 2316 of the
 insurance law made by section eleven of this act shall  take  effect  on
 the  same  date  that  section 68 of chapter 6 of the laws of 2007 takes
 effect; provided further that the amendments  to  section  2316  of  the
 insurance  law  made  by section eleven of this act shall not affect the
 expiration of such section pursuant to section 2342 of the insurance law
 and shall be deemed expired therewith; and provided further that section
 ten of this act shall expire and be deemed repealed June 2, [2018] 2028.
   § 2. Subsection (e) of section 2305 of the insurance law,  as  amended
 by chapter 237 of the laws of 2012, is amended to read as follows:
   (e)  The superintendent: (1) by regulation may, in lieu of the waiting
 period set forth in subsection (b) of  this  section,  require  workers'
 compensation  insurance  rate filings to be specifically approved before
 they become effective; and (2) shall hold a public  hearing  if  a  rate
 service  organization makes a loss cost filing for workers' compensation
 that is an increase of [seven] FIVE percent or more  over  the  approved
 loss  costs  from the prior year. Until June second, two thousand [eigh-
 teen] TWENTY-EIGHT, a rate service  organization  for  workers'  compen-
 sation shall make a loss cost filing every year on or before June first,
 or such earlier date as is set by the superintendent.
   §  3.  Paragraph 4 of subdivision (t) of section 2313 of the insurance
 law, as added by chapter 11 of the laws of 2008, is amended to  read  as
 follows:

 S. 2009--C                         168                        A. 3009--C

   (4)  A  workers'  compensation rate service organization shall have an
 actuarial committee. It shall be the  responsibility  of  the  actuarial
 committee  to  review  methodology and data collection processes used to
 develop loss costs. The American  Federation  of  Labor  -  Congress  of
 Industrial  Organizations  of New York State and the Business Council of
 New York State, Inc. shall together  appoint  one  independent  casualty
 actuary  who  is a fellow or associate of the casualty actuarial society
 to serve as a member of the actuarial committee. The appointment of such
 actuary, and his  or  her  compensation  and  terms  and  conditions  of
 retention,  shall  be  subject  to the approval of the superintendent as
 reasonable and customary for such professional.  The  actuary  shall  be
 paid  by the workers' compensation rate service organization. Such actu-
 ary shall have the same access to the workers' compensation rate service
 organization data and documents as the other members of that  committee.
 The  governing body of a workers' compensation rate service organization
 shall select a chief actuary of the actuarial committee, who shall serve
 at the pleasure of the governing body and whose terms and conditions  of
 employment  shall be approved by the governing body.  THE PUBLIC ACTUARY
 SHALL ISSUE A REPORT ON OR BEFORE JUNE FIRST, TWO THOUSAND EIGHTEEN  AND
 EACH  OF THE NEXT TEN YEARS, INDICATING THE OVERALL SAVINGS IN THE WORK-
 ERS' COMPENSATION SYSTEM AS A  RESULT  OF  THE  TWO  THOUSAND  SEVENTEEN
 REFORMS.
   §  4.  The  New  York compensation insurance rating board shall make a
 filing with the New York state department of financial services  requir-
 ing  that  the final premiums charged (i) on workers' compensation poli-
 cies with an effective date between the effective date of  this  section
 and  September  30,  2017, and (ii) on the unexpired portion of workers'
 compensation policies in force after the effective date of this  section
 with  an  effective date on or after October 1, 2016, shall reflect such
 cost impact. Differences between premiums charged and the final  premium
 on  such policies shall be settled between the insurance carrier and the
 policyholder by or before December 31, 2018.
   § 5. This act shall take effect immediately;  provided,  however  that
 the  amendments  to subdivision (t) of section 2313 of the insurance law
 made by section three of this act shall not affect the  repeal  of  such
 subdivision and shall be deemed repealed therewith.
 
                                 SUBPART G

   Section  1. Section 137 of the workers' compensation law is amended by
 adding a new subdivision 12 to read as follows:
   12. THE CHAIR SHALL CONDUCT A THOROUGH STUDY  OF  THE  UTILIZATION  OF
 INDEPENDENT  MEDICAL  EXAMINATIONS  UNDER  THIS CHAPTER, TO OCCUR WITHIN
 CALENDAR YEAR TWO THOUSAND EIGHTEEN, AND SHALL  CONVENE  AND  PRESENT  A
 PRELIMINARY  REPORT  BASED  ON THE STUDY TO AN ADVISORY COMMITTEE SET TO
 COMMENCE ON OR ABOUT JANUARY FIRST, TWO THOUSAND NINETEEN. THE  ADVISORY
 COMMITTEE IS TO CONSIST OF REPRESENTATIVES OF ORGANIZED LABOR, BUSINESS,
 CARRIERS,  SELF-INSURED  EMPLOYERS,  MEDICAL PROVIDERS, AND OTHER STAKE-
 HOLDERS AND EXPERTS AS THE CHAIR MAY DEEM FIT TO INCLUDE.  THE  ADVISORY
 COMMITTEE  SHALL  MEET  QUARTERLY, OR MORE FREQUENTLY IF DIRECTED BY THE
 CHAIR. BY DECEMBER THIRTY-FIRST, TWO THOUSAND  NINETEEN,  THE  COMMITTEE
 SHALL  PRESENT  DETAILED RECOMMENDATIONS TO THE GOVERNOR, SPEAKER OF THE
 ASSEMBLY, AND MAJORITY LEADER OF THE  SENATE,  REGARDING  ADMINISTRATIVE
 IMPROVEMENTS,  AND  REGULATORY AND STATUTORY PROPOSALS, THAT WILL ENSURE
 FAIRNESS, AND  HIGHEST  MEDICAL  QUALITY,  WHILE  IMPROVING  METHODS  OF
 COMBATTING  FRAUD.  THE  COMMITTEE  SHALL  REVIEW  AND  ANALYZE  LEADING

 S. 2009--C                         169                        A. 3009--C
 
 STUDIES, BOTH IN NEW YORK STATE AND NATIONALLY. THE COMPENSATION  INSUR-
 ANCE  RATING  BOARD SHALL PROVIDE DATA, AND COOPERATE WITH THE CHAIR AND
 COMMITTEE IN IDENTIFYING POTENTIAL ABUSE AND FRAUD.   THE  REPORT  SHALL
 CONSIDER,  AMONG  OTHER ITEMS, THE FEASIBILITY OF NEW METHODS OF ASSIGN-
 ING INDEPENDENT MEDICAL EXAMINATIONS, SUCH AS THROUGH ROTATING PROVIDERS
 OR PANELS, STATEWIDE NETWORKS, OR OTHER ARRANGEMENTS.
   § 2. This act shall take effect immediately.
 
                                 SUBPART H
 
   Section 1. Subparagraph 1 of paragraph c of subdivision 5  of  section
 50  of  the  workers' compensation law, as amended by chapter 139 of the
 laws of 2008, is amended to read as follows:
   (1) The chair and the department of audit and control as soon as prac-
 ticable after May first, nineteen hundred sixty, and annually  thereaft-
 er,  as  soon  as practicable after April first in each succeeding year,
 shall ascertain the total amount of net expenses, including (a) adminis-
 trative expenses, which shall  include  the  direct  costs  of  personal
 services,  the cost of maintenance and operation, the cost of retirement
 contributions made and workers' compensation premiums paid by the  State
 for  or  on  account  of  personnel, rentals for space occupied in state
 owned or state leased buildings, and (b) all direct  or  indirect  costs
 incurred  by  the board during the preceding fiscal year in carrying out
 the provisions of subdivision three and three-a of this section.    Such
 expenses shall be adjusted [quarterly] ANNUALLY to reflect any change in
 circumstances,  and  shall  be assessed against all private self-insured
 employers, including for this purpose active and terminated group  self-
 insurers, active individual self-insured employers, and individual self-
 insured  employers who have ceased to exercise the privilege of self-in-
 surance.
   § 2. This act shall take effect immediately.

                                 SUBPART I
 
   Section 1.  Subdivision 3 of section 10 of the  workers'  compensation
 law,  as  amended by section 173 of subpart B of part C of chapter 62 of
 the laws of 2011, is amended to read as follows:
   3. (A) Notwithstanding any other provisions of this chapter,  where  a
 public  safety worker, including but not limited to a firefighter, emer-
 gency medical technician, police officer, correction  officer,  civilian
 employee  of  the department of corrections and community supervision or
 other person employed by the state to work within a correctional facili-
 ty maintained by the department  of  corrections  and  community  super-
 vision,  driver and medical observer, in the course of performing his or
 her duties, is exposed to the blood or other bodily  fluids  of  another
 individual  or  individuals,  the  executive  officer of the appropriate
 ambulance, fire or police district  may  authorize  such  public  safety
 worker  to  obtain  the  care and treatment, including diagnosis, recom-
 mended medicine and other medical care needed to ascertain whether  such
 individual  was  exposed  to  or contracted any communicable disease and
 such care and treatment shall be the  responsibility  of  the  insurance
 carrier  of  the appropriate ambulance, fire or police district or, if a
 public safety worker was not so exposed in the course of performing  his
 or her duties for such a district, then such person shall be covered for
 the  treatment provided for in this subdivision by the carrier of his or
 her employer when such person is acting in  the  scope  of  his  or  her

 S. 2009--C                         170                        A. 3009--C
 
 employment. For the purpose of this subdivision, the term "public safety
 worker"  shall  include persons who act for payment or who act as volun-
 teers in an organized group such as a rescue squad,  police  department,
 correctional  facility, ambulance corps, fire department, or fire compa-
 ny.
   (B) WHERE A POLICE OFFICER OR FIREFIGHTER SUBJECT TO SECTION THIRTY OF
 THIS ARTICLE, OR  EMERGENCY  MEDICAL  TECHNICIAN,  PARAMEDIC,  OR  OTHER
 PERSON  CERTIFIED  TO  PROVIDE MEDICAL CARE IN EMERGENCIES, OR EMERGENCY
 DISPATCHER FILES A CLAIM FOR MENTAL INJURY PREMISED  UPON  EXTRAORDINARY
 WORK-RELATED  STRESS INCURRED IN A WORK-RELATED EMERGENCY, THE BOARD MAY
 NOT DISALLOW THE CLAIM, UPON A FACTUAL FINDING THAT THE STRESS  WAS  NOT
 GREATER THAN THAT WHICH USUALLY OCCURS IN THE NORMAL WORK ENVIRONMENT.
   § 2. This act shall take effect immediately.
 
                                 SUBPART J
 
   Section  1.  Subdivision 3 of section 151 of the workers' compensation
 law, as added by section 22 of part GG of chapter  57  of  the  laws  of
 2013, is amended to read as follows:
   3.  The  chair and department of audit and control annually as soon as
 practicable after the first of April of each year  shall  ascertain  the
 actual  total  amount  of  expenses, including in addition to the direct
 costs of personal service, the cost of maintenance  and  operation,  the
 cost of retirement contributions made and workers' compensation premiums
 paid  by  the  state  for  or on account of personnel, rentals for space
 occupied in state owned or state leased buildings, such  additional  sum
 as may be certified to the chair and the department of audit and control
 as  a reasonable compensation for services rendered by the department of
 law and expenses incurred by such  department,  for  transfer  into  the
 training  and educational program on occupational safety and health fund
 created pursuant to chapter eight hundred  eighty-six  of  the  laws  of
 nineteen  hundred  eighty-five  and  section ninety-seven-c of the state
 finance law, for the New York state occupational health clinics network,
 for the department of labor occupational safety and health  program  and
 for  transfer into the uninsured employers' fund pursuant to subdivision
 two of section twenty-six-a of this chapter, and  all  other  direct  or
 indirect  costs,  incurred  by the board in connection with the adminis-
 tration of this chapter, except those expenses for which  an  assessment
 is authorized for self-insurance pursuant to subdivision five of section
 fifty  of  this  chapter.  Assessments  pursuant to subparagraph four of
 paragraph (h) of subdivision eight of section fifteen  of  this  chapter
 for  the  special  disability  fund, pursuant to section fifty-c of this
 chapter for the self insurer offset fund, pursuant to subdivision  three
 of  section  twenty-five-a  of  this  chapter  for the fund for reopened
 cases, and pursuant to section two hundred fourteen of this chapter  for
 the  special fund for disability benefits shall be included in the total
 amount of expenses for the purposes of this subdivision. Any overpayment
 of annual assessments resulting from the requirements of  this  subdivi-
 sion  shall  be  applied  as a credit against the future assessment rate
 provided the fund balance shall not be reduced below [ten] FIVE  percent
 of the total amount assessed.
   §  2.  There is hereby created a fiduciary fund, known as the workers'
 compensation rate stabilization fund, which shall be established in  the
 joint  custody  of the comptroller and the chair of the workers' compen-
 sation board. Such stabilization fund shall serve as the repository  for
 the  funds  released  due  to the reduction in the maximum fund balance,

 S. 2009--C                         171                        A. 3009--C
 
 provided pursuant to subdivision  3  of  section  151  of  the  workers'
 compensation  law, from ten percent to five percent. Such funds shall be
 used by the chair of the workers' compensation board over the next  five
 years  to  ensure assessment rate stability. The board shall ensure that
 all funds in the stabilization fund are utilized no later than the  2022
 assessment rate year. By April 1, 2018 and by April first in each of the
 next  four years, the chair shall be required to report to the governor,
 the speaker of the assembly, the majority  leader  of  the  senate,  the
 senate  coalition  leader, the committee chairs of the assembly ways and
 means committee, the assembly labor committee, the senate labor  commit-
 tee,  and  the  committee  chair  and  vice  chair of the senate finance
 committee on the opening fund balance,  amount  used  to  subsidize  the
 current  rate  year,  remaining fund balance, and the impact the subsidy
 had on the overall assessment rate.
   § 3. This act shall take effect immediately; provided,  however,  that
 section  two  of  this act shall expire and be deemed repealed March 31,
 2024.
   § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be adjudged by a court of compe-
 tent jurisdiction to be invalid, such judgment shall not affect, impair,
 or invalidate the remainder thereof, but shall be confined in its opera-
 tion to the clause, sentence, paragraph, subdivision,  section  or  part
 thereof  directly  involved  in  the  controversy in which such judgment
 shall have been rendered. It is hereby declared to be the intent of  the
 legislature  that  this act would have been enacted even if such invalid
 provisions had not been included herein.
   § 3. This act shall take effect immediately  provided,  however,  that
 the  applicable effective date of Subparts A through J of this act shall
 be as specifically set forth in the last section of such Subparts.
 
                                 PART OOO
 
   Section 1. Subsection (d) of section 615 of the tax law is amended  by
 adding a new paragraph 5 to read as follows:
   (5)  THE FULL AMOUNT OF UNION DUES PAID DURING THE TAXABLE YEAR IF THE
 TAXPAYER WAS NOT ALLOWED FEDERAL MISCELLANEOUS  ITEMIZED  DEDUCTIONS  BY
 OPERATION  OF  SECTION 67 OF THE INTERNAL REVENUE CODE. IF ANY AMOUNT OF
 UNION DUES REPRESENTING FEDERAL MISCELLANEOUS  ITEMIZED  DEDUCTIONS  WAS
 ALLOWED,  THEN  THE  AMOUNT ALLOWED AS A NEW YORK ITEMIZED DEDUCTION FOR
 UNION DUES PAID SHALL BE A PERCENTAGE OF THE UNION  DUES  DISALLOWED  BY
 THE  OPERATION  OF  SECTION  67 OF THE INTERNAL REVENUE CODE COMPUTED AS
 FOLLOWS. THE AMOUNT ALLOWED AS A NEW YORK ITEMIZED  DEDUCTION  SHALL  BE
 COMPUTED BY MULTIPLYING THE TOTAL UNION DUES PAID BY THE TAXPAYER DURING
 THE  TAXABLE  YEAR BY A PERCENTAGE DETERMINED BY SUBTRACTING FROM ONE, A
 FRACTION WHERE THE NUMERATOR IS  THE  AMOUNT  OF  FEDERAL  MISCELLANEOUS
 DEDUCTIONS  ALLOWED AND THE DENOMINATOR IS THE AGGREGATE FEDERAL MISCEL-
 LANEOUS ITEMIZED DEDUCTIONS BEFORE APPLICATION OF THE TWO-PERCENT  FLOOR
 UNDER  SECTION 67 OF THE INTERNAL REVENUE CODE. FOR THE PURPOSES OF THIS
 PARAGRAPH, UNION DUES ARE THOSE AMOUNTS THAT  ARE  DEDUCTIBLE  AS  UNION
 DUES  AND  AGENCY  SHOP  FEES  UNDER SECTION 162 OF THE INTERNAL REVENUE
 CODE.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2018.
 
                                 PART PPP

 S. 2009--C                         172                        A. 3009--C
 
   Section 1. The executive law is amended by adding a new article 4-B to
 read as follows:
                                ARTICLE 4-B
      OFFICE OF THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION
 SECTION 56. JURISDICTION.
         57. ESTABLISHMENT AND ORGANIZATION.
         58. FUNCTIONS AND DUTIES.
   §  56. JURISDICTION. 1. THIS ARTICLE SHALL, SUBJECT TO THE LIMITATIONS
 CONTAINED HEREIN, CONFER UPON THE OFFICE OF THE INSPECTOR GENERAL OF NEW
 YORK FOR TRANSPORTATION INVESTIGATIVE AND PROSECUTORIAL POWER OVER CRIM-
 INAL AND UNETHICAL CONDUCT INVOLVING INDIVIDUALS  SERVING  AT  A  SENIOR
 LEVEL  IN OPERATIONS, FINANCING OR MANAGEMENT OF A TRANSPORTATION ENTITY
 LOCATED IN A CITY OF A POPULATION OF ONE  MILLION  OR  MORE  WHERE  SUCH
 ACTION  OR  ACTIONS  OCCURRED  WITHIN  THE  STATE; AND INVESTIGATIVE AND
 PROSECUTORIAL POWER OF CRIMINAL AND UNETHICAL CONDUCT INVOLVING  MANAGE-
 RIAL  APPOINTEES  OR  MANAGERIAL  EMPLOYEES OF ANY TRANSPORTATION ENTITY
 WHERE SUCH ACTION OR ACTIONS OCCURRED WITHIN THE STATE.
   2. FOR THE PURPOSES OF THIS ARTICLE: (A) "TRANSPORTATION ENTITY" SHALL
 MEAN ANY PUBLIC ENTITY LOCATED WITHIN A CITY  OF  ONE  MILLION  OR  MORE
 INVOLVED  IN  THE TRANSPORTATION OF PERSONS, GOODS OR OTHER ITEMS WITHIN
 OR TO AND FROM THE STATE OF NEW  YORK  WHERE  AT  LEAST  ONE  INDIVIDUAL
 INVOLVED  AT  A  SENIOR  LEVEL IN OPERATIONS, FINANCING OR MANAGEMENT OF
 SUCH ENTITY IS APPOINTED BY THE GOVERNOR;
   (B) "INDIVIDUALS INVOLVED AT A SENIOR LEVEL IN  OPERATIONS,  FINANCING
 OR MANAGEMENT" SHALL MEAN INDIVIDUALS THAT EXERT FULL OR PARTIAL CONTROL
 OVER  FORMAL  ACTIONS  TAKEN  BY A TRANSPORTATION ENTITY OR ON BEHALF OF
 SUCH ENTITY, OR EXERT INDEPENDENT JUDGMENT IN THE FULFILLMENT  OF  THEIR
 DUTIES  AND OBLIGATIONS, BUT SHALL NOT INCLUDE INDIVIDUALS WHOSE ACTIONS
 ARE OF A ROUTINE OR CLERICAL NATURE; AND
   (C) "MANAGERIAL APPOINTEE" OR "MANAGERIAL  EMPLOYEE"  SHALL  MEAN  ANY
 INDIVIDUAL  WHO (I) PARTICIPATES DIRECTLY OR AS PART OF A TEAM IN FORMU-
 LATING POLICY; (II) MAY REASONABLY BE REQUIRED TO ASSIST DIRECTLY IN THE
 PREPARATION FOR AND CONDUCT  OF  NEGOTIATIONS  CONCERNING  MAJOR  FISCAL
 MATTERS,  PROCUREMENTS OR EXPENDITURES IN EXCESS OF ONE HUNDRED THOUSAND
 DOLLARS PROVIDED THAT SUCH ROLE IS NOT OF A ROUTINE OR  CLERICAL  NATURE
 AND  REQUIRES THE EXERCISE OF INDEPENDENT JUDGMENT; OR (III) HAS A MAJOR
 ROLE IN THE ADMINISTRATION  OF  PERSONNEL  AGREEMENTS  OR  IN  PERSONNEL
 ADMINISTRATION,  PROVIDED THAT SUCH ROLE IS NOT OF A ROUTINE OR CLERICAL
 NATURE AND REQUIRES THE EXERCISE OF INDEPENDENT JUDGMENT.
   3. NOTHING CONTAINED IN THIS SECTION SHALL  REPLACE  OR  DIMINISH  THE
 JURISDICTION  OF  THE  ATTORNEY GENERAL OR ANY DISTRICT ATTORNEY, OR THE
 INSPECTOR GENERAL OF ANY TRANSPORTATION ENTITY.
   4. THE INSPECTOR GENERAL SHALL BE AUTHORIZED TO:
   (A) RECEIVE, INVESTIGATE AND PROSECUTE COMPLAINTS REGARDING ANY  INDI-
 VIDUALS  INVOLVED  AT A SENIOR LEVEL IN OPERATIONS, FINANCING OR MANAGE-
 MENT OR MANAGERIAL APPOINTEE OR MANAGERIAL EMPLOYEE OF  ANY  TRANSPORTA-
 TION  ENTITY  CONCERNING CORRUPTION, CONFLICTS OF INTEREST, FRAUD, WASTE
 AND ABUSE, RECUSALS OR FAILURE TO RECUSE, OR CRIMINAL  ACTIVITY  IN  ANY
 CASE  WHERE SUCH CONDUCT, ACTION OR FAILURE OCCURRED BEFORE OR AFTER THE
 EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT
 ADDED THIS ARTICLE AND WHERE SUCH CONDUCT, ACTION OR FAILURE OCCURRED IN
 NEW YORK;
   (B) REPRESENT THE STATE IN ANY ADMINISTRATIVE HEARING  OR  ADMINISTRA-
 TIVE  PROCEEDING INVOLVING ANY CRIMINAL OR UNETHICAL CONDUCT OF INDIVID-
 UALS INVOLVED AT A SENIOR LEVEL IN OPERATIONS, FINANCING  OR  MANAGEMENT

 S. 2009--C                         173                        A. 3009--C
 
 OR  A  MANAGERIAL  APPOINTEE  OR MANAGERIAL EMPLOYEE OF A TRANSPORTATION
 ENTITY WHERE SUCH CONDUCT OCCURRED IN NEW YORK; AND
   (C)  REPRESENT  THE  STATE  IN CIVIL ACTIONS INVOLVING ANY CRIMINAL OR
 UNETHICAL CONDUCT OF INDIVIDUALS INVOLVED AT A  SENIOR  LEVEL  IN  OPER-
 ATIONS,  FINANCING OR MANAGEMENT OR A MANAGERIAL APPOINTEE OR MANAGERIAL
 EMPLOYEE OF A TRANSPORTATION ENTITY WHERE SUCH CONDUCT OCCURRED  IN  NEW
 YORK.
   §  57.  ESTABLISHMENT AND ORGANIZATION. 1. THERE SHALL BE AN OFFICE OF
 THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION  IN  THE  EXECUTIVE
 DEPARTMENT. THE HEAD OF THE OFFICE SHALL BE THE INSPECTOR GENERAL OF NEW
 YORK FOR TRANSPORTATION.
   2.  THE INSPECTOR GENERAL SHALL BE APPOINTED BY THE GOVERNOR AND SHALL
 HOLD OFFICE UNTIL THE END OF THE TERM OF THE GOVERNOR BY WHOM HE OR  SHE
 IS APPOINTED AND UNTIL HIS OR HER SUCCESSOR IS APPOINTED.
   3.  THE  INSPECTOR  GENERAL  MAY APPOINT A DEPUTY INSPECTOR GENERAL TO
 SERVE AT HIS OR HER PLEASURE, WHO SHALL BE  RESPONSIBLE  FOR  CONDUCTING
 INVESTIGATIONS  AND PROSECUTING VIOLATIONS OF LAW. THE INSPECTOR GENERAL
 SHALL IDENTIFY A PROCESS FOR A COORDINATED APPROACH WITH PROSECUTORS  TO
 AVOID   DUPLICATION  AND  PROVIDE  FOR  A  TIMELY  RESPONSE  TO  ALLEGED
 VIOLATIONS.
   4. THE SALARY OF THE INSPECTOR GENERAL SHALL  BE  ESTABLISHED  BY  THE
 GOVERNOR WITHIN THE LIMIT OF FUNDS AVAILABLE THEREFORE.
   §  58.  FUNCTIONS  AND  DUTIES.  THE INSPECTOR GENERAL OF NEW YORK FOR
 TRANSPORTATION SHALL HAVE THE FOLLOWING DUTIES AND RESPONSIBILITIES:
   1. RECEIVE, INVESTIGATE, AND PROSECUTE COMPLAINTS FROM ANY SOURCE,  OR
 UPON  HIS  OR  HER OWN INITIATIVE, CONCERNING ALLEGATIONS OF CORRUPTION,
 CONFLICTS OF INTEREST, FRAUD, WASTE AND ABUSE, RECUSALS  OR  FAILURE  TO
 RECUSE,  OR  CRIMINAL  ACTIVITY  REGARDING  ANY  TRANSPORTATION  ENTITY,
 CONDUCT OR ACTIVITY OR FAILURE TO ACT BY ANY INDIVIDUALS INVOLVED  AT  A
 SENIOR  LEVEL  IN  OPERATIONS,  FINANCING  OR  MANAGEMENT  OR MANAGERIAL
 APPOINTEE OR MANAGERIAL EMPLOYEE OF A  TRANSPORTATION  ENTITY  OCCURRING
 BEFORE  OR  AFTER  THE  EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
 THOUSAND SEVENTEEN THAT ADDED THIS ARTICLE, IN VIOLATION OF NEW YORK LAW
 AND OCCURRING IN NEW YORK;
   2. INFORM THE  TRANSPORTATION  ENTITY  OF  SUCH  ALLEGATIONS  AND  THE
 PROGRESS OF INVESTIGATIONS RELATED THERETO, UNLESS SPECIAL CIRCUMSTANCES
 REQUIRE CONFIDENTIALITY, PROVIDED THAT THE INSPECTOR GENERAL SHALL MAIN-
 TAIN  A  WRITTEN  RECORD  THAT  SPECIFIES  THE REASON CONFIDENTIALITY IS
 NECESSARY UNDER THIS PARAGRAPH;
   3. ISSUE A SUBPOENA OR SUBPOENAS REQUIRING  A  PERSON  OR  PERSONS  TO
 APPEAR  BEFORE THE GRAND JURY, TRIAL COURT, PRODUCE DOCUMENTS, PROVIDE A
 SWORN STATEMENT UNDER OATH AND BE EXAMINED IN REFERENCE  TO  ANY  MATTER
 WITHIN  THE  JURISDICTION  OF  THE  INSPECTOR GENERAL. A SUBPOENA ISSUED
 UNDER THIS SECTION SHALL BE GOVERNED  BY  ARTICLE  TWENTY-THREE  OF  THE
 CIVIL  PRACTICE  LAW  AND  RULES  OR  ARTICLES ONE HUNDRED NINETY OR SIX
 HUNDRED TEN OF THE CRIMINAL PROCEDURE LAW. THE INSPECTOR GENERAL OR  HIS
 OR HER DEPUTY OR ANY PERSON DESIGNATED IN WRITING BY THEM MAY ADMINISTER
 AN  OATH  TO  A WITNESS IN ANY SUCH INVESTIGATION OR PROSECUTION AND MAY
 SEEK TO CONFER IMMUNITY FOR  COMPELLED  TESTIMONY  PURSUANT  TO  ARTICLE
 FIFTY OF THE CRIMINAL PROCEDURE LAW;
   4.  DETERMINE  WITH  RESPECT  TO  SUCH ALLEGATIONS WHETHER TO INITIATE
 CIVIL OR CRIMINAL PROSECUTION, OR MAKE A REFERRAL FOR  FURTHER  INVESTI-
 GATION  BY  AN  APPROPRIATE  FEDERAL, STATE OR LOCAL AGENCY OR ANY OTHER
 OFFICE OF INSPECTOR GENERAL AS IS  WARRANTED,  AND  TO  ASSIST  IN  SUCH
 INVESTIGATIONS; AND

 S. 2009--C                         174                        A. 3009--C
 
   5.  PREPARE AND RELEASE TO THE PUBLIC WRITTEN REPORTS OF SUCH INVESTI-
 GATIONS, AS APPROPRIATE AND TO THE EXTENT PERMITTED BY LAW,  SUBJECT  TO
 REDACTION  TO  PROTECT  THE CONFIDENTIALITY OF WITNESSES. THE RELEASE OF
 ALL OR PORTIONS OF SUCH REPORTS MAY BE DEFERRED TO PROTECT THE CONFIDEN-
 TIALITY  OF  ONGOING INVESTIGATIONS, PROVIDED THAT THE INSPECTOR GENERAL
 SHALL MAINTAIN A WRITTEN RECORD THAT SPECIFIES THE REASON CONFIDENTIALI-
 TY IS NECESSARY UNDER THIS SUBDIVISION.
   § 2. Subdivision 32 of section 1.20 of the criminal procedure law,  as
 amended  by  section  4 of part A of chapter 501 of the laws of 2012, is
 amended to read as follows:
   32. "District  attorney"  means  a  district  attorney,  an  assistant
 district  attorney  or a special district attorney, and, where appropri-
 ate, the attorney general,  an  assistant  attorney  general,  a  deputy
 attorney  general,  a  special  deputy  attorney general, or the special
 prosecutor and inspector general  for  the  protection  of  people  with
 special  needs  or  his  or her assistants when acting pursuant to their
 duties in matters arising under article twenty of the executive law,  OR
 THE INSPECTOR GENERAL OF NEW YORK FOR TRANSPORTATION OR HIS OR HER DEPU-
 TIES WHEN ACTING PURSUANT TO ARTICLE FOUR-B OF THE EXECUTIVE LAW.
   §  3. Severability. The provisions of this act shall be severable, and
 if the application of  any  clause,  sentence,  paragraph,  subdivision,
 section  or  part  of  this  act  to any person or circumstance shall be
 adjudged by any court of competent  jurisdiction  to  be  invalid,  such
 judgment shall not necessarily affect, impair or invalidate the applica-
 tion  of  any such clause, sentence, paragraph, subdivision, section, or
 part of this act or remainder thereof, as the case may be, to any  other
 person  or  circumstance,  but shall be confined in its operation to the
 clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered.
   § 4. This act shall take effect immediately; provided,  however,  that
 sections  one and two of this act shall take effect on the thirtieth day
 after it shall have become a law.

                                 PART QQQ
 
   Section 1. All expenditures and disbursements made against the  appro-
 priations  contained in the chapter of the laws of 2017 making appropri-
 ations for the support of government as proposed  in  legislative  bills
 numbers S.5492 and A.7068 shall, upon final action by the legislature on
 appropriation bills submitted by the governor pursuant to article VII of
 the  state  constitution  for  the  support  of government for the state
 fiscal year beginning April 1, 2017, as contained in  legislative  bills
 numbers   S.2000-D/A.3000-D,   S.2001/A.3001,   S.2003-D/A.3003-D,   and
 S.2004-D/A.3004-D, be transferred by the comptroller as expenditures and
 disbursements to such appropriations for all  state  departments,  agen-
 cies, the legislature and the judiciary, as applicable, in amounts equal
 to  the  amounts  charged against those appropriations in the chapter of
 the laws of 2017 making appropriations for the support of government  as
 proposed  in  legislative  bills numbers S.5492 and A.7068 for each such
 department, agency, the legislature and the judiciary.
   § 2. A chapter of the laws  of  2017  making  appropriations  for  the
 support  of  government, as proposed in legislative bills numbers S.5492
 and A.7068, is REPEALED upon the passage of  legislative  bills  numbers
 S.2000-D and A.3000-D.

 S. 2009--C                         175                        A. 3009--C
 
   §  3.  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 RRR
 
   Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the
 laws  of 2015 constituting the infrastructure investment act, is amended
 to read as follows:
   (a) (I) "authorized state entity" shall mean the New York state  thru-
 way  authority,  the  department of transportation, the office of parks,
 recreation and historic preservation, the  department  of  environmental
 conservation and the New York state bridge authority.
   (II)  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION 26 OF SECTION 1678
 OF THE PUBLIC AUTHORITIES LAW, SECTION 8 OF THE  PUBLIC  BUILDINGS  LAW,
 SECTIONS  8  AND  9  OF  SECTION 1 OF CHAPTER 359 OF THE LAWS OF 1968 AS
 AMENDED, SECTION 103 OF THE GENERAL MUNICIPAL LAW, AND THE PROVISIONS OF
 ANY OTHER LAW TO THE CONTRARY, THE TERM "AUTHORIZED STATE ENTITY"  SHALL
 ALSO REFER TO ONLY THOSE AGENCIES OR AUTHORITIES IDENTIFIED BELOW SOLELY
 IN CONNECTION WITH THE FOLLOWING AUTHORIZED PROJECTS, PROVIDED THAT SUCH
 AN  AUTHORIZED  STATE ENTITY MAY UTILIZE THE ALTERNATIVE DELIVERY METHOD
 REFERRED TO AS DESIGN-BUILD CONTRACTS  SOLELY  IN  CONNECTION  WITH  THE
 FOLLOWING AUTHORIZED PROJECTS SHOULD THE TOTAL COST OF EACH SUCH PROJECT
 NOT BE LESS THAN FIVE MILLION DOLLARS ($5,000,000):
 
     AUTHORIZED PROJECTS                     AUTHORIZED STATE ENTITY
 
 1.  FRONTIER TOWN                        URBAN DEVELOPMENT CORPORATION
 
 2.  LIFE SCIENCES LABORATORY             DORMITORY AUTHORITY & URBAN
                                          DEVELOPMENT CORPORATION

 3.  WHITEFACE TRANSFORMATIVE PROJECTS    NEW YORK STATE OLYMPIC REGIONAL
                                          DEVELOPMENT AUTHORITY
 
 4.  GORE TRANSFORMATIVE PROJECTS         NEW YORK STATE OLYMPIC REGIONAL
                                          DEVELOPMENT AUTHORITY
 5.  BELLEAYRE TRANSFORMATIVE PROJECTS    NEW YORK STATE OLYMPIC REGIONAL
                                          DEVELOPMENT AUTHORITY
 6.  MT. VAN HOEVENBERG TRANSFORMATIVE    NEW YORK STATE OLYMPIC REGIONAL
     PROJECTS                             DEVELOPMENT AUTHORITY
 
 7.  STATE FAIR REVITALIZATION PROJECTS   OFFICE OF GENERAL SERVICES

 8.  STATE POLICE FORENSIC LABORATORY     OFFICE OF GENERAL SERVICES
 
   NOTWITHSTANDING  ANY  PROVISION  OF LAW TO THE CONTRARY, ALL RIGHTS OR
 BENEFITS, INCLUDING TERMS AND CONDITIONS OF EMPLOYMENT,  AND  PROTECTION
 OF  CIVIL  SERVICE  AND  COLLECTIVE  BARGAINING  STATUS  OF ALL EXISTING
 EMPLOYEES OF AUTHORIZED STATE ENTITIES SOLELY  IN  CONNECTION  WITH  THE
 AUTHORIZED  PROJECTS  LISTED  ABOVE,  SHALL  BE PRESERVED AND PROTECTED.
 NOTHING IN THIS SECTION SHALL RESULT IN THE:  (1)  DISPLACEMENT  OF  ANY
 CURRENTLY  EMPLOYED  WORKER  OR  LOSS  OF  POSITION  (INCLUDING  PARTIAL
 DISPLACEMENT SUCH AS A REDUCTION IN  THE  HOURS  OF  NON-OVERTIME  WORK,
 WAGES,  OR  EMPLOYMENT BENEFITS) OR RESULT IN THE IMPAIRMENT OF EXISTING
 COLLECTIVE BARGAINING AGREEMENTS; AND (2) TRANSFER  OF  EXISTING  DUTIES
 AND  FUNCTIONS RELATED TO MAINTENANCE AND OPERATIONS CURRENTLY PERFORMED

 S. 2009--C                         176                        A. 3009--C
 
 BY EXISTING EMPLOYEES OF AUTHORIZED  STATE  ENTITIES  TO  A  CONTRACTING
 ENTITY.  NOTHING  CONTAINED  HEREIN SHALL BE CONSTRUED TO AFFECT (A) THE
 EXISTING RIGHTS OF EMPLOYEES PURSUANT TO AN EXISTING COLLECTIVE BARGAIN-
 ING AGREEMENT, AND (B) THE EXISTING REPRESENTATIONAL RELATIONSHIPS AMONG
 EMPLOYEE  ORGANIZATIONS  OR  THE  BARGAINING  RELATIONSHIPS  BETWEEN THE
 EMPLOYER AND AN EMPLOYEE ORGANIZATION.
   IF OTHERWISE APPLICABLE, AUTHORIZED PROJECTS UNDERTAKEN BY THE AUTHOR-
 IZED  STATE  ENTITIES  LISTED  ABOVE  SOLELY  IN  CONNECTION  WITH   THE
 PROVISIONS  OF  THIS  ACT  SHALL  BE SUBJECT TO SECTION 135 OF THE STATE
 FINANCE LAW, SECTION 101 OF THE GENERAL MUNICIPAL LAW, AND  SECTION  222
 OF THE LABOR LAW; PROVIDED, HOWEVER, THAT AN AUTHORIZED STATE ENTITY MAY
 FULFILL  ITS  OBLIGATIONS  UNDER SECTION 135 OF THE STATE FINANCE LAW OR
 SECTION 101 OF THE GENERAL MUNICIPAL LAW BY REQUIRING THE CONTRACTOR  TO
 PREPARE  SEPARATE  SPECIFICATIONS  IN ACCORDANCE WITH SECTION 135 OF THE
 STATE FINANCE LAW OR SECTION 101 OF THE GENERAL MUNICIPAL  LAW,  AS  THE
 CASE MAY BE.
   § 2. Intentionally omitted.
   §  3. Section 3 of part F of chapter 60 of the laws of 2015 constitut-
 ing the infrastructure investment act, is amended to read as follows:
   § 3. Notwithstanding the provisions of section 38 of the highway  law,
 section  136-a  of  the  state  finance  law,  section 359 of the public
 authorities law, section 7210 of the education law, and  the  provisions
 of  any  other  law to the contrary, and in conformity with the require-
 ments of this act, an authorized state entity may utilize  the  alterna-
 tive delivery method referred to as design-build contracts, in consulta-
 tion  with relevant local labor organizations and construction industry,
 for capital projects related to  the  state's  physical  infrastructure,
 including,  but  not  limited  to,  the state's highways, bridges, dams,
 flood control projects, canals, and parks, including,  but  not  limited
 to,  to  repair damage caused by natural disaster, to correct health and
 safety defects, to comply with federal and state  laws,  standards,  and
 regulations,  to  extend the useful life of or replace the state's high-
 ways, bridges, dams, flood control projects, canals,  and  parks  or  to
 improve  or  add  to  the state's highways, bridges, dams, flood control
 projects, canals, and parks; provided that for the contracts executed by
 the department of transportation, the office of  parks,  recreation  and
 historic  preservation, or the department of environmental conservation,
 the total cost of each such project shall not be  less  than  [one]  TEN
 million [two hundred thousand] dollars [($1,200,000)] ($10,000,000).
   §  4. Section 4 of part F of chapter 60 of the laws of 2015 constitut-
 ing the infrastructure investment act, is amended to read as follows:
   § 4. An entity selected by an authorized state entity to enter into  a
 design-build  contract  shall  be selected through a two-step method, as
 follows:
   (a) Step one. Generation of a list of entities that have  demonstrated
 the  general capability to perform the design-build contract.  Such list
 shall consist of a specified number of entities,  as  determined  by  an
 authorized  state  entity, and shall be generated based upon the author-
 ized state entity's review of responses to a publicly advertised request
 for qualifications. The authorized state entity's request for qualifica-
 tions shall include a general description of the  project,  the  maximum
 number  of  entities  to  be  included  on the list, [and] the selection
 criteria to be used AND THE RELATIVE WEIGHT OF EACH CRITERIA in generat-
 ing the list. Such selection criteria shall include  the  qualifications
 and experience of the design and construction team, organization, demon-
 strated responsibility, ability of the team or of a member or members of

 S. 2009--C                         177                        A. 3009--C
 
 the   team   to  comply  with  applicable  requirements,  including  the
 provisions of articles 145, 147 and  148  of  the  education  law,  past
 record  of  compliance with the labor law, and such other qualifications
 the  authorized state entity deems appropriate which may include but are
 not limited to project understanding, financial capability and record of
 past performance. The authorized state entity shall  evaluate  and  rate
 all  entities  responding to the request for qualifications.  Based upon
 such ratings, the authorized state entity shall list the  entities  that
 shall receive a request for proposals in accordance with subdivision (b)
 of  this section.  To the extent consistent with applicable federal law,
 the authorized state entity shall consider, when awarding  any  contract
 pursuant  to  this  section,  the  participation of: (i) firms certified
 pursuant to article 15-A of the executive law as minority or women-owned
 businesses and the ability of other businesses  under  consideration  to
 work  with  minority  and  women-owned  businesses  so as to promote and
 assist  participation  by  such  businesses;  and  (ii)  small  business
 concerns  identified pursuant to subdivision (b) of section 139-g of the
 state finance law.
   (b) Step two. Selection of the proposal which is the best value to the
 [state] AUTHORIZED STATE ENTITY.   The  authorized  state  entity  shall
 issue  a request for proposals to the entities listed pursuant to subdi-
 vision (a) of this section.  If such an entity consists  of  a  team  of
 separate  entities,  the  entities that comprise such a team must remain
 unchanged from the entity as listed pursuant to subdivision (a) of  this
 section  unless  otherwise  approved by the authorized state entity. The
 request for proposals shall set forth the project's scope of  work,  and
 other  requirements,  as determined by the authorized state entity.  The
 request for proposals shall specify the criteria to be used to  evaluate
 the  responses  and  the  relative  weight of each such criteria.   Such
 criteria  shall  include  the  proposal's  cost,  the  quality  of   the
 proposal's  solution,  the  qualifications and experience of the design-
 build entity, and other factors deemed pertinent by the authorized state
 entity, which may include, but shall not be limited to,  the  proposal's
 project  implementation,  ability  to  complete the work in a timely and
 satisfactory manner, maintenance costs of the completed project, mainte-
 nance of traffic approach, and community impact.  Any  contract  awarded
 pursuant  to  this  act shall be awarded to a responsive and responsible
 entity that submits the proposal, which, in consideration of  these  and
 other  specified  criteria  deemed  pertinent to the project, offers the
 best value to the [state] AUTHORIZED STATE ENTITY, as determined by  the
 authorized  state  entity.    THE  REQUEST FOR PROPOSALS SHALL INCLUDE A
 STATEMENT THAT ENTITIES SHALL DESIGNATE IN WRITING THOSE PORTIONS OF THE
 PROPOSAL THAT CONTAIN TRADE SECRETS  OR  OTHER  PROPRIETARY  INFORMATION
 THAT  ARE TO REMAIN CONFIDENTIAL; THAT THE MATERIAL DESIGNATED AS CONFI-
 DENTIAL SHALL BE READILY SEPARABLE FROM THE ENTITY'S  PROPOSAL.  Nothing
 herein shall be construed to prohibit the authorized entity from negoti-
 ating  final contract terms and conditions including cost. ALL PROPOSALS
 SUBMITTED SHALL BE SCORED  ACCORDING  TO  THE  CRITERIA  LISTED  IN  THE
 REQUEST  FOR  PROPOSALS  AND SUCH FINAL SCORES SHALL BE PUBLISHED ON THE
 AUTHORIZED STATE ENTITY'S WEBSITE.
   § 5. Intentionally omitted.
   § 6. Intentionally omitted.
   § 7. Intentionally omitted.
   § 8. Intentionally omitted.
   § 9. Intentionally omitted.
   § 10. Intentionally omitted.

 S. 2009--C                         178                        A. 3009--C
 
   § 11. Section 13 of part F of chapter 60 of the laws of  2015  consti-
 tuting the infrastructure investment act, is amended to read as follows:
   §  13. Alternative construction awarding processes.  (a) Notwithstand-
 ing the provisions of any other law  to  the  contrary,  the  authorized
 state entity may award a construction contract:
   1. To the contractor offering the best value; or
   2.  Utilizing  a cost-plus not to exceed guaranteed maximum price form
 of contract in which the authorized state entity shall  be  entitled  to
 monitor  and  audit  all project costs. In establishing the schedule and
 process for determining a guaranteed maximum price, the contract between
 the authorized state entity and the contractor shall:
   (i) describe the scope of the work and the  cost  of  performing  such
 work;
   (ii) include a detailed line item cost breakdown;
   (iii)  include a list of all drawings, specifications and other infor-
 mation on which the guaranteed maximum price is based;
   (iv) include the dates for substantial and final completion  on  which
 the guaranteed maximum price is based; and
   (v) include a schedule of unit prices; or
   3.  Utilizing  a  lump  sum contract in which the contractor agrees to
 accept a set dollar amount for a contract which comprises a  single  bid
 without  providing a cost breakdown for all costs such as for equipment,
 labor, materials, as well as such contractor's profit for completing all
 items of work comprising the project.
   (b) Capital projects undertaken by  an  authorized  state  entity  may
 include  an  incentive  clause  in  the contract for various performance
 objectives, but the incentive clause shall not include an incentive that
 exceeds the quantifiable value of the benefit received  by  the  [state]
 AUTHORIZED  STATE  ENTITY.  The  authorized state entity shall establish
 such performance and payment bonds as it deems necessary.
   § 12. Intentionally omitted.
   § 13. Intentionally omitted.
   § 14. Section 17 of part F of chapter 60 of the laws of  2015  consti-
 tuting the infrastructure investment act, is amended to read as follows:
   §  17.  This act shall take effect immediately and shall expire and be
 deemed repealed [2] 4 years after such  date,  provided  that,  projects
 with  requests  for  qualifications issued prior to such repeal shall be
 permitted to continue under this act notwithstanding such repeal.
   § 15. This act shall take effect immediately; provided,  however  that
 the amendments to the infrastructure investment act made by sections one
 through thirteen of this act shall not affect the repeal of such act and
 shall be deemed repealed therewith.
 
                                 PART SSS
 
   Section  1. Subdivision 28 of section 501 of the retirement and social
 security law, as added by chapter 298 of the laws of 2016, is amended to
 read as follows:
   28. "New York city enhanced plan member" shall mean  (a)  a  New  York
 city  police/fire  revised  plan  member  who  becomes  subject  to  the
 provisions of this article on or  after  June  fifteenth,  two  thousand
 sixteen and who is a member of the New York city fire department pension
 fund, (b) a police/fire member who is a member of the New York city fire
 department pension fund and who makes an election, which shall be irrev-
 ocable and shall be duly executed and filed with the administrative head
 of  such  pension  fund  no later than one hundred twenty days after the

 S. 2009--C                         179                        A. 3009--C
 
 effective date of this subdivision, to be subject to the  provisions  of
 this  article related to New York city enhanced plan members, [or] (c) a
 New York city police/fire revised plan member who became subject to  the
 provisions  of this article before June fifteenth, two thousand sixteen,
 who is a member of the New York city fire department pension  fund,  and
 who  makes  an  election,  which  shall be irrevocable and shall be duly
 executed and filed with the administrative head of such pension fund  no
 later  than  one  hundred  twenty  days after the effective date of this
 subdivision, to be subject to the provisions of this article related  to
 New  York  city  enhanced  plan members, (D) A NEW YORK CITY POLICE/FIRE
 REVISED PLAN MEMBER WHO BECOMES SUBJECT TO THE PROVISIONS OF THIS  ARTI-
 CLE  ON OR AFTER APRIL FIRST, TWO THOUSAND SEVENTEEN AND WHO IS A MEMBER
 OF THE NEW YORK CITY POLICE PENSION FUND, (E) A POLICE/FIRE  MEMBER  WHO
 IS  A  MEMBER  OF THE NEW YORK CITY POLICE PENSION FUND AND WHO MAKES AN
 ELECTION, WHICH SHALL BE IRREVOCABLE AND  SHALL  BE  DULY  EXECUTED  AND
 FILED  WITH  THE  ADMINISTRATIVE HEAD OF SUCH PENSION FUND NO LATER THAN
 ONE HUNDRED TWENTY DAYS AFTER THE EFFECTIVE DATE OF THE CHAPTER  OF  THE
 LAWS  OF  TWO  THOUSAND  SEVENTEEN WHICH AMENDED THIS SUBDIVISION, TO BE
 SUBJECT TO THE PROVISIONS OF THIS  ARTICLE  RELATED  TO  NEW  YORK  CITY
 ENHANCED  PLAN  MEMBERS, OR (F) A NEW YORK CITY POLICE/FIRE REVISED PLAN
 MEMBER WHO BECAME SUBJECT TO THE PROVISIONS OF THIS ARTICLE BEFORE APRIL
 FIRST, TWO THOUSAND SEVENTEEN, WHO IS A MEMBER  OF  THE  NEW  YORK  CITY
 POLICE  PENSION  FUND,  AND WHO MAKES AN ELECTION, WHICH SHALL BE IRREV-
 OCABLE AND SHALL BE DULY EXECUTED AND FILED WITH THE ADMINISTRATIVE HEAD
 OF SUCH PENSION FUND NO LATER THAN ONE HUNDRED  TWENTY  DAYS  AFTER  THE
 EFFECTIVE  DATE  OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND SEVENTEEN
 WHICH AMENDED THIS SUBDIVISION, TO BE SUBJECT TO THE PROVISIONS OF  THIS
 ARTICLE RELATED TO NEW YORK CITY ENHANCED PLAN MEMBERS.
   § 2. Subdivision h of section 517 of the retirement and social securi-
 ty  law, as added by chapter 298 of the laws of 2016, is amended to read
 as follows:
   h. Notwithstanding any inconsistent provision of subdivision a of this
 section, New York city enhanced plan members WHO ARE MEMBERS OF THE  NEW
 YORK  CITY  FIRE DEPARTMENT PENSION FUND shall, as of the effective date
 of this subdivision PURSUANT TO CHAPTER TWO HUNDRED NINETY-EIGHT OF  THE
 LAWS  OF  TWO THOUSAND SIXTEEN, contribute three percent of annual wages
 to the pension fund in which they have membership,  plus  an  additional
 percentage  of  annual  wages as set forth in the chapter of the laws of
 two thousand sixteen which added this subdivision.
   § 3. Section 517 of the retirement and social security law is  amended
 by adding a new subdivision i to read as follows:
   I. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF SUBDIVISION A OF THIS
 SECTION,  NEW YORK CITY ENHANCED PLAN MEMBERS WHO ARE MEMBERS OF THE NEW
 YORK CITY POLICE PENSION FUND SHALL, AS OF THE EFFECTIVE  DATE  OF  THIS
 SUBDIVISION,  CONTRIBUTE  THREE  PERCENT  OF ANNUAL WAGES TO THE PENSION
 FUND IN WHICH THEY HAVE MEMBERSHIP, PLUS  AN  ADDITIONAL  PERCENTAGE  OF
 ANNUAL  WAGES  AS  SET  FORTH IN THE CHAPTER OF THE LAWS OF TWO THOUSAND
 SEVENTEEN WHICH ADDED THIS SUBDIVISION.
   § 4. New York city enhanced plan members, as defined in section 501 of
 the retirement and social security law as amended by section one of this
 act, shall contribute, pursuant to subdivision i of section 517  of  the
 retirement  and  social  security  law as added by section three of this
 act, an additional one percent of annual wages to the  pension  fund  in
 which they have membership. Every three years from the effective date of
 this  act,  the  actuary of such pension fund shall prepare an analysis,
 using current actuarial methods and assumptions in effect as of the date

 S. 2009--C                         180                        A. 3009--C
 
 of such analysis, assessing the total cost  of  providing  the  benefits
 established  by  this  act  expressed  as  an employee contribution of a
 percentage of annual wages of New York City enhanced plan members  which
 would  require no additional employer contribution. On the basis of such
 analysis, the additional percentage of annual wages provided for  herein
 shall  be  adjusted to equal one percent of annual wages plus any amount
 by which the employee contribution calculated in such  analysis  exceeds
 2.2  percent  of annual wages, provided, however, that in no event shall
 the additional percentage of annual wages exceed 3 percent.
   § 5. Section 81 of chapter 18 of the laws of 2012 shall not  apply  to
 this act.
   § 6. This act shall take effect immediately.
   FISCAL NOTE.--Pursuant to Legislative Law, Section 50:
   PROVISIONS  OF  PROPOSED  LEGISLATION:  The proposed legislation would
 amend provisions of the Retirement and Social  Security  Law  (RSSL)  to
 permit  existing  New  York City Police Pension Fund (POLICE) Tier 3 and
 Revised Tier 3 POLICE Members to elect  to  join  the  RSSL  Article  14
 Enhanced  Plan,  and  require participation for those POLICE Members who
 become subject to Article 14 on or after April  1,  2017.  The  Enhanced
 Plan  provides  changes  to  Accidental  Disability Retirement (ADR) and
 Ordinary Disability Retirement (ODR) benefits, and  includes  a  formula
 for  adjusting  increased  contribution rates within defined parameters.
 The proposed legislation would also allow  eligible  POLICE  Members  to
 utilize applicable statutory presumptions for purposes of ADR.
   The  Effective  Date  of the proposed legislation would be the date of
 enactment.
   For purposes of this Fiscal Note, all POLICE members subject to  Arti-
 cle  14 of the RSSL will be referred to as "Tier 3 POLICE Members." Tier
 3 POLICE Members who have a date of membership prior to  April  1,  2012
 will  be  referred to as "Original Tier 3 POLICE Members." Tier 3 POLICE
 Members who have a date of membership on or after April 1, 2012 will  be
 referred to as "Revised Tier 3 POLICE Members."
   Tier  3  POLICE  Members  who are Members prior to April 1, 2017 would
 have the option of remaining under  the  current  benefit  structure  or
 irrevocably  electing,  within  120  days  of  the effective date of the
 proposed  legislation,  to  be  covered  under  the  benefit   structure
 contained  in the proposed legislation. Tier 3 POLICE Members who become
 Members on and after April 1, 2017  would  be  subject  to  the  benefit
 structure  contained  in the proposed legislation. Tier 3 POLICE Members
 who elect the benefits of this proposed legislation, and Tier  3  POLICE
 Members  who  are subject to mandatory participation, are referred to as
 "POLICE Enhanced Plan Members."
   POLICE Enhanced Plan Members would, in addition to paying the  current
 contribution rate of 3% of annual wages, be required to contribute addi-
 tional contributions initially at 1% of annual wages and, in the future,
 ranging  from 1% to 3% of annual wage depending on specified future cost
 calculations of providing POLICE Enhanced Plan benefits.
   CURRENT ODR BENEFITS PAYABLE: The current  ODR  benefits  for  Tier  3
 POLICE Members are equal to the greater of:
   * 33 1/3% of Final Average Salary (FAS), or
   *  2% of FAS multiplied by years of credited service (not in excess of
 22 years),
   Reduced by:
   * 50% of the Primary Social Security Disability  benefits  (determined
 under RSSL Section 511), and
   * 100% of Workers' Compensation benefits (if any).

 S. 2009--C                         181                        A. 3009--C

   FAS  is a Three-Year Average (FAS3) for Original Tier 3 POLICE Members
 and a Five-Year Average (FAS5) for Revised Tier 3 POLICE Members.
   It  is  the  understanding  of the Actuary that POLICE Members are not
 covered by Workers' Compensation.
   IMPACT ON ODR BENEFITS PAYABLE: Under the  proposed  legislation,  the
 ODR  benefits  for  POLICE  Enhanced Plan Members would be revised to be
 equal to the greater of:
   * 33 1/3% of FAS5, or
   * 2% of FAS5 multiplied by years of credited service (not in excess of
 22 years).
   Reduced by:
   * 100% of Workers' Compensation benefits (if any).
   It is the understanding of the Actuary that  POLICE  Members  are  not
 covered by Workers' Compensation.
   Eligibility  for  ODR  benefits for Enhanced Plan Members would remain
 the same.
   In addition, the proposed legislation would NOT apply  the  Escalation
 available  under  RSSL  Section  510 to ODR benefits for POLICE Enhanced
 Plan Members. However, such ODR benefits would  still  be  eligible  for
 Cost-of-Living Adjustments (COLA) under Chapter 125 of the Laws of 2000.
   CURRENT  ADR  BENEFITS  PAYABLE:  The  current ADR benefits for Tier 3
 POLICE Members is equal to:
   * 50% multiplied by FAS,
   Reduced by:
   * 50% of Primary Social Security disability benefit or Primary  Social
 Security benefits, whichever begins first (determined under RSSL Section
 511), and
   * 100% of Workers' Compensation benefits (if any).
   FAS  is  a  FAS3  for  Original  Tier  3 POLICE Members and a FAS5 for
 Revised Tier 3 POLICE Members.
   It is the understanding of the Actuary that  POLICE  Members  are  not
 covered by Workers' Compensation.
   IMPACT  ON  ADR  BENEFITS PAYABLE: Under the proposed legislation, the
 eligibility requirements for  ADR  benefits  for  POLICE  Enhanced  Plan
 Members  would  be  the  same as current Tier 3 POLICE Members. However,
 these Members would also become eligible to utilize applicable statutory
 presumptions (e.g., certain heart conditions) for purposes of ADR.
   Under the proposed legislation, the ADR  benefits  for  Enhanced  Plan
 Members would be revised to equal a retirement allowance of:
   * 75% multiplied by FAS5,
   Reduced by:
   * 100% of Workers' Compensation benefits (if any).
   It  is  the  understanding  of the Actuary that POLICE Members are not
 covered by Workers' Compensation.
   In addition, the proposed legislation would NOT apply  the  Escalation
 available  under  RSSL  Section  510  to  ADR benefits for Enhanced Plan
 Members. However, such ADR benefits would still  be  eligible  for  COLA
 under Chapter 125 of the Laws of 2000.
   FINANCIAL  IMPACT  -  CHANGES  IN PROJECTED ACTUARIAL PRESENT VALUE OF
 FUTURE EMPLOYER CONTRIBUTIONS AND PROJECTED EMPLOYER CONTRIBUTIONS:  For
 purposes  of  this  Fiscal  Note,  it is assumed that the changes in the
 Actuarial Present Value (APV) of benefits (APVB), APV of member contrib-
 utions, the Unfunded Actuarial  Accrued  Liability  (UAAL)  and  APV  of
 future  employer  contributions would be reflected for the first time in
 the June 30, 2016 actuarial valuation of POLICE. Under the One-Year  Lag
 Methodology  (OYLM),  the  first  year  in which changes in benefits for

 S. 2009--C                         182                        A. 3009--C
 
 Enhanced Plan Members could  impact  employer  contributions  to  POLICE
 would be Fiscal Year 2018.
   The estimated increases in employer contributions shown in Table 1 are
 based upon the following projection assumptions:
   *  Level workforce (i.e., new employees are hired to replace those who
 leave active status).
   * Salary increases consistent with those used  in  projections  to  be
 presented to the New York City Office of Management and Budget in April,
 2017 (Preliminary Projections).
   *  New  entrant salaries consistent with those used in the Preliminary
 Projections.
   OTHER COSTS: Not measured in this Fiscal Note are the following:
   * The initial, additional administrative costs of POLICE to  implement
 the proposed legislation.
   *  The  impact  of  this  proposed legislation on Other Postemployment
 Benefit (OPEB) costs.
   CENSUS DATA: The  starting  census  data  used  for  the  calculations
 presented  herein  is  the  census data used in the Preliminary June 30,
 2016 (Lag) actuarial valuation of POLICE to  determine  the  Preliminary
 Fiscal Year 2018 employer contributions.
   The 3,211 Original Tier 3 POLICE members who have a date of membership
 prior to April 1, 2012 had an average age of approximately 31.3, average
 service of approximately 5.2 years and an average salary of approximate-
 ly  $87,300 as of June 30, 2016. The 7,998 Revised Tier 3 POLICE Members
 who have a date of membership on or after April 1, 2012 had  an  average
 age  of  approximately  28.4, average service of approximately 1.8 years
 and an average salary of approximately $58,400 as of June 30, 2016.
   ACTUARIAL ASSUMPTIONS AND METHODS: The  additional  employer  contrib-
 utions  presented  herein  have  been  calculated based on the actuarial
 assumptions and methods in effect for  the  Preliminary  June  30,  2016
 (Lag) actuarial valuations used to determine the Preliminary Fiscal Year
 2018 employer contributions of POLICE.
   In determining the change in employer contributions, the probabilities
 of  accidental  disability  used  for  Tier 3 POLICE members equal those
 currently used for Tier 2 POLICE members who are not eligible for  World
 Trade Center benefits.
   It  has been further assumed that all Tier 3 POLICE members who became
 members  prior  to  April  1,  2017  will  choose  the  new   disability
 provisions.
   The  actuarial valuation methodology does not include a calculation of
 the value of an offset for Workers' Compensation  benefits  for  Tier  3
 POLICE  members  as  it  is  the understanding of the Actuary that these
 members are not covered by such benefits.
   Employer contributions under current methodology have  been  estimated
 assuming  the  additional  APVB  would be financed through future normal
 contributions including an amortization of the new UAAL attributable  to
 this  proposed  legislation over a 15-year period (14 payments under the
 OYLM Methodology).
   New entrants were projected to replace the members expected  to  leave
 the active population to maintain a steady-state population.
   For  purposes  of  estimating  the  financial  impact  of  the changes
 described above, an assumed Escalation rate of 2.5% was used for current
 Tier 3 Police Member benefits, which is consistent with  the  underlying
 Consumer  Price  Inflation (CPI) assumption of 2.5% per year. Consistent
 with Chapter 125 of the Laws of 2000, a  COLA  rate  of  1.5%  per  year
 (i.e., 50% of CPI adjusted to recognize a 1.0% minimum and 3.0% maximum)

 S. 2009--C                         183                        A. 3009--C
 
 on  the  first  $18,000  of  benefit was assumed for purposes of valuing
 proposed Enhanced Plan benefits.
   In  accordance  with ACNY Section 13.638.2(k-2), new UAAL attributable
 to benefit changes are to be amortized as determined by the Actuary  but
 generally  over  the remaining working lifetime of those impacted by the
 benefit changes. As of June 30, 2016, the remaining working lifetime  of
 the  Tier  3  POLICE members is approximately 18 years. Recognizing that
 this period will decrease over  time  as  the  group  of  Enhanced  Plan
 Members  matures,  the  Actuary  would likely choose to amortize the new
 UAAL attributable to this proposed legislation over a 15-year to 20-year
 period (between 14 and 19 payments  under  the  OYLM  Methodology).  For
 purposes  of  this  Fiscal Note, the Actuary has elected to amortize the
 change in UAAL over a 15-year period (14 payments).
   Table 1 presents an estimate of the increases in  the  APV  of  future
 employer  contributions  and  in  employer  contributions  to POLICE for
 Fiscal Years 2018 through 2022  due  to  the  changes  in  ODR  and  ARD
 provisions  for  Enhanced Plan Members based on the applicable actuarial
 assumptions and methods noted herein:
 
                                  Table 1
 
                   Estimated Financial Impact on POLICE
                     If certain Revisions are Made to
       Provisions for ODR and ADR Benefits for Tier 3 POLICE Members
 
                               ($ Millions)
 
                          Increase in APV of            Increase
      Fiscal Year         Future Employer               In Employer
                          Contributions                 Contributions
         2018                  $69.4                       $13.1
         2019                   74.2                        14.1
         2020                   77.7                        15.1
         2021                   79.7                        15.9
         2022                   80.7                        16.3
 
   Table 2 presents the total number of active employees of  POLICE  used
 in  the  projections,  assuming  a  level work force, and the cumulative
 number (i.e., net of withdrawals) of Tier 3 Members as of each  June  30
 from 2016 thorough 2020.
 
                                  Table 2
 
            Surviving Actives from Census Data on June 30, 2016
                                    and
                Cumulative Tier 3 POLICE Members from 2016
                         Used in the Projections*
 
           June 30        Tier 1 & 2          Tier 3         Total
             2016           24,752            11,209         35,961
             2017           22,798            13,163         35,961
             2018           20,785            15,176         35,961
             2019           18,976            16,985         35,961
             2020           17,532            18,429         35,961

 S. 2009--C                         184                        A. 3009--C
 
   * Total active members included in the projections assume a level work
 force based on the June 30, 2016 (Lag) actuarial valuation census data.
   STATEMENT  OF ACTUARIAL OPINION: I, Sherry S. Chan, am the Chief Actu-
 ary for, and independent of, the New York City Pension Funds and Retire-
 ment Systems. I am a Fellow of the Society of Actuaries, a Fellow of the
 Conference of Consulting Actuaries and a Member of the American  Academy
 of Actuaries. I meet the Qualifications Standards of the American Acade-
 my of Actuaries to render the actuarial opinion contained herein.
   FISCAL  NOTE  IDENTIFICATION:  This Fiscal Note 2017-04 dated April 3,
 2017 was prepared by the Chief Actuary for  the  New  York  City  POLICE
 Pension  Fund.  This  estimate  is intended for use only during the 2017
 Legislative Session.
 
                                 PART TTT
 
   Section 1. The section heading of section 421-a of the  real  property
 tax  law, as amended by chapter 857 of the laws of 1975 and such section
 as renumbered by chapter 110 of the laws of 1977, is amended to read  as
 follows:
   [Exemption  of new multiple dwellings from local taxation.] AFFORDABLE
 NEW YORK HOUSING PROGRAM.
   § 2. Subparagraphs (i) and (iii) of paragraph (a) of subdivision 10 of
 section 421-a of the real property tax law, as amended by chapter 15  of
 the laws of 2008, are amended to read as follows:
   (i)  all  rent  stabilization registrations required to be filed on or
 after January first, two thousand  eight  shall  contain  a  designation
 which  identifies  all  units that are subject to the provisions of this
 section as "[421-a] AFFORDABLE  NEW  YORK  HOUSING  PROGRAM  units"  and
 specifically  identifies  affordable  units  created  pursuant  to  this
 section and units which are required to be occupied by persons or  fami-
 lies  who  meet  specified income limits pursuant to the provisions of a
 local law enacted pursuant to this section as  "[421-a]  AFFORDABLE  NEW
 YORK  HOUSING PROGRAM affordable units" and shall contain an explanation
 of the requirements that apply to all such units. The owner  of  a  unit
 that  is subject to the provisions of this section shall, in addition to
 complying with the requirements of section 26-517 of the rent stabiliza-
 tion law, file a copy of the rent registration for each such  unit  with
 the local housing agency;
   (iii) the local housing agency shall create a report which, at a mini-
 mum,  contains  the  following  information  for  every  building  which
 receives benefits pursuant to this section:  address,  commencement  and
 termination  date  of  the  benefits, total number of residential units,
 number of "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM units" and number
 of "[421-a] AFFORDABLE  NEW  YORK  HOUSING  PROGRAM  affordable  units",
 apartment  number  or  other  designation of such units and the rent for
 each of such units. The local housing agency with the cooperation of the
 division of housing and community renewal  shall  maintain,  and  update
 such  report no less than annually, with information secured from annual
 registrations. Such reports shall be available for public inspection  in
 a  form  that  assigns  a unique designation to each unit other than its
 actual apartment number to maintain the privacy of such information; and
   § 3. Subdivision 16 of section 421-a of the real property tax law,  as
 added  by  section  63-c of part A of chapter 20 of the laws of 2015, is
 amended to read as follows:
   16. (a) Definitions. For the purposes of this subdivision:

 S. 2009--C                         185                        A. 3009--C
 
   (i) "[421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits" shall  mean
 exemption from real property taxation pursuant to this subdivision.
   (ii)  "Affordability  option  A"  shall mean that, within any eligible
 site:  (A) not less than ten percent of the dwelling units are  afforda-
 ble  housing  forty  percent  units; (B) not less than an additional ten
 percent of the dwelling  units  are  affordable  housing  sixty  percent
 units;  (C)  not  less  than  an additional five percent of the dwelling
 units are affordable housing one hundred thirty percent units;  and  (D)
 such  eligible  site  is developed without the substantial assistance of
 grants, loans or subsidies provided by a federal, state or local govern-
 mental agency or instrumentality pursuant to a program for the  develop-
 ment  of  affordable housing, except that such eligible site may receive
 tax exempt bond proceeds and four percent tax credits.
   (iii) "Affordability option B" shall mean that,  within  any  eligible
 site, (A) not less than ten percent of the dwelling units are affordable
 housing seventy percent units, and (B) not less than an additional twen-
 ty  percent  of  the  dwelling  units are affordable housing one hundred
 thirty percent units.
   (iv) "Affordability option C" shall mean  that,  within  any  eligible
 site  excluding  the geographic area south of ninety-sixth street in the
 borough of Manhattan, and all other geographic areas in the city of  New
 York excluded pursuant to local law, (A) not less than thirty percent of
 the  dwelling  units  are  affordable housing one hundred thirty percent
 units, and (B) such eligible site is developed without  the  substantial
 assistance of grants, loans or subsidies provided by a federal, state or
 local  governmental  agency or instrumentality pursuant to a program for
 the development of affordable housing.
   (v) "Affordability option D"  shall  only  apply  to  a  homeownership
 project, of which one hundred percent of the units shall have an average
 assessed  value not to exceed sixty-five thousand dollars upon the first
 assessment following the completion date and where  each  owner  of  any
 such unit shall agree, in writing, to maintain such unit as their prima-
 ry  residence  for  no less than five years from the acquisition of such
 unit.
   (VI) "AFFORDABILITY OPTION E" SHALL MEAN  THAT,  WITHIN  ANY  ELIGIBLE
 SITE  WITHIN  THE ENHANCED AFFORDABILITY AREA, SUCH SITE MUST CONSIST OF
 NO LESS THAN THREE HUNDRED RENTAL DWELLING UNITS OF WHICH (A)  NOT  LESS
 THAN  TEN  PERCENT  OF  THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING
 FORTY PERCENT UNITS; (B) NOT LESS THAN AN ADDITIONAL TEN PERCENT OF  THE
 RENTAL  DWELLING  UNITS  ARE AFFORDABLE HOUSING SIXTY PERCENT UNITS; (C)
 NOT LESS THAN AN ADDITIONAL FIVE PERCENT OF THE  RENTAL  DWELLING  UNITS
 ARE  AFFORDABLE  HOUSING  ONE HUNDRED TWENTY PERCENT UNITS; AND (D) SUCH
 ELIGIBLE SITE IS DEVELOPED WITHOUT THE SUBSTANTIAL ASSISTANCE OF GRANTS,
 LOANS OR SUBSIDIES PROVIDED BY A FEDERAL, STATE  OR  LOCAL  GOVERNMENTAL
 AGENCY  OR  INSTRUMENTALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF
 AFFORDABLE HOUSING, EXCEPT THAT  SUCH  ELIGIBLE  SITE  MAY  RECEIVE  TAX
 EXEMPT BOND PROCEEDS AND FOUR PERCENT TAX CREDITS.
   (VII)  "AFFORDABILITY  OPTION  F" SHALL MEAN THAT, WITHIN ANY ELIGIBLE
 SITE WITHIN THE ENHANCED AFFORDABILITY AREA, SUCH SITE MUST  CONSIST  OF
 NO  LESS  THAN THREE HUNDRED RENTAL DWELLING UNITS OF WHICH (A) NOT LESS
 THAN TEN PERCENT OF THE RENTAL DWELLING  UNITS  ARE  AFFORDABLE  HOUSING
 SEVENTY  PERCENT  UNITS;  AND  (B)  NOT  LESS  THAN AN ADDITIONAL TWENTY
 PERCENT OF THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING ONE  HUNDRED
 THIRTY PERCENT UNITS.
   (VIII)  "AFFORDABILITY  OPTION G" SHALL MEAN THAT, WITHIN ANY ELIGIBLE
 SITE LOCATED WITHIN THE BROOKLYN  ENHANCED  AFFORDABILITY  AREA  OR  THE

 S. 2009--C                         186                        A. 3009--C

 QUEENS  ENHANCED  AFFORDABILITY  AREA, SUCH SITE MUST CONSIST OF NO LESS
 THAN THREE HUNDRED RENTAL DWELLING UNITS OF  WHICH  (A)  NOT  LESS  THAN
 THIRTY  PERCENT OF THE RENTAL DWELLING UNITS ARE AFFORDABLE HOUSING ONE-
 HUNDRED  THIRTY  PERCENT  UNITS; AND (B) SUCH ELIGIBLE SITE IS DEVELOPED
 WITHOUT  THE  SUBSTANTIAL  ASSISTANCE  OF  GRANTS,  LOANS  OR  SUBSIDIES
 PROVIDED  BY A FEDERAL, STATE OR LOCAL GOVERNMENTAL AGENCY OR INSTRUMEN-
 TALITY PURSUANT TO A PROGRAM FOR THE DEVELOPMENT OF AFFORDABLE HOUSING.
   [(vi)] (IX) "Affordability percentage"  shall  mean  a  fraction,  the
 numerator  of  which  is  the  number  of affordable housing units in an
 eligible site and the denominator of which is the total number of dwell-
 ing units in such eligible site.
   [(vii)] (X) "Affordable housing  forty  percent  unit"  shall  mean  a
 dwelling  unit  that: (A) is situated within the eligible site for which
 [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits  are  granted;  and
 (B)  upon  initial  rental  and  upon each subsequent rental following a
 vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
 APPLICABLE, is affordable to and restricted to occupancy by  individuals
 or  families whose household income does not exceed forty percent of the
 area median income, adjusted for family size,  at  the  time  that  such
 household initially occupies such dwelling unit.
   [(viii)]  (XI)  "Affordable  housing  sixty percent unit" shall mean a
 dwelling unit that: (A) is situated within the eligible site  for  which
 [421-a]  AFFORDABLE  NEW  YORK HOUSING PROGRAM benefits are granted; and
 (B) upon initial rental and upon  each  subsequent  rental  following  a
 vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
 APPLICABLE,  is affordable to and restricted to occupancy by individuals
 or families whose household income does not exceed sixty percent of  the
 area  median  income,  adjusted  for  family size, at the time that such
 household initially occupies such dwelling unit.
   [(ix)] (XII) "Affordable housing seventy percent unit"  shall  mean  a
 dwelling  unit  that: (A) is situated within the eligible site for which
 [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits  are  granted;  and
 (B)  upon  initial  rental  and  upon each subsequent rental following a
 vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
 APPLICABLE, is affordable to and restricted to occupancy by  individuals
 or  families  whose  household income does not exceed seventy percent of
 the area median income, adjusted for family size, at the time that  such
 household initially occupies such dwelling unit.
   (XIII) "AFFORDABLE HOUSING ONE HUNDRED TWENTY PERCENT UNIT" SHALL MEAN
 A DWELLING UNIT THAT: (A) IS SITUATED WITHIN THE ELIGIBLE SITE FOR WHICH
 AFFORDABLE  NEW  YORK HOUSING PROGRAM BENEFITS ARE GRANTED; AND (B) UPON
 INITIAL RENTAL AND UPON  EACH  SUBSEQUENT  RENTAL  FOLLOWING  A  VACANCY
 DURING  THE EXTENDED RESTRICTION PERIOD, IS AFFORDABLE TO AND RESTRICTED
 TO OCCUPANCY BY INDIVIDUALS OR FAMILIES WHOSE HOUSEHOLD INCOME DOES  NOT
 EXCEED  ONE  HUNDRED  TWENTY PERCENT OF THE AREA MEDIAN INCOME, ADJUSTED
 FOR FAMILY SIZE, AT THE TIME THAT SUCH HOUSEHOLD INITIALLY OCCUPIES SUCH
 DWELLING UNIT.
   [(x)] (XIV) "Affordable housing one hundred thirty percent unit" shall
 mean a dwelling unit that: (A) is situated within the eligible site  for
 which  [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits are granted;
 and (B) upon initial rental and upon each subsequent rental following  a
 vacancy during the restriction period OR EXTENDED RESTRICTION PERIOD, AS
 APPLICABLE,  is affordable to and restricted to occupancy by individuals
 or families whose household income does not exceed  one  hundred  thirty
 percent of the area median income, adjusted for family size, at the time
 that such household initially occupies such dwelling unit.

 S. 2009--C                         187                        A. 3009--C
 
   [(xi)]  (XV)  "Affordable  housing  unit" shall mean, collectively and
 individually, affordable housing forty percent units, affordable housing
 sixty percent units, affordable housing seventy percent units,  AFFORDA-
 BLE  HOUSING ONE HUNDRED TWENTY PERCENT UNITS and affordable housing one
 hundred thirty percent units.
   [(xii)]  (XVI) "Agency" shall mean the department of housing preserva-
 tion and development.
   [(xiii)] (XVII) "Application" shall mean an  application  for  [421-a]
 AFFORDABLE NEW YORK HOUSING PROGRAM benefits.
   [(xiv)]  (XVIII)  "AVERAGE HOURLY WAGE" SHALL MEAN THE AMOUNT EQUAL TO
 THE AGGREGATE AMOUNT OF ALL WAGES AND ALL EMPLOYEE BENEFITS PAID TO,  OR
 ON  BEHALF OF, CONSTRUCTION WORKERS FOR CONSTRUCTION WORK DIVIDED BY THE
 AGGREGATE NUMBER OF HOURS OF CONSTRUCTION WORK.
   (XIX) "BROOKLYN ENHANCED AFFORDABILITY AREA" SHALL MEAN ANY  TAX  LOTS
 NOW  EXISTING  OR  HEREAFTER  CREATED  WHICH ARE LOCATED ENTIRELY WITHIN
 COMMUNITY BOARDS ONE OR TWO OF  THE  BOROUGH  OF  BROOKLYN  BOUNDED  AND
 DESCRIBED AS FOLLOWS: ALL THAT PIECE OR PARCEL OF LAND SITUATE AND BEING
 IN THE BOROUGHS OF QUEENS AND BROOKLYN, NEW YORK. BEGINNING AT THE POINT
 OF  INTERSECTION  OF  THE  CENTERLINE  OF NEWTOWN CREEK AND THE WESTERLY
 BOUNDS OF THE EAST RIVER; THENCE SOUTHEASTERLY ALONG THE  CENTERLINE  OF
 NEWTOWN  CREEK,  SAID  CENTERLINE ALSO BEING THE BOUNDARY BETWEEN QUEENS
 COUNTY TO THE NORTHEAST AND KINGS COUNTY TO THE SOUTHWEST, TO THE  POINT
 OF  INTERSECTION  WITH  GREENPOINT  AVENUE;  THENCE  SOUTHWESTERLY ALONG
 GREENPOINT AVENUE, TO THE INTERSECTION WITH KINGS  LAND  AVENUE;  THENCE
 SOUTHERLY ALONG KINGSLAND AVENUE TO THE INTERSECTION WITH MEEKER AVENUE;
 THENCE  SOUTHWESTERLY  ALONG  MEEKER  AVENUE  TO  THE  INTERSECTION WITH
 LEONARD STREET; THENCE SOUTHERLY ALONG  LEONARD  STREET  TO  THE  INTER-
 SECTION  WITH  METROPOLITAN  AVENUE;  THENCE WESTERLY ALONG METROPOLITAN
 AVENUE TO THE INTERSECTION WITH LORIMER STREET; THENCE  SOUTHERLY  ALONG
 LORIMER STREET TO THE INTERSECTION WITH MONTROSE AVENUE; THENCE WESTERLY
 ALONG  MONTROSE  AVENUE  TO  THE  INTERSECTION WITH UNION AVENUE; THENCE
 SOUTHERLY ALONG UNION AVENUE TO THE INTERSECTION  WITH  JOHNSON  AVENUE;
 THENCE  WESTERLY ALONG JOHNSON AVENUE TO THE INTERSECTION WITH BROADWAY;
 THENCE NORTHWESTERLY ALONG BROADWAY TO THE  INTERSECTION  WITH  RUTLEDGE
 STREET;  THENCE  SOUTHWESTERLY ALONG RUTLEDGE STREET TO THE INTERSECTION
 WITH KENT AVENUE AND CLASSON AVENUE; THENCE SOUTHWESTERLY AND  SOUTHERLY
 ALONG  CLASSON  AVENUE  TO  THE  INTERSECTION WITH DEKALB AVENUE; THENCE
 WESTERLY ALONG DEKALB AVENUE  TO  THE  INTERSECTION  WITH  BOND  STREET;
 THENCE  SOUTHWESTERLY ALONG BOND STREET TO THE INTERSECTION WITH WYCKOFF
 STREET; THENCE NORTHWESTERLY ALONG WYCKOFF STREET  TO  THE  INTERSECTION
 WITH  HOYT  STREET; THENCE SOUTHWESTERLY ALONG HOYT STREET TO THE INTER-
 SECTION WITH WARREN STREET; THENCE NORTHWESTERLY ALONG WARREN STREET  TO
 THE  INTERSECTION  WITH  COURT  STREET; THENCE NORTHEASTERLY ALONG COURT
 STREET TO THE INTERSECTION WITH ATLANTIC  AVENUE;  THENCE  NORTHWESTERLY
 ALONG  ATLANTIC  AVENUE,  CROSSING  UNDER THE BROOKLYN QUEENS EXPRESSWAY
 (AKA INTERSTATE 278), TO THE TERMINUS OF ATLANTIC AVENUE AT THE BROOKLYN
 BRIDGE PARK/PIER 6; THENCE NORTHWESTERLY PASSING  THROUGH  THE  BROOKLYN
 BRIDGE  PARK  TO  THE  BULKHEAD OF THE EAST RIVER AT PIER 6; THENCE IN A
 GENERAL NORTHEASTERLY DIRECTION ALONG THE EASTERLY BULKHEAD OR SHORELINE
 OF THE EAST RIVER TO THE INTERSECTION WITH  THE  CENTERLINE  OF  NEWTOWN
 CREEK, AND THE POINT OR PLACE OF BEGINNING.
   (XX) "Building service employee" shall mean any person who is regular-
 ly employed at, and performs work in connection with the care or mainte-
 nance  of,  an eligible site, including, but not limited to, a watchman,
 guard, doorman, building cleaner, porter, handyman,  janitor,  gardener,
 groundskeeper,  elevator  operator  and starter, and window cleaner, but

 S. 2009--C                         188                        A. 3009--C
 
 not including persons regularly scheduled to work fewer than eight hours
 per week at the eligible site.
   [(xv)]  (XXI)  "Commencement  date"  shall  mean,  with respect to any
 eligible  multiple  dwelling,  the  date  upon  which   excavation   and
 construction of initial footings and foundations lawfully begins in good
 faith  or,  for  an  eligible conversion, the date upon which the actual
 construction of the conversion, alteration or improvement of the pre-ex-
 isting building or structure lawfully begins in good faith.
   [(xvi)] (XXII) "Completion date"  shall  mean,  WITH  RESPECT  TO  ANY
 ELIGIBLE  MULTIPLE DWELLING, the date upon which the local department of
 buildings issues the first temporary or permanent certificate  of  occu-
 pancy covering all residential areas of an eligible multiple dwelling.
   [(xvii)] (XXIII) "Construction period" shall mean, with respect to any
 eligible  multiple dwelling, a period: (A) beginning on the later of the
 commencement date of such eligible  multiple  dwelling  or  three  years
 before  the  completion date of such eligible multiple dwelling; and (B)
 ending on the day preceding the completion date of such eligible  multi-
 ple dwelling.
   (XXIV) "CONSTRUCTION WORK" SHALL MEAN THE PROVISION OF LABOR PERFORMED
 ON  AN  ELIGIBLE  SITE  BETWEEN THE COMMENCEMENT DATE AND THE COMPLETION
 DATE, WHEREBY MATERIALS AND CONSTITUENT PARTS ARE COMBINED TO  INITIALLY
 FORM,  MAKE  OR  BUILD  AN ELIGIBLE MULTIPLE DWELLING, INCLUDING WITHOUT
 LIMITATION, PAINTING, OR PROVIDING OF MATERIAL,  ARTICLES,  SUPPLIES  OR
 EQUIPMENT  IN  THE  ELIGIBLE  MULTIPLE  DWELLING, BUT EXCLUDING SECURITY
 PERSONNEL AND WORK RELATED TO THE FIT-OUT OF COMMERCIAL SPACES.
   (XXV)  "CONSTRUCTION  WORKERS"  SHALL  MEAN  ALL  PERSONS   PERFORMING
 CONSTRUCTION WORK WHO (A) ARE PAID ON AN HOURLY BASIS AND (B) ARE NOT IN
 A MANAGEMENT OR EXECUTIVE ROLE OR POSITION.
   (XXVI)  "CONTRACTOR  CERTIFIED  PAYROLL REPORT" SHALL MEAN AN ORIGINAL
 PAYROLL REPORT SUBMITTED BY A CONTRACTOR OR SUB-CONTRACTOR TO THE  INDE-
 PENDENT  MONITOR  SETTING  FORTH TO THE BEST OF THE CONTRACTOR'S OR SUB-
 CONTRACTOR'S KNOWLEDGE, THE TOTAL NUMBER OF HOURS OF  CONSTRUCTION  WORK
 PERFORMED  BY  CONSTRUCTION  WORKERS,  THE  AMOUNT OF WAGES AND EMPLOYEE
 BENEFITS PAID TO CONSTRUCTION WORKERS FOR CONSTRUCTION WORK.
   [(xviii)] (XXVII) "Eligible conversion"  shall  mean  the  conversion,
 alteration  or  improvement  of  a  pre-existing  building  or structure
 resulting in a multiple  dwelling  in  which  no  more  than  forty-nine
 percent  of  the  floor  area  consists of such pre-existing building or
 structure.
   [(xix)] (XXVIII) "Eligible multiple dwelling" shall  mean  a  multiple
 dwelling  or homeownership project containing six or more dwelling units
 created through new construction or eligible conversion  for  which  the
 commencement  date  is after December thirty-first, two thousand fifteen
 and on or before June fifteenth, two thousand [nineteen] TWENTY-TWO, and
 for which the completion date is on or before June fifteenth, two  thou-
 sand [twenty-three] TWENTY-SIX.
   [(xx)]  (XXIX)  "Eligible  site"  shall  mean  either:  (A)  a tax lot
 containing an eligible multiple dwelling; or (B) a zoning lot containing
 two or more eligible multiple dwellings that are part of a single appli-
 cation.
   (XXX) "EMPLOYEE BENEFITS" SHALL  MEAN  ALL  SUPPLEMENTAL  COMPENSATION
 PAID  BY  THE  EMPLOYER,  ON  BEHALF OF CONSTRUCTION WORKERS, OTHER THAN
 WAGES, INCLUDING, WITHOUT LIMITATION, ANY PREMIUMS OR CONTRIBUTIONS MADE
 INTO PLANS OR FUNDS THAT PROVIDE HEALTH, WELFARE, NON-OCCUPATIONAL DISA-
 BILITY COVERAGE, RETIREMENT, VACATION BENEFITS, HOLIDAY PAY, LIFE INSUR-
 ANCE AND APPRENTICESHIP TRAINING. THE VALUE  OF  ANY  EMPLOYEE  BENEFITS

 S. 2009--C                         189                        A. 3009--C
 
 RECEIVED  SHALL  BE  DETERMINED BASED ON THE PRORATED HOURLY COST TO THE
 EMPLOYER OF THE EMPLOYEE BENEFITS RECEIVED BY CONSTRUCTION WORKERS.
   (XXXI) "ENHANCED AFFORDABILITY AREA" SHALL MEAN THE MANHATTAN ENHANCED
 AFFORDABILITY  AREA,  THE  BROOKLYN  ENHANCED AFFORDABILITY AREA AND THE
 QUEENS ENHANCED AFFORDABILITY AREA.
   (XXXII) "ENHANCED THIRTY-FIVE YEAR BENEFIT" SHALL MEAN:  (A)  FOR  THE
 CONSTRUCTION  PERIOD, A ONE HUNDRED PERCENT EXEMPTION FROM REAL PROPERTY
 TAXATION, OTHER THAN ASSESSMENTS FOR LOCAL IMPROVEMENTS; AND (B) FOR THE
 NEXT THIRTY-FIVE YEARS OF THE EXTENDED RESTRICTION PERIOD, A ONE HUNDRED
 PERCENT EXEMPTION FROM REAL PROPERTY TAXATION,  OTHER  THAN  ASSESSMENTS
 FOR LOCAL IMPROVEMENTS.
   (XXXIII)  "EXTENDED RESTRICTION PERIOD" SHALL MEAN A PERIOD COMMENCING
 ON THE COMPLETION DATE AND EXPIRING ON THE FORTIETH ANNIVERSARY  OF  THE
 COMPLETION  DATE,  NOTWITHSTANDING ANY EARLIER TERMINATION OR REVOCATION
 OF AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS.
   [(xxi)] (XXXIV) "Fiscal officer" shall mean the comptroller  or  other
 analogous officer in a city having a population of one million or more.
   [(xxii)]  (XXXV)  "Floor  area" shall mean the horizontal areas of the
 several floors, or any portion thereof, of a dwelling or dwellings,  and
 accessory  structures on a lot measured from the exterior faces of exte-
 rior walls, or from the center line of party walls.
   [(xxiii)] (XXXVI) "Four percent tax credits" shall  mean  federal  low
 income  housing  tax  credits computed in accordance with clause (ii) of
 subparagraph (B) of paragraph (1) of subsection (b) of section forty-two
 of the internal revenue code of nineteen hundred eighty-six, as amended.
   [(xxiv)] (XXXVII) "Homeownership project" shall mean a multiple dwell-
 ing or portion thereof operated as condominium or  cooperative  housing,
 however,  it  shall  not  include a multiple dwelling or portion thereof
 operated as  cooperative  or  condominium  housing  located  within  the
 borough  of  Manhattan,  and  shall not include a multiple dwelling that
 contains more than thirty-five units.
   [(xxv)] (XXXVIII)  "INDEPENDENT  MONITOR"  SHALL  MEAN  AN  ACCOUNTANT
 LICENSED AND IN GOOD STANDING PURSUANT TO ARTICLE ONE HUNDRED FORTY-NINE
 OF THE EDUCATION LAW.
   (XXXIX)  "JOB  ACTION" SHALL MEAN ANY DELAY, INTERRUPTION OR INTERFER-
 ENCE WITH THE CONSTRUCTION WORK CAUSED  BY  THE  ACTIONS  OF  ANY  LABOR
 ORGANIZATION  OR CONCERTED ACTION OF ANY EMPLOYEES AT THE ELIGIBLE SITE,
 INCLUDING WITHOUT LIMITATION, STRIKES, SYMPATHY STRIKES, WORK STOPPAGES,
 WALK  OUTS,  SLOWDOWNS,  PICKETING,  BANNERING,  HAND  BILLING,   DEMON-
 STRATIONS, SICKOUTS, REFUSALS TO CROSS A PICKET LINE, REFUSALS TO HANDLE
 STRUCK  BUSINESS,  AND  USE  OF  THE RAT OR OTHER INFLATABLE BALLOONS OR
 SIMILAR DISPLAYS.
   (XL) "Market unit" shall mean a dwelling unit in an eligible  multiple
 dwelling other than an affordable housing unit.
   [(xxvi)] (XLI) "Multiple dwelling" shall have the meaning set forth in
 the multiple dwelling law.
   [(xxvii)]  (XLII)  "Non-residential tax lot" shall mean a tax lot that
 does not contain any dwelling units.
   [(xxviii)] (XLIII) "MANHATTAN ENHANCED AFFORDABILITY AREA" SHALL  MEAN
 ANY TAX LOTS NOW EXISTING OR HEREAFTER CREATED LOCATED ENTIRELY SOUTH OF
 96TH STREET IN THE BOROUGH OF MANHATTAN.
   (XLIV)  "PROJECT  LABOR  AGREEMENT"  SHALL  MEAN A PRE-HIRE COLLECTIVE
 BARGAINING AGREEMENT SETTING FORTH THE TERMS AND CONDITIONS  OF  EMPLOY-
 MENT FOR THE CONSTRUCTION WORKERS ON AN ELIGIBLE SITE.
   (XLV)  "PROJECT-WIDE  CERTIFIED PAYROLL REPORT" SHALL MEAN A CERTIFIED
 PAYROLL REPORT SUBMITTED BY THE INDEPENDENT MONITOR TO THE FISCAL  OFFI-

 S. 2009--C                         190                        A. 3009--C

 CER  BASED  ON EACH CONTRACTOR CERTIFIED PAYROLL REPORT WHICH SETS FORTH
 THE TOTAL NUMBER OF HOURS OF CONSTRUCTION WORK PERFORMED BY CONSTRUCTION
 WORKERS, THE AGGREGATE AMOUNT OF WAGES AND  EMPLOYEE  BENEFITS  PAID  TO
 CONSTRUCTION WORKERS FOR CONSTRUCTION WORK AND THE AVERAGE HOURLY WAGE.
   (XLVI)  "QUEENS  ENHANCED  AFFORDABILITY AREA" SHALL MEAN ANY TAX LOTS
 NOW EXISTING OR HEREAFTER CREATED  WHICH  ARE  LOCATED  ENTIRELY  WITHIN
 COMMUNITY  BOARDS  ONE  OR  TWO  OF  THE  BOROUGH  OF QUEENS BOUNDED AND
 DESCRIBED AS FOLLOWS: ALL THAT PIECE OR PARCEL OF LAND SITUATE AND BEING
 IN THE BOROUGHS OF QUEENS AND BROOKLYN, NEW YORK. BEGINNING AT THE POINT
 BEING THE INTERSECTION OF THE EASTERLY SHORE OF THE EAST  RIVER  WITH  A
 LINE  OF  PROLONGATION  OF  20TH  AVENUE PROJECTED NORTHWESTERLY; THENCE
 SOUTHEASTERLY ON THE LINE OF PROLONGATION OF 20TH AVENUE AND ALONG  20TH
 AVENUE  TO THE INTERSECTION WITH 31ST STREET; THENCE SOUTHWESTERLY ALONG
 31ST STREET TO THE INTERSECTION WITH NORTHERN BOULEVARD;  THENCE  SOUTH-
 WESTERLY ALONG NORTHERN BOULEVARD TO THE INTERSECTION WITH QUEENS BOULE-
 VARD  (AKA ROUTE 25); THENCE SOUTHEASTERLY ALONG QUEENS BOULEVARD TO THE
 INTERSECTION WITH VAN DAM STREET; THENCE SOUTHERLY ALONG VAN DAM  STREET
 TO  THE  INTERSECTION WITH BORDEN AVENUE; THENCE SOUTHWESTERLY ALONG VAN
 DAM STREET TO THE INTERSECTION WITH GREENPOINT AVENUE AND REVIEW AVENUE;
 THENCE SOUTHWESTERLY ALONG GREENPOINT AVENUE  TO  THE  POINT  OF  INTER-
 SECTION WITH THE CENTERLINE OF NEWTOWN CREEK, SAID CENTERLINE OF NEWTOWN
 CREEK  ALSO  BEING  THE  BOUNDARY BETWEEN QUEENS COUNTY TO THE NORTH AND
 KINGS COUNTY TO THE SOUTH; THENCE NORTHWESTERLY ALONG THE CENTERLINE  OF
 NEWTOWN  CREEK,  ALSO BEING THE BOUNDARY BETWEEN QUEENS COUNTY AND KINGS
 COUNTY TO ITS INTERSECTION WITH THE EASTERLY BOUNDS OF THE  EAST  RIVER;
 THENCE  IN A GENERAL NORTHEASTERLY DIRECTION ALONG THE EASTERLY BULKHEAD
 OR SHORELINE OF THE EAST RIVER TO THE POINT OR PLACE OF BEGINNING.
   (XLVII)  "Rent  stabilization"  shall  mean,  collectively,  the  rent
 stabilization law of nineteen hundred sixty-nine, the rent stabilization
 code,  and the emergency tenant protection act of nineteen seventy-four,
 all as in effect as of the effective date of the chapter of the laws  of
 two thousand fifteen that added this subdivision or as amended thereaft-
 er,  together  with  any  successor  statutes  or regulations addressing
 substantially the same subject matter.
   [(xxix)] (XLVIII) "Rental project" shall  mean  an  eligible  site  in
 which  all  dwelling  units  included in any application are operated as
 rental housing.
   [(xxx)] (XLIX) "Residential  tax  lot"  shall  mean  a  tax  lot  that
 contains dwelling units.
   [(xxxi)]  (L)  "Restriction  period" shall mean a period commencing on
 the completion date and expiring on the thirty-fifth anniversary of  the
 completion  date,  notwithstanding any earlier termination or revocation
 of [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits.
   [(xxxii)] (LI) "Tax exempt bond proceeds" shall mean the  proceeds  of
 an  exempt  facility bond, as defined in paragraph (7) of subsection (a)
 of section one hundred forty-two of the internal revenue code  of  nine-
 teen  hundred  eighty-six, as amended, the interest upon which is exempt
 from taxation under section one hundred three of  the  internal  revenue
 code of nineteen hundred eighty-six, as amended.
   (LII)  "THIRD  PARTY  FUND  ADMINISTRATOR" SHALL BE A PERSON OR ENTITY
 THAT RECEIVES FUNDS PURSUANT TO PARAGRAPH (C) OF  THIS  SUBDIVISION  AND
 OVERSEES  AND  MANAGES THE DISBURSAL OF SUCH FUNDS TO CONSTRUCTION WORK-
 ERS.  THE THIRD PARTY FUND ADMINISTRATOR SHALL BE  A  PERSON  OR  ENTITY
 APPROVED  BY  THE FISCAL OFFICER AND RECOMMENDED BY ONE, OR MORE, REPRE-
 SENTATIVE OR REPRESENTATIVES OF THE LARGEST TRADE ASSOCIATION  OF  RESI-
 DENTIAL  REAL ESTATE DEVELOPERS, EITHER FOR PROFIT OR NOT-FOR-PROFIT, IN

 S. 2009--C                         191                        A. 3009--C
 
 NEW YORK CITY AND ONE, OR MORE, REPRESENTATIVE OR REPRESENTATIVES OF THE
 LARGEST TRADE LABOR ASSOCIATION REPRESENTING BUILDING  AND  CONSTRUCTION
 WORKERS,  WITH MEMBERSHIP IN NEW YORK CITY.  THE THIRD PARTY FUND ADMIN-
 ISTRATOR  SHALL BE APPOINTED FOR A TERM OF THREE YEARS, PROVIDED, HOWEV-
 ER, THAT THE ADMINISTRATOR IN PLACE AT THE END  OF  A  THREE  YEAR  TERM
 SHALL  CONTINUE  TO SERVE BEYOND THE END OF THE TERM UNTIL A REPLACEMENT
 ADMINISTRATOR IS APPOINTED. THE FISCAL OFFICER  AFTER  PROVIDING  NOTICE
 AND  AFTER  MEETING  WITH THE THIRD PARTY FUND ADMINISTRATOR, MAY REMOVE
 SUCH ADMINISTRATOR FOR CAUSE UPON A FISCAL  OFFICER  DETERMINATION  THAT
 THE  ADMINISTRATOR  HAS  BEEN  INEFFECTIVE AT OVERSEEING OR MANAGING THE
 DISBURSAL OF FUNDS TO THE CONSTRUCTION WORKERS.  THE  THIRD  PARTY  FUND
 ADMINISTRATOR  SHALL,  AT  THE  REQUEST  OF  THE  FISCAL OFFICER, SUBMIT
 REPORTS TO THE FISCAL OFFICER.
   [(xxxiii)] (LIII) "Thirty-five year benefit" shall mean: (A)  for  the
 construction  period, a one hundred percent exemption from real property
 taxation, other than assessments for local  improvements;  (B)  for  the
 first twenty-five years of the restriction period, a one hundred percent
 exemption  from real property taxation, other than assessments for local
 improvements; and (C) for the final ten years of the restriction period,
 an exemption from real property taxation,  other  than  assessments  for
 local improvements, equal to the affordability percentage.
   [(xxxiv)]  (LIV)  "Twenty  year  benefit"  shall  mean:  (A)  for  the
 construction period, a one hundred percent exemption from real  property
 taxation,  other  than  assessments  for local improvements; (B) for the
 first fourteen years of the restriction period, a  one  hundred  percent
 exemption  from real property taxation, other than assessments for local
 improvements, provided, however, that no exemption shall  be  given  for
 any portion of a unit's assessed value that exceeds $65,000; and (C) for
 the  [final]  NEXT  six  years  of the restriction period, a twenty-five
 percent exemption from real property taxation,  other  than  assessments
 for  local  improvements,  provided, however, that no exemption shall be
 given for any portion of a unit's assessed value that exceeds $65,000.
   (LV) "WAGES" SHALL MEAN ALL COMPENSATION, REMUNERATION OR PAYMENTS  OF
 ANY  KIND  PAID  TO,  OR  ON BEHALF OF, CONSTRUCTION WORKERS, INCLUDING,
 WITHOUT  LIMITATION,  ANY  HOURLY  COMPENSATION  PAID  DIRECTLY  TO  THE
 CONSTRUCTION  WORKER,  TOGETHER  WITH EMPLOYEE BENEFITS, SUCH AS HEALTH,
 WELFARE,  NON-OCCUPATIONAL  DISABILITY  COVERAGE,  RETIREMENT,  VACATION
 BENEFITS,  HOLIDAY  PAY, LIFE INSURANCE AND APPRENTICESHIP TRAINING, AND
 PAYROLL TAXES, INCLUDING, TO THE EXTENT PERMISSIBLE BY LAW, ALL  AMOUNTS
 PAID FOR NEW YORK STATE UNEMPLOYMENT INSURANCE, NEW YORK STATE DISABILI-
 TY INSURANCE, METROPOLITAN COMMUTER TRANSPORTATION MOBILITY TAX, FEDERAL
 UNEMPLOYMENT  INSURANCE  AND  PURSUANT TO THE FEDERAL INSURANCE CONTRIB-
 UTIONS ACT OR ANY OTHER PAYROLL TAX THAT IS PAID BY THE EMPLOYER.
   (b) Benefit. In cities having a population of  one  million  or  more,
 notwithstanding  the provisions of any other subdivision of this section
 or of any general, special or local law to the  contrary,  new  eligible
 sites,  except  hotels, that comply with the provisions of this subdivi-
 sion shall be exempt from real property taxation, other than assessments
 for local improvements, in the amounts and for the periods specified  in
 this  paragraph.  A rental project that meets all of the requirements of
 this subdivision shall receive a thirty-five year benefit and a homeown-
 ership project that meets all of the requirements  of  this  subdivision
 shall  receive  a  twenty year benefit. A RENTAL PROJECT THAT ALSO MEETS
 ALL OF THE REQUIREMENTS OF  PARAGRAPH  (C)  OF  THIS  SUBDIVISION  SHALL
 RECEIVE AN ENHANCED THIRTY-FIVE YEAR BENEFIT.

 S. 2009--C                         192                        A. 3009--C
 
   (C)  IN  ADDITION TO ALL OTHER REQUIREMENTS SET FORTH IN THIS SUBDIVI-
 SION, RENTAL PROJECTS CONTAINING THREE HUNDRED OR MORE  RENTAL  DWELLING
 UNITS  LOCATED  WITHIN THE ENHANCED AFFORDABILITY AREA SHALL COMPLY WITH
 THE REQUIREMENTS SET FORTH IN THIS PARAGRAPH. FOR PURPOSES OF THIS PARA-
 GRAPH, "CONTRACTOR" SHALL MEAN ANY ENTITY WHICH BY AGREEMENT WITH ANOTH-
 ER  PARTY  (INCLUDING SUBCONTRACTORS) UNDERTAKES TO PERFORM CONSTRUCTION
 WORK AT AN ELIGIBLE SITE AND "APPLICANT" SHALL  MEAN  AN  APPLICANT  FOR
 AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS AND ANY SUCCESSOR THERETO.
   (I)  SUCH RENTAL PROJECT SHALL COMPLY WITH EITHER AFFORDABILITY OPTION
 E, AFFORDABILITY OPTION F OR AFFORDABILITY OPTION G.
   (II) THE MINIMUM AVERAGE HOURLY WAGE PAID TO CONSTRUCTION  WORKERS  ON
 AN  ELIGIBLE SITE WITHIN THE MANHATTAN ENHANCED AFFORDABILITY AREA SHALL
 BE NO LESS THAN SIXTY DOLLARS PER HOUR.  THREE YEARS FROM THE  EFFECTIVE
 DATE  OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED
 THIS PARAGRAPH AND EVERY THREE YEARS  THEREAFTER,  THE  MINIMUM  AVERAGE
 HOURLY  WAGE SHALL BE INCREASED BY FIVE PERCENT; PROVIDED, HOWEVER, THAT
 ANY BUILDING WITH A COMMENCEMENT DATE PRIOR TO THE DATE OF SUCH INCREASE
 SHALL BE REQUIRED TO PAY THE MINIMUM AVERAGE HOURLY WAGE AS REQUIRED  ON
 ITS COMMENCEMENT DATE.
   (III)  THE MINIMUM AVERAGE HOURLY WAGE PAID TO CONSTRUCTION WORKERS ON
 AN ELIGIBLE SITE WITHIN THE BROOKLYN ENHANCED AFFORDABILITY AREA OR  THE
 QUEENS  ENHANCED  AFFORDABILITY  AREA  SHALL  BE NO LESS THAN FORTY-FIVE
 DOLLARS PER HOUR.  THREE YEARS FROM THE EFFECTIVE DATE OF THE CHAPTER OF
 THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS PARAGRAPH  AND  EVERY
 THREE  YEARS  THEREAFTER,  THE  MINIMUM  AVERAGE  HOURLY  WAGE  SHALL BE
 INCREASED BY FIVE PERCENT; PROVIDED, HOWEVER, THAT ANY BUILDING  WITH  A
 COMMENCEMENT  DATE  PRIOR TO THE DATE OF SUCH INCREASE SHALL BE REQUIRED
 TO PAY THE MINIMUM AVERAGE HOURLY WAGE AS REQUIRED ON  ITS  COMMENCEMENT
 DATE.
   (IV)  THE  REQUIREMENTS  OF SUBPARAGRAPHS (II) AND (III) OF THIS PARA-
 GRAPH SHALL NOT BE APPLICABLE TO:
   (A) AN ELIGIBLE MULTIPLE DWELLING IN WHICH AT LEAST FIFTY  PERCENT  OF
 THE  DWELLING  UNITS UPON INITIAL RENTAL AND UPON EACH SUBSEQUENT RENTAL
 FOLLOWING A VACANCY DURING THE EXTENDED RESTRICTION PERIOD, ARE AFFORDA-
 BLE TO AND RESTRICTED TO OCCUPANCY  BY  INDIVIDUALS  OR  FAMILIES  WHOSE
 HOUSEHOLD  INCOME DOES NOT EXCEED ONE HUNDRED TWENTY-FIVE PERCENT OF THE
 AREA MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE,  AT  THE  TIME  THAT  SUCH
 HOUSEHOLD INITIALLY OCCUPIES SUCH DWELLING UNIT;
   (B)  ANY  PORTION  OF AN ELIGIBLE MULTIPLE DWELLING WHICH IS OWNED AND
 OPERATED AS A CONDOMINIUM OR COOPERATIVE; OR
   (C) AT THE OPTION OF THE APPLICANT, TO AN ELIGIBLE SITE SUBJECT  TO  A
 PROJECT LABOR AGREEMENT.
   (V)  THE  APPLICANT  SHALL  CONTRACT WITH AN INDEPENDENT MONITOR. SUCH
 INDEPENDENT MONITOR SHALL SUBMIT TO THE FISCAL OFFICER WITHIN  ONE  YEAR
 OF  THE  COMPLETION DATE A PROJECT-WIDE CERTIFIED PAYROLL REPORT. IN THE
 EVENT SUCH PROJECT-WIDE CERTIFIED PAYROLL REPORT IS NOT SUBMITTED TO THE
 FISCAL OFFICER WITHIN THE REQUISITE TIME, THE APPLICANT SHALL BE SUBJECT
 TO A FINE OF ONE THOUSAND DOLLARS PER  WEEK,  OR  ANY  PORTION  THEREOF;
 PROVIDED  THAT  THE MAXIMUM FINE SHALL BE SEVENTY-FIVE THOUSAND DOLLARS.
 IN THE EVENT THAT THE AVERAGE HOURLY WAGE IS LESS THAN THE MINIMUM AVER-
 AGE HOURLY WAGE SET FORTH IN SUBPARAGRAPH (II) OR (III)  OF  THIS  PARA-
 GRAPH  AS  APPLICABLE,  THE  PROJECT-WIDE CERTIFIED PAYROLL REPORT SHALL
 ALSO SET FORTH THE AGGREGATE AMOUNT OF SUCH DEFICIENCY.
   (VI) THE CONTRACTOR CERTIFIED PAYROLL REPORT  SHALL  BE  SUBMITTED  BY
 EACH  CONTRACTOR  AND SUB-CONTRACTOR NO LATER THAN NINETY DAYS AFTER THE
 COMPLETION OF CONSTRUCTION WORK BY SUCH CONTRACTOR OR SUB-CONTRACTOR. IN

 S. 2009--C                         193                        A. 3009--C
 
 THE EVENT THAT A CONTRACTOR OR SUB-CONTRACTOR FAILS OR REFUSES TO SUBMIT
 THE CONTRACTOR CERTIFIED PAYROLL REPORT WITHIN THE  TIME  PRESCRIBED  IN
 THIS SUBPARAGRAPH, THE INDEPENDENT MONITOR SHALL NOTIFY THE FISCAL OFFI-
 CER  AND  THE FISCAL OFFICER SHALL BE AUTHORIZED TO FINE SUCH CONTRACTOR
 OR SUB-CONTRACTOR IN THE AMOUNT OF ONE THOUSAND DOLLARS PER WEEK, OR ANY
 PORTION THEREOF, PROVIDED THAT THE MAXIMUM FINE  SHALL  BE  SEVENTY-FIVE
 THOUSAND DOLLARS.
   (VII)  IN  THE  EVENT  THAT  THE PROJECT-WIDE CERTIFIED PAYROLL REPORT
 SHOWS THAT THE AVERAGE HOURLY WAGE AS REQUIRED BY SUBPARAGRAPH  (II)  OR
 (III) OF THIS PARAGRAPH, AS APPLICABLE, WAS NOT PAID, (A) IF THE AVERAGE
 HOURLY  WAGE  IS  WITHIN  FIFTEEN  PERCENT  OF  THE  AVERAGE HOURLY WAGE
 REQUIRED BY SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH,  AS  APPLICABLE,
 THEN  NO  LATER THAN ONE HUNDRED TWENTY DAYS FROM THE DATE OF SUBMISSION
 OF SUCH PROJECT-WIDE CERTIFIED PAYROLL REPORT, THE APPLICANT  SHALL  PAY
 TO  THE  THIRD PARTY FUND ADMINISTRATOR AN AMOUNT EQUAL TO THE AMOUNT OF
 THE DEFICIENCY SET FORTH IN THE PROJECT-WIDE CERTIFIED  PAYROLL  REPORT.
 THE  THIRD PARTY FUND ADMINISTRATOR SHALL DISTRIBUTE SUCH PAYMENT TO THE
 CONSTRUCTION WORKERS WHO PERFORMED CONSTRUCTION WORK  ON  SUCH  ELIGIBLE
 SITE. PRIOR TO MAKING SUCH REPAYMENT, THE THIRD PARTY FUND ADMINISTRATOR
 SHALL  SUBMIT  TO  THE FISCAL OFFICER A PLAN SUBJECT TO THE FISCAL OFFI-
 CER'S APPROVAL SETTING FORTH THE MANNER IN WHICH THE  THIRD  PARTY  FUND
 ADMINISTRATOR  WILL  REACH  THE REQUIRED AVERAGE WAGE WITHIN ONE HUNDRED
 FIFTY DAYS OF RECEIVING THE PAYMENT  FROM  THE  APPLICANT  AND  HOW  ANY
 REMAINING FUNDS WILL BE DISBURSED IN THE EVENT THAT THE THIRD PARTY FUND
 ADMINISTRATOR  CANNOT  DISTRIBUTE  THE FUNDS TO THE CONSTRUCTION WORKERS
 WITHIN ONE YEAR OF RECEIVING FISCAL OFFICER APPROVAL.  IN THE EVENT THAT
 THE APPLICANT  FAILS  TO  MAKE  SUCH  PAYMENT  WITHIN  THE  TIME  PERIOD
 PRESCRIBED  IN  THIS  SUBPARAGRAPH,  THE APPLICANT SHALL BE SUBJECT TO A
 FINE OF ONE THOUSAND DOLLARS PER WEEK PROVIDED  THAT  THE  MAXIMUM  FINE
 SHALL  BE  SEVENTY-FIVE  THOUSAND  DOLLARS; OR (B) IF THE AVERAGE HOURLY
 WAGE IS MORE THAN FIFTEEN PERCENT BELOW THE MINIMUM AVERAGE HOURLY  WAGE
 REQUIRED  BY  SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH, AS APPLICABLE,
 THEN NO LATER THAN ONE HUNDRED TWENTY DAYS FROM THE DATE  OF  SUBMISSION
 OF  SUCH  PROJECT-WIDE CERTIFIED PAYROLL REPORT, THE APPLICANT SHALL PAY
 TO THE THIRD PARTY FUND ADMINISTRATOR AN AMOUNT EQUAL TO THE  AMOUNT  OF
 THE  DEFICIENCY  SET FORTH IN THE PROJECT-WIDE PAYROLL REPORT. THE THIRD
 PARTY  FUND  ADMINISTRATOR  SHALL  DISTRIBUTE  SUCH   PAYMENT   TO   THE
 CONSTRUCTION  WORKERS  WHO  PERFORMED CONSTRUCTION WORK ON SUCH ELIGIBLE
 SITE. PRIOR TO MAKING SUCH REPAYMENT, THE THIRD PARTY FUND ADMINISTRATOR
 SHALL SUBMIT TO THE FISCAL OFFICER A PLAN SUBJECT TO  THE  FISCAL  OFFI-
 CER'S  APPROVAL  SETTING  FORTH THE MANNER IN WHICH THE THIRD PARTY FUND
 ADMINISTRATOR WILL REACH THE REQUIRED AVERAGE WAGE  WITHIN  ONE  HUNDRED
 FIFTY  DAYS  OF  RECEIVING  THE  PAYMENT  FROM THE APPLICANT AND HOW ANY
 REMAINING FUNDS WILL BE DISBURSED IN THE EVENT THAT THE THIRD PARTY FUND
 ADMINISTRATOR CANNOT DISTRIBUTE THE FUNDS TO  THE  CONSTRUCTION  WORKERS
 WITHIN  ONE YEAR OF RECEIVING FISCAL OFFICER APPROVAL.  IN ADDITION, THE
 FISCAL OFFICER SHALL IMPOSE A PENALTY ON  THE  APPLICANT  IN  AN  AMOUNT
 EQUAL  TO TWENTY-FIVE PERCENT OF THE AMOUNT OF THE DEFICIENCY, PROVIDED,
 HOWEVER, THAT THE FISCAL OFFICER SHALL NOT IMPOSE SUCH PENALTY WHERE THE
 ELIGIBLE MULTIPLE DWELLING HAS BEEN THE SUBJECT OF A  JOB  ACTION  WHICH
 RESULTS  IN  A WORK DELAY. IN THE EVENT THAT THE APPLICANT FAILS TO MAKE
 SUCH PAYMENT WITHIN THE TIME PERIOD PRESCRIBED IN THIS SUBPARAGRAPH, THE
 APPLICANT SHALL BE SUBJECT TO A FINE OF ONE THOUSAND DOLLARS  PER  WEEK,
 PROVIDED  THAT  THE MAXIMUM FINE SHALL BE SEVENTY-FIVE THOUSAND DOLLARS.
 NOTWITHSTANDING ANY PROVISION OF THIS PARAGRAPH, THE APPLICANT SHALL NOT
 BE LIABLE IN ANY RESPECT WHATSOEVER FOR ANY PAYMENTS, FINES OR PENALTIES

 S. 2009--C                         194                        A. 3009--C
 
 RELATED TO OR RESULTING FROM CONTRACTOR FRAUD, MISTAKE, OR NEGLIGENCE OR
 FOR FRAUDULENT OR INACCURATE CONTRACTOR CERTIFIED PAYROLL REPORTS OR FOR
 FRAUDULENT  OR  INACCURATE  PROJECT-WIDE  CERTIFIED   PAYROLL   REPORTS,
 PROVIDED, HOWEVER, THAT PAYMENT TO THE THIRD PARTY FUND ADMINISTRATOR IN
 THE  AMOUNT  SET  FORTH  IN THE PROJECT-WIDE CERTIFIED PAYROLL REPORT AS
 DESCRIBED IN THIS SUBPARAGRAPH SHALL STILL BE MADE BY THE CONTRACTOR  OR
 SUB-CONTRACTOR  IN THE EVENT OF UNDERPAYMENT RESULTING FROM OR CAUSED BY
 THE CONTRACTOR OR SUB-CONTRACTOR, AND THAT THE APPLICANT WILL BE  LIABLE
 FOR UNDERPAYMENT TO THE THIRD PARTY FUND ADMINISTRATOR UNLESS THE FISCAL
 OFFICER  DETERMINES,  IN  ITS SOLE DISCRETION, THAT THE UNDERPAYMENT WAS
 THE RESULT OF, OR CAUSED BY, CONTRACTOR  FRAUD,  MISTAKE  OR  NEGLIGENCE
 AND/OR FOR FRAUDULENT OR INACCURATE CONTRACTOR CERTIFIED PAYROLL REPORTS
 AND/OR  PROJECT-WIDE  CERTIFIED  PAYROLL  REPORTS.  THE  APPLICANT SHALL
 OTHERWISE NOT BE LIABLE IN ANY WAY WHATSOEVER ONCE THE  PAYMENT  TO  THE
 THIRD  PARTY FUND ADMINISTRATOR HAS BEEN MADE IN THE AMOUNT SET FORTH IN
 THE PROJECT-WIDE CERTIFIED PAYROLL REPORT. OTHER THAN THE  UNDERPAYMENT,
 WHICH  MUST BE PAID TO THE THIRD PARTY FUND ADMINISTRATOR, ALL FINES AND
 PENALTIES SET FORTH IN THIS PARAGRAPH  IMPOSED  BY  THE  FISCAL  OFFICER
 SHALL BE PAID TO THE AGENCY AND USED BY THE AGENCY TO PROVIDE AFFORDABLE
 HOUSING.
   (VIII)  NOTHING  IN  THIS  PARAGRAPH  SHALL  BE  CONSTRUED TO CONFER A
 PRIVATE RIGHT OF ACTION TO ENFORCE THE  PROVISIONS  OF  THIS  PARAGRAPH,
 PROVIDED, HOWEVER, THAT THIS SENTENCE SHALL NOT BE CONSTRUED AS A WAIVER
 OF  ANY EXISTING RIGHTS OF CONSTRUCTION WORKERS OR THEIR REPRESENTATIVES
 RELATED TO WAGE AND  BENEFIT  COLLECTION,  WAGE  THEFT  OR  OTHER  LABOR
 PROTECTIONS  OR RIGHTS AND PROVIDED, FURTHER, THAT NOTHING IN THIS PARA-
 GRAPH RELIEVES ANY  OBLIGATIONS  PURSUANT  TO  A  COLLECTIVE  BARGAINING
 AGREEMENT.
   (IX)  A  RENTAL  PROJECT  CONTAINING THREE HUNDRED OR MORE RESIDENTIAL
 DWELLING UNITS NOT LOCATED WITHIN THE ENHANCED  AFFORDABILITY  AREA  MAY
 ELECT  TO COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH AND BE ELIGIBLE
 TO RECEIVE AN ENHANCED THIRTY-FIVE YEAR BENEFIT.  SUCH ELECTION SHALL BE
 MADE IN THE APPLICATION AND SHALL NOT THEREAFTER BE CHANGED. SUCH RENTAL
 PROJECT SHALL COMPLY WITH ALL OF THE REQUIREMENTS OF THIS PARAGRAPH  AND
 SHALL BE DEEMED TO BE LOCATED WITHIN THE BROOKLYN ENHANCED AFFORDABILITY
 AREA  OR THE QUEENS ENHANCED AFFORDABILITY AREA FOR THE PURPOSES OF THIS
 PARAGRAPH.
   (X) THE FISCAL OFFICER SHALL HAVE THE SOLE AUTHORITY TO DETERMINE  AND
 ENFORCE  ANY  LIABILITY  FOR  UNDERPAYMENT OWING TO THE THIRD PARTY FUND
 ADMINISTRATOR FROM THE APPLICANT AND/OR THE CONTRACTOR (AS A  RESULT  OF
 CONTRACTOR FRAUD, MISTAKE OR NEGLIGENCE AND/OR FOR FRAUDULENT OR INACCU-
 RATE  CONTRACTOR CERTIFIED PAYROLL REPORTS AND/OR PROJECT-WIDE CERTIFIED
 PAYROLL REPORTS), AS SET FORTH IN SUBPARAGRAPH (VII) OF THIS  PARAGRAPH.
 THE  FISCAL  OFFICER  SHALL  EXPEDITIOUSLY  CONDUCT AN INVESTIGATION AND
 HEARING AT THE NEW YORK CITY OFFICE OF ADMINISTRATIVE TRIALS  AND  HEAR-
 INGS,  SHALL DETERMINE THE ISSUES RAISED THEREON AND SHALL MAKE AND FILE
 AN ORDER IN HIS OR HER OFFICE STATING SUCH DETERMINATION  AND  FORTHWITH
 SERVE  A COPY OF SUCH ORDER, EITHER PERSONALLY OR BY MAIL, TOGETHER WITH
 NOTICE OF FILING, UPON THE PARTIES TO  SUCH  PROCEEDINGS.    THE  FISCAL
 OFFICER IN SUCH AN INVESTIGATION SHALL BE DEEMED TO BE ACTING IN A JUDI-
 CIAL  CAPACITY  AND SHALL HAVE THE RIGHTS TO ISSUE SUBPOENAS, ADMINISTER
 OATHS AND EXAMINE WITNESSES. THE ENFORCEMENT OF A SUBPOENA ISSUED  UNDER
 THIS  SUBPARAGRAPH  SHALL  BE  REGULATED  BY  THE CIVIL PRACTICE LAW AND
 RULES. THE FILING OF SUCH ORDER SHALL HAVE THE FULL FORCE AND EFFECT  OF
 A  JUDGMENT  DULY DOCKETED IN THE OFFICE OF THE COUNTY CLERK.  THE ORDER
 MAY BE ENFORCED BY AND IN THE NAME OF THE FISCAL  OFFICER  IN  THE  SAME

 S. 2009--C                         195                        A. 3009--C

 MANNER,  AND  WITH LIKE EFFECT, AS THAT PRESCRIBED BY THE CIVIL PRACTICE
 LAW AND RULES FOR THE ENFORCEMENT OF A MONEY JUDGMENT.
   [(c)]  (D)  Tax  payments.  In  addition  to any other amounts payable
 pursuant to this subdivision, the owner of any eligible  site  receiving
 [421-a]  AFFORDABLE NEW YORK HOUSING PROGRAM benefits shall pay, in each
 tax year in which such [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM bene-
 fits are in effect, real property taxes and assessments as follows:
   (i) with respect to each eligible  multiple  dwelling  constructed  on
 such  eligible  site,  real  property taxes on the assessed valuation of
 such land and any improvements thereon in effect  during  the  tax  year
 prior to the commencement date of such eligible multiple dwelling, with-
 out  regard to any exemption from or abatement of real property taxation
 in effect during such tax year,  which  real  property  taxes  shall  be
 calculated  using the tax rate in effect at the time such taxes are due;
 and
   (ii) all assessments for local improvements.
   [(d)] (E) Limitation on benefits for  non-residential  space.  If  the
 aggregate floor area of commercial, community facility and accessory use
 space  in an eligible site, other than parking which is located not more
 than twenty-three feet above the curb level, exceeds twelve  percent  of
 the  aggregate  floor area in such eligible site, any [421-a] AFFORDABLE
 NEW YORK HOUSING PROGRAM benefits shall be reduced by a percentage equal
 to such excess. If an eligible site contains multiple tax lots, the  tax
 arising  out  of  such  reduction in [421-a] AFFORDABLE NEW YORK HOUSING
 PROGRAM benefits shall first be apportioned pro rata among any non-resi-
 dential tax lots. After any such  non-residential  tax  lots  are  fully
 taxable,  the  remainder  of  the  tax  arising out of such reduction in
 [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits, if any,  shall  be
 apportioned pro rata among the remaining residential tax lots.
   [(e)]  (F)  Calculation  of benefit. Based on the certification of the
 agency certifying the applicant's eligibility for [421-a] AFFORDABLE NEW
 YORK HOUSING PROGRAM  benefits,  the  assessors  shall  certify  to  the
 collecting officer the amount of taxes to be exempted.
   [(f)] (G) Affordability requirements. During the restriction period, a
 rental project shall comply with either affordability option A, afforda-
 bility option B, or affordability option C or for purposes of a homeown-
 ership  project,  such project shall comply with affordability option D.
 Such election shall be made in the application and shall not  thereafter
 be  changed. The rental project shall also comply with all provisions of
 this paragraph during the restriction period and with subparagraph (iii)
 of this paragraph both during and after the restriction  period  to  the
 extent provided in such subparagraph.  A RENTAL PROJECT CONTAINING THREE
 HUNDRED  OR  MORE RENTAL DWELLING UNITS LOCATED IN THE ENHANCED AFFORDA-
 BILITY AREA OR A RENTAL PROJECT CONTAINING THREE HUNDRED OR MORE  RENTAL
 DWELLING  UNITS NOT LOCATED WITHIN THE ENHANCED AFFORDABILITY AREA WHICH
 ELECTS TO COMPLY WITH THE REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVI-
 SION SHALL COMPLY WITH  EITHER  AFFORDABILITY  OPTION  E,  AFFORDABILITY
 OPTION  F, OR AFFORDABILITY OPTION G. SUCH ELECTION SHALL BE MADE IN THE
 APPLICATION AND SHALL NOT THEREAFTER BE  CHANGED.  SUCH  RENTAL  PROJECT
 SHALL  ALSO  COMPLY  WITH  ALL  PROVISIONS  OF THIS PARAGRAPH DURING THE
 EXTENDED RESTRICTION PERIOD AND WITH SUBPARAGRAPH (III)  OF  THIS  PARA-
 GRAPH  BOTH  DURING  AND  AFTER  THE  EXTENDED RESTRICTION PERIOD TO THE
 EXTENT PROVIDED IN SUCH PARAGRAPH.
   (i) [Affordable units] ALL RENTAL DWELLING UNITS IN AN ELIGIBLE MULTI-
 PLE DWELLING shall share the same common entrances and common  areas  as
 market  rate  units IN SUCH ELIGIBLE MULTIPLE DWELLING, and shall not be

 S. 2009--C                         196                        A. 3009--C
 
 isolated to a specific floor or area of [a building] AN ELIGIBLE  MULTI-
 PLE  DWELLING.    Common entrances shall mean any area regularly used by
 any resident OF A RENTAL DWELLING UNIT IN THE ELIGIBLE MULTIPLE DWELLING
 for ingress and egress from [a] SUCH ELIGIBLE multiple dwelling; and
   (ii) Unless preempted by the requirements of a federal, state or local
 housing  program, either (A) the affordable housing units in an eligible
 site shall have a unit mix proportional to the market units, or  (B)  at
 least  fifty percent of the affordable housing units in an eligible site
 shall have two or more bedrooms and no more than twenty-five percent  of
 the affordable housing units shall have less than one bedroom.
   (iii)  Notwithstanding  any  provision  of  rent  stabilization to the
 contrary, all affordable housing units shall be fully  subject  to  rent
 stabilization  during  the  restriction  period  OR EXTENDED RESTRICTION
 PERIOD, AS APPLICABLE, provided that tenants  holding  a  lease  and  in
 occupancy  of  such  affordable  housing  units at the expiration of the
 restriction period OR EXTENDED RESTRICTION PERIOD, AS APPLICABLE,  shall
 have  the right to remain as rent stabilized tenants for the duration of
 their occupancy.
   (iv) All rent stabilization registrations required to be filed  pursu-
 ant  to subparagraph (iii) of this paragraph shall contain a designation
 that specifically identifies affordable housing units  created  pursuant
 to  this  subdivision  as  "[421-a]  AFFORDABLE NEW YORK HOUSING PROGRAM
 affordable housing units"  and  shall  contain  an  explanation  of  the
 requirements that apply to all such affordable housing units.
   (v)  Failure  to  comply  with  the  provisions of this paragraph that
 require the creation, maintenance,  rent  stabilization  compliance  and
 occupancy of affordable housing units or for purposes of a homeownership
 project  the  failure to comply with affordability option D shall result
 in revocation of any [421-a] AFFORDABLE NEW YORK HOUSING  PROGRAM  bene-
 fits for the period of such non-compliance.
   (vi)  Nothing  in this subdivision shall (A) prohibit the occupancy of
 an affordable housing unit by individuals or families  whose  income  at
 any  time is less than the maximum percentage of the area median income,
 adjusted for family size, specified for  such  affordable  housing  unit
 pursuant  to  this subdivision, or (B) prohibit the owner of an eligible
 site from requiring, upon initial rental or upon any rental following  a
 vacancy,  the  occupancy  of  any  affordable housing unit by such lower
 income individuals or families.
   (vii) Following issuance of a temporary certificate of  occupancy  and
 upon  each vacancy thereafter, an affordable housing unit shall promptly
 be offered for rental by individuals or families whose income  does  not
 exceed  the  maximum  percentage of the area median income, adjusted for
 family size, specified for such affordable housing unit pursuant to this
 subdivision and who intend to occupy such  affordable  housing  unit  as
 their  primary  residence.  An  affordable housing unit shall not be (A)
 rented to a corporation, partnership or other entity, or  (B)  held  off
 the  market  for a period longer than is reasonably necessary to perform
 repairs needed to make such affordable housing unit available for  occu-
 pancy.
   (viii)  An affordable housing unit shall not be rented on a temporary,
 transient or short-term basis. Every lease and renewal  thereof  for  an
 affordable  housing unit shall be for a term of one or two years, at the
 option of the tenant.
   (ix) An affordable housing unit shall not be converted to  cooperative
 or condominium ownership.

 S. 2009--C                         197                        A. 3009--C

   (x)  The  agency may establish by rule such requirements as the agency
 deems necessary or appropriate for (A) the marketing of affordable hous-
 ing units, both upon initial occupancy and upon any vacancy,  (B)  moni-
 toring  compliance  with  the  provisions  of this paragraph and (C) the
 marketing and monitoring of any homeownership project that is granted an
 exemption  pursuant  to this subdivision. Such requirements may include,
 but need not be limited to, retaining a monitor approved by  the  agency
 and paid for by the owner.
   (xi)  Notwithstanding any provision of this subdivision to the contra-
 ry, a market unit shall be subject to rent stabilization unless, in  the
 absence  of  [421-a]  AFFORDABLE  NEW YORK HOUSING PROGRAM benefits, the
 owner would be entitled to remove such market unit from rent  stabiliza-
 tion  upon  vacancy  by  reason  of the monthly rent exceeding any limit
 established thereunder.
   [(g)] (H) Building service employees. (i) For  the  purposes  of  this
 paragraph,  "applicant"  shall  mean an applicant for [421-a] AFFORDABLE
 NEW YORK HOUSING PROGRAM benefits, any successor to such  applicant,  or
 any  employer  of building service employees for such applicant, includ-
 ing, but not limited to, a property management company or contractor.
   (ii) All building service employees employed by the applicant  at  the
 eligible  site  shall  receive  the  applicable  prevailing wage for the
 entire restriction period OR EXTENDED RESTRICTION PERIOD, AS APPLICABLE.
   (iii)  The  fiscal  officer  shall  have  the  power  to  enforce  the
 provisions  of  this paragraph. In enforcing such provisions, the fiscal
 officer shall have the power:
   (A) to investigate or cause an investigation to be made  to  determine
 the  prevailing  wages  for  building  service employees; in making such
 investigation, the fiscal officer may utilize wage  and  fringe  benefit
 data  from  various  sources,  including,  but  not limited to, data and
 determinations of federal, state or other governmental agencies;
   (B) to institute and conduct inspections at the site of  the  work  or
 elsewhere;
   (C)  to  examine  the  books,  documents and records pertaining to the
 wages paid to, and the hours of  work  performed  by,  building  service
 employees;
   (D) to hold hearings and, in connection therewith, to issue subpoenas,
 administer  oaths  and  examine witnesses; the enforcement of a subpoena
 issued under this paragraph shall be regulated by the civil practice law
 and rules;
   (E) to make a classification by craft, trade or other generally recog-
 nized occupational category of the building  service  employees  and  to
 determine  whether  such work has been performed by the building service
 employees in such classification;
   (F) to require the applicant to file with the fiscal officer a  record
 of  the  wages  actually  paid by such applicant to the building service
 employees and of their hours of work;
   (G) to delegate any of the foregoing powers to his or  her  deputy  or
 other authorized representative; and
   (H)  to promulgate rules as he or she shall consider necessary for the
 proper execution of the duties, responsibilities  and  powers  conferred
 upon him or her by the provisions of this subparagraph.
   (iv)  If  the  fiscal  officer  finds that the applicant has failed to
 comply with the provisions of this paragraph, he or  she  shall  present
 evidence of such noncompliance to the agency.
   (v) Subparagraph (ii) of this paragraph shall not be applicable to:

 S. 2009--C                         198                        A. 3009--C
 
   (A) an eligible multiple dwelling containing less than thirty dwelling
 units; or
   (B)  an  eligible multiple dwelling in which all of the dwelling units
 are affordable housing units and not less than  fifty  percent  of  such
 affordable  housing  units, upon initial rental and upon each subsequent
 rental following a vacancy during the  restriction  period  OR  EXTENDED
 RESTRICTION  PERIOD,  AS APPLICABLE, are affordable to and restricted to
 occupancy by individuals or families whose  household  income  does  not
 exceed  one  hundred  twenty-five  percent  of  the  area median income,
 adjusted for family size, at the  time  that  such  household  initially
 occupies such dwelling unit.
   [(h)]  (I) Replacement ratio. If the land on which an eligible site is
 located contained any dwelling units three years prior to the  commence-
 ment  date  of  the  first eligible multiple dwelling thereon, then such
 eligible site shall contain at least one  affordable  housing  unit  for
 each  dwelling  unit that existed on such date and was thereafter demol-
 ished, removed or reconfigured.
   [(i)] (J) Concurrent exemptions or abatements.  An  eligible  multiple
 dwelling  receiving [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits
 shall not receive any exemption from or abatement of real property taxa-
 tion under any other law.
   [(j)] (K) Voluntary renunciation or termination.  Notwithstanding  the
 provisions  of  any  general,  special  or local law to the contrary, an
 owner shall not be entitled to voluntarily  renounce  or  terminate  any
 [421-a]  AFFORDABLE  NEW YORK HOUSING PROGRAM benefits unless the agency
 authorizes such renunciation  or  termination  in  connection  with  the
 commencement of a new tax exemption pursuant to either the private hous-
 ing finance law or section four hundred twenty-c of this title.
   [(k)]  (L)  Termination  or  revocation.  The  agency may terminate or
 revoke [421-a] AFFORDABLE NEW YORK HOUSING PROGRAM benefits for  noncom-
 pliance  with this subdivision, PROVIDED, HOWEVER, THAT THE AGENCY SHALL
 NOT TERMINATE OR REVOKE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS FOR
 A FAILURE TO COMPLY WITH PARAGRAPH (C) OF THIS SUBDIVISION.  If  [421-a]
 AFFORDABLE  NEW  YORK HOUSING PROGRAM benefits are terminated or revoked
 for noncompliance with this subdivision, [all of the affordable  housing
 units  shall remain subject to rent stabilization or for a homeownership
 project such project shall continue to comply with affordability  option
 D of this subdivision and all other requirements of this subdivision for
 the  restriction  period and any additional period expressly provided in
 this subdivision, as if the 421-a benefits had not  been  terminated  or
 revoked] (I) ALL OF THE AFFORDABLE HOUSING UNITS SHALL REMAIN SUBJECT TO
 RENT  STABILIZATION  AND  ALL OTHER REQUIREMENTS OF THIS SUBDIVISION FOR
 THE RESTRICTION PERIOD OR EXTENDED RESTRICTION  PERIOD,  AS  APPLICABLE,
 AND  ANY ADDITIONAL PERIOD EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS IF
 THE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS HAD NOT BEEN TERMINATED
 OR REVOKED; (II) ALL OF THE  MARKET  RATE  HOUSING  UNITS  SHALL  REMAIN
 SUBJECT  TO RENT STABILIZATION AND ALL OTHER REQUIREMENTS OF THIS SUBDI-
 VISION FOR THE RESTRICTION PERIOD OR  EXTENDED  RESTRICTION  PERIOD,  AS
 APPLICABLE,  AND ANY ADDITIONAL PERIOD EXPRESSLY PROVIDED IN THIS SUBDI-
 VISION, AS IF THE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS  HAD  NOT
 BEEN  TERMINATED  OR  REVOKED,  PROVIDED,  HOWEVER, THAT THE OWNER SHALL
 STILL BE ENTITLED TO REMOVE SUCH MARKET  UNIT  FROM  RENT  STABILIZATION
 UPON  VACANCY  BY  REASON OF THE MONTHLY RENT EXCEEDING ANY LIMIT ESTAB-
 LISHED THEREUNDER; (III) OR FOR A  HOMEOWNERSHIP  PROJECT  SUCH  PROJECT
 SHALL CONTINUE TO COMPLY WITH AFFORDABILITY OPTION D OF THIS SUBDIVISION
 AND ALL OTHER REQUIREMENTS OF THIS SUBDIVISION FOR THE RESTRICTION PERI-

 S. 2009--C                         199                        A. 3009--C
 
 OD  AND ANY ADDITIONAL PERIOD EXPRESSLY PROVIDED IN THIS SUBDIVISION, AS
 IF THE AFFORDABLE NEW YORK HOUSING PROGRAM BENEFITS HAD NOT BEEN  TERMI-
 NATED OR REVOKED.
   [(l)] (M) Powers cumulative. The enforcement provisions of this subdi-
 vision  shall not be exclusive, and are in addition to any other rights,
 remedies, or enforcement powers set forth in any other law or  available
 at law or in equity.
   [(m)] (N) Multiple tax lots. If an eligible site contains multiple tax
 lots,  an  application  may  be submitted with respect to one or more of
 such tax lots.  The  agency  shall  determine  eligibility  for  [421-a]
 AFFORDABLE  NEW  YORK  HOUSING  PROGRAM benefits based upon the tax lots
 included in such application AND BENEFITS  FOR  EACH  MULTIPLE  DWELLING
 SHALL BE BASED UPON THE COMPLETION DATE OF SUCH MULTIPLE DWELLING.
   [(n)] (O) Applications. (i) The application with respect to any eligi-
 ble  multiple dwelling shall be filed with the agency not later than one
 year after the completion date of such eligible multiple dwelling.
   (ii) Notwithstanding the provisions of any general, special  or  local
 law to the contrary, the agency may require by rule that applications be
 filed electronically.
   (iii) The agency may rely on certification by an architect or engineer
 submitted  by  an applicant in connection with the filing of an applica-
 tion. A false certification by  such  architect  or  engineer  shall  be
 deemed  to  be  professional  misconduct  pursuant to section sixty-five
 hundred nine of the education law. Any licensee  found  guilty  of  such
 misconduct under the procedures prescribed in section sixty-five hundred
 ten of the education law shall be subject to the penalties prescribed in
 section sixty-five hundred eleven of the education law, and shall there-
 after  be ineligible to submit a certification pursuant to this subdivi-
 sion.
   (IV) THE AGENCY SHALL  NOT  REQUIRE  THAT  THE  APPLICANT  DEMONSTRATE
 COMPLIANCE WITH THE REQUIREMENTS OF PARAGRAPH (C) OF THIS SUBDIVISION AS
 A CONDITION TO APPROVAL OF THE APPLICATION.
   [(o)]  (P)  Filing  fee.  The agency may require a filing fee of three
 thousand dollars per dwelling unit in connection with  any  application.
 However,  the  agency  may  promulgate  rules  imposing a lesser fee for
 eligible sites containing eligible multiple dwellings  constructed  with
 the  substantial  assistance of grants, loans or subsidies provided by a
 federal, state or local governmental agency or instrumentality  pursuant
 to a program for the development of affordable housing.
   [(p)] (Q) Rules.
   [The  agency]  EXCEPT  AS  PROVIDED  IN PARAGRAPHS (C) AND (H) OF THIS
 SUBDIVISION, THE AGENCY SHALL HAVE THE SOLE  AUTHORITY  TO  ENFORCE  THE
 PROVISIONS OF THIS SUBDIVISION AND may promulgate rules to carry out the
 provisions of this subdivision.
   [(q)  Authority of city to enact local law. Except as otherwise speci-
 fied in this subdivision, a city to which this subdivision is applicable
 may enact a local law to restrict, limit or  condition  the  eligibility
 for  or  the  scope  or amount of 421-a benefits in any manner, provided
 that such local law may not grant 421-a benefits beyond  those  provided
 in  this  subdivision and provided further that such local law shall not
 take effect sooner than one year after it is enacted. The provisions  of
 sections  11-245  and 11-245.1 of the administrative code of the city of
 New York or of any other local law of the city of  New  York  that  were
 enacted  on  or  before the effective date of the chapter of the laws of
 two thousand fifteen which added  this  paragraph  shall  not  restrict,

 S. 2009--C                         200                        A. 3009--C

 limit  or  condition the eligibility for or the scope or amount of 421-a
 benefits pursuant to this subdivision.]
   (r)  Election.  Notwithstanding  anything  in  this subdivision to the
 contrary, [if a memorandum  of  understanding  pursuant  to  subdivision
 sixteen-a  of  this  section  has  been  executed and noticed,] a rental
 project or homeownership project with a commencement date on  or  before
 December  thirty-first, two thousand fifteen that has not received bene-
 fits pursuant to this section prior to the effective date of the chapter
 of the laws of two thousand fifteen  that  added  this  subdivision  may
 elect to comply with this subdivision and receive [421-a] AFFORDABLE NEW
 YORK HOUSING PROGRAM benefits pursuant to this subdivision.
   § 4. Subdivision 16-a of section 421-a of the real property tax law is
 REPEALED.
   §  5.  On  or  before May 31, 2021 the commissioner of the division of
 housing and community renewal shall issue a report to the governor,  the
 temporary  president of the senate and the speaker of the assembly exam-
 ining the economic impact of the Affordable New York Housing Program  on
 the  development  of affordable dwelling units, jobs and social opportu-
 nities created by the Affordable New York Housing Program, the  cost  of
 the  Affordable New York Housing Program, the impact on communities with
 Affordable New York Housing Program developments, and other such factors
 as the commissioner of the division of  housing  and  community  renewal
 deems  appropriate.  The  division  of housing and community renewal may
 exercise all authority granted to it by this or any other  statute.  The
 division  of housing and community renewal may request and shall receive
 cooperation and assistance  from  all  departments,  divisions,  boards,
 bureaus,  commissions,  public  benefit  corporations or agencies of the
 state of New York, the city of New York or any other political  subdivi-
 sions  thereof,  or  any  entity  receiving benefits pursuant to section
 421-a of the real property tax law.
   § 6. 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.
   §  7.  This  act shall take effect immediately; and provided, however,
 that sections one, two, and three of this act shall be  deemed  to  have
 been in full force and effect on and after January 1, 2016.
 
                                 PART UUU
 
   Section  1.  The  economic  development law is amended by adding a new
 section 100-a to read as follows:
   § 100-A. COMPREHENSIVE ECONOMIC DEVELOPMENT REPORTING. THE  DEPARTMENT
 SHALL  PREPARE  AN  ANNUAL COMPREHENSIVE ECONOMIC DEVELOPMENT REPORT, NO
 LATER THAN DECEMBER THIRTY-FIRST OF EACH YEAR, LISTING ECONOMIC DEVELOP-
 MENT ASSISTANCE PROVIDED BY THE NEW YORK STATE URBAN DEVELOPMENT  CORPO-
 RATION  AND  THE  DEPARTMENT,  INCLUDING BUT NOT LIMITED TO TAX EXPENDI-
 TURES,  MARKETING  AND  ADVERTISING,  GRANTS,  AWARDS  AND  LOANS.  SUCH
 COMPREHENSIVE  REPORT  SHALL  INCLUDE AGGREGATE TOTALS FOR EACH ECONOMIC
 DEVELOPMENT PROGRAM ADMINISTERED BY THE NEW YORK STATE URBAN DEVELOPMENT
 CORPORATION AND THE DEPARTMENT, INCLUDING BUT  NOT  LIMITED  TO  PROGRAM

 S. 2009--C                         201                        A. 3009--C
 
 PROGRESS,   PROGRAM   PARTICIPATION  RATES,  ECONOMIC  IMPACT,  REGIONAL
 DISTRIBUTION, INDUSTRY TRENDS, AND ANY OTHER INFORMATION  DEEMED  NECES-
 SARY  BY  THE  COMMISSIONER.   THE DEPARTMENT SHALL PROMINENTLY POST THE
 COMPREHENSIVE  ECONOMIC  DEVELOPMENT REPORT ON ITS WEBSITE NO LATER THAN
 JANUARY FIRST OF EACH YEAR.
   § 2. Section 438 of the economic development law is REPEALED.
   § 3. Subdivision 1 of section 433 of the economic development law,  as
 added  by  section  1  of  part  A of chapter 68 of the laws of 2013, is
 amended to read as follows:
   1. In order to participate in the START-UP NY program, a business must
 satisfy all of the following criteria.
   (a) The mission and activities of the  business  must  align  with  or
 further  the academic mission of the campus, college or university spon-
 soring the tax-free NY area in which it seeks to locate, and  the  busi-
 ness's  participation  in  the  START-UP  NY  program must have positive
 community and economic benefits.
   (b) The business must demonstrate that it will, in its first  year  of
 operation,  create  net new jobs. After its first year of operation, the
 business must maintain net new jobs. In addition, the average number  of
 employees  of  the  business and its related persons in the state during
 the year must equal or exceed the sum of:  (i)  the  average  number  of
 employees  of  the  business and its related persons in the state during
 the year immediately preceding the year in which  the  business  submits
 its  application  to locate in a tax-free NY area; and (ii) net new jobs
 of the business in the tax-free NY area during  the  year.  The  average
 number of employees of the business and its related persons in the state
 shall  be determined by adding together the total number of employees of
 the business and its related persons in the state on March thirty-first,
 June thirtieth, September thirtieth and December thirty-first and divid-
 ing the total by the number of such dates occurring within such year.
   (c) Except as provided in paragraphs [(g)] (F) and [(h)] (G)  of  this
 subdivision,  at the time it submits its application for the START-UP NY
 program, the business must be a new business to the state.
   (d) The business may be organized as  a  corporation,  a  partnership,
 limited liability company or a sole proprietorship.
   [(e)  Upon completion of its first year in the START-UP NY program and
 thereafter, the business must complete and timely file the annual report
 required under section four hundred thirty-eight of this article.
   (f)] (E) Except as provided in paragraphs [(g)] (F) and [(h)]  (G)  of
 this subdivision, the business must not be engaged in a line of business
 that  is  currently  or  was  previously  conducted by the business or a
 related person in the last five years in New York state.
   [(g)] (F) If a business does not satisfy the eligibility standard  set
 forth  in paragraph (c) or [(f)] (E) of this subdivision, because at one
 point in time it operated in New York state but moved its operations out
 of New York state on or before June first, two  thousand  thirteen,  the
 commissioner  shall  grant  that business permission to apply to partic-
 ipate in the START-UP NY program if the commissioner determines that the
 business has demonstrated that it will substantially restore the jobs in
 New York state that it previously had moved out of state.
   [(h)] (G) If a business seeks to expand its current operations in  New
 York  state into a tax-free NY area but the business does not qualify as
 a new business because it does not satisfy the criteria in paragraph (c)
 of subdivision six of section four hundred thirty-one of this article or
 the business does not satisfy the  eligibility  standard  set  forth  in
 paragraph  [(f)]  (E)  of this subdivision, the commissioner shall grant

 S. 2009--C                         202                        A. 3009--C
 
 the business permission to apply  to  participate  in  the  START-UP  NY
 program  if  the  commissioner  determines  that the business has demon-
 strated that it will create net new jobs in the  tax-free  NY  area  and
 that  it  or any related person has not eliminated any jobs in the state
 in connection with this expansion.
   § 4. This act shall take effect immediately.
 
                                 PART VVV
 
   Section 1. Section 60.45 of the criminal procedure law is  amended  by
 adding a new subdivision 3 to read as follows:
   3.  (A)  WHERE  A  PERSON  IS  SUBJECT TO CUSTODIAL INTERROGATION BY A
 PUBLIC SERVANT AT A DETENTION FACILITY, THE  ENTIRE  CUSTODIAL  INTERRO-
 GATION, INCLUDING THE GIVING OF ANY REQUIRED ADVICE OF THE RIGHTS OF THE
 INDIVIDUAL  BEING  QUESTIONED, AND THE WAIVER OF ANY RIGHTS BY THE INDI-
 VIDUAL, SHALL BE RECORDED BY AN APPROPRIATE VIDEO  RECORDING  DEVICE  IF
 THE  INTERROGATION  INVOLVES  A  CLASS A-1 FELONY, EXCEPT ONE DEFINED IN
 ARTICLE TWO HUNDRED TWENTY OF THE PENAL LAW; FELONY OFFENSES DEFINED  IN
 SECTION  130.95 AND 130.96 OF THE PENAL LAW; OR A FELONY OFFENSE DEFINED
 IN ARTICLE ONE HUNDRED TWENTY-FIVE OR ONE HUNDRED  THIRTY  OF  SUCH  LAW
 THAT  IS DEFINED AS A CLASS B VIOLENT FELONY OFFENSE IN SECTION 70.02 OF
 THE PENAL LAW. FOR PURPOSES  OF  THIS  PARAGRAPH,  THE  TERM  "DETENTION
 FACILITY"  SHALL  MEAN  A POLICE STATION, CORRECTIONAL FACILITY, HOLDING
 FACILITY FOR PRISONERS, PROSECUTOR'S  OFFICE  OR  OTHER  FACILITY  WHERE
 PERSONS  ARE  HELD IN DETENTION IN CONNECTION WITH CRIMINAL CHARGES THAT
 HAVE BEEN OR MAY BE FILED AGAINST THEM.
   (B) NO CONFESSION, ADMISSION OR OTHER STATEMENT SHALL BE SUBJECT TO  A
 MOTION  TO  SUPPRESS  PURSUANT TO SUBDIVISION THREE OF SECTION 710.20 OF
 THIS CHAPTER BASED SOLELY UPON THE FAILURE TO VIDEO RECORD SUCH INTERRO-
 GATION IN A DETENTION FACILITY AS  DEFINED  IN  PARAGRAPH  (A)  OF  THIS
 SUBDIVISION. HOWEVER, WHERE THE PEOPLE OFFER INTO EVIDENCE A CONFESSION,
 ADMISSION OR OTHER STATEMENT MADE BY A PERSON IN CUSTODY WITH RESPECT TO
 HIS  OR  HER PARTICIPATION OR LACK OF PARTICIPATION IN AN OFFENSE SPECI-
 FIED IN PARAGRAPH (A) OF THIS  SUBDIVISION,  THAT  HAS  NOT  BEEN  VIDEO
 RECORDED,  THE  COURT  SHALL CONSIDER THE FAILURE TO RECORD AS A FACTOR,
 BUT NOT AS THE SOLE FACTOR, IN ACCORDANCE WITH  PARAGRAPH  (C)  OF  THIS
 SUBDIVISION  IN  DETERMINING WHETHER SUCH CONFESSION, ADMISSION OR OTHER
 STATEMENT SHALL BE ADMISSIBLE.
   (C) NOTWITHSTANDING THE REQUIREMENT OF PARAGRAPH (A) OF THIS  SUBDIVI-
 SION,  UPON  A  SHOWING  OF  GOOD CAUSE BY THE PROSECUTOR, THE CUSTODIAL
 INTERROGATION NEED NOT BE RECORDED. GOOD CAUSE SHALL INCLUDE, BUT NOT BE
 LIMITED TO:
   (I) IF ELECTRONIC RECORDING EQUIPMENT MALFUNCTIONS.
   (II) IF ELECTRONIC RECORDING EQUIPMENT IS NOT AVAILABLE BECAUSE IT WAS
 OTHERWISE BEING USED.
   (III) IF STATEMENTS  ARE  MADE  IN  RESPONSE  TO  QUESTIONS  THAT  ARE
 ROUTINELY ASKED DURING ARREST PROCESSING.
   (IV)  IF THE STATEMENT IS SPONTANEOUSLY MADE BY THE SUSPECT AND NOT IN
 RESPONSE TO POLICE QUESTIONING.
   (V) IF THE STATEMENT IS MADE DURING AN INTERROGATION THAT IS CONDUCTED
 WHEN THE INTERVIEWER IS UNAWARE THAT A QUALIFYING OFFENSE HAS OCCURRED.
   (VI) IF THE STATEMENT IS MADE AT A LOCATION OTHER THAN THE  "INTERVIEW
 ROOM"  BECAUSE  THE  SUSPECT  CANNOT  BE BROUGHT TO SUCH ROOM, E.G., THE
 SUSPECT IS IN A HOSPITAL OR THE SUSPECT IS OUT OF STATE AND  THAT  STATE
 IS NOT GOVERNED BY A LAW REQUIRING THE RECORDATION OF AN INTERROGATION.

 S. 2009--C                         203                        A. 3009--C
 
   (VII)  IF THE STATEMENT IS MADE AFTER A SUSPECT HAS REFUSED TO PARTIC-
 IPATE IN THE INTERROGATION IF IT IS RECORDED, AND APPROPRIATE EFFORT  TO
 DOCUMENT SUCH REFUSAL IS MADE.
   (VIII) IF SUCH STATEMENT IS NOT RECORDED AS A RESULT OF AN INADVERTENT
 ERROR  OR  OVERSIGHT,  NOT  THE RESULT OF ANY INTENTIONAL CONDUCT BY LAW
 ENFORCEMENT PERSONNEL.
   (IX) IF IT IS LAW ENFORCEMENT'S REASONABLE BELIEF THAT SUCH  RECORDING
 WOULD  JEOPARDIZE  THE  SAFETY OF ANY PERSON OR REVEAL THE IDENTITY OF A
 CONFIDENTIAL INFORMANT.
   (X) IF SUCH STATEMENT IS MADE AT A LOCATION NOT EQUIPPED WITH A  VIDEO
 RECORDING  DEVICE  AND  THE  REASON  FOR  USING  THAT LOCATION IS NOT TO
 SUBVERT THE INTENT OF THE LAW. FOR PURPOSES OF THIS  SECTION,  THE  TERM
 "LOCATION"  SHALL  INCLUDE THOSE LOCATIONS SPECIFIED IN PARAGRAPH (B) OF
 SUBDIVISION FOUR OF SECTION 305.2 OF THE FAMILY COURT ACT.
   (D) IN THE EVENT THE COURT FINDS THAT THE PEOPLE HAVE NOT  SHOWN  GOOD
 CAUSE  FOR  THE  NON-RECORDING  OF  THE  CONFESSION, ADMISSION, OR OTHER
 STATEMENT, BUT DETERMINES THAT A NON-RECORDED CONFESSION,  ADMISSION  OR
 OTHER  STATEMENT  IS  NEVERTHELESS ADMISSIBLE BECAUSE IT WAS VOLUNTARILY
 MADE THEN, UPON REQUEST OF THE DEFENDANT, THE COURT  MUST  INSTRUCT  THE
 JURY  THAT  THE  PEOPLE'S  FAILURE TO RECORD THE DEFENDANT'S CONFESSION,
 ADMISSION OR OTHER STATEMENT AS REQUIRED BY THIS SECTION MAY BE  WEIGHED
 AS  A  FACTOR,  BUT  NOT AS THE SOLE FACTOR, IN DETERMINING WHETHER SUCH
 CONFESSION, ADMISSION OR OTHER STATEMENT WAS VOLUNTARILY  MADE,  OR  WAS
 MADE AT ALL.
   (E)  VIDEO RECORDING AS REQUIRED BY THIS SECTION SHALL BE CONDUCTED IN
 ACCORDANCE WITH STANDARDS ESTABLISHED BY RULE OF THE DIVISION OF  CRIMI-
 NAL JUSTICE SERVICES.
   §  2. Subdivision 3 of section 344.2 of the family court act is renum-
 bered subdivision 4 and a new subdivision 3 is added to read as follows:
   3. WHERE A RESPONDENT IS  SUBJECT  TO  CUSTODIAL  INTERROGATION  BY  A
 PUBLIC  SERVANT  AT  A FACILITY SPECIFIED IN SUBDIVISION FOUR OF SECTION
 305.2 OF THIS ARTICLE, THE ENTIRE CUSTODIAL INTERROGATION, INCLUDING THE
 GIVING OF ANY REQUIRED ADVICE OF THE  RIGHTS  OF  THE  INDIVIDUAL  BEING
 QUESTIONED,  AND  THE  WAIVER  OF ANY RIGHTS BY THE INDIVIDUAL, SHALL BE
 RECORDED AND GOVERNED IN ACCORDANCE WITH THE  PROVISIONS  OF  PARAGRAPHS
 (A),  (B), (C), (D) AND (E) OF SUBDIVISION THREE OF SECTION 60.45 OF THE
 CRIMINAL PROCEDURE LAW.
   § 3. Section 60.25 of the criminal procedure law, subparagraph (ii) of
 paragraph (a) of subdivision 1 as amended by chapter 479 of the laws  of
 1977, is amended to read as follows:
 § 60.25 Rules  of evidence; identification by means of previous recogni-
           tion, in absence of present identification.
   1. In any criminal proceeding in which the defendant's  commission  of
 an  offense is in issue, testimony as provided in subdivision two may be
 given by a witness when:
   (a) Such witness testifies that:
   (i) He OR SHE observed the person claimed by  the  people  to  be  the
 defendant  either at the time and place of the commission of the offense
 or upon some other occasion relevant to the case; and
   (ii) On a subsequent occasion he OR SHE observed, under  circumstances
 consistent  with  such  rights as an accused person may derive under the
 constitution of this state or of the United States, a person  OR,  WHERE
 THE  OBSERVATION  IS  MADE  PURSUANT  TO A BLIND OR BLINDED PROCEDURE AS
 DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION, A PICTORIAL, PHOTOGRAPHIC,
 ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF A PERSON whom he OR

 S. 2009--C                         204                        A. 3009--C
 
 SHE recognized as the same person whom he OR SHE  had  observed  on  the
 first or incriminating occasion; and
   (iii)  He OR SHE is unable at the proceeding to state, on the basis of
 present recollection, whether or not the  defendant  is  the  person  in
 question; and
   (b)  It  is  established that the defendant is in fact the person whom
 the witness observed and recognized OR  WHOSE  PICTORIAL,  PHOTOGRAPHIC,
 ELECTRONIC,  FILMED  OR VIDEO RECORDED REPRODUCTION THE WITNESS OBSERVED
 AND RECOGNIZED on the second occasion.  Such fact may be established  by
 testimony  of  another  person  or  persons to whom the witness promptly
 declared his OR HER recognition on such occasion AND BY SUCH  PICTORIAL,
 PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION.
   (C)  FOR  PURPOSES  OF THIS SECTION, A "BLIND OR BLINDED PROCEDURE" IS
 ONE IN WHICH THE WITNESS IDENTIFIES A PERSON IN AN ARRAY  OF  PICTORIAL,
 PHOTOGRAPHIC,  ELECTRONIC,  FILMED OR VIDEO RECORDED REPRODUCTIONS UNDER
 CIRCUMSTANCES WHERE, AT THE TIME THE IDENTIFICATION IS MADE, THE  PUBLIC
 SERVANT  ADMINISTERING SUCH PROCEDURE: (I) DOES NOT KNOW WHICH PERSON IN
 THE ARRAY IS THE SUSPECT, OR (II) DOES NOT KNOW WHERE THE SUSPECT IS  IN
 THE  ARRAY  VIEWED  BY  THE  WITNESS. THE FAILURE OF A PUBLIC SERVANT TO
 FOLLOW SUCH A PROCEDURE SHALL BE ASSESSED SOLELY FOR  PURPOSES  OF  THIS
 ARTICLE  AND  SHALL  RESULT IN THE PRECLUSION OF TESTIMONY REGARDING THE
 IDENTIFICATION PROCEDURE AS EVIDENCE IN CHIEF, BUT SHALL NOT  CONSTITUTE
 A  LEGAL  BASIS TO SUPPRESS EVIDENCE MADE PURSUANT TO SUBDIVISION SIX OF
 SECTION 710.20 OF THIS CHAPTER. THIS ARTICLE NEITHER LIMITS NOR  EXPANDS
 SUBDIVISION SIX OF SECTION 710.20 OF THIS CHAPTER.
   2.  Under circumstances prescribed in subdivision one OF THIS SECTION,
 such witness may testify at the criminal proceeding that the person whom
 he OR SHE observed and  recognized  OR  WHOSE  PICTORIAL,  PHOTOGRAPHIC,
 ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION HE OR SHE OBSERVED AND
 RECOGNIZED  on  the  second  occasion  is the same person whom he OR SHE
 observed on the  first  or  incriminating  occasion.    Such  testimony,
 together with the evidence that the defendant is in fact the person whom
 the  witness  observed  and recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC,
 ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION HE OR SHE OBSERVED AND
 RECOGNIZED on the second occasion, constitutes evidence in chief.
   § 4. Section 60.30 of the criminal procedure law, as amended by  chap-
 ter 479 of the laws of 1977, is amended to read as follows:
 § 60.30 Rules  of evidence; identification by means of previous recogni-
           tion, in addition to present identification.
   In any criminal proceeding in which the defendant's commission  of  an
 offense is in issue, a witness who testifies that (a) he OR SHE observed
 the  person claimed by the people to be the defendant either at the time
 and place of the commission of the offense or upon some  other  occasion
 relevant  to the case, and (b) on the basis of present recollection, the
 defendant is the person in question and (c) on a subsequent occasion  he
 OR SHE observed the defendant, OR WHERE THE OBSERVATION IS MADE PURSUANT
 TO A BLIND OR BLINDED PROCEDURE, AS DEFINED IN PARAGRAPH (C) OF SUBDIVI-
 SION  ONE  OF  SECTION 60.25 OF THIS ARTICLE, A PICTORIAL, PHOTOGRAPHIC,
 ELECTRONIC, FILMED OR VIDEO  RECORDED  REPRODUCTION  OF  THE  DEFENDANT,
 under circumstances consistent with such rights as an accused person may
 derive under the constitution of this state or of the United States, and
 then  also  recognized  him OR HER OR THE PICTORIAL, PHOTOGRAPHIC, ELEC-
 TRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF HIM OR HER as the  same
 person  whom  he OR SHE had observed on the first or incriminating occa-
 sion, may, in addition to making an identification of the  defendant  at
 the  criminal  proceeding  on  the  basis of present recollection as the

 S. 2009--C                         205                        A. 3009--C
 
 person whom he OR SHE observed on the first or  incriminating  occasion,
 also  describe  his  OR  HER  previous  recognition of the defendant and
 testify that the person whom he OR  SHE  observed  OR  WHOSE  PICTORIAL,
 PHOTOGRAPHIC,  ELECTRONIC,  FILMED  OR VIDEO RECORDED REPRODUCTION HE OR
 SHE OBSERVED on such second occasion is the same person whom he  OR  SHE
 had observed on the first or incriminating occasion.  Such testimony AND
 SUCH  PICTORIAL,  PHOTOGRAPHIC,  ELECTRONIC,  FILMED  OR  VIDEO RECORDED
 REPRODUCTION constitutes evidence in chief.
   § 5. Subdivision 6 of section 710.20 of the criminal procedure law, as
 amended by chapter 8 of the laws of 1976 and as  renumbered  by  chapter
 481 of the laws of 1983, is amended to read as follows:
   6.    Consists  of potential testimony regarding an observation of the
 defendant either at the time or place of the commission of  the  offense
 or upon some other occasion relevant to the case, which potential testi-
 mony  would  not be admissible upon the prospective trial of such charge
 owing to an improperly made previous identification of the defendant  OR
 OF  A  PICTORIAL,  PHOTOGRAPHIC,  ELECTRONIC,  FILMED  OR VIDEO RECORDED
 REPRODUCTION OF THE DEFENDANT by the prospective witness.  A CLAIM  THAT
 THE  PREVIOUS  IDENTIFICATION OF THE DEFENDANT OR OF A PICTORIAL, PHOTO-
 GRAPHIC, ELECTRONIC,  FILMED  OR  VIDEO  RECORDED  REPRODUCTION  OF  THE
 DEFENDANT  BY A PROSPECTIVE WITNESS DID NOT COMPLY WITH PARAGRAPH (C) OF
 SUBDIVISION ONE OF SECTION 60.25 OF THIS CHAPTER OR  WITH  THE  PROTOCOL
 PROMULGATED  IN  ACCORDANCE WITH SUBDIVISION TWENTY-ONE OF SECTION EIGHT
 HUNDRED THIRTY-SEVEN OF THE EXECUTIVE LAW SHALL NOT CONSTITUTE  A  LEGAL
 BASIS  TO SUPPRESS EVIDENCE PURSUANT TO THIS SUBDIVISION. A CLAIM THAT A
 PUBLIC SERVANT FAILED TO COMPLY WITH PARAGRAPH (C) OF SUBDIVISION ONE OF
 SECTION 60.25 OF THIS CHAPTER OR OF SUBDIVISION  TWENTY-ONE  OF  SECTION
 EIGHT HUNDRED THIRTY-SEVEN OF THE EXECUTIVE LAW SHALL NEITHER EXPAND NOR
 LIMIT  THE RIGHTS AN ACCUSED PERSON MAY DERIVE UNDER THE CONSTITUTION OF
 THIS STATE OR OF THE UNITED STATES.
   § 6. Subdivision 1 of section 710.30 of the criminal procedure law, as
 separately amended by chapters 8 and 194 of the laws of 1976, is amended
 to read as follows:
   1. Whenever the people intend to offer at a trial (a)  evidence  of  a
 statement  made  by  a defendant to a public servant, which statement if
 involuntarily made would render the evidence thereof  suppressible  upon
 motion pursuant to subdivision three of section 710.20, or (b) testimony
 regarding an observation of the defendant either at the time or place of
 the  commission  of  the offense or upon some other occasion relevant to
 the case, to be given by a witness who has previously identified him  OR
 HER  OR  A PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED
 REPRODUCTION OF HIM OR HER as such, they must serve upon the defendant a
 notice of  such  intention,  specifying  the  evidence  intended  to  be
 offered.
   § 7. Section 343.3 of the family court act, as added by chapter 920 of
 the laws of 1982, is amended to read as follows:
   § 343.3. Rules of evidence; identification by means of previous recog-
 nition  in  absence of present identification. 1. In any juvenile delin-
 quency proceeding in which the respondent's commission of a crime is  in
 issue,  testimony  as  provided  in  subdivision  two  may be given by a
 witness when:
   (a) such witness testifies that:
   (i) he OR SHE observed the person claimed by the presentment agency to
 be the respondent either at the time and place of the commission of  the
 crime or upon some other occasion relevant to the case; and

 S. 2009--C                         206                        A. 3009--C
 
   (ii)  on a subsequent occasion he OR SHE observed, under circumstances
 consistent with such rights as an accused person may  derive  under  the
 constitution  of this state or of the United States, a person, OR, WHERE
 THE OBSERVATION IS MADE PURSUANT TO A  BLIND  OR  BLINDED  PROCEDURE  AS
 DEFINED  HEREIN,  A PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO
 RECORDED REPRODUCTION OF A PERSON whom he OR SHE recognized as the  same
 person  whom he OR SHE had observed on the first incriminating occasion;
 and
   (iii) he OR SHE is unable at the proceeding to state, on the basis  of
 present  recollection,  whether  or  not the respondent is the person in
 question; and
   (b) it is established that the respondent is in fact the  person  whom
 the  witness  observed  and recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC,
 ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION THE  WITNESS  OBSERVED
 AND  RECOGNIZED  on the second occasion. Such fact may be established by
 testimony of another person or persons  to  whom  the  witness  promptly
 declared  his OR HER recognition on such occasion AND BY SUCH PICTORIAL,
 PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION.
   (C) FOR PURPOSES OF THIS SECTION, A "BLIND OR  BLINDED  PROCEDURE"  IS
 ONE  IN  WHICH THE WITNESS IDENTIFIES A PERSON IN AN ARRAY OF PICTORIAL,
 PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO RECORDED  REPRODUCTIONS  UNDER
 CIRCUMSTANCES  WHERE, AT THE TIME THE IDENTIFICATION IS MADE, THE PUBLIC
 SERVANT ADMINISTERING SUCH PROCEDURE: (I) DOES NOT KNOW WHICH PERSON  IN
 THE  ARRAY IS THE SUSPECT, OR (II) DOES NOT KNOW WHERE THE SUSPECT IS IN
 THE ARRAY VIEWED BY THE WITNESS. THE FAILURE  OF  A  PUBLIC  SERVANT  TO
 FOLLOW  SUCH  A  PROCEDURE SHALL BE ASSESSED SOLELY FOR PURPOSES OF THIS
 ARTICLE AND SHALL RESULT IN THE PRECLUSION OF  TESTIMONY  REGARDING  THE
 IDENTIFICATION  PROCEDURE AS EVIDENCE IN CHIEF, BUT SHALL NOT CONSTITUTE
 A LEGAL BASIS TO SUPPRESS EVIDENCE MADE PURSUANT TO SUBDIVISION  SIX  OF
 SECTION  710.20  OF  THE  CRIMINAL  PROCEDURE  LAW. THIS ARTICLE NEITHER
 LIMITS NOT EXPANDS SUBDIVISION SIX OF SECTION  710.20  OF  THE  CRIMINAL
 PROCEDURE LAW.
   2. Under circumstances prescribed in subdivision one, such witness may
 testify  at  the  proceeding that the person whom he OR SHE observed and
 recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO
 RECORDED REPRODUCTION HE OR SHE OBSERVED AND RECOGNIZED  on  the  second
 occasion  is  the  same  person  whom he OR SHE observed on the first or
 incriminating occasion. Such testimony, together with the evidence  that
 the  respondent  is  in  fact  the  person whom the witness observed and
 recognized OR WHOSE PICTORIAL, PHOTOGRAPHIC, ELECTRONIC, FILMED OR VIDEO
 RECORDED REPRODUCTION HE OR SHE OBSERVED AND RECOGNIZED  on  the  second
 occasion, constitutes evidence in chief.
   § 8. Section 343.4 of the family court act, as added by chapter 920 of
 the laws of 1982, is amended to read as follows:
   § 343.4. Rules of evidence; identification by means of previous recog-
 nition,  in  addition  to present identification. In any juvenile delin-
 quency proceeding in which the respondent's commission of a crime is  in
 issue,  a  witness who testifies that: (a) he OR SHE observed the person
 claimed by the presentment agency to be the  respondent  either  at  the
 time  and  place of the commission of the crime or upon some other occa-
 sion relevant to the case, and (b) on the basis of present recollection,
 the respondent is the person in question, and (c) on a subsequent  occa-
 sion  he  OR  SHE  observed the respondent, OR, WHERE THE OBSERVATION IS
 MADE PURSUANT TO A BLIND OR BLINDED PROCEDURE, A PICTORIAL,  PHOTOGRAPH-
 IC,  ELECTRONIC, FILMED OR VIDEO RECORDED REPRODUCTION OF THE RESPONDENT
 under circumstances consistent with such rights as an accused person may

 S. 2009--C                         207                        A. 3009--C
 
 derive under the constitution of this state or of the United States, and
 then also recognized him OR HER OR THE  PICTORIAL,  PHOTOGRAPHIC,  ELEC-
 TRONIC,  FILMED OR VIDEO RECORDED REPRODUCTION OF HIM OR HER as the same
 person  whom  he OR SHE had observed on the first or incriminating occa-
 sion, may, in addition to making an identification of the respondent  at
 the  delinquency  proceeding on the basis of present recollection as the
 person whom he OR SHE observed on the first or  incriminating  occasion,
 also  describe  his  OR  HER  previous recognition of the respondent and
 testify that the person whom he OR  SHE  observed  OR  WHOSE  PICTORIAL,
 PHOTOGRAPHIC,  ELECTRONIC,  FILMED  OR VIDEO RECORDED REPRODUCTION HE OR
 SHE OBSERVED on such second occasion is the same person whom he  OR  SHE
 had  observed on the first or incriminating occasion. Such testimony AND
 SUCH PICTORIAL,  PHOTOGRAPHIC,  ELECTRONIC,  FILMED  OR  VIDEO  RECORDED
 REPRODUCTION  constitutes  evidence  in  chief.  FOR  PURPOSES  OF  THIS
 SECTION, A "BLIND OR BLINDED PROCEDURE" SHALL BE AS DEFINED IN PARAGRAPH
 (C) OF SUBDIVISION ONE OF SECTION 343.3 OF THIS PART.
   § 9. Section 837 of the executive law  is  amended  by  adding  a  new
 subdivision 21 to read as follows:
   21.  PROMULGATE  A  STANDARDIZED AND DETAILED WRITTEN PROTOCOL THAT IS
 GROUNDED IN EVIDENCE-BASED PRINCIPLES FOR THE ADMINISTRATION  OF  PHOTO-
 GRAPHIC ARRAY AND LIVE LINEUP IDENTIFICATION PROCEDURES FOR POLICE AGEN-
 CIES  AND  STANDARDIZED  FORMS FOR USE BY SUCH AGENCIES IN THE REPORTING
 AND RECORDING OF  SUCH  IDENTIFICATION  PROCEDURE.  THE  PROTOCOL  SHALL
 ADDRESS THE FOLLOWING TOPICS:
   (A)  THE SELECTION OF PHOTOGRAPHIC ARRAY AND LIVE LINEUP FILLER PHOTO-
 GRAPHS OR PARTICIPANTS;
   (B) INSTRUCTIONS GIVEN TO A WITNESS BEFORE CONDUCTING  A  PHOTOGRAPHIC
 ARRAY OR LIVE LINEUP IDENTIFICATION PROCEDURE;
   (C)  THE  DOCUMENTATION  AND PRESERVATION OF RESULTS OF A PHOTOGRAPHIC
 ARRAY OR LIVE LINEUP IDENTIFICATION PROCEDURE;
   (D) PROCEDURES FOR ELICITING AND DOCUMENTING THE WITNESS'S  CONFIDENCE
 IN  HIS  OR  HER  IDENTIFICATION  FOLLOWING A PHOTOGRAPHIC ARRAY OR LIVE
 LINEUP IDENTIFICATION PROCEDURE, IN THE EVENT THAT AN IDENTIFICATION  IS
 MADE; AND
   (E)  PROCEDURES  FOR ADMINISTERING A PHOTOGRAPHIC ARRAY OR LIVE LINEUP
 IDENTIFICATION PROCEDURE IN A MANNER DESIGNED TO  PREVENT  OPPORTUNITIES
 TO INFLUENCE THE WITNESS.
   §  10. Subdivision 4 of section 840 of the executive law is amended by
 adding a new paragraph (c) to read as follows:
   (C) DISSEMINATE THE WRITTEN POLICIES  AND  PROCEDURES  PROMULGATED  IN
 ACCORDANCE  WITH SUBDIVISION TWENTY-ONE OF SECTION EIGHT HUNDRED THIRTY-
 SEVEN OF THIS ARTICLE TO ALL POLICE DEPARTMENTS IN THIS STATE AND IMPLE-
 MENT A TRAINING PROGRAM FOR ALL CURRENT AND NEW POLICE OFFICERS  REGARD-
 ING   THE   POLICIES   AND   PROCEDURES  ESTABLISHED  PURSUANT  TO  SUCH
 SUBDIVISION.
   § 11. Section 722-e of the county law, as added by chapter 878 of  the
 laws of 1965, is amended to read as follows:
   §  722-e.  Expenses.  All  expenses for providing counsel and services
 other than counsel hereunder shall be a county charge or in the case  of
 a county wholly located within a city a city charge to be paid out of an
 appropriation for such purposes.  PROVIDED, HOWEVER, THAT ANY SUCH ADDI-
 TIONAL  EXPENSES INCURRED FOR THE PROVISION OF COUNSEL AND SERVICES AS A
 RESULT OF THE IMPLEMENTATION OF A PLAN ESTABLISHED PURSUANT TO  SUBDIVI-
 SION  FOUR  OF  SECTION  EIGHT  HUNDRED THIRTY-TWO OF THE EXECUTIVE LAW,
 INCLUDING ANY INTERIM STEPS TAKEN TO IMPLEMENT SUCH PLAN, SHALL BE REIM-
 BURSED BY THE STATE TO THE COUNTY OR CITY PROVIDING SUCH SERVICES.  SUCH

 S. 2009--C                         208                        A. 3009--C
 
 PLANS SHALL BE SUBMITTED BY THE OFFICE OF INDIGENT LEGAL SERVICES TO THE
 DIRECTOR OF THE DIVISION OF BUDGET FOR REVIEW AND APPROVAL. HOWEVER, THE
 DIRECTOR'S  APPROVAL  SHALL  BE  LIMITED  SOLELY TO THE PLAN'S PROJECTED
 FISCAL  IMPACT  OF  THE REQUIRED APPROPRIATION FOR THE IMPLEMENTATION OF
 SUCH PLAN, AND HIS OR HER APPROVAL SHALL NOT BE  UNREASONABLY  WITHHELD.
 THE  STATE  SHALL  APPROPRIATE  FUNDS  SUFFICIENT  TO  PROVIDE  FOR  THE
 REIMBURSEMENT REQUIRED BY THIS SECTION.
   § 12. Section 832 of the executive law is  amended  by  adding  a  new
 subdivision 4 to read as follows:
   4.  ADDITIONAL  DUTIES  AND  RESPONSIBILITIES.    THE OFFICE SHALL, IN
 CONSULTATION WITH THE INDIGENT LEGAL SERVICES BOARD ESTABLISHED PURSUANT
 TO SECTION EIGHT HUNDRED THIRTY-THREE OF THIS ARTICLE, HAVE THE  FOLLOW-
 ING DUTIES AND RESPONSIBILITIES, AND ANY PLAN DEVELOPED PURSUANT TO THIS
 SUBDIVISION  SHALL  BE  SUBMITTED  BY  THE OFFICE TO THE DIRECTOR OF THE
 DIVISION OF BUDGET FOR REVIEW AND APPROVAL, PROVIDED, HOWEVER  THAT  THE
 DIRECTOR'S  APPROVAL  SHALL  BE  LIMITED  SOLELY TO THE PLAN'S PROJECTED
 FISCAL IMPACT OF THE REQUIRED APPROPRIATION FOR  THE  IMPLEMENTATION  OF
 SUCH PLAN AND HIS OR HER APPROVAL SHALL NOT BE UNREASONABLY WITHHELD:
   (A)  COUNSEL  AT  ARRAIGNMENT. DEVELOP AND IMPLEMENT A WRITTEN PLAN TO
 ENSURE THAT EACH CRIMINAL DEFENDANT WHO IS ELIGIBLE FOR PUBLICLY  FUNDED
 LEGAL  REPRESENTATION  IS REPRESENTED BY COUNSEL IN PERSON AT HIS OR HER
 ARRAIGNMENT; PROVIDED, HOWEVER, THAT A TIMELY ARRAIGNMENT  WITH  COUNSEL
 SHALL  NOT BE DELAYED PENDING A DETERMINATION OF A DEFENDANT'S ELIGIBIL-
 ITY.
   (I) FOR THE PURPOSES OF THE PLAN DEVELOPED PURSUANT TO  THIS  SUBDIVI-
 SION, THE TERM "ARRAIGNMENT" SHALL MEAN THE FIRST APPEARANCE BY A PERSON
 CHARGED WITH A CRIME BEFORE A JUDGE OR MAGISTRATE, WITH THE EXCEPTION OF
 AN  APPEARANCE  WHERE  NO  PROSECUTOR APPEARS AND NO ACTION OCCURS OTHER
 THAN THE ADJOURNMENT OF  THE  CRIMINAL  PROCESS  AND  THE  UNCONDITIONAL
 RELEASE  OF  THE PERSON CHARGED (IN WHICH EVENT "ARRAIGNMENT" SHALL MEAN
 THE PERSON'S NEXT APPEARANCE BEFORE A JUDGE OR MAGISTRATE).
   (II) THE WRITTEN PLAN DEVELOPED PURSUANT TO THIS SUBDIVISION SHALL  BE
 COMPLETED  BY  DECEMBER  FIRST, TWO THOUSAND SEVENTEEN AND SHALL INCLUDE
 INTERIM STEPS FOR EACH COUNTY AND THE CITY OF  NEW  YORK  FOR  ACHIEVING
 COMPLIANCE WITH THE PLAN.
   (III) EACH COUNTY AND THE CITY OF NEW YORK SHALL, IN CONSULTATION WITH
 THE  OFFICE, UNDERTAKE GOOD FAITH EFFORTS TO IMPLEMENT THE PLAN AND SUCH
 PLAN SHALL BE FULLY IMPLEMENTED AND ADHERED TO IN EACH  COUNTY  AND  THE
 CITY  OF NEW YORK BY APRIL FIRST, TWO THOUSAND TWENTY-THREE. PURSUANT TO
 SECTION SEVEN HUNDRED TWENTY-TWO-E OF THE COUNTY LAW,  THE  STATE  SHALL
 REIMBURSE EACH COUNTY AND THE CITY OF NEW YORK FOR ANY COSTS INCURRED AS
 A RESULT OF IMPLEMENTING SUCH PLAN.
   (IV)  THE  OFFICE SHALL, ON AN ONGOING BASIS, MONITOR AND PERIODICALLY
 REPORT ON THE IMPLEMENTATION OF, AND COMPLIANCE WITH, THE PLAN  IN  EACH
 COUNTY AND THE CITY OF NEW YORK.
   (B)  CASELOAD RELIEF. DEVELOP AND IMPLEMENT A WRITTEN PLAN THAT ESTAB-
 LISHES  NUMERICAL  CASELOAD/WORKLOAD  STANDARDS  FOR  EACH  PROVIDER  OF
 CONSTITUTIONALLY  MANDATED  PUBLICLY  FUNDED  REPRESENTATION IN CRIMINAL
 CASES FOR PEOPLE WHO ARE UNABLE TO AFFORD COUNSEL.
   (I) SUCH STANDARDS SHALL APPLY TO ALL PROVIDERS WHETHER PUBLIC  DEFEN-
 DER, LEGAL AID SOCIETY, ASSIGNED COUNSEL PROGRAM OR CONFLICT DEFENDER IN
 EACH COUNTY AND THE CITY OF NEW YORK.
   (II)  THE WRITTEN PLAN DEVELOPED PURSUANT TO THIS SUBDIVISION SHALL BE
 COMPLETED BY DECEMBER FIRST, TWO THOUSAND SEVENTEEN  AND  SHALL  INCLUDE
 INTERIM  STEPS  FOR  EACH  COUNTY AND THE CITY OF NEW YORK FOR ACHIEVING
 COMPLIANCE WITH THE PLAN. SUCH PLAN SHALL INCLUDE THE NUMBER  OF  ATTOR-

 S. 2009--C                         209                        A. 3009--C
 
 NEYS,  INVESTIGATORS  AND  OTHER  NON-ATTORNEY  STAFF  AND THE AMOUNT OF
 IN-KIND RESOURCES NECESSARY FOR EACH PROVIDER OF MANDATED REPRESENTATION
 TO IMPLEMENT SUCH PLAN.
   (III)  EACH  COUNTY  AND  THE CITY OF NEW  YORK SHALL, IN CONSULTATION
 WITH  THE  OFFICE,  UNDERTAKE  GOOD  FAITH  EFFORTS  TO  IMPLEMENT   THE
 CASELOAD/WORKLOAD  STANDARDS  AND  SUCH  STANDARDS SHALL BE FULLY IMPLE-
 MENTED AND ADHERED TO IN EACH COUNTY AND THE CITY OF NEW YORK  BY  APRIL
 FIRST,  TWO  THOUSAND  TWENTY-THREE.  PURSUANT  TO SECTION SEVEN HUNDRED
 TWENTY-TWO-E OF THE COUNTY LAW, THE STATE SHALL  REIMBURSE  EACH  COUNTY
 AND  THE  CITY  OF NEW YORK FOR ANY COSTS INCURRED AS A RESULT OF IMPLE-
 MENTING SUCH PLAN.
   (IV) THE OFFICE SHALL, ON AN ONGOING BASIS, MONITOR  AND  PERIODICALLY
 REPORT  ON  THE IMPLEMENTATION OF, AND COMPLIANCE WITH, THE PLAN IN EACH
 COUNTY AND THE CITY OF NEW YORK.
   (C) INITIATIVES TO IMPROVE THE QUALITY OF INDIGENT DEFENSE. (I) DEVEL-
 OP AND IMPLEMENT A WRITTEN PLAN TO  IMPROVE  THE  QUALITY  OF  CONSTITU-
 TIONALLY  MANDATED  PUBLICLY FUNDED REPRESENTATION IN CRIMINAL CASES FOR
 PEOPLE WHO ARE UNABLE  TO  AFFORD  COUNSEL  AND  ENSURE  THAT  ATTORNEYS
 PROVIDING  SUCH  REPRESENTATION:  (A)  RECEIVE EFFECTIVE SUPERVISION AND
 TRAINING; (B) HAVE ACCESS TO AND  APPROPRIATELY  UTILIZE  INVESTIGATORS,
 INTERPRETERS  AND EXPERT WITNESSES ON BEHALF OF CLIENTS; (C) COMMUNICATE
 EFFECTIVELY WITH THEIR CLIENTS; (D) HAVE  THE  NECESSARY  QUALIFICATIONS
 AND  EXPERIENCE;  AND (E) IN THE CASE OF ASSIGNED COUNSEL ATTORNEYS, ARE
 ASSIGNED TO CASES IN ACCORDANCE WITH ARTICLE EIGHTEEN-B  OF  THE  COUNTY
 LAW AND IN A MANNER THAT ACCOUNTS FOR THE ATTORNEY'S LEVEL OF EXPERIENCE
 AND CASELOAD/WORKLOAD.
   (II)  THE  OFFICE SHALL, ON AN ONGOING BASIS, MONITOR AND PERIODICALLY
 REPORT ON THE IMPLEMENTATION OF, AND COMPLIANCE WITH, THE PLAN  IN  EACH
 COUNTY AND THE CITY OF NEW YORK.
   (III) THE WRITTEN PLAN DEVELOPED PURSUANT TO THIS SUBDIVISION SHALL BE
 COMPLETED  BY  DECEMBER  FIRST, TWO THOUSAND SEVENTEEN AND SHALL INCLUDE
 INTERIM STEPS FOR EACH COUNTY AND THE CITY OF  NEW  YORK  FOR  ACHIEVING
 COMPLIANCE WITH THE PLAN.
   (IV)  EACH COUNTY AND THE CITY OF NEW YORK SHALL, IN CONSULTATION WITH
 THE OFFICE, UNDERTAKE GOOD FAITH EFFORTS TO IMPLEMENT THE INITIATIVES TO
 IMPROVE THE QUALITY OF INDIGENT DEFENSE AND SUCH  INITIATIVES  SHALL  BE
 FULLY IMPLEMENTED AND ADHERED TO IN EACH COUNTY AND THE CITY OF NEW YORK
 BY  APRIL  FIRST,  TWO  THOUSAND TWENTY-THREE. PURSUANT TO SECTION SEVEN
 HUNDRED TWENTY-TWO-E OF THE COUNTY LAW, THE STATE SHALL  REIMBURSE  EACH
 COUNTY  AND  THE  CITY OF NEW YORK FOR ANY COSTS INCURRED AS A RESULT OF
 IMPLEMENTING SUCH PLAN.
   (D) APPROPRIATION OF FUNDS. IN NO EVENT SHALL A COUNTY AND A  CITY  OF
 NEW  YORK  BE  OBLIGATED TO UNDERTAKE ANY STEPS TO IMPLEMENT THE WRITTEN
 PLANS UNDER PARAGRAPHS (A), (B) AND (C) OF THIS SUBDIVISION UNTIL  FUNDS
 HAVE BEEN APPROPRIATED BY THE STATE FOR SUCH PURPOSE.
   §  13. This act shall take effect immediately; provided, however, that
 sections one and two of this act shall take effect  April  1,  2018  and
 shall  apply  to  confessions, admissions or statements made on or after
 such effective date; provided, further sections  three  through  ten  of
 this act shall take effect July 1, 2017.
 
                                 PART WWW
 
   Section  1.  Section  1.20 of the criminal procedure law is amended by
 adding a new subdivision 44 to read as follows:

 S. 2009--C                         210                        A. 3009--C
 
   44. "ADOLESCENT OFFENDER" MEANS A PERSON CHARGED WITH A FELONY COMMIT-
 TED ON OR AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN WHEN HE OR SHE  WAS
 SIXTEEN  YEARS  OF  AGE OR ON OR AFTER OCTOBER FIRST, TWO THOUSAND NINE-
 TEEN, WHEN HE OR SHE WAS SEVENTEEN YEARS OF AGE.
   §  1-a.  The criminal procedure law is amended by adding a new article
 722 to read as follows:
                                ARTICLE 722
           PROCEEDINGS AGAINST JUVENILE OFFENDERS AND ADOLESCENT
                     OFFENDERS; ESTABLISHMENT OF YOUTH
                        PART AND RELATED PROCEDURES
 SECTION 722.00 PROBATION CASE PLANS.
         722.10 YOUTH PART OF THE SUPERIOR COURT ESTABLISHED.
         722.20 PROCEEDINGS UPON FELONY COMPLAINT; JUVENILE OFFENDER.
         722.21 PROCEEDINGS UPON FELONY COMPLAINT; ADOLESCENT OFFENDER.
         722.22 MOTION TO REMOVE JUVENILE OFFENDER TO FAMILY COURT.
         722.23 REMOVAL OF ADOLESCENT OFFENDERS TO FAMILY COURT.
         722.24 APPLICABILITY OF CHAPTER TO ACTIONS AND MATTERS INVOLVING
                  JUVENILE OFFENDERS OR ADOLESCENT OFFENDERS.
 § 722.00 PROBATION CASE PLANS.
   1. ALL JUVENILE OFFENDERS AND ADOLESCENT OFFENDERS SHALL  BE  NOTIFIED
 OF  THE AVAILABILITY OF SERVICES THROUGH THE LOCAL PROBATION DEPARTMENT.
 SUCH SERVICES SHALL INCLUDE THE ABILITY OF THE PROBATION  DEPARTMENT  TO
 CONDUCT  A RISK AND NEEDS ASSESSMENT, UTILIZING A VALIDATED RISK ASSESS-
 MENT TOOL, IN  ORDER  TO  HELP  DETERMINE  SUITABLE  AND  INDIVIDUALIZED
 PROGRAMMING AND REFERRALS.  PARTICIPATION IN SUCH RISK AND NEEDS ASSESS-
 MENT SHALL BE VOLUNTARY AND THE ADOLESCENT OFFENDER OR JUVENILE OFFENDER
 MAY  BE  ACCOMPANIED  BY COUNSEL DURING ANY SUCH ASSESSMENT.  BASED UPON
 THE ASSESSMENT  FINDINGS,  THE  PROBATION  DEPARTMENT  SHALL  REFER  THE
 ADOLESCENT  OFFENDER  OR  JUVENILE OFFENDER TO AVAILABLE AND APPROPRIATE
 SERVICES.
   2. NOTHING SHALL PRECLUDE THE PROBATION DEPARTMENT AND THE  ADOLESCENT
 OFFENDER  OR  JUVENILE  OFFENDER  FROM ENTERING INTO A VOLUNTARY SERVICE
 PLAN WHICH MAY INCLUDE ALCOHOL, SUBSTANCE USE AND MENTAL  HEALTH  TREAT-
 MENT  AND  SERVICES.  TO  THE  EXTENT  PRACTICABLE,  SUCH SERVICES SHALL
 CONTINUE THROUGH THE PENDENCY OF THE ACTION AND SHALL  FURTHER  CONTINUE
 WHERE SUCH ACTION IS REMOVED IN ACCORDANCE WITH THIS ARTICLE.
   3.  WHEN  PREPARING  A  PRE-SENTENCE  INVESTIGATION REPORT OF ANY SUCH
 ADOLESCENT OFFENDER OR JUVENILE OFFENDER, THE PROBATION DEPARTMENT SHALL
 INCORPORATE A SUMMARY OF ANY ASSESSMENT FINDINGS, REFERRALS AND PROGRESS
 WITH RESPECT TO MITIGATING RISK AND ADDRESSING ANY IDENTIFIED NEEDS.
   4. THE PROBATION SERVICE SHALL NOT TRANSMIT OR  OTHERWISE  COMMUNICATE
 TO  THE  DISTRICT  ATTORNEY  OR THE YOUTH PART ANY STATEMENT MADE BY THE
 JUVENILE OR ADOLESCENT OFFENDER TO A  PROBATION  OFFICER.  HOWEVER,  THE
 PROBATION  SERVICE MAY MAKE A RECOMMENDATION REGARDING THE COMPLETION OF
 HIS OR HER CASE PLAN TO THE YOUTH PART AND PROVIDE SUCH  INFORMATION  AS
 IT SHALL DEEM RELEVANT.
   5.  NO  STATEMENT  MADE  TO THE PROBATION SERVICE MAY BE ADMITTED INTO
 EVIDENCE AT A FACT-FINDING HEARING AT ANY TIME PRIOR TO A CONVICTION.
 § 722.10 YOUTH PART OF THE SUPERIOR COURT ESTABLISHED.
   1. THE CHIEF ADMINISTRATOR OF THE COURTS IS HEREBY DIRECTED TO  ESTAB-
 LISH,  IN  A  SUPERIOR  COURT IN EACH COUNTY OF THE STATE, A PART OF THE
 COURT TO BE KNOWN AS THE YOUTH PART OF THE SUPERIOR COURT FOR THE COUNTY
 IN WHICH SUCH COURT PRESIDES. JUDGES PRESIDING IN THE YOUTH  PART  SHALL
 BE  FAMILY COURT JUDGES, AS DESCRIBED IN ARTICLE SIX, SECTION ONE OF THE
 CONSTITUTION. TO AID IN THEIR WORK, SUCH JUDGES SHALL  RECEIVE  TRAINING
 IN  SPECIALIZED  AREAS, INCLUDING, BUT NOT LIMITED TO, JUVENILE JUSTICE,

 S. 2009--C                         211                        A. 3009--C
 
 ADOLESCENT DEVELOPMENT, CUSTODY AND CARE OF YOUTHS AND EFFECTIVE  TREAT-
 MENT  METHODS  FOR  REDUCING  UNLAWFUL  CONDUCT  BY YOUTHS, AND SHALL BE
 AUTHORIZED TO MAKE APPROPRIATE DETERMINATIONS WITHIN THE POWER  OF  SUCH
 SUPERIOR  COURT  WITH  RESPECT  TO  THE CASES OF YOUTHS ASSIGNED TO SUCH
 PART.  THE  YOUTH  PART  SHALL  HAVE  EXCLUSIVE  JURISDICTION   IN   ALL
 PROCEEDINGS  IN RELATION TO JUVENILE OFFENDERS AND ADOLESCENT OFFENDERS,
 EXCEPT AS PROVIDED IN THIS ARTICLE OR ARTICLE SEVEN HUNDRED  TWENTY-FIVE
 OF THIS CHAPTER.
   2. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL ALSO DIRECT THE PRESID-
 ING  JUSTICE  OF  THE APPELLATE DIVISION, IN EACH JUDICIAL DEPARTMENT OF
 THE STATE, TO DESIGNATE JUDGES AUTHORIZED BY LAW  TO  EXERCISE  CRIMINAL
 JURISDICTION  TO  SERVE  AS  ACCESSIBLE  MAGISTRATES, FOR THE PURPOSE OF
 ACTING  IN  PLACE  OF  THE  YOUTH  PART  FOR  CERTAIN  FIRST  APPEARANCE
 PROCEEDINGS  INVOLVING YOUTHS, AS PROVIDED BY LAW. WHEN DESIGNATING SUCH
 MAGISTRATES, THE PRESIDING JUSTICE SHALL ENSURE  THAT  ALL  AREAS  OF  A
 COUNTY  ARE  WITHIN  A REASONABLE DISTANCE OF A DESIGNATED MAGISTRATE. A
 JUDGE AUTHORIZED TO PRESIDE AS SUCH A  MAGISTRATE  SHALL  HAVE  RECEIVED
 TRAINING  IN  SPECIALIZED AREAS, INCLUDING, BUT NOT LIMITED TO, JUVENILE
 JUSTICE, ADOLESCENT DEVELOPMENT, CUSTODY AND CARE OF YOUTHS  AND  EFFEC-
 TIVE TREATMENT METHODS FOR REDUCING UNLAWFUL CONDUCT BY YOUTHS.
 § 722.20 PROCEEDINGS UPON FELONY COMPLAINT; JUVENILE OFFENDER.
   1.  WHEN  A  JUVENILE  OFFENDER  IS ARRAIGNED BEFORE A YOUTH PART, THE
 PROVISIONS OF THIS SECTION SHALL APPLY.   IF THE YOUTH PART  IS  NOT  IN
 SESSION,  THE  DEFENDANT  SHALL  BE  BROUGHT  BEFORE THE MOST ACCESSIBLE
 MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE SUPREME COURT  TO
 ACT  AS  A  YOUTH PART FOR THE PURPOSE OF MAKING A DETERMINATION WHETHER
 SUCH JUVENILE SHALL BE DETAINED. IF  THE  DEFENDANT  IS  ORDERED  TO  BE
 DETAINED,  HE  OR  SHE  SHALL  BE BROUGHT BEFORE THE NEXT SESSION OF THE
 YOUTH PART. IF THE DEFENDANT IS NOT DETAINED, HE OR SHE SHALL BE ORDERED
 TO APPEAR AT THE NEXT SESSION OF THE YOUTH PART.
   2. IF THE DEFENDANT WAIVES A HEARING UPON THE  FELONY  COMPLAINT,  THE
 COURT  MUST ORDER THAT THE DEFENDANT BE HELD FOR THE ACTION OF THE GRAND
 JURY WITH RESPECT TO THE CHARGE  OR  CHARGES  CONTAINED  IN  THE  FELONY
 COMPLAINT.
   3.  IF  THERE BE A HEARING, THEN AT THE CONCLUSION OF THE HEARING, THE
 YOUTH PART COURT MUST DISPOSE OF THE FELONY COMPLAINT AS FOLLOWS:
   (A) IF THERE IS REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT COMMIT-
 TED A CRIME FOR WHICH A PERSON UNDER THE AGE OF  SIXTEEN  IS  CRIMINALLY
 RESPONSIBLE,  THE  COURT  MUST  ORDER THAT THE DEFENDANT BE HELD FOR THE
 ACTION OF A GRAND JURY; OR
   (B) IF THERE IS NOT REASONABLE CAUSE TO  BELIEVE  THAT  THE  DEFENDANT
 COMMITTED  A CRIME FOR WHICH A PERSON UNDER THE AGE OF SIXTEEN IS CRIMI-
 NALLY RESPONSIBLE BUT THERE IS REASONABLE  CAUSE  TO  BELIEVE  THAT  THE
 DEFENDANT  IS  A  "JUVENILE DELINQUENT" AS DEFINED IN SUBDIVISION ONE OF
 SECTION 301.2 OF THE FAMILY COURT ACT, THE COURT MUST SPECIFY THE ACT OR
 ACTS IT FOUND REASONABLE CAUSE TO BELIEVE THE DEFENDANT DID  AND  DIRECT
 THAT  THE  ACTION  BE REMOVED TO THE FAMILY COURT IN ACCORDANCE WITH THE
 PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS TITLE; OR
   (C) IF THERE IS NOT REASONABLE CAUSE TO  BELIEVE  THAT  THE  DEFENDANT
 COMMITTED  ANY CRIMINAL ACT, THE COURT MUST DISMISS THE FELONY COMPLAINT
 AND DISCHARGE THE DEFENDANT FROM CUSTODY IF HE IS IN CUSTODY, OR  IF  HE
 IS AT LIBERTY ON BAIL, IT MUST EXONERATE THE BAIL.
   4.  NOTWITHSTANDING  THE  PROVISIONS  OF SUBDIVISIONS TWO AND THREE OF
 THIS SECTION, THE COURT SHALL, AT THE REQUEST OF THE DISTRICT  ATTORNEY,
 ORDER  REMOVAL  OF  AN  ACTION AGAINST A JUVENILE OFFENDER TO THE FAMILY
 COURT PURSUANT TO THE PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF

 S. 2009--C                         212                        A. 3009--C
 
 THIS TITLE IF, UPON CONSIDERATION OF THE CRITERIA SPECIFIED IN  SUBDIVI-
 SION  TWO OF SECTION 722.22 OF THIS ARTICLE, IT IS DETERMINED THAT TO DO
 SO WOULD BE IN THE INTERESTS OF  JUSTICE.  WHERE,  HOWEVER,  THE  FELONY
 COMPLAINT CHARGES THE JUVENILE OFFENDER WITH MURDER IN THE SECOND DEGREE
 AS  DEFINED IN SECTION 125.25 OF THE PENAL LAW, RAPE IN THE FIRST DEGREE
 AS DEFINED IN SUBDIVISION ONE OF SECTION 130.35 OF THE PENAL LAW, CRIMI-
 NAL SEXUAL ACT IN THE FIRST DEGREE AS  DEFINED  IN  SUBDIVISION  ONE  OF
 SECTION  130.50 OF THE PENAL LAW, OR AN ARMED FELONY AS DEFINED IN PARA-
 GRAPH (A) OF SUBDIVISION FORTY-ONE OF SECTION 1.20 OF  THIS  CHAPTER,  A
 DETERMINATION  THAT SUCH ACTION BE REMOVED TO THE FAMILY COURT SHALL, IN
 ADDITION, BE BASED UPON A FINDING  OF  ONE  OR  MORE  OF  THE  FOLLOWING
 FACTORS: (I) MITIGATING CIRCUMSTANCES THAT BEAR DIRECTLY UPON THE MANNER
 IN  WHICH  THE  CRIME WAS COMMITTED; OR (II) WHERE THE DEFENDANT WAS NOT
 THE SOLE PARTICIPANT IN THE CRIME,  THE  DEFENDANT'S  PARTICIPATION  WAS
 RELATIVELY MINOR ALTHOUGH NOT SO MINOR AS TO CONSTITUTE A DEFENSE TO THE
 PROSECUTION; OR (III) POSSIBLE DEFICIENCIES IN PROOF OF THE CRIME.
   5.  NOTWITHSTANDING  THE PROVISIONS OF SUBDIVISION TWO, THREE, OR FOUR
 OF THIS SECTION, IF A CURRENTLY UNDETERMINED FELONY COMPLAINT AGAINST  A
 JUVENILE OFFENDER IS PENDING, AND THE DEFENDANT HAS NOT WAIVED A HEARING
 PURSUANT  TO  SUBDIVISION  TWO OF THIS SECTION AND A HEARING PURSUANT TO
 SUBDIVISION THREE OF THIS SECTION HAS NOT COMMENCED, THE  DEFENDANT  MAY
 MOVE  TO  REMOVE  THE  ACTION TO FAMILY COURT PURSUANT TO 722.22 OF THIS
 ARTICLE. THE PROCEDURAL RULES OF SUBDIVISIONS ONE  AND  TWO  OF  SECTION
 210.45  OF  THIS  CHAPTER  ARE  APPLICABLE  TO A MOTION PURSUANT TO THIS
 SUBDIVISION. UPON SUCH MOTION, THE COURT SHALL PROCEED AND DETERMINE THE
 MOTION AS PROVIDED IN SECTION 722.22 OF THIS ARTICLE; PROVIDED, HOWEVER,
 THAT THE EXCEPTION PROVISIONS OF PARAGRAPH (B)  OF  SUBDIVISION  ONE  OF
 SECTION 722.22 OF THIS ARTICLE SHALL NOT APPLY WHEN THERE IS NOT REASON-
 ABLE  CAUSE  TO BELIEVE THAT THE JUVENILE OFFENDER COMMITTED ONE OR MORE
 OF THE CRIMES ENUMERATED THEREIN, AND IN SUCH EVENT  THE  PROVISIONS  OF
 PARAGRAPH (A) THEREOF SHALL APPLY.
   6.  (A)  IF THE COURT ORDERS REMOVAL OF THE ACTION TO FAMILY COURT, IT
 SHALL STATE ON THE RECORD THE FACTOR OR FACTORS UPON WHICH ITS  DETERMI-
 NATION  IS  BASED,  AND  THE COURT SHALL GIVE ITS REASONS FOR REMOVAL IN
 DETAIL AND NOT IN CONCLUSORY TERMS.
   (B) THE DISTRICT ATTORNEY SHALL STATE UPON THE RECORD THE REASONS  FOR
 HIS  CONSENT  TO  REMOVAL  OF  THE ACTION TO THE FAMILY COURT WHERE SUCH
 CONSENT IS REQUIRED. THE REASONS SHALL BE STATED IN DETAIL  AND  NOT  IN
 CONCLUSORY TERMS.
   (C)  FOR THE PURPOSE OF MAKING A DETERMINATION PURSUANT TO SUBDIVISION
 FOUR OR FIVE OF THIS SECTION, THE COURT MAY  MAKE  SUCH  INQUIRY  AS  IT
 DEEMS  NECESSARY.  ANY  EVIDENCE  WHICH IS NOT LEGALLY PRIVILEGED MAY BE
 INTRODUCED. IF THE DEFENDANT TESTIFIES, HIS TESTIMONY MAY NOT BE  INTRO-
 DUCED AGAINST HIM IN ANY FUTURE PROCEEDING, EXCEPT TO IMPEACH HIS TESTI-
 MONY AT SUCH FUTURE PROCEEDING AS INCONSISTENT PRIOR TESTIMONY.
   (D)  WHERE  A MOTION FOR REMOVAL BY THE DEFENDANT PURSUANT TO SUBDIVI-
 SION FIVE OF THIS SECTION HAS BEEN DENIED, NO FURTHER MOTION PURSUANT TO
 THIS SECTION OR SECTION 722.22 OF THIS ARTICLE MAY BE MADE BY THE  JUVE-
 NILE OFFENDER WITH RESPECT TO THE SAME OFFENSE OR OFFENSES.
   (E)  EXCEPT  AS  PROVIDED  BY  PARAGRAPH (F) OF THIS SUBDIVISION, THIS
 SECTION SHALL NOT BE CONSTRUED TO LIMIT THE POWERS OF THE GRAND JURY.
   (F) WHERE A MOTION BY THE DEFENDANT PURSUANT TO  SUBDIVISION  FIVE  OF
 THIS  SECTION  HAS  BEEN  GRANTED, THERE SHALL BE NO FURTHER PROCEEDINGS
 AGAINST THE JUVENILE OFFENDER IN ANY LOCAL OR  SUPERIOR  CRIMINAL  COURT
 INCLUDING  THE  YOUTH  PART  OF  THE  SUPERIOR  COURT FOR THE OFFENSE OR
 OFFENSES WHICH WERE THE SUBJECT OF THE REMOVAL ORDER.

 S. 2009--C                         213                        A. 3009--C
 
 § 722.21 PROCEEDINGS UPON FELONY COMPLAINT; ADOLESCENT OFFENDER.
   1.  WHEN  AN ADOLESCENT OFFENDER IS ARRAIGNED BEFORE A YOUTH PART, THE
 PROVISIONS OF THIS SECTION SHALL APPLY. IF THE  YOUTH  PART  IS  NOT  IN
 SESSION,  THE  DEFENDANT  SHALL  BE  BROUGHT  BEFORE THE MOST ACCESSIBLE
 MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE SUPREME COURT  TO
 ACT  AS  A  YOUTH PART FOR THE PURPOSE OF MAKING A DETERMINATION WHETHER
 SUCH ADOLESCENT OFFENDER SHALL BE DETAINED. IF THE DEFENDANT IS  ORDERED
 TO  BE  DETAINED,  HE OR SHE SHALL BE BROUGHT BEFORE THE NEXT SESSION OF
 THE YOUTH PART. IF THE DEFENDANT IS NOT DETAINED, HE  OR  SHE  SHALL  BE
 ORDERED TO APPEAR AT THE NEXT SESSION OF THE YOUTH PART.
   2.  IF  THE  DEFENDANT WAIVES A HEARING UPON THE FELONY COMPLAINT, THE
 COURT MUST ORDER THAT THE DEFENDANT BE HELD FOR THE ACTION OF THE  GRAND
 JURY  WITH  RESPECT  TO  THE  CHARGE  OR CHARGES CONTAINED IN THE FELONY
 COMPLAINT.
   3. IF THERE BE A HEARING, THEN AT THE CONCLUSION OF THE  HEARING,  THE
 YOUTH PART COURT MUST DISPOSE OF THE FELONY COMPLAINT AS FOLLOWS:
   (A) IF THERE IS REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT COMMIT-
 TED  A  FELONY,  THE COURT MUST ORDER THAT THE DEFENDANT BE HELD FOR THE
 ACTION OF A GRAND JURY; OR
   (B) IF THERE IS NOT REASONABLE CAUSE TO  BELIEVE  THAT  THE  DEFENDANT
 COMMITTED  A  FELONY  BUT  THERE IS REASONABLE CAUSE TO BELIEVE THAT THE
 DEFENDANT IS A "JUVENILE DELINQUENT" AS DEFINED IN  SUBDIVISION  ONE  OF
 SECTION 301.2 OF THE FAMILY COURT ACT, THE COURT MUST SPECIFY THE ACT OR
 ACTS  IT  FOUND REASONABLE CAUSE TO BELIEVE THE DEFENDANT DID AND DIRECT
 THAT THE ACTION BE TRANSFERRED TO THE FAMILY COURT  IN  ACCORDANCE  WITH
 THE  PROVISIONS  OF  ARTICLE  SEVEN  HUNDRED  TWENTY-FIVE OF THIS TITLE,
 PROVIDED, HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  SECTION
 308.1  OF THE FAMILY COURT ACT SHALL APPLY TO ACTIONS TRANSFERRED PURSU-
 ANT TO THIS  SUBDIVISION  AND  SUCH  ACTIONS  SHALL  NOT  BE  CONSIDERED
 REMOVALS SUBJECT TO SUBDIVISION THIRTEEN OF SUCH SECTION 308.1; OR
   (C)  IF  THERE  IS  NOT REASONABLE CAUSE TO BELIEVE THAT THE DEFENDANT
 COMMITTED ANY CRIMINAL ACT, THE COURT MUST DISMISS THE FELONY  COMPLAINT
 AND  DISCHARGE  THE DEFENDANT FROM CUSTODY IF HE IS IN CUSTODY, OR IF HE
 IS AT LIBERTY ON BAIL, IT MUST EXONERATE THE BAIL.
   4. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS  TWO  AND  THREE  OF
 THIS SECTION, WHERE THE DEFENDANT IS CHARGED WITH A FELONY, OTHER THAN A
 CLASS  A  FELONY DEFINED OUTSIDE ARTICLE TWO HUNDRED TWENTY OF THE PENAL
 LAW, A VIOLENT FELONY DEFINED IN SECTION 70.02 OF THE  PENAL  LAW  OR  A
 FELONY  LISTED  IN  PARAGRAPH  ONE  OR  TWO  OF SUBDIVISION FORTY-TWO OF
 SECTION 1.20 OF THIS CHAPTER, EXCEPT AS PROVIDED  IN  PARAGRAPH  (C)  OF
 SUBDIVISION TWO OF SECTION 722.23 OF THIS ARTICLE, THE COURT SHALL, UPON
 NOTICE  FROM THE DISTRICT ATTORNEY THAT HE OR SHE WILL NOT FILE A MOTION
 TO PREVENT REMOVAL PURSUANT TO SECTION 722.23  OF  THIS  ARTICLE,  ORDER
 TRANSFER OF AN ACTION AGAINST AN ADOLESCENT OFFENDER TO THE FAMILY COURT
 PURSUANT  TO THE PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS
 TITLE, PROVIDED, HOWEVER, NOTWITHSTANDING ANY OTHER  PROVISION  OF  LAW,
 SECTION 308.1 OF THE FAMILY COURT ACT SHALL APPLY TO ACTIONS TRANSFERRED
 PURSUANT  TO  THIS  SUBDIVISION AND SUCH ACTIONS SHALL NOT BE CONSIDERED
 REMOVALS SUBJECT TO SUBDIVISION THIRTEEN OF SUCH SECTION 308.1.
   5. NOTWITHSTANDING SUBDIVISIONS TWO AND THREE OF THIS SECTION, AT  THE
 REQUEST  OF  THE  DISTRICT ATTORNEY, THE COURT SHALL ORDER REMOVAL OF AN
 ACTION AGAINST AN ADOLESCENT OFFENDER CHARGED WITH AN OFFENSE LISTED  IN
 PARAGRAPH  (A)  OF SUBDIVISION TWO OF SECTION 722.23 OF THIS ARTICLE, TO
 THE FAMILY COURT PURSUANT TO THE PROVISIONS  OF  ARTICLE  SEVEN  HUNDRED
 TWENTY-FIVE  OF THIS TITLE AND UPON CONSIDERATION OF THE CRITERIA SPECI-
 FIED IN SUBDIVISION TWO OF SECTION 722.22 OF THIS ARTICLE, IT IS  DETER-

 S. 2009--C                         214                        A. 3009--C
 
 MINED  THAT TO DO SO WOULD BE IN THE INTERESTS OF JUSTICE. WHERE, HOWEV-
 ER, THE FELONY COMPLAINT CHARGES THE ADOLESCENT OFFENDER WITH MURDER  IN
 THE SECOND DEGREE AS DEFINED IN SECTION 125.25 OF THE PENAL LAW, RAPE IN
 THE  FIRST DEGREE AS DEFINED IN SUBDIVISION ONE OF SECTION 130.35 OF THE
 PENAL LAW, CRIMINAL SEXUAL ACT IN THE FIRST DEGREE AS DEFINED IN  SUBDI-
 VISION  ONE  OF  SECTION  130.50 OF THE PENAL LAW, OR AN ARMED FELONY AS
 DEFINED IN PARAGRAPH (A) OF SUBDIVISION FORTY-ONE  OF  SECTION  1.20  OF
 THIS  CHAPTER, A DETERMINATION THAT SUCH ACTION BE REMOVED TO THE FAMILY
 COURT SHALL, IN ADDITION, BE BASED UPON A FINDING OF ONE OR MORE OF  THE
 FOLLOWING  FACTORS: (I) MITIGATING CIRCUMSTANCES THAT BEAR DIRECTLY UPON
 THE MANNER IN WHICH THE CRIME WAS COMMITTED; OR (II) WHERE THE DEFENDANT
 WAS NOT THE SOLE PARTICIPANT IN THE CRIME, THE DEFENDANT'S PARTICIPATION
 WAS RELATIVELY MINOR ALTHOUGH NOT SO MINOR AS TO CONSTITUTE A DEFENSE TO
 THE PROSECUTION; OR (III) POSSIBLE DEFICIENCIES IN PROOF OF THE CRIME.
   6. (A) IF THE COURT ORDERS REMOVAL  OF  THE  ACTION  TO  FAMILY  COURT
 PURSUANT  TO  SUBDIVISION  FIVE  OF  THIS SECTION, IT SHALL STATE ON THE
 RECORD THE FACTOR OR FACTORS UPON WHICH ITS DETERMINATION IS BASED,  AND
 THE  COURT  SHALL  GIVE  ITS  REASONS  FOR  REMOVAL IN DETAIL AND NOT IN
 CONCLUSORY TERMS.
   (B) THE DISTRICT ATTORNEY SHALL STATE UPON THE RECORD THE REASONS  FOR
 HIS  CONSENT  TO  REMOVAL  OF  THE ACTION TO THE FAMILY COURT WHERE SUCH
 CONSENT IS REQUIRED. THE REASONS SHALL BE STATED IN DETAIL  AND  NOT  IN
 CONCLUSORY TERMS.
   (C)  FOR THE PURPOSE OF MAKING A DETERMINATION PURSUANT TO SUBDIVISION
 FIVE THE COURT MAY MAKE SUCH INQUIRY AS IT DEEMS NECESSARY. ANY EVIDENCE
 WHICH IS NOT LEGALLY PRIVILEGED MAY  BE  INTRODUCED.  IF  THE  DEFENDANT
 TESTIFIES, HIS TESTIMONY MAY NOT BE INTRODUCED AGAINST HIM IN ANY FUTURE
 PROCEEDING, EXCEPT TO IMPEACH HIS TESTIMONY AT SUCH FUTURE PROCEEDING AS
 INCONSISTENT PRIOR TESTIMONY.
   (D)  EXCEPT  AS  PROVIDED  BY PARAGRAPH (E), THIS SECTION SHALL NOT BE
 CONSTRUED TO LIMIT THE POWERS OF THE GRAND JURY.
   (E) WHERE AN ACTION AGAINST A DEFENDANT HAS BEEN REMOVED TO THE FAMILY
 COURT PURSUANT TO THIS SECTION, THERE SHALL BE  NO  FURTHER  PROCEEDINGS
 AGAINST  THE ADOLESCENT OFFENDER IN ANY LOCAL OR SUPERIOR CRIMINAL COURT
 INCLUDING THE YOUTH PART OF  THE  SUPERIOR  COURT  FOR  THE  OFFENSE  OR
 OFFENSES WHICH WERE THE SUBJECT OF THE REMOVAL ORDER.
 § 722.22 MOTION TO REMOVE JUVENILE OFFENDER TO FAMILY COURT.
   1. AFTER A MOTION BY A JUVENILE OFFENDER, PURSUANT TO SUBDIVISION FIVE
 OF  SECTION  722.20  OF THIS ARTICLE, OR AFTER ARRAIGNMENT OF A JUVENILE
 OFFENDER UPON AN INDICTMENT, THE COURT MAY, ON MOTION OF ANY PARTY OR ON
 ITS OWN MOTION:
   (A) EXCEPT AS OTHERWISE PROVIDED BY PARAGRAPH (B) OF THIS SUBDIVISION,
 ORDER REMOVAL OF  THE  ACTION  TO  THE  FAMILY  COURT  PURSUANT  TO  THE
 PROVISIONS OF ARTICLE SEVEN HUNDRED TWENTY-FIVE OF THIS TITLE, IF, AFTER
 CONSIDERATION  OF  THE  FACTORS  SET  FORTH  IN  SUBDIVISION TWO OF THIS
 SECTION, THE COURT DETERMINES THAT TO DO SO WOULD BE IN THE INTERESTS OF
 JUSTICE; OR
   (B) WITH THE CONSENT OF THE DISTRICT ATTORNEY,  ORDER  REMOVAL  OF  AN
 ACTION  INVOLVING AN INDICTMENT CHARGING A JUVENILE OFFENDER WITH MURDER
 IN THE SECOND DEGREE AS DEFINED IN SECTION 125.25 OF THE PENAL LAW; RAPE
 IN THE FIRST DEGREE, AS DEFINED IN SUBDIVISION ONE OF SECTION 130.35  OF
 THE  PENAL  LAW;  CRIMINAL SEXUAL ACT IN THE FIRST DEGREE, AS DEFINED IN
 SUBDIVISION ONE OF SECTION 130.50 OF THE PENAL LAW; OR AN  ARMED  FELONY
 AS  DEFINED IN PARAGRAPH (A) OF SUBDIVISION FORTY-ONE OF SECTION 1.20 OF
 THIS CHAPTER, TO THE FAMILY COURT PURSUANT TO THE PROVISIONS OF  ARTICLE
 SEVEN  HUNDRED  TWENTY-FIVE OF THIS TITLE IF THE COURT FINDS ONE OR MORE

 S. 2009--C                         215                        A. 3009--C
 
 OF THE FOLLOWING FACTORS: (I) MITIGATING CIRCUMSTANCES THAT BEAR DIRECT-
 LY UPON THE MANNER IN WHICH THE CRIME  WAS  COMMITTED;  (II)  WHERE  THE
 DEFENDANT  WAS  NOT  THE  SOLE PARTICIPANT IN THE CRIME, THE DEFENDANT'S
 PARTICIPATION  WAS  RELATIVELY MINOR ALTHOUGH NOT SO MINOR AS TO CONSTI-
 TUTE A DEFENSE TO THE PROSECUTION; OR (III) POSSIBLE DEFICIENCIES IN THE
 PROOF OF THE CRIME, AND, AFTER CONSIDERATION OF THE FACTORS SET FORTH IN
 SUBDIVISION TWO OF THIS SECTION, THE COURT DETERMINED  THAT  REMOVAL  OF
 THE ACTION TO THE FAMILY COURT WOULD BE IN THE INTERESTS OF JUSTICE.
   2.  IN  MAKING  ITS  DETERMINATION PURSUANT TO SUBDIVISION ONE OF THIS
 SECTION THE COURT SHALL, TO THE EXTENT APPLICABLE, EXAMINE  INDIVIDUALLY
 AND COLLECTIVELY, THE FOLLOWING:
   (A) THE SERIOUSNESS AND CIRCUMSTANCES OF THE OFFENSE;
   (B) THE EXTENT OF HARM CAUSED BY THE OFFENSE;
   (C)  THE  EVIDENCE  OF  GUILT,  WHETHER  ADMISSIBLE OR INADMISSIBLE AT
 TRIAL;
   (D) THE HISTORY, CHARACTER AND CONDITION OF THE DEFENDANT;
   (E) THE PURPOSE AND EFFECT OF IMPOSING UPON THE DEFENDANT  A  SENTENCE
 AUTHORIZED FOR THE OFFENSE;
   (F)  THE  IMPACT  OF  A REMOVAL OF THE CASE TO THE FAMILY COURT ON THE
 SAFETY OR WELFARE OF THE COMMUNITY;
   (G) THE IMPACT OF A REMOVAL OF THE CASE TO THE FAMILY COURT  UPON  THE
 CONFIDENCE OF THE PUBLIC IN THE CRIMINAL JUSTICE SYSTEM;
   (H)  WHERE  THE  COURT  DEEMS  IT  APPROPRIATE,  THE  ATTITUDE  OF THE
 COMPLAINANT OR VICTIM WITH RESPECT TO THE MOTION; AND
   (I) ANY OTHER RELEVANT FACT INDICATING THAT A JUDGMENT  OF  CONVICTION
 IN THE CRIMINAL COURT WOULD SERVE NO USEFUL PURPOSE.
   3.  THE PROCEDURE FOR BRINGING ON A MOTION PURSUANT TO SUBDIVISION ONE
 OF THIS SECTION, SHALL ACCORD WITH THE PROCEDURE PRESCRIBED IN  SUBDIVI-
 SIONS ONE AND TWO OF SECTION 210.45 OF THIS CHAPTER. AFTER ALL PAPERS OF
 BOTH PARTIES HAVE BEEN FILED AND AFTER ALL DOCUMENTARY EVIDENCE, IF ANY,
 HAS  BEEN SUBMITTED, THE COURT MUST CONSIDER THE SAME FOR THE PURPOSE OF
 DETERMINING WHETHER THE MOTION IS  DETERMINABLE  ON  THE  MOTION  PAPERS
 SUBMITTED  AND,  IF NOT, MAY MAKE SUCH INQUIRY AS IT DEEMS NECESSARY FOR
 THE PURPOSE OF MAKING A DETERMINATION.
   4. FOR THE PURPOSE OF MAKING A DETERMINATION PURSUANT TO THIS SECTION,
 ANY EVIDENCE WHICH IS NOT LEGALLY PRIVILEGED MAY BE INTRODUCED.  IF  THE
 DEFENDANT  TESTIFIES, HIS TESTIMONY MAY NOT BE INTRODUCED AGAINST HIM IN
 ANY FUTURE PROCEEDING, EXCEPT TO IMPEACH HIS TESTIMONY  AT  SUCH  FUTURE
 PROCEEDING AS INCONSISTENT PRIOR TESTIMONY.
   5.  A.  IF  THE COURT ORDERS REMOVAL OF THE ACTION TO FAMILY COURT, IT
 SHALL STATE ON THE RECORD THE FACTOR OR FACTORS UPON WHICH ITS  DETERMI-
 NATION  IS  BASED,  AND, THE COURT SHALL GIVE ITS REASONS FOR REMOVAL IN
 DETAIL AND NOT IN CONCLUSORY TERMS.
   B. THE DISTRICT ATTORNEY SHALL STATE UPON THE RECORD THE  REASONS  FOR
 HIS  CONSENT  TO  REMOVAL OF THE ACTION TO THE FAMILY COURT. THE REASONS
 SHALL BE STATED IN DETAIL AND NOT IN CONCLUSORY TERMS.
 § 722.23 REMOVAL OF ADOLESCENT OFFENDERS TO FAMILY COURT.
   1. (A) FOLLOWING THE ARRAIGNMENT OF A DEFENDANT CHARGED WITH  A  CRIME
 COMMITTED  WHEN  HE OR SHE WAS SIXTEEN, OR COMMENCING OCTOBER FIRST, TWO
 THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE, OTHER THAN ANY CLASS A FELONY
 EXCEPT FOR THOSE DEFINED IN ARTICLE TWO HUNDRED TWENTY OF THE PENAL LAW,
 A VIOLENT FELONY DEFINED IN SECTION 70.02 OF THE PENAL LAW OR  A  FELONY
 LISTED  IN PARAGRAPH ONE OR TWO OF SUBDIVISION FORTY-TWO OF SECTION 1.20
 OF THIS CHAPTER, OR AN OFFENSE SET FORTH IN THE VEHICLE AND TRAFFIC LAW,
 THE COURT SHALL ORDER THE REMOVAL OF THE ACTION TO THE FAMILY  COURT  IN
 ACCORDANCE WITH THE APPLICABLE PROVISIONS OF ARTICLE SEVEN HUNDRED TWEN-

 S. 2009--C                         216                        A. 3009--C
 
 TY-FIVE  OF  THIS  TITLE  UNLESS,  WITHIN  THIRTY  CALENDAR DAYS OF SUCH
 ARRAIGNMENT, THE DISTRICT ATTORNEY MAKES A MOTION TO PREVENT REMOVAL  OF
 THE  ACTION  PURSUANT  TO  THIS  SUBDIVISION.  IF THE DEFENDANT FAILS TO
 REPORT  TO  THE  PROBATION  DEPARTMENT  AS DIRECTED, THE THIRTY DAY TIME
 PERIOD SHALL BE TOLLED UNTIL SUCH TIME AS  HE  OR  SHE  REPORTS  TO  THE
 PROBATION DEPARTMENT.
   (B)  A  MOTION  TO PREVENT REMOVAL OF AN ACTION IN YOUTH PART SHALL BE
 MADE IN WRITING AND UPON PROMPT NOTICE  TO  THE  DEFENDANT.  THE  MOTION
 SHALL CONTAIN ALLEGATIONS OF SWORN FACT BASED UPON PERSONAL KNOWLEDGE OF
 THE AFFIANT, AND SHALL INDICATE IF THE DISTRICT ATTORNEY IS REQUESTING A
 HEARING. THE MOTION SHALL BE NOTICED TO BE HEARD PROMPTLY.
   (C)  THE DEFENDANT SHALL BE GIVEN AN OPPORTUNITY TO REPLY. THE DEFEND-
 ANT SHALL BE GRANTED ANY REASONABLE REQUEST FOR A  DELAY.  EITHER  PARTY
 MAY  REQUEST  A  HEARING  ON  THE FACTS ALLEGED IN THE MOTION TO PREVENT
 REMOVAL OF THE ACTION. THE HEARING SHALL BE HELD EXPEDITIOUSLY.
   (D) THE COURT SHALL DENY THE MOTION TO PREVENT REMOVAL OF  THE  ACTION
 IN YOUTH PART UNLESS THE COURT MAKES A DETERMINATION UPON SUCH MOTION BY
 THE DISTRICT ATTORNEY THAT EXTRAORDINARY CIRCUMSTANCES EXIST THAT SHOULD
 PREVENT THE TRANSFER OF THE ACTION TO FAMILY COURT.
   (E)  THE  COURT SHALL MAKE A DETERMINATION IN WRITING OR ON THE RECORD
 WITHIN FIVE DAYS OF THE CONCLUSION OF THE HEARING OR SUBMISSION  BY  THE
 DEFENSE,  WHICHEVER  IS LATER. SUCH DETERMINATION SHALL INCLUDE FINDINGS
 OF FACT AND TO THE EXTENT PRACTICABLE CONCLUSIONS OF LAW.
   (F) FOR THE PURPOSES OF THIS SECTION, THERE  SHALL  BE  A  PRESUMPTION
 AGAINST  CUSTODY  AND  CASE PLANNING SERVICES SHALL BE MADE AVAILABLE TO
 THE DEFENDANT.
   (G) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, SECTION 308.1  OF  THE
 FAMILY COURT ACT SHALL APPLY TO ALL ACTIONS TRANSFERRED PURSUANT TO THIS
 SECTION  PROVIDED,  HOWEVER, SUCH CASES SHALL NOT BE CONSIDERED REMOVALS
 SUBJECT TO SUBDIVISION THIRTEEN OF SUCH SECTION 308.1.
   (H) NOTHING IN THIS SUBDIVISION SHALL PRECLUDE, AND A COURT MAY ORDER,
 THE REMOVAL OF AN ACTION TO FAMILY COURT  WHERE  ALL  PARTIES  AGREE  OR
 PURSUANT TO THIS CHAPTER.
   2.  (A)  UPON  THE  ARRAIGNMENT  OF  A  DEFENDANT CHARGED WITH A CRIME
 COMMITTED WHEN HE OR SHE WAS SIXTEEN OR, COMMENCING OCTOBER  FIRST,  TWO
 THOUSAND  NINETEEN,  SEVENTEEN  YEARS  OF AGE ON A CLASS A FELONY, OTHER
 THAN THOSE DEFINED IN ARTICLE 220 OF THE PENAL LAW, OR A VIOLENT  FELONY
 DEFINED  IN  SECTION 70.02 OF THE PENAL LAW, THE COURT SHALL SCHEDULE AN
 APPEARANCE NO LATER THAN SIX CALENDAR DAYS FROM SUCH ARRAIGNMENT FOR THE
 PURPOSE OF REVIEWING THE ACCUSATORY INSTRUMENT PURSUANT TO THIS SUBDIVI-
 SION.   THE COURT SHALL  NOTIFY  THE  DISTRICT  ATTORNEY  AND  DEFENDANT
 REGARDING THE PURPOSE OF SUCH APPEARANCE.
   (B)  UPON  SUCH  APPEARANCE,  THE  COURT  SHALL  REVIEW THE ACCUSATORY
 INSTRUMENT AND ANY OTHER RELEVANT FACTS FOR  THE  PURPOSE  OF  MAKING  A
 DETERMINATION  PURSUANT  TO  PARAGRAPH  (C)  OF  THIS  SUBDIVISION. BOTH
 PARTIES MAY BE HEARD AND SUBMIT INFORMATION  RELEVANT  TO  THE  DETERMI-
 NATION.
   (C)  THE  COURT  SHALL  ORDER THE ACTION TO PROCEED IN ACCORDANCE WITH
 SUBDIVISION ONE OF THIS SECTION UNLESS, AFTER REVIEWING THE  PAPERS  AND
 HEARING  FROM  THE  PARTIES,  THE  COURT  DETERMINES IN WRITING THAT THE
 DISTRICT ATTORNEY PROVED BY A PREPONDERANCE OF THE EVIDENCE ONE OR  MORE
 OF THE FOLLOWING AS SET FORTH IN THE ACCUSATORY INSTRUMENT:
   (I) THE DEFENDANT CAUSED SIGNIFICANT PHYSICAL INJURY TO A PERSON OTHER
 THAN A PARTICIPANT IN THE OFFENSE; OR
   (II) THE DEFENDANT DISPLAYED A FIREARM, SHOTGUN, RIFLE OR DEADLY WEAP-
 ON AS DEFINED IN THE PENAL LAW IN FURTHERANCE OF SUCH OFFENSE; OR

 S. 2009--C                         217                        A. 3009--C
 
   (III)  THE  DEFENDANT  UNLAWFULLY  ENGAGED IN SEXUAL INTERCOURSE, ORAL
 SEXUAL CONDUCT, ANAL SEXUAL CONDUCT OR  SEXUAL  CONTACT  AS  DEFINED  IN
 SECTION 130.00 OF THE PENAL LAW.
   (D)  WHERE  THE  COURT MAKES A DETERMINATION THAT THE ACTION SHALL NOT
 PROCEED IN ACCORDANCE WITH SUBDIVISION ONE OF THIS SECTION, SUCH  DETER-
 MINATION  SHALL  BE  MADE  IN WRITING OR ON THE RECORD AND SHALL INCLUDE
 FINDINGS OF FACT AND TO THE EXTENT PRACTICABLE CONCLUSIONS OF LAW.
   (E) NOTHING IN THIS SUBDIVISION SHALL  PRECLUDE,  AND  THE  COURT  MAY
 ORDER,  THE REMOVAL OF AN ACTION TO FAMILY COURT WHERE ALL PARTIES AGREE
 OR PURSUANT TO THIS CHAPTER.
   3. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IF AT ANY TIME ONE
 OR MORE CHARGES IN THE ACCUSATORY INSTRUMENT ARE REDUCED, SUCH THAT  THE
 ELEMENTS  OF THE HIGHEST REMAINING CHARGE WOULD BE REMOVABLE PURSUANT TO
 SUBDIVISIONS ONE OR TWO OF THIS SECTION, THEN THE COURT, SUA  SPONTE  OR
 IN  RESPONSE  TO  A  MOTION  PURSUANT TO SUBDIVISIONS ONE OR TWO OF THIS
 SECTION BY THE DEFENDANT, SHALL PROMPTLY NOTIFY THE PARTIES  AND  DIRECT
 THAT  THE  MATTER  PROCEED  IN  ACCORDANCE  WITH SUBDIVISION ONE OF THIS
 SECTION, PROVIDED, HOWEVER, THAT IN SUCH INSTANCE, THE DISTRICT ATTORNEY
 MUST FILE ANY MOTION TO PREVENT REMOVAL WITHIN THIRTY DAYS OF  EFFECTING
 OR RECEIVING NOTICE OF SUCH REDUCTION.
   4.  A  DEFENDANT  MAY WAIVE REVIEW OF THE ACCUSATORY INSTRUMENT BY THE
 COURT AND THE OPPORTUNITY FOR REMOVAL IN ACCORDANCE WITH  THIS  SECTION,
 PROVIDED  THAT SUCH WAIVER IS MADE BY THE DEFENDANT KNOWINGLY, VOLUNTAR-
 ILY AND IN OPEN COURT, IN THE PRESENCE OF AND WITH THE APPROVAL  OF  HIS
 OR  HER  COUNSEL AND THE COURT. AN EARLIER WAIVER SHALL NOT CONSTITUTE A
 WAIVER OF REVIEW AND THE OPPORTUNITY FOR REMOVAL UNDER THIS SECTION.
 § 722.24 APPLICABILITY OF CHAPTER TO ACTIONS AND MATTERS INVOLVING JUVE-
            NILE OFFENDERS OR ADOLESCENT OFFENDERS.
   EXCEPT WHERE INCONSISTENT WITH THIS ARTICLE, ALL  PROVISIONS  OF  THIS
 CHAPTER  SHALL  APPLY  TO  ALL CRIMINAL ACTIONS AND PROCEEDINGS, AND ALL
 APPEALS AND POST-JUDGMENT MOTIONS RELATING OR ATTACHED THERETO,  INVOLV-
 ING A JUVENILE OFFENDER OR ADOLESCENT OFFENDER.
   §  2. The opening paragraph and subdivisions 2 and 3 of section 725.05
 of the criminal procedure law, as added by chapter 481 of  the  laws  of
 1978, are amended to read as follows:
   When  a  [court]  YOUTH PART directs that an action or charge is to be
 removed to the family court the [court] YOUTH PART must issue  an  order
 of  removal  in  accordance  with  this section.   Such order must be as
 follows:
   2.  Where the direction is authorized pursuant  to  paragraph  (b)  of
 subdivision  three of [section 180.75] SECTIONS 722.20 OR 722.21 of this
 [chapter] TITLE, it must specify the act or  acts  it  found  reasonable
 cause to believe the defendant did.
   3.   Where the direction is authorized pursuant to subdivision four of
 [section 180.75] SECTION 722.20 OR  SECTION  722.21  of  this  [chapter]
 TITLE,  it  must  specify  the  act or acts it found reasonable cause to
 allege.
   § 3. Section 725.20 of the criminal procedure law, as added by chapter
 481 of the laws of 1978, subdivisions 1 and 2 as amended by chapter  411
 of the laws of 1979, is amended to read as follows:
 § 725.20  Record of certain actions removed.
   1.    The  provisions of this section shall apply in any case where an
 order of removal to the family court is entered pursuant to a  direction
 authorized  by  [subdivision  four of section 180.75 or section 210.43,]
 ARTICLE 722 OF THIS TITLE, or subparagraph (iii) of paragraph [(h)]  (G)

 S. 2009--C                         218                        A. 3009--C
 
 of subdivision five of section 220.10 of this chapter, or section 330.25
 of this chapter.
   2.  When such an action is removed the court that directed the removal
 must  cause  the following additional records to be filed with the clerk
 of the county court or in the city of New York with  the  clerk  of  the
 supreme  court of the county wherein the action was pending and with the
 division of criminal justice services:
   (a) A certified copy of the order of removal;
   (b) [Where the direction is one  authorized  by  subdivision  four  of
 section  180.75 of this chapter, a copy of the statement of the district
 attorney made pursuant to paragraph (b) of subdivision  six  of  section
 180.75 of this chapter;
   (c)    Where  the direction is authorized by section 180.75, a copy of
 the portion of the minutes containing the statement by the court  pursu-
 ant to paragraph (a) of subdivision six of such section 180.75;
   (d)]  Where  the  direction is one authorized by subparagraph (iii) of
 paragraph [(h)] (G) of subdivision five of  section  220.10  or  section
 330.25  of  this  chapter,  a copy of the minutes of the plea of guilty,
 including the minutes of the memorandum submitted by the district attor-
 ney and the court;
   [(e)  Where the direction is one  authorized  by  subdivision  one  of
 section  210.43  of  this chapter, a copy of that portion of the minutes
 containing the statement by the  court  pursuant  to  paragraph  (a)  of
 subdivision five of section 210.43;
   (f)   Where the direction is one authorized by paragraph (b) of subdi-
 vision one of section 210.43 of this chapter, a copy of that portion  of
 the  minutes  containing  the  statement  of  the district attorney made
 pursuant to paragraph (b) of subdivision five of section 210.43;] and
   [(g)] (C) In addition to the records specified  in  this  subdivision,
 such  further statement or submission of additional information pertain-
 ing to the proceeding in criminal court  in  accordance  with  standards
 established  by  the  commissioner  of  the division of criminal justice
 services, subject  to  the  provisions  of  subdivision  three  of  this
 section.
   3.  It shall be the duty of said clerk to maintain a separate file for
 copies  of  orders  and  minutes filed pursuant to this section.    Upon
 receipt of such orders and minutes the clerk must promptly  delete  such
 portions  as would identify the defendant, but the clerk shall neverthe-
 less maintain a separate confidential system to  enable  correlation  of
 the  documents  so  filed  with identification of the defendant.   After
 making such deletions the orders and minutes shall be placed within  the
 file  and  must be available for public inspection.  Information permit-
 ting correlation of any such record with the identity of  any  defendant
 shall  not  be  divulged to any person except upon order of a justice of
 the supreme court based upon a finding that the public interest  or  the
 interests  of  justice  warrant  disclosure  in a particular cause for a
 particular case or for a particular purpose or use.
   § 4. The article heading of article 100 of the criminal procedure  law
 is amended to read as follows:
                      COMMENCEMENT OF ACTION IN LOCAL
         CRIMINAL COURT OR YOUTH PART OF A SUPERIOR COURT--[LOCAL
                  CRIMINAL COURT] ACCUSATORY INSTRUMENTS
   §  5. The first undesignated paragraph of section 100.05 of the crimi-
 nal procedure law is amended to read as follows:
   A criminal action is commenced by the filing of an accusatory  instru-
 ment  with  a  criminal court, OR, IN THE CASE OF A JUVENILE OFFENDER OR

 S. 2009--C                         219                        A. 3009--C
 
 ADOLESCENT OFFENDER, OTHER THAN AN ADOLESCENT OFFENDER CHARGED WITH ONLY
 A VIOLATION OR TRAFFIC INFRACTION, THE YOUTH PART OF THE SUPERIOR COURT,
 and if more than one such instrument is filed in the course of the  same
 criminal  action,  such  action commences when the first of such instru-
 ments is filed.   The only  way  in  which  a  criminal  action  can  be
 commenced  in  a  superior court, OTHER THAN A CRIMINAL ACTION AGAINST A
 JUVENILE OFFENDER OR ADOLESCENT OFFENDER is by the filing therewith by a
 grand jury of an indictment against a defendant who has never been  held
 by a local criminal court for the action of such grand jury with respect
 to  any  charge  contained  in  such indictment.   Otherwise, a criminal
 action can be commenced only in a local criminal court,  by  the  filing
 therewith of a local criminal court accusatory instrument, namely:
   §  6.  The  section heading and subdivision 5 of section 100.10 of the
 criminal procedure law are amended to read as follows:
   Local criminal court AND YOUTH PART OF THE SUPERIOR  COURT  accusatory
 instruments; definitions thereof.
   5.  A "felony complaint" is a verified written accusation by a person,
 filed  with a local criminal court, OR YOUTH PART OF THE SUPERIOR COURT,
 charging one or more other persons with the commission of  one  or  more
 felonies.    It  serves  as  a  basis for the commencement of a criminal
 action, but not as a basis for prosecution thereof.
   § 7. The section heading of section 100.40 of the  criminal  procedure
 law is amended to read as follows:
   Local  criminal  court AND YOUTH PART OF THE SUPERIOR COURT accusatory
 instruments; sufficiency on face.
   § 8. The criminal procedure law is amended by  adding  a  new  section
 100.60 to read as follows:
 §  100.60  YOUTH  PART  OF THE SUPERIOR COURT ACCUSATORY INSTRUMENTS; IN
            WHAT COURTS FILED.
   ANY YOUTH PART OF THE SUPERIOR  COURT  ACCUSATORY  INSTRUMENT  MAY  BE
 FILED  WITH  THE YOUTH PART OF THE SUPERIOR COURT OF A PARTICULAR COUNTY
 WHEN AN OFFENSE CHARGED THEREIN WAS ALLEGEDLY COMMITTED IN  SUCH  COUNTY
 OR THAT PART THEREOF OVER WHICH SUCH COURT HAS JURISDICTION.
   §  9. The article heading of article 110 of the criminal procedure law
 is amended to read as follows:
                     REQUIRING DEFENDANT'S APPEARANCE
          IN LOCAL CRIMINAL COURT OR YOUTH PART OF SUPERIOR COURT
                              FOR ARRAIGNMENT
   § 10. Section 110.10 of the criminal procedure law is amended to  read
 as follows:
 §  110.10  Methods of requiring defendant's appearance in local criminal
              court OR YOUTH PART OF THE SUPERIOR COURT for  arraignment;
              in general.
   1.  After  a  criminal  action  has been commenced in a local criminal
 court OR YOUTH PART OF THE SUPERIOR COURT by the filing of an accusatory
 instrument therewith, a defendant who has  not  been  arraigned  in  the
 action and has not come under the control of the court may under certain
 circumstances  be  compelled  or required to appear for arraignment upon
 such accusatory instrument by:
   (a)  The issuance and execution of a warrant of arrest, as provided in
 article one hundred twenty; or
   (b)  The issuance and service upon him of a summons,  as  provided  in
 article one hundred thirty; or
   (c)   Procedures provided in articles five hundred sixty, five hundred
 seventy, five hundred eighty, five hundred ninety and  six  hundred  for

 S. 2009--C                         220                        A. 3009--C
 
 securing  attendance  of  defendants  in criminal actions who are not at
 liberty within the state.
   2.  Although no criminal action against a person has been commenced in
 any  court,  he may under certain circumstances be compelled or required
 to appear in a local criminal court OR YOUTH PART OF  A  SUPERIOR  COURT
 for  arraignment  upon an accusatory instrument to be filed therewith at
 or before the time of his appearance by:
   (a)  An arrest made without a warrant,  as  provided  in  article  one
 hundred forty; or
   (b)    The  issuance  and service upon him of an appearance ticket, as
 provided in article one hundred fifty.
   § 11. Section 110.20 of the criminal  procedure  law,  as  amended  by
 chapter 843 of the laws of 1980, is amended to read as follows:
 § 110.20  Local criminal court OR YOUTH PART OF THE SUPERIOR COURT accu-
              satory instruments; notice thereof to district attorney.
   When  a  criminal action in which a crime is charged is commenced in a
 local criminal court, OR YOUTH PART OF THE SUPERIOR COURT other than the
 criminal court of the city of New York, a copy of the accusatory instru-
 ment shall be promptly transmitted to the appropriate district  attorney
 upon  or  prior  to  the  arraignment of the defendant on the accusatory
 instrument.  If a police officer or a peace officer is  the  complainant
 or  the filer of a simplified information, or has arrested the defendant
 or brought him before the local criminal court  OR  YOUTH  PART  OF  THE
 SUPERIOR  COURT on behalf of an arresting person pursuant to subdivision
 one of section 140.20, such officer or his  agency  shall  transmit  the
 copy  of the accusatory instrument to the appropriate district attorney.
 In all other cases, the clerk of the court in  which  the  defendant  is
 arraigned shall so transmit it.
   §  12. The opening paragraph of subdivision 1 of section 120.20 of the
 criminal procedure law, as amended by chapter 506 of the laws  of  2000,
 is amended to read as follows:
   When a criminal action has been commenced in a local criminal court OR
 YOUTH PART OF THE SUPERIOR COURT by the filing therewith of an accusato-
 ry  instrument,  other  than a simplified traffic information, against a
 defendant who has not been arraigned upon such accusatory instrument and
 has not come under the control of the court with respect thereto:
   § 13. Section 120.30 of the criminal procedure law is amended to  read
 as follows:
 §  120.30  Warrant of arrest; by what courts issuable and in what courts
              returnable.
   1.  A warrant of arrest may be issued only by the local criminal court
 OR YOUTH PART OF THE SUPERIOR COURT with which the underlying accusatory
 instrument has been filed, and it may be made returnable in such issuing
 court only.
   2.  The particular local criminal court or courts OR YOUTH PART OF THE
 SUPERIOR COURT with which any particular local criminal court  OR  YOUTH
 PART  OF  THE  SUPERIOR COURT accusatory instrument may be filed for the
 purpose of obtaining a warrant of arrest are determined,  generally,  by
 the provisions of section 100.55 OR 100.60 OF THIS TITLE. If, however, a
 particular  accusatory instrument may pursuant to said section 100.55 be
 filed with a particular town court and such town court is not  available
 at  the  time  such  instrument  is  sought  to  be  filed and a warrant
 obtained, such accusatory instrument may be filed with the town court of
 any adjoining town of the same county.  If such instrument may be  filed
 pursuant to said section 100.55 with a particular village court and such
 village  court  is  not  available at the time, it may be filed with the

 S. 2009--C                         221                        A. 3009--C
 
 town court of the town embracing such village, or if such town court  is
 not  available  either, with the town court of any adjoining town of the
 same county.
   §  14.  Section  120.55  of  the criminal procedure law, as amended by
 section 71 of subpart B of part C of chapter 62 of the laws of 2011,  is
 amended to read as follows:
 § 120.55   Warrant of arrest; defendant under parole or probation super-
              vision.
   If the defendant named within a warrant of arrest issued  by  a  local
 criminal  court  OR  YOUTH  PART  OF  THE SUPERIOR COURT pursuant to the
 provisions of this article, or by a superior court  issued  pursuant  to
 subdivision three of section 210.10 of this chapter, is under the super-
 vision  of the state department of corrections and community supervision
 or a local or state probation department, then a warrant for his or  her
 arrest  may  be  executed by a parole officer or probation officer, when
 authorized by his or her probation director, within his or her geograph-
 ical area of employment.  The execution of the warrant by a parole offi-
 cer or probation officer shall be upon the same conditions and conducted
 in the same manner as provided for execution of a warrant  by  a  police
 officer.
   § 15. Subdivision 1 of section 120.70 of the criminal procedure law is
 amended to read as follows:
   1.    A  warrant of arrest issued by a district court, by the New York
 City criminal court, THE YOUTH PART OF A SUPERIOR COURT or by a superior
 court judge sitting as a local criminal court may be  executed  anywhere
 in the state.
   § 16. Subdivisions 1, 6 and 7 of section 120.90 of the criminal proce-
 dure  law,  subdivision 1 as amended by chapter 492 of the laws of 2016,
 subdivisions 6 and 7 as amended by chapter 424 of the laws of 1998,  are
 amended and a new subdivision 5-a is added to read as follows:
   1. Upon arresting a defendant for any offense pursuant to a warrant of
 arrest  in  the  county  in  which  the  warrant is returnable or in any
 adjoining county, or upon so arresting him or her for a  felony  in  any
 other  county, a police officer, if he or she be one to whom the warrant
 is addressed, must without unnecessary delay bring the defendant  before
 the  local  criminal  court OR YOUTH PART OF THE SUPERIOR COURT in which
 such warrant is returnable, provided that, where a local criminal  court
 OR  YOUTH  PART OF THE SUPERIOR COURT in the county in which the warrant
 is returnable hereunder  is  operating  an  off-hours  arraignment  part
 designated  in  accordance  with  paragraph  (w)  of  subdivision one of
 section two hundred twelve of the judiciary law at the time  of  defend-
 ant's  return,  such  police officer may bring the defendant before such
 local criminal court OR YOUTH PART OF THE SUPERIOR COURT.
   5-A. WHENEVER A POLICE OFFICER IS REQUIRED, PURSUANT TO THIS  SECTION,
 TO  BRING  AN ARRESTED DEFENDANT BEFORE A YOUTH PART OF A SUPERIOR COURT
 IN WHICH A WARRANT OF ARREST IS RETURNABLE, AND IF SUCH COURT IS NOT  IN
 SESSION, SUCH OFFICER MUST BRING SUCH DEFENDANT BEFORE THE MOST ACCESSI-
 BLE MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE SUPREME COURT
 IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH PART.
   6.   Before bringing a defendant arrested pursuant to a warrant before
 the local criminal court OR YOUTH PART OF A SUPERIOR COURT in which such
 warrant is returnable, a police officer must without  unnecessary  delay
 perform  all fingerprinting and other preliminary police duties required
 in the particular case. In any  case  in  which  the  defendant  is  not
 brought  by a police officer before such court but, following his arrest
 in another county for an offense specified in subdivision one of section

 S. 2009--C                         222                        A. 3009--C
 
 160.10, is released by a local criminal court of such  other  county  on
 his  own  recognizance or on bail for his appearance on a specified date
 before the local criminal court before which the warrant is  returnable,
 the  latter  court  must,  upon  arraignment of the defendant before it,
 direct that he be fingerprinted by the appropriate  officer  or  agency,
 and  that he appear at an appropriate designated time and place for such
 purpose.
   7.  Upon arresting a juvenile offender  OR  ADOLESCENT  OFFENDER,  the
 police  officer  shall  immediately  notify  the  parent or other person
 legally responsible for his care or the person with  whom  he  is  domi-
 ciled,  that  the  juvenile  offender  OR  ADOLESCENT  OFFENDER has been
 arrested, and the location of the facility where he is being detained.
   § 17. Subdivision 1 of section 130.10 of the criminal  procedure  law,
 as  amended  by  chapter  446 of the laws of 1993, is amended to read as
 follows:
   1. A summons is a process issued by a local criminal court directing a
 defendant designated in an information, a  prosecutor's  information,  a
 felony  complaint or a misdemeanor complaint filed with such court, OR A
 YOUTH PART OF A SUPERIOR COURT DIRECTING A  DEFENDANT  DESIGNATED  IN  A
 FELONY  COMPLAINT,  or  by a superior court directing a defendant desig-
 nated in an indictment filed with such court, to appear before it  at  a
 designated  future  time  in connection with such accusatory instrument.
 The sole function of a summons is to achieve a defendant's court appear-
 ance in a criminal action for the purpose of arraignment upon the  accu-
 satory instrument by which such action was commenced.
   §  18.  Section  130.30  of  the criminal procedure law, as amended by
 chapter 506 of the laws of 2000, is amended to read as follows:
 § 130.30 Summons; when issuable.
   A local criminal court OR YOUTH PART OF THE SUPERIOR COURT may issue a
 summons in any case in which, pursuant to section 120.20, it is  author-
 ized  to  issue  a  warrant  of  arrest  based  upon  an  information, a
 prosecutor's information, a felony complaint or a misdemeanor complaint.
 If such  information,  prosecutor's  information,  felony  complaint  or
 misdemeanor  complaint  is  not  sufficient on its face as prescribed in
 section 100.40, and if the court is satisfied that on the basis  of  the
 available  facts  or evidence it would be impossible to draw and file an
 authorized accusatory instrument that is sufficient  on  its  face,  the
 court must dismiss the accusatory instrument. A superior court may issue
 a  summons  in  any  case  in  which,  pursuant to section 210.10, it is
 authorized to issue a warrant of arrest based upon an indictment.
   § 19. Section 140.20 of the  criminal  procedure  law  is  amended  by
 adding a new subdivision 8 to read as follows:
   8.  IF  THE  ARREST  IS FOR A JUVENILE OFFENDER OR ADOLESCENT OFFENDER
 OTHER THAN AN ARREST FOR A  VIOLATION  OR  A  TRAFFIC  INFRACTION,  SUCH
 OFFENDER  SHALL  BE BROUGHT BEFORE THE YOUTH PART OF THE SUPERIOR COURT.
 IF THE YOUTH PART IS NOT IN SESSION,  SUCH  OFFENDER  SHALL  BE  BROUGHT
 BEFORE  THE MOST ACCESSIBLE MAGISTRATE DESIGNATED BY THE APPELLATE DIVI-
 SION OF THE SUPREME COURT IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH
 PART.
   § 20. Subdivision 6 of section 140.20 of the criminal  procedure  law,
 as  added  by  chapter  411  of  the laws of 1979, is amended to read as
 follows:
   6. Upon arresting a juvenile offender OR A PERSON SIXTEEN OR  COMMENC-
 ING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE without
 a  warrant,  the  police  officer shall immediately notify the parent or
 other person legally responsible for his OR HER care or the person  with

 S. 2009--C                         223                        A. 3009--C

 whom he OR SHE is domiciled, that [the juvenile] SUCH offender OR PERSON
 has  been  arrested, and the location of the facility where he OR SHE is
 being detained. IF THE OFFICER DETERMINES THAT IT IS NECESSARY TO  QUES-
 TION  A  JUVENILE  OFFENDER OR SUCH PERSON, THE OFFICER MUST TAKE HIM OR
 HER TO A FACILITY DESIGNATED BY THE CHIEF ADMINISTRATOR OF THE COURTS AS
 A SUITABLE PLACE FOR THE QUESTIONING OF CHILDREN OR, UPON THE CONSENT OF
 A PARENT OR OTHER PERSON LEGALLY RESPONSIBLE FOR THE CARE OF  THE  JUVE-
 NILE  OR  SUCH PERSON, TO HIS OR HER RESIDENCE AND THERE QUESTION HIM OR
 HER FOR A REASONABLE PERIOD OF TIME. A JUVENILE OR SUCH PERSON SHALL NOT
 BE QUESTIONED PURSUANT TO THIS SECTION UNLESS HE OR  SHE  AND  A  PERSON
 REQUIRED  TO  BE NOTIFIED PURSUANT TO THIS SUBDIVISION, IF PRESENT, HAVE
 BEEN ADVISED:
   (A) OF THE JUVENILE  OFFENDER'S  OR  SUCH  PERSON'S  RIGHT  TO  REMAIN
 SILENT;
   (B)  THAT  THE STATEMENTS MADE BY HIM OR HER MAY BE USED IN A COURT OF
 LAW;
   (C) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PRESENT AT SUCH  QUESTION-
 ING; AND
   (D)  OF  HIS  OR HER RIGHT TO HAVE AN ATTORNEY PROVIDED FOR HIM OR HER
 WITHOUT CHARGE IF HE OR SHE IS UNABLE TO AFFORD COUNSEL.
   IN DETERMINING THE SUITABILITY  OF  QUESTIONING  AND  DETERMINING  THE
 REASONABLE  PERIOD  OF  TIME FOR QUESTIONING SUCH A JUVENILE OFFENDER OR
 PERSON, HIS OR HER AGE, THE PRESENCE OR ABSENCE OF HIS OR HER PARENTS OR
 OTHER PERSONS LEGALLY RESPONSIBLE FOR HIS OR HER CARE  AND  NOTIFICATION
 PURSUANT  TO THIS SUBDIVISION SHALL BE INCLUDED AMONG RELEVANT CONSIDER-
 ATIONS.
   § 21. Subdivision 2 of section 140.27 of the criminal  procedure  law,
 as  amended  by  chapter  843 of the laws of 1980, is amended to read as
 follows:
   2.  Upon arresting a person without a warrant, a peace officer, except
 as otherwise provided in subdivision  three  OR  THREE-A,  must  without
 unnecessary  delay  bring  him or cause him to be brought before a local
 criminal court, as provided in section 100.55  and  subdivision  one  of
 section  140.20,  and must without unnecessary delay file or cause to be
 filed therewith an appropriate accusatory instrument.   If  the  offense
 which is the subject of the arrest is one of those specified in subdivi-
 sion  one  of  section 160.10, the arrested person must be fingerprinted
 and photographed as therein provided.  In order to execute the  required
 post-arrest  functions,  such  arresting  peace officer may perform such
 functions himself or he may enlist the aid of a police officer  for  the
 performance thereof in the manner provided in subdivision one of section
 140.20.
   §  22.  Section  140.27  of  the  criminal procedure law is amended by
 adding a new subdivision 3-a to read as follows:
   3-A. IF THE ARREST IS FOR A JUVENILE OFFENDER OR  ADOLESCENT  OFFENDER
 OTHER  THAN AN ARREST FOR VIOLATIONS OR TRAFFIC INFRACTIONS, SUCH OFFEN-
 DER SHALL BE BROUGHT BEFORE THE YOUTH PART OF THE SUPERIOR COURT. IF THE
 YOUTH PART IS NOT IN SESSION, SUCH OFFENDER SHALL BE BROUGHT BEFORE  THE
 MOST  ACCESSIBLE  MAGISTRATE DESIGNATED BY THE APPELLATE DIVISION OF THE
 SUPREME COURT IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH PART.
   § 23. Subdivision 5 of section 140.27 of the criminal  procedure  law,
 as  added  by  chapter  411  of  the laws of 1979, is amended to read as
 follows:
   5.  Upon arresting a juvenile offender OR A PERSON SIXTEEN OR COMMENC-
 ING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN YEARS OF AGE without
 a warrant, the peace officer shall  immediately  notify  the  parent  or

 S. 2009--C                         224                        A. 3009--C
 
 other  person legally responsible for his OR HER care or the person with
 whom he OR SHE is domiciled, that [the juvenile] SUCH offender OR PERSON
 has been arrested, and the location of the facility where he OR  SHE  is
 being detained.  IF THE OFFICER DETERMINES THAT IT IS NECESSARY TO QUES-
 TION  A  JUVENILE  OFFENDER OR SUCH PERSON, THE OFFICER MUST TAKE HIM OR
 HER TO A FACILITY DESIGNATED BY THE CHIEF ADMINISTRATOR OF THE COURTS AS
 A SUITABLE PLACE FOR THE QUESTIONING OF CHILDREN OR, UPON THE CONSENT OF
 A PARENT OR OTHER PERSON LEGALLY RESPONSIBLE FOR THE CARE OF A  JUVENILE
 OFFENDER  OR SUCH PERSON, TO HIS OR HER RESIDENCE AND THERE QUESTION HIM
 OR HER FOR A REASONABLE PERIOD OF TIME.  A  JUVENILE  OFFENDER  OR  SUCH
 PERSON SHALL NOT BE QUESTIONED PURSUANT TO THIS SECTION UNLESS THE JUVE-
 NILE OFFENDER OR SUCH PERSON AND A PERSON REQUIRED TO BE NOTIFIED PURSU-
 ANT TO THIS SUBDIVISION, IF PRESENT, HAVE BEEN ADVISED:
   (A) OF HIS OR HER RIGHT TO REMAIN SILENT;
   (B)  THAT  THE STATEMENTS MADE BY THE JUVENILE OFFENDER OR SUCH PERSON
 MAY BE USED IN A COURT OF LAW;
   (C) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PRESENT AT SUCH  QUESTION-
 ING; AND
   (D)  OF  HIS  OR HER RIGHT TO HAVE AN ATTORNEY PROVIDED FOR HIM OR HER
 WITHOUT CHARGE IF HE OR SHE IS UNABLE TO AFFORD COUNSEL.
   IN DETERMINING THE SUITABILITY  OF  QUESTIONING  AND  DETERMINING  THE
 REASONABLE  PERIOD  OF  TIME FOR QUESTIONING SUCH A JUVENILE OFFENDER OR
 SUCH PERSON, HIS OR HER AGE, THE PRESENCE  OR  ABSENCE  OF  HIS  OR  HER
 PARENTS  OR  OTHER  PERSONS  LEGALLY RESPONSIBLE FOR HIS OR HER CARE AND
 NOTIFICATION PURSUANT TO THIS SUBDIVISION SHALL BE INCLUDED AMONG  RELE-
 VANT CONSIDERATIONS.
   §  24.  Subdivision 5 of section 140.40 of the criminal procedure law,
 as added by chapter 411 of the laws of  1979,  is  amended  to  read  as
 follows:
   5.    If  a  police  officer  takes an arrested juvenile offender OR A
 PERSON SIXTEEN OR  COMMENCING  OCTOBER  FIRST,  TWO  THOSUAND  NINETEEN,
 SEVENTEEN YEARS OF AGE into custody, the police officer shall immediate-
 ly  notify the parent or other person legally responsible for his OR HER
 care or the person with whom he OR SHE is domiciled, that [the juvenile]
 SUCH offender OR PERSON has been  arrested,  and  the  location  of  the
 facility  where  he OR SHE is being detained.  IF THE OFFICER DETERMINES
 THAT IT IS NECESSARY TO QUESTION A JUVENILE OFFENDER OR SUCH PERSON  THE
 OFFICER  MUST  TAKE  HIM  OR  HER  TO A FACILITY DESIGNATED BY THE CHIEF
 ADMINISTRATOR OF THE COURTS AS A SUITABLE PLACE FOR THE  QUESTIONING  OF
 CHILDREN  OR,  UPON  THE  CONSENT  OF  A  PARENT OR OTHER PERSON LEGALLY
 RESPONSIBLE FOR THE CARE OF THE JUVENILE OFFENDER OR SUCH PERSON, TO HIS
 OR HER RESIDENCE AND THERE QUESTION HIM OR HER FOR A  REASONABLE  PERIOD
 OF  TIME.  A  JUVENILE  OFFENDER  OR SUCH PERSON SHALL NOT BE QUESTIONED
 PURSUANT TO THIS SECTION UNLESS HE OR SHE AND A PERSON  REQUIRED  TO  BE
 NOTIFIED PURSUANT TO THIS SUBDIVISION, IF PRESENT, HAVE BEEN ADVISED:
   (A) OF HIS OR HER RIGHT TO REMAIN SILENT;
   (B)  THAT  THE STATEMENTS MADE BY THE JUVENILE OFFENDER OR SUCH PERSON
 MAY BE USED IN A COURT OF LAW;
   (C) OF HIS OR HER RIGHT TO HAVE AN ATTORNEY PRESENT AT SUCH  QUESTION-
 ING; AND
   (D)  OF  HIS  OR HER RIGHT TO HAVE AN ATTORNEY PROVIDED FOR HIM OR HER
 WITHOUT CHARGE IF HE OR SHE IS UNABLE TO AFFORD COUNSEL.
   IN DETERMINING THE SUITABILITY  OF  QUESTIONING  AND  DETERMINING  THE
 REASONABLE  PERIOD  OF  TIME FOR QUESTIONING SUCH A JUVENILE OFFENDER OR
 SUCH PERSON, HIS OR HER AGE, THE PRESENCE  OR  ABSENCE  OF  HIS  OR  HER
 PARENTS  OR  OTHER  PERSONS  LEGALLY RESPONSIBLE FOR HIS OR HER CARE AND

 S. 2009--C                         225                        A. 3009--C
 
 NOTIFICATION PURSUANT TO THIS SUBDIVISION SHALL BE INCLUDED AMONG  RELE-
 VANT CONSIDERATIONS.
   §  25. Subdivisions 2, 3, 4, 5 and 6 of section 180.75 of the criminal
 procedure law are REPEALED.
   § 26. Subdivision 1 of section 180.75 of the criminal  procedure  law,
 as  added  by  chapter  481  of  the laws of 1978, is amended to read as
 follows:
   1. When a juvenile offender OR ADOLESCENT OFFENDER is arraigned before
 [a local criminal court] THE YOUTH PART OF A SUPERIOR COURT OR THE  MOST
 ACCESSIBLE  MAGISTRATE  DESIGNATED  BY  THE  APPELLATE  DIVISION  OF THE
 SUPREME COURT IN THE APPLICABLE DEPARTMENT TO ACT AS A YOUTH  PART,  the
 provisions  of  [this  section] ARTICLE SEVEN HUNDRED TWENTY-TWO OF THIS
 CHAPTER shall apply in lieu of the provisions of sections 180.30, 180.50
 and 180.70 of this article.
   § 27. The opening paragraph of section 180.80 of the  criminal  proce-
 dure  law,  as amended by chapter 556 of the laws of 1982, is amended to
 read as follows:
   Upon application of a defendant against whom a  felony  complaint  has
 been  filed  with a local criminal court OR THE YOUTH PART OF A SUPERIOR
 COURT, and who, since the time of his arrest or subsequent thereto,  has
 been  held  in custody pending disposition of such felony complaint, and
 who has been confined in such custody for a  period  of  more  than  one
 hundred  twenty  hours or, in the event that a Saturday, Sunday or legal
 holiday occurs during such custody, one hundred forty-four hours,  with-
 out  either  a  disposition of the felony complaint or commencement of a
 hearing thereon, the [local criminal] court must release him on his  own
 recognizance unless:
   §  27-a.  Section  190.80  of  the criminal procedure law, the opening
 paragraph as amended by chapter 411 of the laws of 1979, is  amended  to
 read as follows:
 § 190.80 Grand  jury;  release of defendant upon failure of timely grand
            jury action.
   Upon application of a defendant who on the basis of a felony complaint
 has been held by a local criminal court for the action of a grand  jury,
 and  who,  at  the  time  of  such order or subsequent thereto, has been
 committed to the custody of the sheriff pending such grand jury  action,
 and  who  has  been  confined  in such custody for a period of more than
 forty-five days, or, in the case of a juvenile  offender  OR  ADOLESCENT
 OFFENDER,  thirty  days, without the occurrence of any grand jury action
 or disposition pursuant to subdivision one,  two  or  three  of  section
 190.60,  the  superior  court  by  which such grand jury was or is to be
 impaneled must release him on his own recognizance unless:
   (a) The lack of  a  grand  jury  disposition  during  such  period  of
 confinement  was due to the defendant's request, action or condition, or
 occurred with his consent; or
   (b) The people have shown good cause why such order of release  should
 not  be  issued. Such good cause must consist of some compelling fact or
 circumstance which precluded grand jury  action  within  the  prescribed
 period or rendered the same against the interest of justice.
   § 28. Subdivision (b) of section 190.71 of the criminal procedure law,
 as  added  by  chapter  481  of  the laws of 1978, is amended to read as
 follows:
   (b) A grand jury may vote to file a request to remove a charge to  the
 family  court  if it finds that a person [thirteen, fourteen or fifteen]
 SIXTEEN, OR COMMENCING OCTOBER FIRST, TWO THOUSAND  NINETEEN,  SEVENTEEN
 years  of  age OR YOUNGER did an act which, if done by a person over the

 S. 2009--C                         226                        A. 3009--C
 
 age of sixteen, OR COMMENCING  OCTOBER  FIRST,  TWO  THOUSAND  NINETEEN,
 SEVENTEEN,    would  constitute a crime provided (1) such act is one for
 which it may not indict; (2) it does not indict such person for a crime;
 and  (3)  the evidence before it is legally sufficient to establish that
 such person did such act and competent and admissible evidence before it
 provides reasonable cause to believe that such person did such act.
   § 29. Subdivision 6 of section 200.20 of the criminal  procedure  law,
 as  added  by  chapter  136  of  the laws of 1980, is amended to read as
 follows:
   6. Where an indictment charges at least one offense against a  defend-
 ant  who was under the age of [sixteen] SEVENTEEN, OR COMMENCING OCTOBER
 FIRST, TWO THOUSAND NINETEEN, EIGHTEEN at the time of the commission  of
 the crime and who did not lack criminal responsibility for such crime by
 reason  of  infancy, the indictment may, in addition, charge in separate
 counts one or more other offenses for which such person would  not  have
 been criminally responsible by reason of infancy, if:
   (a)  the offense for which the defendant is criminally responsible and
 the one or more other offenses for which he OR SHE would not  have  been
 criminally  responsible by reason of infancy are based upon the same act
 or upon the same criminal transaction, as that term is defined in subdi-
 vision two of section 40.10 of this chapter; or
   (b) the offenses are of such nature that either  proof  of  the  first
 offense  would  be  material  and admissible as evidence in chief upon a
 trial of the second, or proof of the second would be material and admis-
 sible as evidence in chief upon a trial of the first.
   § 29-a. Subdivision 7 of section 210.30 of the criminal procedure law,
 as added by chapter 136 of the laws of  1980,  is  amended  to  read  as
 follows:
   7. Notwithstanding any other provision of law, where the indictment is
 filed  against  a  juvenile  offender  OR ADOLESCENT OFFENDER, the court
 shall dismiss the indictment or count thereof where the evidence  before
 the  grand  jury  was  not  legally  sufficient to establish the offense
 charged or any lesser included offense for which the defendant is crimi-
 nally responsible. Upon such dismissal, unless the court shall authorize
 the people to resubmit the charge to a subsequent grand jury, and upon a
 finding that there was sufficient evidence to  believe  defendant  is  a
 juvenile  delinquent  as  defined  in  subdivision  (a) of section seven
 hundred twelve of the family court act and upon specifying  the  act  or
 acts  it  found  sufficient evidence to believe defendant committed, the
 court may direct that such matter be removed to family court in  accord-
 ance  with  the  provisions of article seven hundred twenty-five of this
 chapter.
   § 30. Section 210.43 of the criminal procedure law is REPEALED.
   § 31. Intentionally omitted.
   § 31-a. Paragraph (a) of subdivision 1 of section 255.10 of the crimi-
 nal procedure law, as amended by chapter 209 of the  laws  of  1990,  is
 amended to read as follows:
   (a)  dismissing  or  reducing an indictment pursuant to article 210 or
 removing an action to the family  court  pursuant  to  [section  210.43]
 ARTICLE 722; or
   §  31-b. Subdivisions 1 and 2 of section 330.25 of the criminal proce-
 dure law, subdivision 1 as added by chapter 481 of the laws of 1978  and
 subdivision 2 as amended by chapter 920 of the laws of 1982, are amended
 to read as follows:
   1.  Where a defendant is a juvenile offender OR AN ADOLESCENT OFFENDER
 who does not stand convicted of murder in the second degree, upon motion

 S. 2009--C                         227                        A. 3009--C
 
 and with the consent of the district attorney, the action may be removed
 to  the  family  court  in  the interests of justice pursuant to article
 seven hundred twenty-five of this chapter notwithstanding the verdict.
   2.  If the district attorney consents to the motion for removal pursu-
 ant  to  this  section,  he  shall file a subscribed memorandum with the
 court setting forth (1) a recommendation that the interests  of  justice
 would  best  be served by removal of the action to the family court; and
 (2) if the conviction is of an offense set forth  in  paragraph  (b)  of
 subdivision  one  of  section  [210.43] 722.22 of this chapter, specific
 factors, one or more of which  reasonably  support  the  recommendation,
 showing, (i) mitigating circumstances that bear directly upon the manner
 in  which  the  crime was committed, or (ii) where the defendant was not
 the sole participant in the crime, that  the  defendant's  participation
 was relatively minor although not so minor as to constitute a defense to
 prosecution,  or (iii) where the juvenile offender has no previous adju-
 dications of having committed a designated felony  act,  as  defined  in
 subdivision  eight  of section 301.2 of the family court act, regardless
 of the age of the offender at the time of commission of  the  act,  that
 the  criminal act was not part of a pattern of criminal behavior and, in
 view of the history of the offender, is not likely to be repeated.
   § 32. Subdivision 2 of section 410.40 of the criminal  procedure  law,
 as  amended  by  chapter  652 of the laws of 2008, is amended to read as
 follows:
   2. Warrant. (A) Where the  probation  officer  has  requested  that  a
 probation  warrant  be issued, the court shall, within seventy-two hours
 of its receipt of the request, issue or deny the  warrant  or  take  any
 other lawful action including issuance of a notice to appear pursuant to
 subdivision  one  of this section. If at any time during the period of a
 sentence of probation or of conditional discharge the court has  reason-
 able  grounds  to believe that the defendant has violated a condition of
 the sentence, the court may issue a warrant to a police officer or to an
 appropriate peace officer directing him or her  to  take  the  defendant
 into  custody  and bring the defendant before the court without unneces-
 sary delay; provided, however, if the court  in  which  the  warrant  is
 returnable is a superior court, and such court is not available, and the
 warrant  is addressed to a police officer or appropriate probation offi-
 cer certified as a peace officer,  such  executing  officer  may  UNLESS
 OTHERWISE  SPECIFIED  UNDER PARAGRAPH (B) OF THIS SUBDIVISION, bring the
 defendant to the local correctional facility of the county in which such
 court sits, to be detained there until not later than  the  commencement
 of the next session of such court occurring on the next business day; or
 if  the  court  in  which  the warrant is returnable is a local criminal
 court, and such court is not available, and the warrant is addressed  to
 a  police  officer or appropriate probation officer certified as a peace
 officer, such executing officer must without unnecessary delay bring the
 defendant before an alternate  local  criminal  court,  as  provided  in
 subdivision five of section 120.90 of this chapter. A court which issues
 such  a  warrant  may  attach  thereto  a  summary  of the basis for the
 warrant. In any case where a defendant  arrested  upon  the  warrant  is
 brought  before a local criminal court other than the court in which the
 warrant is returnable, such local criminal  court  shall  consider  such
 summary before issuing a securing order with respect to the defendant.
   (B)  IF  THE  COURT  IN  WHICH THE WARRANT IS RETURNABLE IS A SUPERIOR
 COURT, AND SUCH COURT IS NOT AVAILABLE, AND THE WARRANT IS ADDRESSED  TO
 A  POLICE  OFFICER OR APPROPRIATE PROBATION OFFICER CERTIFIED AS A PEACE
 OFFICER, SUCH EXECUTING OFFICER SHALL,  WHERE  A  DEFENDANT  IS  SIXTEEN

 S. 2009--C                         228                        A. 3009--C
 
 YEARS  OF AGE OR YOUNGER WHO ALLEGEDLY COMMITS AN OFFENSE OR A VIOLATION
 OF HIS OR HER PROBATION OR CONDITIONAL DISCHARGE IMPOSED FOR AN  OFFENSE
 ON  OR  AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN, OR WHERE A DEFENDANT
 IS SEVENTEEN YEARS OF AGE OR YOUNGER WHO ALLEGEDLY COMMITS AN OFFENSE OR
 A VIOLATION OF HIS OR HER PROBATION OR CONDITIONAL DISCHARGE IMPOSED FOR
 AN  OFFENSE  ON OR AFTER OCTOBER FIRST, TWO THOUSAND NINETEEN, BRING THE
 DEFENDANT WITHOUT UNNECESSARY DELAY BEFORE  THE  YOUTH  PART,  PROVIDED,
 HOWEVER THAT IF THE YOUTH PART IS NOT IN SESSION, THE DEFENDANT SHALL BE
 BROUGHT  BEFORE  THE MOST ACCESSIBLE MAGISTRATE DESIGNATED BY THE APPEL-
 LATE DIVISION.
   § 33. Intentionally omitted.
   § 34. Intentionally omitted.
   § 35. The criminal procedure law is amended by adding  a  new  section
 410.90-a to read as follows:
 § 410.90-A SUPERIOR COURT; YOUTH PART.
   NOTWITHSTANDING  ANY OTHER PROVISIONS OF THIS ARTICLE, ALL PROCEEDINGS
 RELATING TO A JUVENILE OFFENDER OR ADOLESCENT OFFENDER SHALL BE HEARD IN
 THE YOUTH PART OF THE SUPERIOR COURT HAVING JURISDICTION AND ANY  INTRA-
 STATE TRANSFERS UNDER THIS ARTICLE SHALL BE BETWEEN COURTS DESIGNATED AS
 A  YOUTH PART PURSUANT TO ARTICLE SEVEN HUNDRED TWENTY-TWO OF THIS CHAP-
 TER.
   § 36. Section 510.15 of the criminal  procedure  law,  as  amended  by
 chapter  411 of the laws of 1979, subdivision 1 as designated and subdi-
 vision 2 as added by chapter 359 of the laws of 1980, is amended to read
 as follows:
 § 510.15  Commitment of principal under [sixteen] SEVENTEEN OR EIGHTEEN.
   1. When a principal who is under the age of sixteen  is  committed  to
 the  custody  of the sheriff the court must direct that the principal be
 taken to and lodged in a place certified  by  the  [state  division  for
 youth]  OFFICE  OF  CHILDREN AND FAMILY SERVICES as a juvenile detention
 facility for the  reception  of  children.  WHEN  A  PRINCIPAL  WHO  (A)
 COMMENCING  OCTOBER  FIRST,  TWO  THOUSAND EIGHTEEN, IS SIXTEEN YEARS OF
 AGE; OR (B) COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, IS  SIXTEEN
 OR  SEVENTEEN  YEARS OF AGE, IS COMMITTED TO THE CUSTODY OF THE SHERIFF,
 THE COURT MUST DIRECT THAT THE PRINCIPAL BE TAKEN TO  AND  LODGED  IN  A
 PLACE  CERTIFIED  BY  THE  OFFICE  OF  CHILDREN  AND  FAMILY SERVICES IN
 CONJUNCTION WITH THE STATE COMMISSION OF  CORRECTION  AS  A  SPECIALIZED
 SECURE  JUVENILE DETENTION FACILITY FOR OLDER YOUTH. Where such a direc-
 tion is made the sheriff shall deliver the principal in accordance ther-
 ewith and such person shall although lodged and cared for in a  juvenile
 detention  facility  continue  to  be deemed to be in the custody of the
 sheriff.  No principal under the age [of sixteen] SPECIFIED to whom  the
 provisions  of  this  section may apply shall be detained in any prison,
 jail, lockup, or other place used for adults convicted  of  a  crime  or
 under  arrest  and  charged  with  the commission of a crime without the
 approval of the [state division for youth] OFFICE OF CHILDREN AND FAMILY
 SERVICES WHICH SHALL CONSULT WITH THE COMMISSION OF  CORRECTION  IF  THE
 PRINCIPAL IS SIXTEEN YEARS OF AGE OR OLDER in the case of each principal
 and  the  statement  of its reasons therefor.   The sheriff shall not be
 liable for any acts done to or by such principal resulting  from  negli-
 gence  in the detention of and care for such principal, when the princi-
 pal is not in the actual custody of the sheriff.
   2. Except upon consent of the defendant or for good  cause  shown,  in
 any  case in which a new securing order is issued for a principal previ-
 ously committed to the custody of the sheriff pursuant to this  section,
 such  order  shall  further  direct the sheriff to deliver the principal

 S. 2009--C                         229                        A. 3009--C
 
 from a juvenile detention facility to the person or place  specified  in
 the order.
   § 36-a. The correction law is amended by adding a new section 500-p to
 read as follows:
   §  500-P. PROHIBITION ON THE CUSTODY OF YOUTH IN RIKERS ISLAND FACILI-
 TIES.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NO  YOUTH  UNDER  THE
 AGE  OF  EIGHTEEN  SHALL BE PLACED OR HELD IN RIKERS ISLAND CORRECTIONAL
 FACILITY OR ANY FACILITY LOCATED ON RIKERS ISLAND LOCATED IN THE CITY OF
 NEW YORK ON OR AFTER APRIL FIRST, TWO THOUSAND EIGHTEEN, TO  THE  EXTENT
 PRACTICABLE,  BUT IN NO EVENT AFTER OCTOBER FIRST, TWO THOUSAND EIGHTEEN
 AND SUCH YOUTH SHALL BE TAKEN TO AND LODGED IN PLACES CERTIFIED  BY  THE
 OFFICE  OF  CHILDREN AND FAMILY SERVICES IN CONJUNCTION WITH THE COMMIS-
 SION OF CORRECTION AND OPERATED BY THE NEW YORK CITY ADMINISTRATION  FOR
 CHILDREN'S  SERVICES IN CONJUNCTION WITH THE NEW YORK CITY DEPARTMENT OF
 CORRECTIONS AS  A  SPECIALIZED  JUVENILE  DETENTION  FACILITY  FOR  THAT
 PURPOSE.
   § 37. Intentionally omitted.
   § 38. Section 30.00 of the penal law, as amended by chapter 481 of the
 laws of 1978, subdivision 2 as amended by chapter 7 of the laws of 2007,
 is amended to read as follows:
 § 30.00 Infancy.
   1.  Except  as provided in [subdivision] SUBDIVISIONS two AND THREE of
 this section, a person less  than  [sixteen]  SEVENTEEN,  OR  COMMENCING
 OCTOBER  FIRST, TWO THOUSAND NINETEEN, A PERSON LESS THAN EIGHTEEN years
 old is not criminally responsible for conduct.
   2. A person thirteen, fourteen or, fifteen years of age is  criminally
 responsible for acts constituting murder in the second degree as defined
 in  subdivisions  one and two of section 125.25 and in subdivision three
 of such section provided that the underlying crime for the murder charge
 is one for which such person  is  criminally  responsible  or  for  such
 conduct  as  a  sexually  motivated felony, where authorized pursuant to
 section 130.91 of [the penal law] THIS CHAPTER; and  a  person  fourteen
 or, fifteen years of age is criminally responsible for acts constituting
 the  crimes  defined in section 135.25 (kidnapping in the first degree);
 150.20 (arson in the first degree); subdivisions one and two of  section
 120.10  (assault in the first degree); 125.20 (manslaughter in the first
 degree); subdivisions one and two of section 130.35 (rape in  the  first
 degree); subdivisions one and two of section 130.50 (criminal sexual act
 in  the  first  degree);  130.70  (aggravated  sexual abuse in the first
 degree); 140.30 (burglary in  the  first  degree);  subdivision  one  of
 section  140.25  (burglary  in  the second degree); 150.15 (arson in the
 second degree); 160.15 (robbery in the first degree); subdivision two of
 section 160.10 (robbery in  the  second  degree)  of  this  chapter;  or
 section  265.03  of this chapter, where such machine gun or such firearm
 is possessed on school grounds, as that phrase is defined in subdivision
 fourteen of section 220.00 of this chapter; or defined in  this  chapter
 as an attempt to commit murder in the second degree or kidnapping in the
 first  degree, or for such conduct as a sexually motivated felony, where
 authorized pursuant to section 130.91 of [the penal law] THIS CHAPTER.
   3. A PERSON SIXTEEN OR COMMENCING OCTOBER FIRST,  TWO  THOUSAND  NINE-
 TEEN,  SEVENTEEN YEARS OF AGE IS CRIMINALLY RESPONSIBLE FOR ACTS CONSTI-
 TUTING:
   (A) A FELONY, AS DEFINED IN SUBDIVISION FIVE OF SECTION 10.00 OF  THIS
 CHAPTER;
   (B)  A  TRAFFIC  INFRACTION,  AS DEFINED IN SUBDIVISION TWO OF SECTION
 10.00 OF THIS CHAPTER;

 S. 2009--C                         230                        A. 3009--C

   (C) A VIOLATION, AS DEFINED IN SUBDIVISION THREE OF SECTION  10.00  OF
 THIS CHAPTER;
   (D)  A  MISDEMEANOR AS DEFINED IN SUBDIVISION FOUR OF SECTION 10.00 OF
 THIS CHAPTER, BUT ONLY WHEN THE CHARGE FOR SUCH MISDEMEANOR IS:
   (I) ACCOMPANIED BY A FELONY CHARGE THAT IS SHOWN TO HAVE BEEN  COMMIT-
 TED  AS  A PART OF THE SAME CRIMINAL TRANSACTION, AS DEFINED IN SUBDIVI-
 SION TWO OF SECTION 40.10 OF THE CRIMINAL PROCEDURE LAW;
   (II) RESULTS FROM REDUCTION OR DISMISSAL IN SATISFACTION OF  A  CHARGE
 FOR  A  FELONY  OFFENSE, IN ACCORDANCE WITH A PLEA OF GUILTY PURSUANT TO
 SUBDIVISION FOUR OF SECTION 220.10 OF THE CRIMINAL PROCEDURE LAW; OR
   (III) A MISDEMEANOR DEFINED IN THE VEHICLE AND TRAFFIC LAW.
   4. In any prosecution for an offense, lack of criminal  responsibility
 by reason of infancy, as defined in this section, is a defense.
   § 39. Intentionally omitted.
   § 40. Intentionally omitted.
   § 40-a. Subdivision 5 of section 70.00 of the penal law, as amended by
 chapter 482 of the laws of 2009, is amended to read as follows:
   5.   Life  imprisonment  without  parole.  Notwithstanding  any  other
 provision of law, a defendant sentenced  to  life  imprisonment  without
 parole  shall  not  be  or  become  eligible  for  parole or conditional
 release. For purposes of commitment and custody, other than  parole  and
 conditional  release,  such sentence shall be deemed to be an indetermi-
 nate sentence. A defendant may be sentenced to life imprisonment without
 parole upon conviction for the crime of murder in the  first  degree  as
 defined  in  section  125.27  of this chapter and in accordance with the
 procedures provided by law for imposing a sentence  for  such  crime.  A
 defendant  WHO  WAS  EIGHTEEN  YEARS  OF AGE OR OLDER AT THE TIME OF THE
 COMMISSION OF THE CRIME must be sentenced to life  imprisonment  without
 parole  upon conviction for the crime of terrorism as defined in section
 490.25 of this  chapter,  where  the  specified  offense  the  defendant
 committed  is  a class A-I felony; the crime of criminal possession of a
 chemical weapon or biological weapon in the first degree as  defined  in
 section 490.45 of this chapter; or the crime of criminal use of a chemi-
 cal  weapon  or  biological  weapon  in  the  first degree as defined in
 section 490.55 of this chapter; provided, however, that nothing in  this
 subdivision  shall  preclude  or  prevent  a  sentence of death when the
 defendant is also convicted of the crime of murder in the  first  degree
 as  defined  in  section  125.27  of this chapter.   A DEFENDANT WHO WAS
 SEVENTEEN YEARS OF AGE OR YOUNGER AT THE TIME OF THE COMMISSION  OF  THE
 CRIME  MAY BE SENTENCED, IN ACCORDANCE WITH LAW, TO THE APPLICABLE INDE-
 TERMINATE SENTENCE WITH A MAXIMUM TERM OF LIFE IMPRISONMENT. A defendant
 must be sentenced to life imprisonment without  parole  upon  conviction
 for  the  crime of murder in the second degree as defined in subdivision
 five of section 125.25 of this chapter or for the  crime  of  aggravated
 murder  as defined in subdivision one of section 125.26 of this chapter.
 A defendant may be sentenced to life imprisonment  without  parole  upon
 conviction  for the crime of aggravated murder as defined in subdivision
 two of section 125.26 of this chapter.
   § 41. The penal law is amended by adding a new section 60.10-a to read
 as follows:
 § 60.10-A AUTHORIZED DISPOSITION; ADOLESCENT OFFENDER.
   WHEN AN ADOLESCENT OFFENDER IS CONVICTED  OF  AN  OFFENSE,  THE  COURT
 SHALL SENTENCE THE DEFENDANT TO ANY SENTENCE AUTHORIZED TO BE IMPOSED ON
 A  PERSON  WHO  COMMITTED  SUCH OFFENSE AT AGE EIGHTEEN OR OLDER. WHEN A
 SENTENCE IS IMPOSED, THE COURT SHALL CONSIDER THE AGE OF  THE  DEFENDANT
 IN EXERCISING ITS DISCRETION AT SENTENCING.

 S. 2009--C                         231                        A. 3009--C
 
   § 42. Intentionally omitted.
   §  43.  Subdivision 2 of section 70.20 of the penal law, as amended by
 chapter 437 of the laws of 2013, is amended to read as follows:
   2. [(a)] Definite sentence. Except as provided in subdivision four  of
 this  section,  when a definite sentence of imprisonment is imposed, the
 court shall commit the defendant to the county or regional  correctional
 institution  for  the term of his sentence and until released in accord-
 ance with the law.
   [(b) The court in committing a defendant who is not yet eighteen years
 of age to the local correctional facility shall inquire  as  to  whether
 the  parents  or legal guardian of the defendant, if present, will grant
 to the minor the capacity to consent  to  routine  medical,  dental  and
 mental health services and treatment.
   (c) Nothing in this subdivision shall preclude a parent or legal guar-
 dian  of  an  inmate  who is not yet eighteen years of age from making a
 motion on notice to the local correction facility  pursuant  to  article
 twenty-two  of  the civil practice law and rules and section one hundred
 forty of the correction law, objecting to  routine  medical,  dental  or
 mental health services and treatment being provided to such inmate under
 the provisions of paragraph (b) of this subdivision.]
   §  44.  Paragraph  (a)  of subdivision 4 of section 70.20 of the penal
 law, as amended by section 124 of subpart B of part C of chapter  62  of
 the  laws of 2011, is amended and two new paragraphs (a-1) and (a-2) are
 added to read as follows:
   (a) Notwithstanding any other provision of  law  to  the  contrary,  a
 juvenile  offender,  ADOLESCENT  OFFENDER,  or  a  juvenile  offender OR
 ADOLESCENT OFFENDER who is adjudicated a youthful offender [and], WHO IS
 given an indeterminate, DETERMINATE or a definite sentence, AND  WHO  IS
 UNDER  THE AGE OF TWENTY-ONE AT THE TIME OF SENTENCING, shall be commit-
 ted to the custody of the commissioner of the  office  of  children  and
 family  services  who shall arrange for the confinement of such offender
 in secure facilities of the office; PROVIDED, HOWEVER IF  AN  ADOLESCENT
 OFFENDER  WHO COMMITTED A CRIME ON OR AFTER THE YOUTH'S SIXTEENTH BIRTH-
 DAY RECEIVES A DEFINITE SENTENCE NOT EXCEEDING ONE YEAR, THE  JUDGE  MAY
 ORDER  THAT THE ADOLESCENT OFFENDER SERVE SUCH SENTENCE IN A SPECIALIZED
 SECURE JUVENILE DETENTION FACILITY FOR  OLDER  YOUTH  CERTIFIED  BY  THE
 OFFICE  OF  CHILDREN  AND  FAMILY SERVICES IN CONJUNCTION WITH THE STATE
 COMMISSION OF CORRECTION AND OPERATED PURSUANT TO  SECTION  TWO  HUNDRED
 EIGHTEEN-A  OF THE COUNTY LAW.  The release or transfer of such JUVENILE
 offenders OR ADOLESCENT OFFENDERS from the office of children and family
 services shall be governed by section five hundred eight of  the  execu-
 tive law.
   (A-1) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, AN ADOLESCENT
 OFFENDER, OR AN ADOLESCENT OFFENDER WHO IS ADJUDICATED A YOUTHFUL OFFEN-
 DER,  WHO  IS  GIVEN  AN  INDETERMINATE OR DETERMINATE SENTENCE SHALL BE
 COMMITTED TO THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION AND
 IF SUCH PERSON IS UNDER EIGHTEEN YEARS OF AGE AT SENTENCING, HE  OR  SHE
 SHALL  BE  PLACED IN AN ADOLESCENT OFFENDER FACILITY PURSUANT TO SECTION
 SEVENTY-SEVEN OF THE CORRECTION LAW, OPERATED BY SUCH DEPARTMENT.
   (A-2) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  A
 PERSON  SIXTEEN  YEARS  OF  AGE  WHO  COMMITS  A VEHICLE AND TRAFFIC LAW
 OFFENSE THAT DOES NOT CONSTITUTE AN ADOLESCENT OFFENDER  OFFENSE  ON  OR
 AFTER  OCTOBER FIRST, TWO THOUSAND EIGHTEEN AND A PERSON SEVENTEEN YEARS
 OF AGE WHO COMMITS SUCH AN OFFENSE ON OR AFTER OCTOBER FIRST, TWO  THOU-
 SAND  NINETEEN  WHO  IS SENTENCED TO A TERM OF IMPRISONMENT WHO IS UNDER
 THE AGE OF TWENTY-ONE AT THE TIME  HE  OR  SHE  IS  SENTENCED  SHALL  BE

 S. 2009--C                         232                        A. 3009--C

 COMMITTED  TO  A  SPECIALIZED  SECURE DETENTION FACILITY FOR OLDER YOUTH
 CERTIFIED BY THE OFFICE OF CHILDREN AND FAMILY SERVICES  IN  CONJUNCTION
 WITH THE STATE COMMISSION OF CORRECTION.
   § 44-a. Intentionally omitted.
   § 44-b. Intentionally omitted.
   § 45. Intentionally omitted.
   § 46. Intentionally omitted.
   § 47. Intentionally omitted.
   §  48.  The  criminal procedure law is amended by adding a new section
 160.59 to read as follows:
 § 160.59 SEALING OF CERTAIN CONVICTIONS.
   1. DEFINITIONS: AS USED IN THIS SECTION,  THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   (A)  "ELIGIBLE  OFFENSE"  SHALL  MEAN ANY CRIME DEFINED IN THE LAWS OF
 THIS STATE OTHER THAN A SEX OFFENSE DEFINED IN ARTICLE ONE HUNDRED THIR-
 TY OF THE PENAL LAW, AN OFFENSE DEFINED IN ARTICLE  TWO  HUNDRED  SIXTY-
 THREE  OF THE PENAL LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED
 TWENTY-FIVE OF THE PENAL  LAW,  A  VIOLENT  FELONY  OFFENSE  DEFINED  IN
 SECTION  70.02 OF THE PENAL LAW, A CLASS A FELONY OFFENSE DEFINED IN THE
 PENAL LAW, A FELONY OFFENSE DEFINED IN ARTICLE ONE HUNDRED FIVE  OF  THE
 PENAL  LAW  WHERE THE  UNDERLYING OFFENSE IS NOT AN ELIGIBLE OFFENSE, AN
 ATTEMPT TO COMMIT AN OFFENSE THAT IS NOT  AN  ELIGIBLE  OFFENSE  IF  THE
 ATTEMPT  IS  A  FELONY,  OR  AN  OFFENSE FOR WHICH REGISTRATION AS A SEX
 OFFENDER IS REQUIRED PURSUANT TO ARTICLE SIX-C OF  THE  CORRECTION  LAW.
 FOR  THE  PURPOSES  OF THIS SECTION, WHERE THE DEFENDANT IS CONVICTED OF
 MORE THAN ONE ELIGIBLE OFFENSE, COMMITTED AS PART OF THE  SAME  CRIMINAL
 TRANSACTION AS DEFINED IN SUBDIVISION TWO OF SECTION 40.10 OF THIS CHAP-
 TER, THOSE OFFENSES SHALL BE CONSIDERED ONE ELIGIBLE OFFENSE.
   (B)  "SENTENCING  JUDGE"  SHALL MEAN THE JUDGE WHO PRONOUNCED SENTENCE
 UPON THE CONVICTION UNDER CONSIDERATION, OR IF THAT JUDGE IS  NO  LONGER
 SITTING  IN  A  COURT  IN  THE  JURISDICTION IN WHICH THE CONVICTION WAS
 OBTAINED, ANY OTHER JUDGE WHO IS SITTING IN THE CRIMINAL COURT WHERE THE
 JUDGMENT OF CONVICTION WAS ENTERED.
   1-A. THE CHIEF ADMINISTRATOR OF THE COURTS SHALL, PURSUANT TO  SECTION
 10.40 OF THIS CHAPTER, PRESCRIBE A FORM APPLICATION WHICH MAY BE USED BY
 A  DEFENDANT  TO  APPLY  FOR SEALING PURSUANT TO THIS SECTION. SUCH FORM
 APPLICATION SHALL INCLUDE ALL THE ESSENTIAL ELEMENTS  REQUIRED  BY  THIS
 SECTION  TO  BE  INCLUDED IN AN APPLICATION FOR SEALING. NOTHING IN THIS
 SUBDIVISION SHALL BE READ TO REQUIRE A DEFENDANT TO USE SUCH FORM APPLI-
 CATION TO APPLY FOR SEALING.
   2. (A) A DEFENDANT WHO HAS  BEEN  CONVICTED  OF  UP  TO  TWO  ELIGIBLE
 OFFENSES  BUT NOT MORE THAN ONE FELONY OFFENSE MAY APPLY TO THE COURT IN
 WHICH HE OR SHE WAS CONVICTED OF THE MOST SERIOUS OFFENSE TO  HAVE  SUCH
 CONVICTION  SEALED.  IF  ALL OFFENSES ARE OFFENSES WITH THE SAME CLASSI-
 FICATION, THE APPLICATION SHALL BE  MADE  TO  THE  COURT  IN  WHICH  THE
 DEFENDANT WAS LAST CONVICTED.
   (B) AN APPLICATION SHALL CONTAIN (I) A COPY OF A CERTIFICATE OF DISPO-
 SITION  OR  OTHER  SIMILAR  DOCUMENTATION  FOR ANY OFFENSE FOR WHICH THE
 DEFENDANT HAS BEEN CONVICTED, OR AN EXPLANATION OF WHY SUCH  CERTIFICATE
 OR  OTHER  DOCUMENTATION IS NOT AVAILABLE; (II) A SWORN STATEMENT OF THE
 DEFENDANT AS TO WHETHER HE OR SHE HAS FILED, OR THEN  INTENDS  TO  FILE,
 ANY  APPLICATION FOR SEALING OF ANY OTHER ELIGIBLE OFFENSE; (III) A COPY
 OF ANY OTHER SUCH APPLICATION THAT HAS BEEN FILED; (IV) A  SWORN  STATE-
 MENT  AS  TO  THE  CONVICTION  OR  CONVICTIONS FOR WHICH RELIEF IS BEING
 SOUGHT; AND (V) A SWORN STATEMENT OF THE REASON OR REASONS WHY THE COURT

 S. 2009--C                         233                        A. 3009--C

 SHOULD, IN ITS DISCRETION, GRANT SUCH SEALING, ALONG WITH ANY SUPPORTING
 DOCUMENTATION.
   (C)  A  COPY  OF ANY APPLICATION FOR SUCH SEALING SHALL BE SERVED UPON
 THE DISTRICT ATTORNEY OF THE COUNTY IN WHICH THE CONVICTION, OR, IF MORE
 THAN ONE, THE CONVICTIONS, WAS OR WERE OBTAINED.  THE DISTRICT  ATTORNEY
 SHALL  NOTIFY  THE  COURT WITHIN FORTY-FIVE DAYS IF HE OR SHE OBJECTS TO
 THE APPLICATION FOR SEALING.
   (D) WHEN SUCH APPLICATION  IS  FILED  WITH  THE  COURT,  IT  SHALL  BE
 ASSIGNED  TO  THE  SENTENCING  JUDGE UNLESS MORE THAN ONE APPLICATION IS
 FILED IN WHICH CASE THE APPLICATION SHALL  BE  ASSIGNED  TO  THE  COUNTY
 COURT  OR THE SUPREME COURT OF THE COUNTY IN WHICH THE CRIMINAL COURT IS
 LOCATED, WHO SHALL REQUEST AND RECEIVE FROM  THE  DIVISION  OF  CRIMINAL
 JUSTICE  SERVICES  A  FINGERPRINT  BASED  CRIMINAL HISTORY RECORD OF THE
 DEFENDANT, INCLUDING ANY SEALED OR SUPPRESSED RECORDS. THE  DIVISION  OF
 CRIMINAL  JUSTICE SERVICES ALSO SHALL INCLUDE A CRIMINAL HISTORY REPORT,
 IF ANY, FROM THE FEDERAL BUREAU OF INVESTIGATION REGARDING ANY  CRIMINAL
 HISTORY  INFORMATION  THAT OCCURRED IN OTHER JURISDICTIONS. THE DIVISION
 IS HEREBY AUTHORIZED TO RECEIVE SUCH INFORMATION FROM THE FEDERAL BUREAU
 OF INVESTIGATION FOR THIS PURPOSE, AND TO MAKE SUCH  INFORMATION  AVAIL-
 ABLE  TO  THE  COURT,  WHICH  MAY MAKE THIS INFORMATION AVAILABLE TO THE
 DISTRICT ATTORNEY AND THE DEFENDANT.
   3. THE SENTENCING JUDGE, OR COUNTY OR SUPREME  COURT  SHALL  SUMMARILY
 DENY THE DEFENDANT'S APPLICATION WHEN:
   (A)  THE  DEFENDANT IS REQUIRED TO REGISTER AS A SEX OFFENDER PURSUANT
 TO ARTICLE SIX-C OF THE CORRECTION LAW; OR
   (B) THE DEFENDANT HAS  PREVIOUSLY  OBTAINED  SEALING  OF  THE  MAXIMUM
 NUMBER  OF  CONVICTIONS  ALLOWABLE  UNDER SECTION 160.58 OF THE CRIMINAL
 PROCEDURE LAW; OR
   (C) THE DEFENDANT HAS  PREVIOUSLY  OBTAINED  SEALING  OF  THE  MAXIMUM
 NUMBER  OF CONVICTIONS ALLOWABLE UNDER SUBDIVISION FOUR OF THIS SECTION;
 OR
   (D) THE TIME PERIOD SPECIFIED IN SUBDIVISION FIVE OF THIS SECTION  HAS
 NOT YET BEEN SATISFIED; OR
   (E) THE DEFENDANT HAS AN UNDISPOSED ARREST OR CHARGE PENDING; OR
   (F)  THE  DEFENDANT  WAS  CONVICTED OF ANY CRIME AFTER THE DATE OF THE
 ENTRY OF JUDGEMENT OF THE LAST CONVICTION FOR WHICH SEALING  IS  SOUGHT;
 OR
   (G)  THE  DEFENDANT  HAS FAILED TO PROVIDE THE COURT WITH THE REQUIRED
 SWORN STATEMENT OF THE REASONS WHY THE COURT  SHOULD  GRANT  THE  RELIEF
 REQUESTED; OR
   (H)  THE  DEFENDANT HAS BEEN CONVICTED OF TWO OR MORE FELONIES OR MORE
 THAN TWO CRIMES.
   4. PROVIDED THAT THE APPLICATION  IS  NOT  SUMMARILY  DENIED  FOR  THE
 REASONS  SET FORTH IN SUBDIVISION THREE OF THIS SECTION, A DEFENDANT WHO
 STANDS CONVICTED OF UP TO TWO ELIGIBLE OFFENSES, MAY OBTAIN  SEALING  OF
 NO MORE THAN TWO ELIGIBLE OFFENSES BUT NOT MORE THAN ONE FELONY OFFENSE.
   5.  ANY  ELIGIBLE  OFFENSE MAY BE SEALED ONLY AFTER AT LEAST TEN YEARS
 HAVE PASSED SINCE THE IMPOSITION OF  THE  SENTENCE  ON  THE  DEFENDANT'S
 LATEST  CONVICTION  OR,  IF  THE  DEFENDANT WAS SENTENCED TO A PERIOD OF
 INCARCERATION, INCLUDING A PERIOD OF INCARCERATION IMPOSED  IN  CONJUNC-
 TION  WITH  A SENTENCE OF PROBATION, THE DEFENDANT'S LATEST RELEASE FROM
 INCARCERATION.  IN CALCULATING THE TEN YEAR PERIOD UNDER  THIS  SUBDIVI-
 SION,  ANY  PERIOD  OF  TIME  THE DEFENDANT SPENT INCARCERATED AFTER THE
 CONVICTION FOR WHICH THE APPLICATION FOR SEALING  IS  SOUGHT,  SHALL  BE
 EXCLUDED AND SUCH TEN YEAR PERIOD SHALL BE EXTENDED BY A PERIOD OR PERI-
 ODS EQUAL TO THE TIME SERVED UNDER SUCH INCARCERATION.

 S. 2009--C                         234                        A. 3009--C
 
   6.  UPON  DETERMINING THAT THE APPLICATION IS NOT SUBJECT TO MANDATORY
 DENIAL PURSUANT TO SUBDIVISION THREE OF THIS SECTION AND THAT THE APPLI-
 CATION IS OPPOSED BY THE DISTRICT  ATTORNEY,  THE  SENTENCING  JUDGE  OR
 COUNTY  OR  SUPREME  COURT SHALL CONDUCT A HEARING ON THE APPLICATION IN
 ORDER  TO  CONSIDER  ANY EVIDENCE OFFERED BY EITHER PARTY THAT WOULD AID
 THE SENTENCING JUDGE IN HIS OR HER DECISION WHETHER TO SEAL THE  RECORDS
 OF  THE  DEFENDANT'S CONVICTIONS. NO HEARING IS REQUIRED IF THE DISTRICT
 ATTORNEY DOES NOT OPPOSE THE APPLICATION.
   7. IN CONSIDERING ANY SUCH APPLICATION, THE SENTENCING JUDGE OR COUNTY
 OR SUPREME COURT SHALL CONSIDER ANY RELEVANT FACTORS, INCLUDING BUT  NOT
 LIMITED TO:
   (A)  THE  AMOUNT  OF  TIME THAT HAS ELAPSED SINCE THE DEFENDANT'S LAST
 CONVICTION;
   (B) THE CIRCUMSTANCES AND SERIOUSNESS OF THE  OFFENSE  FOR  WHICH  THE
 DEFENDANT IS SEEKING RELIEF, INCLUDING WHETHER THE ARREST CHARGE WAS NOT
 AN ELIGIBLE OFFENSE;
   (C)  THE CIRCUMSTANCES AND SERIOUSNESS OF ANY OTHER OFFENSES FOR WHICH
 THE DEFENDANT STANDS CONVICTED;
   (D) THE CHARACTER OF THE DEFENDANT, INCLUDING ANY  MEASURES  THAT  THE
 DEFENDANT  HAS  TAKEN  TOWARD  REHABILITATION,  SUCH AS PARTICIPATING IN
 TREATMENT PROGRAMS, WORK, OR SCHOOLING, AND PARTICIPATING  IN  COMMUNITY
 SERVICE OR OTHER VOLUNTEER PROGRAMS;
   (E)  ANY  STATEMENTS  MADE  BY THE VICTIM OF THE OFFENSE FOR WHICH THE
 DEFENDANT IS SEEKING RELIEF;
   (F) THE IMPACT OF SEALING THE DEFENDANT'S RECORD UPON HIS OR HER REHA-
 BILITATION AND UPON HIS OR HER SUCCESSFUL  AND  PRODUCTIVE  REENTRY  AND
 REINTEGRATION INTO SOCIETY; AND
   (G)  THE IMPACT OF SEALING THE DEFENDANT'S RECORD ON PUBLIC SAFETY AND
 UPON THE PUBLIC'S CONFIDENCE IN AND RESPECT FOR THE LAW.
   8. WHEN A SENTENCING JUDGE OR COUNTY OR SUPREME COURT  ORDERS  SEALING
 PURSUANT  TO  THIS  SECTION, ALL OFFICIAL RECORDS AND PAPERS RELATING TO
 THE ARRESTS, PROSECUTIONS, AND CONVICTIONS, INCLUDING ALL DUPLICATES AND
 COPIES THEREOF, ON FILE WITH THE DIVISION OF CRIMINAL  JUSTICE  SERVICES
 OR  ANY  COURT  SHALL  BE SEALED AND NOT MADE AVAILABLE TO ANY PERSON OR
 PUBLIC OR PRIVATE AGENCY EXCEPT AS PROVIDED FOR IN SUBDIVISION  NINE  OF
 THIS  SECTION;  PROVIDED, HOWEVER, THE DIVISION SHALL RETAIN ANY FINGER-
 PRINTS, PALMPRINTS AND PHOTOGRAPHS, OR DIGITAL IMAGES OF THE  SAME.  THE
 CLERK  OF  SUCH  COURT  SHALL IMMEDIATELY NOTIFY THE COMMISSIONER OF THE
 DIVISION OF CRIMINAL JUSTICE SERVICES REGARDING THE RECORDS  THAT  SHALL
 BE  SEALED  PURSUANT  TO  THIS  SECTION. THE CLERK ALSO SHALL NOTIFY ANY
 COURT IN WHICH THE DEFENDANT HAS STATED, PURSUANT TO  PARAGRAPH  (B)  OF
 SUBDIVISION  TWO OF THIS SECTION, THAT HE OR SHE HAS FILED OR INTENDS TO
 FILE AN APPLICATION FOR SEALING OF ANY OTHER ELIGIBLE OFFENSE.
   9. RECORDS SEALED PURSUANT TO THIS SECTION SHALL BE MADE AVAILABLE TO:
   (A) THE DEFENDANT OR THE DEFENDANT'S DESIGNATED AGENT;
   (B) QUALIFIED AGENCIES, AS DEFINED  IN  SUBDIVISION  NINE  OF  SECTION
 EIGHT  HUNDRED  THIRTY-FIVE  OF THE EXECUTIVE LAW, AND FEDERAL AND STATE
 LAW ENFORCEMENT AGENCIES, WHEN ACTING WITHIN  THE  SCOPE  OF  THEIR  LAW
 ENFORCEMENT DUTIES; OR
   (C)  ANY  STATE OR LOCAL OFFICER OR AGENCY WITH RESPONSIBILITY FOR THE
 ISSUANCE OF LICENSES TO POSSESS GUNS, WHEN THE PERSON HAS MADE  APPLICA-
 TION FOR SUCH A LICENSE; OR
   (D)  ANY  PROSPECTIVE EMPLOYER OF A POLICE OFFICER OR PEACE OFFICER AS
 THOSE TERMS ARE DEFINED IN SUBDIVISIONS THIRTY-THREE AND THIRTY-FOUR  OF
 SECTION  1.20 OF THIS CHAPTER, IN RELATION TO AN APPLICATION FOR EMPLOY-
 MENT AS A POLICE OFFICER OR PEACE OFFICER; PROVIDED, HOWEVER, THAT EVERY

 S. 2009--C                         235                        A. 3009--C
 
 PERSON WHO IS AN APPLICANT FOR THE POSITION OF POLICE OFFICER  OR  PEACE
 OFFICER  SHALL  BE  FURNISHED  WITH A COPY OF ALL RECORDS OBTAINED UNDER
 THIS PARAGRAPH AND AFFORDED AN OPPORTUNITY TO MAKE AN EXPLANATION THERE-
 TO; OR
   (E)  THE CRIMINAL JUSTICE INFORMATION SERVICES DIVISION OF THE FEDERAL
 BUREAU OF INVESTIGATION, FOR THE PURPOSES OF RESPONDING  TO  QUERIES  TO
 THE NATIONAL INSTANT CRIMINAL BACKGROUND CHECK SYSTEM REGARDING ATTEMPTS
 TO  PURCHASE  OR OTHERWISE TAKE POSSESSION OF FIREARMS, AS DEFINED IN 18
 USC 921 (A) (3).
   10. A CONVICTION WHICH IS SEALED PURSUANT TO THIS SECTION IS  INCLUDED
 WITHIN  THE  DEFINITION OF A CONVICTION FOR THE PURPOSES OF ANY CRIMINAL
 PROCEEDING IN WHICH THE FACT OF  A  PRIOR  CONVICTION  WOULD  ENHANCE  A
 PENALTY OR IS AN ELEMENT OF THE OFFENSE CHARGED.
   11.  NO  DEFENDANT SHALL BE REQUIRED OR PERMITTED TO WAIVE ELIGIBILITY
 FOR SEALING PURSUANT TO THIS SECTION  AS  PART  OF  A  PLEA  OF  GUILTY,
 SENTENCE  OR  ANY  AGREEMENT  RELATED  TO  A  CONVICTION FOR AN ELIGIBLE
 OFFENSE AND ANY SUCH WAIVER SHALL BE DEEMED VOID AND WHOLLY ENFORCEABLE.
   § 48-a. Subdivision 16 of section 296 of the executive law,  as  sepa-
 rately  amended  by  section  3  of part N and section 14 of part AAA of
 chapter 56 of the laws of 2009, is amended to read as follows:
   16. It shall be an unlawful discriminatory  practice,  unless  specif-
 ically required or permitted by statute, for any person, agency, bureau,
 corporation or association, including the state and any political subdi-
 vision thereof, to make any inquiry about, whether in any form of appli-
 cation  or  otherwise,  or  to  act  upon  adversely  to  the individual
 involved, any arrest or criminal accusation of such individual not  then
 pending  against  that individual which was followed by a termination of
 that criminal action or proceeding  in  favor  of  such  individual,  as
 defined  in  subdivision two of section 160.50 of the criminal procedure
 law, or by a youthful offender adjudication, as defined  in  subdivision
 one  of section 720.35 of the criminal procedure law, or by a conviction
 for a violation sealed pursuant to section 160.55 of the criminal proce-
 dure law or by a conviction which is sealed pursuant to  section  160.59
 OR  160.58 of the criminal procedure law, in connection with the licens-
 ing, employment or providing of credit or insurance to such  individual;
 provided,  further, that no person shall be required to divulge informa-
 tion pertaining to any arrest or criminal accusation of such  individual
 not  then pending against that individual which was followed by a termi-
 nation of that criminal action or proceeding in favor of  such  individ-
 ual,  as  defined  in  subdivision two of section 160.50 of the criminal
 procedure law, or by a youthful offender  adjudication,  as  defined  in
 subdivision one of section 720.35 of the criminal procedure law, or by a
 conviction  for  a  violation  sealed  pursuant to section 160.55 of the
 criminal procedure law, or by a conviction which is sealed  pursuant  to
 section  160.58  OR 160.59 of the criminal procedure law. The provisions
 of this subdivision shall not  apply  to  the  licensing  activities  of
 governmental  bodies in relation to the regulation of guns, firearms and
 other deadly weapons or in relation to an application for employment  as
 a police officer or peace officer as those terms are defined in subdivi-
 sions  thirty-three  and  thirty-four  of  section  1.20 of the criminal
 procedure law; provided further that the provisions of this  subdivision
 shall  not  apply  to an application for employment or membership in any
 law enforcement agency with respect to any arrest or criminal accusation
 which was followed by a youthful offender adjudication,  as  defined  in
 subdivision one of section 720.35 of the criminal procedure law, or by a
 conviction  for  a  violation  sealed  pursuant to section 160.55 of the

 S. 2009--C                         236                        A. 3009--C
 
 criminal procedure law, or by a conviction which is sealed  pursuant  to
 section 160.58 OR 160.59 of the criminal procedure law.
   § 49. Intentionally omitted.
   § 50. Intentionally omitted.
   § 51. Intentionally omitted.
   § 52. Intentionally omitted.
   § 53. Intentionally omitted.
   § 54. Intentionally omitted.
   § 55. Intentionally omitted.
   § 56. Subdivision 1 of section 301.2 of the family court act, as added
 by chapter 920 of the laws of 1982, is amended to read as follows:
   1.  "Juvenile  delinquent"  means  a  person  over seven and less than
 sixteen years of age, OR COMMENCING ON OCTOBER FIRST, TWO THOUSAND EIGH-
 TEEN A PERSON OVER SEVEN AND LESS  THAN  SEVENTEEN  YEARS  OF  AGE,  AND
 COMMENCING  OCTOBER FIRST, TWO THOUSAND NINETEEN A PERSON OVER SEVEN AND
 LESS THAN EIGHTEEN YEARS OF AGE, who, having committed an act that would
 constitute a crime, OR A VIOLATION, WHERE SUCH VIOLATION IS  ALLEGED  TO
 HAVE OCCURRED IN THE SAME TRANSACTION OR OCCURRENCE OF THE ALLEGED CRIM-
 INAL  ACT,  if  committed by an adult, (a) is not criminally responsible
 for such conduct by reason of infancy, or (b) is  the  defendant  in  an
 action  ordered removed from a criminal court to the family court pursu-
 ant to article seven hundred twenty-five of the criminal procedure law.
   § 56-a. Section 302.1 of the family court act is amended by  adding  a
 new subdivision 3 to read as follows:
   3.  WHENEVER A CRIME AND A VIOLATION ARISE OUT OF THE SAME TRANSACTION
 OR OCCURRENCE, A CHARGE ALLEGING BOTH OFFENSES SHALL BE MADE  RETURNABLE
 BEFORE  THE  COURT  HAVING  JURISDICTION  OVER THE CRIME. NOTHING HEREIN
 PROVIDED SHALL BE CONSTRUED TO PREVENT A COURT, HAVING JURISDICTION OVER
 A VIOLATION RELATING TO A CRIMINAL ACT FROM LAWFULLY ENTERING  AN  ORDER
 IN  ACCORDANCE  WITH 345.1 OF THIS ARTICLE WHERE SUCH ORDER IS NOT BASED
 UPON THE COUNT OR COUNTS OF THE PETITION ALLEGING SUCH CRIMINAL ACT.
   § 56-b. Section 352.2 of the family court act is amended by  adding  a
 new subdivision 4 to read as follows:
   4.  WHERE  A  YOUTH  RECEIVES  A JUVENILE DELINQUENCY ADJUDICATION FOR
 CONDUCT COMMITTED WHEN THE YOUTH WAS AGE SIXTEEN  OR  OLDER  THAT  WOULD
 CONSTITUTE A VIOLATION, THE COURT SHALL HAVE THE POWER TO ENTER AN ORDER
 OF  DISPOSITION IN ACCORDANCE WITH PARAGRAPHS (A) AND (B) OF SUBDIVISION
 ONE OF THIS SECTION.
   § 57. Subdivisions 8 and 9 of section 301.2 of the family  court  act,
 subdivision  8  as amended by chapter 7 of the laws of 2007 and subdivi-
 sion 9 as added by chapter 920 of the laws of 1982, are amended to  read
 as follows:
   8.  "Designated  felony  act" means an act which, if done by an adult,
 would be a crime: (i) defined in sections 125.27 (murder  in  the  first
 degree); 125.25 (murder in the second degree); 135.25 (kidnapping in the
 first  degree);  or  150.20 (arson in the first degree) of the penal law
 committed by a person thirteen, fourteen [or], fifteen, OR  SIXTEEN,  OR
 COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN years of age;
 or  such conduct committed as a sexually motivated felony, where author-
 ized pursuant to section 130.91  of  the  penal  law;  (ii)  defined  in
 sections  120.10  (assault in the first degree); 125.20 (manslaughter in
 the first degree); 130.35 (rape in the first degree);  130.50  (criminal
 sexual  act in the first degree); 130.70 (aggravated sexual abuse in the
 first degree); 135.20 (kidnapping in the second degree) but  only  where
 the  abduction  involved  the  use  or  threat of use of deadly physical
 force; 150.15 (arson in the second degree) or  160.15  (robbery  in  the

 S. 2009--C                         237                        A. 3009--C

 first  degree) of the penal law committed by a person thirteen, fourteen
 [or], fifteen, OR SIXTEEN, OR, COMMENCING OCTOBER  FIRST,  TWO  THOUSAND
 NINETEEN, SEVENTEEN years of age; or such conduct committed as a sexual-
 ly  motivated felony, where authorized pursuant to section 130.91 of the
 penal law; (iii) defined in the penal law as an attempt to commit murder
 in the first or second degree or kidnapping in the first degree  commit-
 ted  by  a  person  thirteen,  fourteen  [or],  fifteen,  OR SIXTEEN, OR
 COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, SEVENTEEN years of age;
 or such conduct committed as a sexually motivated felony, where  author-
 ized  pursuant  to  section  130.91  of  the  penal law; (iv) defined in
 section 140.30 (burglary  in  the  first  degree);  subdivision  one  of
 section  140.25  (burglary  in  the  second  degree); subdivision two of
 section 160.10 (robbery in the second  degree)  of  the  penal  law;  or
 section  265.03 of the penal law, where such machine gun or such firearm
 is possessed on school grounds, as that phrase is defined in subdivision
 fourteen of section 220.00 of the penal law committed by a person  four-
 teen  or  fifteen  years of age; or such conduct committed as a sexually
 motivated felony, where authorized pursuant to  section  130.91  of  the
 penal  law; (v) defined in section 120.05 (assault in the second degree)
 or 160.10 (robbery in the second degree) of the penal law committed by a
 person fourteen [or], fifteen, OR SIXTEEN OR, COMMENCING OCTOBER  FIRST,
 TWO  THOUSAND  NINETEEN, SEVENTEEN years of age but only where there has
 been a prior finding by a court that such person has previously  commit-
 ted  an  act  which,  if  committed  by  an adult, would be the crime of
 assault in the second degree, robbery in the second degree or any desig-
 nated felony act specified in paragraph (i),  (ii),  or  (iii)  of  this
 subdivision  regardless  of  the  age  of such person at the time of the
 commission of the prior act; [or] (vi) other than a misdemeanor  commit-
 ted  by  a person at least seven but less than [sixteen] SEVENTEEN years
 of age, AND COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, A PERSON AT
 LEAST SEVEN BUT LESS THAN EIGHTEEN YEARS OF AGE, but  only  where  there
 has  been two prior findings by the court that such person has committed
 a prior felony.
   9. "Designated class A felony  act"  means  a  designated  felony  act
 [defined  in paragraph (i) of subdivision eight] THAT WOULD CONSTITUTE A
 CLASS A FELONY IF COMMITTED BY AN ADULT.
   § 58. Intentionally omitted.
   § 59. Section 304.1 of the family court act, as added by  chapter  920
 of the laws of 1982, subdivision 2 as amended by chapter 419 of the laws
 of 1987, is amended to read as follows:
   § 304.1. Detention. 1. A facility certified by the [state division for
 youth]  OFFICE  OF  CHILDREN AND FAMILY SERVICES as a juvenile DETENTION
 facility must be operated in conformity  with  the  regulations  of  the
 [state  division  for  youth  and shall be subject to the visitation and
 inspection of the state board of social welfare] OFFICE OF CHILDREN  AND
 FAMILY SERVICES.
   2.  No child to whom the provisions of this article may apply shall be
 detained in any prison, jail, lockup, or other  place  used  for  adults
 convicted  of  crime  or under arrest and charged with crime without the
 approval of the [state division for youth] OFFICE OF CHILDREN AND FAMILY
 SERVICES in the case of each child and  the  statement  of  its  reasons
 therefor.   The [state division for youth] OFFICE OF CHILDREN AND FAMILY
 SERVICES shall promulgate and publish the rules which it shall apply  in
 determining whether approval should be granted pursuant to this subdivi-
 sion.

 S. 2009--C                         238                        A. 3009--C
 
   3.  The  detention  of  a  child  under  ten  years of age in a secure
 detention facility shall not be directed under any of the provisions  of
 this article.
   4.  A detention facility which receives a child under subdivision four
 of section 305.2 OF THIS  PART  shall  immediately  notify  the  child's
 parent  or  other  person legally responsible for his OR HER care or, if
 such legally responsible person is unavailable the person with whom  the
 child resides, that he OR SHE has been placed in detention.
   § 60. Intentionally omitted.
   § 61. Subdivision 1 of section 305.1 of the family court act, as added
 by chapter 920 of the laws of 1982, is amended to read as follows:
   1.  A  private  person may take a child [under the age of sixteen] WHO
 MAY BE SUBJECT TO THE PROVISIONS OF THIS ARTICLE FOR COMMITTING  AN  ACT
 THAT  WOULD BE A CRIME IF COMMITTED BY AN ADULT into custody in cases in
 which [he] SUCH PRIVATE PERSON may arrest an adult  for  a  crime  under
 section 140.30 of the criminal procedure law.
   § 62. Subdivision 2 of section 305.2 of the family court act, as added
 by chapter 920 of the laws of 1982, is amended to read as follows:
   2.  An  officer may take a child [under the age of sixteen] WHO MAY BE
 SUBJECT TO THE PROVISIONS OF THIS ARTICLE FOR  COMMITTING  AN  ACT  THAT
 WOULD BE A CRIME IF COMMITTED BY AN ADULT into custody without a warrant
 in cases in which [he] THE OFFICER may arrest a person for a crime under
 article one hundred forty of the criminal procedure law.
   §  63.  Paragraph  (b) of subdivision 4 of section 305.2 of the family
 court act, as amended by chapter 492 of the laws of 1987, is amended  to
 read as follows:
   (b)  forthwith  and with all reasonable speed take the child directly,
 and without his first being taken to the police station  house,  to  the
 family  court  located  in  the  county in which the act occasioning the
 taking into custody allegedly was committed, OR, WHEN THE  FAMILY  COURT
 IS NOT IN SESSION, TO THE MOST ACCESSIBLE MAGISTRATE, IF ANY, DESIGNATED
 BY THE APPELLATE DIVISION OF THE SUPREME COURT IN THE APPLICABLE DEPART-
 MENT  TO  CONDUCT A HEARING UNDER SECTION 307.4 OF THIS PART, unless the
 officer determines that it is necessary to question the child, in  which
 case  he OR SHE may take the child to a facility designated by the chief
 administrator of the courts as a suitable place for the  questioning  of
 children  or,  upon  the  consent  of  a  parent or other person legally
 responsible for the care of the child,  to  the  child's  residence  and
 there question him OR HER for a reasonable period of time; or
   § 64. Intentionally omitted.
   § 65. Subdivision 4 of section 307.3 of the family court act, as added
 by chapter 920 of the laws of 1982, is amended to read as follows:
   4.  If  the  agency for any reason does not release a child under this
 section, such child shall be brought    before  the  appropriate  family
 court, OR WHEN SUCH FAMILY COURT IS NOT IN SESSION, TO THE MOST ACCESSI-
 BLE  MAGISTRATE,  IF  ANY,  DESIGNATED  BY THE APPELLATE DIVISION OF THE
 SUPREME COURT IN THE APPLICABLE DEPARTMENT; PROVIDED, HOWEVER,  THAT  IF
 SUCH  FAMILY  COURT  IS NOT IN SESSION AND IF A MAGISTRATE IS NOT AVAIL-
 ABLE, SUCH YOUTH SHALL BE BROUGHT BEFORE SUCH FAMILY COURT within seven-
 ty-two hours or the next day the court is in session, whichever is soon-
 er. Such agency  shall  thereupon  file  an  application  for  an  order
 pursuant  to section 307.4 OF THIS PART and shall forthwith serve a copy
 of the application upon the appropriate presentment agency.  Nothing  in
 this  subdivision shall preclude the adjustment of suitable cases pursu-
 ant to section 308.1.
   § 66. Intentionally omitted.

 S. 2009--C                         239                        A. 3009--C

   § 67. Paragraph (c) of subdivision 3 of section 311.1  of  the  family
 court  act,  as  added by chapter 920 of the laws of 1982, is amended to
 read as follows:
   (c)  the fact that the respondent is a person [under sixteen years of]
 OF THE NECESSARY age TO BE A JUVENILE DELINQUENT  at  the  time  of  the
 alleged act or acts;
   § 68. Intentionally omitted.
   §  69. Paragraphs (a) and (b) of subdivision 5 of section 322.2 of the
 family court act, paragraph (a) as amended by chapter 37 of the laws  of
 2016  and paragraph (b) as added by chapter 920 of the laws of 1982, are
 amended to read as follows:
   (a) If the court finds that there is probable cause  to  believe  that
 the respondent committed a felony, it shall order the respondent commit-
 ted  to  the custody of the commissioner of mental health or the commis-
 sioner of THE OFFICE FOR PEOPLE WITH developmental disabilities  for  an
 initial  period not to exceed one year from the date of such order. Such
 period may be extended annually upon further application to the court by
 the commissioner having custody or his or her designee. Such application
 must be made not more than sixty days prior to the  expiration  of  such
 period  on forms that have been prescribed by the chief administrator of
 the courts. At that time, the commissioner must give written  notice  of
 the application to the respondent, the counsel representing the respond-
 ent and the mental hygiene legal service if the respondent is at a resi-
 dential  facility.  Upon  receipt  of  such  application, the court must
 conduct a hearing to determine the issue of capacity. If, at the conclu-
 sion of a hearing conducted pursuant  to  this  subdivision,  the  court
 finds that the respondent is no longer incapacitated, he or she shall be
 returned  to  the  family court for further proceedings pursuant to this
 article. If the court is satisfied that the respondent continues  to  be
 incapacitated,  the  court  shall  authorize  continued  custody  of the
 respondent by the commissioner for a period not to exceed one year. Such
 extensions shall not continue beyond a reasonable period of time  neces-
 sary  to  determine  whether  the respondent will attain the capacity to
 proceed to a fact finding hearing in the foreseeable future  but  in  no
 event  shall continue beyond the respondent's eighteenth birthday OR, IF
 THE RESPONDENT WAS AT LEAST SIXTEEN  YEARS  OF  AGE  WHEN  THE  ACT  WAS
 COMMITTED, BEYOND THE RESPONDENT'S TWENTY-FIRST BIRTHDAY.
   (b)  If  a  respondent  is in the custody of the commissioner upon the
 respondent's eighteenth birthday, OR IF  THE  RESPONDENT  WAS  AT  LEAST
 SIXTEEN  YEARS  OF AGE WHEN THE ACT RESULTING IN THE RESPONDENT'S PLACE-
 MENT WAS COMMITTED, BEYOND THE RESPONDENT'S TWENTY-FIRST  BIRTHDAY,  the
 commissioner shall notify the clerk of the court that the respondent was
 in his custody on such date and the court shall dismiss the petition.
   §  70.  Subdivisions 1 and 5 of section 325.1 of the family court act,
 subdivision 1 as amended by chapter 398 of the laws of 1983, subdivision
 5 as added by chapter 920 of the laws of 1982, are amended  to  read  as
 follows:
   1.  At  the  initial  appearance,  if  the  respondent denies a charge
 contained in the  petition  and  the  court  determines  that  [he]  THE
 RESPONDENT  shall  be  detained for more than three days pending a fact-
 finding hearing, the court shall schedule a  probable-cause  hearing  to
 determine the issues specified in section 325.3 OF THIS PART.
   5.  Where  the  petition  consists  of an order of removal pursuant to
 article seven hundred twenty-five of the criminal procedure law,  unless
 the  removal was pursuant to subdivision three of section 725.05 of such
 law and the respondent was not afforded a probable cause hearing  pursu-

 S. 2009--C                         240                        A. 3009--C
 
 ant  to  subdivision three of section [180.75] 722.20 of such law [for a
 reason other than his waiver thereof  pursuant  to  subdivision  two  of
 section  180.75  of  such law], the petition shall be deemed to be based
 upon  a determination that probable cause exists to believe the respond-
 ent is a juvenile delinquent and the respondent shall not be entitled to
 any further inquiry on the subject of  whether  probable  cause  exists.
 After  the filing of any such petition the court must, however, exercise
 independent, de novo discretion with respect to release or detention  as
 set forth in section 320.5 OF THIS PART.
   §  70-a.  Section 350.3 of the family court act is amended by adding a
 new subdivision 4 to read as follows:
   4. THE VICTIM HAS THE RIGHT TO MAKE A STATEMENT  WITH  REGARD  TO  ANY
 MATTER RELEVANT TO THE QUESTION OF DISPOSITION. IF THE VICTIM CHOOSES TO
 MAKE  A  STATEMENT,  SUCH INDIVIDUAL SHALL NOTIFY THE COURT AT LEAST TEN
 DAYS PRIOR TO THE DATE OF THE DISPOSITIONAL  HEARING.  THE  COURT  SHALL
 NOTIFY THE RESPONDENT NO LESS THAN SEVEN DAYS PRIOR TO THE DISPOSITIONAL
 HEARING OF THE VICTIM'S INTENT TO MAKE A STATEMENT. THE VICTIM SHALL NOT
 BE MADE AWARE OF THE FINAL DISPOSITION OF THE CASE.
   §  70-b.  Section 350.4 of the family court act is amended by adding a
 new subdivision 5-a to read as follows:
   5-A. THE VICTIM SHALL BE ALLOWED TO MAKE AN ORAL OR WRITTEN STATEMENT.
   § 70-c. Subdivision 4 of section 351.1 of the  family  court  act,  as
 amended  by  chapter  317  of  the  laws  of 2004, is amended to read as
 follows:
   4. [When it appears that such information would  be  relevant  to  the
 findings  of  the court or the order of disposition, each] EACH investi-
 gation report prepared pursuant to this section shall [contain a] AFFORD
 THE VICTIM THE RIGHT TO MAKE A STATEMENT. SUCH victim  impact  statement
 [which]  shall  include  an  analysis  of  the  victim's  version of the
 offense, the extent of injury or economic loss AND  THE  ACTUAL  OUT-OF-
 POCKET  LOSS  or  damage  to the victim, including the amount of unreim-
 bursed medical expenses, if any, and the views of the victim relating to
 disposition including the amount of restitution sought  by  the  victim,
 subject  to availability of such information. In the case [of a homicide
 or] where the victim is unable to  assist  in  the  preparation  of  the
 victim  impact  statement,  the  information  may  be  acquired from the
 victim's family. Nothing contained in this section shall be  interpreted
 to require that a victim or his or her family supply information for the
 preparation of an investigation report or that the dispositional hearing
 should be delayed in order to obtain such information.
   § 71. Intentionally omitted.
   § 72. The opening paragraph of subparagraph (iii) of paragraph (a) and
 paragraph (d) of subdivision 4 of section 353.5 of the family court act,
 as amended by section 6 of subpart A of part G of chapter 57 of the laws
 of 2012, are amended to read as follows:
   after  the  period  set under subparagraph (ii) of this paragraph, the
 respondent shall be placed in a residential facility  for  a  period  of
 twelve months; provided, however, that if the respondent has been placed
 from  a family court in a social services district operating an approved
 juvenile justice services close to home initiative pursuant  to  section
 four  hundred  four of the social services law FOR AN ACT COMMITTED WHEN
 THE RESPONDENT WAS UNDER SIXTEEN YEARS OF AGE, once the time  frames  in
 subparagraph (ii) of this paragraph are met:
   (d)  Upon  the  expiration  of the initial period of placement, or any
 extension thereof, the placement may  be  extended  in  accordance  with
 section  355.3  on a petition of any party or the office of children and

 S. 2009--C                         241                        A. 3009--C
 
 family services, or, if applicable, a social services district operating
 an approved juvenile justice services close to home initiative  pursuant
 to  section four hundred four of the social services law, after a dispo-
 sitional  hearing, for an additional period not to exceed twelve months,
 but no initial placement or extension of placement  under  this  section
 may  continue  beyond the respondent's twenty-first birthday, OR, FOR AN
 ACT THAT WAS COMMITTED WHEN THE RESPONDENT WAS SIXTEEN YEARS OF  AGE  OR
 OLDER, THE RESPONDENT'S TWENTY-THIRD BIRTHDAY.
   §  73.  Paragraph  (d) of subdivision 4 of section 353.5 of the family
 court act, as amended by chapter 398 of the laws of 1983, is amended  to
 read as follows:
   (d)  Upon  the  expiration  of the initial period of placement, or any
 extension thereof, the placement may  be  extended  in  accordance  with
 section  355.3  on  a  petition of any party or the [division for youth]
 OFFICE OF CHILDREN AND FAMILY SERVICES after  a  dispositional  hearing,
 for  an  additional  period  not to exceed twelve months, but no initial
 placement or extension of placement  under  this  section  may  continue
 beyond  the  respondent's twenty-first birthday, OR, FOR AN ACT THAT WAS
 COMMITTED WHEN THE RESPONDENT WAS SIXTEEN YEARS OF  AGE  OR  OLDER,  THE
 RESPONDENT'S TWENTY-THIRD BIRTHDAY.
   § 74. Intentionally omitted.
   §  75.  Subdivision  6  of  section  355.3 of the family court act, as
 amended by chapter 663 of the laws  of  1985,  is  amended  to  read  as
 follows:
   6. Successive extensions of placement under this section may be grant-
 ed,  but  no  placement may be made or continued beyond the respondent's
 eighteenth birthday without  the  child's  consent  FOR  ACTS  COMMITTED
 BEFORE  THE  RESPONDENT'S  SIXTEENTH  BIRTHDAY  and in no event past the
 child's twenty-first birthday EXCEPT AS PROVIDED FOR IN SUBDIVISION FOUR
 OF SECTION 353.5 OF THIS PART.
   § 76. Paragraph (b) of subdivision 3 of section 355.5  of  the  family
 court  act, as amended by chapter 145 of the laws of 2000, is amended to
 read as follows:
   (b) subsequent permanency hearings shall be held no later  than  every
 twelve months following the respondent's initial twelve months in place-
 ment  BUT  IN  NO  EVENT  PAST  THE  RESPONDENT'S TWENTY-FIRST BIRTHDAY;
 provided, however, that they shall be held in conjunction with an exten-
 sion of placement hearing held pursuant to section 355.3 of this  [arti-
 cle] PART.
   § 77. Subdivision 6 of section 375.2 of the family court act, as added
 by  chapter  926 of the laws of 1982 and as renumbered by chapter 398 of
 the laws of 1983, is amended to read as follows:
   6. Such a motion cannot be  filed  until  the  respondent's  sixteenth
 birthday,  OR,  COMMENCING  OCTOBER  FIRST,  TWO  THOUSAND EIGHTEEN, THE
 RESPONDENT'S SEVENTEENTH BIRTHDAY,  OR  COMMENCING  OCTOBER  FIRST,  TWO
 THOUSAND NINETEEN, THE RESPONDENT'S EIGHTEENTH BIRTHDAY.
   §  78. Subdivisions 5 and 6 of section 371 of the social services law,
 subdivision 5 as added by chapter 690 of the laws of 1962, and  subdivi-
 sion  6  as  amended  by chapter 596 of the laws of 2000, are amended to
 read as follows:
   5. "Juvenile delinquent" means a person  [over  seven  and  less  than
 sixteen  years of age who does any act which, if done by an adult, would
 constitute a crime] AS DEFINED IN SECTION 301.2 OF THE FAMILY COURT ACT.
   6. "Person in need of supervision" means a person [less than  eighteen
 years of age who is habitually truant or who is incorrigible, ungoverna-
 ble  or habitually disobedient and beyond the lawful control of a parent

 S. 2009--C                         242                        A. 3009--C

 or other person legally responsible for  such  child's  care,  or  other
 lawful  authority]  AS  DEFINED  IN  SECTION SEVEN HUNDRED TWELVE OF THE
 FAMILY COURT ACT.
   § 78-a. Subdivision 2 of section 40 of the correction law, as added by
 chapter 865 of the laws of 1975, is amended to read as follows:
   2.  "Local  correctional facility" means any county jail, county peni-
 tentiary, county lockup, city jail, police station jail, town or village
 jail or lockup, court  detention  pen  [or],  hospital  prison  ward  OR
 SPECIALIZED SECURE JUVENILE DETENTION FACILITY FOR OLDER YOUTH.
   § 79. Subdivisions 3 and 4 of section 502 of the executive law, subdi-
 vision 3 as amended by section 1 of subpart B of part Q of chapter 58 of
 the  laws  of 2011 and subdivision 4 as added by chapter 465 of the laws
 of 1992, are amended to read as follows:
   3. "Detention" means the temporary care and maintenance of youth  held
 away  from  their homes pursuant to article three or seven of the family
 court act, or held pending a hearing for alleged violation of the condi-
 tions of release from an office of children and family services facility
 or authorized agency, or held pending a hearing for alleged violation of
 the condition of parole as a juvenile  offender,  YOUTHFUL  OFFENDER  OR
 ADOLESCENT  OFFENDER or held pending return to a jurisdiction other than
 the one in which the youth is held, or held pursuant to a securing order
 of a criminal court if the youth named therein as principal  is  charged
 as a juvenile offender, YOUTHFUL OFFENDER OR ADOLESCENT OFFENDER or held
 pending  a hearing on an extension of placement or held pending transfer
 to a facility upon commitment or placement by a court.  Only alleged  or
 convicted juvenile offenders, YOUTHFUL OFFENDERS OR ADOLESCENT OFFENDERS
 who have not attained their eighteenth OR, COMMENCING OCTOBER FIRST, TWO
 THOUSAND  EIGHTEEN,  THEIR  TWENTY-FIRST  birthday  shall  be subject to
 detention in a detention facility. COMMENCING OCTOBER FIRST,  TWO  THOU-
 SAND  EIGHTEEN,  A  YOUTH WHO ON OR AFTER SUCH DATE COMMITTED AN OFFENSE
 WHEN THE YOUTH WAS SIXTEEN YEARS OF AGE; OR  COMMENCING  OCTOBER  FIRST,
 TWO THOUSAND NINETEEN, A YOUTH WHO COMMITTED AN OFFENSE ON OR AFTER SUCH
 DATE WHEN THE YOUTH WAS SEVENTEEN YEARS OF AGE HELD PURSUANT TO A SECUR-
 ING  ORDER  OF A CRIMINAL COURT IF THE YOUTH IS CHARGED AS AN ADOLESCENT
 OFFENDER OR HELD PENDING A HEARING FOR ALLEGED VIOLATION OF  THE  CONDI-
 TION  OF PAROLE AS AN ADOLESCENT OFFENDER, MUST BE HELD IN A SPECIALIZED
 SECURE JUVENILE DETENTION FACILITY FOR  OLDER  YOUTH  CERTIFIED  BY  THE
 STATE  OFFICE  OF  CHILDREN  AND FAMILY SERVICES IN CONJUNCTION WITH THE
 STATE COMMISSION OF CORRECTION.
   4. For purposes of this article, the term "youth" shall [be synonymous
 with the term "child" and means] MEAN a person not less than seven years
 of age and not more than twenty OR COMMENCING OCTOBER FIRST,  TWO  THOU-
 SAND NINETEEN, NOT MORE THAN TWENTY-TWO years of age.
   §  79-a.  Section  503 of the executive law is amended by adding a new
 subdivision 9 to read as follows:
   9. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE OFFICE OF  CHILDREN
 AND  FAMILY  SERVICES  IN  CONSULTATION  WITH  THE  STATE  COMMISSION OF
 CORRECTION  SHALL  JOINTLY  REGULATE,  CERTIFY,  INSPECT  AND  SUPERVISE
 SPECIALIZED SECURE DETENTION FACILITIES FOR ADOLESCENT OFFENDERS.
   §  79-b. Paragraph (b) of subdivision 4 of section 507-a of the execu-
 tive law, as amended by chapter 465 of the laws of 1992, is  amended  to
 read as follows:
   (b)  The [division] OFFICE OF CHILDREN AND FAMILY SERVICES shall admit
 a child placed with the [division] OFFICE to a facility  of  the  [divi-
 sion]  OFFICE  within fifteen days of the date of the order of placement
 with the [division] OFFICE and shall admit a juvenile offender, YOUTHFUL

 S. 2009--C                         243                        A. 3009--C
 
 OFFENDER OR ADOLESCENT OFFENDER committed to the [division] OFFICE to  a
 facility  of  the  [division]  OFFICE within ten days of the date of the
 order of commitment to the [division]  OFFICE,  except  as  provided  in
 section five hundred seven-b of this article.
   §  80.  Paragraph  (a)  of  subdivision 2 and subdivision 5 of section
 507-a of the executive law, as amended by chapter 465  of  the  laws  of
 1992, are amended to read as follows:
   (a) Consistent with other provisions of law, only those youth who have
 reached  the age of seven but who have not reached the age of twenty-one
 may be placed in[, committed to or remain in] the  [division's]  custody
 OF THE OFFICE OF CHILDREN AND FAMILY SERVICES. EXCEPT AS PROVIDED FOR IN
 PARAGRAPH (A-1) OF THIS SUBDIVISION, NO YOUTH WHO HAS REACHED THE AGE OF
 TWENTY-ONE  MAY  REMAIN  IN CUSTODY OF THE OFFICE OF CHILDREN AND FAMILY
 SERVICES.
   (A-1) (I) A YOUTH WHO IS COMMITTED TO THE OFFICE OF CHILDREN AND FAMI-
 LY SERVICES AS A JUVENILE OFFENDER OR A JUVENILE OFFENDER ADJUDICATED AS
 A YOUTHFUL OFFENDER MAY REMAIN IN THE CUSTODY OF THE OFFICE  DURING  THE
 PERIOD OF HIS OR HER SENTENCE BEYOND THE AGE OF TWENTY-ONE IN ACCORDANCE
 WITH THE PROVISIONS OF SUBDIVISION FIVE OF SECTION FIVE HUNDRED EIGHT OF
 THIS TITLE BUT IN NO EVENT MAY SUCH A YOUTH REMAIN IN THE CUSTODY OF THE
 OFFICE  BEYOND  HIS OR HER TWENTY-THIRD BIRTHDAY; AND (II) A YOUTH FOUND
 TO HAVE COMMITTED A DESIGNATED CLASS A FELONY ACT WHO  IS  RESTRICTIVELY
 PLACED  WITH  THE  OFFICE UNDER SUBDIVISION FOUR OF SECTION 353.5 OF THE
 FAMILY COURT ACT FOR COMMITTING AN ACT ON OR AFTER THE YOUTH'S SIXTEENTH
 BIRTHDAY MAY REMAIN IN THE CUSTODY OF THE OFFICE OF CHILDREN AND  FAMILY
 SERVICES  UP  TO  THE  AGE OF TWENTY-THREE IN ACCORDANCE WITH HIS OR HER
 PLACEMENT ORDER.
   (A-2) Whenever it shall appear to the satisfaction of  the  [division]
 OFFICE  OF  CHILDREN AND FAMILY SERVICES that any youth placed therewith
 is not of proper age to be so placed or is not properly  placed,  or  is
 mentally  or  physically  incapable of being materially benefited by the
 program of the [division] OFFICE, the [division] OFFICE shall cause  the
 return of such youth to the county from which placement was made.
   5.  Consistent  with other provisions of law, in the discretion of the
 [director, youth] COMMISSIONER OF THE  OFFICE  OF  CHILDREN  AND  FAMILY
 SERVICES,  YOUTH PLACED WITHIN THE OFFICE UNDER THE FAMILY COURT ACT who
 attain the age of eighteen while in [division] custody OF THE OFFICE AND
 WHO ARE NOT REQUIRED TO REMAIN IN THE PLACEMENT WITH  THE  OFFICE  AS  A
 RESULT  OF  A  DISPOSITIONAL  ORDER  OF THE FAMILY COURT may reside in a
 non-secure facility until the age  of  twenty-one,  provided  that  such
 youth attend a full-time vocational or educational program and are like-
 ly to benefit from such program.
   § 81. Intentionally omitted.
   §  81-a.  The  correction law is amended by adding a new section 77 to
 read as follows:
   § 77. ADOLESCENT OFFENDER FACILITIES.  1. (A) THE STATE  SHALL  ESTAB-
 LISH ONE OR MORE FACILITIES WITH ENHANCED SECURITY FEATURES AND SPECIAL-
 LY TRAINED STAFF TO SERVE THE ADOLESCENT OFFENDERS SENTENCED TO A DETER-
 MINATE  OR  INDETERMINATE  SENTENCE  FOR COMMITTING OFFENSES ON OR AFTER
 THEIR SIXTEENTH BIRTHDAY WHO ARE DETERMINED TO NEED AN ENHANCED LEVEL OF
 SECURE CARE WHICH SHALL BE MANAGED BY THE DEPARTMENT WITH THE OFFICE  OF
 CHILDREN AND FAMILY SERVICES ASSISTANCE, AND SERVICES OR PROGRAMS.
   (B)  A  COUNCIL COMPRISED OF THE COMMISSIONER, AND THE OFFICE OF CHIL-
 DREN AND FAMILY SERVICES, THE COMMISSIONER OF THE  STATE  COMMISSION  OF
 CORRECTION,  AND  THE  COMMISSIONER  OF THE DIVISION OF CRIMINAL JUSTICE
 SERVICES SHALL BE ESTABLISHED TO ASSESS THE OPERATION OF  THE  FACILITY.

 S. 2009--C                         244                        A. 3009--C

 THE GOVERNOR SHALL DESIGNATE THE CHAIR OF THE COUNCIL. THE COUNCIL SHALL
 HAVE  THE  POWER  TO  PERFORM ALL ACTS NECESSARY TO CARRY OUT ITS DUTIES
 INCLUDING MAKING UNANNOUNCED VISITS AND INSPECTIONS OF THE  FACILITY  AT
 ANY  TIME.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  STATE LAW TO THE
 CONTRARY, THE COUNCIL MAY REQUEST AND THE DEPARTMENT SHALL SUBMIT TO THE
 COUNCIL, TO THE EXTENT PERMITTED BY FEDERAL LAW, ALL INFORMATION IN  THE
 FORM  AND  MANNER  AND  AT SUCH TIMES AS THE COUNCIL MAY REQUIRE THAT IS
 APPROPRIATE TO THE PURPOSES AND OPERATION OF THE  COUNCIL.  THE  COUNCIL
 SHALL  BE  SUBJECT TO THE SAME LAWS AS APPLY TO THE DEPARTMENT REGARDING
 THE PROTECTION AND CONFIDENTIALITY OF THE INFORMATION MADE AVAILABLE  TO
 THE  COUNCIL  AND  SHALL  PREVENT ACCESS THERETO BY, OR THE DISTRIBUTION
 THEREOF TO, PERSONS NOT AUTHORIZED BY LAW.
   (C)  APPROPRIATE  STAFF  WORKING  IN  SUCH  FACILITIES  SHALL  RECEIVE
 SPECIALIZED  TRAINING  TO ADDRESS WORKING WITH THE TYPES OF YOUTH PLACED
 IN THE FACILITY, WHICH SHALL INCLUDE BUT NOT BE LIMITED TO, TRAINING  ON
 TACTICAL RESPONSES AND DE-ESCALATION TECHNIQUES. ALL STAFF OF THE FACIL-
 ITY SHALL BE SUBJECT TO RANDOM DRUG TESTS.
   2.  THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL ASSIGN AN ASSIST-
 ANT COMMISSIONER TO ASSIST THE DEPARTMENT, ON A  PERMANENT  BASIS,  WITH
 PROGRAMS OR SERVICES PROVIDED WITHIN SUCH FACILITIES.
   3.  THE  DEPARTMENT, THE STATE COMMISSION OF CORRECTION AND THE OFFICE
 OF CHILDREN AND FAMILY SERVICES  SHALL  JOINTLY  ESTABLISH  A  PLACEMENT
 CLASSIFICATION PROTOCOL TO BE USED TO DETERMINE THE APPROPRIATE LEVEL OF
 CARE  FOR  EACH ADOLESCENT OFFENDER IN SUCH FACILITY. THE PROTOCOL SHALL
 INCLUDE, BUT NOT NECESSARILY BE LIMITED TO, CONSIDERATION OF THE  NATURE
 OF THE YOUTH'S OFFENSE AND THE YOUTH'S HISTORY AND SERVICE NEEDS.
   4.    ANY  NEW  FACILITIES DEVELOPED BY THE DEPARTMENT IN CONSULTATION
 WITH THE OFFICE OF CHILDREN AND  FAMILY  SERVICES  TO  SERVE  THE  YOUTH
 COMMITTED  AS  ADOLESCENT  OFFENDERS  AS  A RESULT OF RAISING THE AGE OF
 JUVENILE JURISDICTION SHALL, TO THE EXTENT PRACTICABLE, CONSIST OF SMAL-
 LER, MORE HOME-LIKE FACILITIES LOCATED NEAR THE YOUTHS' HOMES AND  FAMI-
 LIES  THAT PROVIDE GENDER-RESPONSIVE PROGRAMMING, SERVICES AND TREATMENT
 IN SMALL, CLOSELY SUPERVISED GROUPS THAT OFFER  EXTENSIVE  AND  ON-GOING
 INDIVIDUAL ATTENTION AND ENCOURAGE SUPPORTIVE PEER RELATIONSHIPS.
   5.  ADOLESCENT  OFFENDERS COMMITTED OR TRANSFERRED TO THE FACILITY, AS
 DEFINED IN THIS SECTION  FOR  COMMITTING  A  CRIME  ON  OR  AFTER  THEIR
 SIXTEENTH BIRTHDAY WHO STILL HAVE TIME LEFT ON THEIR SENTENCES OF IMPRI-
 SONMENT  SHALL  BE  TRANSFERRED TO A NON-ADOLESCENT OFFENDER FACILITY IN
 THE DEPARTMENT FOR CONFINEMENT PURSUANT TO THIS CHAPTER AFTER COMPLETING
 TWO YEARS IN AN ADOLESCENT OFFENDER FACILITY UNLESS THEY ARE WITHIN FOUR
 MONTHS OF COMPLETING THE IMPRISONMENT PORTION OF THEIR SENTENCE AND  THE
 DEPARTMENT  DETERMINES,  IN ITS DISCRETION, ON A CASE-BY-CASE BASIS THAT
 THE YOUTH SHOULD BE PERMITTED TO REMAIN IN SUCH FACILITY FOR  THE  ADDI-
 TIONAL  SHORT  PERIOD OF TIME NECESSARY TO ENABLE THEM TO COMPLETE THEIR
 SENTENCE. IN MAKING SUCH A DETERMINATION, THE FACTORS THE DEPARTMENT MAY
 CONSIDER INCLUDE, BUT ARE NOT LIMITED TO, THE  AGE  OF  THE  YOUTH,  THE
 AMOUNT  OF  TIME  REMAINING ON THE YOUTH'S SENTENCE OF IMPRISONMENT, THE
 LEVEL OF THE YOUTH'S PARTICIPATION IN THE PROGRAM,  THE  YOUTH'S  EDUCA-
 TIONAL AND VOCATIONAL PROGRESS, THE OPPORTUNITIES AVAILABLE TO THE YOUTH
 THROUGH  THE  DEPARTMENT,  AND THE LENGTH OF ANY APPLICABLE POST-RELEASE
 SUPERVISION SENTENCE. NOTHING IN  THIS  SUBDIVISION  SHALL  AUTHORIZE  A
 YOUTH  TO  REMAIN IN SUCH FACILITY BEYOND HIS OR HER TWENTY-THIRD BIRTH-
 DAY.
   § 81-b. The correction law is amended by adding a new  section  78  to
 read as follows:

 S. 2009--C                         245                        A. 3009--C
 
   § 78. DISCHARGE PLANS. THE DEPARTMENT, IN CONSULTATION WITH THE OFFICE
 OF CHILDREN AND FAMILY SERVICES, SHALL PROVIDE DISCHARGE PLANS FOR JUVE-
 NILE  OFFENDERS  AND  ADOLESCENT OFFENDERS WHO ARE RELEASED TO PAROLE OR
 POST-RELEASE SUPERVISION, WHICH ARE TAILORED TO ADDRESS THEIR INDIVIDUAL
 NEEDS.  SUCH  PLANS  SHALL  INCLUDE  SERVICES DESIGNED TO PROMOTE PUBLIC
 SAFETY AND THE SUCCESSFUL AND PRODUCTIVE  REENTRY  OF  SUCH  ADOLESCENTS
 INTO SOCIETY.
   §  82.  Subdivisions  2, 3, 7, 8 and 9 of section 508 of the executive
 law, subdivision 2 as amended by chapter 572 of the laws of 1985, subdi-
 vision 3 as added by chapter 481 of the laws of 1978 and  renumbered  by
 chapter  465 of the laws of 1992, subdivision 7 as amended by section 97
 of subpart B of part C of chapter 62 of the laws of 2011, subdivision  8
 as added by chapter 560 of the laws of 1984 and subdivision 9 as amended
 by chapter 37 of the laws of 2016, are amended to read as follows:
   2.  Juvenile  offenders shall be confined in such facilities until the
 age of twenty-one IN ACCORDANCE WITH THEIR SENTENCES, and shall  not  be
 released,  discharged  or  permitted  home visits except pursuant to the
 provisions of this section.
   3. The [division] OFFICE OF CHILDREN AND FAMILY SERVICES shall  report
 in  writing to the sentencing court and district attorney, not less than
 once every six months during the period of confinement, on  the  status,
 adjustment, programs and progress of the offender.
   The  office  of  children and family services may transfer an offender
 not less than eighteen [nor more than twenty-one] years of  age  to  the
 department  of corrections and community supervision if the commissioner
 of the office certifies to the commissioner of corrections and community
 supervision that there is no substantial likelihood that the youth  will
 benefit from the programs offered by office facilities.
   7. While in the custody of the office of children and family services,
 an offender shall be subject to the rules and regulations of the office,
 except  that his OR HER parole, temporary release and discharge shall be
 governed by the laws applicable to inmates of state correctional facili-
 ties and his OR HER transfer to state hospitals in the office of  mental
 health  shall  be governed by section five hundred nine of this chapter;
 PROVIDED, HOWEVER, THAT AN OTHERWISE ELIGIBLE OFFENDER MAY  RECEIVE  THE
 SIX-MONTH  LIMITED CREDIT TIME ALLOWANCE FOR SUCCESSFUL PARTICIPATION IN
 ONE OR MORE PROGRAMS DEVELOPED BY THE  OFFICE  OF  CHILDREN  AND  FAMILY
 SERVICES  THAT ARE COMPARABLE TO THE PROGRAMS SET FORTH IN SECTION EIGHT
 HUNDRED THREE-B OF THE CORRECTION LAW, TAKING INTO CONSIDERATION THE AGE
 OF OFFENDERS. The commissioner of the  office  of  children  and  family
 services   shall,  however,  establish  and  operate  temporary  release
 programs at office of children and family services facilities for eligi-
 ble juvenile offenders and contract with the department  of  corrections
 and  community  supervision  for  the  provision  of  parole supervision
 services for temporary releasees.  The rules and regulations  for  these
 programs  shall  not be inconsistent with the laws for temporary release
 applicable to inmates of state correctional facilities. For the purposes
 of temporary release programs for juvenile offenders only, when referred
 to or defined in article twenty-six of the correction law, "institution"
 shall mean any facility designated by the commissioner of the office  of
 children  and  family  services,  "department"  shall mean the office of
 children and family services, "inmate" shall mean  a  juvenile  offender
 residing  in  an  office  of  children and family services facility, and
 "commissioner" shall mean the [director] COMMISSIONER of the  office  of
 children and family services. Time spent in office of children and fami-
 ly  services  facilities  and  in juvenile detention facilities shall be

 S. 2009--C                         246                        A. 3009--C
 
 credited towards the sentence imposed in the same manner and to the same
 extent applicable to inmates of state correctional facilities.
   8.   Whenever a juvenile offender or a juvenile offender adjudicated a
 youthful offender shall be delivered to the director of [a division  for
 youth]  AN OFFICE OF CHILDREN AND FAMILY SERVICES facility pursuant to a
 commitment to the [director of the division for youth] OFFICE  OF  CHIL-
 DREN  AND  FAMILY  SERVICES, the officer so delivering such person shall
 deliver to such facility director  a  certified  copy  of  the  sentence
 received  by  such  officer  from  the  clerk of the court by which such
 person shall have been sentenced, a copy of the report of the  probation
 officer's  investigation  and  report,  any other pre-sentence memoranda
 filed with the court, a copy of  the  person's  fingerprint  records,  a
 detailed  summary  of available medical records, psychiatric records and
 reports relating to assaults, or other violent acts, attempts at suicide
 or escape by the person while in the custody of a local detention facil-
 ity.
   9. Notwithstanding  any  provision  of  law,  including  section  five
 hundred  one-c  of  this  article,  the  office  of  children and family
 services shall make records pertaining to a person convicted  of  a  sex
 offense  as  defined  in  subdivision (p) of section 10.03 of the mental
 hygiene law available upon request to the commissioner of mental  health
 or the commissioner of THE OFFICE FOR PEOPLE WITH developmental disabil-
 ities, as appropriate; a case review panel; and the attorney general; in
 accordance with the provisions of article ten of the mental hygiene law.
   §  82-a. Subdivision 2 of section 529 of the executive law, as amended
 by chapter 430 of the laws of 1991, is amended to read as follows:
   2. Expenditures made by the [division for youth]  OFFICE  OF  CHILDREN
 AND  FAMILY  SERVICES  for  care,  maintenance and supervision furnished
 youth,  including  alleged  and  adjudicated  juvenile  delinquents  and
 persons  in  need of supervision, placed or referred, pursuant to titles
 two or three of this article, and juvenile offenders, YOUTHFUL OFFENDERS
 AND ADOLESCENT OFFENDERS committed pursuant to [section  70.05  of]  the
 penal  law,  in the [division's] OFFICE'S programs and facilities, shall
 be subject to reimbursement to the state by the social services district
 from which the youth was placed or by the social  services  district  in
 which  the  juvenile  offender  resided  at  the  time of commitment, in
 accordance with this section  and  the  regulations  of  the  [division]
 OFFICE, as follows: fifty percent of the amount expended for care, main-
 tenance and supervision of local charges including juvenile offenders.
   § 82-b. Subdivision A of section 218-a of the county law is amended by
 adding a new paragraph 6 to read as follows:
   6.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF LAW, COMMENCING OCTOBER
 FIRST, TWO  THOUSAND  EIGHTEEN,  A  COUNTY  MUST  PROVIDE  FOR  ADEQUATE
 DETENTION  OF ALLEGED OR CONVICTED ADOLESCENT OFFENDERS IN A SPECIALIZED
 SECURE DETENTION FACILITY FOR OLDER YOUTH WHO ARE ALLEGED  OR  CONVICTED
 OF  COMMITTING  AN  OFFENSE  WHEN  THEY  WERE  SIXTEEN  YEARS OF AGE AND
 COMMENCING OCTOBER FIRST, TWO THOUSAND NINETEEN, A COUNTY  MUST  PROVIDE
 FOR ADEQUATE DETENTION OF ALLEGED OR CONVICTED ADOLESCENT OFFENDERS IN A
 SPECIALIZED SECURE DETENTION FACILITY FOR OLDER YOUTH WHO ARE ALLEGED OR
 CONVICTED  OF  COMMITTING AN OFFENSE WHEN THEY WERE SIXTEEN OR SEVENTEEN
 YEARS OF AGE. SUCH FACILITY SHALL BE  CERTIFIED  AND  REGULATED  BY  THE
 OFFICE  OF  CHILDREN  AND  FAMILY SERVICES IN CONJUNCTION WITH THE STATE
 COMMISSION OF CORRECTION. SUCH FACILITY SHALL: (I) HAVE ENHANCED SECURI-
 TY FEATURES AND SPECIALLY TRAINED STAFF; AND (II)  BE  JOINTLY  ADMINIS-
 TERED  BY  THE AGENCY OF COUNTY GOVERNMENT DESIGNATED IN ACCORDANCE WITH
 SUBDIVISION A OF THIS SECTION AND THE APPLICABLE COUNTY  SHERIFF,  WHICH

 S. 2009--C                         247                        A. 3009--C
 
 BOTH  SHALL  HAVE  THE  POWER TO PERFORM ALL ACTS NECESSARY TO CARRY OUT
 THEIR DUTIES. THE COUNTY SHERIFF SHALL BE SUBJECT TO THE SAME LAWS  THAT
 APPLY  TO  THE  DESIGNATED  COUNTY  AGENCY  REGARDING THE PROTECTION AND
 CONFIDENTIALITY  OF THE INFORMATION ABOUT THE YOUTH IN SUCH FACILITY AND
 SHALL PREVENT ACCESS THERETO BY, OR THE DISTRIBUTION THEREOF TO, PERSONS
 NOT AUTHORIZED BY LAW.
   § 83. Intentionally omitted.
   § 84. Intentionally omitted.
   § 85. Intentionally omitted.
   § 86. Intentionally omitted.
   § 87. Intentionally omitted.
   § 88. Intentionally omitted.
   § 89. Intentionally omitted.
   § 90. Intentionally omitted.
   § 91. Intentionally omitted.
   § 92. Intentionally omitted.
   § 93. Intentionally omitted.
   § 94. Intentionally omitted.
   § 95. Intentionally omitted.
   § 96. Intentionally omitted.
   § 97. Intentionally omitted.
   § 98. Intentionally omitted.
   § 98-a. Intentionally omitted.
   § 98-b. Intentionally omitted.
   § 98-c. Intentionally omitted.
   § 99. Subdivision 1,  the  opening  paragraph  of  subdivision  2  and
 subparagraphs (i) and (iii) of paragraph (a) of subdivision 3 of section
 529-b of the executive law, as added by section 3 of subpart B of part Q
 of chapter 58 of the laws of 2011, are amended to read as follows:
   1.  (a) Notwithstanding any provision of law to the contrary, eligible
 expenditures by an eligible municipality for services to divert youth at
 risk of, alleged to  be,  or  adjudicated  as  juvenile  delinquents  or
 persons  alleged  or  adjudicated to be in need of supervision, or youth
 alleged to be or convicted as juvenile offenders, YOUTHFUL OFFENDERS  OR
 ADOLESCENT  OFFENDERS from placement in detention or in residential care
 shall be subject to state reimbursement under the supervision and treat-
 ment services for juveniles program for up to sixty-two percent  of  the
 municipality's  expenditures,  subject  to  available appropriations and
 exclusive of any federal funds made available for such purposes, not  to
 exceed  the municipality's distribution under the supervision and treat-
 ment services for juveniles program.
   (b) The state funds appropriated for  the  supervision  and  treatment
 services  for juveniles program shall be distributed to eligible munici-
 palities by the office of children and family services based on  a  plan
 developed  by  the  office  which  may  consider  historical information
 regarding the number of youth seen at probation intake  for  an  alleged
 act  of  delinquency,  the  number  of  youth remanded to detention, the
 number of juvenile delinquents placed with the  office,  the  number  of
 juvenile  delinquents and persons in need of supervision placed in resi-
 dential care with the municipality, the municipality's reduction in  the
 use of detention and residential placements, and other factors as deter-
 mined  by the office. Such plan developed by the office shall be subject
 to the approval of the director of the budget. The office is authorized,
 in its discretion, to make advance distributions to  a  municipality  in
 anticipation of state reimbursement.

 S. 2009--C                         248                        A. 3009--C
 
   As  used in this section, the term "municipality" shall mean a county,
 or a city having a population of one million or more,  and  "supervision
 and   treatment  services  for  juveniles"  shall  mean  community-based
 services or programs designed to safely maintain youth in the  community
 pending  a  family court disposition or conviction in criminal court and
 services or programs provided to youth adjudicated  as  juvenile  delin-
 quents  or  persons in need of supervision, or youth alleged to be juve-
 nile offenders, YOUTHFUL OFFENDERS OR ADOLESCENT  OFFENDERS  to  prevent
 residential  placement of such youth or a return to placement where such
 youth have been released to the community  from  residential  placement.
 Supervision and treatment services for juveniles may include but are not
 limited to services or programs that:
   (i)  an analysis that identifies the neighborhoods or communities from
 which the greatest number of juvenile delinquents and persons in need of
 supervision are remanded to detention or residentially placed;
   (iii) a description of how the  services  and  programs  proposed  for
 funding  will  reduce  the number of youth from the municipality who are
 detained and residentially OR OTHERWISE placed; how  such  services  and
 programs  are family-focused; and whether such services and programs are
 capable of being replicated across multiple sites;
   § 100. The opening paragraph and paragraph (a) of  subdivision  2  and
 subdivisions  5  and  6 of section 530 of the executive law, the opening
 paragraph of subdivision 2 as amended by section 4 of subpart B of  part
 Q  of  chapter 58 of the laws of 2011, paragraph (a) of subdivision 2 as
 amended by section 1 of part M of chapter 57 of the laws of 2012, subdi-
 vision 5 as amended by chapter 920 of the laws of 1982, subparagraphs 1,
 2 and 4 of paragraph (a) and paragraph (b) of subdivision 5  as  amended
 by  section  5 of subpart B of part Q of chapter 58 of the laws of 2011,
 and subdivision 6 as amended by chapter 880 of the  laws  of  1976,  are
 amended and a new subdivision 8 is added to read as follows:
   Expenditures made by municipalities in providing care, maintenance and
 supervision  to  youth  in  detention  facilities designated pursuant to
 sections seven hundred twenty and SECTION 305.2 of the family court  act
 and  certified by [the division for youth] OFFICE OF CHILDREN AND FAMILY
 SERVICES, shall be subject to reimbursement by the state, as follows:
   (a) Notwithstanding any provision of law  to  the  contrary,  eligible
 expenditures  by a municipality during a particular program year for the
 care, maintenance and supervision in foster care programs  certified  by
 the office of children and family services, certified or approved family
 boarding  homes,  and  non-secure  detention facilities certified by the
 office for those youth alleged to be persons in need of  supervision  or
 adjudicated  persons  in  need of supervision held pending transfer to a
 facility upon placement; and in secure and non-secure detention  facili-
 ties  certified  by  the  office in accordance with section five hundred
 three of this article for those youth  alleged  to  be  juvenile  delin-
 quents;  adjudicated  juvenile  delinquents  held  pending transfer to a
 facility upon placement, and juvenile delinquents held at the request of
 the office of children and family services pending extension  of  place-
 ment  hearings or release revocation hearings or while awaiting disposi-
 tion of such hearings; and youth alleged to be or convicted as  juvenile
 offenders,  YOUTHFUL OFFENDERS AND ADOLESCENT OFFENDERS shall be subject
 to state reimbursement for up to fifty  percent  of  the  municipality's
 expenditures,  exclusive  of  any  federal funds made available for such
 purposes, not to exceed the municipality's distribution from funds  that
 have  been  appropriated  specifically  therefor  for that program year.
 Municipalities shall implement the  use  of  detention  risk  assessment

 S. 2009--C                         249                        A. 3009--C
 
 instruments  in  a  manner  prescribed  by  the  office  so as to inform
 detention decisions.  Notwithstanding any other provision of  state  law
 to  the  contrary,  data  necessary  for  completion of a detention risk
 assessment  instrument  may  be shared among law enforcement, probation,
 courts, detention administrators, detention providers, and the  attorney
 for  the  child upon retention or appointment; solely for the purpose of
 accurate completion of such risk assessment instrument, and  a  copy  of
 the  completed detention risk assessment instrument shall be made avail-
 able to the applicable detention provider, the attorney  for  the  child
 and the court.
   5.  (a) Except as provided in paragraph (b) of this subdivision, care,
 maintenance and supervision for the purpose of this section  shall  mean
 and include only:
   (1)  temporary  care,  maintenance and supervision provided TO alleged
 juvenile delinquents and persons in need  of  supervision  in  detention
 facilities certified pursuant to sections seven hundred twenty and 305.2
 of  the  family court act by the office of children and family services,
 pending adjudication of alleged delinquency or alleged  need  of  super-
 vision by the family court, or pending transfer to institutions to which
 committed  or placed by such court or while awaiting disposition by such
 court after adjudication or held pursuant to a securing order of a crim-
 inal court if the person named therein as principal is  under  [sixteen]
 SEVENTEEN YEARS OF AGE; or[,]
   (1-A)  COMMENCING  ON  OCTOBER FIRST, TWO THOUSAND NINETEEN, TEMPORARY
 CARE, MAINTENANCE, AND SUPERVISION PROVIDED TO ALLEGED  JUVENILE  DELIN-
 QUENTS  IN  DETENTION FACILITIES CERTIFIED BY THE OFFICE OF CHILDREN AND
 FAMILY SERVICES, PENDING ADJUDICATION  OF  ALLEGED  DELINQUENCY  BY  THE
 FAMILY  COURT, OR PENDING TRANSFER TO INSTITUTIONS TO WHICH COMMITTED OR
 PLACED BY SUCH COURT OR WHILE AWAITING DISPOSITION BY SUCH  COURT  AFTER
 ADJUDICATION OR HELD PURSUANT TO A SECURING ORDER OF A CRIMINAL COURT IF
 THE PERSON NAMED THEREIN AS PRINCIPAL IS UNDER TWENTY-ONE; OR
   (2)  temporary  care,  maintenance  and  supervision provided juvenile
 delinquents in approved detention  facilities  at  the  request  of  the
 office  of children and family services pending release revocation hear-
 ings or while awaiting disposition after such hearings; or
   (3) temporary care, maintenance and supervision in approved  detention
 facilities for youth held pursuant to the family court act or the inter-
 state  compact  on juveniles, pending return to their place of residence
 or domicile[.]; OR
   (4)  temporary  care,  maintenance  and  supervision  provided   youth
 detained  in  foster  care  facilities  or  certified or approved family
 boarding homes pursuant to article seven of the family court act.
   (b) Payments made for reserved accommodations, whether or not in  full
 time  use,  approved  AND CERTIFIED by the office of children and family
 services and certified pursuant to sections  seven  hundred  twenty  and
 305.2 of the family court act, in order to assure that adequate accommo-
 dations  will  be  available for the immediate reception and proper care
 therein of youth for which detention costs are reimbursable pursuant  to
 paragraph  (a)  of this subdivision, shall be reimbursed as expenditures
 for care, maintenance and  supervision  under  the  provisions  of  this
 section,  provided  the  office  shall have given its prior approval for
 reserving such accommodations.
   6. The [director of the division for youth]  OFFICE  OF  CHILDREN  AND
 FAMILY  SERVICES may adopt, amend, or rescind all rules and regulations,
 subject to the approval of the director of the budget and  certification

 S. 2009--C                         250                        A. 3009--C
 
 to  the  chairmen  of  the  senate  finance  and assembly ways and means
 committees, necessary to carry out the provisions of this section.
   8. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ON OR AFTER JANUARY FIRST,
 TWO  THOUSAND  TWENTY, THE STATE SHALL NOT REIMBURSE FOR THE COST OF THE
 DETENTION OF ANY PERSON IN NEED OF SUPERVISION UNDER  ARTICLE  SEVEN  OF
 THE FAMILY COURT ACT.
   § 100-a. Section 153-k of the social services law is amended by adding
 a new subdivision 12 to read as follows:
   12.  NOTWITHSTANDING  ANY  LAW  TO  THE  CONTRARY, ON OR AFTER JANUARY
 FIRST, TWO THOUSAND TWENTY, THE STATE SHALL NOT REIMBURSE FOR  THE  COST
 OF  ANY  PLACEMENT OF PERSONS IN NEED OF SUPERVISION UNDER ARTICLE SEVEN
 OF THE FAMILY COURT ACT.
   § 100-b. Intentionally omitted.
   § 101. The executive law is amended by adding a new section  259-p  to
 read as follows:
   § 259-P. INTERSTATE DETENTION. (1) NOTWITHSTANDING ANY OTHER PROVISION
 OF LAW, A DEFENDANT SUBJECT TO SECTION TWO HUNDRED FIFTY-NINE-MM OF THIS
 ARTICLE,  MAY  BE  DETAINED  AS AUTHORIZED BY THE INTERSTATE COMPACT FOR
 ADULT OFFENDER SUPERVISION.
   (2) A DEFENDANT SHALL BE DETAINED AT A  LOCAL  CORRECTIONAL  FACILITY,
 EXCEPT AS OTHERWISE PROVIDED IN SUBDIVISION THREE OF THIS SECTION.
   (3)  (A)  A  DEFENDANT  SIXTEEN YEARS OF AGE OR YOUNGER, WHO ALLEGEDLY
 COMMITS A CRIMINAL ACT OR VIOLATION OF HIS  OR  HER  SUPERVISION  ON  OR
 AFTER  OCTOBER FIRST, TWO THOUSAND EIGHTEEN OR (B) A DEFENDANT SEVENTEEN
 YEARS OF AGE  OR  YOUNGER  WHO  ALLEGEDLY  COMMITS  A  CRIMINAL  ACT  OR
 VIOLATION OF HIS OR HER SUPERVISION ON OR AFTER OCTOBER FIRST, TWO THOU-
 SAND NINETEEN, SHALL BE DETAINED IN A JUVENILE DETENTION FACILITY.
   §  102.  Subdivision 4 of section 246 of the executive law, as amended
 by section 10 of part D of chapter 56 of the laws of 2010, is amended to
 read as follows:
   4.  An approved plan and compliance with  standards  relating  to  the
 administration  of probation services promulgated by the commissioner of
 the division of criminal justice services shall  be  a  prerequisite  to
 eligibility for state aid.
   The commissioner of the division of criminal justice services may take
 into  consideration  granting additional state aid from an appropriation
 made for state aid for county probation services  for  counties  or  the
 city of New York when a county or the city of New York demonstrates that
 additional  probation  services  were dedicated to intensive supervision
 programs[,] AND  intensive  programs  for  sex  offenders  [or  programs
 defined  as juvenile risk intervention services]. THE COMMISSIONER SHALL
 GRANT ADDITIONAL STATE AID FROM AN APPROPRIATION DEDICATED  TO  JUVENILE
 RISK  INTERVENTION  SERVICES COORDINATION BY PROBATION DEPARTMENTS WHICH
 SHALL INCLUDE, BUT NOT BE LIMITED TO, PROBATION SERVICES PERFORMED UNDER
 ARTICLE THREE OF THE FAMILY COURT ACT. The administration of such  addi-
 tional  grants  shall be made according to rules and regulations promul-
 gated by the commissioner of the division of criminal justice  services.
 Each  county  and  the  city  of New York shall certify the total amount
 collected pursuant to section two hundred fifty-seven-c of this chapter.
 The commissioner of the division  of  criminal  justice  services  shall
 thereupon  certify  to  the  comptroller for payment by the state out of
 funds appropriated for that purpose, the amount to which the  county  or
 the  city  of New York shall be entitled under this section. THE COMMIS-
 SIONER SHALL, SUBJECT  TO  AN  APPROPRIATION  MADE  AVAILABLE  FOR  SUCH
 PURPOSE,  ESTABLISH  AND  PROVIDE FUNDING TO PROBATION DEPARTMENTS FOR A
 CONTINUUM OF EVIDENCE-BASED INTERVENTION SERVICES FOR YOUTH  ALLEGED  OR

 S. 2009--C                         251                        A. 3009--C
 
 ADJUDICATED JUVENILE DELINQUENTS PURSUANT TO ARTICLE THREE OF THE FAMILY
 COURT ACT OR FOR ELIGIBLE YOUTH BEFORE OR SENTENCED UNDER THE YOUTH PART
 IN  ACCORDANCE  WITH  THE CRIMINAL PROCEDURE LAW.  SUCH ADDITIONAL STATE
 AID  SHALL  BE MADE IN AN AMOUNT NECESSARY TO PAY ONE HUNDRED PERCENT OF
 THE EXPENDITURES FOR EVIDENCE-BASED  PRACTICES  AND  JUVENILE  RISK  AND
 EVIDENCE-BASED  INTERVENTION SERVICES PROVIDED TO YOUTH SIXTEEN YEARS OF
 AGE OR OLDER WHEN SUCH SERVICES WOULD NOT OTHERWISE HAVE  BEEN  PROVIDED
 ABSENT THE PROVISIONS OF A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN
 THAT INCREASED THE AGE OF JUVENILE JURISDICTION.
   §  103.  The second undesignated paragraph of subdivision 4 of section
 246 of the executive law, as added by chapter 479 of the laws  of  1970,
 is amended to read as follows:
   [The  director  shall thereupon certify to the comptroller for payment
 by the state out of funds appropriated for that purpose, the  amount  to
 which  the  county  or the city of New York shall be entitled under this
 section.]
   THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES MAY TAKE
 INTO CONSIDERATION GRANTING ADDITIONAL STATE AID FROM  AN  APPROPRIATION
 MADE  FOR  STATE  AID  FOR COUNTY PROBATION SERVICES FOR COUNTIES OR THE
 CITY OF NEW YORK WHEN A COUNTY OR THE CITY OF NEW YORK DEMONSTRATES THAT
 ADDITIONAL PROBATION SERVICES WERE DEDICATED  TO  INTENSIVE  SUPERVISION
 PROGRAMS  AND  INTENSIVE  PROGRAMS FOR SEX OFFENDERS.   THE COMMISSIONER
 SHALL GRANT ADDITIONAL STATE AID  FROM  AN  APPROPRIATION  DEDICATED  TO
 JUVENILE  RISK  INTERVENTION  SERVICES COORDINATION BY PROBATION DEPART-
 MENTS WHICH SHALL INCLUDE, BUT NOT BE  LIMITED  TO,  PROBATION  SERVICES
 PERFORMED  UNDER  ARTICLE  THREE  OF THE FAMILY COURT ACT.  THE ADMINIS-
 TRATION OF SUCH ADDITIONAL GRANTS SHALL BE MADE ACCORDING TO  RULES  AND
 REGULATIONS  PROMULGATED BY THE COMMISSIONER OF THE DIVISION OF CRIMINAL
 JUSTICE SERVICES. EACH COUNTY AND THE CITY OF NEW YORK SHALL CERTIFY THE
 TOTAL AMOUNT COLLECTED PURSUANT TO SECTION TWO HUNDRED FIFTY-SEVEN-C  OF
 THIS  CHAPTER.  THE  COMMISSIONER  OF  THE  DIVISION OF CRIMINAL JUSTICE
 SERVICES SHALL THEREUPON CERTIFY TO THE COMPTROLLER FOR PAYMENT  BY  THE
 STATE  OUT  OF  FUNDS APPROPRIATED FOR THAT PURPOSE, THE AMOUNT TO WHICH
 THE COUNTY OR THE CITY OF NEW YORK SHALL BE ENTITLED UNDER THIS SECTION.
 THE COMMISSIONER SHALL, SUBJECT TO AN APPROPRIATION MADE  AVAILABLE  FOR
 SUCH PURPOSE, ESTABLISH AND PROVIDE FUNDING TO PROBATION DEPARTMENTS FOR
 A CONTINUUM OF EVIDENCE-BASED INTERVENTION SERVICES FOR YOUTH ALLEGED OR
 ADJUDICATED JUVENILE DELINQUENTS PURSUANT TO ARTICLE THREE OF THE FAMILY
 COURT ACT OR FOR ELIGIBLE YOUTH BEFORE OR SENTENCED UNDER THE YOUTH PART
 IN ACCORDANCE WITH THE CRIMINAL PROCEDURE LAW.
   §  104.  The state finance law is amended by adding a new section 54-m
 to read as follows:
   § 54-M. LOCAL SHARE REQUIREMENTS ASSOCIATED WITH INCREASING THE AGE OF
 JUVENILE JURISDICTION ABOVE FIFTEEN YEARS OF  AGE.  NOTWITHSTANDING  ANY
 OTHER  PROVISION  OF  LAW  TO THE CONTRARY, COUNTIES AND THE CITY OF NEW
 YORK SHALL NOT BE REQUIRED TO  CONTRIBUTE  A  LOCAL  SHARE  OF  ELIGIBLE
 EXPENDITURES  THAT WOULD NOT HAVE BEEN INCURRED ABSENT THE PROVISIONS OF
 A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT ADDED THIS  SECTION
 UNLESS THE MOST RECENT BUDGET ADOPTED BY A COUNTY THAT IS SUBJECT TO THE
 PROVISIONS  OF SECTION THREE-C OF THE GENERAL MUNICIPAL LAW EXCEEDED THE
 TAX LEVY LIMIT PRESCRIBED IN SUCH SECTION OR THE LOCAL GOVERNMENT IS NOT
 SUBJECT TO THE PROVISIONS OF SECTION THREE-C OF  THE  GENERAL  MUNICIPAL
 LAW;  PROVIDED, HOWEVER, THAT THE STATE BUDGET DIRECTOR SHALL BE AUTHOR-
 IZED TO WAIVE ANY LOCAL SHARE OF EXPENDITURES ASSOCIATED WITH A  CHAPTER
 OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT INCREASED THE AGE OF JUVENILE
 JURISDICTION  ABOVE  FIFTEEN  YEARS  OF AGE, UPON A SHOWING OF FINANCIAL

 S. 2009--C                         252                        A. 3009--C
 
 HARDSHIP BY A COUNTY OR THE CITY OF NEW YORK  UPON  APPLICATION  IN  THE
 FORM  AND MANNER PRESCRIBED BY THE DIVISION OF THE BUDGET. IN EVALUATING
 AN APPLICATION FOR A FINANCIAL  HARDSHIP  WAIVER,  THE  BUDGET  DIRECTOR
 SHALL  CONSIDER THE INCREMENTAL COST TO THE LOCALITY RELATED TO INCREAS-
 ING THE AGE OF JUVENILE JURISDICTION, CHANGES IN STATE  OR  FEDERAL  AID
 PAYMENTS,  AND  OTHER EXTRAORDINARY COSTS, INCLUDING THE OCCURRENCE OF A
 DISASTER AS DEFINED IN PARAGRAPH A OF SUBDIVISION TWO OF SECTION  TWENTY
 OF  THE  EXECUTIVE LAW, REPAIR AND MAINTENANCE OF INFRASTRUCTURE, ANNUAL
 GROWTH IN TAX RECEIPTS, INCLUDING PERSONAL INCOME,  BUSINESS  AND  OTHER
 TAXES,  PREPAYMENT  OF  DEBT  SERVICE  AND OTHER EXPENSES, OR SUCH OTHER
 FACTORS THAT THE DIRECTOR MAY DETERMINE.
   § 104-a. Notwithstanding any other provision of law to  the  contrary,
 in  accordance  with  the waiver provisions set forth in section 54-m of
 the state finance law, state funding shall be available for one  hundred
 percent  of  a  county's costs associated with transport of youth by the
 applicable county sheriff that would not otherwise have occurred  absent
 the provisions of the chapter of the laws of two thousand seventeen that
 added this section.
   § 104-b.  Notwithstanding any other provision of law; state reimburse-
 ment  relating  to  the  detention  and  placement of persons in need of
 supervision shall not be available for costs  on  or  after  January  1,
 2020.
   §  104-c.  1.  There  shall  be  a  "raise the age implementation task
 force," members of which will be assigned by  the  governor.  Such  task
 force  will be responsible for reporting to the governor, the speaker of
 the assembly and the temporary president of the senate  one  year  after
 the  effective  date  of the chapter of the laws of 2017 that added this
 section. The task force shall have the following duties:
   (A) monitoring the overall effectiveness of the law by  reviewing  the
 state's progress in implementing the major components;
   (B)  evaluating  the effectiveness of the local adoption and adherence
 to the provisions of the law; and
   (C) reviewing the sealing provisions including but not limited  to  an
 analysis  of the number of applicants, the number of individuals granted
 sealing, and the overall effectiveness of  the  law's  sealing  require-
 ments.
   2.  The  task  force  members  shall receive no remuneration for their
 services as members.
   3. The task force may create such committees as it deems necessary.
   4. The task force shall provide an initial report on their findings on
 or before August 1, 2019 with respect to the first phase of  implementa-
 tion  and an additional report one year after with respect to the second
 phase of implementation.
   § 105. Severability. If any clause, sentence, paragraph,  subdivision,
 section  or  part contained in any part of this act shall be adjudged by
 any court of competent jurisdiction to be invalid, such  judgment  shall
 not  affect,  impair,  or invalidate the remainder thereof, but shall be
 confined in its operation to the clause, sentence,  paragraph,  subdivi-
 sion, section or part contained in any part thereof directly involved in
 the  controversy  in which such judgment shall have been rendered. It is
 hereby declared to be the intent of the legislature that this act  would
 have  been enacted even if such invalid provisions had not been included
 herein.
   § 106. This act shall take effect immediately; provided that:
   a. sections forty-eight and  forty-eight-a  of  this  act  shall  take
 effect on the one hundred eightieth day after this act shall have become

 S. 2009--C                         253                        A. 3009--C
 
 a  law  and shall be deemed to apply to offenses committed prior to, on,
 or after such effective date;
   b.  sections  one  through thirty, thirty-one-a, thirty-one-b, thirty-
 two, thirty-five, thirty-six, thirty-eight, forty-a,  forty-one,  forty-
 three,  forty-four,  fifty-six,  fifty-six-a,  fifty-six-b, fifty-seven,
 fifty-nine,  sixty-one  through  sixty-three,  sixty-five,  sixty-seven,
 sixty-nine,  seventy,  seventy-two,  seventy-five through seventy-eight,
 seventy-nine, seventy-nine-b, eighty, eighty-one-b, eighty-two-a,  nine-
 ty-nine,  one  hundred,  one  hundred-a  and one hundred one of this act
 shall take effect October 1,  2018;  provided  however,  that  when  the
 applicability  of such provisions are based on the conviction of a crime
 or an act committed by a person who was seventeen years of  age  at  the
 time of such offense such provisions shall take effect October 1, 2019;
   c.  sections  one  hundred  two and one hundred four shall take effect
 April 1, 2018;
   d. the amendments to subdivision 4 of  section  353.5  of  the  family
 court  act  made  by section seventy-two of this act shall be subject to
 the expiration and reversion of such subdivision pursuant to section  11
 of  subpart  A  of part G of chapter 57 of the laws of 2012, as amended,
 when upon such date the provisions of section seventy-three of this  act
 shall take effect;
   e.  the amendments to the second undesignated paragraph of subdivision
 4 of section 246 of the executive law made by section one hundred two of
 this act shall be subject to the expiration and reversion of such undes-
 ignated paragraph as provided in subdivision  (aa)  of  section  427  of
 chapter  55 of the laws of 1992, as amended, when upon such date section
 one hundred three of this act shall take effect;  provided,  however  if
 such  date  of  reversion is prior to April 1, 2018, section one hundred
 three of this act shall take effect on April 1, 2018; and
   f. the amendments to section 153-k of the social services law made  by
 section  one  hundred-a  of this act shall not effect the repeal of such
 section and shall be deemed to repeal therewith.
 
                                 PART XXX
 
   Section 1. The state comptroller is hereby authorized and directed  to
 loan  money in accordance with the provisions set forth in subdivision 5
 of section 4 of the state finance law  to  the  following  funds  and/or
 accounts:
   1. Proprietary vocational school supervision account (20452).
   2. Local government records management account (20501).
   3. Child health plus program account (20810).
   4. EPIC premium account (20818).
   5. Education - New (20901).
   6. VLT - Sound basic education fund (20904).
   7.   Sewage  treatment  program  management  and  administration  fund
 (21000).
   8. Hazardous bulk storage account (21061).
   9. Federal grants indirect cost recovery account (21065).
   10. Low level radioactive waste account (21066).
   11. Recreation account (21067).
   12. Public safety recovery account (21077).
   13. Environmental regulatory account (21081).
   14. Natural resource account (21082).
   15. Mined land reclamation program account (21084).
   16. Great lakes restoration initiative account (21087).

 S. 2009--C                         254                        A. 3009--C

   17. Environmental protection and oil spill compensation fund (21200).
   18. Public transportation systems account (21401).
   19. Metropolitan mass transportation (21402).
   20. Operating permit program account (21451).
   21. Mobile source account (21452).
   22.   Statewide  planning  and  research  cooperative  system  account
 (21902).
   23. New York state thruway authority account (21905).
   24. Mental hygiene program fund account (21907).
   25. Mental hygiene patient income account (21909).
   26. Financial control board account (21911).
   27. Regulation of racing account (21912).
   28. New York Metropolitan Transportation Council account (21913).
   29. State university dormitory income reimbursable account (21937).
   30. Criminal justice improvement account (21945).
   31. Environmental laboratory reference fee account (21959).
   32. Clinical laboratory reference system assessment account (21962).
   33. Indirect cost recovery account (21978).
   34. High school equivalency program account (21979).
   35. Multi-agency training account (21989).
   36.  Interstate  reciprocity  for  post-secondary  distance  education
 account (23800).
   37. Bell jar collection account (22003).
   38. Industry and utility service account (22004).
   39. Real property disposition account (22006).
   40. Parking account (22007).
   41. Asbestos safety training program account (22009).
   42. Batavia school for the blind account (22032).
   43. Investment services account (22034).
   44. Surplus property account (22036).
   45. Financial oversight account (22039).
   46. Regulation of Indian gaming account (22046).
   47. Rome school for the deaf account (22053).
   48. Seized assets account (22054).
   49. Administrative adjudication account (22055).
   50. Federal salary sharing account (22056).
   51. New York City assessment account (22062).
   52. Cultural education account (22063).
   53. Local services account (22078).
   54. DHCR mortgage servicing account (22085).
   55. Department of motor vehicles compulsory insurance account (22087).
   56. Housing indirect cost recovery account (22090).
   57. DHCR-HCA application fee account (22100).
   58. Low income housing monitoring account (22130).
   59. Corporation administration account (22135).
   60. Montrose veteran's home account (22144).
   61. Deferred compensation administration account (22151).
   62. Rent revenue other New York City account (22156).
   63. Rent revenue account (22158).
   64. Tax revenue arrearage account (22168).
   65. State university general income offset account (22654).
   66. Lake George park trust fund account (22751).
   67. State police motor vehicle law enforcement account (22802).
   68. Highway safety program account (23001).
   69. DOH drinking water program account (23102).
   70. NYCCC operating offset account (23151).

 S. 2009--C                         255                        A. 3009--C
 
   71. Commercial gaming revenue account (23701).
   72. Commercial gaming regulation account (23702).
   73. Highway use tax administration account (23801).
   74. Highway and bridge capital account (30051).
   75. Aviation purpose account (30053).
   76. State university residence hall rehabilitation fund (30100).
   77. State parks infrastructure account (30351).
   78. Clean water/clean air implementation fund (30500).
   79. Hazardous waste remedial cleanup account (31506).
   80. Youth facilities improvement account (31701).
   81. Housing assistance fund (31800).
   82. Housing program fund (31850).
   83. Highway facility purpose account (31951).
   84. Information technology capital financing account (32215).
   85. New York racing account (32213).
   86. Capital miscellaneous gifts account (32214).
   87. New York environmental protection and spill remediation account.
   88. Mental hygiene facilities capital improvement fund (32300).
   89. Correctional facilities capital improvement fund (32350).
   90. New York State Storm Recovery Capital Fund (33000).
   91. OGS convention center account (50318).
   92. Empire Plaza Gift Shop (50327).
   93. Centralized services fund (55000).
   94. Archives records management account (55052).
   95. Federal single audit account (55053).
   96. Civil service EHS occupational health program account (55056).
   97. Banking services account (55057).
   98. Cultural resources survey account (55058).
   99. Neighborhood work project account (55059).
   100. Automation & printing chargeback account (55060).
   101. OFT NYT account (55061).
   102. Data center account (55062).
   103. Intrusion detection account (55066).
   104. Domestic violence grant account (55067).
   105. Centralized technology services account (55069).
   106. Labor contact center account (55071).
   107. Human services contact center account (55072).
   108. Tax contact center account (55073).
   109. Executive direction internal audit account (55251).
   110. CIO Information technology centralized services account (55252).
   111. Health insurance internal service account (55300).
   112.  Civil  service employee benefits division administrative account
 (55301).
   113. Correctional industries revolving fund (55350).
   114. Employees health insurance account (60201).
   115. Medicaid management information system escrow fund (60900).
   116. Department of law civil recoveries account.
   § 1-a. The state comptroller is hereby authorized and directed to loan
 money in accordance with the provisions set forth in  subdivision  5  of
 section  4  of the state finance law to any account within the following
 federal funds, provided the comptroller has made  a  determination  that
 sufficient  federal grant award authority is available to reimburse such
 loans:
   1. Federal USDA-food and nutrition services fund (25000).
   2. Federal health and human services fund (25100).
   3. Federal education fund (25200).

 S. 2009--C                         256                        A. 3009--C
 
   4. Federal block grant fund (25250).
   5. Federal miscellaneous operating grants fund (25300).
   6. Federal unemployment insurance administration fund (25900).
   7. Federal unemployment insurance occupational training fund (25950).
   8. Federal emergency employment act fund (26000).
   9. Federal capital projects fund (31350).
   §  2.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, on
 or before March 31, 2018, up to the unencumbered balance or the  follow-
 ing amounts:
   Economic Development and Public Authorities:
   1.  $175,000  from the miscellaneous special revenue fund, underground
 facilities safety training account (22172), to the general fund.
   2. An amount up to the unencumbered  balance  from  the  miscellaneous
 special  revenue  fund, business and licensing services account (21977),
 to the general fund.
   3. $14,810,000 from  the  miscellaneous  special  revenue  fund,  code
 enforcement account (21904), to the general fund.
   4.  $3,000,000  from  the  general  fund  to the miscellaneous special
 revenue fund, tax revenue arrearage account (22168).
   Education:
   1. $2,394,714,000 from the general fund to  the  state  lottery  fund,
 education  account (20901), as reimbursement for disbursements made from
 such fund for supplemental aid to education pursuant to section 92-c  of
 the  state  finance  law  that are in excess of the amounts deposited in
 such fund for such purposes pursuant to section 1612 of the tax law.
   2. $966,634,000 from the general fund to the state lottery  fund,  VLT
 education  account (20904), as reimbursement for disbursements made from
 such fund for supplemental aid to education pursuant to section 92-c  of
 the  state  finance  law  that are in excess of the amounts deposited in
 such fund for such purposes pursuant to section 1612 of the tax law.
   3. Moneys from the state lottery fund (20900) up to an amount deposit-
 ed in such fund pursuant to section 1612 of the tax law in excess of the
 current year appropriation for supplemental aid to education pursuant to
 section 92-c of the state finance law.
   4. $300,000 from the New York state local government  records  manage-
 ment  improvement  fund,  local  government  records  management account
 (20501), to the New York state archives partnership trust fund, archives
 partnership trust maintenance account (20351).
   5. $900,000 from the general fund to the miscellaneous special revenue
 fund, Batavia school for the blind account (22032).
   6. $900,000 from the general fund to the miscellaneous special revenue
 fund, Rome school for the deaf account (22053).
   7. $343,400,000  from  the  state  university  dormitory  income  fund
 (40350)  to  the  miscellaneous  special  revenue fund, state university
 dormitory income reimbursable account (21937).
   8. $20,000,000 from any of  the  state  education  department  special
 revenue  and internal service funds to the miscellaneous special revenue
 fund, indirect cost recovery account (21978).
   9. $8,318,000 from the general fund to  the  state  university  income
 fund,  state  university  income offset account (22654), for the state's
 share of repayment of the STIP loan.
   10. $40,000,000 from the state university income fund, state universi-
 ty hospitals income reimbursable account (22656) to the general fund for

 S. 2009--C                         257                        A. 3009--C
 
 hospital debt service for the period April 1,  2017  through  March  31,
 2018.
   11.  An  amount  up  to $13,540,000 from the general fund to the state
 university  income  fund,  state  university  general  revenue   account
 (22653).
   Environmental Affairs:
   1.  $16,000,000  from any of the department of environmental conserva-
 tion's special revenue federal funds to the  environmental  conservation
 special revenue fund, federal indirect recovery account (21065).
   2.  $5,000,000  from  any of the department of environmental conserva-
 tion's special revenue federal funds to the conservation fund (21150) as
 necessary to avoid diversion of conservation funds.
   3. $3,000,000 from any of the office of parks, recreation and historic
 preservation capital projects federal funds and special revenue  federal
 funds  to the miscellaneous special revenue fund, federal grant indirect
 cost recovery account (22188).
   4. $1,000,000 from any of the office of parks, recreation and historic
 preservation special revenue federal funds to the miscellaneous  special
 revenue fund, I love NY water account (21930).
   5.  $28,000,000  from the general fund to the environmental protection
 fund, environmental protection fund transfer account (30451).
   6. $1,800,000 from the general fund to the  hazardous  waste  remedial
 fund, hazardous waste oversight and assistance account (31505).
   Family Assistance:
   1.  $7,000,000 from any of the office of children and family services,
 office of temporary and disability assistance, or department  of  health
 special  revenue  federal funds and the general fund, in accordance with
 agreements with social services districts, to the miscellaneous  special
 revenue  fund, office of human resources development state match account
 (21967).
   2. $4,000,000 from any of the office of children and  family  services
 or office of temporary and disability assistance special revenue federal
 funds to the miscellaneous special revenue fund, family preservation and
 support services and family violence services account (22082).
   3. $18,670,000 from any of the office of children and family services,
 office  of  temporary and disability assistance, or department of health
 special revenue federal  funds  and  any  other  miscellaneous  revenues
 generated  from  the operation of office of children and family services
 programs to the general fund.
   4. $140,000,000 from any of the office  of  temporary  and  disability
 assistance  or department of health special revenue funds to the general
 fund.
   5. $2,500,000 from any of  the  office  of  temporary  and  disability
 assistance  special  revenue  funds to the miscellaneous special revenue
 fund, office of temporary  and  disability  assistance  program  account
 (21980).
   6.  $7,400,000 from any of the office of children and family services,
 office of temporary and disability assistance, department of labor,  and
 department  of  health  special  revenue  federal funds to the office of
 children and family services miscellaneous special revenue fund,  multi-
 agency training contract account (21989).
   7.  $65,000,000  from  the  miscellaneous  special revenue fund, youth
 facility per diem account (22186), to the general fund.
   8. $621,850 from the general fund to the combined gifts,  grants,  and
 bequests fund, WB Hoyt Memorial account (20128).

 S. 2009--C                         258                        A. 3009--C
 
   9.  $3,100,000  from  the  miscellaneous  special  revenue fund, state
 central registry (22028), to the general fund.
   General Government:
   1. $1,566,000 from the miscellaneous special revenue fund, examination
 and miscellaneous revenue account (22065) to the general fund.
   2.  $8,083,000 from the general fund to the health insurance revolving
 fund (55300).
   3. $192,400,000  from  the  health  insurance  reserve  receipts  fund
 (60550) to the general fund.
   4. $150,000 from the general fund to the not-for-profit revolving loan
 fund (20650).
   5. $150,000 from the not-for-profit revolving loan fund (20650) to the
 general fund.
   6.  $3,000,000  from  the  miscellaneous special revenue fund, surplus
 property account (22036), to the general fund.
   7. $19,000,000 from the miscellaneous special  revenue  fund,  revenue
 arrearage account (22024), to the general fund.
   8.  $1,826,000  from  the  miscellaneous special revenue fund, revenue
 arrearage account (22024), to the miscellaneous  special  revenue  fund,
 authority budget office account (22138).
   9.  $1,000,000  from  the  miscellaneous special revenue fund, parking
 services account (22007), to the general fund, for the purpose of  reim-
 bursing the costs of debt service related to state parking facilities.
   10.  $21,783,000  from  the  general  fund to the centralized services
 fund, COPS account (55013).
   11. $8,960,000 from the general fund to the agencies internal  service
 fund,  central  technology  services account (55069), for the purpose of
 enterprise technology projects.
   12. $15,000,000 from the miscellaneous special revenue fund,  workers'
 compensation  account  (21995),  to  the  miscellaneous capital projects
 fund, workers' compensation  board  IT  business  process  design  fund,
 (32218).
   Health:
   1.  A transfer from the general fund to the combined gifts, grants and
 bequests fund, breast cancer research and education account (20155),  up
 to  an  amount  equal  to  the  monies collected and deposited into that
 account in the previous fiscal year.
   2. A transfer from the general fund to the combined gifts, grants  and
 bequests  fund,  prostate  cancer  research,  detection,  and  education
 account (20183), up to an amount  equal  to  the  moneys  collected  and
 deposited into that account in the previous fiscal year.
   3.  A transfer from the general fund to the combined gifts, grants and
 bequests fund,  Alzheimer's  disease  research  and  assistance  account
 (20143),  up  to  an  amount equal to the moneys collected and deposited
 into that account in the previous fiscal year.
   4. $30,555,000 from the HCRA resources fund (20800) to  the  miscella-
 neous  special  revenue  fund, empire state stem cell trust fund account
 (22161).
   5. $6,000,000 from the miscellaneous special revenue fund, certificate
 of need account (21920), to the  miscellaneous  capital  projects  fund,
 healthcare IT capital subfund (32216).
   6.  $2,000,000  from  the  miscellaneous  special  revenue fund, vital
 health records account (22103), to the  miscellaneous  capital  projects
 fund, healthcare IT capital subfund (32216)

 S. 2009--C                         259                        A. 3009--C
 
   7.  $2,000,000  from  the  miscellaneous special revenue fund, profes-
 sional medical conduct account (22088),  to  the  miscellaneous  capital
 projects fund, healthcare IT capital subfund (32216).
   8.  $76,021,000  from  the  HCRA resources fund (20800) to the capital
 projects fund (30000).
   9. $4,540,000 from the general fund to  the  medical  marihuana  trust
 fund, health operation and oversight account (23755).
   10.  $1,086,000  from  the miscellaneous special revenue fund, certif-
 icate of need account (21920), to the general fund.
   Labor:
   1. $400,000 from the miscellaneous special revenue fund, DOL  fee  and
 penalty account (21923), to the child performer's protection fund, child
 performer protection account (20401).
   2. $8,400,000 from the miscellaneous special revenue fund, DOL fee and
 penalty account (21923), to the general fund.
   3.  $3,300,000  from  the  unemployment insurance interest and penalty
 fund,  unemployment  insurance  special  interest  and  penalty  account
 (23601), to the general fund.
   4.  $5,000,000  from  the miscellaneous special revenue fund, workers'
 compensation account (21995), to  the  training  and  education  program
 occupation  safety  and  health  fund,  occupational  health  inspection
 account (21252).
   Mental Hygiene:
   1. $10,000,000 from the miscellaneous  special  revenue  fund,  mental
 hygiene  patient  income  account  (21909), to the miscellaneous special
 revenue fund, federal salary sharing account (22056).
   2. $1,800,000,000 from the general fund to the  miscellaneous  special
 revenue fund, mental hygiene patient income account (21909).
   3.  $1,700,000,000  from the general fund to the miscellaneous special
 revenue fund, mental hygiene program fund account (21907).
   4. $100,000,000 from the miscellaneous special  revenue  fund,  mental
 hygiene program fund account (21907), to the general fund.
   5.  $100,000,000  from  the miscellaneous special revenue fund, mental
 hygiene patient income account (21909), to the general fund.
   6. $3,800,000 from the  miscellaneous  special  revenue  fund,  mental
 hygiene patient income account (21909), to the agencies internal service
 fund, civil service EHS occupational health program account (55056).
   7.  $11,500,000  from  the chemical dependence service fund, substance
 abuse services fund  account  (22700),  to  the  capital  projects  fund
 (30000).
   8.  $3,500,000  from  the  chemical dependence service fund, substance
 abuse services fund account  (22700),  to  the  mental  hygiene  capital
 improvement fund (32305).
   9.  $15,000,000  from  the chemical dependence service fund, substance
 abuse services fund account (22700), to the miscellaneous special reven-
 ue fund, mental hygiene program fund account (21907).
   Public Protection:
   1. $1,350,000 from the miscellaneous special revenue  fund,  emergency
 management account (21944), to the general fund.
   2.  $2,087,000  from  the  general  fund  to the miscellaneous special
 revenue fund, recruitment incentive account (22171).
   3. $12,000,000 from the general fund to  the  correctional  industries
 revolving   fund,   correctional  industries  internal  service  account
 (55350).
   4. $3,000,000 from the federal miscellaneous  operating  grants  fund,
 DMNA damage account (25324), to the general fund.

 S. 2009--C                         260                        A. 3009--C
 
   5.  $8,600,000  from  the miscellaneous special revenue fund, criminal
 justice improvement account (21945), to the general fund.
   6.  $112,420,000  from  the state police motor vehicle law enforcement
 and motor vehicle theft  and  insurance  fraud  prevention  fund,  state
 police  motor  vehicle  enforcement account (22802), to the general fund
 for state operation expenses of the division of state police.
   7. A transfer of  the  unencumbered  balance  from  the  miscellaneous
 special  revenue  fund,  seized assets account (22061), to the miscella-
 neous special revenue fund, seized assets account (22054).
   8. $117,500,000 from the general fund to the  correctional  facilities
 capital improvement fund (32350).
   9.  $5,000,000  from  the  general  fund  to the dedicated highway and
 bridge trust fund (30050) for the purpose of work zone safety activities
 provided by the division of state police for the department of transpor-
 tation.
   10. $5,238,000 from the miscellaneous special revenue fund,  statewide
 public  safety  communications  account (22123), to the capital projects
 fund (30000).
   11. $9,545,000 from the  miscellaneous  special  revenue  fund,  legal
 services assistance account (22096), to the general fund.
   12.  $1,000,000 from the general fund to the agencies internal service
 fund, neighborhood work project account (55059).
   13. $5,940,556 from the miscellaneous special  revenue  fund,  finger-
 print identification & technology account (21950), to the general fund.
   14. $4,300,000 from the state police motor vehicle law enforcement and
 motor  vehicle  theft and insurance fraud prevention fund, motor vehicle
 theft and insurance fraud account (22801), to the general fund.
   15. $50,000,000 from the miscellaneous special  revenue  fund,  public
 safety communications account (22123), to the general fund.
   16.  $2,000,000  from  the  general  fund to the miscellaneous special
 revenue fund, crimes against revenue program account (22015).
   Transportation:
   1. $17,672,000 from the federal miscellaneous operating grants fund to
 the miscellaneous special revenue fund, New York Metropolitan  Transpor-
 tation Council account (21913).
   2. $20,147,000 from the federal capital projects fund to the miscella-
 neous special revenue fund, New York Metropolitan Transportation Council
 account (21913).
   3.  $15,058,017 from the general fund to the mass transportation oper-
 ating assistance fund, public transportation systems  operating  assist-
 ance account (21401), of which $12,000,000 constitutes the base need for
 operations.
   4.  $720,000,000  from  the  general fund to the dedicated highway and
 bridge trust fund (30050).
   5. $3,662,000 from the miscellaneous special  revenue  fund,  accident
 prevention  course program account (22094), to the dedicated highway and
 bridge trust fund (30050).
   6. $3,065,000 from the miscellaneous special revenue fund,  motorcycle
 safety  account  (21976), to the dedicated highway and bridge trust fund
 (30050).
   7. $244,250,000 from the general fund to the MTA financial  assistance
 fund, mobility tax trust account (23651).
   8. $5,000,000 from the miscellaneous special revenue fund, transporta-
 tion  regulation  account  (22067)  to  the dedicated highway and bridge
 trust fund (30050), for disbursements made  from  such  fund  for  motor
 carrier  safety that are in excess of the amounts deposited in the dedi-

 S. 2009--C                         261                        A. 3009--C
 
 cated highway and bridge trust fund (30050) for such purpose pursuant to
 section 94 of the transportation law.
   9. $114,000 from the miscellaneous special revenue fund, seized assets
 account (21906), to the dedicated highway and bridge trust fund (30050).
   10.  $500,000  from the clean air fund, mobile source account (21452),
 to the general fund.
   11. $3,000,000 from the miscellaneous special  revenue  fund,  traffic
 adjudication account (22055), to the general fund.
   12.  $121,548,000  from  the  mass transportation operating assistance
 fund, metropolitan  mass  transportation  operating  assistance  account
 (21402), to the capital projects fund (30000).
   Miscellaneous:
   1. $250,000,000 from the general fund to any funds or accounts for the
 purpose of reimbursing certain outstanding accounts receivable balances.
   2.  $500,000,000  from  the general fund to the debt reduction reserve
 fund (40000).
   3. $450,000,000 from the New York state storm  recovery  capital  fund
 (33000) to the revenue bond tax fund (40152).
   4.  $15,500,000  from  the general fund, community projects account GG
 (10256), to the general fund, state purposes account (10050).
   § 3. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, on or before March 31, 2018:
   1.  Upon request of the commissioner of environmental conservation, up
 to $12,234,600 from revenues credited to any of the department of  envi-
 ronmental  conservation special revenue funds, including $4,000,000 from
 the environmental protection and oil spill  compensation  fund  (21200),
 and  $1,793,600 from the conservation fund (21150), to the environmental
 conservation special revenue fund, indirect charges account (21060).
   2. Upon request of the commissioner of agriculture and markets, up  to
 $3,000,000  from  any special revenue fund or enterprise fund within the
 department of agriculture and markets to the general fund, to pay appro-
 priate administrative expenses.
   3. Upon request of the commissioner of agriculture and markets, up  to
 $2,000,000  from  the state exposition special fund, state fair receipts
 account (50051) to the miscellaneous capital projects fund,  state  fair
 capital improvement account (32208).
   4.  Upon  request  of  the commissioner of the division of housing and
 community renewal, up to $6,221,000 from revenues credited to any  divi-
 sion  of  housing and community renewal federal or miscellaneous special
 revenue fund to the miscellaneous special revenue fund, housing indirect
 cost recovery account (22090).
   5. Upon request of the commissioner of the  division  of  housing  and
 community  renewal, up to $5,500,000 may be transferred from any miscel-
 laneous special revenue  fund  account,  to  any  miscellaneous  special
 revenue fund.
   6.  Upon  request  of the commissioner of health up to $8,500,000 from
 revenues credited to any of the department of health's  special  revenue
 funds, to the miscellaneous special revenue fund, administration account
 (21982).
   § 4. On or before March 31, 2018, the comptroller is hereby authorized
 and  directed  to  deposit  earnings  that would otherwise accrue to the
 general fund that are attributable to the operation of section  98-a  of
 the  state  finance  law, to the agencies internal service fund, banking
 services account (55057), for the purpose  of  meeting  direct  payments
 from such account.

 S. 2009--C                         262                        A. 3009--C
 
   §  5.  Notwithstanding  any law to the contrary, upon the direction of
 the director of the budget and upon requisition by the state  university
 of  New  York,  the  dormitory  authority  of  the  state of New York is
 directed to transfer, up to $22,000,000 in revenues generated  from  the
 sale of notes or bonds, the state university income fund general revenue
 account  (22653)  for  reimbursement  of  bondable equipment for further
 transfer to the state's general fund.
   § 6. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget and
 upon  consultation  with  the  state university chancellor or his or her
 designee, on or before March 31, 2018, up to $16,000,000 from the  state
 university  income  fund  general  revenue  account (22653) to the state
 general fund for debt service costs related to campus supported  capital
 project  costs  for  the  NY-SUNY  2020  challenge  grant program at the
 University at Buffalo.
   § 7. Notwithstanding any law to the contrary, and in  accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget and
 upon  consultation  with  the  state university chancellor or his or her
 designee, on or before March 31, 2018, up to $6,500,000 from  the  state
 university  income  fund  general  revenue  account (22653) to the state
 general fund for debt service costs related to campus supported  capital
 project  costs  for  the  NY-SUNY  2020  challenge  grant program at the
 University at Albany.
   § 8. Notwithstanding any law to the  contrary,  the  state  university
 chancellor or his or her designee is authorized and directed to transfer
 estimated  tuition revenue balances from the state university collection
 fund (61000) to the  state  university  income  fund,  state  university
 general revenue offset account (22655) on or before March 31, 2018.
   §  9.  Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, up
 to $78,564,000 from the general fund  to  the  state  university  income
 fund,  state  university  hospitals  income reimbursable account (22656)
 during the period July 1, 2017 through June 30, 2018 to reflect  ongoing
 state  subsidy  of  SUNY  hospitals and to pay costs attributable to the
 SUNY hospitals' state agency status.
   § 10. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the director of the budget, up
 to  $1,015,990,300  from the general fund to the state university income
 fund, state university general revenue offset account (22655) during the
 period of July 1, 2017 through June 30, 2018 to  support  operations  at
 the state university.
   §  11. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state financial law, the comptroller is hereby  author-
 ized and directed to transfer, upon request of the director of the budg-
 et,  up to $100,000 from the general fund to the state university income
 fund, state university general revenue offset account (22655) during the
 period of April 1, 2017 through June 30, 2017 to support  operations  at
 the state university.
   §  11-a.  Notwithstanding  any  law to the contrary, and in accordance
 with section 4 of the state financial law,  the  comptroller  is  hereby
 authorized and directed to transfer, upon request of the director of the
 budget,  up to $20,000,000 from the general fund to the state university

 S. 2009--C                         263                        A. 3009--C
 
 income fund, state university general  revenue  offset  account  (22655)
 during the period of July 1, 2017 to June 30, 2018 to support operations
 at  the  state  university  in accordance with the maintenance of effort
 pursuant to clause (v) of subparagraph (4) of paragraph h of subdivision
 2 of section 355 of the education law.
   §  12. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, upon request of the state university  chancel-
 lor  or his or her designee, up to $55,000,000 from the state university
 income fund, state  university  hospitals  income  reimbursable  account
 (22656),  for  services  and expenses of hospital operations and capital
 expenditures at the state university hospitals; and the state university
 income fund, Long Island veterans' home account  (22652)  to  the  state
 university capital projects fund (32400) on or before June 30, 2018.
   §  13. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller, after  consultation
 with  the  state university chancellor or his or her designee, is hereby
 authorized and directed to transfer moneys, in the first instance,  from
 the  state  university  collection fund, Stony Brook hospital collection
 account (61006), Brooklyn hospital collection account (61007), and Syra-
 cuse hospital collection account (61008) to the state university  income
 fund,  state university hospitals income reimbursable account (22656) in
 the event insufficient funds  are  available  in  the  state  university
 income  fund,  state  university  hospitals  income reimbursable account
 (22656) to permit the full transfer of moneys authorized  for  transfer,
 to  the  general  fund  for  payment of debt service related to the SUNY
 hospitals. Notwithstanding any law to the contrary, the  comptroller  is
 also  hereby  authorized and directed, after consultation with the state
 university chancellor or his or her designee, to  transfer  moneys  from
 the  state  university  income fund to the state university income fund,
 state university hospitals income reimbursable account  (22656)  in  the
 event  insufficient  funds  are available in the state university income
 fund, state university hospitals income reimbursable account (22656)  to
 pay  hospital  operating  costs or to permit the full transfer of moneys
 authorized for transfer, to the general fund for payment of debt service
 related to the SUNY hospitals on or before March 31, 2018.
   § 14. Notwithstanding any law to the contrary, upon the  direction  of
 the director of the budget and the chancellor of the state university of
 New York or his or her designee, and in accordance with section 4 of the
 state  finance law, the comptroller is hereby authorized and directed to
 transfer monies from the state university dormitory income fund  (40350)
 to  the state university residence hall rehabilitation fund (30100), and
 from the state university residence hall rehabilitation fund (30100)  to
 the  state university dormitory income fund (40350), in an amount not to
 exceed $80 million from each fund.
   § 15. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed  to  transfer  monies, upon request of the director of the
 budget, on or before March 31, 2018, from and to any  of  the  following
 accounts: the miscellaneous special revenue fund, patient income account
 (21909),  the miscellaneous special revenue fund, mental hygiene program
 fund account (21907), the miscellaneous special  revenue  fund,  federal
 salary  sharing account (22056), or the general fund in any combination,
 the aggregate of which shall not exceed $350 million.
   § 16. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized

 S. 2009--C                         264                        A. 3009--C
 
 and  directed to transfer, at the request of the director of the budget,
 up to $500 million from the unencumbered balance of any special  revenue
 fund  or  account,  agency  fund  or  account,  internal service fund or
 account,  enterprise  fund  or account, or any combination of such funds
 and accounts, to the general fund. The amounts transferred  pursuant  to
 this authorization shall be in addition to any other transfers expressly
 authorized  in  the  2017-18  budget. Transfers from federal funds, debt
 service funds, capital projects funds, the community projects  fund,  or
 funds  that would result in the loss of eligibility for federal benefits
 or federal funds pursuant to federal law, rule, or regulation as assent-
 ed to in chapter 683 of the laws of 1938 and chapter 700 of the laws  of
 1951 are not permitted pursuant to this authorization.
   §  16-a.  Notwithstanding  any  law to the contrary, and in accordance
 with section 4 of the state  finance  law,  the  comptroller  is  hereby
 authorized  an  directed  to transfer, at the request of the director of
 the budget, up to twenty million dollars ($20,000,000) from the unencum-
 bered balance of any special revenue fund or account, or combination  of
 funds  and  accounts, to the community projects fund. The amounts trans-
 ferred pursuant to this authorization shall be in addition to any  other
 transfers  expressly  authorized  in  the 2017-18 budget. Transfers from
 federal funds, debt services funds, capital project funds, or funds that
 would result in the loss of eligibility for federal benefits or  federal
 funds  pursuant  to  federal  law, rule, or regulation as assented to in
 chapter 683 of the laws of 1938 and chapter 700 of the laws of 1951  are
 not permitted pursuant to this authorization. The director of the budget
 shall  (a) have received a request in writing from one or both houses of
 the legislature, and (b) notify both houses of the legislature in  writ-
 ing  prior  to  initiating transfers pursuant to this authorization. The
 comptroller shall provide the director of the budget, the chair  of  the
 senate  finance  committee, and the chair of the assembly ways and means
 committee with an accurate accounting and report of any  transfers  that
 occur  pursuant  to  this  section on or before the fifteenth day of the
 following month in which such transfers occur.
   § 17. Notwithstanding any law to the contrary, and in accordance  with
 section 4 of the state finance law, the comptroller is hereby authorized
 and  directed to transfer, at the request of the director of the budget,
 up to $100 million from any non-general fund or account, or  combination
 of  funds and accounts, to the miscellaneous special revenue fund, tech-
 nology financing account (22207),  the  miscellaneous  capital  projects
 fund,  information  technology capital financing account (32215), or the
 centralized technology services account  (55069),  for  the  purpose  of
 consolidating  technology  procurement  and services. The amounts trans-
 ferred to the miscellaneous special revenue fund,  technology  financing
 account (22207) pursuant to this authorization shall be equal to or less
 than the amount of such monies intended to support information technolo-
 gy  costs  which  are attributable, according to a plan, to such account
 made in pursuance to an appropriation by law. Transfers to the technolo-
 gy financing account shall be completed from amounts collected  by  non-
 general  funds or accounts pursuant to a fund deposit schedule or perma-
 nent statute, and shall  be  transferred  to  the  technology  financing
 account  pursuant  to  a  schedule  agreed  upon  by the affected agency
 commissioner. Transfers from funds that would  result  in  the  loss  of
 eligibility  for  federal  benefits or federal funds pursuant to federal
 law, rule, or regulation as assented to in chapter 683 of  the  laws  of
 1938  and  chapter 700 of the laws of 1951 are not permitted pursuant to
 this authorization.

 S. 2009--C                         265                        A. 3009--C
 
   § 18. Notwithstanding any other  law  to  the  contrary,  up  to  $245
 million of the assessment reserves remitted to the chair of the workers'
 compensation board pursuant to subdivision 6 of section 151 of the work-
 ers' compensation law shall, at the request of the director of the budg-
 et,  be transferred to the state insurance fund, for partial payment and
 partial satisfaction of the state's obligations to the  state  insurance
 fund under section 88-c of the workers' compensation law.
   §  19. Notwithstanding any law to the contrary, and in accordance with
 section 4 of the state finance law, the comptroller is hereby authorized
 and directed to transfer, at the request of the director of the  budget,
 up  to $400 million from any non-general fund or account, or combination
 of funds and accounts, to the general fund for the  purpose  of  consol-
 idating  technology  procurement  and  services. The amounts transferred
 pursuant to this authorization shall be equal to or less than the amount
 of such monies intended to support information  technology  costs  which
 are attributable, according to a plan, to such account made in pursuance
 to  an  appropriation  by  law.  Transfers  to the general fund shall be
 completed from amounts collected by non-general funds or accounts pursu-
 ant to a fund deposit schedule.  Transfers from funds that would  result
 in  the loss of eligibility for federal benefits or federal funds pursu-
 ant to federal law, rule, or regulation as assented to in chapter 683 of
 the laws of 1938 and chapter 700 of the laws of 1951 are  not  permitted
 pursuant to this authorization.
   §  20. Notwithstanding any provision of law, rule or regulation to the
 contrary, the New York state energy research and  development  authority
 is  authorized  and  directed to make the following contributions to the
 state treasury to the credit of the general fund on or before March  31,
 2018:  (a)  $913,000; and (b) $23,000,000 from proceeds collected by the
 authority from the auction or sale of carbon dioxide emission allowances
 allocated by the department of environmental conservation.
   § 21. Subdivision 5 of section 97-rrr of the  state  finance  law,  as
 amended  by  section 21 of part UU of chapter 54 of the laws of 2016, is
 amended to read as follows:
   5. Notwithstanding the provisions of section one hundred seventy-one-a
 of the tax law, as separately amended by chapters four  hundred  eighty-
 one  and four hundred eighty-four of the laws of nineteen hundred eight-
 y-one, and notwithstanding the provisions of chapter ninety-four of  the
 laws  of  two  thousand  eleven,  or  any other provisions of law to the
 contrary, during the fiscal year beginning  April  first,  two  thousand
 [sixteen]  SEVENTEEN,  the  state  comptroller  is hereby authorized and
 directed to deposit to the fund created pursuant to  this  section  from
 amounts  collected  pursuant  to  article  twenty-two of the tax law and
 pursuant to a schedule submitted by the director of the  budget,  up  to
 [$3,283,844,000] $2,679,997,000, as may be certified in such schedule as
 necessary  to  meet the purposes of such fund for the fiscal year begin-
 ning April first, two thousand [sixteen] SEVENTEEN.
   § 22. Notwithstanding any law to  the  contrary,  the  comptroller  is
 hereby authorized and directed to transfer, upon request of the director
 of  the  budget, on or before March 31, 2018, the following amounts from
 the following special revenue accounts  to  the  capital  projects  fund
 (30000),  for  the  purposes  of reimbursement to such fund for expenses
 related to the maintenance and preservation of state assets:
   1. $43,000 from the miscellaneous special revenue fund, administrative
 program account (21982).
   2. $1,478,000 from the miscellaneous special revenue fund, helen hayes
 hospital account (22140).

 S. 2009--C                         266                        A. 3009--C
 
   3. $366,000 from the miscellaneous special revenue fund, New York city
 veterans' home account (22141).
   4.  $513,000  from  the  miscellaneous  special revenue fund, New York
 state home for veterans' and their dependents at oxford account (22142).
   5. $159,000 from the miscellaneous special revenue fund,  western  New
 York veterans' home account (22143).
   6.  $323,000  from  the  miscellaneous  special revenue fund, New York
 state for veterans in the lower-hudson valley account (22144).
   7. $2,550,000 from the  miscellaneous  special  revenue  fund,  patron
 services account (22163).
   8.  $41,930,000  from  the  miscellaneous  special revenue fund, state
 university dormitory income reimbursable account (21937).
   9. $830,000 from the miscellaneous special revenue fund,  long  island
 veterans' home account (22652).
   10.  $5,379,000  from  the  miscellaneous  special revenue fund, state
 university general income reimbursable account (22653).
   11. $112,556,000 from the miscellaneous special  revenue  fund,  state
 university revenue offset account (22655).
   12.  $557,000  from  the  miscellaneous  special  revenue  fund, state
 university of New York tuition reimbursement account (22659).
   § 22-a. Intentionally omitted.
   § 22-b. Section 97-rrr of the state finance law, as amended by section
 45 of part H of chapter 56 of the laws of 2000, is amended by  adding  a
 new subdivision 4 to read as follows:
   4.  ANY  AMOUNTS  DISBURSED  FROM SUCH FUND SHALL BE EXCLUDED FROM THE
 CALCULATION OF ANNUAL SPENDING GROWTH IN  STATE  OPERATING  FUNDS  UNTIL
 JUNE 30, 2019.
   §  22-c. Subdivision 1 of section 4 of section 1 of part D3 of chapter
 62 of the laws of 2003 amending the general business law and other  laws
 relating  to  implementing the state fiscal plan for the 2003-2004 state
 fiscal year, is amended to read as follows:
   1. The state representative, upon the execution of a sale agreement on
 behalf of the state may sell to the corporation, and the corporation may
 purchase, for cash or other consideration and in one  or  more  install-
 ments,  all  or a portion of the state's share. Any such agreement shall
 provide, among other matters, that the purchase  price  payable  by  the
 corporation to the state for such state's share or portion thereof shall
 consist of the net proceeds of the bonds issued to finance such purchase
 price  and the residual interests, if any. [The] NOTWITHSTANDING SECTION
 121 OF THE STATE FINANCE LAW OR ANY OTHER LAW TO THE CONTRARY, THE resi-
 dual interests shall be deposited  into  [the  tobacco  settlement  fund
 pursuant  to  section  92-x  of  the state finance law, unless otherwise
 directed by statute] THE MEDICAID MANAGEMENT INFORMATION  SYSTEM  (MMIS)
 STATEWIDE  ESCROW  FUND WITHIN THIRTY DAYS UPON THE AVAILABILITY OF SUCH
 RESIDUAL INTERESTS TO FUND A PORTION OF THE CUMULATIVE NON-FEDERAL SHARE
 OF EXPENSES RELATED TO THE STATE TAKEOVER OF THE LOCAL SHARE OF MEDICAID
 GROWTH PURSUANT TO PART F OF CHAPTER 56 OF  THE  LAWS  OF  2012.    SUCH
 DEPOSIT SHALL BE IN AN AMOUNT EQUAL TO (A) THE AMOUNT OF RESIDUAL INTER-
 ESTS  SCHEDULED  FOR  DEPOSIT INTO THE MMIS STATEWIDE ESCROW FUND IN THE
 APPLICABLE YEAR'S ENACTED BUDGET FINANCIAL PLAN AS UPDATED  OR  (B)  THE
 TOTAL AMOUNT OF RESIDUAL INTERESTS AVAILABLE IF THE TOTAL AMOUNT OF SUCH
 RESIDUAL  INTERESTS  IS LESS THAN THE TOTAL AMOUNT OF RESIDUAL INTERESTS
 SCHEDULED FOR DEPOSIT INTO THE MMIS STATEWIDE ESCROW FUND IN THE  APPLI-
 CABLE YEAR'S ENACTED BUDGET FINANCIAL PLAN AS UPDATED. AT THE DISCRETION
 OF  THE  STATE  REPRESENTATIVE,  ANY RESIDUAL INTERESTS WHICH EXCEED THE
 AMOUNT SCHEDULED FOR DEPOSIT INTO THE MMIS STATEWIDE ESCROW FUND IN  THE

 S. 2009--C                         267                        A. 3009--C
 
 APPLICABLE YEAR'S ENACTED BUDGET FINANCIAL PLAN AS UPDATED MAY EITHER BE
 DEPOSITED  INTO THE (I) MMIS STATEWIDE ESCROW FUND TO FUND A PORTION, AS
 DETERMINED BY THE STATE REPRESENTATIVE, OF  THE  CUMULATIVE  NON-FEDERAL
 SHARE  OF  EXPENSES  RELATED TO THE STATE TAKEOVER OF THE LOCAL SHARE OF
 MEDICAID GROWTH, PURSUANT TO PART F OF CHAPTER 56 OF THE LAWS  OF  2012,
 OR  (II)  THE  STATE  GENERAL  FUND; provided, however that any residual
 interest derived from other assets shall be applied as directed by stat-
 ute. NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE AMOUNT USED FROM
 SUCH DEPOSIT TO FUND A PORTION OF THE CUMULATIVE  NON-FEDERAL  SHARE  OF
 EXPENSES  RELATED  TO  THE STATE TAKEOVER OF THE LOCAL SHARE OF MEDICAID
 GROWTH SHALL BE PAID WITHOUT  APPROPRIATION.  Any  such  sale  shall  be
 pursuant to one or more sale agreements which may contain such terms and
 conditions deemed necessary by the state representative to carry out and
 effectuate the purposes of this section, including covenants binding the
 state  in  favor  of  the  corporation  and its assignees, including the
 owners of its bonds such as covenants with respect to the enforcement at
 the expense of the state of the payment provisions of the master settle-
 ment agreement, the diligent enforcement at the expense of the state  of
 the  qualifying  statute, the application and use of the proceeds of the
 sale of the state's share to preserve the tax-exemption  on  the  bonds,
 the  interest on which is intended to be exempt from federal income tax,
 issued to finance the purchase thereof and otherwise as provided in this
 act. Notwithstanding the foregoing, neither the state representative nor
 the corporation shall be authorized to make any covenant, pledge,  prom-
 ise  or  agreement  purporting to bind the state with respect to pledged
 tobacco revenues, except as otherwise specifically  authorized  by  this
 act.
   § 22-d. The state finance law is amended by adding a new section 99-aa
 to read as follows:
   §  99-AA. RETIREE HEALTH BENEFIT TRUST FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER  OF  THE  DEPARTMENT  OF
 CIVIL  SERVICE AND THE STATE COMPTROLLER A SPECIAL INVESTMENT TRUST FUND
 TO BE KNOWN AS THE RETIREE HEALTH BENEFIT TRUST  FUND,  WHICH  SHALL  BE
 CLASSIFIED AS A FIDUCIARY FUND TYPE.
   2.  FOR  PURPOSES  OF  THIS SECTION: (A) "COMMISSIONER" SHALL MEAN THE
 COMMISSIONER OF THE DEPARTMENT OF CIVIL SERVICE;
   (B) "STATE" SHALL MEAN THE STATE OF NEW YORK;
   (C) "FUND", OR "TRUST", OR "TRUST FUND" SHALL MEAN THE RETIREE  HEALTH
 BENEFIT TRUST FUND CREATED BY THIS SECTION; AND
   (D)  "RETIREE HEALTH BENEFITS" SHALL MEAN BENEFITS, EXCEPT PENSIONS OR
 OTHER BENEFITS FUNDED THROUGH A PUBLIC RETIREMENT SYSTEM, PROVIDED OR TO
 BE PROVIDED BY THE STATE AS COMPENSATION, WHETHER PURSUANT  TO  STATUTE,
 CONTRACT OR OTHER LAWFUL AUTHORITY, TO ITS CURRENT OR FORMER OFFICERS OR
 EMPLOYEES,  OR  THEIR  FAMILIES  OR  BENEFICIARIES, AFTER SERVICE TO THE
 STATE HAS ENDED, INCLUDING, BUT NOT LIMITED TO, HEALTH CARE BENEFITS.
   3. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE RETI-
 REE HEALTH BENEFIT TRUST FUND IS ESTABLISHED FOR THE  EXCLUSIVE  BENEFIT
 OF RETIRED STATE EMPLOYEES AND THEIR DEPENDENTS.
   (B)  THE SOLE PURPOSE OF THE TRUST FUND ESTABLISHED PURSUANT TO SUBDI-
 VISION ONE OF THIS SECTION SHALL BE TO FUND THE RETIREE HEALTH  BENEFITS
 OF RETIRED STATE EMPLOYEES AND THEIR DEPENDENTS.
   4.  (A)  PAYMENTS INTO AND FROM THE TRUST FUND ESTABLISHED PURSUANT TO
 SUBDIVISION ONE OF THIS SECTION SHALL BE MADE IN  ACCORDANCE  WITH  THIS
 SECTION.
   (B)  CONTRIBUTIONS  TO  THE TRUST, AND ANY INTEREST OR OTHER INCOME OR
 EARNINGS ON CONTRIBUTIONS, SHALL BE IRREVOCABLE BEFORE  ALL  LIABILITIES

 S. 2009--C                         268                        A. 3009--C
 
 OF  THE STATE GOVERNMENT FOR RETIREE HEALTH BENEFITS HAVE BEEN SATISFIED
 AND SHALL BE SOLELY DEDICATED TO, AND USED SOLELY FOR, PROVIDING RETIREE
 HEALTH BENEFITS AND PAYING APPROPRIATE AND REASONABLE EXPENSES OF ADMIN-
 ISTERING THE TRUST.  NO ASSETS, INCOME, EARNINGS OR DISTRIBUTIONS OF THE
 TRUST  SHALL  BE  SUBJECT  TO ANY CLAIM OF CREDITORS OF THE STATE, OR TO
 ASSIGNMENT OR EXECUTION, ATTACHMENT OR ANY OTHER CLAIM ENFORCEMENT PROC-
 ESS INITIATED BY OR ON BEHALF OF SUCH  CREDITORS.  EXCEPT  AS  OTHERWISE
 PROVIDED  IN  SUBDIVISION  EIGHT OF THIS SECTION, THE COMMISSIONER SHALL
 NOT BE RESPONSIBLE FOR THE ADEQUACY OF THE ASSETS OF THE TRUST  TO  MEET
 ANY  OTHER  POST-EMPLOYMENT  BENEFIT.   THE TRUST MAY BE TERMINATED ONLY
 WHEN ALL LIABILITIES OF THE STATE FOR RETIREE HEALTH BENEFITS HAVE  BEEN
 SATISFIED  AND  THERE  IS NO PRESENT OR FUTURE OBLIGATION, CONTINGENT OR
 OTHERWISE, OF THE STATE TO PROVIDE SUCH RETIREE  HEALTH  BENEFITS.  UPON
 SUCH  TERMINATION, ANY REMAINING TRUST ASSETS, AFTER ANY PROPER EXPENSES
 OF THE TRUST HAVE BEEN PAID, SHALL REVERT TO THE STATE.
   (C) AT THE REQUEST OF THE DIRECTOR OF  THE  BUDGET,  THE  STATE  COMP-
 TROLLER SHALL TRANSFER MONIES FROM THE GENERAL FUND TO THE TRUST FUND UP
 TO AND INCLUDING AN AMOUNT EQUIVALENT TO FIFTY ONE-HUNDREDTHS OF ONE PER
 CENTUM OF THE TOTAL ACTUARIAL ACCRUED LIABILITY INCLUDED IN THE STATE OF
 NEW YORK COMPREHENSIVE ANNUAL FINANCIAL REPORT.
   (D)  ANY USE OF FUNDS FOR RETIREE HEALTH BENEFITS FROM SUCH TRUST FUND
 SHALL NOT BE SUBJECT TO AN APPROPRIATION AND SHALL BE TRANSFERRED BY THE
 STATE COMPTROLLER, AT THE REQUEST OF THE DIRECTOR OF THE BUDGET, TO  THE
 EXTENT  FUNDS  ARE AVAILABLE IN SUCH TRUST FUND, TO THE HEALTH INSURANCE
 FUND FOR THE SOLE AND EXCLUSIVE PURPOSE OF FUNDING RETIREE HEALTH  BENE-
 FITS.  THE DIRECTOR OF THE BUDGET SHALL NOTIFY BOTH HOUSES OF THE LEGIS-
 LATURE IN WRITING THIRTY DAYS PRIOR TO INITIATING TRANSFERS PURSUANT  TO
 THIS AUTHORIZATION.
   5.  INVESTMENTS.  (A)  THE COMMISSIONER MAY ESTABLISH A TRUST IN JOINT
 CUSTODY WITH THE STATE  COMPTROLLER  FOR  THE  PURPOSE  OF  ACCUMULATING
 ASSETS TO FUND THE COST OF PROVIDING RETIREE HEALTH BENEFITS.
   (B) THE COMMISSIONER IS HEREBY DECLARED TO BE THE TRUSTEE OF THE TRUST
 ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS SECTION, AND THE COMMIS-
 SIONER SHALL DELEGATE RESPONSIBILITY FOR MANAGING THE INVESTMENTS OF THE
 TRUST  FUND  ESTABLISHED  PURSUANT TO SUBDIVISION ONE OF THIS SECTION TO
 THE STATE COMPTROLLER. THE STATE COMPTROLLER SHALL  MANAGE  THE  INVEST-
 MENTS  OF THE TRUST FUND ESTABLISHED PURSUANT TO SUBDIVISION ONE OF THIS
 SECTION IN A CAREFUL AND PRUDENT MANNER CONSISTENT WITH  THE  GUIDELINES
 AND PROVISIONS OF SECTION NINETY-EIGHT THIS ARTICLE.
   (C)  ANY  INTEREST  OR  OTHER  INCOME  OR  EARNINGS RESULTING FROM THE
 INVESTMENT OF ASSETS OF THE TRUST SHALL ACCRUE TO AND BECOME PART OF THE
 ASSETS OF THE TRUST.
   6. IN ACCORDANCE WITH  PARAGRAPH  (B)  OF  SUBDIVISION  FIVE  OF  THIS
 SECTION,  THE  STATE COMPTROLLER SHALL DEVELOP, IN CONSULTATION WITH THE
 STATE HEALTH INSURANCE COUNCIL, A WRITTEN INVESTMENT POLICY FOR  SELECT-
 ING  INVESTMENT  OPTIONS  IN  A  MANNER  CONSISTENT  WITH THE INVESTMENT
 OPTIONS PRESCRIBED IN SECTION NINETY-EIGHT OF THIS ARTICLE SO  THAT  THE
 STATE  COMPTROLLER  MAY BE ABLE TO INVEST FUND MONIES IN ACCORDANCE WITH
 SUCH POLICY. SUCH POLICY SHALL INCLUDE A STATEMENT OF INVESTMENT  OBJEC-
 TIVES  ADDRESSING,  IN  THE  FOLLOWING ORDER OF PRIORITY, THE ABILITY TO
 TIMELY MEET DISBURSEMENT REQUESTS WITHOUT FORCED SALE OF ASSETS,  SAFETY
 OF PRINCIPAL AND ATTAINMENT OF MARKET RATES OF RETURN.
   7. NEITHER THE STATE NOR THE COMMISSIONER SHALL BE LIABLE FOR ANY LOSS
 OR  EXPENSE  SUFFERED  BY THE TRUST IN THE ABSENCE OF BAD FAITH, WILLFUL
 MISCONDUCT OR INTENTIONAL WRONGDOING. THE COMMISSIONER SHALL BE  CONSID-
 ERED  TO  BE  ACTING  AS AN OFFICER OF THE STATE FOR PURPOSES OF SECTION

 S. 2009--C                         269                        A. 3009--C
 
 SEVENTEEN OF THE PUBLIC OFFICERS LAW, PROVIDED, HOWEVER, THAT THE  COSTS
 OF  ANY  DEFENSE OR INDEMNIFICATION OF THE COMMISSIONER ARISING FROM THE
 EXERCISE OF THE FUNCTIONS OF TRUSTEE SHALL BE PAYABLE FROM THE ASSETS OF
 THE TRUST.
   8. NOTHING CONTAINED IN THIS SECTION SHALL BE INTERPRETED OR CONSTRUED
 TO: (A) CREATE ANY OBLIGATION IN, IMPOSE ANY OBLIGATION ON, OR ALTER ANY
 OBLIGATION OF THE STATE TO PROVIDE RETIREE HEALTH BENEFITS;
   (B)  LIMIT  OR RESTRICT THE AUTHORITY OF THE STATE TO MODIFY OR ELIMI-
 NATE RETIREE HEALTH BENEFITS;
   (C) ASSURE OR DENY RETIREE HEALTH BENEFITS; OR
   (D) REQUIRE THE STATE TO FUND ITS LIABILITY FOR RETIREE  HEALTH  BENE-
 FITS.
   § 22-e. In the event that the federal budget or continuing resolutions
 in  force  for  federal  fiscal  years 2017 or 2018, or both, or federal
 statutory or regulatory changes, reduce federal financial  participation
 in  Medicaid  funding  to  New  York  state  or its subdivisions by $850
 million or more, the director of the division of the budget shall notify
 the temporary president of the senate and the speaker of the assembly in
 writing that the federal actions will reduce  expected  funding  to  New
 York  state.  The director of the division of the budget shall prepare a
 plan that shall be submitted to the legislature, which shall (a) specify
 the total amount of the reduction in federal financial participation  in
 Medicaid,  (b) itemize the specific programs and activities that will be
 affected by the reduction in federal financial  participation  in  Medi-
 caid,  and  (c) identify the general fund and state special revenue fund
 appropriations and related disbursements that shall be reduced,  and  in
 what program areas, provided, however, that such reductions to appropri-
 ations  and disbursements shall be applied equally and proportionally to
 the programs affected by the reduction. Upon such submission, the legis-
 lature shall have 90 days after such submission to  either  prepare  its
 own  plan,  which may be adopted by concurrent resolution passed by both
 houses, or if after 90 days the legislature fails  to  adopt  their  own
 plan,  the reductions to the general fund and state special revenue fund
 appropriations and related disbursements identified in the  division  of
 the budget plan will go into effect automatically.
   § 22-f. In the event that the federal budget or continuing resolutions
 in  force  for  federal  fiscal  years 2017 or 2018, or both, or federal
 statutory or regulatory changes, reduce federal financial  participation
 or other federal aid in funding to New York state that affects the state
 operating funds financial plan by $850 million or more, exclusive of any
 cuts to Medicaid, the director of the division of the budget shall noti-
 fy the temporary president of the senate and the speaker of the assembly
 in  writing that the federal actions will reduce expected funding to New
 York state. The director of the division of the budget shall  prepare  a
 plan that shall be submitted to the legislature, which shall (a) specify
 the  total  amount  of  the  reduction  in  federal aid, (b) itemize the
 specific programs and activities that will be affected  by  the  federal
 reductions, exclusive of Medicaid, and (c) identify the general fund and
 state special revenue fund appropriations and related disbursements that
 shall  be  reduced,  and  in what program areas, provided, however, that
 such reductions to appropriations and  disbursements  shall  be  applied
 equally  and proportionally. Upon such submission, the legislature shall
 have 90 days after such submission to either prepare its own plan, which
 may be adopted by concurrent resolution passed by  both  houses,  or  if
 after  90  days  the  legislature  fails  to  adopt  their own plan, the
 reductions to the general fund and state special revenue fund  appropri-

 S. 2009--C                         270                        A. 3009--C
 
 ations and related disbursements identified in the division of the budg-
 et plan will go into effect automatically.
   §  23.  Notwithstanding  any  other  law,  rule,  or regulation to the
 contrary, the state comptroller is hereby authorized and directed to use
 any balance remaining in the mental health services  fund  debt  service
 appropriation, after payment by the state comptroller of all obligations
 required pursuant to any lease, sublease, or other financing arrangement
 between the dormitory authority of the state of New York as successor to
 the  New  York  state  medical  care  facilities finance agency, and the
 facilities development corporation pursuant to chapter 83 of the laws of
 1995 and the department of mental hygiene  for  the  purpose  of  making
 payments  to  the  dormitory  authority of the state of New York for the
 amount of the earnings for the investment of  monies  deposited  in  the
 mental health services fund that such agency determines will or may have
 to  be  rebated  to the federal government pursuant to the provisions of
 the internal revenue code of 1986, as amended, in order to  enable  such
 agency  to  maintain  the  exemption from federal income taxation on the
 interest paid to the holders of such agency's mental services facilities
 improvement revenue bonds. Annually on or before each  June  30th,  such
 agency  shall  certify to the state comptroller its determination of the
 amounts received in the mental health services fund as a result  of  the
 investment  of  monies  deposited  therein  that  will or may have to be
 rebated to the federal government pursuant  to  the  provisions  of  the
 internal revenue code of 1986, as amended.
   §  24.  Subdivision 1 of section 47 of section 1 of chapter 174 of the
 laws of 1968, constituting the New York state urban  development  corpo-
 ration  act,  as  amended  by section 29 of part UU of chapter 54 of the
 laws of 2016, is amended to read as follows:
   1. Notwithstanding the provisions of any other law  to  the  contrary,
 the  dormitory  authority  and  the corporation are hereby authorized to
 issue bonds or notes in one or more series for the  purpose  of  funding
 project costs for the office of information technology services, depart-
 ment  of  law,  and  other  state  costs  associated  with  such capital
 projects. The aggregate principal  amount  of  bonds  authorized  to  be
 issued  pursuant  to  this section shall not exceed [three] FOUR hundred
 [sixty-four] FIFTY million [eight] FIVE hundred forty thousand  dollars,
 excluding  bonds  issued to fund one or more debt service reserve funds,
 to pay costs of issuance of such bonds, and bonds  or  notes  issued  to
 refund  or  otherwise  repay such bonds or notes previously issued. Such
 bonds and notes of the dormitory authority and the corporation shall not
 be a debt of the state, and the state shall not be liable  thereon,  nor
 shall  they be payable out of any funds other than those appropriated by
 the state to the dormitory authority and the corporation for  principal,
 interest,  and  related expenses pursuant to a service contract and such
 bonds and notes shall contain on the face thereof a  statement  to  such
 effect. Except for purposes of complying with the internal revenue code,
 any  interest  income  earned on bond proceeds shall only be used to pay
 debt service on such bonds.
   § 25. Subdivision 1 of section 16 of part D of chapter 389 of the laws
 of 1997, relating  to  the  financing  of  the  correctional  facilities
 improvement  fund and the youth facility improvement fund, as amended by
 section 30 of part UU of chapter 54 of the laws of 2016, is  amended  to
 read as follows:
   1.  Subject  to  the provisions of chapter 59 of the laws of 2000, but
 notwithstanding the provisions of section 18 of section 1 of chapter 174
 of the laws of 1968, the New York state urban development corporation is

 S. 2009--C                         271                        A. 3009--C

 hereby authorized to issue bonds, notes  and  other  obligations  in  an
 aggregate  principal  amount  not  to  exceed seven billion [four] SEVEN
 hundred [twenty-four] FORTY-ONE million [nine] ONE  hundred  ninety-nine
 thousand  dollars [$7,424,999,000] $7,741,199,000, and shall include all
 bonds, notes and other obligations issued pursuant to chapter 56 of  the
 laws  of  1983,  as amended or supplemented. The proceeds of such bonds,
 notes or other obligations shall be paid to the state,  for  deposit  in
 the  correctional  facilities capital improvement fund to pay for all or
 any portion of the amount or amounts paid by the  state  from  appropri-
 ations  or  reappropriations  made  to the department of corrections and
 community supervision from the correctional facilities capital  improve-
 ment  fund for capital projects. The aggregate amount of bonds, notes or
 other obligations authorized to be issued pursuant to this section shall
 exclude bonds, notes or other obligations issued to refund or  otherwise
 repay bonds, notes or other obligations theretofore issued, the proceeds
 of  which  were  paid  to  the state for all or a portion of the amounts
 expended by the state from appropriations or  reappropriations  made  to
 the  department  of  corrections  and  community  supervision; provided,
 however, that upon any such refunding or repayment the  total  aggregate
 principal amount of outstanding bonds, notes or other obligations may be
 greater  than seven billion [four] SEVEN hundred [twenty-four] FORTY-ONE
 million [nine] ONE hundred ninety-nine thousand dollars [$7,424,999,000]
 $7,741,199,000, only if the present value of the aggregate debt  service
 of  the  refunding  or repayment bonds, notes or other obligations to be
 issued shall not exceed the present value of the aggregate debt  service
 of  the  bonds,  notes or other obligations so to be refunded or repaid.
 For the purposes hereof, the present value of the aggregate debt service
 of the refunding or repayment bonds, notes or other obligations  and  of
 the  aggregate  debt service of the bonds, notes or other obligations so
 refunded or repaid, shall  be  calculated  by  utilizing  the  effective
 interest  rate of the refunding or repayment bonds, notes or other obli-
 gations, which shall be that rate arrived at by doubling the semi-annual
 interest rate (compounded semi-annually) necessary to discount the  debt
 service  payments  on  the  refunding or repayment bonds, notes or other
 obligations from the payment dates thereof to the date of issue  of  the
 refunding  or  repayment  bonds,  notes  or other obligations and to the
 price bid including estimated accrued interest or proceeds  received  by
 the corporation including estimated accrued interest from the sale ther-
 eof.
   §  26.  Paragraph  (a) of subdivision 2 of section 47-e of the private
 housing finance law, as amended by section 31 of part UU of  chapter  54
 of the laws of 2016, is amended to read as follows:
   (a) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand,  in  order  to  enhance and encourage the promotion of housing
 programs and thereby achieve the stated purposes and objectives of  such
 housing  programs, the agency shall have the power and is hereby author-
 ized from time to time to issue negotiable  housing  program  bonds  and
 notes  in  such principal amount as shall be necessary to provide suffi-
 cient funds for the repayment of amounts disbursed (and  not  previously
 reimbursed)  pursuant  to law or any prior year making capital appropri-
 ations or reappropriations for the  purposes  of  the  housing  program;
 provided,  however, that the agency may issue such bonds and notes in an
 aggregate principal amount not exceeding [four] FIVE billion [six] THREE
 hundred [ninety-seven] EIGHTY-FOUR million [four] ONE hundred  [seventy-
 four]  NINETY-NINE  thousand  dollars,  plus a principal amount of bonds
 issued to fund the debt service reserve fund in accordance with the debt

 S. 2009--C                         272                        A. 3009--C
 
 service reserve fund requirement established by the agency and  to  fund
 any  other  reserves  that the agency reasonably deems necessary for the
 security or marketability of such bonds and to provide for  the  payment
 of   fees  and  other  charges  and  expenses,  including  underwriters'
 discount,  trustee  and  rating  agency  fees,  bond  insurance,  credit
 enhancement  and  liquidity  enhancement related to the issuance of such
 bonds and notes. No reserve fund  securing  the  housing  program  bonds
 shall  be  entitled  or  eligible  to receive state funds apportioned or
 appropriated to maintain or restore such reserve fund at or to a partic-
 ular level, except to the extent of any deficiency resulting directly or
 indirectly from a failure of the state to appropriate or pay the  agreed
 amount  under  any  of the contracts provided for in subdivision four of
 this section.
   § 27. Subdivision (b) of section 11 of chapter  329  of  the  laws  of
 1991,  amending  the  state  finance  law and other laws relating to the
 establishment of the dedicated highway and bridge trust fund, as amended
 by section 32 of part UU of chapter 54 of the laws of 2016,  is  amended
 to read as follows:
   (b) Any service contract or contracts for projects authorized pursuant
 to  sections  10-c,  10-f,  10-g and 80-b of the highway law and section
 14-k of the transportation law, and entered into pursuant to subdivision
 (a) of this section, shall provide  for  state  commitments  to  provide
 annually  to  the  thruway  authority a sum or sums, upon such terms and
 conditions as shall be deemed appropriate by the director of the budget,
 to fund, or fund the debt service requirements of any bonds or any obli-
 gations of the thruway authority issued to  fund  or  to  reimburse  the
 state  for  funding  such  projects  having  a  cost  not  in  excess of
 [$9,147,234,000] $9,699,586,000 cumulatively by the end of  fiscal  year
 [2016-17] 2017-18.
   §  28.  Subdivision 1 of section 1689-i of the public authorities law,
 as amended by section 33 of part UU of chapter 54 of the laws  of  2016,
 is amended to read as follows:
   1.  The  dormitory  authority  is  authorized  to  issue bonds, at the
 request of the commissioner of education, to  finance  eligible  library
 construction projects pursuant to section two hundred seventy-three-a of
 the  education  law,  in  amounts  certified by such commissioner not to
 exceed a total principal amount of one hundred [fifty-nine] EIGHTY-THREE
 million dollars.
   § 29. Subdivision (a) of section 27 of part Y of  chapter  61  of  the
 laws  of  2005,  relating to providing for the administration of certain
 funds and accounts related  to  the  2005-2006  budget,  as  amended  by
 section  34  of part UU of chapter 54 of the laws of 2016, is amended to
 read as follows:
   (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
 notwithstanding  any provisions of law to the contrary, the urban devel-
 opment corporation is hereby authorized to issue bonds or notes  in  one
 or   more  series  in  an  aggregate  principal  amount  not  to  exceed
 [$167,600,000] $173,600,000, excluding bonds issued to  finance  one  or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and  bonds  or  notes  issued to refund or otherwise repay such bonds or
 notes previously issued, for the purpose of financing  capital  projects
 including  IT initiatives for the division of state police, debt service
 and leases; and to reimburse the state general  fund  for  disbursements
 made  therefor. Such bonds and notes of such authorized issuer shall not
 be a debt of the state, and the state shall not be liable  thereon,  nor
 shall  they be payable out of any funds other than those appropriated by

 S. 2009--C                         273                        A. 3009--C
 
 the state to  such  authorized  issuer  for  debt  service  and  related
 expenses  pursuant to any service contract executed pursuant to subdivi-
 sion (b) of this section and such bonds and notes shall contain  on  the
 face  thereof a statement to such effect. Except for purposes of comply-
 ing with the internal revenue code, any interest income earned  on  bond
 proceeds shall only be used to pay debt service on such bonds.
   §  30.  Section  44  of  section 1 of chapter 174 of the laws of 1968,
 constituting the New York state urban development  corporation  act,  as
 amended  by  section 35 of part UU of chapter 54 of the laws of 2016, is
 amended to read as follows:
   § 44. Issuance of certain  bonds  or  notes.  1.  Notwithstanding  the
 provisions of any other law to the contrary, the dormitory authority and
 the  corporation are hereby authorized to issue bonds or notes in one or
 more series for the purpose of funding project costs  for  the  regional
 economic  development  council  initiative,  the economic transformation
 program, state university of New York college for nanoscale and  science
 engineering,  projects  within  the city of Buffalo or surrounding envi-
 rons, the New York works economic development  fund,  projects  for  the
 retention of professional football in western New York, the empire state
 economic  development  fund,  the  clarkson-trudeau partnership, the New
 York genome center, the cornell university college of  veterinary  medi-
 cine,  the  olympic  regional  development  authority,  projects at nano
 Utica, onondaga county revitalization  projects,  Binghamton  university
 school of pharmacy, New York power electronics manufacturing consortium,
 regional infrastructure projects, high technology manufacturing projects
 in Chautauqua and Erie county, an industrial scale research and develop-
 ment  facility  in  Clinton  county,  upstate  revitalization initiative
 projects, market New York projects, fairground buildings,  EQUIPMENT  or
 facilities  used  to  house and promote agriculture, THE STATE FAIR, THE
 EMPIRE STATE TRAIL, THE MOYNIHAN STATION DEVELOPMENT PROJECT, THE KINGS-
 BRIDGE ARMORY PROJECT,  STRATEGIC  ECONOMIC  DEVELOPMENT  PROJECTS,  THE
 CULTURAL,  ARTS AND PUBLIC SPACES FUND, WATER INFRASTRUCTURE IN THE CITY
 OF AUBURN AND TOWN OF OWASCO, A LIFE SCIENCES LABORATORY  PUBLIC  HEALTH
 INITIATIVE,  NOT-FOR-PROFIT  POUNDS, SHELTERS AND HUMANE SOCIETIES, ARTS
 AND CULTURAL FACILITIES IMPROVEMENT PROGRAM, RESTORE NEW YORK'S COMMUNI-
 TIES INITIATIVE, HEAVY EQUIPMENT, ECONOMIC DEVELOPMENT  AND  INFRASTRUC-
 TURE  PROJECTS, and other state costs associated with such projects. The
 aggregate principal amount of bonds authorized to be issued pursuant  to
 this  section  shall  not  exceed [four] SIX billion [six] SEVEN hundred
 [seventy-one] EIGHT million [seven]  TWO  hundred  fifty-seven  thousand
 dollars, excluding bonds issued to fund one or more debt service reserve
 funds, to pay costs of issuance of such bonds, and bonds or notes issued
 to refund or otherwise repay such bonds or notes previously issued. Such
 bonds and notes of the dormitory authority and the corporation shall not
 be  a  debt of the state, and the state shall not be liable thereon, nor
 shall they be payable out of any funds other than those appropriated  by
 the  state to the dormitory authority and the corporation for principal,
 interest, and related expenses pursuant to a service contract  and  such
 bonds  and  notes  shall contain on the face thereof a statement to such
 effect. Except for purposes of complying with the internal revenue code,
 any interest income earned on bond proceeds shall only be  used  to  pay
 debt service on such bonds.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority and the corporation in undertak-
 ing the financing for project costs for the regional  economic  develop-
 ment  council  initiative,  the  economic  transformation program, state

 S. 2009--C                         274                        A. 3009--C

 university of New York college for nanoscale  and  science  engineering,
 projects  within  the  city  of Buffalo or surrounding environs, the New
 York works economic development fund,  projects  for  the  retention  of
 professional  football  in  western  New York, the empire state economic
 development fund, the clarkson-trudeau partnership, the New York  genome
 center, the cornell university college of veterinary medicine, the olym-
 pic  regional  development  authority,  projects at nano Utica, onondaga
 county revitalization projects, Binghamton university school of  pharma-
 cy,  New  York  power  electronics  manufacturing  consortium,  regional
 infrastructure projects, high technology manufacturing projects in Chau-
 tauqua and Erie county, an industrial  scale  research  and  development
 facility  in Clinton county, upstate revitalization initiative projects,
 market New York projects, fairground buildings, EQUIPMENT or  facilities
 used  to house and promote agriculture, THE STATE FAIR, THE EMPIRE STATE
 TRAIL, THE MOYNIHAN STATION DEVELOPMENT PROJECT, THE KINGSBRIDGE  ARMORY
 PROJECT, STRATEGIC ECONOMIC DEVELOPMENT PROJECTS, THE CULTURAL, ARTS AND
 PUBLIC  SPACES FUND, WATER INFRASTRUCTURE IN THE CITY OF AUBURN AND TOWN
 OF OWASCO, A LIFE SCIENCES LABORATORY PUBLIC HEALTH INITIATIVE, NOT-FOR-
 PROFIT POUNDS, SHELTERS AND HUMANE SOCIETIES, ARTS AND CULTURAL  FACILI-
 TIES  IMPROVEMENT  PROGRAM,  RESTORE  NEW YORK'S COMMUNITIES INITIATIVE,
 HEAVY EQUIPMENT, ECONOMIC DEVELOPMENT AND INFRASTRUCTURE  PROJECTS,  and
 other  state  costs  associated  with such projects, the director of the
 budget is hereby authorized to enter into one or more service  contracts
 with  the  dormitory  authority and the corporation, none of which shall
 exceed thirty years in duration, upon such terms and conditions  as  the
 director  of  the budget and the dormitory authority and the corporation
 agree, so as to annually provide to  the  dormitory  authority  and  the
 corporation, in the aggregate, a sum not to exceed the principal, inter-
 est, and related expenses required for such bonds and notes. Any service
 contract  entered  into  pursuant to this section shall provide that the
 obligation of the state to pay the amount  therein  provided  shall  not
 constitute  a debt of the state within the meaning of any constitutional
 or statutory provision and shall be deemed executory only to the  extent
 of monies available and that no liability shall be incurred by the state
 beyond  the  monies available for such purpose, subject to annual appro-
 priation by the legislature. Any such contract or any payments  made  or
 to  be  made  thereunder  may  be  assigned and pledged by the dormitory
 authority and the corporation as security for its bonds  and  notes,  as
 authorized by this section.
   § 31. Subdivisions 1 and 3 of section 1285-p of the public authorities
 law,  subdivision  1 as amended by section 33 of part I of chapter 60 of
 the laws of 2015 and subdivision 3 as amended by section 36 of  part  UU
 of chapter 54 of the laws of 2016, are amended to read as follows:
   1.  Subject  to  chapter  fifty-nine  of the laws of two thousand, but
 notwithstanding any other provisions of law to the contrary, in order to
 assist the corporation in undertaking the administration and the financ-
 ing of the design, acquisition, construction, improvement, installation,
 and related work for all or any portion of any of the following environ-
 mental infrastructure projects and for the provision  of  funds  to  the
 state  for any amounts disbursed therefor: (a) projects authorized under
 the environmental protection fund, or for which appropriations are  made
 to  the  environmental  protection  fund  including,  but not limited to
 municipal  parks  and  historic  preservation,   stewardship,   farmland
 protection, non-point source, pollution control, Hudson River Park, land
 acquisition,  and  waterfront revitalization; (b) department of environ-
 mental conservation capital appropriations for Onondaga Lake for certain

 S. 2009--C                         275                        A. 3009--C

 water quality improvement projects in the same manner as  set  forth  in
 paragraph (d) of subdivision one of section 56-0303 of the environmental
 conservation law; (c) for the purpose of the administration, management,
 maintenance, and use of the real property at the western New York nucle-
 ar  service center; (d) department of environmental conservation capital
 appropriations   for   the    administration,    design,    acquisition,
 construction,  improvement, installation, and related work on department
 of environmental conservation environmental infrastructure projects; (e)
 office of parks, recreation and historic preservation appropriations  or
 reappropriations  from  the state parks infrastructure fund; (f) capital
 grants for the cleaner, greener communities program [and];  (g)  capital
 costs  of water quality infrastructure projects AND (H) CAPITAL COSTS OF
 CLEAN WATER INFRASTRUCTURE PROJECTS the  director  of  the  division  of
 budget and the corporation are each authorized to enter into one or more
 service  contracts, none of which shall exceed twenty years in duration,
 upon such terms and conditions as the director and the  corporation  may
 agree,  so as to annually provide to the corporation in the aggregate, a
 sum not to exceed the annual debt service payments and related  expenses
 required  for  any bonds and notes authorized pursuant to section twelve
 hundred ninety of this title. Any service contract entered into pursuant
 to this section shall provide that the obligation of the state  to  fund
 or  to  pay the amounts therein provided for shall not constitute a debt
 of the state within the  meaning  of  any  constitutional  or  statutory
 provision  and  shall  be  deemed executory only to the extent of moneys
 available for such purposes, subject  to  annual  appropriation  by  the
 legislature.  Any  such  service  contract or any payments made or to be
 made thereunder may be assigned and pledged by the corporation as  secu-
 rity  for  its bonds and notes, as authorized pursuant to section twelve
 hundred ninety of this title.
   3. The maximum amount of bonds that may be issued for the  purpose  of
 financing  environmental  infrastructure  projects  authorized  by  this
 section shall be [two] FOUR billion [one] NINE hundred [eight] FIFTY-ONE
 million [two] SEVEN hundred sixty thousand dollars, exclusive  of  bonds
 issued  to fund any debt service reserve funds, pay costs of issuance of
 such bonds, and bonds or notes issued to refund or otherwise repay bonds
 or notes previously issued.   Such bonds and notes  of  the  corporation
 shall  not  be  a  debt  of the state, and the state shall not be liable
 thereon, nor shall they be payable out of any  funds  other  than  those
 appropriated  by  the  state  to  the  corporation  for debt service and
 related expenses pursuant to any service contracts executed pursuant  to
 subdivision  one of this section, and such bonds and notes shall contain
 on the face thereof a statement to such effect.
   § 32. Subdivision 1 of section 45 of section 1 of chapter 174  of  the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, as amended by section 37 of part UU of  chapter  54  of  the
 laws of 2016, is amended to read as follows:
   1.  Notwithstanding  the  provisions of any other law to the contrary,
 the urban development corporation of the state of  New  York  is  hereby
 authorized to issue bonds or notes in one or more series for the purpose
 of funding project costs for the implementation of a NY-SUNY and NY-CUNY
 2020  challenge  grant  program subject to the approval of a NY-SUNY and
 NY-CUNY 2020 plan or plans by the governor and either the chancellor  of
 the state university of New York or the chancellor of the city universi-
 ty  of  New York, as applicable. The aggregate principal amount of bonds
 authorized to be issued  pursuant  to  this  section  shall  not  exceed
 [$550,000,000]  $660,000,000, excluding bonds issued to fund one or more

 S. 2009--C                         276                        A. 3009--C

 debt service reserve funds, to pay costs of issuance of such bonds,  and
 bonds  or  notes issued to refund or otherwise repay such bonds or notes
 previously issued. Such bonds and notes of the corporation shall not  be
 a  debt  of  the  state,  and the state shall not be liable thereon, nor
 shall they be payable out of any funds other than those appropriated  by
 the  state  to  the  corporation  for  principal,  interest, and related
 expenses pursuant to a service contract and such bonds and  notes  shall
 contain  on  the  face  thereof  a  statement to such effect. Except for
 purposes of complying with  the  internal  revenue  code,  any  interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   §  33.  Subdivision  (a)  of section 48 of part K of chapter 81 of the
 laws of 2002, providing for the  administration  of  certain  funds  and
 accounts  related  to  the 2002-2003 budget, as amended by section 38 of
 part UU of chapter 54 of the  laws  of  2016,  is  amended  to  read  as
 follows:
   (a)  Subject  to  the provisions of chapter 59 of the laws of 2000 but
 notwithstanding the provisions of section 18 of  the  urban  development
 corporation  act, the corporation is hereby authorized to issue bonds or
 notes in one or more series in an  aggregate  principal  amount  not  to
 exceed [$197,000,000] $250,000,000 excluding bonds issued to fund one or
 more debt service reserve funds, to pay costs of issuance of such bonds,
 and  bonds  or  notes  issued to refund or otherwise repay such bonds or
 notes previously issued, for the  purpose  of  financing  capital  costs
 related to homeland security and training facilities for the division of
 state  police, the division of military and naval affairs, and any other
 state agency, including the reimbursement of any disbursements made from
 the state capital projects fund, and is hereby authorized to issue bonds
 or notes in one or more series in an aggregate principal amount  not  to
 exceed  [$509,600,000]  $654,800,000, excluding bonds issued to fund one
 or more debt service reserve funds, to pay costs  of  issuance  of  such
 bonds, and bonds or notes issued to refund or otherwise repay such bonds
 or notes previously issued, for the purpose of financing improvements to
 State office buildings and other facilities located statewide, including
 the  reimbursement  of  any  disbursements  made  from the state capital
 projects fund. Such bonds and notes of the corporation shall  not  be  a
 debt  of the state, and the state shall not be liable thereon, nor shall
 they be payable out of any funds other than those  appropriated  by  the
 state  to the corporation for debt service and related expenses pursuant
 to any service contracts executed pursuant to subdivision  (b)  of  this
 section,  and  such  bonds and notes shall contain on the face thereof a
 statement to such effect.
   § 34. Subdivision 1 of section 386-b of the public authorities law, as
 amended by section 39 of part UU of chapter 54 of the laws of  2016,  is
 amended to read as follows:
   1.  Notwithstanding  any  other  provision of law to the contrary, the
 authority, the dormitory authority and the urban development corporation
 are hereby authorized to issue bonds or notes in one or more series  for
 the  purpose  of  financing  peace  bridge projects and capital costs of
 state and local highways, parkways, bridges, the New York state thruway,
 Indian reservation roads, and facilities, and transportation infrastruc-
 ture  projects  including  aviation  projects,  non-MTA   mass   transit
 projects,  and rail service preservation projects, including work appur-
 tenant and ancillary thereto. The aggregate principal  amount  of  bonds
 authorized  to  be  issued  pursuant  to  this  section shall not exceed
 [three] FOUR billion [sixty-five million dollars  $3,065,000,000]  THREE

 S. 2009--C                         277                        A. 3009--C
 
 HUNDRED  SIXTY-FOUR  MILLION  DOLLARS  $4,364,000,000,  excluding  bonds
 issued to fund one or more debt service reserve funds, to pay  costs  of
 issuance  of  such bonds, and to refund or otherwise repay such bonds or
 notes  previously  issued.  Such  bonds  and notes of the authority, the
 dormitory authority and the urban development corporation shall not be a
 debt of the state, and the state shall not be liable thereon, nor  shall
 they  be  payable  out of any funds other than those appropriated by the
 state to the authority, the dormitory authority and the  urban  develop-
 ment  corporation for principal, interest, and related expenses pursuant
 to a service contract and such bonds and notes shall contain on the face
 thereof a statement to such effect. Except  for  purposes  of  complying
 with  the  internal  revenue  code,  any  interest income earned on bond
 proceeds shall only be used to pay debt service on such bonds.
   § 35. Paragraph (c) of subdivision 19 of section 1680  of  the  public
 authorities  law,  as  amended by section 40 of part UU of chapter 54 of
 the laws of 2016, is amended to read as follows:
   (c) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand, the dormitory authority shall not issue any  bonds  for  state
 university  educational  facilities  purposes if the principal amount of
 bonds to be issued when added to the aggregate principal amount of bonds
 issued by the dormitory authority on  and  after  July  first,  nineteen
 hundred  eighty-eight  for  state university educational facilities will
 exceed [eleven] TWELVE billion [six] THREE hundred [sixty-three]  FORTY-
 THREE  million  dollars;  provided,  however, that bonds issued or to be
 issued shall be excluded from such limitation if:  (1)  such  bonds  are
 issued to refund state university construction bonds and state universi-
 ty  construction  notes previously issued by the housing finance agency;
 or (2) such bonds are issued to refund bonds of the authority  or  other
 obligations  issued for state university educational facilities purposes
 and the present value of the aggregate debt  service  on  the  refunding
 bonds does not exceed the present value of the aggregate debt service on
 the bonds refunded thereby; provided, further that upon certification by
 the director of the budget that the issuance of refunding bonds or other
 obligations  issued between April first, nineteen hundred ninety-two and
 March thirty-first, nineteen hundred  ninety-three  will  generate  long
 term  economic  benefits  to  the  state, as assessed on a present value
 basis, such issuance will be deemed to have met the present  value  test
 noted  above. For purposes of this subdivision, the present value of the
 aggregate debt service of the refunding bonds  and  the  aggregate  debt
 service of the bonds refunded, shall be calculated by utilizing the true
 interest  cost  of the refunding bonds, which shall be that rate arrived
 at by doubling the semi-annual interest rate (compounded  semi-annually)
 necessary  to  discount the debt service payments on the refunding bonds
 from the payment dates thereof to the date of  issue  of  the  refunding
 bonds  to  the purchase price of the refunding bonds, including interest
 accrued thereon prior to the issuance  thereof.  The  maturity  of  such
 bonds,  other  than  bonds issued to refund outstanding bonds, shall not
 exceed the weighted average economic life, as  certified  by  the  state
 university construction fund, of the facilities in connection with which
 the  bonds  are  issued,  and  in any case not later than the earlier of
 thirty years or the expiration of the term of  any  lease,  sublease  or
 other  agreement  relating  thereto;  provided  that  no note, including
 renewals thereof, shall mature later than five years after the  date  of
 issuance  of  such  note. The legislature reserves the right to amend or
 repeal such limit, and the state of New York, the  dormitory  authority,
 the  state university of New York, and the state university construction

 S. 2009--C                         278                        A. 3009--C
 
 fund are prohibited from covenanting or making any other agreements with
 or for the benefit of bondholders which might in  any  way  affect  such
 right.
   §  36.  Paragraph  (c) of subdivision 14 of section 1680 of the public
 authorities law, as amended by section 41 of part UU of  chapter  54  of
 the laws of 2016, is amended to read as follows:
   (c) Subject to the provisions of chapter fifty-nine of the laws of two
 thousand,  (i)  the  dormitory  authority  shall not deliver a series of
 bonds for city university community college facilities, except to refund
 or to be substituted for or in lieu of other bonds in relation  to  city
 university  community college facilities pursuant to a resolution of the
 dormitory authority adopted before July first, nineteen hundred  eighty-
 five  or any resolution supplemental thereto, if the principal amount of
 bonds so to be issued when added  to  all  principal  amounts  of  bonds
 previously  issued by the dormitory authority for city university commu-
 nity college facilities, except to refund or to be substituted  in  lieu
 of  other bonds in relation to city university community college facili-
 ties will exceed the sum of four hundred twenty-five million dollars and
 (ii) the dormitory authority shall not deliver a series of bonds  issued
 for  city university facilities, including community college facilities,
 pursuant to a resolution of the dormitory authority adopted on or  after
 July  first,  nineteen  hundred  eighty-five,  except to refund or to be
 substituted for or in lieu of other bonds in relation to city university
 facilities and except for bonds issued pursuant to a resolution  supple-
 mental  to a resolution of the dormitory authority adopted prior to July
 first, nineteen hundred eighty-five, if the principal amount of bonds so
 to be issued when added to the  principal  amount  of  bonds  previously
 issued pursuant to any such resolution, except bonds issued to refund or
 to  be  substituted  for  or  in lieu of other bonds in relation to city
 university facilities, will exceed seven  billion  [five]  NINE  hundred
 [eighty-eight]  EIGHTY-ONE  million  [four] NINE hundred [eleven] SIXTY-
 EIGHT thousand dollars. The legislature reserves the right to  amend  or
 repeal  such  limit, and the state of New York, the dormitory authority,
 the city university, and the fund are  prohibited  from  covenanting  or
 making any other agreements with or for the benefit of bondholders which
 might in any way affect such right.
   §  37. Subdivision 10-a of section 1680 of the public authorities law,
 as amended by section 42 of part UU of chapter 54 of the laws  of  2016,
 is amended to read as follows:
   10-a.  Subject  to the provisions of chapter fifty-nine of the laws of
 two thousand, but notwithstanding any other provision of the law to  the
 contrary, the maximum amount of bonds and notes to be issued after March
 thirty-first,  two  thousand two, on behalf of the state, in relation to
 any locally sponsored community college, shall be [eight]  NINE  hundred
 [sixty-one]  FOURTEEN  million  [four]  FIVE hundred [fifty-four] NINETY
 thousand dollars. Such amount shall be  exclusive  of  bonds  and  notes
 issued  to  fund  any  reserve  fund  or funds, costs of issuance and to
 refund any outstanding bonds and notes, issued on behalf of  the  state,
 relating to a locally sponsored community college.
   § 38. Subdivision 1 of section 17 of part D of chapter 389 of the laws
 of  1997,  relating  to  the  financing  of  the correctional facilities
 improvement fund and the youth facility improvement fund, as amended  by
 section  43  of part UU of chapter 54 of the laws of 2016, is amended to
 read as follows:
   1. Subject to the provisions of chapter 59 of the laws  of  2000,  but
 notwithstanding the provisions of section 18 of section 1 of chapter 174

 S. 2009--C                         279                        A. 3009--C
 
 of the laws of 1968, the New York state urban development corporation is
 hereby  authorized  to  issue  bonds,  notes and other obligations in an
 aggregate principal amount  not  to  exceed  six  hundred  [forty-seven]
 EIGHTY-TWO  million  [sixty-five]  NINE HUNDRED FIFTEEN thousand dollars
 [($647,065,000)]  ($682,915,000),  which  authorization  increases   the
 aggregate principal amount of bonds, notes and other obligations author-
 ized by section 40 of chapter 309 of the laws of 1996, and shall include
 all bonds, notes and other obligations issued pursuant to chapter 211 of
 the  laws  of  1990,  as  amended  or supplemented. The proceeds of such
 bonds, notes or other obligations shall be paid to the state, for depos-
 it in the youth facilities improvement fund,  to  pay  for  all  or  any
 portion  of  the amount or amounts paid by the state from appropriations
 or reappropriations made to the office of children and  family  services
 from  the  youth  facilities  improvement fund for capital projects. The
 aggregate amount of bonds, notes and other obligations authorized to  be
 issued  pursuant  to  this  section  shall exclude bonds, notes or other
 obligations issued to refund or otherwise repay bonds,  notes  or  other
 obligations  theretofore  issued, the proceeds of which were paid to the
 state for all or a portion of the amounts expended  by  the  state  from
 appropriations  or  reappropriations  made to the office of children and
 family services; provided, however, that  upon  any  such  refunding  or
 repayment  the  total  aggregate  principal amount of outstanding bonds,
 notes or other obligations may be greater than six hundred [forty-seven]
 EIGHTY-TWO million [sixty-five] NINE HUNDRED  FIFTEEN  thousand  dollars
 [($647,065,000)] ($682,915,000), only if the present value of the aggre-
 gate  debt  service  of the refunding or repayment bonds, notes or other
 obligations to be issued shall not  exceed  the  present  value  of  the
 aggregate debt service of the bonds, notes or other obligations so to be
 refunded  or  repaid.  For the purposes hereof, the present value of the
 aggregate debt service of the refunding or  repayment  bonds,  notes  or
 other  obligations and of the aggregate debt service of the bonds, notes
 or other obligations so refunded  or  repaid,  shall  be  calculated  by
 utilizing  the  effective  interest  rate  of the refunding or repayment
 bonds, notes or other obligations, which shall be that rate  arrived  at
 by  doubling  the  semi-annual  interest rate (compounded semi-annually)
 necessary to discount the debt service  payments  on  the  refunding  or
 repayment bonds, notes or other obligations from the payment dates ther-
 eof  to  the date of issue of the refunding or repayment bonds, notes or
 other obligations and to  the  price  bid  including  estimated  accrued
 interest  or  proceeds  received  by the corporation including estimated
 accrued interest from the sale thereof.
   § 39. Paragraph b of subdivision 2 of section  9-a  of  section  1  of
 chapter 392 of the laws of 1973, constituting the New York state medical
 care  facilities finance agency act, as amended by section 44 of part UU
 of chapter 54 of the laws of 2016, is amended to read as follows:
   b. The agency shall have power and is hereby authorized from  time  to
 time  to  issue negotiable bonds and notes in conformity with applicable
 provisions of the uniform commercial code in such principal  amount  as,
 in  the  opinion  of  the  agency, shall be necessary, after taking into
 account other moneys which may be available for the purpose, to  provide
 sufficient  funds  to  the  facilities  development  corporation, or any
 successor agency, for the financing or refinancing of or for the design,
 construction, acquisition, reconstruction, rehabilitation or improvement
 of mental health services facilities pursuant to  paragraph  a  of  this
 subdivision,  the payment of interest on mental health services improve-
 ment bonds and mental health services improvement notes issued for  such

 S. 2009--C                         280                        A. 3009--C
 
 purposes,  the establishment of reserves to secure such bonds and notes,
 the cost or premium of bond insurance or  the  costs  of  any  financial
 mechanisms  which  may  be used to reduce the debt service that would be
 payable  by the agency on its mental health services facilities improve-
 ment bonds and notes and all other expenditures of the  agency  incident
 to  and  necessary or convenient to providing the facilities development
 corporation, or any successor agency, with funds for  the  financing  or
 refinancing of or for any such design, construction, acquisition, recon-
 struction, rehabilitation or improvement and for the refunding of mental
 hygiene improvement bonds issued pursuant to section 47-b of the private
 housing  finance law; provided, however, that the agency shall not issue
 mental health services facilities improvement bonds  and  mental  health
 services  facilities  improvement notes in an aggregate principal amount
 exceeding eight billion [twenty-one] THREE  HUNDRED  NINETY-TWO  million
 eight hundred fifteen thousand dollars, excluding mental health services
 facilities  improvement  bonds  and  mental  health  services facilities
 improvement notes issued to refund outstanding  mental  health  services
 facilities  improvement  bonds  and  mental  health  services facilities
 improvement notes; provided, however, that upon any  such  refunding  or
 repayment  of mental health services facilities improvement bonds and/or
 mental health services facilities improvement notes the total  aggregate
 principal  amount  of  outstanding  mental  health  services  facilities
 improvement bonds and mental health facilities improvement notes may  be
 greater than eight billion [twenty-one] THREE HUNDRED NINETY-TWO million
 eight  hundred  fifteen  thousand dollars only if, except as hereinafter
 provided with respect to mental health  services  facilities  bonds  and
 mental  health services facilities notes issued to refund mental hygiene
 improvement bonds authorized to be issued pursuant to the provisions  of
 section  47-b  of  the private housing finance law, the present value of
 the aggregate debt service of the refunding or  repayment  bonds  to  be
 issued  shall not exceed the present value of the aggregate debt service
 of the bonds to be refunded or repaid. For purposes hereof, the  present
 values  of  the  aggregate  debt  service  of the refunding or repayment
 bonds, notes or other obligations and of the aggregate debt  service  of
 the  bonds,  notes  or other obligations so refunded or repaid, shall be
 calculated by utilizing the effective interest rate of the refunding  or
 repayment  bonds,  notes  or other obligations, which shall be that rate
 arrived at by doubling the semi-annual interest rate  (compounded  semi-
 annually) necessary to discount the debt service payments on the refund-
 ing  or  repayment  bonds,  notes  or other obligations from the payment
 dates thereof to the date of issue of the refunding or repayment  bonds,
 notes  or  other  obligations  and  to the price bid including estimated
 accrued interest or proceeds received by the authority  including  esti-
 mated  accrued  interest  from  the sale thereof. Such bonds, other than
 bonds issued to refund outstanding bonds, shall be scheduled  to  mature
 over  a  term not to exceed the average useful life, as certified by the
 facilities development corporation, of the projects for which the  bonds
 are  issued, and in any case shall not exceed thirty years and the maxi-
 mum maturity of notes or any renewals  thereof  shall  not  exceed  five
 years from the date of the original issue of such notes. Notwithstanding
 the  provisions  of this section, the agency shall have the power and is
 hereby authorized to issue mental health services facilities improvement
 bonds and/or mental health  services  facilities  improvement  notes  to
 refund  outstanding  mental  hygiene  improvement bonds authorized to be
 issued pursuant to the provisions of section 47-b of the private housing
 finance law and the amount of  bonds  issued  or  outstanding  for  such

 S. 2009--C                         281                        A. 3009--C
 
 purposes shall not be included for purposes of determining the amount of
 bonds  issued pursuant to this section. The director of the budget shall
 allocate the aggregate principal authorized to be issued by  the  agency
 among  the office of mental health, office for people with developmental
 disabilities, and the office of alcoholism and substance abuse services,
 in consultation with their respective commissioners to finance  bondable
 appropriations previously approved by the legislature.
   § 40. Intentionally omitted.
   §  41.    Section  1680-r of the public authorities law, as amended by
 section 40 of part I of chapter 60 of the laws of 2015, subdivision 1 as
 amended by section 48 of part UU of chapter 54 of the laws of  2016,  is
 amended to read as follows:
   §  1680-r.  Authorization  for  the  issuance of bonds for the capital
 restructuring financing program [and], the health care  facility  trans-
 formation  [program]  PROGRAMS,  AND  THE ESSENTIAL HEALTH CARE PROVIDER
 PROGRAM.  1. Notwithstanding the provisions of  any  other  law  to  the
 contrary,  the dormitory authority and the urban development corporation
 are hereby authorized to issue bonds or notes in one or more series  for
 the  purpose  of  funding  project  costs  for the capital restructuring
 financing program for health care and related facilities licensed pursu-
 ant to the public health law or the mental hygiene law and  other  state
 costs  associated  with  such  capital  projects  [and], the health care
 facility transformation [program] PROGRAMS,  AND  THE  ESSENTIAL  HEALTH
 CARE  PROVIDER PROGRAM.  The aggregate principal amount of bonds author-
 ized to be issued pursuant to this section shall not exceed two  billion
 [four] SEVEN hundred million dollars, excluding bonds issued to fund one
 or  more  debt  service  reserve funds, to pay costs of issuance of such
 bonds, and bonds or notes issued to refund or otherwise repay such bonds
 or notes previously issued.  Such  bonds  and  notes  of  the  dormitory
 authority  and  the urban development corporation shall not be a debt of
 the state, and the state shall not be liable thereon, nor shall they  be
 payable  out  of any funds other than those appropriated by the state to
 the dormitory authority and the urban development corporation for  prin-
 cipal, interest, and related expenses pursuant to a service contract and
 such  bonds  and  notes shall contain on the face thereof a statement to
 such effect. Except for purposes of complying with the internal  revenue
 code,  any interest income earned on bond proceeds shall only be used to
 pay debt service on such bonds.
   2. Notwithstanding any other provision of  law  to  the  contrary,  in
 order to assist the dormitory authority and the urban development corpo-
 ration  in  undertaking  the financing for project costs for the capital
 restructuring financing program for health care and  related  facilities
 licensed pursuant to the public health law or the mental hygiene law and
 other  state  costs  associated  with  such  capital projects [and], the
 health care facility transformation [program] PROGRAMS, AND  THE  ESSEN-
 TIAL  HEALTH CARE PROVIDER PROGRAM, the director of the budget is hereby
 authorized to enter into one or more service contracts with the dormito-
 ry authority and the urban development corporation, none of which  shall
 exceed  thirty  years in duration, upon such terms and conditions as the
 director of the budget and the dormitory authority and the urban  devel-
 opment  corporation  agree,  so  as to annually provide to the dormitory
 authority and the urban development corporation, in the aggregate, a sum
 not to exceed the principal, interest, and related expenses required for
 such bonds and notes. Any service contract entered into pursuant to this
 section shall provide that the obligation of the state to pay the amount
 therein provided shall not constitute a debt of  the  state  within  the

 S. 2009--C                         282                        A. 3009--C
 
 meaning of any constitutional or statutory provision and shall be deemed
 executory  only  to the extent of monies available and that no liability
 shall be incurred by the state beyond  the  monies  available  for  such
 purpose,  subject  to  annual appropriation by the legislature. Any such
 contract or any payments made or to be made thereunder may  be  assigned
 and  pledged by the dormitory authority and the urban development corpo-
 ration as security for its  bonds  and  notes,  as  authorized  by  this
 section.
   §  42.    Section  50  of section 1 of chapter 174 of the laws of 1968
 constituting the New York state urban development  corporation  act,  as
 added  by  section  46-b of part I of chapter 55 of the laws of 2014, is
 amended to read as follows:
   § 50. 1. Notwithstanding the  provisions  of  any  other  law  to  the
 contrary,  the dormitory authority and the urban development corporation
 are hereby authorized to issue bonds or notes in one or more series  for
 the  purpose  of  funding  project  costs  undertaken by or on behalf of
 special act school districts, state-supported schools for the blind  and
 deaf  [and],  approved  private  special  education  schools, NON-PUBLIC
 SCHOOLS, COMMUNITY CENTERS, DAY CARE FACILITIES, and other  state  costs
 associated with such capital projects. The aggregate principal amount of
 bonds  authorized to be issued pursuant to this section shall not exceed
 [five] FIFTY-FIVE million dollars,  excluding bonds issued to  fund  one
 or  more  debt  service  reserve funds, to pay costs of issuance of such
 bonds, and bonds or notes issued to refund or otherwise repay such bonds
 or notes previously issued.  Such  bonds  and  notes  of  the  dormitory
 authority  and  the urban development corporation shall not be a debt of
 the state, and the state shall not be liable thereon, nor shall they  be
 payable  out  of any funds other than those appropriated by the state to
 the dormitory authority and the urban development corporation for  prin-
 cipal, interest, and related expenses pursuant to a service contract and
 such  bonds  and  notes shall contain on the face thereof a statement to
 such effect.  Except for purposes of complying with the internal revenue
 code, any interest income earned on bond proceeds shall only be used  to
 pay debt service on such bonds.
   2.  Notwithstanding  any  other  provision  of law to the contrary, in
 order to assist the dormitory authority and the urban development corpo-
 ration in undertaking the financing for project costs undertaken  by  or
 on  behalf  of special act school districts, state-supported schools for
 the blind and deaf and approved private special education schools,  NON-
 PUBLIC  SCHOOLS, COMMUNITY CENTERS, DAY CARE FACILITIES, and other state
 costs associated with such capital projects, the director of the  budget
 is  hereby  authorized  to enter into one or more service contracts with
 the dormitory authority and the urban development corporation,  none  of
 which  shall exceed thirty years in duration, upon such terms and condi-
 tions as the director of the budget and the dormitory authority and  the
 urban  development  corporation  agree, so as to annually provide to the
 dormitory authority and the urban development corporation, in the aggre-
 gate, a sum not to exceed the principal, interest, and related  expenses
 required  for  such  bonds  and notes. Any service contract entered into
 pursuant to this section shall provide that the obligation of the  state
 to  pay  the  amount therein provided shall not constitute a debt of the
 state within the meaning of any constitutional  or  statutory  provision
 and shall be deemed executory only to the extent of monies available and
 that  no  liability  shall  be  incurred  by the state beyond the monies
 available for such purpose,  subject  to  annual  appropriation  by  the
 legislature. Any such contract or any payments made or to be made there-

 S. 2009--C                         283                        A. 3009--C
 
 under  may  be  assigned  and pledged by the dormitory authority and the
 urban development corporation as security for its bonds  and  notes,  as
 authorized by this section.
   [3. Subdivisions 1 and 2 of this section shall take effect only in the
 event  that  a  chapter of the laws of 2014, enacting the "smart schools
 bond act of 2014", is submitted to the people at the general election to
 be held in November 2014 and is approved by a majority of all votes cast
 for and against it at such election. Upon such approval, subdivisions  1
 and 2 of this section shall take effect immediately. If such approval is
 not  obtained,  subdivisions 1 and 2 of this section shall expire and be
 deemed repealed.]
   § 42-a. Subdivision (a) of section 28 of part Y of chapter 61  of  the
 laws  of  2005,  relating to providing for the administration of certain
 funds and accounts related  to  the  2005-2006  budget,  as  amended  by
 section  48  of part HH of chapter 57 of the laws of 2013, is amended to
 read as follows:
   (a) Subject to the provisions of chapter 59 of the laws of  2000,  but
 notwithstanding  any  provisions  of  law  to  the contrary, one or more
 authorized issuers as defined by section 68-a of the state  finance  law
 are  hereby  authorized to issue bonds or notes in one or more series in
 an aggregate principal amount not to exceed  [$27,000,000]  $47,000,000,
 excluding  bonds  issued  to  finance  one  or more debt service reserve
 funds, to pay costs of issuance of such bonds, and bonds or notes issued
 to refund or otherwise repay such bonds or notes previously issued,  for
 the  purpose of financing capital projects for public protection facili-
 ties in the Division of Military and Naval  Affairs,  debt  service  and
 leases;  and  to reimburse the state general fund for disbursements made
 therefor. Such bonds and notes of such authorized issuer shall not be  a
 debt  of the state, and the state shall not be liable thereon, nor shall
 they be payable out of any funds other than those  appropriated  by  the
 state  to  such  authorized issuer for debt service and related expenses
 pursuant to any service contract executed pursuant to subdivision (b) of
 this section and such bonds and notes shall contain on the face  thereof
 a  statement  to  such effect. Except for purposes of complying with the
 internal revenue code, any interest income earned on bond proceeds shall
 only be used to pay debt service on such bonds.
   § 42-b. Subdivision 1 of section 49 of section 1 of chapter 174 of the
 laws of 1968, constituting the New York state urban  development  corpo-
 ration  act,  as  amended  by section 49 of part UU of chapter 54 of the
 laws of 2016, is amended to read as follows:
   1. Notwithstanding the provisions of any other law  to  the  contrary,
 the  dormitory  authority  and  the corporation are hereby authorized to
 issue bonds or notes in one or more series for the  purpose  of  funding
 project  costs  for the state and municipal facilities program and other
 state costs associated with such capital projects. The aggregate princi-
 pal amount of bonds authorized to be issued  pursuant  to  this  section
 shall  not  exceed  one  billion [five] NINE hundred [forty] TWENTY-FIVE
 million dollars, excluding bonds issued to fund one or more debt service
 reserve funds, to pay costs of issuance of  such  bonds,  and  bonds  or
 notes issued to refund or otherwise repay such bonds or notes previously
 issued.  Such  bonds and notes of the dormitory authority and the corpo-
 ration shall not be a debt of the state, and  the  state  shall  not  be
 liable  thereon,  nor  shall they be payable out of any funds other than
 those appropriated by the state  to  the  dormitory  authority  and  the
 corporation  for principal, interest, and related expenses pursuant to a
 service contract and such bonds and notes  shall  contain  on  the  face

 S. 2009--C                         284                        A. 3009--C
 
 thereof  a  statement  to  such effect. Except for purposes of complying
 with the internal revenue code,  any  interest  income  earned  on  bond
 proceeds shall only be used to pay debt service on such bonds.
   § 42-c. Subdivision 1 of section 51 of section 1 of chapter 174 of the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, as amended by section 50 of part UU of  chapter  54  of  the
 laws of 2016, is amended to read as follows:
   1.  Notwithstanding  the  provisions of any other law to the contrary,
 the dormitory authority and the urban development corporation are hereby
 authorized to issue bonds or notes in one or more series for the purpose
 of funding  project  costs  for  the  nonprofit  infrastructure  capital
 investment  program  and  other state costs associated with such capital
 projects. The aggregate principal  amount  of  bonds  authorized  to  be
 issued  pursuant  to  this  section  shall not exceed one hundred TWENTY
 million dollars, excluding bonds issued to fund one or more debt service
 reserve funds, to pay costs of issuance of  such  bonds,  and  bonds  or
 notes issued to refund or otherwise repay such bonds or notes previously
 issued.  Such  bonds  and notes of the dormitory authority and the urban
 development corporation shall not be a debt of the state, and the  state
 shall  not be liable thereon, nor shall they be payable out of any funds
 other than those appropriated by the state to  the  dormitory  authority
 and  the  urban  development  corporation  for  principal, interest, and
 related expenses pursuant to a service contract and such bonds and notes
 shall contain on the face thereof a statement to such effect. Except for
 purposes of complying with  the  internal  revenue  code,  any  interest
 income earned on bond proceeds shall only be used to pay debt service on
 such bonds.
   §  43.  Paragraph  (b)  of  subdivision  4  of section 72 of the state
 finance law, as amended by section 27 of part I of  chapter  55  of  the
 laws of 2014, is amended to read as follows:
   (b)  On  or  before the beginning of each quarter, the director of the
 budget may certify to the state  comptroller  the  estimated  amount  of
 monies  that  shall be reserved in the general debt service fund for the
 payment of debt service and related expenses payable by such fund during
 each month of the state fiscal year, excluding  payments  due  from  the
 revenue  bond tax fund. Such certificate may be periodically updated, as
 necessary. Notwithstanding any provision of law  to  the  contrary,  the
 state  comptroller  shall  reserve  in the general debt service fund the
 amount of monies identified on such certificate  as  necessary  for  the
 payment  of debt service and related expenses during the current or next
 succeeding quarter of the state fiscal year. Such monies reserved  shall
 not  be  available  for  any  other  purpose.  Such certificate shall be
 reported to the chairpersons of the Senate  Finance  Committee  and  the
 Assembly  Ways  and  Means  Committee.  The provisions of this paragraph
 shall expire June thirtieth, two thousand [seventeen] TWENTY.
   § 44. Intentionally omitted.
   § 45. Intentionally omitted.
   § 46. Intentionally omitted.
   § 47. Intentionally omitted.
   § 48. Paragraphs (a) and (g) of subdivision 2 of  section  56  of  the
 state  finance  law,  as  amended by chapter 11 of the laws of 1994, are
 amended to read as follows:
   (a) Refunding bonds shall be issued only when  the  comptroller  shall
 have  certified that, as a result of the refunding, there will be a debt
 service savings to the state on a present value basis as a result of the
 refunding transaction and that either (i)  the  refunding  will  benefit

 S. 2009--C                         285                        A. 3009--C
 
 state  taxpayers  over  the  life of the refunding bonds by achieving an
 actual debt service savings each year OR STATE FISCAL  YEAR  during  the
 term to maturity of the refunding bonds when debt service on the refund-
 ing bonds is expected to be paid from legislative appropriations or (ii)
 debt  service on the refunding bonds shall be payable in annual install-
 ments of principal and interest which result in substantially  level  or
 declining debt service payments pursuant to paragraph (b) of subdivision
 two  of  section  fifty-seven  of this [chapter] ARTICLE.   Such certif-
 ication by the comptroller shall be conclusive as to  matters  contained
 therein after the refunding bonds have been issued.
   (g)  Any refunding bonds issued pursuant to this section shall be paid
 in annual installments which shall, so long as any refunding  bonds  are
 outstanding, be made in each year OR STATE FISCAL YEAR in which install-
 ments  were  due  on  the bonds to be refunded and shall be in an amount
 which shall result in annual debt service payments which shall  be  less
 in  each year OR STATE FISCAL YEAR than the annual debt service payments
 on the bonds to be refunded unless debt service on the  refunding  bonds
 is  payable  in annual installments of principal and interest which will
 result in substantially level or declining debt service payments  pursu-
 ant  to  paragraph (b) of subdivision two of section fifty-seven of this
 [chapter] ARTICLE.
   § 49. Subdivisions 1, 2 and 6 of section 57 of the state finance  law,
 as  amended  by  chapter  11 of the laws of 1994, are amended to read as
 follows:
   1. Whenever the legislature, after authorization of a  bond  issue  by
 the people at a general election, as provided by section eleven of arti-
 cle  seven of the STATE constitution, OR AS PROVIDED BY SECTION THREE OF
 ARTICLE EIGHTEEN OF THE STATE CONSTITUTION, shall  have  authorized,  by
 one  or  more  laws, the creation of a state debt or debts, bonds of the
 state, to the amount of the debt or debts so authorized, shall be issued
 and sold by the state comptroller. Any appropriation from  the  proceeds
 of the sale of bonds, pursuant to this section, shall be deemed to be an
 authorization for the creation of a state debt or debts to the extent of
 such  appropriation.  The  state comptroller may issue and sell a single
 series of bonds pursuant to one or more such authorizations and for  one
 or  more  duly  authorized works or purposes. As part of the proceedings
 for each such issuance and sale of bonds, the  state  comptroller  shall
 designate  the works or purposes for which they are issued. It shall not
 be necessary for him to designate the works or purposes  for  which  the
 bonds are issued on the face of the bonds. The proceeds from the sale of
 bonds  for  more  than one work or purpose shall be separately accounted
 for according to the works or purposes designated for such sale  by  the
 comptroller  and the proceeds received for each work or purpose shall be
 expended only for such work or purpose. The bonds shall bear interest at
 such rate or rates as in the judgment of the state  comptroller  may  be
 sufficient or necessary to effect a sale of the bonds, and such interest
 shall  be  payable  at  least semi-annually, in the case of bonds with a
 fixed interest rate, and at least annually, in the case of bonds with an
 interest rate that varies periodically, in the city of New  York  unless
 annual  payments of principal and interest result in substantially level
 or declining debt service payments over the life of an  issue  of  bonds
 pursuant  to  paragraph (b) of subdivision two of this section or unless
 accrued interest is contributed to a sinking  fund  in  accordance  with
 subdivision  three  of  section  twelve  of  article  seven of the state
 constitution, in which case interest shall be paid at such times and  at

 S. 2009--C                         286                        A. 3009--C
 
 such  places  as  shall  be determined by the state comptroller prior to
 issuance of the bonds.
   2.  Such  bonds,  or  the portion thereof at any time issued, shall be
 made payable (a) in equal annual principal installments or (b) in annual
 installments of principal and interest  which  result  in  substantially
 level  or  declining  debt service payments, over the life of the bonds,
 the first of which annual installments shall be payable  not  more  than
 one  year  from the date of issue and the last of which shall be payable
 at such time as the comptroller may determine but not  more  than  forty
 years OR STATE FISCAL YEARS after the date of issue, NOT MORE THAN FIFTY
 YEARS AFTER THE DATE OF ISSUE IN THE CASE OF HOUSING BONDS, AND NOT MORE
 THAN  TWENTY-FIVE YEARS IN THE CASE OF URBAN RENEWAL BONDS.  Where bonds
 are payable pursuant to paragraph (b) of this  subdivision,  except  for
 the  year  OR  STATE FISCAL YEAR of initial issuance if less than a full
 year of debt service is to become due in that year OR STATE FISCAL YEAR,
 either (i) the greatest aggregate amount of debt service payable in  any
 YEAR  OR  STATE  fiscal  year shall not differ from the lowest aggregate
 amount of debt service payable in any other YEAR OR STATE fiscal year by
 more than five percent or (ii) the aggregate amount of debt  service  in
 each  YEAR  OR STATE fiscal year shall be less than the aggregate amount
 of debt service in the immediately preceding YEAR OR STATE fiscal  year.
 For purposes of this subdivision, debt service shall include all princi-
 pal,  redemption  price, sinking fund installments or contributions, and
 interest scheduled to become due. For purposes  of  determining  whether
 debt  service is level or declining on bonds issued with a variable rate
 of interest pursuant to paragraph b of subdivision four of this section,
 the comptroller shall assume a market rate of interest as of the date of
 issuance. Where the comptroller determines that interest  on  any  bonds
 shall be compounded and payable at maturity, such bonds shall be payable
 only in accordance with paragraph (b) of this subdivision unless accrued
 interest is contributed to a sinking fund in accordance with subdivision
 three  of  section twelve of article seven of the state constitution. In
 no case shall any bonds or portion thereof be issued for a period longer
 than the probable life of the work or purpose, or part thereof, to which
 the proceeds of the bonds are to be applied, or in the alternative,  the
 weighted average period of the probable life of the works or purposes to
 which  the proceeds of the bonds are to be applied taking into consider-
 ation the respective amounts of bonds issued for each work  or  purpose,
 as  may  be determined under section sixty-one of this [chapter] ARTICLE
 and in accordance with the certificate of the  commissioner  of  general
 services,  and/or  the  commissioner of transportation, state architect,
 STATE COMMISSIONER OF HOUSING AND URBAN RENEWAL, or other authority,  as
 the  case may be, having charge by law of the acquisition, construction,
 work or improvement for which the debt was authorized. Such  certificate
 shall  be  filed  in the office of the state comptroller and shall state
 the group, or, where the probable lives of two or more  separable  parts
 of  the  work  or  purposes are different, the groups, specified in such
 section, for which the amount or amounts, shall be provided by the issu-
 ance and sale of bonds. Weighted average period of probable  life  shall
 be  determined  by computing the sum of the products derived from multi-
 plying the dollar value of the portion of the debt contracted  for  each
 work  or purpose (or class of works or purposes) by the probable life of
 such work or purpose (or class of works or purposes)  and  dividing  the
 resulting  sum  by the dollar value of the entire debt after taking into
 consideration  any  original  issue  discount.  Any  costs  of  issuance
 financed with bond proceeds shall be prorated among the various works or

 S. 2009--C                         287                        A. 3009--C
 
 purposes.  Such bonds, or the portion thereof at any time sold, shall be
 of such denominations, subject to the foregoing provisions, as the state
 comptroller may determine. Notwithstanding the foregoing  provisions  of
 this  subdivision,  the  comptroller  may issue all or a portion of such
 bonds as serial debt, term debt or a combination  thereof,  maturing  as
 required  by  this subdivision, provided that the comptroller shall have
 provided for the retirement each year OR STATE FISCAL YEAR, or otherwise
 have provided for the  payment  of,  through  sinking  fund  installment
 payments or otherwise, a portion of such term bonds in an amount meeting
 the  requirements  of  paragraph (a) or (b) of this subdivision or shall
 have established a sinking fund and provided for  contributions  thereto
 as  provided  in subdivision eight of this section and section twelve of
 article seven of the state constitution.
   6. Except with respect to bonds issued in the manner provided in para-
 graph (c) of subdivision seven of this section, all bonds of  the  state
 of New York which the comptroller of the state of New York is authorized
 to  issue  and  sell,  shall be executed in the name of the state of New
 York by the manual or facsimile signature of the state  comptroller  and
 his seal (or a facsimile thereof) shall be thereunto affixed, imprinted,
 engraved  or  otherwise  reproduced.  In  case the state comptroller who
 shall have signed and sealed any of the bonds shall cease  to  hold  the
 office  of state comptroller before the bonds so signed and sealed shall
 have been actually countersigned and delivered by the  fiscal  agent  OR
 TRUSTEE, such bonds may, nevertheless, be countersigned and delivered as
 herein  provided,  and  may  be  issued  as if the state comptroller who
 signed and sealed such bonds had not ceased to  hold  such  office.  Any
 bond  of a series may be signed and sealed on behalf of the state of New
 York by such person as at the actual time of the execution of such  bond
 shall  hold the office of comptroller of the state of New York, although
 at the date of the bonds of such series such person may  not  have  held
 such  office.    The  coupons to be attached to the coupon bonds of each
 series shall be signed by the facsimile signature  of  the  state  comp-
 troller  of  the  state of New York or by any person who shall have held
 the office of state comptroller of the state of New York on or after the
 date of the bonds of such series, notwithstanding that such  person  may
 not have been such state comptroller at the date of any such bond or may
 have  ceased to be such state comptroller at the date when any such bond
 shall be actually countersigned and delivered.  The bonds of each series
 shall be countersigned  with  the  manual  signature  of  an  authorized
 employee  of  the  fiscal  agent OR TRUSTEE of the state of New York. No
 bond and no coupon thereunto appertaining shall be valid  or  obligatory
 for  any  purpose  until  such  manual countersignature of an authorized
 employee of the fiscal agent OR TRUSTEE of the state of New  York  shall
 have been duly affixed to such bond.
   § 50. Sections 58, 59 and 60 of the state finance law are REPEALED.
   §  51.  Section 62 of the state finance law, as amended by chapter 219
 of the laws of 1999, is amended to read as follows:
   § 62. Replacement of lost certificates. The comptroller, who  may  act
 through  his  duly authorized fiscal agent OR TRUSTEE appointed pursuant
 to section sixty-five of this article, may issue to the lawful owner  of
 any  certificate or bond issued by him in behalf of this state, which he
 or such duly authorized fiscal agent OR TRUSTEE  is  satisfied,  by  due
 proof  filed  in his office or with such duly authorized fiscal agent OR
 TRUSTEE, has been lost or casually destroyed, a new certificate or bond,
 corresponding in date, number and amount with the certificate or bond so
 lost or destroyed, and expressing on its  face  that  it  is  a  renewed

 S. 2009--C                         288                        A. 3009--C
 
 certificate or bond. No such renewed certificate or bond shall be issued
 unless  sufficient  security is given to satisfy the lawful claim of any
 person to the original certificate or bond, or to any interest  therein.
 The  comptroller shall report annually to the legislature the number and
 amount of all renewed certificates or bonds so issued.  If  the  renewed
 certificate  is  issued  by  the state's duly authorized fiscal agent OR
 TRUSTEE and such agent OR TRUSTEE agrees to be responsible for any  loss
 suffered  as  a  result  of  unauthorized payment, the security shall be
 provided to and approved by the fiscal agent OR  TRUSTEE  and  no  addi-
 tional  approval  by  the  comptroller  or the attorney general shall be
 required.
   § 52. Section 65 of the state finance law, as amended by  chapter  459
 of the laws of 1948, subdivision 1 as amended by chapter 219 of the laws
 of 1999, is amended to read as follows:
   §  65.  Appointment  of fiscal agent OR TRUSTEE; powers and duties. 1.
 Notwithstanding any other provisions of this chapter,  the  comptroller,
 on  behalf  of the state, may contract from time to time for a period or
 periods not exceeding ten years each, except in the case of  a  bank  or
 trust  company  agreeing  to  act as issuing, paying and/or tender agent
 with respect to a particular issue of variable interest  rate  bonds  in
 which  case  the comptroller, on behalf of the state, may contract for a
 period not to exceed the term of such particular issue  of  bonds,  with
 one or more banks or trust companies located in the city of New York, to
 act  as fiscal agent, TRUSTEE, or agents of the state, and for the main-
 tenance of an office for the registration, conversion, reconversion  and
 transfer  of the bonds and notes of the state, including the preparation
 and substitution of new bonds and notes, for the payment of the  princi-
 pal  thereof  and  interest  thereon, [and] for related services, AND TO
 OTHERWISE EFFECTUATE THE POWERS AND DUTIES OF A FISCAL AGENT OR  TRUSTEE
 ON  BEHALF OF THE STATE IN ALL SUCH RESPECTS AS MAY BE DETERMINED BY THE
 COMPTROLLER FOR SUCH BONDS AND NOTES, and for the payment by  the  state
 of such compensation therefor as the comptroller may determine. Any such
 fiscal  agent  OR TRUSTEE may, where authorized pursuant to the terms of
 its contract, accept delivery of obligations purchased by the state  and
 of  securities deposited with the state pursuant to sections one hundred
 five and one hundred six of this chapter and hold the same in  safekeep-
 ing,  make  delivery to purchasers of obligations sold by the state, and
 accept deposit of such proceeds of sale without securing the  same.  Any
 such  contract  may  also provide that such fiscal agent OR TRUSTEE may,
 upon the written instruction of the comptroller, deposit any obligations
 or securities which it receives pursuant to such contract, in an account
 with a federal reserve bank, to be held in such account in the  form  of
 entries  on the books of the federal reserve bank, and to be transferred
 in the event of any assignment,  sale,  redemption,  maturity  or  other
 disposition  of  such obligations or securities, by entries on the books
 of the federal reserve bank. Any such bank or  trust  company  shall  be
 responsible  to  the  people  of  this  state  for the faithful and safe
 conduct of the business of said office, for the fidelity  and  integrity
 of  its officers and agents employed in such office, and for all loss or
 damage which may result from any failure to discharge their duties,  and
 for any improper and incorrect discharge of those duties, and shall save
 the  state  free and harmless from any and all loss or damage occasioned
 by or incurred in the performance of such services.   Any such  contract
 may  be  terminated  by the comptroller at any time. In the event of any
 change in any office maintained pursuant to any such contract, the comp-

 S. 2009--C                         289                        A. 3009--C

 troller shall give public notice thereof in such form as he  may  deter-
 mine appropriate.
   2.  The  comptroller  shall  prescribe  rules  and regulations for the
 registration, conversion, reconversion and transfer  of  the  bonds  and
 notes  of  the  state, including the preparation and substitution of new
 bonds, for the payment of the principal thereof  and  interest  thereon,
 and  for  other authorized services to be performed by such fiscal agent
 OR TRUSTEE. Such rules and  regulations,  and  all  amendments  thereof,
 shall  be prepared in duplicate, one copy of which shall be filed in the
 office of the department of audit and  control  and  the  other  in  the
 office  of  the  department  of  state. A copy thereof may be filed as a
 public record in such other offices as the  comptroller  may  determine.
 Such rules and regulations shall be obligatory on all persons having any
 interests  in  bonds  and  notes  of  the  state heretofore or hereafter
 issued.
   § 53. Intentionally omitted.
   § 54. Subdivision 2 of section 365 of the public authorities  law,  as
 separately amended by sections 349 and 381 of chapter 190 of the laws of
 1990, is amended to read as follows:
   2. The notes and bonds shall be authorized by resolution of the board,
 shall  bear  such date or dates and mature at such time or times, in the
 case of notes and any renewals thereof within  five  years  after  their
 respective dates and in the case of bonds not exceeding forty years from
 their  respective  dates, as such resolution or resolutions may provide.
 The notes and bonds shall bear interest at such rate  or  rates,  be  in
 such  denominations, be in such form, either coupon or registered, carry
 such registration privileges, be executed in such manner, be payable  in
 such  medium of payment, at such place or places, and be subject to such
 terms of redemption as such resolution or resolutions may provide. Bonds
 and notes shall be sold by the authority, at public or private sale,  at
 such  price or prices as the authority may determine. Bonds and notes of
 the authority shall not be sold by the authority at private sale  unless
 such  sale  and  the  terms thereof have been approved in writing by the
 comptroller, where such sale is not to the comptroller, or by the direc-
 tor of the budget, where such sale is to  the  comptroller.  [Bonds  and
 notes  sold at public sale shall be sold by the comptroller, as agent of
 the authority, in such manner as the authority, with the approval of the
 comptroller, shall determine.]
   § 55. This act shall take effect immediately and shall  be  deemed  to
 have been in full force and effect on and after April 1, 2017; provided,
 however,  that  the  provisions of sections one, two, three, four, five,
 six, seven, eight,  thirteen,  fourteen,  fifteen,  sixteen,  seventeen,
 eighteen,  nineteen,  twenty,  twenty-one,  twenty-two, twenty-two-e and
 twenty-two-f of this act shall expire March 31, 2018 when upon such date
 the provisions of such sections shall be deemed repealed; and  provided,
 further,  that  section  twenty-two-c of this act shall expire March 31,
 2021.
 
                                 PART YYY
 
   Section 1. Paragraph e of subdivision 1 of section 211-d of the educa-
 tion law, as amended by section 1 of part A of chapter 54 of the laws of
 2016, is amended to read as follows:
   e. Notwithstanding paragraphs a and b of this  subdivision,  a  school
 district  that  submitted a contract for excellence for the two thousand
 eight--two thousand nine school year shall submit a contract for  excel-

 S. 2009--C                         290                        A. 3009--C
 
 lence  for  the  two  thousand  nine--two  thousand  ten  school year in
 conformity with the requirements of subparagraph (vi) of paragraph a  of
 subdivision  two  of this section unless all schools in the district are
 identified  as  in  good  standing  and  provided further that, a school
 district that submitted a contract for excellence for the  two  thousand
 nine--two  thousand  ten school year, unless all schools in the district
 are identified as in good standing, shall submit a contract  for  excel-
 lence for the two thousand eleven--two thousand twelve school year which
 shall,  notwithstanding  the  requirements of subparagraph (vi) of para-
 graph a of subdivision two of this section, provide for the  expenditure
 of  an  amount  which  shall  be not less than the product of the amount
 approved by the commissioner in the contract for excellence for the  two
 thousand   nine--two   thousand  ten  school  year,  multiplied  by  the
 district's gap elimination adjustment percentage  and  provided  further
 that, a school district that submitted a contract for excellence for the
 two thousand eleven--two thousand twelve school year, unless all schools
 in  the  district  are  identified  as  in good standing, shall submit a
 contract for excellence for the two thousand twelve--two thousand  thir-
 teen  school  year  which  shall,  notwithstanding  the  requirements of
 subparagraph (vi) of paragraph a of subdivision  two  of  this  section,
 provide  for  the  expenditure of an amount which shall be not less than
 the amount approved by the commissioner in the contract  for  excellence
 for  the  two  thousand  eleven--two  thousand  twelve  school  year and
 provided further that, a school district that submitted a  contract  for
 excellence  for  the  two  thousand twelve--two thousand thirteen school
 year, unless all schools in the  district  are  identified  as  in  good
 standing,  shall  submit  a contract for excellence for the two thousand
 thirteen--two thousand fourteen school year which shall, notwithstanding
 the requirements of subparagraph (vi) of paragraph a of subdivision  two
 of this section, provide for the expenditure of an amount which shall be
 not  less  than  the amount approved by the commissioner in the contract
 for excellence for the two thousand twelve--two thousand thirteen school
 year and provided further that,  a  school  district  that  submitted  a
 contract  for  excellence  for  the  two thousand thirteen--two thousand
 fourteen school year, unless all schools in the district are  identified
 as  in good standing, shall submit a contract for excellence for the two
 thousand  fourteen--two  thousand  fifteen  school  year  which   shall,
 notwithstanding  the requirements of subparagraph (vi) of paragraph a of
 subdivision two of this section,  provide  for  the  expenditure  of  an
 amount  which  shall be not less than the amount approved by the commis-
 sioner in the contract for excellence for the two thousand thirteen--two
 thousand fourteen school year;  and  provided  further  that,  a  school
 district  that  submitted a contract for excellence for the two thousand
 fourteen--two thousand fifteen school year, unless all  schools  in  the
 district are identified as in good standing, shall submit a contract for
 excellence  for  the  two  thousand fifteen--two thousand sixteen school
 year which shall, notwithstanding the requirements of subparagraph  (vi)
 of  paragraph  a  of  subdivision  two  of this section, provide for the
 expenditure of an amount  which  shall  be  not  less  than  the  amount
 approved  by the commissioner in the contract for excellence for the two
 thousand  fourteen--two  thousand  fifteen  school  year;  and  provided
 further  that a school district that submitted a contract for excellence
 for the two thousand fifteen--two thousand sixteen school  year,  unless
 all  schools  in  the district are identified as in good standing, shall
 submit a contract for excellence for the two thousand sixteen--two thou-
 sand seventeen school year which shall, notwithstanding the requirements

 S. 2009--C                         291                        A. 3009--C
 
 of subparagraph (vi) of paragraph a of subdivision two of this  section,
 provide  for  the  expenditure of an amount which shall be not less than
 the amount approved by the commissioner in the contract  for  excellence
 for  the  two  thousand  fifteen--two  thousand sixteen school year; AND
 PROVIDED FURTHER THAT, A SCHOOL DISTRICT THAT SUBMITTED A  CONTRACT  FOR
 EXCELLENCE  FOR  THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL
 YEAR, UNLESS ALL SCHOOLS IN THE  DISTRICT  ARE  IDENTIFIED  AS  IN  GOOD
 STANDING,  SHALL  SUBMIT  A CONTRACT FOR EXCELLENCE FOR THE TWO THOUSAND
 SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR WHICH SHALL,  NOTWITHSTAND-
 ING  THE REQUIREMENTS OF SUBPARAGRAPH (VI) OF PARAGRAPH A OF SUBDIVISION
 TWO OF THIS SECTION, PROVIDE FOR THE  EXPENDITURE  OF  AN  AMOUNT  WHICH
 SHALL  BE  NOT  LESS THAN THE AMOUNT APPROVED BY THE COMMISSIONER IN THE
 CONTRACT FOR EXCELLENCE  FOR  THE  TWO  THOUSAND  SIXTEEN--TWO  THOUSAND
 SEVENTEEN  SCHOOL  YEAR. For purposes of this paragraph, the "gap elimi-
 nation adjustment percentage" shall be calculated  as  the  sum  of  one
 minus  the  quotient  of the sum of the school district's net gap elimi-
 nation adjustment for two thousand  ten--two  thousand  eleven  computed
 pursuant  to chapter fifty-three of the laws of two thousand ten, making
 appropriations for the support of government, plus the school district's
 gap elimination adjustment for two thousand eleven--two thousand  twelve
 as  computed pursuant to chapter fifty-three of the laws of two thousand
 eleven, making appropriations for the support of  the  local  assistance
 budget,  including  support  for  general  support  for  public schools,
 divided by the total aid for adjustment  computed  pursuant  to  chapter
 fifty-three  of  the  laws of two thousand eleven, making appropriations
 for the local assistance budget, including support for  general  support
 for  public  schools.  Provided,  further,  that  such  amount  shall be
 expended to support  and  maintain  allowable  programs  and  activities
 approved  in  the  two thousand nine--two thousand ten school year or to
 support new or expanded allowable programs and activities in the current
 year.
   § 2. The education law is amended by adding a new  section  2590-v  to
 read as follows:
   § 2590-V. NOTICE TO STUDENTS REGARDING CERTAIN TEST SCORES. THE OFFICE
 OF THE CHANCELLOR SHALL INCLUDE A NOTICE IN THE OFFICIAL SCORE REPORT OF
 ALL  STUDENTS  WHO  RECEIVED  A SCORE OF "ADVANCED" ON THE SEVENTH GRADE
 STATE ASSESSMENT IN EITHER ENGLISH LANGUAGE ARTS OR MATHEMATICS, INFORM-
 ING THE STUDENT OF OPPORTUNITIES TO APPLY FOR ADMISSION TO THE  SPECIAL-
 IZED  HIGH  SCHOOLS  AUTHORIZED  IN  PARAGRAPH (B) OF SUBDIVISION ONE OF
 SECTION TWENTY-FIVE HUNDRED NINETY-H OF THIS ARTICLE; PROVIDED THAT  THE
 CHANCELLOR  SHALL ANNUALLY NOTIFY ALL SEVENTH GRADE STUDENTS OF OPPORTU-
 NITIES TO APPLY FOR ADMISSION TO SUCH SCHOOLS.
   § 3. Subparagraph 3 of paragraph b of subdivision 16 of  section  3641
 of  the  education law, as added by section 2 of part C of chapter 56 of
 the laws of 2014, is amended to read as follows:
   (3) The smart schools review board  shall  review  all  smart  schools
 investment  plans for compliance with all eligibility criteria and other
 requirements set forth in the guidelines. The smart schools review board
 may approve or reject such plans, or may return such plans to the school
 district for modifications; PROVIDED THAT NOTWITHSTANDING ANY INCONSIST-
 ENT PROVISION OF LAW, THE SMART SCHOOLS REVIEW BOARD  SHALL  APPROVE  NO
 SUCH PLAN FIRST SUBMITTED TO THE DEPARTMENT ON OR AFTER APRIL FIFTEENTH,
 TWO THOUSAND SEVENTEEN, UNLESS SUCH PLAN CALCULATES THE AMOUNT OF CLASS-
 ROOM  TECHNOLOGY  TO  BE  LOANED TO STUDENTS ATTENDING NONPUBLIC SCHOOLS
 PURSUANT TO SECTION SEVEN HUNDRED FIFTY-FIVE OF THIS CHAPTER IN A MANNER
 THAT INCLUDES THE AMOUNT BUDGETED BY THE SCHOOL  DISTRICT  FOR  SERVERS,

 S. 2009--C                         292                        A. 3009--C
 
 WIRELESS  ACCESS  POINTS  AND  OTHER PORTABLE CONNECTIVITY DEVICES TO BE
 ACQUIRED AS PART OF A SCHOOL CONNECTIVITY PROJECT.   Upon approval,  the
 smart schools project or projects described in the investment plan shall
 be  eligible  for smart schools grants. A smart schools project included
 in a school district's smart schools investment plan shall  not  require
 separate  approval  of  the  commissioner  unless it is part of a school
 construction project required  to  be  submitted  for  approval  of  the
 commissioner  pursuant  to  section  four  hundred eight of this chapter
 and/or subdivision six of section thirty-six hundred two of  this  arti-
 cle.  Any department, agency or public authority shall provide the smart
 schools review board with any information it  requires  to  fulfill  its
 duties pursuant to this subdivision.
   § 4. Subdivision 1 of section 2856 of the education law, as amended by
 chapter  378 of the laws of 2007, paragraph (a) as amended and paragraph
 (d) as added by section 3 of part BB of chapter 56 of the laws of  2014,
 is amended to read as follows:
   1.  (a)  The enrollment of students attending charter schools shall be
 included in the enrollment, attendance, membership and,  if  applicable,
 count  of students with disabilities of the school district in which the
 pupil resides. The charter school shall report  all  such  data  to  the
 school  districts  of residence in a timely manner. Each school district
 shall report such enrollment, attendance  and  count  of  students  with
 disabilities  to  the department. The school district of residence shall
 pay directly to the charter school for  each  student  enrolled  in  the
 charter  school  who  resides  in the school district the charter school
 basic tuition, which shall be:
   (i) for school years prior to the two thousand nine--two thousand  ten
 school  year  [and for school years following the two thousand sixteen--
 two thousand seventeen school year], an  amount  equal  to  one  hundred
 percent  of the amount calculated pursuant to paragraph f of subdivision
 one of section thirty-six hundred two of this  chapter  for  the  school
 district for the year prior to the base year increased by the percentage
 change in the state total approved operating expense calculated pursuant
 to  paragraph  t of subdivision one of section thirty-six hundred two of
 this chapter from two years prior to the base year to the base year;
   (ii) for the two thousand nine--two  thousand  ten  school  year,  the
 charter  school  basic  tuition  shall  be  the  amount  payable by such
 district as charter school basic tuition for the two thousand eight--two
 thousand nine school year;
   (iii) for the two thousand ten--two thousand eleven through two  thou-
 sand  thirteen--two  thousand  fourteen school years, the charter school
 basic tuition shall be the basic tuition computed for the  two  thousand
 ten--two  thousand  eleven  school  year  pursuant  to the provisions of
 subparagraph (i) of this paragraph;
   (iv) for the two thousand fourteen--two thousand fifteen, two thousand
 fifteen--two thousand sixteen and  two  thousand  sixteen--two  thousand
 seventeen  school  years,  the charter school basic tuition shall be the
 sum of the lesser of the charter school basic tuition computed  for  the
 two  thousand  ten--two  thousand  eleven  school  year  pursuant to the
 provisions of subparagraph (i) of this paragraph or the  charter  school
 basic  tuition  computed for the current year pursuant to the provisions
 of subparagraph (i)  of  this  paragraph  plus  the  supplemental  basic
 tuition[.];
   (V) FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,
 THE  CHARTER  SCHOOL  BASIC  TUITION SHALL BE THE SUM OF (A) THE CHARTER

 S. 2009--C                         293                        A. 3009--C
 
 SCHOOL BASIC TUITION FOR THE TWO THOUSAND SIXTEEN--TWO  THOUSAND  SEVEN-
 TEEN SCHOOL YEAR PLUS (B) FIVE HUNDRED DOLLARS;
   (VI) FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR,
 THE  CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
 OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED  FOR  THE  BASE  YEAR
 MULTIPLIED  BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
 THE PERIOD COMMENCING WITH THE YEAR FIVE YEARS PRIOR TO  THE  BASE  YEAR
 AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
 OPERATING  EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
 GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX  HUNDRED  TWO  OF  THIS
 CHAPTER  FOR  EACH  SUCH  YEAR  DIVIDED  BY THE TOTAL APPROVED OPERATING
 EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY PRECEDING  YEAR,  PROVIDED
 THAT  THE HIGHEST AND LOWEST ANNUAL QUOTIENTS SHALL BE EXCLUDED FROM THE
 CALCULATION OF SUCH AVERAGE OR (B) THE QUOTIENT  OF  THE  TOTAL  GENERAL
 FUND  EXPENDITURES  FOR  THE  SCHOOL  DISTRICT CALCULATED PURSUANT TO AN
 ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF  COMPLIANCE  WITH  PARA-
 GRAPH  B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS
 CHAPTER PUBLISHED ANNUALLY ON MAY FIFTEENTH FOR THE YEAR  PRIOR  TO  THE
 BASE  YEAR  DIVIDED  BY  THE  TOTAL  ESTIMATED PUBLIC ENROLLMENT FOR THE
 SCHOOL DISTRICT PURSUANT TO PARAGRAPH N OF SUBDIVISION  ONE  OF  SECTION
 THIRTY-SIX  HUNDRED  TWO  OF THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE
 YEAR.
   (VII) FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR
 THE  CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
 OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED  FOR  THE  BASE  YEAR
 MULTIPLIED  BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
 THE PERIOD COMMENCING WITH THE YEAR THREE YEARS PRIOR TO THE  BASE  YEAR
 AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
 OPERATING  EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
 GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX  HUNDRED  TWO  OF  THIS
 CHAPTER  FOR  EACH  SUCH  YEAR  DIVIDED  BY THE TOTAL APPROVED OPERATING
 EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY  PRECEDING  YEAR  PROVIDED
 THAT  THE  HIGHEST  ANNUAL QUOTIENT CALCULATED PURSUANT TO THIS SUBPARA-
 GRAPH SHALL BE REPLACED BY THE AVERAGE QUOTIENT CALCULATED  PURSUANT  TO
 SUBPARAGRAPH  (VI)  OF  THIS  PARAGRAPH OR (B) THE QUOTIENT OF THE TOTAL
 GENERAL FUND EXPENDITURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO
 AN ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARA-
 GRAPH B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF  THIS
 CHAPTER  PUBLISHED  ANNUALLY  ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE
 BASE YEAR DIVIDED BY THE  TOTAL  ESTIMATED  PUBLIC  ENROLLMENT  FOR  THE
 SCHOOL  DISTRICT  PURSUANT  TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION
 THIRTY-SIX HUNDRED TWO OF THIS CHAPTER FOR THE YEAR PRIOR  TO  THE  BASE
 YEAR.
   (VIII)  FOR  THE  TWO  THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL
 YEAR AND THEREAFTER, THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESS-
 ER OF (A) THE PRODUCT OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED
 FOR THE BASE YEAR MULTIPLIED BY (II) THE AVERAGE OF  THE  QUOTIENTS  FOR
 EACH  SCHOOL  YEAR  IN  THE  PERIOD COMMENCING WITH THE YEAR THREE YEARS
 PRIOR TO THE BASE YEAR AND FINISHING WITH THE YEAR  PRIOR  TO  THE  BASE
 YEAR  OF  THE  TOTAL APPROVED OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT
 CALCULATED PURSUANT TO PARAGRAPH T OF SUBDIVISION ONE OF  SECTION  THIR-
 TY-SIX  HUNDRED  TWO  OF  THIS CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE
 TOTAL APPROVED OPERATING EXPENSE FOR SUCH DISTRICT FOR  THE  IMMEDIATELY
 PRECEDING  YEAR  OR  (B) THE QUOTIENT OF THE TOTAL GENERAL FUND EXPENDI-
 TURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO AN ELECTRONIC  DATA
 FILE  CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARAGRAPH B OF SUBDIVI-

 S. 2009--C                         294                        A. 3009--C
 
 SION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER  PUBLISHED
 ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE BASE YEAR DIVIDED BY
 THE  TOTAL  ESTIMATED PUBLIC ENROLLMENT FOR THE SCHOOL DISTRICT PURSUANT
 TO  PARAGRAPH  N OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF
 THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE YEAR.
   For the purposes of this subdivision, the "supplemental basic tuition"
 shall be (A) for a school district for which the  charter  school  basic
 tuition  computed  for  the current year is greater than or equal to the
 charter school basic tuition for  the  two  thousand  ten--two  thousand
 eleven  school  year  pursuant  to the provisions of subparagraph (i) of
 this paragraph, (1) for the two thousand fourteen--two thousand  fifteen
 school  year two hundred and fifty dollars, and (2) for the two thousand
 fifteen--two thousand  sixteen  school  year  three  hundred  and  fifty
 dollars,  and  (3)  for the two thousand sixteen--two thousand seventeen
 school year five hundred dollars, and (4) FOR THE  TWO  THOUSAND  SEVEN-
 TEEN--TWO  THOUSAND  EIGHTEEN SCHOOL YEAR AND THEREAFTER, THE SUM OF (I)
 THE SUPPLEMENTAL BASIC TUITION CALCULATED FOR THE TWO THOUSAND  SIXTEEN-
 -TWO  THOUSAND SEVENTEEN SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS, AND
 (B) FOR SCHOOL YEARS PRIOR TO THE TWO THOUSAND  SEVENTEEN--TWO  THOUSAND
 EIGHTEEN SCHOOL YEAR, for a school district for which the charter school
 basic  tuition for the two thousand ten--two thousand eleven school year
 is greater than the charter school basic tuition for  the  current  year
 pursuant  to  the  provisions of subparagraph (i) of this paragraph, the
 positive difference of the charter school  basic  tuition  for  the  two
 thousand  ten--two  thousand eleven school year minus the charter school
 basic tuition for the current year pursuant to the provisions of subpar-
 agraph (i) of this paragraph AND (C) FOR SCHOOL YEARS FOLLOWING THE  TWO
 THOUSAND  SIXTEEN--TWO  THOUSAND  SEVENTEEN  SCHOOL  YEARS, FOR A SCHOOL
 DISTRICT FOR WHICH THE CHARTER SCHOOL BASIC TUITION FOR THE TWO THOUSAND
 TEN--TWO THOUSAND ELEVEN SCHOOL YEAR IS GREATER THAN THE CHARTER  SCHOOL
 BASIC TUITION FOR THE CURRENT YEAR PURSUANT TO THE PROVISIONS OF SUBPAR-
 AGRAPH  (I)  OF  THIS  PARAGRAPH,  THE SUM OF (I) THE SUPPLEMENTAL BASIC
 TUITION CALCULATED FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND  SEVENTEEN
 SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS.
   (b)  The school district shall also pay directly to the charter school
 any federal or state aid attributable to a  student  with  a  disability
 attending charter school in proportion to the level of services for such
 student  with  a disability that the charter school provides directly or
 indirectly. Notwithstanding anything in this section  to  the  contrary,
 amounts  payable  pursuant to this subdivision from state or local funds
 may be reduced pursuant to an agreement between the school and the char-
 ter entity set forth in the charter.  Payments  made  pursuant  to  this
 subdivision  shall  be  made by the school district in six substantially
 equal installments each year beginning on the first business day of July
 and every two months thereafter. Amounts payable under this  subdivision
 shall  be  determined  by the commissioner. Amounts payable to a charter
 school in its first year of operation shall be based on the  projections
 of initial-year enrollment set forth in the charter until actual enroll-
 ment data is reported to the school district by the charter school. Such
 projections  shall  be  reconciled  with the actual enrollment as actual
 enrollment data is so reported and at the end of the school's first year
 of operation and each subsequent year based on a final report of  actual
 enrollment  by the charter school, and any necessary adjustments result-
 ing from such final report shall be made to payments during the school's
 following year of operation.

 S. 2009--C                         295                        A. 3009--C
 
   (c) Notwithstanding any other provision of  this  subdivision  to  the
 contrary,  payment  of  the federal aid attributable to a student with a
 disability attending a charter school shall be made in  accordance  with
 the  requirements of section 8065-a of title twenty of the United States
 code  and sections 76.785-76.799 and 300.209 of title thirty-four of the
 code of federal regulations.
   (d) School districts shall be eligible  for  an  annual  apportionment
 equal  to the amount of the supplemental basic tuition [paid to] FOR the
 charter school in the base year for the expenses  incurred  in  the  two
 thousand fourteen--two thousand fifteen, two thousand fifteen--two thou-
 sand  sixteen, [and] two thousand sixteen--two thousand seventeen school
 years AND THEREAFTER.
   § 4-a. Subdivision 1 of section 2856 of the education law, as  amended
 by section 22 of part A of chapter 58 of the laws of 2011, paragraph (a)
 as amended and paragraph (c) as added by section 4 of part BB of chapter
 56 of the laws of 2014, is amended to read as follows:
   1.  (a)  The enrollment of students attending charter schools shall be
 included in the enrollment, attendance  and,  if  applicable,  count  of
 students  with  disabilities  of  the school district in which the pupil
 resides. The charter school shall report all such  data  to  the  school
 districts  of  residence  in a timely manner. Each school district shall
 report such enrollment, attendance and count of students with  disabili-
 ties  to  the  department.  The  school  district of residence shall pay
 directly to the charter school for each student enrolled in the  charter
 school  who  resides  in  the  school  district the charter school basic
 tuition which shall be:
   (i) for school years prior to the two thousand nine--two thousand  ten
 school  year  [and for school years following the two thousand sixteen--
 two thousand seventeen school year], an  amount  equal  to  one  hundred
 percent  of the amount calculated pursuant to paragraph f of subdivision
 one of section thirty-six hundred two of this  chapter  for  the  school
 district for the year prior to the base year increased by the percentage
 change in the state total approved operating expense calculated pursuant
 to  paragraph  t of subdivision one of section thirty-six hundred two of
 this chapter from two years prior to the base year to the base year;
   (ii) for the two thousand nine--two  thousand  ten  school  year,  the
 charter  school  basic  tuition  shall  be  the  amount  payable by such
 district as charter school basic tuition for the two thousand eight--two
 thousand nine school year;
   (iii) for the two thousand ten--two thousand eleven through two  thou-
 sand  thirteen--two  thousand  fourteen school years, the charter school
 basic tuition shall be the basic tuition computed for the  two  thousand
 ten--two  thousand  eleven  school  year  pursuant  to the provisions of
 subparagraph (i) of this paragraph;
   (iv) for the two thousand fourteen--two thousand fifteen, two thousand
 fifteen--two thousand sixteen and  two  thousand  sixteen--two  thousand
 seventeen  school  years,  the charter school basic tuition shall be the
 sum of the lesser of the charter school basic tuition computed  for  the
 two  thousand  ten--two  thousand  eleven  school  year  pursuant to the
 provisions of subparagraph (i) of this paragraph or the  charter  school
 basic  tuition  computed for the current year pursuant to the provisions
 of subparagraph (i)  of  this  paragraph  plus  the  supplemental  basic
 tuition[.];
   (V) FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,
 THE  CHARTER  SCHOOL  BASIC  TUITION SHALL BE THE SUM OF (A) THE CHARTER

 S. 2009--C                         296                        A. 3009--C
 
 SCHOOL BASIC TUITION FOR THE TWO THOUSAND SIXTEEN--TWO  THOUSAND  SEVEN-
 TEEN SCHOOL YEAR PLUS (B) FIVE HUNDRED DOLLARS;
   (VI) FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR,
 THE  CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
 OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED  FOR  THE  BASE  YEAR
 MULTIPLIED  BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
 THE PERIOD COMMENCING WITH THE YEAR FIVE YEARS PRIOR TO  THE  BASE  YEAR
 AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
 OPERATING  EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
 GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX  HUNDRED  TWO  OF  THIS
 CHAPTER  FOR  EACH  SUCH  YEAR  DIVIDED  BY THE TOTAL APPROVED OPERATING
 EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY PRECEDING  YEAR,  PROVIDED
 THAT  THE HIGHEST AND LOWEST ANNUAL QUOTIENTS SHALL BE EXCLUDED FROM THE
 CALCULATION OF SUCH AVERAGE OR (B) THE QUOTIENT  OF  THE  TOTAL  GENERAL
 FUND  EXPENDITURES  FOR  THE  SCHOOL  DISTRICT CALCULATED PURSUANT TO AN
 ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF  COMPLIANCE  WITH  PARA-
 GRAPH  B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS
 CHAPTER PUBLISHED ANNUALLY ON MAY FIFTEENTH FOR THE YEAR  PRIOR  TO  THE
 BASE  YEAR  DIVIDED  BY  THE  TOTAL  ESTIMATED PUBLIC ENROLLMENT FOR THE
 SCHOOL DISTRICT PURSUANT TO PARAGRAPH N OF SUBDIVISION  ONE  OF  SECTION
 THIRTY-SIX  HUNDRED  TWO  OF THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE
 YEAR.
   (VII) FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY  SCHOOL  YEAR
 THE  CHARTER SCHOOL BASIC TUITION SHALL BE THE LESSER OF (A) THE PRODUCT
 OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED  FOR  THE  BASE  YEAR
 MULTIPLIED  BY (II) THE AVERAGE OF THE QUOTIENTS FOR EACH SCHOOL YEAR IN
 THE PERIOD COMMENCING WITH THE YEAR THREE YEARS PRIOR TO THE  BASE  YEAR
 AND FINISHING WITH THE YEAR PRIOR TO THE BASE YEAR OF THE TOTAL APPROVED
 OPERATING  EXPENSE FOR SUCH SCHOOL DISTRICT CALCULATED PURSUANT TO PARA-
 GRAPH T OF SUBDIVISION ONE OF SECTION THIRTY-SIX  HUNDRED  TWO  OF  THIS
 CHAPTER  FOR  EACH  SUCH  YEAR  DIVIDED  BY THE TOTAL APPROVED OPERATING
 EXPENSE FOR SUCH DISTRICT FOR THE IMMEDIATELY  PRECEDING  YEAR  PROVIDED
 THAT  THE  HIGHEST  ANNUAL QUOTIENT CALCULATED PURSUANT TO THIS SUBPARA-
 GRAPH SHALL BE REPLACED BY THE AVERAGE QUOTIENT CALCULATED  PURSUANT  TO
 SUBPARAGRAPH  (VI)  OF  THIS  PARAGRAPH OR (B) THE QUOTIENT OF THE TOTAL
 GENERAL FUND EXPENDITURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO
 AN ELECTRONIC DATA FILE CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARA-
 GRAPH B OF SUBDIVISION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF  THIS
 CHAPTER  PUBLISHED  ANNUALLY  ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE
 BASE YEAR DIVIDED BY THE  TOTAL  ESTIMATED  PUBLIC  ENROLLMENT  FOR  THE
 SCHOOL  DISTRICT  PURSUANT  TO PARAGRAPH N OF SUBDIVISION ONE OF SECTION
 THIRTY-SIX HUNDRED TWO OF THIS CHAPTER FOR THE YEAR PRIOR  TO  THE  BASE
 YEAR.
   (VIII)  FOR  THE  TWO  THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL
 YEAR AND THEREAFTER, THE CHARTER SCHOOL BASIC TUITION SHALL BE THE LESS-
 ER OF (A) THE PRODUCT OF (I) THE CHARTER SCHOOL BASIC TUITION CALCULATED
 FOR THE BASE YEAR MULTIPLIED BY (II) THE AVERAGE OF  THE  QUOTIENTS  FOR
 EACH  SCHOOL  YEAR  IN  THE  PERIOD COMMENCING WITH THE YEAR THREE YEARS
 PRIOR TO THE BASE YEAR AND FINISHING WITH THE YEAR  PRIOR  TO  THE  BASE
 YEAR  OF  THE  TOTAL APPROVED OPERATING EXPENSE FOR SUCH SCHOOL DISTRICT
 CALCULATED PURSUANT TO PARAGRAPH T OF SUBDIVISION ONE OF  SECTION  THIR-
 TY-SIX  HUNDRED  TWO  OF  THIS CHAPTER FOR EACH SUCH YEAR DIVIDED BY THE
 TOTAL APPROVED OPERATING EXPENSE FOR SUCH DISTRICT FOR  THE  IMMEDIATELY
 PRECEDING  YEAR  OR  (B) THE QUOTIENT OF THE TOTAL GENERAL FUND EXPENDI-
 TURES FOR THE SCHOOL DISTRICT CALCULATED PURSUANT TO AN ELECTRONIC  DATA
 FILE  CREATED FOR THE PURPOSE OF COMPLIANCE WITH PARAGRAPH B OF SUBDIVI-

 S. 2009--C                         297                        A. 3009--C
 
 SION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS CHAPTER  PUBLISHED
 ANNUALLY ON MAY FIFTEENTH FOR THE YEAR PRIOR TO THE BASE YEAR DIVIDED BY
 THE  TOTAL  ESTIMATED PUBLIC ENROLLMENT FOR THE SCHOOL DISTRICT PURSUANT
 TO  PARAGRAPH  N OF SUBDIVISION ONE OF SECTION THIRTY-SIX HUNDRED TWO OF
 THIS CHAPTER FOR THE YEAR PRIOR TO THE BASE YEAR.
   For the purposes of this subdivision, the "supplemental basic tuition"
 shall be (A) for a school district for which the  charter  school  basic
 tuition  computed  for  the current year is greater than or equal to the
 charter school basic tuition for  the  two  thousand  ten--two  thousand
 eleven  school  year  pursuant  to the provisions of subparagraph (i) of
 this paragraph, (1) for the two thousand fourteen--two thousand  fifteen
 school  year two hundred and fifty dollars, and (2) for the two thousand
 fifteen--two thousand  sixteen  school  year  three  hundred  and  fifty
 dollars,  and  (3)  for the two thousand sixteen--two thousand seventeen
 school year five hundred dollars, and (4) FOR THE  TWO  THOUSAND  SEVEN-
 TEEN--TWO  THOUSAND  EIGHTEEN SCHOOL YEAR AND THEREAFTER, THE SUM OF (I)
 THE SUPPLEMENTAL BASIC TUITION CALCULATED FOR THE TWO THOUSAND  SIXTEEN-
 -TWO  THOUSAND SEVENTEEN SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS, AND
 (B) FOR SCHOOL YEARS PRIOR TO THE TWO THOUSAND  SEVENTEEN--TWO  THOUSAND
 EIGHTEEN SCHOOL YEAR, for a school district for which the charter school
 basic  tuition for the two thousand ten--two thousand eleven school year
 is greater than the charter school basic tuition for  the  current  year
 pursuant  to  the  provisions of subparagraph (i) of this paragraph, the
 positive difference of the charter school  basic  tuition  for  the  two
 thousand  ten--two  thousand eleven school year minus the charter school
 basic tuition for the current year pursuant to the provisions of subpar-
 agraph (i) of this paragraph AND (C) FOR SCHOOL YEARS FOLLOWING THE  TWO
 THOUSAND  SIXTEEN--TWO  THOUSAND  SEVENTEEN  SCHOOL  YEARS, FOR A SCHOOL
 DISTRICT FOR WHICH THE CHARTER SCHOOL BASIC TUITION FOR THE TWO THOUSAND
 TEN--TWO THOUSAND ELEVEN SCHOOL YEAR IS GREATER THAN THE CHARTER  SCHOOL
 BASIC TUITION FOR THE CURRENT YEAR PURSUANT TO THE PROVISIONS OF SUBPAR-
 AGRAPH  (I)  OF  THIS  PARAGRAPH,  THE SUM OF (I) THE SUPPLEMENTAL BASIC
 TUITION CALCULATED FOR THE TWO THOUSAND SIXTEEN--TWO THOUSAND  SEVENTEEN
 SCHOOL YEAR PLUS (II) FIVE HUNDRED DOLLARS.
   (b)  The school district shall also pay directly to the charter school
 any federal or state aid attributable to a  student  with  a  disability
 attending charter school in proportion to the level of services for such
 student  with  a disability that the charter school provides directly or
 indirectly. Notwithstanding anything in this section  to  the  contrary,
 amounts  payable pursuant to this subdivision may be reduced pursuant to
 an agreement between the school and the charter entity set forth in  the
 charter. Payments made pursuant to this subdivision shall be made by the
 school district in six substantially equal installments each year begin-
 ning  on the first business day of July and every two months thereafter.
 Amounts payable under  this  subdivision  shall  be  determined  by  the
 commissioner.  Amounts  payable to a charter school in its first year of
 operation shall be based on the projections of  initial-year  enrollment
 set  forth in the charter. Such projections shall be reconciled with the
 actual enrollment at the end of the school's first  year  of  operation,
 and  any  necessary  adjustments  shall  be  made to payments during the
 school's second year of operation.
   (c) School districts shall be eligible  for  an  annual  apportionment
 equal  to the amount of the supplemental basic tuition [paid to] FOR the
 charter school in the base year for the expenses  incurred  in  the  two
 thousand fourteen--two thousand fifteen, two thousand fifteen--two thou-

 S. 2009--C                         298                        A. 3009--C
 
 sand  sixteen, [and] two thousand sixteen--two thousand seventeen school
 years AND THEREAFTER.
   § 5. Clause (B) of subparagraph 5 of paragraph (e) of subdivision 3 of
 section  2853  of the education law, as added by section 11 of part A of
 chapter 54 of the laws of 2016, is amended to read as follows:
   (B) [twenty] THIRTY percent of the product  of  the  charter  school's
 basic  tuition  for  the  current  school year and (i) for a new charter
 school that first commences instruction on  or  after  July  first,  two
 thousand fourteen, the charter school's current year enrollment; or (ii)
 for  a  charter  school  which expands its grade level, pursuant to this
 article, the positive difference of the charter school's  enrollment  in
 the  current  school  year  minus the charter school's enrollment in the
 school year prior to the first year of the expansion.
   § 6. Intentionally omitted.
   § 7. Paragraph a of subdivision 33 of section  305  of  the  education
 law,  as  amended by chapter 621 of the laws of 2003, is amended to read
 as follows:
   a. The commissioner shall establish procedures  for  the  approval  of
 providers  of  supplemental  educational services in accordance with the
 provisions of subsection (e) of section one thousand one hundred sixteen
 of the No Child Left Behind Act of 2001 and shall adopt  regulations  to
 implement  such procedures. Notwithstanding any other provision of state
 or local law, rule or regulation to the contrary, any local  educational
 agency that receives federal funds pursuant to title I of the Elementary
 and  Secondary Education Act of nineteen hundred sixty-five, as amended,
 shall be authorized to contract with the approved provider selected by a
 student's parent, as such term is  defined  in  subsection  [thirty-one]
 THIRTY-EIGHT of section [nine] EIGHT thousand one hundred one of the [No
 Child Left Behind Act of 2001] ELEMENTARY AND SECONDARY EDUCATION ACT OF
 NINETEEN  HUNDRED  SIXTY-FIVE,  AS AMENDED, for the provision of supple-
 mental educational services to the extent required  under  such  section
 one  thousand  one  hundred sixteen.   Eligible approved providers shall
 include, but not be limited to, public schools, BOCES,  institutions  of
 higher education, and community based organizations.
   § 8. Subdivision 7 of section 2802 of the education law, as amended by
 chapter 425 of the laws of 2002, is amended to read as follows:
   7.  Notwithstanding any other provision of state or local law, rule or
 regulation to the contrary,  any  student  who  attends  a  persistently
 dangerous  public  elementary  or secondary school, as determined by the
 commissioner pursuant to paragraph a of this subdivision, or  who  is  a
 victim of a violent criminal offense, as defined pursuant to paragraph b
 of this subdivision, that occurred on the grounds of a public elementary
 or secondary school that the student attends, shall be allowed to attend
 a  safe  public school within the local educational agency to the extent
 required by section [ninety-five] EIGHTY-FIVE hundred thirty-two of  the
 [No  Child  Left  Behind Act of 2001] ELEMENTARY AND SECONDARY EDUCATION
 ACT OF NINETEEN HUNDRED SIXTY-FIVE, AS AMENDED.
   a. The commissioner shall annually determine which  public  elementary
 and  secondary  schools  are  persistently  dangerous in accordance with
 regulations of the commissioner developed in consultation with a  repre-
 sentative sample of local educational agencies. Such determination shall
 be  based on data submitted through the uniform violent incident report-
 ing system over a period prescribed in the regulations, which shall  not
 be less than two years.
   b.  Each  local  educational  agency required to provide unsafe school
 choice shall establish procedures for determinations by the  superinten-

 S. 2009--C                         299                        A. 3009--C
 
 dent  of  schools  or other chief school officer of whether a student is
 the victim of a violent criminal offense that occurred on school grounds
 of the school that the student attends. Such superintendent  of  schools
 or  other  chief school officer shall, prior to making any such determi-
 nation, consult with  any  law  enforcement  agency  investigating  such
 alleged  violent  criminal  offense  and consider any reports or records
 provided by such agency. The trustees or board  of  education  or  other
 governing board of a local educational agency may provide, by local rule
 or  by-law,  for  appeal  of  the determination of the superintendent of
 schools to such governing board. Notwithstanding any other provision  of
 law  to  the  contrary,  the  determination of such chief school officer
 pursuant to this paragraph shall not have collateral estoppel effect  in
 any  student  disciplinary proceeding brought against the alleged victim
 or perpetrator of such violent criminal offense. For  purposes  of  this
 subdivision, "violent criminal offense" shall mean a crime that involved
 infliction  of  serious  physical  injury upon another as defined in the
 penal law, a sex offense that involved forcible compulsion or any  other
 offense defined in the penal law that involved the use or threatened use
 of a deadly weapon.
   c.  Each  local  educational agency, as defined in subsection [twenty-
 six] THIRTY of section [ninety-one] EIGHTY-ONE hundred one  of  the  [No
 Child Left Behind Act of 2001] ELEMENTARY AND SECONDARY EDUCATION ACT OF
 NINETEEN  HUNDRED  SIXTY-FIVE,  AS  AMENDED, that is required to provide
 school choice pursuant  to  section  [ninety-five]  EIGHTY-FIVE  hundred
 thirty-two  of  the  [No  Child  Left Behind Act of 2001] ELEMENTARY AND
 SECONDARY EDUCATION ACT OF  NINETEEN  HUNDRED  SIXTY-FIVE,  AS  AMENDED,
 shall establish procedures for notification of parents of, or persons in
 parental  relation  to, students attending schools that have been desig-
 nated as persistently dangerous and parents of, or persons  in  parental
 relation  to,  students  who are victims of violent criminal offenses of
 their right to transfer to a safe public school within the local  educa-
 tional  agency  and procedures for such transfer, except that nothing in
 this subdivision shall be construed to require such  notification  where
 there are no other public schools within the local educational agency at
 the same grade level or such transfer to a safe public school within the
 local  educational  agency is otherwise impossible or to require a local
 educational agency that has only one  public  school  within  the  local
 educational  agency  or  only  one  public school at each grade level to
 develop such procedures. The commissioner shall be authorized  to  adopt
 any  regulations deemed necessary to assure that local educational agen-
 cies implement the provisions of this subdivision.
   § 9. Subdivision 7 of section 3214 of the education law, as  added  by
 chapter 101 of the laws of 2003, is amended to read as follows:
   7.   Transfer  of  disciplinary  records.  Notwithstanding  any  other
 provision of law to the contrary, each local educational agency, as such
 term is defined in subsection [twenty-six] THIRTY  of  section  [ninety-
 one]  EIGHTY-ONE  hundred  one of the Elementary and Secondary Education
 Act of 1965, as amended, shall establish procedures in  accordance  with
 section  [forty-one hundred fifty-five] EIGHTY-FIVE HUNDRED THIRTY-SEVEN
 of the Elementary and Secondary Education Act of 1965, as  amended,  and
 the Family Educational Rights and Privacy Act of 1974, to facilitate the
 transfer of disciplinary records relating to the suspension or expulsion
 of  a  student to any public or nonpublic elementary or secondary school
 in which such student enrolls or seeks,  intends  or  is  instructed  to
 enroll, on a full-time or part-time basis.

 S. 2009--C                         300                        A. 3009--C
 
   §  10.  Certain  apportionments  payable to the Haverstraw-Stony Point
 central school district shall be paid  on  an  accelerated  schedule  as
 follows:
   a. (1) Notwithstanding any other provisions of law, for aid payable in
 the  school  years  2017-2018  through 2046-2047 upon application to the
 commissioner of education submitted not sooner than the second Monday in
 June of the school year in which such aid is payable and not later  than
 the  Friday  following the third Monday in June of such school year, the
 Haverstraw-Stony Point central school  district  shall  be  eligible  to
 receive  an apportionment pursuant to this act in an amount equal to the
 product of up to $2,000,000 and the quotient of the positive  difference
 of  thirty  minus the number of school years elapsed since the 2017-2018
 school year divided by thirty.
   (2) Funds apportioned pursuant to this subdivision shall be  used  for
 services  and  expenses  of  the  Haverstraw-Stony  Point central school
 district and shall be applied to support its  educational  programs  and
 any liability incurred by such school district in carrying out its func-
 tions and responsibilities under the education law.
   b.  The  claim for an apportionment to be paid to the Haverstraw-Stony
 Point central school district pursuant to subdivision a of this  section
 shall be submitted to the commissioner of education on a form prescribed
 for  such  purpose,  and  shall  be  payable  upon determination by such
 commissioner that the form has been submitted as  prescribed.  For  each
 school  year  in  which application is made pursuant to subdivision a of
 this section, such approved amount shall be payable on  or  before  June
 thirtieth  of  such  school year upon the audit and warrant of the state
 comptroller on vouchers certified or approved  by  the  commissioner  of
 education  in  the  manner  prescribed  by  law from moneys in the state
 lottery fund appropriated for general support of public schools and from
 the general fund to the extent that the amount paid to  the  Haverstraw-
 Stony  Point  central  school  district pursuant to this subdivision and
 subdivision a of this section exceeds the amount of the  lottery  appor-
 tionment, if any, due such school district pursuant to subparagraph 2 of
 paragraph  a  of subdivision 1 of section 3609-a of the education law on
 or before the last business day in September of such school year.
   c. Notwithstanding the provisions of section 3609-a of  the  education
 law,  an  amount  equal to the amount paid to the Haverstraw-Stony Point
 central school district during the base year pursuant to subdivisions  a
 and  b  of this section shall first be deducted from payments due during
 the current school year pursuant to subparagraphs 1, 2, 3, 4  and  5  of
 paragraph  a  of subdivision 1 of section 3609-a of the education law in
 the following order:  the  lottery  apportionment  payable  pursuant  to
 subparagraph  2  of  such  paragraph followed by the fixed fall payments
 payable pursuant to subparagraph 4 of such paragraph, and any  remainder
 to  be  deducted  from  the  individualized payments due to the district
 pursuant to paragraph b of such subdivision shall be deducted on a chro-
 nological basis starting with the earliest payment due the district.
   d. Notwithstanding any other provisions of law, the  sum  of  payments
 made  to  the  Haverstraw-Stony Point central school district during the
 base year pursuant to subdivisions a and b of this section plus payments
 made to such school district during the current year pursuant to section
 3609-a of the education law shall be deemed to truly represent all  aids
 paid  to such school district during the current school year pursuant to
 such section 3609-a for the purposes of  computing  any  adjustments  to
 such aids that may occur in a subsequent school year.

 S. 2009--C                         301                        A. 3009--C

   §  10-a.  Review  of  Haverstraw-Stony  Point  central school district
 financial condition. The state comptroller shall conduct a comprehensive
 review of the financial condition of the Haverstraw-Stony Point  central
 school  district  and  shall  report  in  writing on the results of such
 review  on or before January 1, 2018, to the director of the budget, the
 commissioner of education, and chairs of the senate finance and assembly
 ways and means committees.  Such review shall include but not be limited
 to analysis of the school district's budgets,  operating  results,  fund
 balances  and reserves over the five most recent completed school years,
 as well as the district's budget projections for the current school year
 and the subsequent three  year  school  years,  and  shall  compare  the
 district's financial condition to that of other districts in the region.
   §  10-b.  Special  financing  authority for the Haverstraw-Stony Point
 central school district. a. Notwithstanding the provisions of any law to
 the contrary, the dormitory authority is authorized, upon application by
 the Haverstraw-Stony Point central school district, to issue  bonds  and
 notes  in one or more series, with terms not exceeding thirty years, for
 purposes of refunding or refinancing debt issued by the school  district
 related  to  the repayment of a tax certiorari settlement agreement, the
 total costs of which exceed the total annual school budget at  the  time
 the  school  district  applies  for refinancing or refunding through the
 authority. The aggregate principal amount of such bonds and notes  shall
 not  exceed  the  total cost of refunding such debt as determined by the
 authority and shall not be a debt of the state, and the state shall  not
 be liable thereon.
   b.  The  total  amount  of the indebtedness which the Haverstraw-Stony
 Point central school district  shall  refinance  through  the  dormitory
 authority  shall  be  deemed  to be indebtedness of the school district.
 Such indebtedness shall be subject to applicable sections of  the  local
 finance law, state finance law, and the constitution.
   c. Notwithstanding the provisions of any general or special law to the
 contrary,  a period of probable usefulness of not to exceed thirty years
 shall apply to any obligations of  the  Haverstraw-Stony  Point  central
 school  district  either  issued by the school district on its own or to
 repay the dormitory authority or to any general obligation bonds  issued
 by  the school district to secure bonds issued by the dormitory authori-
 ty.
   d. Notwithstanding the limitations or requirements of subdivision  1-a
 of section 3651 of the education law, the Haverstraw-Stony Point central
 school  district  may,  without  approval by the qualified voters of the
 district, use monies in any reserve fund established  by  such  district
 pursuant  to  such  subdivision of such section, to pay the principal of
 and interest on any bonds issued  by  such  district  or  the  dormitory
 authority for the object or purpose described in this section.
   §  11.  Notwithstanding  any  provision  of  law  to the contrary, the
 commissioner of education may provide for the recovery of  funds  for  a
 penalty arising from a late final cost report pursuant to this section.
   a.  Definition.  For the purposes of this section, "notification year"
 shall mean the school year in which the school district was first  noti-
 fied  by  the  commissioner of education of the calculation of a penalty
 arising from a late final cost report.
   b. Penalty eligibility. Only aid penalties  arising  from  late  final
 cost  reports  (1)  (i) for school construction projects approved by the
 commissioner of education prior to July 1, 2011 where such  penalty  has
 not yet been recovered by the commissioner of education or (ii) that are
 already  included  within a multi-year recovery pursuant to a chapter of

 S. 2009--C                         302                        A. 3009--C
 
 law of the year 2013 or thereafter and  (2)  where  such  total  penalty
 exceeds six one-hundredths (0.06) of the school district's total general
 fund  expenditures  for the base year of the notification year, shall be
 eligible for the provisions of this section.
   c.  Recovery opt-in for certain districts. Any school district with an
 eligible penalty that is already included within a  multi-year  recovery
 of  aid pursuant to a chapter of law of 2013 or thereafter may choose to
 opt-in to the provisions of this section, provided that only the portion
 of the total penalty that has not yet been recovered by the commissioner
 of education shall be eligible for the provisions of this section.
   d. Documentation. The commissioner of education  shall  determine  the
 documentation   required   from  a  school  district  to  implement  the
 provisions of this section, and where documentation is required  from  a
 school district to supplement the documentation already on file with the
 commissioner,  the  commissioner  shall  determine  the timeframe within
 which such documentation must be submitted.
   e. Aid penalty. For any district with eligible  projects  pursuant  to
 the  provisions  of  this  section,  the commissioner of education shall
 compute a total penalty and shall develop a schedule of no more than ten
 years over which period such penalty shall be recovered, provided that:
   (1) such scheduled penalties shall be deducted from the  payments  due
 to  such  school  district and payable in the month of June beginning in
 the school year after the year in which this section shall have become a
 law or the school year succeeding the notification  year,  whichever  is
 later;
   (2) the amount recovered in the first year of the schedule shall equal
 the sum of (A) two one-hundredths (0.02) of such district's total gener-
 al fund expenditures for the year prior to the first year of such recov-
 ery,  plus (B) the amount that is recognized as a liability due to other
 governments by the district for the year prior to the first year of such
 recovery, plus (C) the positive  remainder  of  the  district's  surplus
 funds,  as  defined in section 1318 of the real property tax law, at the
 close of the year prior to the first year  of  such  recovery  less  the
 product  of  the district's total general fund expenditures for the year
 prior to the first year of such recovery  multiplied  by  four  one-hun-
 dredths  (0.04),  provided  that the amount recovered in such first year
 shall not exceed the portion of the total penalty that has not yet  been
 recovered;
   (3) the amount recovered in each subsequent year shall be recovered by
 deducting  such  excess  payments  from  the payments due to such school
 district and payable in the month of June of subsequent years and  shall
 equal  two  one-hundredths  (0.02) of such district's total general fund
 expenditures for the year prior to the  first  year  of  such  recovery,
 provided  that  the  amount recovered in each such subsequent year shall
 not exceed the portion of the total penalty that has not yet been recov-
 ered;
   (4) there shall be no interest penalty assessed against such  district
 or collected by the state.
   f.  Remaining  penalty.  If after the end of the ten-year period there
 remains any amount of penalty still to be recovered, the commissioner of
 education shall forgo the recovery of such additional penalty  and  deem
 the school district's obligation complete.
   §  12.  Section  4  of  chapter  425 of the laws of 2002, amending the
 education law relating to  the  provision  of  supplemental  educational
 services,  attendance  at  a  safe  public  school and the suspension of
 pupils who bring a firearm to or possess  a  firearm  at  a  school,  as

 S. 2009--C                         303                        A. 3009--C
 
 amended  by  section  35 of part A of chapter 54 of the laws of 2016, is
 amended to read as follows:
   §  4.  This act shall take effect July 1, 2002 and shall expire and be
 deemed repealed June 30, [2017] 2018.
   § 13. Section 5 of chapter 101 of  the  laws  of  2003,  amending  the
 education law relating to the implementation of the No Child Left Behind
 Act  of  2001,  as  amended by section 36 of part A of chapter 54 of the
 laws of 2016, is amended to read as follows:
   § 5. This act shall take effect immediately;  provided  that  sections
 one,  two  and  three of this act shall expire and be deemed repealed on
 June 30, [2017] 2018.
   § 14. Paragraph o of subdivision 1 of section 3602  of  the  education
 law,  as  amended  by  section 15 of part A of chapter 54 of the laws of
 2016, is amended to read as follows:
   o. "English language learner count" shall mean the  number  of  pupils
 served  in  the  base  year in programs for pupils [with limited English
 proficiency] WHO ARE ENGLISH LANGUAGE LEARNERS approved by  the  commis-
 sioner pursuant to the provisions of this chapter and in accordance with
 regulations adopted for such purpose.
   §  15.  Paragraph b of subdivision 15 of section 2556 of the education
 law, as added by section 20 of part A of chapter 57 of the laws of 2013,
 is amended to read as follows:
   b. On or before December thirty-first, two thousand [fourteen]  SEVEN-
 TEEN,  the chancellor shall submit the inventory, report, and the recom-
 mendations to minimize the number of transportable classroom units with-
 in  the  city  school  district,  compiled  and  developed  pursuant  to
 paragraph  a  of this subdivision, to the governor, the temporary presi-
 dent of the senate, the speaker of  the  assembly,  the  chairs  of  the
 senate and assembly committees on education, and the department. ANNUAL-
 LY, ON OR BEFORE DECEMBER THIRTY-FIRST, THE CHANCELLOR SHALL UPDATE SUCH
 INVENTORY,  REPORT AND RECOMMENDATIONS AND PROVIDE SUCH UPDATED INFORMA-
 TION AND RECOMMENDATIONS TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
 SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRS OF THE SENATE AND ASSEM-
 BLY COMMITTEES ON EDUCATION, AND THE DEPARTMENT.
   § 16. Paragraph q of subdivision 1 of section 3602  of  the  education
 law,  as  amended  by  section 25 of part A of chapter 58 of the laws of
 2011, is amended to read as follows:
   q. "Poverty count" shall mean the sum of  the  product  of  the  lunch
 count  multiplied  by sixty-five percent, plus the product of the census
 count multiplied by sixty-five percent, where:
   (i) "Lunch count" shall mean the product of the public school  enroll-
 ment  of  the  school  district  on  the  date enrollment was counted in
 accordance with this subdivision for the base  year  multiplied  by  the
 three-year average free and reduced price lunch percent; and
   (ii)  "Census  count"  shall  mean  the  product  of the public school
 enrollment of the school district on the date enrollment was counted  in
 accordance  with  this  subdivision  for the base year multiplied by THE
 CENSUS 2000 POVERTY RATE.
   (III) "CENSUS 2000 POVERTY RATE" SHALL MEAN the quotient of the number
 of persons aged five to seventeen within the school district,  based  on
 the [most recent] decennial census CONDUCTED IN THE YEAR TWO THOUSAND as
 tabulated  by  the  National  Center  on  Education Statistics, who were
 enrolled in public schools and whose  families  had  incomes  below  the
 poverty  level,  divided  by  the  total  number of persons aged five to
 seventeen within the school district, based on  such  decennial  census,

 S. 2009--C                         304                        A. 3009--C
 
 who  were  enrolled in public schools, computed to four decimals without
 rounding.
   (IV) "SELECTED POVERTY RATE" SHALL MEAN: (A) FOR SCHOOL DISTRICTS WITH
 HIGH  CONCENTRATIONS  OF  NONPUBLIC  STUDENTS, THE GREATER OF THE CENSUS
 2000 POVERTY RATE OR THE THREE-YEAR AVERAGE SMALL AREA INCOME AND POVER-
 TY ESTIMATE POVERTY RATE; AND (B) FOR ALL OTHER  SCHOOL  DISTRICTS,  THE
 THREE-YEAR  AVERAGE SMALL AREA INCOME AND POVERTY ESTIMATE POVERTY RATE.
 FOR THE PURPOSES OF THIS SUBPARAGRAPH, "THREE-YEAR  AVERAGE  SMALL  AREA
 INCOME  AND  POVERTY  ESTIMATE POVERTY RATE" SHALL EQUAL THE QUOTIENT OF
 (1) THE SUM OF THE NUMBER OF PERSONS AGED FIVE TO SEVENTEEN  WITHIN  THE
 SCHOOL  DISTRICT,  BASED  ON THE SMALL AREA INCOME AND POVERTY ESTIMATES
 PRODUCED BY THE UNITED STATES CENSUS BUREAU, WHOSE FAMILIES HAD  INCOMES
 BELOW  THE  POVERTY  LEVEL  FOR  THE YEAR TWO YEARS PRIOR TO THE YEAR IN
 WHICH THE BASE YEAR BEGAN, PLUS SUCH NUMBER FOR  THE  YEAR  THREE  YEARS
 PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN, PLUS SUCH NUMBER FOR THE
 YEAR  FOUR YEARS PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN, DIVIDED
 BY (2) THE SUM OF THE TOTAL NUMBER OF PERSONS  AGED  FIVE  TO  SEVENTEEN
 WITHIN  THE  SCHOOL DISTRICT, BASED ON SUCH CENSUS BUREAU ESTIMATES, FOR
 THE YEAR TWO YEARS PRIOR TO THE YEAR IN WHICH THE BASE YEAR BEGAN,  PLUS
 SUCH  TOTAL  NUMBER  FOR THE YEAR THREE YEARS PRIOR TO THE YEAR IN WHICH
 THE BASE YEAR BEGAN, PLUS SUCH TOTAL NUMBER  FOR  THE  YEAR  FOUR  YEARS
 PRIOR  TO  THE YEAR IN WHICH THE BASE YEAR BEGAN, COMPUTED TO FOUR DECI-
 MALS WITHOUT ROUNDING.
   (V) "SCHOOL DISTRICTS WITH HIGH CONCENTRATIONS OF NONPUBLIC  STUDENTS"
 SHALL MEAN ANY DISTRICT WHERE: (A) THE QUOTIENT ARRIVED AT WHEN DIVIDING
 (1)  THE SUM OF THE ENROLLMENTS IN GRADES KINDERGARTEN THROUGH TWELVE IN
 THE BASE YEAR CALCULATED PURSUANT TO SUBPARAGRAPHS FIVE AND SIX OF PARA-
 GRAPH N OF THIS SUBDIVISION BY (2) THE RESIDENT PUBLIC  SCHOOL  DISTRICT
 ENROLLMENT  IN  THE  BASE  YEAR COMPUTED PURSUANT TO SUBPARAGRAPHS FOUR,
 FIVE, AND SIX OF  PARAGRAPH  N  OF  THIS  SUBDIVISION  IS  GREATER  THAN
 FIFTEEN-HUNDREDTHS  (0.15);  AND  (B)  THE THREE-YEAR AVERAGE SMALL AREA
 INCOME AND POVERTY ESTIMATE POVERTY RATE IS  GREATER  THAN  TEN  PERCENT
 (0.10).
   § 16-a. Subdivision 4 of section 3602 of the education law, as amended
 by  section 5-a of part A of chapter 56 of the laws of 2015, the opening
 paragraph, subparagraph 1 of paragraph a, clause (ii) of subparagraph  2
 of  paragraph b and paragraph d as amended and paragraph b-2 as added by
 section 7 of part A of chapter 54 of the laws of 2016,  paragraph  e  as
 added  by  section  8  of  part  A of chapter 54 of the laws of 2016, is
 amended to read as follows:
   4. Total foundation aid.   In  addition  to  any  other  apportionment
 pursuant  to  this  chapter, a school district, other than a special act
 school district as defined in subdivision eight of section four thousand
 one of this chapter, shall be eligible for total foundation aid equal to
 the product of total aidable foundation pupil units  multiplied  by  the
 district's  selected  foundation aid, which shall be the greater of five
 hundred dollars ($500) or foundation formula aid, provided, however that
 for the two thousand seven--two  thousand  eight  through  two  thousand
 eight--two  thousand nine school years, no school district shall receive
 total foundation aid in excess of the sum of the  total  foundation  aid
 base  for  aid  payable  in  the  two thousand seven--two thousand eight
 school year computed pursuant to subparagraph  (i)  of  paragraph  j  of
 subdivision  one  of this section, plus the phase-in foundation increase
 computed pursuant to paragraph  b  of  this  subdivision,  and  provided
 further  that  for the two thousand twelve--two thousand thirteen school
 year, no school district shall receive total foundation aid in excess of

 S. 2009--C                         305                        A. 3009--C
 
 the sum of the total foundation aid base for  aid  payable  in  the  two
 thousand  eleven--two  thousand  twelve school year computed pursuant to
 subparagraph (ii) of paragraph j of subdivision  one  of  this  section,
 plus  the  phase-in foundation increase computed pursuant to paragraph b
 of this subdivision, and provided further  that  for  the  two  thousand
 thirteen--two  thousand  fourteen  school year and thereafter, no school
 district shall receive total foundation aid in excess of the sum of  the
 total  foundation  aid  base  computed  pursuant to subparagraph (ii) of
 paragraph j of subdivision one of this section, plus the phase-in  foun-
 dation  increase  computed  pursuant to paragraph b of this subdivision,
 and provided further that for the  two  thousand  sixteen--two  thousand
 seventeen  school year, no eligible school districts shall receive total
 foundation aid in excess of the sum of the  total  foundation  aid  base
 computed pursuant to subparagraph (ii) of paragraph j of subdivision one
 of  this  section  plus the sum of (A) the phase-in foundation increase,
 (B) the executive foundation increase with a minimum  increase  pursuant
 to paragraph b-2 of this subdivision, and (C) an amount equal to "COMMU-
 NITY  SCHOOLS  AID" in the computer listing produced by the commissioner
 in support  of  the  executive  budget  request  for  the  two  thousand
 sixteen--two  thousand  seventeen  school  year  and entitled "BT161-7",
 where (1) "eligible school district" shall be defined as a district with
 (a) an unrestricted aid increase of less than seven percent  (0.07)  and
 (b)  a  three  year average free and reduced price lunch percent greater
 than fifteen percent (0.15), and (2) "unrestricted aid  increase"  shall
 mean  the quotient arrived at when dividing (a) the sum of the executive
 foundation aid increase plus the gap elimination adjustment for the base
 year, by (b) the difference of foundation aid for the base year less the
 gap elimination adjustment for the base year, and (3) "executive founda-
 tion increase" shall mean the difference of (a) the  amounts  set  forth
 for  each school district as "FOUNDATION AID" under the heading "2016-17
 ESTIMATED AIDS" in the school  aid  computer  listing  produced  by  the
 commissioner  in  support  of  the  executive budget request for the two
 thousand  sixteen--two  thousand  seventeen  school  year  and  entitled
 "BT161-7"  less  (b)  the  amounts set forth for each school district as
 "FOUNDATION AID" under the heading "2015-16  BASE  YEAR  AIDS"  in  such
 computer  listing  and  provided further that total foundation aid shall
 not be less than the product of the total foundation aid  base  computed
 pursuant  to paragraph j of subdivision one of this section and the due-
 minimum percent which shall be, for the two thousand  twelve--two  thou-
 sand  thirteen  school  year, one hundred and six-tenths percent (1.006)
 and for the two thousand thirteen--two thousand fourteen school year for
 city school districts of those cities having populations  in  excess  of
 one  hundred  twenty-five thousand and less than one million inhabitants
 one hundred and one and one hundred and seventy-six thousandths  percent
 (1.01176),  and  for  all  other  districts one hundred and three-tenths
 percent (1.003), and for the two thousand fourteen--two thousand fifteen
 school year one hundred and eighty-five hundredths percent (1.0085), and
 for the two thousand fifteen--two  thousand  sixteen  school  year,  one
 hundred  thirty-seven hundredths percent (1.0037), subject to allocation
 pursuant to the provisions of subdivision eighteen of this  section  and
 any  provisions of a chapter of the laws of New York as described there-
 in, nor more than the product of such total foundation aid base and  one
 hundred  fifteen percent FOR ANY SCHOOL YEAR OTHER THAN THE TWO THOUSAND
 SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,  provided,  however,  that
 for  the  two  thousand sixteen--two thousand seventeen school year such
 maximum shall be no more than the sum of (i) the product of  such  total

 S. 2009--C                         306                        A. 3009--C
 
 foundation aid base and one hundred fifteen percent plus (ii) the execu-
 tive  foundation  increase and plus (iii) "COMMUNITY SCHOOLS AID" in the
 computer listing produced by the commissioner in support of  the  execu-
 tive budget request for the two thousand sixteen--two thousand seventeen
 school year and entitled "BT161-7" and provided further that for the two
 thousand  nine--two  thousand ten through two thousand eleven--two thou-
 sand twelve school years, each school district shall receive total foun-
 dation aid in an amount equal to the amount apportioned to  such  school
 district  for  the  two  thousand  eight--two  thousand nine school year
 pursuant to this subdivision. Total aidable foundation pupil units shall
 be calculated pursuant  to  paragraph  g  of  subdivision  two  of  this
 section.  For  the purposes of calculating aid pursuant to this subdivi-
 sion, aid for the city school district of the city of New York shall  be
 calculated on a citywide basis.
   a.  Foundation  formula  aid.  Foundation  formula aid shall equal the
 remainder when the expected minimum  local  contribution  is  subtracted
 from  the product of the foundation amount, the regional cost index, and
 the pupil need index, or: (foundation amount x  regional  cost  index  x
 pupil need index)- expected minimum local contribution.
   (1)  The foundation amount shall reflect the average per pupil cost of
 general education instruction in successful school districts, as  deter-
 mined  by  a  statistical analysis of the costs of special education and
 general education in successful  school  districts,  provided  that  the
 foundation  amount  shall be adjusted annually to reflect the percentage
 increase in the consumer price index as computed pursuant to section two
 thousand twenty-two of this chapter, provided that for the two  thousand
 eight--two  thousand  nine  school year, for the purpose of such adjust-
 ment, the percentage increase in  the  consumer  price  index  shall  be
 deemed  to  be two and nine-tenths percent (0.029), and provided further
 that the foundation amount for  the  two  thousand  seven--two  thousand
 eight  school  year  shall  be  five  thousand  two  hundred fifty-eight
 dollars, and provided further that for the two thousand seven--two thou-
 sand  eight  through  two  thousand  [sixteen]  SEVENTEEN--two  thousand
 [seventeen]  EIGHTEEN  school  years,  the  foundation  amount  shall be
 further adjusted by the phase-in foundation percent established pursuant
 to paragraph b of this subdivision.
   (2) The regional cost index shall reflect an analysis of labor  market
 costs  based on median salaries in professional occupations that require
 similar credentials to those of positions in the  education  field,  but
 not  including  those  occupations in the education field, provided that
 the regional cost indices for the two thousand seven--two thousand eight
 school year and thereafter shall be as follows:
           Labor Force Region  Index
           Capital District    1.124
           Southern Tier       1.045
           Western New York    1.091
           Hudson Valley       1.314
           Long Island/NYC     1.425
           Finger Lakes        1.141
           Central New York    1.103
           Mohawk Valley       1.000
           North Country       1.000
   (3) The pupil need index shall equal the sum of one plus the  extraor-
 dinary needs percent, provided, however, that the pupil need index shall
 not  be less than one nor more than two. The extraordinary needs percent

 S. 2009--C                         307                        A. 3009--C
 
 shall be calculated pursuant to paragraph w of subdivision one  of  this
 section.
   (4)  The expected minimum local contribution shall equal the lesser of
 (i) the product of (A) the quotient arrived at when the selected  actual
 valuation  is divided by total wealth foundation pupil units, multiplied
 by (B) the product of the local tax factor,  multiplied  by  the  income
 wealth  index,  or (ii) the product of (A) the product of the foundation
 amount, the regional cost index, and the pupil need index, multiplied by
 (B) the positive difference, if any, of  one  minus  the  state  sharing
 ratio  for  total  foundation  aid. The local tax factor shall be estab-
 lished by May first of each year by determining the product, computed to
 four decimal places without rounding, of ninety  percent  multiplied  by
 the quotient of the sum of the statewide average tax rate as computed by
 the  commissioner for the current year in accordance with the provisions
 of paragraph e of subdivision one of section thirty-six  hundred  nine-e
 of this part plus the statewide average tax rate computed by the commis-
 sioner  for  the  base  year in accordance with such provisions plus the
 statewide average tax rate computed by the  commissioner  for  the  year
 prior  to  the  base year in accordance with such provisions, divided by
 three, provided however that for the two  thousand  seven--two  thousand
 eight  school  year,  such local tax factor shall be sixteen thousandths
 (0.016), and provided further that for the two thousand eight--two thou-
 sand nine school year, such  local  tax  factor  shall  be  one  hundred
 fifty-four  ten  thousandths  (0.0154). The income wealth index shall be
 calculated pursuant to paragraph d of subdivision three of this section,
 provided, however, that for the purposes of computing the expected mini-
 mum local contribution the income wealth index shall not  be  less  than
 sixty-five percent (0.65) and shall not be more than two hundred percent
 (2.0)  and  provided  however that such income wealth index shall not be
 more than ninety-five percent (0.95) for  the  two  thousand  eight--two
 thousand  nine school year, and provided further that such income wealth
 index shall not be less than zero for  the  two  thousand  thirteen--two
 thousand  fourteen  school  year. The selected actual valuation shall be
 calculated pursuant to paragraph c of subdivision one of  this  section.
 Total  wealth  foundation  pupil  units  shall be calculated pursuant to
 paragraph h of subdivision two of this section.
   b. Phase-in foundation increase. (1) The phase-in foundation  increase
 shall  equal  the  product  of  the  phase-in foundation increase factor
 multiplied by the positive difference, if any, of (i) the product of the
 total aidable  foundation  pupil  units  multiplied  by  the  district's
 selected foundation aid less (ii) the total foundation aid base computed
 pursuant to paragraph j of subdivision one of this section.
   (2)  (i)  Phase-in foundation percent. The phase-in foundation percent
 shall equal one hundred thirteen and  fourteen  one  hundredths  percent
 (1.1314)  for  the two thousand eleven--two thousand twelve school year,
 one hundred ten and thirty-eight hundredths percent (1.1038) for the two
 thousand twelve--two thousand thirteen school year,  one  hundred  seven
 and  sixty-eight  hundredths percent (1.0768) for the two thousand thir-
 teen--two thousand fourteen  school  year,  one  hundred  five  and  six
 hundredths  percent (1.0506) for the two thousand fourteen--two thousand
 fifteen school year,  and  one  hundred  two  and  five  tenths  percent
 (1.0250) for the two thousand fifteen--two thousand sixteen school year.
   (ii)  Phase-in  foundation  increase  factor.  For  the  two  thousand
 eleven--two  thousand  twelve  school  year,  the  phase-in   foundation
 increase  factor  shall  equal thirty-seven and one-half percent (0.375)
 and the phase-in due minimum percent shall equal nineteen and  forty-one

 S. 2009--C                         308                        A. 3009--C
 
 hundredths  percent  (0.1941), for the two thousand twelve--two thousand
 thirteen school year the phase-in foundation increase factor shall equal
 one and seven-tenths percent (0.017), for the two thousand thirteen--two
 thousand  fourteen  school  year the phase-in foundation increase factor
 shall equal (1) for a city school district in a city having a population
 of one  million  or  more,  five  and  twenty-three  hundredths  percent
 (0.0523) or (2) for all other school districts zero percent, for the two
 thousand fourteen--two thousand fifteen school year the phase-in founda-
 tion  increase  factor  shall  equal (1) for a city school district of a
 city having a population of one million or  more,  four  and  thirty-two
 hundredths  percent  (0.0432)  or (2) for a school district other than a
 city school district having a population of  one  million  or  more  for
 which  (A)  the  quotient  of  the positive difference of the foundation
 formula aid minus the foundation aid base computed pursuant to paragraph
 j of subdivision one of this section divided by the  foundation  formula
 aid  is greater than twenty-two percent (0.22) and (B) a combined wealth
 ratio less than thirty-five hundredths (0.35), seven percent  (0.07)  or
 (3)  for  all  other  school  districts,  four and thirty-one hundredths
 percent (0.0431), and for the two thousand fifteen--two thousand sixteen
 school year the phase-in foundation increase factor shall equal: (1) for
 a city school district of a city having a population of one  million  or
 more,   thirteen   and  two  hundred  seventy-four  thousandths  percent
 (0.13274); or (2) for districts  where  the  quotient  arrived  at  when
 dividing  (A)  the  product  of the total aidable foundation pupil units
 multiplied by the district's selected  foundation  aid  less  the  total
 foundation  aid base computed pursuant to paragraph j of subdivision one
 of this section divided by (B) the product of the total aidable  founda-
 tion pupil units multiplied by the district's selected foundation aid is
 greater  than nineteen percent (0.19), and where the district's combined
 wealth ratio is less than  thirty-three  hundredths  (0.33),  seven  and
 seventy-five  hundredths percent (0.0775); or (3) for any other district
 designated as high need pursuant to clause (c) of  subparagraph  two  of
 paragraph  c  of  subdivision  six  of  this  section for the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for  the  two thousand seven--two thousand eight school year and
 entitled "SA0708", four  percent  (0.04);  or  (4)  for  a  city  school
 district  in a city having a population of one hundred twenty-five thou-
 sand or more but less than one million, fourteen percent (0.14); or  (5)
 for school districts that were designated as small city school districts
 or  central  school  districts  whose  boundaries include a portion of a
 small city for the school aid computer listing produced by  the  commis-
 sioner  in support of the enacted budget for the two thousand fourteen--
 two thousand fifteen school year and entitled "SA1415", four  and  seven
 hundred  fifty-one  thousandths  percent (0.04751); or (6) for all other
 districts one percent (0.01), and  for  the  two  thousand  sixteen--two
 thousand  seventeen  school  year  THE  FOUNDATION AID PHASE-IN INCREASE
 FACTOR shall equal for an eligible school district the greater  of:  (1)
 for a city school district in a city with a population of one million or
 more, seven and seven hundred eighty four thousandths percent (0.07784);
 or  (2)  for  a city school district in a city with a population of more
 than two hundred fifty thousand but less than one million as of the most
 recent federal decennial census,  seven  and  three  hundredths  percent
 (0.0703);  or (3) for a city school district in a city with a population
 of more than two hundred thousand but less than two hundred fifty  thou-
 sand as of the most recent federal decennial census, six and seventy-two
 hundredths percent (0.0672); or (4) for a city school district in a city

 S. 2009--C                         309                        A. 3009--C
 
 with  a population of more than one hundred fifty thousand but less than
 two hundred thousand as of the most recent federal decennial census, six
 and seventy-four hundredths percent (0.0674); or (5) for a  city  school
 district  in  a  city with a population of more than one hundred twenty-
 five thousand but less than one hundred fifty thousand as  of  the  most
 recent  federal decennial census, nine and fifty-five hundredths percent
 (0.0955); or (6) for school districts that were designated as small city
 school districts or central school districts whose boundaries include  a
 portion  of a small city for the school aid computer listing produced by
 the commissioner in support of the enacted budget for the  two  thousand
 fourteen--two thousand fifteen school year and entitled "SA141-5" with a
 combined  wealth ratio less than one and four tenths (1.4), nine percent
 (0.09), provided,  however,  that  for  such  districts  that  are  also
 districts  designated as high need urban-suburban pursuant to clause (c)
 of subparagraph two of paragraph c of subdivision six  of  this  section
 for  the  school  aid  computer  listing produced by the commissioner in
 support of the enacted budget for the two thousand  seven--two  thousand
 eight  school  year  and  entitled  "SA0708", nine and seven hundred and
 nineteen thousandths percent (0.09719);  or  (7)  for  school  districts
 designated as high need rural pursuant to clause (c) of subparagraph two
 of  paragraph  c  of  subdivision six of this section for the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for  the  two thousand seven--two thousand eight school year and
 entitled "SA0708", thirteen and six tenths percent (0.136); or  (8)  for
 school  districts  designated  as  high  need urban-suburban pursuant to
 clause (c) of subparagraph two of paragraph c of subdivision six of this
 section for the school aid computer listing produced by the commissioner
 in support of the enacted budget for the two thousand  seven--two  thou-
 sand  eight  school  year  and entitled "SA0708", seven hundred nineteen
 thousandths percent (0.00719); or (9)  for  all  other  eligible  school
 districts,  forty-seven  hundredths  percent  (0.0047), PROVIDED FURTHER
 THAT FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN  SCHOOL  YEAR
 THE  FOUNDATION  AID INCREASE PHASE-IN FACTOR SHALL EQUAL (1) FOR SCHOOL
 DISTRICTS WITH A CENSUS 2000 POVERTY RATE COMPUTED PURSUANT TO PARAGRAPH
 Q OF SUBDIVISION ONE OF THIS SECTION EQUAL TO OR GREATER THAN TWENTY-SIX
 PERCENT (0.26), TEN AND THREE-TENTHS  PERCENT  (0.103),  OR  (2)  FOR  A
 SCHOOL  DISTRICT IN A CITY WITH A POPULATION IN EXCESS OF ONE MILLION OR
 MORE, SEVENTEEN AND SEVENTY-SEVEN ONE-HUNDREDTHS  PERCENT  (0.1777),  OR
 (3)  FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF MORE THAN
 TWO HUNDRED FIFTY THOUSAND BUT LESS THAN ONE MILLION,  AS  OF  THE  MOST
 RECENT  DECENNIAL  CENSUS,  TWELVE  AND  SIXTY-NINE  HUNDREDTHS  PERCENT
 (0.1269) OR (4) FOR A CITY SCHOOL DISTRICT IN A CITY WITH  A  POPULATION
 OF  MORE THAN ONE HUNDRED FIFTY THOUSAND BUT LESS THAN TWO HUNDRED THOU-
 SAND, AS OF THE MOST RECENT FEDERAL DECENNIAL CENSUS, TEN  AND  SEVENTY-
 EIGHT ONE HUNDREDTHS PERCENT (0.1078), OR (5) FOR A CITY SCHOOL DISTRICT
 IN  A  CITY WITH A POPULATION OF MORE THAN ONE HUNDRED TWENTY-FIVE THOU-
 SAND BUT LESS THAN ONE HUNDRED FIFTY THOUSAND  AS  OF  THE  MOST  RECENT
 FEDERAL DECENNIAL CENSUS, NINETEEN AND ONE HUNDRED EIGHT ONE-THOUSANDTHS
 PERCENT  (0.19108),  OR  (6) FOR A CITY SCHOOL DISTRICT IN A CITY WITH A
 POPULATION OF MORE THAN TWO HUNDRED THOUSAND BUT LESS THAN  TWO  HUNDRED
 FIFTY  THOUSAND  AS OF THE MOST RECENT FEDERAL DECENNIAL CENSUS, TEN AND
 SIX-TENTHS PERCENT (0.106), OR (7) FOR ALL  OTHER  DISTRICTS,  FOUR  AND
 EIGHTY-SEVEN  ONE-HUNDREDTHS PERCENT (0.0487), and for the [two thousand
 seventeen--two thousand eighteen] TWO  THOUSAND  EIGHTEEN--TWO  THOUSAND
 NINETEEN  school  year  and  thereafter  the commissioner shall annually
 determine the phase-in foundation increase factor subject to  allocation

 S. 2009--C                         310                        A. 3009--C
 
 pursuant  to  the provisions of subdivision eighteen of this section and
 any provisions of a chapter of the laws of New York as described  there-
 in.
   b-1.  Notwithstanding  any other provision of law to the contrary, for
 the two thousand seven--two thousand eight school year  and  thereafter,
 the  additional  amount payable to each school district pursuant to this
 subdivision in the current year as total foundation aid, after deducting
 the total foundation aid base, shall be deemed  a  state  grant  in  aid
 identified  by  the commissioner for general use for purposes of section
 seventeen hundred eighteen of this chapter.
   b-2. Due minimum for the two thousand sixteen--two thousand  seventeen
 school year. Notwithstanding any other provision of law to the contrary,
 for  the  two  thousand  sixteen--two thousand seventeen school year the
 total foundation aid shall not be less than the sum of the total founda-
 tion aid base computed pursuant to paragraph j  of  subdivision  one  of
 this  section  plus  the  due  minimum for the two thousand sixteen--two
 thousand seventeen school year, where such due minimum shall  equal  the
 difference  of  (1)  the product of (A) two percent (0.02) multiplied by
 (B) the difference of total foundation aid for the base  year  less  the
 gap  elimination  adjustment  for the base year, less (2) the sum of (A)
 the difference of the amounts set forth  for  each  school  district  as
 "FOUNDATION  AID"  under  the  heading  "2016-17  ESTIMATED AIDS" in the
 school aid computer listing produced by the commissioner in  support  of
 the  executive budget request for the two thousand sixteen--two thousand
 seventeen school year and entitled "BT161-7" less the amounts set  forth
 for  each school district as "FOUNDATION AID" under the heading "2015-16
 BASE YEAR AIDS" in such computer listing plus (B)  the  gap  elimination
 adjustment for the base year.
   B-3. DUE MINIMUM FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
 SCHOOL YEAR. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
 FOR  THE  TWO  THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THE
 TOTAL FOUNDATION AID SHALL NOT BE LESS THAN (A) THE  SUM  OF  THE  TOTAL
 FOUNDATION  AID BASE COMPUTED PURSUANT TO PARAGRAPH J OF SUBDIVISION ONE
 OF THIS SECTION PLUS THE PRODUCT OF (I) THE DIFFERENCE OF THE AMOUNT SET
 FORTH FOR SUCH SCHOOL DISTRICT AS "FOUNDATION  AID"  UNDER  THE  HEADING
 "2017-18  ESTIMATED AIDS" IN THE SCHOOL AID COMPUTER LISTING PRODUCED BY
 THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE  TWO
 THOUSAND  SEVENTEEN--TWO  THOUSAND  EIGHTEEN  SCHOOL  YEAR  AND ENTITLED
 "BT171-8" LESS THE AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT AS "FOUNDA-
 TION AID" UNDER THE HEADING "2016-17 BASE YEAR AIDS" IN THE  SCHOOL  AID
 COMPUTER  LISTING  PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE EXECU-
 TIVE BUDGET REQUEST FOR THE TWO THOUSAND SEVENTEEN--TWO  THOUSAND  EIGH-
 TEEN SCHOOL YEAR AND ENTITLED "BT171-8" MULTIPLIED BY (II) ONE AND EIGH-
 TEEN  ONE-HUNDREDTHS  (1.18),  OR  (B)  THE  PRODUCT  OF  FORTY-FOUR AND
 SEVENTY-FIVE ONE-HUNDREDTHS PERCENT (0.4475) MULTIPLIED BY TOTAL FOUNDA-
 TION AID AS COMPUTED PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION, OR (C)
 THE SUM OF THE TOTAL FOUNDATION AID BASE COMPUTED PURSUANT TO  PARAGRAPH
 J  OF  SUBDIVISION  ONE OF THIS SECTION PLUS THE DUE MINIMUM FOR THE TWO
 THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,  WHERE  SUCH  DUE
 MINIMUM  SHALL EQUAL (1) FOR SCHOOL DISTRICTS WITH A CENSUS 2000 POVERTY
 RATE COMPUTED PURSUANT  TO  PARAGRAPH  Q  OF  SUBDIVISION  ONE  OF  THIS
 SECTION,  EQUAL  TO  OR  GREATER  THAN  ELEVEN  AND  NINE-TENTHS PERCENT
 (0.119), THE PRODUCT OF THE FOUNDATION AID BASE  FOR  THE  TWO  THOUSAND
 SEVENTEEN--TWO  THOUSAND  EIGHTEEN  SCHOOL  YEAR  COMPUTED  PURSUANT  TO
 SUBPARAGRAPH (III) OF PARAGRAPH J OF SUBDIVISION  ONE  OF  THIS  SECTION
 MULTIPLIED BY THREE HUNDRED THIRTY-FIVE TEN-THOUSANDTHS (0.0335), OR (2)

 S. 2009--C                         311                        A. 3009--C

 FOR  ALL  OTHER  SCHOOL DISTRICTS THE PRODUCT OF THE FOUNDATION AID BASE
 FOR THE  TWO  THOUSAND  SEVENTEEN--TWO  THOUSAND  EIGHTEEN  SCHOOL  YEAR
 COMPUTED  PURSUANT  TO  SUBPARAGRAPH (III) OF PARAGRAPH J OF SUBDIVISION
 ONE  OF  THIS  SECTION MULTIPLIED BY TWO AND SEVENTY-FOUR ONE-HUNDREDTHS
 PERCENT (0.0274).
   B-4. ADDITIONAL INCREASE FOR THE TWO THOUSAND  SEVENTEEN-TWO  THOUSAND
 EIGHTEEN  SCHOOL YEAR. FOR THE TWO THOUSAND SEVENTEEN-TWO THOUSAND EIGH-
 TEEN SCHOOL YEAR, ANY SCHOOL DISTRICT ELIGIBLE  TO  RECEIVE  A  PHASE-IN
 FOUNDATION  INCREASE PURSUANT TO THIS SUBDIVISION SHALL RECEIVE AN ADDI-
 TIONAL FOUNDATION INCREASE EQUAL TO THE SUM OF TIERS A, B, C, AND  D  AS
 DEFINED HEREIN.
   (I)  TIER  A.  FOR ALL SCHOOL DISTRICTS OTHER THAN A DISTRICT WITHIN A
 CITY WITH A POPULATION OF ONE MILLION OR MORE, WITH  A  COMBINED  WEALTH
 RATIO  LESS  THAN TWO (2.0), WHERE EITHER (A) THE QUOTIENT ARRIVED AT BY
 DIVIDING THE ENGLISH LANGUAGE LEARNER COUNT PURSUANT TO PARAGRAPH  O  OF
 SUBDIVISION  ONE  OF THIS SECTION FOR THE BASE YEAR BY THE PUBLIC SCHOOL
 DISTRICT ENROLLMENT FOR THE BASE YEAR PURSUANT TO PARAGRAPH N OF  SUBDI-
 VISION  ONE OF THIS SECTION IS GREATER THAN TWO ONE-HUNDREDTHS (0.02) OR
 (B) THE QUOTIENT ARRIVED AT BY DIVIDING THE DIFFERENCE  OF  THE  ENGLISH
 LANGUAGE  LEARNER  COUNT  PURSUANT  TO PARAGRAPH O OF SUBDIVISION ONE OF
 THIS SECTION FOR THE BASE YEAR LESS SUCH COUNT FOR ONE YEAR PRIOR TO THE
 BASE YEAR BY THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR ONE YEAR PRIOR TO
 THE BASE YEAR PURSUANT TO PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION
 IS GREATER THAN ONE ONE-THOUSANDTH (0.001), TIER A SHALL EQUAL THE PROD-
 UCT OF (A) THE DIFFERENCE OF TWO MINUS THE COMBINED WEALTH RATIO  MULTI-
 PLIED BY (B) ONE HUNDRED DOLLARS ($100.00) MULTIPLIED BY (C) THE ENGLISH
 LANGUAGE LEARNER COUNT FOR THE BASE YEAR.
   (II) TIER B. FOR ANY SCHOOL DISTRICT (A) WHERE THE AMOUNT SET FORTH AS
 "25% LIMIT CAP ON INCREASE" ON THE COMPUTER FILE PRODUCED BY THE COMMIS-
 SIONER  IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND SEVEN--TWO
 THOUSAND EIGHT SCHOOL YEAR AND ENTITLED "SA070-8" IS LESS THAN ZERO  AND
 (B)  WITH  A  COMBINED  WEALTH RATIO COMPUTED PURSUANT TO PARAGRAPH C OF
 SUBDIVISION THREE OF THIS SECTION GREATER THAN ONE (1.0), TIER  B  SHALL
 EQUAL  THE PRODUCT OF (A) THE SUM OF (1) THE DIFFERENCE OF TOTAL FOUNDA-
 TION AID LESS THE FOUNDATION AID BASE PLUS (2)  THE  DIFFERENCE  OF  THE
 AMOUNT  SET FORTH FOR SUCH SCHOOL DISTRICT AS "FOUNDATION AID" UNDER THE
 HEADING "2017-18 ESTIMATED AIDS" IN  THE  SCHOOL  AID  COMPUTER  LISTING
 PRODUCED  BY THE COMMISSIONER IN SUPPORT OF THE EXECUTIVE BUDGET REQUEST
 AND ENTITLED "BT1718" LESS THE FOUNDATION AID BASE MULTIPLIED BY (B) TEN
 AND TWO-TENTHS PERCENT (0.102).
   (III) TIER C. FOR ALL SCHOOL DISTRICTS WITH A  COMBINED  WEALTH  RATIO
 FOR TOTAL FOUNDATION AID COMPUTED PURSUANT TO PARAGRAPH C OF SUBDIVISION
 THREE  OF  THIS SECTION LESS THAN ONE (1.0), TIER C SHALL BE THE GREATER
 OF (A) FOR DISTRICTS THAT WERE DESIGNATED AS SMALL CITY SCHOOL DISTRICTS
 OR CENTRAL SCHOOL DISTRICTS WHOSE BOUNDARIES  INCLUDE  A  PORTION  OF  A
 SMALL  CITY  FOR THE SCHOOL AID COMPUTER LISTING PRODUCED BY THE COMMIS-
 SIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE TWO THOUSAND  FOURTEEN--
 TWO  THOUSAND  FIFTEEN SCHOOL YEAR AND ENTITLED "SA1415", THE PRODUCT OF
 THE PUBLIC SCHOOL DISTRICT ENROLLMENT FOR  THE  BASE  YEAR  PURSUANT  TO
 PARAGRAPH N OF SUBDIVISION ONE OF THIS SECTION MULTIPLIED BY ONE HUNDRED
 SIXTY-SEVEN  DOLLARS  AND  FORTY  CENTS  ($167.40)  OR  (B)  FOR  SCHOOL
 DISTRICTS WITH A SPARSITY FACTOR AS SET FORTH ON  THE  COMPUTER  LISTING
 PRODUCED  BY  THE  COMMISSIONER IN SUPPORT OF THE ENACTED BUDGET FOR THE
 TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR  AND  ENTITLED
 "SA171-8"  OF  GREATER  THAN  ZERO,  THE  PRODUCT  OF  THE PUBLIC SCHOOL

 S. 2009--C                         312                        A. 3009--C
 
 DISTRICT ENROLLMENT FOR THE BASE YEAR MULTIPLIED BY ONE HUNDRED  EIGHTY-
 EIGHT DOLLARS ($188.00).
   (IV)  TIER  D. FOR ALL SCHOOL DISTRICTS, OTHER THAN DISTRICTS WITHIN A
 CITY WITH A POPULATION OF ONE HUNDRED TWENTY-FIVE THOUSAND OR MORE, WITH
 A SELECTED POVERTY RATE OF GREATER THAN EIGHTEEN HUNDREDTHS (0.18), TIER
 D SHALL EQUAL THE PRODUCT OF THE SELECTED POVERTY RATE MULTIPLIED BY THE
 SCHOOL DISTRICT PUBLIC ENROLLMENT FOR THE BASE YEAR  MULTIPLIED  BY  TWO
 HUNDRED  FORTY  DOLLARS ($240.00), PROVIDED, HOWEVER, THAT FOR DISTRICTS
 WITHIN A CITY WITH A POPULATION OF GREATER THAN ONE HUNDRED  TWENTY-FIVE
 THOUSAND BUT LESS THAN ONE MILLION AND A SELECTED POVERTY RATE OF GREAT-
 ER  THAN  EIGHTEEN  HUNDREDTHS (0.18), TIER D SHALL EQUAL THE PRODUCT OF
 THE SELECTED POVERTY RATE MULTIPLIED BY SCHOOL DISTRICT  PUBLIC  ENROLL-
 MENT  FOR  THE  BASE YEAR MULTIPLIED BY THREE HUNDRED FORTY-FOUR DOLLARS
 ($344.00), AND FOR A CITY SCHOOL DISTRICT IN A CITY WITH A POPULATION OF
 ONE MILLION OR MORE, TIER D SHALL EQUAL  THE  PRODUCT  OF  THE  SELECTED
 POVERTY  RATE  MULTIPLIED  BY  SCHOOL DISTRICT PUBLIC ENROLLMENT FOR THE
 BASE YEAR MULTIPLIED BY TWENTY-NINE CENTS ($0.29).
   c. Public excess cost aid setaside. Each  school  district  shall  set
 aside from its total foundation aid computed for the current year pursu-
 ant  to  this  subdivision  an  amount  equal to the product of: (i) the
 difference between the  amount  the  school  district  was  eligible  to
 receive in the two thousand six--two thousand seven school year pursuant
 to  or  in lieu of paragraph six of subdivision nineteen of this section
 as such paragraph existed on June thirtieth, two thousand  seven,  minus
 the  amount such district was eligible to receive pursuant to or in lieu
 of paragraph five of subdivision nineteen of this section as such  para-
 graph  existed  on  June  thirtieth,  two thousand seven, in such school
 year, and (ii) the sum of one and the percentage increase in the consum-
 er price index for the current year over such consumer price  index  for
 the two thousand six--two thousand seven school year, as computed pursu-
 ant  to section two thousand twenty-two of this chapter. Notwithstanding
 any other provision of law to the contrary, the public excess  cost  aid
 setaside  shall be paid pursuant to section thirty-six hundred nine-b of
 this part.
   d. For the two thousand fourteen--two  thousand  fifteen  through  two
 thousand  [sixteen]  SEVENTEEN--two thousand [seventeen] EIGHTEEN school
 years a city school district of  a  city  having  a  population  of  one
 million or more may use amounts apportioned pursuant to this subdivision
 for afterschool programs.
   e.  Community  schools  aid  set-aside. Each school district shall set
 aside from its total foundation aid computed for the current year pursu-
 ant to this subdivision an amount equal to  [the  following  amount,  if
 any, for such district and] THE SUM OF (I) THE AMOUNT, IF ANY, SET FORTH
 FOR  SUCH  DISTRICT  AS  "COMMUNITY  SCHL AID (BT1617)" IN THE DATA FILE
 PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE ENACTED  BUDGET  FOR  THE
 TWO  THOUSAND  SIXTEEN--TWO  THOUSAND SEVENTEEN SCHOOL YEAR AND ENTITLED
 "SA161-7" AND (II) THE AMOUNT, IF ANY, SET FORTH FOR  SUCH  DISTRICT  AS
 "COMMUNITY  SCHL  INCR" IN THE DATA FILE PRODUCED BY THE COMMISSIONER IN
 SUPPORT OF THE EXECUTIVE BUDGET REQUEST FOR THE TWO THOUSAND  SEVENTEEN-
 -TWO  THOUSAND  EIGHTEEN SCHOOL YEAR AND ENTITLED "BT171-8". EACH SCHOOL
 DISTRICT shall use [the] SUCH "COMMUNITY SCHL AID (BT1617)"  amount  [so
 set aside] to support the transformation of school buildings into commu-
 nity  hubs  to  deliver  co-located  or  school-linked academic, health,
 mental health, nutrition, counseling, legal  and/or  other  services  to
 students  and  their  families, including but not limited to providing a
 community school site coordinator, or to support other costs incurred to

 S. 2009--C                         313                        A. 3009--C
 
 maximize students' academic achievement[:].  EACH SCHOOL DISTRICT  SHALL
 USE  SUCH  "COMMUNITY SCHL INCR" AMOUNT TO SUPPORT THE TRANSFORMATION OF
 SCHOOL BUILDINGS INTO COMMUNITY HUBS TO  DELIVER  CO-LOCATED  OR  SCHOOL
 LINKED  ACADEMIC,  HEALTH,  MENTAL HEALTH SERVICES AND PERSONNEL, AFTER-
 SCHOOL PROGRAMMING, DUAL LANGUAGE PROGRAMS, NUTRITION, COUNSELING, LEGAL
 AND/OR OTHER SERVICES TO STUDENTS AND THEIR FAMILIES, INCLUDING BUT  NOT
 LIMITED  TO  PROVIDING  A COMMUNITY SCHOOL SITE COORDINATOR AND PROGRAMS
 FOR ENGLISH LANGUAGE LEARNERS, OR TO SUPPORT  OTHER  COSTS  INCURRED  TO
 MAXIMIZE  STUDENTS' ACADEMIC ACHIEVEMENT, PROVIDED HOWEVER THAT A SCHOOL
 DISTRICT WHOSE "COMMUNITY SCHL INCR" AMOUNT EXCEEDS ONE MILLION  DOLLARS
 ($1,000,000)  SHALL  USE  AN  AMOUNT EQUAL TO THE GREATER OF ONE HUNDRED
 FIFTY THOUSAND DOLLARS ($150,000) OR TEN PERCENT OF SUCH "COMMUNITY SCHL
 INCR" AMOUNT TO SUPPORT SUCH TRANSFORMATION  AT  SCHOOLS  WITH  EXTRAOR-
 DINARY  HIGH  LEVELS  OF STUDENT NEED AS IDENTIFIED BY THE COMMISSIONER,
 SUBJECT TO THE APPROVAL OF THE DIRECTOR OF THE BUDGET.
 [Addison                                            $132,624
 Adirondack                                           $98,303
 Afton                                                $62,527
 Albany                                            $2,696,127
 Albion                                              $171,687
 Altmar-Parish-Williamstown                          $154,393
 Amityville                                          $140,803
 Amsterdam                                           $365,464
 Andover                                              $41,343
 Auburn                                              $211,759
 Ausable Valley                                       $82,258
 Avoca                                                $40,506
 Batavia                                             $116,085
 Bath                                                $139,788
 Beacon                                               $87,748
 Beaver River                                         $67,970
 Beekmantown                                          $98,308
 Belfast                                              $44,520
 Belleville Henderson                                 $21,795
 Binghamton                                          $477,949
 Bolivar-Richburg                                    $102,276
 Bradford                                             $28,058
 Brasher Falls                                       $146,944
 Brentwood                                         $2,089,437
 Bridgewater-West Winfield (Mt. Markham)             $101,498
 Brocton                                              $63,939
 Brookfield                                           $24,973
 Brushton-Moira                                      $102,613
 Buffalo                                          $12,524,617
 Camden                                              $243,929
 Campbell-Savona                                      $81,862
 Canajoharie                                          $78,428
 Canaseraga                                           $24,622
 Candor                                               $69,400
 Canisteo-Greenwood                                  $105,783
 Carthage                                            $273,578
 Cassadaga Valley                                     $99,547
 Catskill                                             $69,599
 Cattaraugus-Little Valley                            $89,771
 Central Islip                                       $650,359
 Central Valley                                      $154,059

 S. 2009--C                         314                        A. 3009--C

 Charlotte Valley                                     $27,925
 Chateaugay                                           $43,580
 Cheektowaga-Sloan                                    $68,242
 Chenango Valley                                      $46,359
 Cherry Valley-Springfield                            $29,704
 Cincinnatus                                          $71,378
 Clifton-Fine                                         $17,837
 Clyde-Savannah                                       $84,797
 Clymer                                               $28,267
 Cohoes                                              $110,625
 Copenhagen                                           $35,037
 Copiague                                            $308,995
 Cortland                                            $147,875
 Crown Point                                          $24,277
 Cuba-Rushford                                        $67,917
 Dalton-Nunda (Keshequa)                              $65,630
 Dansville                                           $136,766
 De Ruyter                                            $38,793
 Deposit                                              $37,615
 Dolgeville                                           $82,884
 Downsville                                           $10,000
 Dundee                                               $59,404
 Dunkirk                                             $224,658
 East Ramapo (Spring Valley)                         $360,848
 Edmeston                                             $30,288
 Edwards-Knox                                         $95,261
 Elizabethtown-Lewis                                  $14,844
 Ellenville                                          $128,950
 Elmira                                              $501,348
 Fallsburg                                           $111,523
 Fillmore                                             $84,252
 Forestville                                          $34,773
 Fort Edward                                          $32,403
 Fort Plain                                           $86,187
 Franklin                                             $19,086
 Franklinville                                        $84,503
 Freeport                                            $479,702
 Friendship                                           $51,013
 Fulton                                              $241,424
 Genesee Valley                                       $65,066
 Geneva                                              $146,409
 Georgetown-South Otselic                             $34,626
 Gilbertsville-Mount Upton                            $30,930
 Glens Falls Common                                   $10,000
 Gloversville                                        $257,549
 Gouverneur                                          $197,139
 Gowanda                                             $122,173
 Granville                                            $86,044
 Green Island                                         $17,390
 Greene                                               $87,782
 Hadley-Luzerne                                       $37,868
 Hammond                                              $18,750
 Hancock                                              $34,174
 Hannibal                                            $149,286
 Harpursville                                         $89,804
 Hempstead                                         $3,123,056

 S. 2009--C                         315                        A. 3009--C

 Herkimer                                             $64,467
 Hermon-Dekalb                                        $49,211
 Heuvelton                                            $53,905
 Hinsdale                                             $47,128
 Hornell                                             $152,327
 Hudson                                               $86,263
 Hudson Falls                                        $125,709
 Indian River                                        $404,452
 Jamestown                                           $422,610
 Jasper-Troupsburg                                    $65,899
 Jefferson                                            $22,350
 Johnson                                             $179,735
 Johnstown                                            $98,329
 Kingston                                            $241,138
 Kiryas Joel                                          $10,000
 La Fargeville                                        $36,602
 Lackawanna                                          $293,188
 Lansingburgh                                        $170,080
 Laurens                                              $32,110
 Liberty                                             $141,704
 Lisbon                                               $56,498
 Little Falls                                         $76,292
 Livingston Manor                                     $32,996
 Lowville                                            $117,907
 Lyme                                                 $15,856
 Lyons                                                $89,298
 Madison                                              $43,805
 Madrid-Waddington                                    $59,412
 Malone                                              $241,483
 Marathon                                             $79,560
 Margaretville                                        $10,000
 Massena                                             $227,985
 Mcgraw                                               $51,558
 Medina                                              $135,337
 Middleburgh                                          $58,936
 Middletown                                          $683,511
 Milford                                              $28,281
 Monticello                                          $185,418
 Moriah                                               $76,592
 Morris                                               $45,012
 Morristown                                           $25,106
 Morrisville-Eaton                                    $62,490
 Mt Morris                                            $58,594
 Mt Vernon                                           $517,463
 New York City                                    $28,491,241
 Newark                                              $137,556
 Newburgh                                            $837,244
 Newfield                                             $60,998
 Niagara Falls                                       $733,330
 North Rose-Wolcott                                  $107,958
 Northern Adirondack                                  $84,115
 Norwich                                             $155,921
 Norwood-Norfolk                                     $116,262
 Odessa-Montour                                       $70,110
 Ogdensburg                                          $126,942
 Olean                                               $129,603

 S. 2009--C                         316                        A. 3009--C

 Oppenheim-Ephratah-St. Johnsville                    $86,646
 Otego-Unadilla                                       $72,613
 Oxford Acad & Central Schools                        $80,443
 Parishville-Hopkinton                                $35,003
 Peekskill                                           $230,795
 Penn Yan                                             $71,001
 Pine Valley (South Dayton)                           $67,455
 Plattsburgh                                          $75,055
 Poland                                               $37,498
 Port Chester-Rye                                    $241,428
 Port Jervis                                         $189,220
 Poughkeepsie                                      $1,747,582
 Prattsburgh                                          $35,110
 Pulaski                                              $89,146
 Putnam                                               $10,000
 Randolph                                             $88,646
 Red Creek                                            $87,007
 Remsen                                               $32,650
 Rensselaer                                           $74,616
 Richfield Springs                                    $37,071
 Ripley                                               $18,495
 Rochester                                         $7,624,908
 Rome                                                $369,655
 Romulus                                              $22,112
 Roosevelt                                           $353,005
 Salamanca                                           $139,051
 Salmon River                                        $200,831
 Sandy Creek                                          $72,287
 Schenectady                                         $642,884
 Schenevus                                            $29,516
 Scio                                                 $47,097
 Sharon Springs                                       $26,994
 Sherburne-Earlville                                 $154,286
 Sherman                                              $45,067
 Sidney                                               $98,699
 Silver Creek                                         $68,538
 Sodus                                               $100,038
 Solvay                                               $85,506
 South Kortright                                      $23,420
 South Lewis                                          $95,627
 South Seneca                                         $49,768
 Spencer-Van Etten                                    $76,108
 St Regis Falls                                       $30,078
 Stamford                                             $20,137
 Stockbridge Valley                                   $38,537
 Syracuse                                         $10,186,478
 Ticonderoga                                          $36,467
 Tioga                                                $99,411
 Troy                                                $277,420
 Unadilla Valley                                      $90,571
 Uniondale                                           $362,887
 Utica                                               $273,267
 Van Hornesville-Owen D. Young                        $18,604
 Walton                                               $82,541
 Warrensburg                                          $57,996
 Waterloo                                            $123,111

 S. 2009--C                         317                        A. 3009--C

 Watertown                                           $222,343
 Watervliet                                           $94,487
 Waverly                                             $120,319
 Wayland-Cohocton                                    $125,273
 Wellsville                                          $114,359
 West Canada Valley                                   $58,917
 Westbury                                            $403,563
 Westfield                                            $46,542
 Whitehall                                            $46,192
 Whitesville                                          $26,719
 Whitney Point                                       $152,109
 William Floyd                                       $492,842
 Worcester                                            $26,862
 Wyandanch                                           $402,010
 Yonkers                                           $4,286,726
 Yorkshire-Pioneer                                  $210,306]
   §  17.  Section  3  of  chapter  507  of the laws of 1974, relating to
 providing for the apportionment of state  monies  to  certain  nonpublic
 schools,  to reimburse them for their expenses in complying with certain
 state requirements for the administration of state  testing  and  evalu-
 ation programs and for participation in state programs for the reporting
 of  basic  educational  data,  as  amended by chapter 903 of the laws of
 1984, is amended to read as follows:
   § 3. Apportionment. a. The commissioner shall  annually  apportion  to
 each  qualifying  school,  for  school years beginning on and after July
 first, nineteen hundred seventy-four, an amount equal to the actual cost
 incurred by each such  school  during  the  preceding  school  year  for
 providing  services  required  by  law  to  be  rendered to the state in
 compliance  with  the  requirements  of  the  state's  pupil  evaluation
 program,  the  basic  educational data system, regents examinations, the
 statewide evaluation plan, the uniform procedure  for  pupil  attendance
 reporting,  THE  STATE'S  IMMUNIZATION  PROGRAM  and other similar state
 prepared examinations and reporting procedures.
   b. The commissioner shall annually apportion to each qualifying school
 in the cities of New York,  Buffalo  and  Rochester,  for  school  years
 beginning  on  or  after  July first[, nineteen hundred eighty-four] TWO
 THOUSAND SIXTEEN, an amount equal to the actual cost  incurred[,  up  to
 sixty  cents per pupil,] by each such school during the preceding school
 year in meeting the recording and reporting requirements  of  the  state
 school  immunization  program, PROVIDED THAT THE STATE'S LIABILITY SHALL
 BE LIMITED TO THE AMOUNT APPROPRIATED FOR THIS PURPOSE.
   § 18. The education law is amended by adding a  new  section  3037  to
 read as follows:
   §  3037.  GRANTS FOR HIRING TEACHERS. 1. FOR PURPOSES OF THIS SECTION,
 THE FOLLOWING TERM SHALL HAVE THE FOLLOWING MEANING: "ELIGIBLE  TEACHER"
 SHALL  MEAN  AN  INDIVIDUAL  THAT: (A) IS CERTIFIED TO TEACH IN NEW YORK
 STATE PURSUANT TO SECTION THREE THOUSAND FOUR OF THIS ARTICLE; OR  HOLDS
 A MASTER'S DEGREE OR PH.D. IN MATHEMATICS, SCIENCE, TECHNOLOGY OR EDUCA-
 TION;  OR  HOLDS A BACHELOR'S DEGREE IN MATHEMATICS, SCIENCE, TECHNOLOGY
 OR EDUCATION AND IS CURRENTLY ENROLLED IN A MASTER'S OR PH.D.    PROGRAM
 IN  MATHEMATICS, SCIENCE, TECHNOLOGY OR EDUCATION WITHIN FIVE YEARS FROM
 THE LATER OF THE EFFECTIVE DATE OF THIS SECTION OR THE EMPLOYMENT  START
 DATE  WITH  THE  NONPUBLIC  SCHOOL,  (B) TEACHES MATHEMATICS, SCIENCE OR
 TECHNOLOGY IN ANY GRADES FROM THREE THROUGH TWELVE, AND (C) IS  EMPLOYED
 BY A NONPUBLIC SCHOOL.

 S. 2009--C                         318                        A. 3009--C
 
   2.  (A) WITHIN AMOUNTS APPROPRIATED THEREFOR, NONPUBLIC SCHOOLS SHALL,
 UPON APPLICATION, BE REIMBURSED BY THE DEPARTMENT FOR  THE  SALARIES  OF
 ELIGIBLE  TEACHERS.  EACH SCHOOL WHICH SEEKS A REIMBURSEMENT PURSUANT TO
 THIS SECTION SHALL SUBMIT TO THE OFFICE  OF  RELIGIOUS  AND  INDEPENDENT
 SCHOOLS AN APPLICATION THEREFOR, TOGETHER WITH SUCH ADDITIONAL DOCUMENTS
 AS  THE COMMISSIONER MAY REASONABLY REQUIRE, AT SUCH TIMES, IN SUCH FORM
 AND CONTAINING SUCH INFORMATION AS THE  COMMISSIONER  MAY  PRESCRIBE  BY
 REGULATION.    APPLICATIONS  FOR  REIMBURSEMENT PURSUANT TO THIS SECTION
 MUST BE RECEIVED BY AUGUST FIRST OF EACH YEAR FOR SCHOOLS  TO  BE  REIM-
 BURSED FOR THE SALARIES OF ELIGIBLE TEACHERS IN THE PRIOR YEAR.
   (B)  PURSUANT  TO PARAGRAPH (A) OF THIS SUBDIVISION, REIMBURSEMENT FOR
 ELIGIBLE TEACHERS SHALL BE THE AVERAGE  COMPARABLE  TEACHER  SALARY  AND
 PERSONAL  SERVICE,  PER  SUBJECT  AREA, OF PUBLIC SCHOOL TEACHERS IN THE
 SCHOOL DISTRICT IN WHICH SUCH NONPUBLIC SCHOOLS ARE LOCATED,  MULTIPLIED
 BY  THE  PERCENTAGE  OF FULL TIME EQUIVALENT SECULAR INSTRUCTIONAL HOURS
 COMPLETED IN THE SCHOOL DAY PER SUBJECT AREA.  REIMBURSEMENTS SHALL  NOT
 BE  PROVIDED  FOR ELIGIBLE TEACHERS WHO PROVIDE INSTRUCTION IN MATHEMAT-
 ICS, SCIENCE OR TECHNOLOGY IF SUCH  TEACHERS  ALSO  PROVIDE  NON-SECULAR
 INSTRUCTION IN ANY CAPACITY.
   (C)  IN  THE  EVENT THAT THE APPLICATIONS FOR REIMBURSEMENT UNDER THIS
 SECTION EXCEED THE APPROPRIATION AVAILABLE FOR THIS PROGRAM,  THEN  EACH
 APPLICANT  SHALL  ONLY  BE  REIMBURSED AN AMOUNT EQUAL TO THE PERCENTAGE
 THAT EACH SUCH APPLICANT REPRESENTS TO THE  TOTAL  OF  ALL  APPLICATIONS
 SUBMITTED.
   3.  THE COMMISSIONER MAY PROMULGATE ANY RULES OR REGULATIONS NECESSARY
 TO CARRY OUT THE PROVISIONS OF THIS SECTION.
   § 19. Paragraph (a) of subdivision 1 of section 2590-c of  the  educa-
 tion  law,  as amended by chapter 345 of the laws of 2009, is amended to
 read as follows:
   (a) Nine voting members shall be parents whose children are  attending
 a  school  OR  A  PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL under the
 jurisdiction of the community district, or have attended a school  OR  A
 PRE-KINDERGARTEN  PROGRAM  OFFERED BY A SCHOOL under the jurisdiction of
 the community district within the preceding  two  years,  and  shall  be
 selected  by  the presidents and officers of the parents' association or
 parent-teachers' association. Such members shall serve for a term of two
 years.   Presidents and officers of  parents'  associations  or  parent-
 teachers'  associations  who  are  candidates  in  the selection process
 pursuant to this section shall not be eligible to  cast  votes  in  such
 selection  process.  The association shall elect a member to vote in the
 place of each  such  president  or  officer  for  the  purposes  of  the
 selection process.  PROVIDED, HOWEVER, THAT A PARENT OF A PRE-KINDERGAR-
 TEN  PUPIL SHALL VACATE HIS OR HER MEMBERSHIP ON SUCH COMMUNITY DISTRICT
 EDUCATION COUNCIL WHERE THE PARENT NO LONGER HAS A CHILD THAT ATTENDS  A
 SCHOOL  OR PRE-KINDERGARTEN PROGRAM OFFERED BY A SCHOOL UNDER THE JURIS-
 DICTION OF THE COMMUNITY DISTRICT.
   § 20. Subdivisions 1 and 2 of  section  4101  of  the  education  law,
 subdivision 1 as amended by chapter 387 of the laws of 1954 and subdivi-
 sion  2  as amended by section 30 of part B of chapter 57 of the laws of
 2008, are amended to read as follows:
   1. The commissioner of education shall establish schools in such plac-
 es and maintain such courses of instruction therein for the education of
 the Indian children of the state as he OR SHE shall deem  necessary.  He
 OR  SHE shall have general supervision of such education and shall cause
 to be erected where necessary convenient and suitable  school  buildings
 for the accommodation of all the Indian children of the state.

 S. 2009--C                         319                        A. 3009--C
 
   2.  [The]  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW, RULE OR REGU-
 LATION TO THE CONTRARY, THE commissioner in his OR HER  discretion  may,
 instead  of  establishing schools and maintaining courses of instruction
 therein for the education of the Indian children of the state, contract,
 FOR A PERIOD OF UP TO TEN YEARS, with any school district for the educa-
 tion  of  such  Indian children. The consideration for any such contract
 shall not exceed the total cost to the school district of the  education
 of  Indian  children  pursuant  to such contract, less any public moneys
 received by the school district by reason  of  the  attendance  of  such
 Indian children in regular day school, except any public moneys received
 by the district as a building quota pursuant to the provisions of subdi-
 vision  six-a  of  section  thirty-six  hundred two of this chapter. The
 commissioner of taxation and finance shall pay on  the  warrant  of  the
 comptroller  bills,  for the costs and expenses attending such contract,
 approved by the commissioner of education from the appropriation for the
 support and education of Indian children. In carrying out the provisions
 of this article the commissioner, notwithstanding any other provision of
 law, may lease any school ground, site or  building  established  for  a
 reservation  and  owned  by the state of New York to any school district
 upon such terms and conditions  as  he  OR  SHE  shall  deem  necessary,
 convenient and proper. Nothing herein contained shall alter the title of
 the Indians to their lands.
   §  21.  Section  4119 of the education law, as added by chapter 387 of
 the laws of 1954, is amended to read as follows:
   § 4119. School district  may  contract  to  educate  Indian  children.
 Notwithstanding  any  other  provision  of law, the trustee, trustees or
 board of education of any school district shall have power  to  contract
 with  the  commissioner of education for the instruction of Indian chil-
 dren FOR A PERIOD OF TEN YEARS.  Notwithstanding any other provision  of
 law,  the trustee, trustees or board of education of any school district
 shall have authority to lease a site or school  building  owned  by  the
 state  of  New  York whether located on or off an Indian reservation and
 such trustee, trustees or board of education  shall  have  authority  to
 maintain  school  in  such  building  notwithstanding the fact that such
 building may not be located within the district boundary lines  of  such
 school district.
   §  22. The closing paragraph of subdivision 5-a of section 3602 of the
 education law, as amended by section 2 of part A of chapter  54  of  the
 laws of 2016, is amended to read as follows:
   For the two thousand eight--two thousand nine school year, each school
 district  shall  be entitled to an apportionment equal to the product of
 fifteen percent and the additional apportionment  computed  pursuant  to
 this  subdivision  for the two thousand seven--two thousand eight school
 year. For the two thousand nine--two thousand ten through  two  thousand
 [sixteen]  SEVENTEEN--two  thousand  [seventeen]  EIGHTEEN school years,
 each school district shall be entitled to an apportionment equal to  the
 amount  set  forth  for such school district as "SUPPLEMENTAL PUB EXCESS
 COST" under the heading "2008-09 BASE  YEAR  AIDS"  in  the  school  aid
 computer  listing  produced by the commissioner in support of the budget
 for the two thousand nine--two thousand ten  school  year  and  entitled
 "SA0910".
   §  23. Paragraph b of subdivision 6-c of section 3602 of the education
 law, as amended by section 24 of part A of chapter 54  of  the  laws  of
 2016, is amended to read as follows:
   b.  For  projects  approved  by the commissioner authorized to receive
 additional building aid pursuant to this subdivision for the purchase of

 S. 2009--C                         320                        A. 3009--C
 
 stationary metal detectors, security cameras or other  security  devices
 approved  by  the  commissioner that increase the safety of students and
 school personnel, provided that for  purposes  of  this  paragraph  such
 other  security  devices shall be limited to electronic security systems
 and hardened doors, and provided  that  for  projects  approved  by  the
 commissioner on or after the first day of July two thousand thirteen and
 before  the  first  day  of  July two thousand [seventeen] EIGHTEEN such
 additional aid shall equal the product of (i)  the  building  aid  ratio
 computed for use in the current year pursuant to paragraph c of subdivi-
 sion  six  of this section plus ten percentage points, except that in no
 case shall this amount exceed one hundred percent, and (ii)  the  actual
 approved  expenditures incurred in the base year pursuant to this subdi-
 vision, provided that the limitations on cost allowances  prescribed  by
 paragraph  a  of  subdivision  six  of this section shall not apply, and
 provided further that any projects aided under this  paragraph  must  be
 included  in  a  district's  school  safety plan. The commissioner shall
 annually prescribe a special cost allowance  for  metal  detectors,  and
 security  cameras,  and  the approved expenditures shall not exceed such
 cost allowance.
   § 24. Subdivision 12 of section 3602 of the education law  is  amended
 by adding a  new undesignated paragraph to read as follows:
   FOR  THE  TWO  THOUSAND  SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR,
 EACH SCHOOL DISTRICT SHALL BE ENTITLED TO AN APPORTIONMENT EQUAL TO  THE
 AMOUNT  SET  FORTH  FOR  SUCH  SCHOOL DISTRICT AS "ACADEMIC ENHANCEMENT"
 UNDER THE HEADING "2016-17 ESTIMATED AIDS" IN THE  SCHOOL  AID  COMPUTER
 LISTING  PRODUCED  BY  THE COMMISSIONER IN SUPPORT OF THE BUDGET FOR THE
 TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL  YEAR  AND  ENTITLED
 "SA161-7",  AND  SUCH APPORTIONMENT SHALL BE DEEMED TO SATISFY THE STATE
 OBLIGATION TO PROVIDE AN APPORTIONMENT PURSUANT TO SUBDIVISION EIGHT  OF
 SECTION THIRTY-SIX HUNDRED FORTY-ONE OF THIS ARTICLE.
   §  25.  The opening paragraph of subdivision 16 of section 3602 of the
 education law, as amended by section 4 of part A of chapter  54  of  the
 laws of 2016, is amended to read as follows:
   Each  school  district  shall  be  eligible  to receive a high tax aid
 apportionment in the two thousand eight--two thousand nine school  year,
 which  shall equal the greater of (i) the sum of the tier 1 high tax aid
 apportionment, the tier 2 high tax aid apportionment and the tier 3 high
 tax aid apportionment or (ii) the product of the apportionment  received
 by  the school district pursuant to this subdivision in the two thousand
 seven--two thousand eight school year,  multiplied  by  the  due-minimum
 factor,  which shall equal, for districts with an alternate pupil wealth
 ratio computed pursuant to paragraph b  of  subdivision  three  of  this
 section that is less than two, seventy percent (0.70), and for all other
 districts,  fifty percent (0.50). Each school district shall be eligible
 to receive a high tax aid apportionment in the  two  thousand  nine--two
 thousand  ten  through two thousand twelve--two thousand thirteen school
 years in the amount set forth for such school district as "HIGH TAX AID"
 under the heading "2008-09 BASE YEAR AIDS" in the  school  aid  computer
 listing  produced  by  the commissioner in support of the budget for the
 two thousand nine--two thousand ten school year and  entitled  "SA0910".
 Each  school district shall be eligible to receive a high tax aid appor-
 tionment in the two thousand  thirteen--two  thousand  fourteen  through
 [two  thousand sixteen--two thousand seventeen] TWO THOUSAND SEVENTEEN--
 TWO THOUSAND EIGHTEEN school years equal  to  the  greater  of  (1)  the
 amount  set  forth  for such school district as "HIGH TAX AID" under the
 heading "2008-09 BASE YEAR AIDS" in  the  school  aid  computer  listing

 S. 2009--C                         321                        A. 3009--C
 
 produced  by the commissioner in support of the budget for the two thou-
 sand nine--two thousand ten school year and entitled "SA0910" or (2) the
 amount set forth for such school district as "HIGH TAX  AID"  under  the
 heading  "2013-14  ESTIMATED  AIDS"  in  the school aid computer listing
 produced by the commissioner in support of the executive budget for  the
 2013-14 fiscal year and entitled "BT131-4".
   §  26.  Subdivision  10  of  section  3602-e  of the education law, as
 amended by section 22 of part B of chapter 57 of the laws of  2008,  the
 opening paragraph as amended by section 5 of part A of chapter 54 of the
 laws of 2016, is amended to read as follows:
   10.  Universal  prekindergarten aid.  Notwithstanding any provision of
 law to the contrary, (I) for aid payable in the two thousand  eight--two
 thousand  nine  school  year, the grant to each eligible school district
 for universal prekindergarten aid shall be  computed  pursuant  to  this
 subdivision,  and  (II)  for the two thousand nine--two thousand ten and
 two thousand ten--two thousand eleven school years, each school district
 shall be eligible for a maximum grant equal to the amount  computed  for
 such  school  district  for  the  base  year in the electronic data file
 produced by the commissioner in support of the  two  thousand  nine--two
 thousand  ten  education,  labor and family assistance budget, provided,
 however, that in the case of a district implementing  programs  for  the
 first time or implementing expansion programs in the two thousand eight-
 -two thousand nine school year where such programs operate for a minimum
 of  ninety days in any one school year as provided in section 151-1.4 of
 the regulations of the commissioner,  for  the  two  thousand  nine--two
 thousand  ten  and  two  thousand ten--two thousand eleven school years,
 such school district shall be eligible for a maximum grant equal to  the
 amount  computed  pursuant  to  paragraph  a of subdivision nine of this
 section in the two thousand eight--two thousand nine  school  year,  and
 (III)  for the two thousand eleven--two thousand twelve school year each
 school district shall be eligible for  a  maximum  grant  equal  to  the
 amount set forth for such school district as "UNIVERSAL PREKINDERGARTEN"
 under  the  heading  "2011-12 ESTIMATED AIDS" in the school aid computer
 listing produced by the commissioner in support of  the  enacted  budget
 for  the  2011-12  school  year and entitled "SA111-2", and (IV) for two
 thousand twelve--two thousand thirteen through two thousand sixteen--two
 thousand seventeen school years each school district shall  be  eligible
 for  a  maximum  grant  equal to the greater of [(i)] (A) the amount set
 forth for such school district as "UNIVERSAL PREKINDERGARTEN" under  the
 heading  "2010-11  BASE  YEAR  AIDS"  in the school aid computer listing
 produced by the commissioner in support of the enacted  budget  for  the
 2011-12 school year and entitled "SA111-2", or [(ii)] (B) the amount set
 forth  for such school district as "UNIVERSAL PREKINDERGARTEN" under the
 heading "2010-11 BASE YEAR AIDS" in  the  school  aid  computer  listing
 produced  by  the  commissioner  on  May  fifteenth, two thousand eleven
 pursuant to paragraph b  of  subdivision  twenty-one  of  section  three
 hundred  five  of this chapter, AND (V) FOR THE TWO THOUSAND SEVENTEEN--
 TWO THOUSAND EIGHTEEN SCHOOL YEAR, EACH SCHOOL DISTRICT SHALL BE  ELIGI-
 BLE  TO  RECEIVE  A  GRANT AMOUNT EQUAL TO THE SUM OF (A) THE AMOUNT SET
 FORTH FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN" UNDER  THE
 HEADING  "2016-17  ESTIMATED  AIDS"  IN  THE SCHOOL AID COMPUTER LISTING
 PRODUCED BY THE COMMISSIONER IN SUPPORT OF THE ENACTED  BUDGET  FOR  THE
 TWO  THOUSAND  SIXTEEN--TWO  THOUSAND SEVENTEEN SCHOOL YEAR AND ENTITLED
 "SA161-7" PLUS (B) THE AMOUNT AWARDED TO SUCH SCHOOL  DISTRICT  FOR  THE
 PRIORITY  FULL-DAY PREKINDERGARTEN AND EXPANDED HALF-DAY PREKINDERGARTEN
 GRANT PROGRAM FOR HIGH NEED STUDENTS FOR THE TWO  THOUSAND  SIXTEEN--TWO

 S. 2009--C                         322                        A. 3009--C
 
 THOUSAND  SEVENTEEN  SCHOOL  YEAR PURSUANT TO CHAPTER FIFTY-THREE OF THE
 LAWS OF TWO THOUSAND THIRTEEN, AND (VI) FOR THE TWO THOUSAND  EIGHTEEN--
 TWO  THOUSAND NINETEEN SCHOOL YEAR, EACH SCHOOL DISTRICT SHALL BE ELIGI-
 BLE  TO  RECEIVE  A  GRANT AMOUNT EQUAL TO THE SUM OF (A) THE AMOUNT SET
 FORTH FOR SUCH SCHOOL DISTRICT AS  "UNIVERSAL  PREKINDERGARTEN"  IN  THE
 SCHOOL  AID  COMPUTER LISTING PRODUCED BY THE COMMISSIONER IN SUPPORT OF
 THE ENACTED BUDGET FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
 SCHOOL YEAR PLUS (B) THE AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR  THE
 FEDERAL  PRESCHOOL  DEVELOPMENT  EXPANSION  GRANT  FOR  THE TWO THOUSAND
 SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR PURSUANT  TO  THE  AMERICAN
 RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA), SECTIONS 14005, 14006, AND
 14013,  TITLE XIV, (PUBLIC LAW 112-10), AS AMENDED BY SECTION 1832(B) OF
 DIVISION B OF THE DEPARTMENT OF DEFENSE AND FULL-YEAR CONTINUING  APPRO-
 PRIATIONS  ACT,  2011  (PUB. L. 112-10), AND THE DEPARTMENT OF EDUCATION
 APPROPRIATIONS ACT, 2012 (TITLE III DIVISION F OF PUB.  L.  112-74,  THE
 CONSOLIDATED  APPROPRIATIONS  ACT, 2012), AND (VII) FOR THE TWO THOUSAND
 NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR, EACH SCHOOL DISTRICT SHALL BE
 ELIGIBLE TO RECEIVE A GRANT AMOUNT EQUAL TO THE SUM OF  (A)  THE  AMOUNT
 SET  FORTH  FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN ALLO-
 CATION" ON THE COMPUTER FILE PRODUCED BY THE COMMISSIONER IN SUPPORT  OF
 THE  ENACTED BUDGET FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
 SCHOOL YEAR PLUS (B) THE AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR  THE
 EXPANDED  PREKINDERGARTEN  PROGRAM  FOR THREE AND FOUR YEAR-OLDS FOR THE
 TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN  SCHOOL  YEAR  PURSUANT  TO
 CHAPTER  SIXTY-ONE  OF  THE  LAWS  OF  TWO THOUSAND FIFTEEN PLUS (C) THE
 AMOUNT AWARDED TO SUCH SCHOOL DISTRICT FOR THE EXPANDED  PREKINDERGARTEN
 FOR  THREE-YEAR-OLDS IN HIGH NEED DISTRICTS PROGRAM FOR THE TWO THOUSAND
 EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR PURSUANT TO  CHAPTER  FIFTY-
 THREE OF THE LAWS OF TWO THOUSAND SIXTEEN PLUS (D) THE AMOUNT AWARDED TO
 SUCH SCHOOL DISTRICT FOR THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE-
 AND  FOUR-YEAR-OLDS FOR THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
 SCHOOL YEAR PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND  SEVENTEEN
 PLUS  (E)  THE  AMOUNT  AWARDED  TO  SUCH SCHOOL DISTRICT, SUBJECT TO AN
 AVAILABLE APPROPRIATION, THROUGH THE  PRE-KINDERGARTEN  EXPANSION  GRANT
 FOR  THE  TWO  THOUSAND  EIGHTEEN--TWO  THOUSAND  NINETEEN  SCHOOL YEAR,
 PROVIDED THAT SUCH SCHOOL DISTRICT HAS MET ALL REQUIREMENTS PURSUANT  TO
 THIS SECTION, AND (VIII) FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWEN-
 TY-ONE  SCHOOL YEAR AND THEREAFTER, EACH SCHOOL DISTRICT SHALL BE ELIGI-
 BLE TO RECEIVE A GRANT AMOUNT EQUAL TO THE SUM OF  (A)  THE  AMOUNT  SET
 FORTH FOR SUCH SCHOOL DISTRICT AS "UNIVERSAL PREKINDERGARTEN ALLOCATION"
 ON  THE  COMPUTER  FILE  PRODUCED  BY THE COMMISSIONER IN SUPPORT OF THE
 ENACTED BUDGET FOR THE PRIOR YEAR PLUS (B) THE AMOUNT  AWARDED  TO  SUCH
 SCHOOL  DISTRICT,  SUBJECT  TO  AN  AVAILABLE APPROPRIATION, THROUGH THE
 PRE-KINDERGARTEN EXPANSION GRANT FOR THE PRIOR YEAR, PROVIDED THAT  SUCH
 SCHOOL  DISTRICT  HAS MET ALL REQUIREMENTS PURSUANT TO THIS SECTION, and
 provided further that the maximum grant shall not exceed the total actu-
 al grant expenditures incurred by the school  district  in  the  current
 school year as approved by the commissioner.
   a.  Each  school district shall be eligible to [receive a grant amount
 equal to the sum of (i) its prekindergarten aid base plus (ii) the prod-
 uct of its selected aid per  prekindergarten  pupil  multiplied  by  the
 positive  difference,  if  any  of the number of aidable prekindergarten
 pupils served in the current year, as determined pursuant to regulations
 of the commissioner, less the base aidable prekindergarten pupils calcu-
 lated pursuant to this subdivision for the two thousand seven--two thou-
 sand eight school year, based on data on file for the school aid comput-

 S. 2009--C                         323                        A. 3009--C

 er listing produced by the commissioner in support of the enacted budget
 for the two thousand seven--two thousand eight school year and  entitled
 "SA070-8".  Provided, however, that in computing an apportionment pursu-
 ant to this paragraph, for districts where the number of aidable prekin-
 dergarten  pupils  served is less than the number of unserved prekinder-
 garten pupils, such grant  amount  shall  be  the  lesser  of  such  sum
 computed  pursuant  to this paragraph or the maximum allocation computed
 pursuant to subdivision nine of this section] SERVE THE SUM OF (I) FULL-
 DAY PREKINDERGARTEN PUPILS PLUS (II) HALF-DAY PREKINDERGARTEN PUPILS.
   b. For purposes of paragraph a of this subdivision:
   (i) "Selected aid per prekindergarten pupil" shall equal  the  greater
 of  (A)  the  product  of five-tenths and the school district's selected
 foundation aid for the current year, or (B) the aid per  prekindergarten
 pupil  calculated pursuant to this subdivision for the two thousand six-
 two thousand seven school year, based on data on file for the school aid
 computer listing produced by the commissioner in support of the  enacted
 budget  for  the  two  thousand  six--two thousand seven school year and
 entitled "SA060-7"; provided, however, that in the two thousand  eight--
 two thousand nine school year, a city school district in a city having a
 population  of  one million inhabitants or more shall not be eligible to
 select aid per prekindergarten pupil pursuant  to  clause  (A)  of  this
 subparagraph;
   (ii)  ["Base aidable prekindergarten pupils". "Base aidable prekinder-
 garten pupils" shall equal the sum of the base  aidable  prekindergarten
 pupils  calculated pursuant to this subdivision for the base year, based
 on data on file for the school aid  computer  listing  produced  by  the
 commissioner  in  support  of the enacted budget for the base year, plus
 the additional aidable prekindergarten  pupils  calculated  pursuant  to
 this subdivision for the base year, based on data on file for the school
 aid  computer  listing  produced  by  the commissioner in support of the
 enacted budget for the base  year;]  "FULL-DAY  PREKINDERGARTEN  PUPILS"
 SHALL EQUAL:
   FOR  THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THE
 SUM OF, FROM THE PRIORITY  FULL-DAY  PREKINDERGARTEN  PROGRAM,  (A)  THE
 MAXIMUM  AIDABLE  PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE IN THE BASE
 YEAR PLUS (B) THE MAXIMUM AIDABLE  NUMBER  OF  HALF-DAY  PREKINDERGARTEN
 PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL IN THE BASE YEAR;
   FOR  THE  TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR THE
 SUM OF, FROM EACH OF (A) THE PROGRAMS PURSUANT TO THIS SECTION  AND  (B)
 THE FEDERAL PRESCHOOL DEVELOPMENT EXPANSION GRANT, (1) THE MAXIMUM AIDA-
 BLE  FULL-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGIBLE TO SERVE
 IN THE BASE YEAR PLUS (2) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKIN-
 DERGARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL IN  THE
 BASE YEAR;
   FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR THE SUM
 OF,  FROM  EACH  OF  (A)  THE PROGRAMS PURSUANT TO THIS SECTION, (B) THE
 EXPANDED PREKINDERGARTEN PROGRAM, (C) THE EXPANDED  PREKINDERGARTEN  FOR
 THREE-YEAR-OLDS, (D) THE EXPANDED PREKINDERGARTEN PROGRAM FOR THREE- AND
 FOUR-YEAR-OLDS,  AND  (E)  THE  PREKINDERGARTEN EXPANSION GRANT, (1) THE
 MAXIMUM AIDABLE FULL-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGI-
 BLE TO SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM  AIDABLE  NUMBER  OF
 HALF-DAY  PREKINDERGARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGAR-
 TEN PUPIL IN THE BASE YEAR;
   FOR THE TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL  YEAR  AND
 THEREAFTER  THE  SUM  OF, FROM EACH OF (A) THE PROGRAMS PURSUANT TO THIS
 SECTION AND (B) THE PRE-KINDERGARTEN EXPANSION GRANT,  (1)  THE  MAXIMUM

 S. 2009--C                         324                        A. 3009--C
 
 AIDABLE  FULL-DAY  PREKINDERGARTEN  PUPILS SUCH DISTRICT WAS ELIGIBLE TO
 SERVE IN THE BASE YEAR, PLUS (2) THE MAXIMUM AIDABLE NUMBER OF  HALF-DAY
 PREKINDERGARTEN  PUPILS  CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL
 IN THE BASE YEAR;
   (iii) "HALF-DAY PREKINDERGARTEN PUPILS" SHALL EQUAL:
   FOR  THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR THE
 SUM OF THE MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT
 WAS ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A) THE PROGRAM PURSUANT TO
 THIS SECTION PLUS SUCH PUPILS FROM (B) THE PRIORITY FULL-DAY  PREKINDER-
 GARTEN  PROGRAM,  LESS THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKINDER-
 GARTEN PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL UNDER  THE
 PRIORITY FULL-DAY PREKINDERGARTEN PROGRAM FOR THE BASE YEAR;
   FOR  THE  TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR THE
 MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS ELIGI-
 BLE TO SERVE FOR THE BASE YEAR FROM (A) THE  PROGRAM  PURSUANT  TO  THIS
 SECTION  LESS (B) THE MAXIMUM AIDABLE NUMBER OF HALF-DAY PREKINDERGARTEN
 PUPILS CONVERTED INTO A FULL-DAY PREKINDERGARTEN PUPIL UNDER THE FEDERAL
 PRESCHOOL DEVELOPMENT EXPANSION GRANT FOR THE BASE YEAR;
   FOR THE TWO THOUSAND NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR THE SUM
 OF THE MAXIMUM AIDABLE HALF-DAY PREKINDERGARTEN PUPILS SUCH DISTRICT WAS
 ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A)  THE  PROGRAM  PURSUANT  TO
 THIS  SECTION  PLUS  SUCH  PUPILS  FROM (B) THE EXPANDED PREKINDERGARTEN
 PROGRAM PLUS SUCH PUPILS  FROM  (C)  THE  EXPANDED  PREKINDERGARTEN  FOR
 THREE-YEAR-OLDS  PLUS  SUCH PUPILS FROM (D) THE EXPANDED PREKINDERGARTEN
 PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS  SUCH  PUPILS  FROM  (E)  THE
 PREKINDERGARTEN  EXPANSION  GRANT,  LESS  THE SUM OF THE MAXIMUM AIDABLE
 NUMBER OF HALF-DAY PREKINDERGARTEN  PUPILS  CONVERTED  INTO  A  FULL-DAY
 PREKINDERGARTEN  PUPIL  UNDER  EACH  OF (1) THE EXPANDED PREKINDERGARTEN
 PROGRAM PLUS SUCH PUPILS  FROM  (2)  THE  EXPANDED  PREKINDERGARTEN  FOR
 THREE-YEAR-OLDS  PLUS  SUCH PUPILS FROM (3) THE EXPANDED PREKINDERGARTEN
 PROGRAM FOR THREE- AND FOUR-YEAR-OLDS PLUS  SUCH  PUPILS  FROM  (4)  THE
 PREKINDERGARTEN EXPANSION GRANT FOR THE BASE YEAR;
   FOR  THE  TWO THOUSAND TWENTY--TWO THOUSAND TWENTY-ONE SCHOOL YEAR AND
 THEREAFTER THE SUM  OF  THE  MAXIMUM  AIDABLE  HALF-DAY  PREKINDERGARTEN
 PUPILS  SUCH  DISTRICT  WAS ELIGIBLE TO SERVE FOR THE BASE YEAR FROM (A)
 THE PROGRAM PURSUANT TO THIS SECTION PLUS SUCH PUPILS FROM (B) THE  PRE-
 KINDERGARTEN  EXPANSION  GRANT, LESS THE MAXIMUM AIDABLE NUMBER OF HALF-
 DAY PREKINDERGARTEN PUPILS CONVERTED  INTO  A  FULL-DAY  PREKINDERGARTEN
 PUPIL UNDER THE PREKINDERGARTEN EXPANSION GRANT FOR THE BASE YEAR;
   (IV)  "Unserved  prekindergarten  pupils"  shall  mean  the product of
 eighty-five percent multiplied  by  the  positive  difference,  if  any,
 between the sum of the public school enrollment and the nonpublic school
 enrollment  of  children  attending  full  day and half day kindergarten
 programs in the district in the year prior to the  base  year  less  the
 number  of  resident children who attain the age of four before December
 first of the base year, who were served during such  school  year  by  a
 prekindergarten  program approved pursuant to section forty-four hundred
 ten of this chapter, where such services are provided for more than four
 hours per day;
   [(iv) "Additional aidable prekindergarten pupils". For the  two  thou-
 sand  seven--two thousand eight through two thousand eight--two thousand
 nine school years, "additional  aidable  prekindergarten  pupils"  shall
 equal  the  product  of  (A)  the  positive  difference,  if any, of the
 unserved prekindergarten pupils less the  base  aidable  prekindergarten
 pupils multiplied by (B) the prekindergarten phase-in factor;

 S. 2009--C                         325                        A. 3009--C

   (v)  the  "prekindergarten aid base" shall mean the sum of the amounts
 the school district received for  the  two  thousand  six--two  thousand
 seven  school  year  for grants awarded pursuant to this section and for
 targeted prekindergarten grants;
   (vi)  The  "prekindergarten  phase-in  factor".  For  the two thousand
 eight--two thousand  nine  school  year,  the  prekindergarten  phase-in
 factor  shall  equal  the positive difference, if any, of the pupil need
 index computed pursuant to subparagraph three of paragraph a of subdivi-
 sion four of section thirty-six hundred  two  of  this  part  less  one,
 provided,  however,  that:  (A)  for  any district where (1) the maximum
 allocation computed pursuant to subdivision nine of this section for the
 base year is greater than zero and (2) the amount allocated pursuant  to
 this subdivision for the base year, based on data on file for the school
 aid  computer listing produced by the commissioner on February fifteenth
 of the base year, pursuant to paragraph b of subdivision  twenty-one  of
 section three hundred five of this chapter, is greater than the positive
 difference,  if  any,  of such maximum allocation for the base year less
 twenty-seven hundred, the  prekindergarten  phase-in  factor  shall  not
 exceed eighteen percent, and shall not be less than ten percent, and (B)
 for  any  district  not  subject to the provisions of clause (A) of this
 subparagraph where (1) the amount allocated pursuant to this subdivision
 for the base year is equal to zero or (2) the amount allocated  pursuant
 to  this section for the base year, based on data on file for the school
 aid computer listing produced by the commissioner on February  fifteenth
 of  the  base year, pursuant to paragraph b of subdivision twenty-one of
 section three hundred five of this chapter, is less than or equal to the
 amount allocated pursuant to this section for the year prior to the base
 year, based on data on file for the school aid computer listing produced
 by the commissioner on February fifteenth of the base year, pursuant  to
 paragraph  b  of subdivision twenty-one of section three hundred five of
 this chapter, the prekindergarten phase-in factor shall equal zero,  and
 (C)  for any district not subject to the provisions of clause (A) or (B)
 of this subparagraph, the  prekindergarten  phase-in  factor  shall  not
 exceed thirteen percent, and shall not be less than seven percent;
   (vii)  "Base  year"  shall  mean  the base year as defined pursuant to
 subdivision one of section thirty-six hundred two of this part.]
   (V) "PREKINDERGARTEN MAINTENANCE OF EFFORT BASE" SHALL MEAN THE NUMBER
 OF ELIGIBLE TOTAL FULL-DAY PREKINDERGARTEN  PUPILS  SET  FORTH  FOR  THE
 DISTRICT IN THIS PARAGRAPH PLUS THE PRODUCT OF ONE HALF (0.5) MULTIPLIED
 BY  THE  NUMBER  OF  ELIGIBLE  TOTAL HALF-DAY PREKINDERGARTEN PUPILS SET
 FORTH FOR THE DISTRICT IN THIS PARAGRAPH;
   (VI) "CURRENT YEAR PREKINDERGARTEN PUPILS SERVED" SHALL MEAN  THE  SUM
 OF  FULL  DAY PREKINDERGARTEN PUPILS SERVED IN THE CURRENT YEAR PLUS THE
 PRODUCT OF ONE HALF (0.5) MULTIPLIED BY  THE  HALF  DAY  PREKINDERGARTEN
 PUPILS IN THE CURRENT YEAR LESS THE HALF-DAY CONVERSION OVERAGE;
   (VII)  "HALF-DAY  CONVERSION  OVERAGE" SHALL EQUAL, FOR DISTRICTS THAT
 SERVE GREATER THAN THIRTY PERCENT FEWER FULL-DAY PREKINDERGARTEN  PUPILS
 DURING THE CURRENT YEAR THAN THE NUMBER OF TOTAL ELIGIBLE FULL-DAY PREK-
 INDERGARTEN PUPILS SET FORTH FOR THE DISTRICT IN PARAGRAPH B OF SUBDIVI-
 SION  TEN  OF THIS SECTION DUE TO THE CONVERSION OF FULL-DAY TO HALF-DAY
 SLOTS, THE DIFFERENCE OF THE PRODUCT OF SEVEN-TENTHS MULTIPLIED  BY  THE
 TOTAL ELIGIBLE FULL-DAY PREKINDERGARTEN PUPILS ROUNDED DOWN TO THE NEAR-
 EST  WHOLE  NUMBER,  LESS  THE NUMBER OF FULL-DAY PREKINDERGARTEN PUPILS
 ACTUALLY SERVED. PROVIDED THAT A DISTRICT MAY APPLY TO THE  COMMISSIONER
 FOR  A  HARDSHIP WAIVER THAT WOULD ALLOW A DISTRICT TO CONVERT MORE THAN
 THIRTY PERCENT OF FULL-DAY PREKINDERGARTEN SLOTS TO HALF-DAY  SLOTS  AND

 S. 2009--C                         326                        A. 3009--C
 
 RECEIVE  FUNDING  FOR  SUCH  SLOTS.  SUCH WAIVER SHALL BE GRANTED UPON A
 DEMONSTRATION BY THE SCHOOL DISTRICT THAT DUE TO A SIGNIFICANT CHANGE IN
 THE RESOURCES AVAILABLE TO THE SCHOOL DISTRICT AND ABSENT  A  WAIVER  TO
 ALLOW  THE CONVERSION OF MORE THAN THIRTY PERCENT OF FULL-DAY PREKINDER-
 GARTEN SLOTS TO HALF-DAY SLOTS, THE SCHOOL DISTRICT WOULD BE  UNABLE  TO
 SERVE  SUCH  PUPILS IN PREKINDERGARTEN PROGRAMS, WITHOUT CAUSING SIGNIF-
 ICANT DISRUPTION TO OTHER DISTRICT PROGRAMMING;
   (VIII) "MAINTENANCE OF EFFORT FACTOR" SHALL MEAN THE QUOTIENT  ARRIVED
 AT  WHEN  DIVIDING THE CURRENT YEAR PREKINDERGARTEN PUPILS SERVED BY THE
 PREKINDERGARTEN MAINTENANCE OF EFFORT BASE.
   FOR THE PURPOSES OF THIS PARAGRAPH:
   (A) "PRIORITY FULL-DAY PREKINDERGARTEN PROGRAM" SHALL MEAN THE PRIORI-
 TY FULL-DAY PREKINDERGARTEN AND EXPANDED HALF-DAY PREKINDERGARTEN  GRANT
 PROGRAM  FOR  HIGH  NEED STUDENTS PURSUANT TO CHAPTER FIFTY-THREE OF THE
 LAWS OF TWO THOUSAND THIRTEEN;
   (B)"FEDERAL PRESCHOOL DEVELOPMENT  EXPANSION  GRANT"  SHALL  MEAN  THE
 FEDERAL  PRESCHOOL  DEVELOPMENT EXPANSION GRANT PURSUANT TO THE AMERICAN
 RECOVERY AND REINVESTMENT ACT OF 2009 (ARRA), SECTIONS 14005, 14006, AND
 14013, TITLE XIV, (PUBLIC LAW 112-10), AS AMENDED BY SECTION 1832(B)  OF
 DIVISION  B OF THE DEPARTMENT OF DEFENSE AND FULL-YEAR CONTINUING APPRO-
 PRIATIONS ACT, 2011 (PUB.  L. 112-10), AND THE DEPARTMENT  OF  EDUCATION
 APPROPRIATIONS  ACT,  2012  (TITLE III DIVISION F OF PUB. L. 112-74, THE
 CONSOLIDATED APPROPRIATIONS ACT, 2012);
   (C) "EXPANDED PREKINDERGARTEN PROGRAM" SHALL MEAN THE EXPANDED PREKIN-
 DERGARTEN PROGRAM FOR THREE- AND  FOUR  YEAR-OLDS  PURSUANT  TO  CHAPTER
 SIXTY-ONE OF THE LAWS OF TWO THOUSAND FIFTEEN;
   (D)  "EXPANDED  PREKINDERGARTEN  FOR  THREE-YEAR-OLDS"  SHALL MEAN THE
 EXPANDED PREKINDERGARTEN FOR  THREE-YEAR-OLDS  IN  HIGH  NEED  DISTRICTS
 PROGRAM  PURSUANT  TO  CHAPTER  FIFTY-THREE  OF THE LAWS OF TWO THOUSAND
 SIXTEEN;
   (E) "EXPANDED PREKINDERGARTEN PROGRAM FOR THREE-  AND  FOUR-YEAR-OLDS"
 SHALL  MEAN  THE  EXPANDED  PREKINDERGARTEN PROGRAM FOR THREE- AND FOUR-
 YEAR-OLDS PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN;
   (F) "PREKINDERGARTEN EXPANSION GRANT" SHALL MEAN  THE  PREKINDERGARTEN
 EXPANSION  GRANT  FOR  THE  TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
 SCHOOL YEAR AND THEREAFTER, TO THE EXTENT  SUCH  PROGRAM  WAS  AVAILABLE
 SUBJECT TO APPROPRIATION, AND PROVIDED THAT SUCH SCHOOL DISTRICT HAS MET
 ALL REQUIREMENTS PURSUANT TO THIS SECTION.
   c.  Notwithstanding  any  other  provision  of this section, the total
 grant payable pursuant to this section shall equal the  lesser  of:  (i)
 the  total  grant  amounts computed pursuant to this subdivision for the
 current year, based on data on file with the commissioner as of  Septem-
 ber  first  of  the  school year immediately following or (ii) the total
 actual grant expenditures incurred by the school district as approved by
 the commissioner.
   D. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, APPORTIONMENTS
 UNDER THIS SECTION GREATER THAN THE AMOUNTS PROVIDED IN THE TWO THOUSAND
 SIXTEEN--TWO THOUSAND SEVENTEEN  SCHOOL  YEAR  SHALL  ONLY  BE  USED  TO
 SUPPLEMENT AND NOT SUPPLANT CURRENT LOCAL EXPENDITURES OF STATE OR LOCAL
 FUNDS  ON  PREKINDERGARTEN  PROGRAMS  AND  THE  NUMBER  OF SLOTS IN SUCH
 PROGRAMS FROM SUCH SOURCES. CURRENT LOCAL EXPENDITURES SHALL INCLUDE ANY
 LOCAL EXPENDITURES OF STATE OR LOCAL FUNDS USED TO SUPPLEMENT OR  EXTEND
 SERVICES PROVIDED DIRECTLY OR VIA CONTRACT TO ELIGIBLE CHILDREN ENROLLED
 IN A UNIVERSAL PREKINDERGARTEN PROGRAM PURSUANT TO THIS SECTION.

 S. 2009--C                         327                        A. 3009--C
 
   §  27.  Subdivision  11  of  section  3602-e  of the education law, as
 amended by section 10-b of part A of chapter 57 of the laws of 2012,  is
 amended to read as follows:
   11.  [Notwithstanding  the  provisions  of  subdivision  ten  of  this
 section, where the district serves fewer  children  during  the  current
 year than the lesser of the children served in the two thousand ten--two
 thousand  eleven  school year or its base aidable prekindergarten pupils
 computed for the two thousand seven--two thousand eight school year, the
 school district shall  have  its  apportionment  reduced  in  an  amount
 proportional to such deficiency in the current year or in the succeeding
 school  year,  as  determined by the commissioner, except such reduction
 shall not apply to school  districts  which  have  fully  implemented  a
 universal  pre-kindergarten  program by making such program available to
 all eligible children. Expenses  incurred  by  the  school  district  in
 implementing  a  pre-kindergarten program plan pursuant to this subdivi-
 sion shall be  deemed  ordinary  contingent  expenses.]  MAINTENANCE  OF
 EFFORT REDUCTION. WHERE A SCHOOL DISTRICT'S CURRENT YEAR PREKINDERGARTEN
 PUPILS  SERVED  IS  LESS  THAN ITS PREKINDERGARTEN MAINTENANCE OF EFFORT
 BASE, THE SCHOOL DISTRICT SHALL  HAVE  ITS  CURRENT  YEAR  APPORTIONMENT
 REDUCED  BY  THE PRODUCT OF THE MAINTENANCE OF EFFORT FACTOR COMPUTED IN
 PARAGRAPH B OF SUBDIVISION TEN OF THIS SECTION MULTIPLIED BY  THE  GRANT
 AMOUNT  IT  WAS  ELIGIBLE TO RECEIVE PURSUANT TO SUBDIVISION TEN OF THIS
 SECTION.
   § 28. Paragraphs b and f of subdivision 12 of section  3602-e  of  the
 education  law,  as amended by section 19 of part B of chapter 57 of the
 laws of 2007, are amended to read as follows:
   b. [minimum] curriculum standards [that] CONSISTENT WITH THE NEW  YORK
 STATE  PREKINDERGARTEN  EARLY  LEARNING  STANDARDS  TO  ensure that such
 programs have strong instructional content that is integrated  with  the
 school  district's instructional program in grades kindergarten [though]
 THROUGH twelve;
   f. time requirements which reflect the needs of the individual  school
 districts  for  flexibility,  but meeting a minimum weekly time require-
 ment; PROVIDED, HOWEVER, THAT THE MINIMUM WEEKLY  TIME  REQUIREMENT  FOR
 FULL-DAY  PROGRAMS  SHALL  BE  TWENTY-FIVE HOURS, AND THE WEEKLY MINIMUM
 TIME REQUIREMENT FOR HALF-DAY PROGRAMS  SHALL  BE  TWELVE  AND  ONE-HALF
 HOURS;
   §  28-a. Paragraphs d-1 and d-2 of subdivision 12 of section 3602-e of
 the education law, as amended by section 10-c of part A of chapter 57 of
 the laws of 2012, are amended to read as follows:
   d-1. guidelines which allow personnel employed by an  eligible  agency
 that  is collaborating with a school district to provide prekindergarten
 services and licensed by an agency other than the  department,  to  meet
 the  staff  qualifications  prescribed  by  the licensing or registering
 agency; provided however, a written plan is established  for  prekinder-
 garten  teachers  to  obtain  a  certificate  valid for service in early
 childhood grades within five years after commencing  employment,  or  by
 June  thirtieth,  two  thousand  [seventeen] TWENTY, whichever is later,
 PROVIDED THAT DISTRICTS MUST SUBMIT A REPORT TO THE COMMISSIONER REGARD-
 ING (I) BARRIERS TO CERTIFICATION, IF ANY, (II) THE NUMBER  OF  UNCERTI-
 FIED TEACHERS TEACHING PRE-KINDERGARTEN IN THE DISTRICT, INCLUDING THOSE
 EMPLOYED BY A COMMUNITY-BASED ORGANIZATION, (III) HOW LONG SUCH TEACHERS
 HAVE  BEEN EMPLOYED UNDER TRANSITIONAL GUIDELINES, AND (IV) THE EXPECTED
 CERTIFICATION COMPLETION DATE OF SUCH TEACHERS; PROVIDED FURTHER THAT BY
 FEBRUARY FIRST, TWO THOUSAND EIGHTEEN, THE  COMMISSIONER  SHALL  APPROVE
 AND  SUBMIT  TO  THE CHAIRS OF THE ASSEMBLY WAYS AND MEANS COMMITTEE AND

 S. 2009--C                         328                        A. 3009--C
 
 THE SENATE FINANCE COMMITTEE AND TO THE DIRECTOR OF THE BUDGET A  REPORT
 CONTAINING THE INFORMATION PURSUANT TO THIS PARAGRAPH;
   d-2.  guidelines  which allow personnel employed by an eligible agency
 that is collaborating with a school district to provide  prekindergarten
 services and not licensed or registered by the department or other agen-
 cy, to meet the staff qualifications prescribed by such eligible agency;
 provided  however,  a  written  plan  is established for prekindergarten
 teachers to obtain a certificate valid for service  in  early  childhood
 grades within five years after commencing employment, or by June thirti-
 eth,  two thousand [seventeen] TWENTY, whichever is later, PROVIDED THAT
 DISTRICTS MUST SUBMIT A REPORT TO THE COMMISSIONER REGARDING (I)  BARRI-
 ERS  TO  CERTIFICATION,  IF ANY, (II) THE NUMBER OF UNCERTIFIED TEACHERS
 TEACHING PRE-KINDERGARTEN IN THE DISTRICT, INCLUDING THOSE EMPLOYED BY A
 COMMUNITY-BASED ORGANIZATION, (III) HOW LONG  SUCH  TEACHERS  HAVE  BEEN
 EMPLOYED  UNDER  TRANSITIONAL  GUIDELINES, AND (IV) THE EXPECTED CERTIF-
 ICATION COMPLETION DATE OF  SUCH  TEACHERS;  PROVIDED  FURTHER  THAT  BY
 FEBRUARY  FIRST,  TWO  THOUSAND EIGHTEEN, THE COMMISSIONER SHALL APPROVE
 AND SUBMIT TO THE CHAIRS OF THE ASSEMBLY WAYS AND  MEANS  COMMITTEE  AND
 THE  SENATE FINANCE COMMITTEE AND TO THE DIRECTOR OF THE BUDGET A REPORT
 CONTAINING THE INFORMATION PURSUANT TO THIS PARAGRAPH;
   § 28-b. Subdivision 4 of section 51 of part B of  chapter  57  of  the
 laws  of  2008 amending the education law relating to the universal pre-
 kindergarten program, as amended by section 23 of part A of  chapter  57
 of the laws of 2012, is amended to read as follows:
   4.  section  [23]  TWENTY-THREE  of this act shall take effect July 1,
 2008 and shall expire and be deemed repealed June 30, [2017] 2020;
   § 29. Subdivision 14 of  section  3602-e  of  the  education  law,  as
 amended  by  section  19 of part B of chapter 57 of the laws of 2007, is
 amended to read as follows:
   14. On February fifteenth, two thousand, and annually thereafter,  the
 commissioner and the board of regents shall include in its annual report
 to  the  legislature  AND  THE GOVERNOR, information on school districts
 receiving grants under  this  section;  the  amount  of  each  grant;  a
 description of the program that each grant supports and an assessment by
 the  commissioner  of  the  extent to which the program meets measurable
 outcomes required by the grant program or regulations  of  such  commis-
 sioner;  and any other relevant information, WHICH SHALL INCLUDE BUT NOT
 BE LIMITED TO THE FOLLOWING:
   A. (I) THE TOTAL NUMBER OF STUDENTS SERVED IN  STATE-FUNDED  DISTRICT-
 OPERATED  PREKINDERGARTEN  PROGRAMS,  (II)  THE TOTAL NUMBER OF STUDENTS
 SERVED IN STATE-FUNDED COMMUNITY-BASED PREKINDERGARTEN  PROGRAMS,  (III)
 THE  TOTAL NUMBER OF STUDENTS SERVED IN STATE-FUNDED HALF-DAY PREKINDER-
 GARTEN PROGRAMS, AND (IV) THE TOTAL NUMBER OF STUDENTS SERVED IN  STATE-
 FUNDED FULL-DAY PREKINDERGARTEN PROGRAMS;
   B.  (I)  THE  TOTAL  NUMBER  OF  STUDENTS SERVED IN STATE, FEDERAL AND
 LOCALLY FUNDED  DISTRICT-OPERATED  PREKINDERGARTEN  PROGRAMS,  (II)  THE
 TOTAL  NUMBER  OF  STUDENTS  SERVED IN STATE, FEDERAL AND LOCALLY FUNDED
 COMMUNITY-BASED PREKINDERGARTEN PROGRAMS,  (III)  THE  TOTAL  NUMBER  OF
 STUDENTS SERVED IN STATE, FEDERAL AND LOCALLY FUNDED HALF-DAY PREKINDER-
 GARTEN  PROGRAMS, AND (IV) THE TOTAL NUMBER OF STUDENTS SERVED IN STATE,
 FEDERAL AND LOCALLY FUNDED FULL-DAY PREKINDERGARTEN PROGRAMS;
   C. THE TOTAL SPENDING ON PREKINDERGARTEN PROGRAMS FROM STATE, FEDERAL,
 AND LOCAL SOURCES;
   D. THE TOTAL NUMBER OF STUDENTS ON A DISTRICT WAIT LIST FOR A  PREKIN-
 DERGARTEN SLOT IN A STATE-FUNDED PREKINDERGARTEN PROGRAM; AND

 S. 2009--C                         329                        A. 3009--C
 
   E.  FOR  EACH  PROGRAM DESCRIBED IN SUBPARAGRAPHS (I), (II), (III) AND
 (IV) OF PARAGRAPH A OF THIS SUBDIVISION, AND  SUBPARAGRAPHS  (I),  (II),
 (III)  AND  (IV) OF PARAGRAPH B OF THIS SUBDIVISION, THE TOTAL NUMBER OF
 STUDENTS SERVED WITH DISABILITIES THAT HAVE AN INDIVIDUALIZED  EDUCATION
 PLAN  AND,  OF  THOSE, THE TOTAL NUMBER OF STUDENTS REQUIRING ANY OF THE
 FOLLOWING  APPROVED  SERVICES:  SPECIAL  EDUCATION  ITINERANT  SERVICES;
 SPECIAL  CLASS IN AN INTEGRATED SETTING; OR A SPECIAL CLASS. Such report
 shall also contain any recommendations to improve  or  otherwise  change
 the program.
   § 30. Section 3602-e of the education law is amended by adding two new
 subdivisions 17 and 18 to read as follows:
   17.  APPROVED  QUALITY INDICATORS. A SCHOOL DISTRICT RECEIVING FUNDING
 PURSUANT TO THIS SECTION SHALL AGREE TO ADOPT APPROVED  QUALITY  INDICA-
 TORS WITHIN TWO YEARS, INCLUDING, BUT NOT LIMITED TO, VALID AND RELIABLE
 MEASURES OF ENVIRONMENTAL QUALITY, THE QUALITY OF TEACHER-STUDENT INTER-
 ACTIONS AND CHILD OUTCOMES, AND ENSURE THAT ANY SUCH ASSESSMENT OF CHILD
 OUTCOMES SHALL NOT BE USED TO MAKE HIGH-STAKES EDUCATIONAL DECISIONS FOR
 INDIVIDUAL CHILDREN.
   18.  UNIVERSAL  PREKINDERGARTEN EXPANSION GRANTS. SUBJECT TO AVAILABLE
 APPROPRIATION, ANY ADDITIONAL FUNDING FOR PRE-KINDERGARTEN  IN  THE  TWO
 THOUSAND  EIGHTEEN--TWO  THOUSAND  NINETEEN  SCHOOL  YEAR AND THEREAFTER
 SHALL BE MADE  AVAILABLE  FOR  ADDITIONAL  GRANTS  FOR  PRE-KINDERGARTEN
 PROGRAMS.
   §  31.  Subdivision  16  of  section  3602-ee of the education law, as
 amended by section 23 of part A of chapter 54 of the laws  of  2016,  is
 amended to read as follows:
   16.  The authority of the department to administer the universal full-
 day pre-kindergarten program shall expire June thirtieth,  two  thousand
 [seventeen]  EIGHTEEN;  provided  that  the  program  shall continue and
 remain in full effect.
   § 31-a. Paragraph (c) of subdivision  8  of  section  3602-ee  of  the
 education  law,  as  added  by section 1 of part CC of chapter 56 of the
 laws of 2014, is amended to read as follows:
   (c) (I) for eligible agencies as defined in paragraph b of subdivision
 one of section thirty-six hundred  two-e  of  this  part  that  are  not
 schools,  a  bachelor's degree in early childhood education or a related
 field and a written plan to obtain a certification valid for service  in
 the early childhood grades as follows:
   [(i)]  (1)  for  teachers hired on or after the effective date of this
 section as the teacher for a universal full-day pre-kindergarten  class-
 room, within three years after commencing employment, at which time such
 certification shall be required for employment; and
   [(ii)]  (2) for teachers hired by such provider prior to the effective
 date of this section  for  other  early  childhood  care  and  education
 programs, no later than June thirtieth, two thousand seventeen, at which
 time such certification shall be required for employment.
   (II)  PROVIDED  THAT, NOTWITHSTANDING ANY PROVISIONS OF THIS PARAGRAPH
 TO THE CONTRARY, FOR THE TWO THOUSAND  SEVENTEEN-TWO  THOUSAND  EIGHTEEN
 SCHOOL  YEAR,  AN EXEMPTION TO THE CERTIFICATION REQUIREMENT OF SUBPARA-
 GRAPH (I) OF THIS PARAGRAPH MAY BE MADE FOR A  TEACHER  WITHOUT  CERTIF-
 ICATION  VALID FOR SERVICE IN THE EARLY CHILDHOOD GRADES WHO POSSESSES A
 WRITTEN PLAN TO OBTAIN CERTIFICATION  AND  WHO  HAS  REGISTERED  IN  THE
 ASPIRE  WORKFORCE  REGISTRY AS REQUIRED UNDER REGULATIONS OF THE COMMIS-
 SIONER OF THE OFFICE OF CHILDREN AND  FAMILY  SERVICES.  NOTWITHSTANDING
 ANY  EXEMPTION  PROVIDED  BY  THIS  SUBPARAGRAPH, CERTIFICATION SHALL BE

 S. 2009--C                         330                        A. 3009--C
 
 REQUIRED FOR EMPLOYMENT NO LATER THAN JUNE THIRTIETH, TWO THOUSAND EIGH-
 TEEN.
   §  31-b.  Section  3602-ee of the education law is amended by adding a
 new subdivision 17 to read as follows:
   17. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
 FOR THE PURPOSES OF DETERMINING THE PREKINDERGARTEN  ALLOCATION  ON  THE
 ELECTRONIC  DATA  FILE PREPARED BY THE COMMISSIONER PURSUANT TO SUBDIVI-
 SION TWENTY-ONE OF SECTION THREE HUNDRED FIVE OF THIS  CHAPTER  FOR  THE
 TWO  THOUSAND  NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND THEREAFTER,
 THE COMMISSIONER IS DIRECTED TO INCLUDE THE GRANT AMOUNTS AWARDED PURSU-
 ANT TO THIS SECTION IN THE AMOUNT SET FORTH FOR SUCH SCHOOL DISTRICT  AS
 "UNIVERSAL PRE-KINDERGARTEN."
   § 32. Subdivision 21 of section 305 of the education law is amended by
 adding a new paragraph d to read as follows:
   D.  NOTWITHSTANDING ANY INCONSISTENT PROVISION OF LAW TO THE CONTRARY,
 FOR THE PURPOSES OF (I)   DETERMINING THE BASE  YEAR  LEVEL  OF  GENERAL
 SUPPORT  FOR  PUBLIC SCHOOLS PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION
 FOR THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN  SCHOOL  YEAR  AND
 THEREAFTER,  THE  COMMISSIONER  IS  DIRECTED TO INCLUDE THE STATE-FUNDED
 GRANT AMOUNTS ALLOCATED PURSUANT TO SUBDIVISION TEN OF  SECTION  THIRTY-
 SIX  HUNDRED  TWO-E  OF  THIS CHAPTER WHERE SUCH STATE-FUNDED GRANTS HAD
 PREVIOUSLY BEEN ALLOCATED TO  DISTRICTS  BY  MEANS  OTHER  THAN  GENERAL
 SUPPORT  FOR  PUBLIC  SCHOOLS,  AND (II) FOR THE PURPOSES OF DETERMINING
 BOTH THE BASE YEAR AND CURRENT YEAR LEVELS OF GENERAL SUPPORT FOR PUBLIC
 SCHOOLS PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION FOR THE TWO THOUSAND
 NINETEEN--TWO THOUSAND TWENTY SCHOOL YEAR AND  THEREAFTER,  THE  COMMIS-
 SIONER  IS  ALSO  DIRECTED  TO INCLUDE GRANT AMOUNTS PURSUANT TO SECTION
 THIRTY-SIX HUNDRED TWO-EE OF THIS CHAPTER, PROVIDED THAT,  NOTWITHSTAND-
 ING  ANY  PROVISION OF LAW TO THE CONTRARY, SUCH BASE YEAR GRANT AMOUNTS
 SHALL NOT BE INCLUDED IN:  (1)  THE  ALLOWABLE  GROWTH  AMOUNT  COMPUTED
 PURSUANT  TO  PARAGRAPH  DD  OF  SUBDIVISION  ONE  OF SECTION THIRTY-SIX
 HUNDRED TWO OF THIS CHAPTER, (2) THE PRELIMINARY GROWTH AMOUNT  COMPUTED
 PURSUANT  TO  PARAGRAPH  FF  OF  SUBDIVISION  ONE  OF SECTION THIRTY-SIX
 HUNDRED TWO OF  THIS  CHAPTER,  AND  (3)  THE  ALLOCABLE  GROWTH  AMOUNT
 COMPUTED  PURSUANT TO PARAGRAPH GG OF SUBDIVISION ONE OF SECTION THIRTY-
 SIX HUNDRED TWO OF THIS CHAPTER, AND SHALL NOT BE CONSIDERED, AND  SHALL
 NOT  BE  AVAILABLE  FOR  INTERCHANGE  WITH,  GENERAL  SUPPORT FOR PUBLIC
 SCHOOLS.
   § 33. The opening paragraph of section 3609-a of the education law, as
 amended by section 10 of part A of chapter 54 of the laws  of  2016,  is
 amended to read as follows:
   For  aid  payable in the two thousand seven--two thousand eight school
 year through the two thousand [sixteen] SEVENTEEN--two thousand  [seven-
 teen]  EIGHTEEN  school year, "moneys apportioned" shall mean the lesser
 of (i) the sum of one hundred percent of the respective amount set forth
 for each school district as payable pursuant  to  this  section  in  the
 school aid computer listing for the current year produced by the commis-
 sioner in support of the budget which includes the appropriation for the
 general support for public schools for the prescribed payments and indi-
 vidualized  payments  due prior to April first for the current year plus
 the apportionment payable during the current  school  year  pursuant  to
 subdivision  six-a and subdivision fifteen of section thirty-six hundred
 two of this part minus any reductions to current year aids  pursuant  to
 subdivision seven of section thirty-six hundred four of this part or any
 deduction  from  apportionment  payable  pursuant  to  this  chapter for
 collection of a school district basic contribution as defined in  subdi-

 S. 2009--C                         331                        A. 3009--C
 
 vision eight of section forty-four hundred one of this chapter, less any
 grants  provided pursuant to subparagraph two-a of paragraph b of subdi-
 vision four of section ninety-two-c of the state finance law,  less  any
 grants provided pursuant to subdivision six of section ninety-seven-nnnn
 of  the state finance law, less any grants provided pursuant to subdivi-
 sion twelve of section thirty-six hundred forty-one of this article,  or
 (ii)  the  apportionment calculated by the commissioner based on data on
 file at the time the payment is processed; provided  however,  that  for
 the  purposes of any payments made pursuant to this section prior to the
 first business day of June of the current year, moneys apportioned shall
 not include any aids payable pursuant to subdivisions six and  fourteen,
 if applicable, of section thirty-six hundred two of this part as current
 year  aid for debt service on bond anticipation notes and/or bonds first
 issued in the current year or any aids payable for full-day kindergarten
 for the current year pursuant to subdivision nine of section  thirty-six
 hundred  two  of  this part. The definitions of "base year" and "current
 year" as set forth in subdivision one of section thirty-six hundred  two
 of  this  part  shall apply to this section. [For aid payable in the two
 thousand sixteen--two thousand seventeen school year, reference to  such
 "school aid computer listing for the current year" shall mean the print-
 outs  entitled  "SA161-7".]  FOR  AID PAYABLE IN THE TWO THOUSAND SEVEN-
 TEEN--TWO THOUSAND EIGHTEEN SCHOOL YEAR, REFERENCE TO SUCH  "SCHOOL  AID
 COMPUTER LISTING FOR THE CURRENT YEAR" SHALL MEAN THE PRINTOUTS ENTITLED
 "SA171-8".
   §  34.  Paragraph  b of subdivision 2 of section 3612 of the education
 law, as amended by section 26 of part A of chapter 54  of  the  laws  of
 2016, is amended to read as follows:
   b. Such grants shall be awarded to school districts, within the limits
 of funds appropriated therefor, through a competitive process that takes
 into  consideration  the  magnitude  of  any shortage of teachers in the
 school district, the number of teachers employed in the school  district
 who hold temporary licenses to teach in the public schools of the state,
 the  number of provisionally certified teachers, the fiscal capacity and
 geographic sparsity of the district, the  number  of  new  teachers  the
 school district intends to hire in the coming school year and the number
 of summer in the city student internships proposed by an eligible school
 district,  if applicable. Grants provided pursuant to this section shall
 be used only for the purposes enumerated in this section.  Notwithstand-
 ing any other provision of law to the contrary, a city  school  district
 in a city having a population of one million or more inhabitants receiv-
 ing a grant pursuant to this section may use no more than eighty percent
 of  such  grant  funds  for any recruitment, retention and certification
 costs associated with transitional certification of  teacher  candidates
 for  the  school  years  two thousand one--two thousand two through [two
 thousand sixteen--two thousand seventeen]  TWO  THOUSAND  SEVENTEEN--TWO
 THOUSAND EIGHTEEN.
   §  35.  Subdivision 6 of section 4402 of the education law, as amended
 by section 27 of part A of chapter 54 of the laws of 2016, is amended to
 read as follows:
   6. Notwithstanding any other law, rule or regulation to the  contrary,
 the  board  of  education of a city school district with a population of
 one hundred twenty-five thousand or more inhabitants shall be  permitted
 to  establish  maximum  class  sizes  for  special  classes  for certain
 students with disabilities in accordance with  the  provisions  of  this
 subdivision. For the purpose of obtaining relief from any adverse fiscal
 impact  from under-utilization of special education resources due to low

 S. 2009--C                         332                        A. 3009--C
 
 student attendance in  special  education  classes  at  the  middle  and
 secondary level as determined by the commissioner, such boards of educa-
 tion  shall, during the school years nineteen hundred ninety-five--nine-
 ty-six  through June thirtieth, two thousand [seventeen] EIGHTEEN of the
 [two thousand sixteen--two thousand seventeen] TWO THOUSAND  SEVENTEEN--
 TWO THOUSAND EIGHTEEN school year, be authorized to increase class sizes
 in special classes containing students with disabilities whose age rang-
 es  are  equivalent to those of students in middle and secondary schools
 as defined by the commissioner for purposes of this section by up to but
 not to exceed one and two tenths times the applicable maximum class size
 specified in regulations of the commissioner rounded up to  the  nearest
 whole  number,  provided  that  in a city school district having a popu-
 lation of one million or more, classes that have a maximum class size of
 fifteen may be increased by no more than one student and  provided  that
 the  projected average class size shall not exceed the maximum specified
 in the applicable regulation, provided  that  such  authorization  shall
 terminate  on  June thirtieth, two thousand. Such authorization shall be
 granted upon filing of a notice by such a board of  education  with  the
 commissioner  stating the board's intention to increase such class sizes
 and a certification that the board will conduct a  study  of  attendance
 problems  at  the secondary level and will implement a corrective action
 plan to increase the rate of attendance of students in such  classes  to
 at  least  the  rate for students attending regular education classes in
 secondary schools of the district. Such corrective action plan shall  be
 submitted  for  approval by the commissioner by a date during the school
 year in which such board increases class sizes as provided  pursuant  to
 this  subdivision  to  be  prescribed by the commissioner. Upon at least
 thirty days notice to the board of education, after  conclusion  of  the
 school year in which such board increases class sizes as provided pursu-
 ant  to this subdivision, the commissioner shall be authorized to termi-
 nate such authorization upon a finding that  the  board  has  failed  to
 develop or implement an approved corrective action plan.
   §  36.  Hendrick  Hudson  central  school  district  energy system tax
 stabilization reserve fund. (a) Definitions. As used in this section:
   (i) "Board of education" or "board" means the board  of  education  of
 the Hendrick Hudson central school district.
   (ii)  "Energy  system tax stabilization reserve fund" means the energy
 system tax stabilization fund established pursuant to this section.
   (iii) "School  district"  or  "district"  means  the  Hendrick  Hudson
 central school district.
   (b) The board of education is hereby authorized to establish an energy
 system  tax stabilization reserve fund to lessen or prevent increases in
 the school district's real property tax levy resulting from decreases in
 revenue due to the closure of  the  Indian  Point  nuclear  power  plant
 provided,  however,  that  no  such  fund  shall  be  established unless
 approved by a majority vote of the voters present and voting on a  sepa-
 rate  ballot  proposition  therefor at either a special district meeting
 which the board of education may call for such purpose or at the  annual
 district  meeting  and  election,  to be noticed and conducted in either
 case in accordance with article 41 of the education law.  Such  separate
 proposition shall set forth the maximum allowable balance to be deposit-
 ed and held in the energy system tax stabilization reserve fund.  Moneys
 shall  be  paid  into  and withdrawn from the fund and the fund shall be
 administered as follows:
   (i) The board of education is hereby authorized to make payments  into
 the  energy  system  tax  stabilization reserve fund in an amount not to

 S. 2009--C                         333                        A. 3009--C

 exceed the balance over any maximum allowable balance in the  district's
 unassigned  fund  balance  and  from  any  reserve  funds  authorized or
 required by law in amounts which the board of education shall  determine
 are  not  reasonably necessary for the purpose of such fund or funds and
 which accrued prior to  the  establishment  of  the  energy  system  tax
 stabilization reserve fund, provided that no such payment from any unas-
 signed  fund  balance or any reserve fund shall cause the balance of the
 energy system tax  stabilization  reserve  fund  to  exceed  the  amount
 approved in the ballot proposal pursuant to this section.
   (ii)  Moneys may be withdrawn from the energy system tax stabilization
 reserve fund for any fiscal year to be expended for any lawful  purpose.
 Withdrawals from the fund shall be disclosed in a manner consistent with
 the  required disclosures of similar reserve funds held by the district,
 including disclosures required by the property tax report card  prepared
 by  the  district pursuant to the provisions of subdivision 7 of section
 1716 of the education law; and deposits and  withdrawals  made  in  each
 fiscal  year  shall  be subject to the district's annual budget approval
 process.
   § 37. Subparagraph (i) of paragraph a of  subdivision  10  of  section
 4410  of the education law is amended by adding a new clause (D) to read
 as follows:
   (D) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION  TO
 THE  CONTRARY,  COMMENCING  WITH THE TWO THOUSAND EIGHTEEN--TWO THOUSAND
 NINETEEN  SCHOOL  YEAR,  APPROVED  PRESCHOOL  INTEGRATED  SPECIAL  CLASS
 PROGRAMS  SHALL  BE REIMBURSED FOR SUCH SERVICES BASED ON AN ALTERNATIVE
 METHODOLOGY FOR REIMBURSEMENT TO BE ESTABLISHED BY THE COMMISSIONER.  IN
 DEVELOPING SUCH METHODOLOGY  THE  COMMISSIONER  SHALL  SEEK  INPUT  FROM
 STAKEHOLDERS  THAT  WOULD  BE  IMPACTED BY SUCH ALTERNATIVE METHODOLOGY.
 THE ALTERNATIVE METHODOLOGY, SUBJECT TO THE APPROVAL OF THE DIRECTOR  OF
 THE  BUDGET,  SHALL  BE  PROPOSED  BY THE DEPARTMENT NO LATER THAN APRIL
 FIRST, TWO THOUSAND EIGHTEEN.
   § 38. Subdivision a of section 5 of chapter 121 of the laws  of  1996,
 relating  to  authorizing  the  Roosevelt  union free school district to
 finance deficits by the issuance of serial bonds, as amended by  section
 44  of  part  A of chapter 54 of the laws of 2016, is amended to read as
 follows:
   a. Notwithstanding any other provisions of law,  upon  application  to
 the  commissioner of education submitted not sooner than April first and
 not later than June thirtieth of the applicable school year, the  Roose-
 velt  union  free school district shall be eligible to receive an appor-
 tionment pursuant to this chapter for salary expenses, including related
 benefits, incurred between April first and June thirtieth of such school
 year.  Such apportionment shall not exceed: for the 1996-97 school  year
 through   the  [2016-17]  2017-18  school  year,  four  million  dollars
 ($4,000,000); for the  [2017-18]  2018-19  school  year,  three  million
 dollars ($3,000,000); for the [2018-19] 2019-20 school year, two million
 dollars ($2,000,000); for the [2019-20] 2020-21 school year, one million
 dollars  ($1,000,000);  and  for the [2020-21] 2021-22 school year, zero
 dollars.   Such annual application shall be  made  after  the  board  of
 education  has  adopted  a  resolution to do so with the approval of the
 commissioner of education.
   § 39. Subparagraph (ii) of paragraph (a) of subdivision 9  of  section
 103  of  the general municipal law, as amended by chapter 62 of the laws
 of 2016, is amended to read as follows:
   (ii) such association of producers or growers is comprised  of  owners
 of farms who also operate such farms and have combined to fill the order

 S. 2009--C                         334                        A. 3009--C
 
 of a school district, and where such order is for [twenty-five thousand]
 FIFTY  THOUSAND  dollars or less as herein authorized, provided however,
 that a school district may apply to the commissioner  of  education  for
 permission  to purchase orders of more than [twenty-five thousand] FIFTY
 THOUSAND dollars from an association of owners of  such  farms  when  no
 other producers or growers have offered to sell to such school;
   §  40.  Section  7  of  chapter  472 of the laws of 1998, amending the
 education law relating to the lease of school buses by school districts,
 as amended by section 18 of part A of chapter 56 of the laws of 2015, is
 amended to read as follows:
   § 7. This act shall take effect September 1, 1998,  and  shall  expire
 and be deemed repealed September 1, [2017] 2019.
   §  41.  Subdivision  6-a  of  section 140 of chapter 82 of the laws of
 1995, amending the education law and  certain  other  laws  relating  to
 state  aid  to  school  districts and the appropriation of funds for the
 support of government, as amended by section 17-a of part A  of  chapter
 57 of the laws of 2012, is amended to read as follows:
   (6-a) Section seventy-three of this act shall take effect July 1, 1995
 and shall be deemed repealed June 30, [2017] 2022;
   § 42. Intentionally omitted.
   § 43. Intentionally omitted.
   §  44.  Subdivision b of section 2 of chapter 756 of the laws of 1992,
 relating to funding a program for work force education conducted by  the
 consortium  for worker education in New York city, as amended by section
 28 of part A of chapter 54 of the laws of 2016, is amended  to  read  as
 follows:
   b.  Reimbursement for programs approved in accordance with subdivision
 a of this section for [the 2012--2013 school year shall not exceed  63.3
 percent  of  the  lesser  of  such  approvable costs per contact hour or
 twelve dollars and thirty-five cents per contact hour, reimbursement for
 the 2013--2014 school year shall not exceed 62.3 percent of  the  lesser
 of  such  approvable costs per contact hour or twelve dollars and sixty-
 five cents per contact hour, reimbursement  for  the  2014--2015  school
 year  shall  not  exceed  61.6  percent of the lesser of such approvable
 costs per contact hour or thirteen dollars per contact hour,  reimburse-
 ment  for]  the  2015--2016 school year shall not exceed 60.7 percent of
 the lesser of such approvable costs per contact hour or thirteen dollars
 and forty cents per contact hour, [and] reimbursement for the 2016--2017
 school year shall not exceed 60.3 percent of the lesser of such approva-
 ble costs per contact hour or thirteen dollars ninety cents per  contact
 hour,  AND REIMBURSEMENT FOR THE 2017--2018 SCHOOL YEAR SHALL NOT EXCEED
 60.4 PERCENT OF THE LESSER OF SUCH APPROVABLE COSTS PER CONTACT HOUR  OR
 THIRTEEN DOLLARS AND NINETY CENTS PER CONTACT HOUR, where a contact hour
 represents sixty minutes of instruction services provided to an eligible
 adult.  Notwithstanding any other provision of law to the contrary, [for
 the  2012--2013  school  year  such  contact  hours shall not exceed one
 million  six  hundred  sixty-four  thousand  five   hundred   thirty-two
 (1,664,532)  hours;  whereas for the 2013--2014 school year such contact
 hours shall not exceed one million six hundred forty-nine thousand seven
 hundred forty-six (1,649,746) hours; whereas for the  2014--2015  school
 year  such  contact hours shall not exceed one million six hundred twen-
 ty-five thousand (1,625,000) hours; whereas] for the  2015--2016  school
 year  such contact hours shall not exceed one million five hundred nine-
 ty-nine thousand fifteen (1,599,015) hours; whereas for  the  2016--2017
 school year such contact hours shall not exceed one million five hundred
 fifty-one  thousand  three  hundred  twelve  (1,551,312);  AND  FOR  THE

 S. 2009--C                         335                        A. 3009--C

 2017--2018 SCHOOL YEAR SUCH CONTACT HOURS SHALL NOT EXCEED  ONE  MILLION
 FIVE  HUNDRED  FORTY-NINE THOUSAND FOUR HUNDRED SIXTY-THREE (1,549,463).
 Notwithstanding any other provision of law to the contrary,  the  appor-
 tionment calculated for the city school district of the city of New York
 pursuant to subdivision 11 of section 3602 of the education law shall be
 computed  as if such contact hours provided by the consortium for worker
 education, not to exceed the contact hours set forth herein, were eligi-
 ble for aid in accordance with the provisions of such subdivision 11  of
 section 3602 of the education law.
   §  45. Section 4 of chapter 756 of the laws of 1992, relating to fund-
 ing a program for work force education conducted by the  consortium  for
 worker  education  in New York city, is amended by adding a new subdivi-
 sion v to read as follows:
   V. THE PROVISIONS OF  THIS  SUBDIVISION  SHALL  NOT  APPLY  AFTER  THE
 COMPLETION  OF  PAYMENTS FOR THE 2017--2018 SCHOOL YEAR. NOTWITHSTANDING
 ANY INCONSISTENT PROVISIONS OF LAW, THE COMMISSIONER OF EDUCATION  SHALL
 WITHHOLD  A  PORTION  OF EMPLOYMENT PREPARATION EDUCATION AID DUE TO THE
 CITY SCHOOL DISTRICT OF THE CITY OF NEW YORK TO SUPPORT A PORTION OF THE
 COSTS OF THE WORK FORCE EDUCATION PROGRAM. SUCH MONEYS SHALL BE CREDITED
 TO THE ELEMENTARY AND SECONDARY EDUCATION FUND-LOCAL ASSISTANCE  ACCOUNT
 AND SHALL NOT EXCEED THIRTEEN MILLION DOLLARS ($13,000,000).
   §  46. Section 6 of chapter 756 of the laws of 1992, relating to fund-
 ing a program for work force education conducted by the  consortium  for
 worker education in New York city, as amended by section 30 of part A of
 chapter 54 of the laws of 2016, is amended to read as follows:
   §  6.  This  act  shall  take effect July 1, 1992, and shall be deemed
 repealed on June 30, [2017] 2018.
   § 47. Subdivisions 22 and 24 of section 140 of chapter 82 of the  laws
 of  1995,  amending the education law and certain other laws relating to
 state aid to school districts and the appropriation  of  funds  for  the
 support  of government, as amended by section 33 of part A of chapter 54
 of the laws of 2016, are amended to read as follows:
   (22) sections one hundred twelve, one hundred  thirteen,  one  hundred
 fourteen,  one hundred fifteen and one hundred sixteen of this act shall
 take effect on July 1, 1995; provided, however, that section one hundred
 thirteen of this act shall remain in full force and effect until July 1,
 [2017] 2018 at which time it shall be deemed repealed;
   (24) sections one hundred eighteen through one hundred thirty of  this
 act  shall  be deemed to have been in full force and effect on and after
 July 1, 1995; provided further, however, that the amendments made pursu-
 ant to section one hundred twenty-four of this act shall be deemed to be
 repealed on and after July 1, [2017] 2018;
   § 48. Paragraphs (a-1) and (b) of section 5 of chapter 89 of the  laws
 of  2016  relating  to  supplementary funding for dedicated programs for
 public school students in the East Ramapo central school  district,  are
 amended to read as follows:
   (a-1)  The  East  Ramapo  central school district shall be eligible to
 receive reimbursement [from  such  funds  made  available]  pursuant  to
 [paragraph  (a)  of]  this [section] ACT, SUBJECT TO AVAILABLE APPROPRI-
 ATION, for its approved expenditures IN THE  TWO  THOUSAND  SIXTEEN--TWO
 THOUSAND SEVENTEEN SCHOOL YEAR AND THEREAFTER on services to improve and
 enhance  the  educational opportunities of students attending the public
 schools in such district. Such services shall include, but not be limit-
 ed to, reducing class sizes, expanding academic and enrichment  opportu-
 nities,  establishing  and  expanding  kindergarten  programs, expanding
 extracurricular opportunities and providing  student  support  services,

 S. 2009--C                         336                        A. 3009--C

 provided,  however,  transportation  services  and expenses shall not be
 eligible for reimbursement from such funds.
   (b)  In  order to receive such funds, the school district in consulta-
 tion with the monitor or monitors shall develop a  long  term  strategic
 academic  and fiscal improvement plan within 6 months from the enactment
 of this act AND SHALL ANNUALLY REVISE SUCH PLAN BY OCTOBER FIRST OF EACH
 YEAR THEREAFTER.  Such plan, INCLUDING SUCH  ANNUAL  REVISIONS  THERETO,
 shall  be submitted to the commissioner for approval and shall include a
 set of goals with appropriate benchmarks and measurable  objectives  and
 identify  strategies  to  address areas where improvements are needed in
 the district, including but not  limited  to  its  financial  stability,
 academic opportunities and outcomes, education of students with disabil-
 ities,  education of English language learners, and shall ensure compli-
 ance with all applicable state and federal laws and regulations.    This
 improvement  plan  shall  also  include a comprehensive expenditure plan
 that will describe how the funds made available to the district pursuant
 to this section will be spent  IN  THE  APPLICABLE  SCHOOL  YEAR.    The
 comprehensive  expenditure  plan shall ensure that funds supplement, not
 supplant, expenditures from local, state and federal funds for  services
 provided  to  public school students, EXCEPT THAT SUCH FUNDS MAY BE USED
 TO CONTINUE SERVICES FUNDED PURSUANT TO THIS ACT IN PRIOR YEARS.    Such
 expenditure plan shall be developed AND ANNUALLY REVISED in consultation
 with the monitor or monitors appointed by the commissioner. The board of
 education  of  the  East  Ramapo  central  school district must ANNUALLY
 conduct a public hearing on the expenditure plan and shall consider  the
 input  of the community before adopting such plan. Such expenditure plan
 shall also be made publicly available and shall  be  ANNUALLY  submitted
 along  with  comments  made  by  the  community  to the commissioner for
 approval once the plan is finalized.   Upon review  of  the  improvement
 plan and the expenditure plan, required to be submitted pursuant to this
 subdivision or section seven of this act, the commissioner shall approve
 or  deny  such plan in writing and, if denied, shall include the reasons
 therefor. The district in consultation with the  monitors  may  resubmit
 such plan or plans with any needed modifications thereto.
   §  49. Section 8 of chapter 89 of the laws of 2016 relating to supple-
 mentary funding for dedicated programs for public school students in the
 East Ramapo central school district, is amended to read as follows:
   § 8. This act shall take effect July 1, 2016 and shall expire  and  be
 deemed repealed June 30, [2017] 2018.
   §  50.  Section  12  of  chapter 147 of the laws of 2001, amending the
 education law relating to conditional appointment  of  school  district,
 charter school or BOCES employees, as amended by section 34 of part A of
 chapter 54 of the laws of 2016, is amended to read as follows:
   §  12.  This  act shall take effect on the same date as chapter 180 of
 the laws of 2000 takes effect, and shall expire July 1, [2017] 2018 when
 upon such date the provisions of this act shall be deemed repealed.
   § 51. School bus driver training. In addition to apportionments other-
 wise provided by section 3602 of the education law, for aid  payable  in
 the 2017--2018 school year, the commissioner of education shall allocate
 school  bus  driver  training  grants  to school districts and boards of
 cooperative educational services pursuant to sections 3650-a, 3650-b and
 3650-c of the education law, or for contracts directly with not-for-pro-
 fit educational organizations for the purposes  of  this  section.  Such
 payments  shall  not exceed four hundred thousand dollars ($400,000) per
 school year.

 S. 2009--C                         337                        A. 3009--C
 
   § 52. Special apportionment for salary  expenses.  a.  Notwithstanding
 any  other  provision  of  law,  upon application to the commissioner of
 education, not sooner than the first day of  the  second  full  business
 week  of  June  2018  and  not later than the last day of the third full
 business week of June 2018, a school district eligible for an apportion-
 ment  pursuant to section 3602 of the education law shall be eligible to
 receive an apportionment pursuant to this section, for the  school  year
 ending  June  30, 2018, for salary expenses incurred between April 1 and
 June 30, 2017 and such apportionment shall not exceed the sum of (i) the
 deficit reduction assessment of 1990--1991 as determined by the  commis-
 sioner of education, pursuant to paragraph f of subdivision 1 of section
 3602 of the education law, as in effect through June 30, 1993, plus (ii)
 186  percent  of such amount for a city school district in a city with a
 population in excess of 1,000,000 inhabitants, plus (iii) 209 percent of
 such amount for a city school district in a city with  a  population  of
 more  than 195,000 inhabitants and less than 219,000 inhabitants accord-
 ing to the latest federal census, plus  (iv)  the  net  gap  elimination
 adjustment  for  2010--2011, as determined by the commissioner of educa-
 tion pursuant to chapter 53 of the laws of 2010, plus (v) the gap elimi-
 nation adjustment for 2011--2012 as determined by  the  commissioner  of
 education  pursuant  to  subdivision 17 of section 3602 of the education
 law, and provided further that such apportionment shall not exceed  such
 salary  expenses.  Such  application shall be made by a school district,
 after the board of education or trustees have adopted a resolution to do
 so and in the case of a city school district in a city with a population
 in excess of 125,000 inhabitants, with the approval of the mayor of such
 city.
   b. The claim for an apportionment to be  paid  to  a  school  district
 pursuant  to  subdivision  a  of  this section shall be submitted to the
 commissioner of education on a form prescribed  for  such  purpose,  and
 shall  be  payable upon determination by such commissioner that the form
 has been submitted as prescribed.  Such approved amounts shall be  paya-
 ble  on  the same day in September of the school year following the year
 in which application was made as funds provided pursuant to subparagraph
 (4) of paragraph b of subdivision 4 of section 92-c of the state finance
 law, on the audit and warrant  of  the  state  comptroller  on  vouchers
 certified  or  approved  by  the commissioner of education in the manner
 prescribed by law from moneys in the state lottery  fund  and  from  the
 general  fund  to  the  extent that the amount paid to a school district
 pursuant to this section exceeds the amount, if  any,  due  such  school
 district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
 section  3609-a  of  the  education law in the school year following the
 year in which application was made.
   c. Notwithstanding the provisions of section 3609-a of  the  education
 law, an amount equal to the amount paid to a school district pursuant to
 subdivisions  a  and  b of this section shall first be deducted from the
 following payments due  the  school  district  during  the  school  year
 following  the  year  in which application was made pursuant to subpara-
 graphs (1), (2), (3), (4) and (5) of paragraph a  of  subdivision  1  of
 section  3609-a of the education law in the following order: the lottery
 apportionment payable pursuant to subparagraph  (2)  of  such  paragraph
 followed by the fixed fall payments payable pursuant to subparagraph (4)
 of  such  paragraph  and then followed by the district's payments to the
 teachers' retirement system pursuant to subparagraph (1) of  such  para-
 graph, and any remainder to be deducted from the individualized payments
 due  the  district  pursuant to paragraph b of such subdivision shall be

 S. 2009--C                         338                        A. 3009--C
 
 deducted on a chronological basis starting with the earliest payment due
 the district.
   §  53. Special apportionment for public pension accruals. a.  Notwith-
 standing any other provision of law, upon application to the commission-
 er of education, not later than June 30, 2018, a school district  eligi-
 ble  for  an apportionment pursuant to section 3602 of the education law
 shall be eligible to receive an apportionment pursuant to this  section,
 for  the  school  year ending June 30, 2018 and such apportionment shall
 not exceed the  additional  accruals  required  to  be  made  by  school
 districts  in the 2004--2005 and 2005--2006 school years associated with
 changes for such public pension liabilities. The amount  of  such  addi-
 tional  accrual  shall  be certified to the commissioner of education by
 the president of the board of education or the trustees or, in the  case
 of  a  city  school  district  in  a city with a population in excess of
 125,000 inhabitants, the mayor of such city. Such application  shall  be
 made by a school district, after the board of education or trustees have
 adopted  a resolution to do so and in the case of a city school district
 in a city with a population in excess of 125,000 inhabitants,  with  the
 approval of the mayor of such city.
   b.  The  claim  for  an  apportionment to be paid to a school district
 pursuant to subdivision a of this section  shall  be  submitted  to  the
 commissioner  of  education  on  a form prescribed for such purpose, and
 shall be payable upon determination by such commissioner that  the  form
 has been submitted as prescribed. Such approved amounts shall be payable
 on  the  same  day in September of the school year following the year in
 which application was made as funds provided  pursuant  to  subparagraph
 (4) of paragraph b of subdivision 4 of section 92-c of the state finance
 law,  on  the  audit  and  warrant  of the state comptroller on vouchers
 certified or approved by the commissioner of  education  in  the  manner
 prescribed  by  law  from  moneys in the state lottery fund and from the
 general fund to the extent that the amount paid  to  a  school  district
 pursuant  to  this  section  exceeds the amount, if any, due such school
 district pursuant to subparagraph (2) of paragraph a of subdivision 1 of
 section 3609-a of the education law in the  school  year  following  the
 year in which application was made.
   c.  Notwithstanding  the provisions of section 3609-a of the education
 law, an amount equal to the amount paid to a school district pursuant to
 subdivisions a and b of this section shall first be  deducted  from  the
 following  payments  due  the  school  district  during  the school year
 following the year in which application was made  pursuant  to  subpara-
 graphs  (1),  (2),  (3),  (4) and (5) of paragraph a of subdivision 1 of
 section 3609-a of the education law in the following order: the  lottery
 apportionment  payable  pursuant  to  subparagraph (2) of such paragraph
 followed by the fixed fall payments payable pursuant to subparagraph (4)
 of such paragraph and then followed by the district's  payments  to  the
 teachers'  retirement  system pursuant to subparagraph (1) of such para-
 graph, and any remainder to be deducted from the individualized payments
 due the district pursuant to paragraph b of such  subdivision  shall  be
 deducted on a chronological basis starting with the earliest payment due
 the district.
   §  54.  a.  Notwithstanding  any  other law, rule or regulation to the
 contrary, any moneys appropriated to the state education department  may
 be  suballocated  to  other state departments or agencies, as needed, to
 accomplish the intent of the specific appropriations contained therein.
   b. Notwithstanding any other law, rule or regulation to the  contrary,
 moneys  appropriated  to the state education department from the general

 S. 2009--C                         339                        A. 3009--C
 
 fund/aid to localities,  local  assistance  account-001,  shall  be  for
 payment  of  financial  assistance,  as scheduled, net of disallowances,
 refunds, reimbursement and credits.
   c.  Notwithstanding any other law, rule or regulation to the contrary,
 all moneys appropriated to the state education  department  for  aid  to
 localities shall be available for payment of aid heretofore or hereafter
 to  accrue  and may be suballocated to other departments and agencies to
 accomplish the intent of the specific appropriations contained therein.
   d. Notwithstanding any other law, rule or regulation to the  contrary,
 moneys  appropriated  to  the  state  education  department  for general
 support for public schools may be interchanged with any  other  item  of
 appropriation  for general support for public schools within the general
 fund local assistance account office of  prekindergarten  through  grade
 twelve education programs.
   § 55. Notwithstanding the provision of any law, rule, or regulation to
 the  contrary,  the  city school district of the city of Rochester, upon
 the consent of the board of  cooperative  educational  services  of  the
 supervisory  district  serving  its  geographic region may purchase from
 such board for the 2017--2018 school year,  as  a  non-component  school
 district, services required by article 19 of the education law.
   §  56.  The  amounts specified in this section shall be set aside from
 the state funds which each such district is  receiving  from  the  total
 foundation  aid:  for  the  purpose  of  the development, maintenance or
 expansion of magnet schools or magnet school programs for the 2017--2018
 school year.  To the city school district of the city of New York  there
 shall  be  paid  forty-eight  million  one hundred seventy-five thousand
 dollars ($48,175,000) including five hundred thousand dollars ($500,000)
 for the Andrew Jackson High School; to the Buffalo city school district,
 twenty-one million twenty-five thousand dollars  ($21,025,000);  to  the
 Rochester  city  school district, fifteen million dollars ($15,000,000);
 to  the  Syracuse  city  school  district,  thirteen   million   dollars
 ($13,000,000);  to  the Yonkers city school district, forty-nine million
 five hundred thousand dollars ($49,500,000); to the Newburgh city school
 district,  four  million  six  hundred   forty-five   thousand   dollars
 ($4,645,000); to the Poughkeepsie city school district, two million four
 hundred  seventy-five thousand dollars ($2,475,000); to the Mount Vernon
 city school district, two  million  dollars  ($2,000,000);  to  the  New
 Rochelle  city  school  district,  one million four hundred ten thousand
 dollars ($1,410,000); to  the  Schenectady  city  school  district,  one
 million eight hundred thousand dollars ($1,800,000); to the Port Chester
 city  school  district,  one  million one hundred fifty thousand dollars
 ($1,150,000); to the White Plains city  school  district,  nine  hundred
 thousand  dollars ($900,000); to the Niagara Falls city school district,
 six hundred thousand dollars  ($600,000);  to  the  Albany  city  school
 district,   three   million   five   hundred   fifty   thousand  dollars
 ($3,550,000); to the Utica city school  district,  two  million  dollars
 ($2,000,000); to the Beacon city school district, five hundred sixty-six
 thousand  dollars  ($566,000);  to  the Middletown city school district,
 four hundred thousand dollars ($400,000); to  the  Freeport  union  free
 school district, four hundred thousand dollars ($400,000); to the Green-
 burgh   central   school   district,   three  hundred  thousand  dollars
 ($300,000); to the Amsterdam city school district, eight  hundred  thou-
 sand  dollars  ($800,000);  to  the  Peekskill city school district, two
 hundred thousand dollars ($200,000);  and  to  the  Hudson  city  school
 district,  four hundred thousand dollars ($400,000). Notwithstanding the
 provisions of this section, a school district receiving a grant pursuant

 S. 2009--C                         340                        A. 3009--C
 
 to this section may use such grant funds for: (i) any  instructional  or
 instructional  support  costs  associated with the operation of a magnet
 school; or (ii) any instructional or instructional support costs associ-
 ated  with  implementation  of  an  alternative approach to reduction of
 racial isolation and/or enhancement of  the  instructional  program  and
 raising  of  standards  in  elementary  and  secondary schools of school
 districts having substantial concentrations of  minority  students.  The
 commissioner  of  education  shall  not be authorized to withhold magnet
 grant funds from a school district that used such  funds  in  accordance
 with  this  paragraph,  notwithstanding any inconsistency with a request
 for proposals issued by such commissioner. For the purpose of attendance
 improvement and dropout prevention for the 2017--2018 school  year,  for
 any  city school district in a city having a population of more than one
 million, the setaside for attendance improvement and dropout  prevention
 shall  equal  the amount set aside in the base year.  For the 2017--2018
 school year, it is further provided that any city school district  in  a
 city  having  a  population  of  more than one million shall allocate at
 least one-third of any increase from base year levels in funds set aside
 pursuant to the requirements  of  this  subdivision  to  community-based
 organizations.  Any  increase  required  pursuant to this subdivision to
 community-based  organizations  must  be  in  addition  to   allocations
 provided  to  community-based  organizations  in the base year.  For the
 purpose of teacher support for the 2017--2018 school year: to  the  city
 school district of the city of New York, sixty-two million seven hundred
 seven  thousand  dollars  ($62,707,000);  to  the  Buffalo  city  school
 district,  one  million  seven  hundred   forty-one   thousand   dollars
 ($1,741,000);  to the Rochester city school district, one million seven-
 ty-six  thousand  dollars  ($1,076,000);  to  the  Yonkers  city  school
 district,   one   million   one  hundred  forty-seven  thousand  dollars
 ($1,147,000); and to the Syracuse city school  district,  eight  hundred
 nine  thousand dollars ($809,000).  All funds made available to a school
 district pursuant to this section shall be  distributed  among  teachers
 including  prekindergarten teachers and teachers of adult vocational and
 academic subjects in accordance with this section and shall be in  addi-
 tion  to  salaries heretofore or hereafter negotiated or made available;
 provided, however, that all funds distributed pursuant to  this  section
 for  the  current year shall be deemed to incorporate all funds distrib-
 uted pursuant to former subdivision 27 of section 3602 of the  education
 law  for prior years. In school districts where the teachers are repres-
 ented by certified or  recognized  employee  organizations,  all  salary
 increases  funded  pursuant to this section shall be determined by sepa-
 rate collective negotiations conducted pursuant to  the  provisions  and
 procedures  of  article 14 of the civil service law, notwithstanding the
 existence of a negotiated agreement between  a  school  district  and  a
 certified or recognized employee organization.
   §  57.  Support  of  public libraries. The moneys appropriated for the
 support of public libraries by a chapter of the laws  of  2017  enacting
 the  aid  to  localities  budget  shall be apportioned for the 2017-2018
 state fiscal year in accordance with the  provisions  of  sections  271,
 272,  273,  282,  284,  and  285  of the education law as amended by the
 provisions of this chapter and the provisions of this section,  provided
 that library construction aid pursuant to section 273-a of the education
 law  shall  not  be  payable  from the appropriations for the support of
 public libraries and provided further that no library, library system or
 program, as defined by the commissioner of education, shall receive less
 total system or program aid than it  received  for  the  year  2001-2002

 S. 2009--C                         341                        A. 3009--C
 
 except as a result of a reduction adjustment necessary to conform to the
 appropriations  for  support  of  public  libraries. Notwithstanding any
 other provision of law to the contrary the moneys appropriated  for  the
 support  of  public libraries for the year 2017-2018 by a chapter of the
 laws of 2017 enacting the education, labor and family assistance  budget
 shall  fulfill  the state's obligation to provide such aid and, pursuant
 to a plan developed by the commissioner of education and approved by the
 director of the budget, the aid payable to libraries and library systems
 pursuant to such appropriations  shall  be  reduced  proportionately  to
 assure  that  the  total amount of aid payable does not exceed the total
 appropriations for such purpose.
   § 58. Subdivision 11 of section 94 of part C of chapter 57 of the laws
 of 2004, relating to the support of education,  as  amended  by  section
 22-a  of part A of chapter 56 of the laws of 2014, is amended to read as
 follows:
   11. section seventy-one  of  this  act  shall  expire  and  be  deemed
 repealed June 30, [2017] 2020;
   §  59.  Section  2  of  chapter  658 of the laws of 2002, amending the
 education law relating to citizenship requirements for permanent certif-
 ication as a teacher, as amended by chapter 289 of the laws of 2012,  is
 amended to read as follows:
   §  2.  This act shall take effect immediately, and shall expire and be
 deemed repealed November 30, [2017] 2022.
   § 60. Paragraph a-1 of subdivision 11 of section 3602 of the education
 law, as amended by section 45 of part A of chapter 54  of  the  laws  of
 2016, is amended to read as follows:
   a-1.  Notwithstanding  the  provisions of paragraph a of this subdivi-
 sion, for aid payable in the school years two thousand--two thousand one
 through two thousand nine--two thousand ten, and two  thousand  eleven--
 two  thousand twelve through two thousand [sixteen] SEVENTEEN--two thou-
 sand [seventeen] EIGHTEEN, the commissioner may set aside an amount  not
 to  exceed  two  million  five  hundred  thousand dollars from the funds
 appropriated for purposes of this subdivision for the purpose of serving
 persons twenty-one years of age or older who have not been  enrolled  in
 any  school  for  the  preceding school year, including persons who have
 received a high school diploma or high school  equivalency  diploma  but
 fail  to  demonstrate basic educational competencies as defined in regu-
 lation by the  commissioner,  when  measured  by  accepted  standardized
 tests, and who shall be eligible to attend employment preparation educa-
 tion programs operated pursuant to this subdivision.
   §  61.  Paragraph  b of subdivision 21 of section 305 of the education
 law, as added by chapter 474 of the laws of 1996, is amended to read  as
 follows:
   b.  The  commissioner shall periodically prepare an updated electronic
 data file containing actual and estimated data  relating  to  apportion-
 ments  due  and  owing during the current school year and projections of
 such apportionments for the following school year  to  school  districts
 and  boards of cooperative educational services from the general support
 for  public  schools,  growth  and  boards  of  cooperative  educational
 services  appropriations  on the following dates: November fifteenth, or
 such alternative date as may be requested by the director of the  budget
 for  the  purpose  of  preparation  of  the  executive  budget; February
 fifteenth, or such alternative date as may be jointly requested  by  the
 chair of the senate finance committee and the chair of the assembly ways
 and means committee; and May fifteenth.  FOR THE PURPOSES OF USING ESTI-
 MATED  DATA  FOR  PROJECTIONS OF APPORTIONMENTS FOR THE FOLLOWING SCHOOL

 S. 2009--C                         342                        A. 3009--C
 
 YEAR, WHEN NO SPECIFIC APPORTIONMENT HAS YET BEEN MADE FOR  SUCH  SCHOOL
 YEAR,  BUT  SUCH  APPORTIONMENT HAS A HISTORY OF ANNUAL REAUTHORIZATION,
 THE COMMISSIONER SHALL ESTIMATE THE APPORTIONMENT AT THE SAME  LEVEL  AS
 THE  PRECEDING SCHOOL YEAR, SUBJECT TO THE ANNUAL APPROVAL OF THE DIREC-
 TOR OF THE BUDGET, THE CHAIRPERSON OF THE SENATE FINANCE  COMMITTEE  AND
 THE CHAIRPERSON OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
   § 62. Severability. The provisions of this act shall be severable, and
 if  the  application  of  any  clause, sentence, paragraph, subdivision,
 section or part of this act to  any  person  or  circumstance  shall  be
 adjudged  by  any  court  of  competent jurisdiction to be invalid, such
 judgment shall not necessarily affect, impair or invalidate the applica-
 tion of any such clause, sentence, paragraph, subdivision, section, part
 of this act or remainder thereof, as the  case  may  be,  to  any  other
 person  or  circumstance,  but shall be confined in its operation to the
 clause,  sentence,  paragraph,  subdivision,  section  or  part  thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered.
   § 63. This act shall take effect immediately, and shall be  deemed  to
 have been in full force and effect on and after April 1, 2017, provided,
 however, that:
   1.  sections  one,  two, five, sixteen, sixteen-a, twenty-two, twenty-
 three, twenty-four, twenty-five, twenty-six, twenty-seven, twenty-eight,
 twenty-nine, thirty, thirty-one, thirty-one-a, thirty-one-b, thirty-two,
 thirty-three,  thirty-four,  thirty-five,   thirty-eight,   forty-eight,
 fifty-one,  fifty-five, fifty-six, sixty and sixty-one of this act shall
 take effect July 1, 2017;
   2. the amendments to chapter 756 of the  laws  of  1992,  relating  to
 funding a program for work force education conducted by a consortium for
 worker  education  in  New  York  City,  made by sections forty-four and
 forty-five of this act, shall not affect the repeal of such chapter  and
 shall be deemed repealed therewith;
   3.  the  amendments  to  chapter  89  of the laws of 2016, relating to
 supplementary funding for dedicated programs for public school  students
 in  the East Ramapo central school district, made by section forty-eight
 of this act shall not affect the repeal of such  chapter  and  shall  be
 deemed repealed therewith;
   4.  the  amendments  to subdivision 33 of section 305 of the education
 law, made by section seven of this act, shall not affect the  repeal  of
 such subdivision and shall be deemed repealed therewith;
   5.  the  amendments  to subdivision 7 of section 2802 of the education
 law, made by section eight of this act, shall not affect the  repeal  of
 such subdivision and shall be deemed repealed therewith;
   6.  the  amendments  to subdivision 7 of section 3214 of the education
 law, made by section nine of this act, shall not affect  the  repeal  of
 such subdivision and shall be deemed repealed therewith;
   7.  the  amendments  to  section  2590-c  of the education law made by
 section nineteen of this act shall not affect the repeal of such section
 and shall be deemed repealed therewith;
   8. the amendments to subdivision 1 of section 2856  of  the  education
 law  made by section four of this act shall be subject to the expiration
 and reversion of such subdivision pursuant to subdivision d  of  section
 27  of  chapter 378 of the laws of 2007, as amended, when upon such date
 the provisions of section four-a of this act shall take effect;
   9. the amendments to paragraphs d-1  and  d-2  of  subdivision  12  of
 section  3602-e  of  the education law made by section twenty-eight-a of

 S. 2009--C                         343                        A. 3009--C
 
 this act shall not affect the repeal of such  paragraphs  and  shall  be
 deemed repealed therewith; and
   10.  the  amendments to paragraph b-1 of subdivision 4 of section 3602
 of the education law made by section sixteen-a of  this  act  shall  not
 affect the expiration of such paragraph and shall expire therewith.
   § 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 YYY of this act shall
 be as specifically set forth in the last section of such Parts.

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