EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12574-02-1
S. 2509--A 2 A. 3009--A
holic beverage control law, the general obligations law, the social
services law, the state finance law, the penal law and the vehicle and
traffic law, in relation to making conforming changes; to amend chap-
ter 90 of the laws of 2014 amending the public health law, the tax
law, the state finance law, the general business law, the penal law
and the criminal procedure law relating to medical use of marihuana,
in relation to the effectiveness thereof; to repeal title 5-A of arti-
cle 33 of the public health law relating to medical use of marihuana;
to repeal article 33-B of the public health law relating to the regu-
lation of cannabinoid hemp and hemp extract; to repeal subdivision 4
of section 220.06 and subdivision 10 of section 220.09 of the penal
law relating to criminal possession of a controlled substance; to
repeal sections 221.10 and 221.30 of the penal law relating to the
criminal possession of marihuana; and to repeal paragraph (f) of
subdivision 2 of section 850 of the general business law relating to
drug related paraphernalia (Part H); to amend the tax law, in relation
to requiring vacation rental marketplace providers collect sales tax
(Part I); to amend the tax law, to impose sales tax on such admissions
to race tracks and simulcast facilities; and to repeal section 227,
section 306, section 406, subparagraph (ii) of paragraph b of subdivi-
sion 4 of section 1008 and paragraph b of subdivision 5 of section
1009 of the racing, pari-mutuel, wagering and breeding law, relating
to certain taxes on admissions to race tracks and simulcast facilities
(Part J); to amend the tax law, in relation to increasing the interest
free period for certain sales tax refunds (Part K); to amend the tax
law, in relation to the authority of counties to impose sales and
compensating use taxes; and to repeal certain provisions of such law
relating thereto (Part L); to amend the tax law, in relation to
exempting from sales and use tax certain tangible personal property or
services (Part M); to amend the tax law, in relation to increasing the
total dollar amount for vendors' gross receipts necessary for regis-
tration filing (Part N); to amend the tax law,in relation to imposing
liability for real estate transfer taxes on responsible persons,
prohibiting grantors from passing real estate transfer tax to gran-
tees, and exempting certain organizations from the LLC disclosure
requirement (Part O); to amend the tax law, in relation to
restrictions on certain retail dealers whose registrations have been
revoked or who have been forbidden from selling cigarettes or tobacco
products (Part P); to amend the tax law, in relation to the timing and
method for filing certain returns (Part Q); to amend the tax law, in
relation to determining liability for the collection of taxes on
medallion taxicab trips and congestion surcharges (Part R); to amend
the tax law, in relation to increasing tax return preparer penalties
for failure to register and requiring the display of certain documents
by tax return preparers (Part S); to amend the tax law, in relation to
permitting the commissioner of taxation and finance to seek judicial
review of decisions of the tax appeals tribunal (Part T); to amend the
real property law and the tax law, in relation to electronic
submission of consolidated real property transfer forms; and to repeal
certain provisions of the real property law relating thereto (Part U);
to amend the real property tax law, in relation to providing that
beginning with assessment rolls used to levy school district taxes for
the 2021--2022 school year, no application for a new enhanced
exemption under this section may be approved (Subpart A); to amend the
real property tax law, in relation to extending the cutoff date for a
STAR credit switch (Subpart B); to amend the tax law, in relation to
S. 2509--A 3 A. 3009--A
tax returns of deceased individuals (Subpart C); to amend the real
property tax law, in relation to the powers of the state board of real
property tax services and the commissioner of taxation and finance; to
amend the tax law, in relation to requiring the commissioner of taxa-
tion and finance verify the income eligibility of recipients of the
basic STAR exemption; and to repeal certain provisions of the real
property tax law relating thereto (Subpart D); and to amend the real
property law, in relation to exemptions for manufactured home park
owners or operators and mobile home owners; and to repeal certain
provisions of such law relating thereto (Subpart E)(Part V); to amend
the real property tax law, in relation to facilitating the adminis-
tration of the real property tax, and to repeal section 307 of such
law relating thereto (Part W); to amend the real property tax law and
the general municipal law, in relation to promoting the development of
renewable energy projects (Part X); to amend the racing, pari-mutuel
wagering and breeding law, in relation to authorizing mobile sports
wagering; and providing for the repeal of certain provisions of such
law relating thereto (Part Y); authorizing a request for information
related to gaming facility licenses (Part Z); to amend the tax law, in
relation to a keno style lottery game (Part AA); to amend the tax law,
in relation to restrictions on certain lottery draw game offerings
(Part BB); to amend the racing, pari-mutuel wagering and breeding law,
in relation to the office of the gaming inspector general; and to
repeal certain provisions of such law relating thereto (Part CC); to
amend the racing, pari-mutuel wagering and breeding law, in relation
to licenses for simulcast facilities, sums relating to track simul-
cast, 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-mu-
tuel wagering and breeding law and other laws relating to simulcasting
and to amend chapter 346 of the laws of 1990 amending the racing,
pari-mutuel wagering and breeding law and other laws relating to
simulcasting and the imposition of certain taxes, in relation to
extending certain provisions thereof; and to amend the racing, pari-
mutuel wagering and breeding law, in relation to extending certain
provisions thereof (Part DD); to amend chapter 109 of the laws of 2006
amending the tax law and other laws relating to providing exemptions,
reimbursements and credits from various taxes for certain alternative
fuels, in relation to extending the alternative fuels tax exemptions
for five years (Part EE); to amend the tax law and chapter 60 of the
laws of 2016 amending the tax law relating to creating a farm work-
force retention credit, in relation to extending the provisions of
such credit through tax year 2024 (Part FF); to amend the public hous-
ing law, in relation to extending the credit against income tax for
persons or entities investing in low-income housing (Part GG); to
amend chapter 59 of the laws of 2014, amending the tax law relating to
a musical and theatrical production credit, in relation to the effec-
tiveness thereof; and to amend the tax law in relation to increasing
the aggregate cap on the amount of such credit (Part HH); to amend the
tax law, in relation to extending hire a veteran credit for an addi-
tional year (Part II); to amend chapter 61 of the laws of 2011 amend-
ing the economic development law, the tax law and the real property
tax law, relating to establishing the economic transformation and
facility redevelopment program and providing tax benefits under that
program and to amend the economic development law, in relation to
extending the tax credits under the economic transformation and facil-
S. 2509--A 4 A. 3009--A
ity redevelopment program (Part JJ); to amend the general business
law, in relation to requiring the implementation of the secure choice
program by a certain date (Part KK); and in relation to temporarily
suspending certain racing support payments (Part LL)
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 2021-2022
state fiscal year. Each component is wholly contained within a Part
identified as Parts A through LL. 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,
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
Section 1. The tax law is amended by adding a new section 602 to read
as follows:
§ 602. (A) SURCHARGE. IN ADDITION TO THE TAXES IMPOSED UNDER SECTION
SIX HUNDRED ONE OF THIS PART, AN INCOME TAX SURCHARGE IS HEREBY IMPOSED
ON INDIVIDUALS FOR THE TAXABLE YEARS TWO THOUSAND TWENTY-ONE THROUGH TWO
THOUSAND TWENTY-THREE ON THE TAXPAYER'S NEW YORK TAXABLE INCOME, AT THE
FOLLOWING RATES:
IF THE TAXPAYER'S NEW YORK THE SURCHARGE RATE IS:
TAXABLE INCOME IS:
OVER $5,000,000 BUT NOT OVER $10,000,000 0.5 PERCENT
OVER $10,000,000 BUT NOT OVER $25,000,000 1.0 PERCENT
OVER $25,000,000 BUT NOT OVER $50,000,000 1.5 PERCENT
OVER $50,000,000 BUT NOT OVER $100,000,000 1.75 PERCENT
OVER $100,000,000 2.0 PERCENT
(B) METHOD OF PAYMENT. A TAXPAYER SHALL PAY THE TAX SURCHARGE WHEN THE
TAXPAYER FILES HIS OR HER PERSONAL INCOME TAX RETURN REQUIRED TO BE
FILED PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF THIS ARTICLE. A
TAXPAYER MAY ALSO PRE-PAY IN TAXABLE YEAR TWO THOUSAND TWENTY-ONE ALL OR
A PORTION OF THE TAX SURCHARGE FOR TAXABLE YEAR TWO THOUSAND TWENTY-TWO
AND/OR TWO THOUSAND TWENTY-THREE THAT THE TAXPAYER ESTIMATES WILL BE
OWED UNDER THIS SECTION IN THE MANNER THE COMMISSIONER OF TAXATION AND
FINANCE SHALL PRESCRIBE. THE COMMISSIONER SHALL PRESCRIBE A METHOD OF
RECORDING AND APPLYING THE PAYMENT OF PRE-PAID TAX SURCHARGE AMOUNTS
MADE PURSUANT TO THIS TO THIS SUBSECTION, WITH THE PRE-PAYMENT REDUCING
THE TAXPAYER'S SURCHARGE LIABILITY FIRST FOR TAXABLE YEAR TWO THOUSAND
TWENTY-TWO, WITH THE REMAINDER APPLIED TO REDUCE THE TAXPAYER'S
SURCHARGE LIABILITY IN TAXABLE YEAR TWO THOUSAND TWENTY-THREE AND ANY
EXCESS IN TAXABLE YEAR TWO THOUSAND TWENTY-THREE TREATED AS A TAX OVER-
PAYMENT TO BE REFUNDED OR CREDITED AGAINST TAX OTHERWISE OWED UNDER THIS
ARTICLE; PROVIDED HOWEVER, THAT NO INTEREST WILL BE PAID THEREON. THE
SURCHARGE IMPOSED BY THIS SECTION SHALL BE INCLUDED FOR PURPOSES OF
S. 2509--A 5 A. 3009--A
COMPUTING AND REMITTING ESTIMATED TAX PURSUANT TO SECTION SIX HUNDRED
EIGHTY-FIVE OF THIS ARTICLE. THE CREDITS ALLOWED UNDER THIS ARTICLE MAY
NOT BE USED TO REDUCE THE SURCHARGE IMPOSED BY THIS SECTION.
§ 2. Subsection (c) of section 612 of the tax law is amended by adding
a new paragraph 43 to read as follows:
(43) TAXPAYERS WHO PRE-PAY THE TAX SURCHARGE IMPOSED UNDER SUBSECTION
(A) OF SECTION SIX HUNDRED TWO OF THIS ARTICLE IN TAXABLE YEAR TWO THOU-
SAND TWENTY-ONE SHALL BE ALLOWED A DEDUCTION AS COMPUTED IN THIS PARA-
GRAPH BEGINNING IN TAXABLE YEAR TWO THOUSAND TWENTY-FOUR. IN TAXABLE
YEAR TWO THOUSAND TWENTY-FOUR, THE DEDUCTION SHALL BE EQUAL TO THE LESS-
ER OF (I) THE SUM OF THE TAXPAYER'S INTEREST, DIVIDENDS AND CAPITAL
GAINS TAXABLE IN THIS STATE OR (II) THE PRODUCT OF FIFTY PERCENT AND THE
PRE-PAYMENT INCOME EQUIVALENT. FOR PURPOSES OF THIS PARAGRAPH, THE PRE-
PAYMENT INCOME EQUIVALENT IS THE QUOTIENT OF THE AMOUNT OF THE TAX
SURCHARGE PRE-PAYMENT THE TAXPAYER MADE PURSUANT TO SUBSECTION (B) OF
SECTION SIX HUNDRED TWO OF THIS ARTICLE AND EIGHT AND EIGHTY-TWO
HUNDREDTHS PERCENT. THE DEDUCTION ALLOWED IN TAXABLE YEAR TWO THOUSAND
TWENTY-FIVE AND THEREAFTER SHALL BE EQUAL TO THE LESSER OF (I) THE SUM
OF THE TAXPAYER'S INTEREST, DIVIDENDS AND CAPITAL GAINS TAXABLE IN THIS
STATE OR (II) THE REMAINING AMOUNT OF THE TAXPAYER'S PRE-PAYMENT INCOME
EQUIVALENT. THE TAXPAYER SHALL CONTINUE TO BE ALLOWED THIS DEDUCTION
UNTIL ALL OF THE TAXPAYER'S PRE-PAYMENT INCOME EQUIVALENT IS USED UP IN
CALCULATING THIS DEDUCTION.
§ 3. Section 606 of the tax law is amended by adding a new subsection
(www) to read as follows:
(WWW) TAXPAYERS WHO PRE-PAY THE TAX SURCHARGE IMPOSED UNDER SECTION
SIX HUNDRED TWO OF THIS ARTICLE BUT DIE BEFORE THE REMAINDER OF ITS
PRE-PAYMENT INCOME EQUIVALENT IS USED UP AS PROVIDED IN PARAGRAPH
FORTY-THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED TWELVE OF THIS
ARTICLE, WILL BE ALLOWED A TAX CREDIT ON THE TAXPAYER'S FINAL RETURN
EQUAL TO THE REMAINING AMOUNT OF TAX SURCHARGE PRE-PAYMENT THE TAXPAYER
HAS AVAILABLE FOR USE THAT CORRESPONDS TO THE REMAINING PRE-PAYMENT
INCOME EQUIVALENT REFERRED TO IN PARAGRAPH FORTY-THREE OF SUBSECTION (C)
OF SECTION SIX HUNDRED TWELVE OF THIS ARTICLE. 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 OVERPAY-
MENT TO BE REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
§ 4. 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 22
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 2021 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. Any such changes in withholding tables and meth-
ods for tax year 2021 shall be adopted and effective as soon as practi-
cable. The commissioner of taxation and finance may make similar changes
to withholding tables and methods. The withholding tables and methods
S. 2509--A 6 A. 3009--A
for tax year 2021 shall not be prescribed by regulation, notwithstanding
any provision of the state administrative procedure act to the contrary.
§ 5. The additions to tax imposed by subsection (c) of section 685 of
the tax law shall not apply to any installments of estimated tax due on
or before September fifteenth, two thousand twenty-one if the underpay-
ment is the result of the enactment of the tax surcharge for the tax
year two thousand twenty-one prescribed by this act.
§ 6. Severability. The powers granted and the duties imposed by this
act and the applicability thereof to any taxpayers shall be construed to
be independent and severable and if any one or more sections,
subsections, clauses, sentences or parts of this act, or the applicabil-
ity thereof to any taxpayers shall be adjudged unconstitutional or
invalid, such judgment shall not affect, impair or invalidate the
remaining provisions thereof or the applicability thereof to other
taxpayers, but shall be confined in its operation to the specific
provisions so held unconstitutional and invalid and to the taxpayers
affected thereby. If any provisions under section two or three of this
act shall be adjudged unconstitutional or invalid, then the entire
affected section of this act shall be deemed void.
§ 7. This act shall take effect immediately.
PART B
Section 1. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of
subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the
tax law, clauses (iii), (iv), (v), (vi) and (vii) as amended by section
1 of part P of chapter 59 of the laws of 2019 and clause (viii) as added
by section 1 of part R of chapter 59 of the laws of 2017, are amended to
read as follows:
(iii) For taxable years beginning in two thousand twenty AND TWO THOU-
SAND 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 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 $19,674 plus 6.85% of excess
$2,155,350 $323,200 over
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] TWENTY-
TWO 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
S. 2509--A 7 A. 3009--A
$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 but not over $19,403 plus 6.85% of excess
$2,155,350 over $323,200
Over $2,155,350 $144,905 plus 8.82% of excess over
$2,155,350
(v) For taxable years beginning in two thousand [twenty-two] 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 5.85% 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 but not over $2,155,350 $19,124 plus
6.85% of excess over $323,200
Over $2,155,350 $144,626 plus 8.82% of excess over
$2,155,350
(vi) For taxable years beginning in two thousand [twenty-three] TWEN-
TY-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 5.73% 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 but not over $18,834 plus 6.85% of
$2,155,350 excess over $323,200
Over $2,155,350 $144,336 plus 8.82% of excess over
$2,155,350
(vii) For taxable years beginning in two thousand [twenty-four] TWEN-
TY-FIVE 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 [but not over] $18,544 plus 6.85% of
[$2,155,350] excess over $323,200
[Over $2,155,350 $144,047 plus 8.82% of excess over
S. 2509--A 8 A. 3009--A
$2,155,350]
(viii) For taxable years beginning after two thousand [twenty-four]
TWENTY-FIVE 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. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph
(B) of paragraph 1 of subsection (b) of section 601 of the tax law,
clauses (iii), (iv), (v), (vi) and (vii) as amended by section 2 of part
P of chapter 59 of the laws of 2019 and clause (viii) as added by
section 2 of part R of chapter 59 of the laws of 2017, are amended to
read as follows:
(iii) For taxable years beginning in two thousand twenty AND TWO THOU-
SAND 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 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 $16,524 plus 6.85% of
$1,616,450 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] TWENTY-
TWO 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 but not over $16,304 plus 6.85% of
$1,616,450 excess over $269,300
Over $1,616,450 $108,584 plus 8.82% of excess over
$1,616,450
S. 2509--A 9 A. 3009--A
(v) For taxable years beginning in two thousand [twenty-two] 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 5.85% 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 but not over $16,079 plus 6.85% of excess
$1,616,450 over $269,300
Over $1,616,450 $108,359 plus 8.82% of excess over
$1,616,450
(vi) For taxable years beginning in two thousand [twenty-three] TWEN-
TY-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 5.73% 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 but not over $15,845 plus 6.85% of excess
$1,616,450 over $269,300
Over $1,616,450 $108,125 plus 8.82% of excess over
$1,616,450
(vii) For taxable years beginning in two thousand [twenty-four] TWEN-
TY-FIVE 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 [but not over] $15,612 plus 6.85% of excess
[$1,616,450] over $269,300
[Over $1,616,450 $107,892 plus 8.82% of excess over
$1,616,450]
(viii) For taxable years beginning after two thousand [twenty-four]
TWENTY-FIVE 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
S. 2509--A 10 A. 3009--A
$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. Clauses (iii), (iv), (v), (vi), (vii) and (viii) of subparagraph
(B) of paragraph 1 of subsection (c) of section 601 of the tax law,
clauses (iii), (iv), (v), (vi) and (vii) as amended by section 3 of part
P of chapter 59 of the laws of 2019 and clause (viii) as added by
section 3 of part R of chapter 59 of the laws of 2017, are amended to
read as follows:
(iii) For taxable years beginning in two thousand twenty AND TWO THOU-
SAND 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 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 $13,288 plus 6.85% of excess
$1,077,550 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] TWENTY-
TWO 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 but not over $13,109 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 $72,166 plus 8.82% of excess over
$1,077,550
(v) For taxable years beginning in two thousand [twenty-two] 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
S. 2509--A 11 A. 3009--A
$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 but not over $12,926 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 $71,984 plus 8.82% of excess over
$1,077,550
(vi) For taxable years beginning in two thousand [twenty-three] TWEN-
TY-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 5.73% 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 but not over $12,738 plus 6.85% of excess
$1,077,550 over $215,400
Over $1,077,550 $71,796 plus 8.82% of excess over
$1,077,550
(vii) For taxable years beginning in two thousand [twenty-four] TWEN-
TY-FIVE 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 [but not over] $12,550 plus 6.85% of excess
[$1,077,550] over $215,400
[Over $1,077,550 $71,608 plus 8.82% of excess over
$1,077,550]
(viii) For taxable years beginning after two thousand [twenty-four]
TWENTY-FIVE 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. 2509--A 12 A. 3009--A
§ 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section
601 of the tax law, as amended by section 4 of part P of chapter 59 of
the laws of 2019, 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 twenty-five.
§ 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section
601 of the tax law, as amended by section 5 of part P of chapter 59 of
the laws of 2019, 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 twenty-five.
§ 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section
601 of the tax law, as amended by section 6 of part P of chapter 59 of
the laws of 2019, 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 twenty-five.
§ 7. 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 22
of the tax law in connection with the implementation of the provisions
of this act shall be prescribed by the commissioner of taxation and
S. 2509--A 13 A. 3009--A
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 2021 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. Any such changes in withholding tables and meth-
ods for tax year 2021 shall be adopted and effective as soon as practi-
cable. The commissioner of taxation and finance may make similar changes
to withholding tables and methods. The withholding tables and methods
for tax year 2021 shall not be prescribed by regulation, notwithstanding
any provision of the state administrative procedure act to the contrary.
§ 8. The additions to tax imposed by subsection (c) of section 685 of
the tax law shall not apply to any installments of estimated tax due on
or before September fifteenth, two thousand twenty-one if the underpay-
ment is the result of the enactment of the tax rates for the tax year
two thousand twenty-one prescribed by this act.
§ 9. This act shall take effect immediately.
PART C
Section 1. The tax law is amended by adding a new article 24-A to read
as follows:
ARTICLE 24-A
PASS-THROUGH ENTITY TAX
SECTION 860. DEFINITIONS.
861. PASS-THROUGH ENTITY TAX ELECTION.
862. IMPOSITION AND RATE OF TAX.
863. PASS-THROUGH ENTITY TAX CREDIT.
864. PAYMENT OF ESTIMATED TAX.
865. FILING OF RETURN AND PAYMENT OF TAX.
866. ACCOUNTING PERIODS AND METHODS.
867. PROCEDURAL PROVISIONS.
§ 860. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
(A) ELIGIBLE PARTNERSHIP. ELIGIBLE PARTNERSHIP MEANS ANY PARTNERSHIP
AS PROVIDED FOR IN SECTION 7701(A)(2) OF THE INTERNAL REVENUE CODE THAT
CONSISTS SOLELY OF PARTNERS WHO ARE INDIVIDUALS. AN ELIGIBLE PARTNER-
SHIP INCLUDES ANY LIMITED LIABILITY COMPANY TREATED AS A PARTNERSHIP FOR
FEDERAL INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF
THIS SUBDIVISION.
(B) ELIGIBLE S CORPORATION. ELIGIBLE S CORPORATION MEANS ANY NEW YORK
S CORPORATION AS DEFINED PURSUANT TO THIS CHAPTER THAT CONSISTS SOLELY
OF SHAREHOLDERS WHO ARE INDIVIDUALS. AN ELIGIBLE S CORPORATION INCLUDES
ANY LIMITED LIABILITY COMPANY TREATED AS AN S CORPORATION FOR FEDERAL
INCOME TAX PURPOSES THAT OTHERWISE MEETS THE REQUIREMENTS OF THIS SUBDI-
VISION.
(C) ELECTING PARTNERSHIP. ELECTING PARTNERSHIP MEANS ANY ELIGIBLE
PARTNERSHIP THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION EIGHT
HUNDRED SIXTY-ONE OF THIS ARTICLE.
(D) ELECTING S CORPORATION. ELECTING S CORPORATION MEANS ANY ELIGIBLE
S CORPORATION THAT MADE A VALID, TIMELY ELECTION PURSUANT TO SECTION
EIGHT HUNDRED SIXTY-ONE OF THIS ARTICLE.
(E) TAXPAYER. TAXPAYER MEANS ANY ELECTING PARTNERSHIP OR ELECTING S
CORPORATION.
S. 2509--A 14 A. 3009--A
(F) PASS-THROUGH ENTITY TAX. PASS-THROUGH ENTITY TAX MEANS THE TOTAL
TAX IMPOSED BY THIS ARTICLE ON ELECTING PARTNERSHIPS AND ELECTING S
CORPORATIONS.
(G) PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO). PASS-
THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) MEANS:
(1) IN THE CASE OF AN ELECTING PARTNERSHIP, THE SUM OF (I) FEDERAL
TAXABLE INCOME (NOT LESS THAN ZERO), AS DESCRIBED IN SECTION 702(A)(8)
OF THE INTERNAL REVENUE CODE, TO THE EXTENT EARNED DIRECTLY BY SUCH
PARTNERSHIP; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSU-
ANT TO THIS ARTICLE BY A PARTNERSHIP TO THE EXTENT DEDUCTED IN COMPUTING
FEDERAL TAXABLE INCOME; (III) TAXES SUBSTANTIALLY SIMILAR TO THE TAX
IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE
YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF
SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN
COMPUTING FEDERAL TAXABLE INCOME; AND (IV) GUARANTEED PAYMENTS PAID BY
THE PARTNERSHIP TO ITS PARTNERS AS DESCRIBED IN SECTION 707(C) OF THE
INTERNAL REVENUE CODE.
(2) IN THE CASE OF AN ELECTING S CORPORATION, THE SUM OF (I) FEDERAL
NONSEPARATELY COMPUTED INCOME (NOT LESS THAN ZERO), AS DESCRIBED IN
SECTION 1366(A)(2) OF THE INTERNAL REVENUE CODE, WHETHER EARNED BY SUCH
S CORPORATION OR BY A PARTNERSHIP OF WHICH THE S CORPORATION IS A PART-
NER; (II) TAXES PAID OR INCURRED DURING THE TAXABLE YEAR PURSUANT TO
THIS ARTICLE BY AN S CORPORATION TO THE EXTENT DEDUCTED IN COMPUTING
FEDERAL ORDINARY INCOME; AND (III) TAXES SUBSTANTIALLY SIMILAR TO THE
TAX IMPOSED PURSUANT TO THIS ARTICLE PAID OR INCURRED DURING THE TAXABLE
YEAR TO ANOTHER STATE OF THE UNITED STATES, A POLITICAL SUBDIVISION OF
SUCH STATE, OR THE DISTRICT OF COLUMBIA TO THE EXTENT DEDUCTED IN
COMPUTING FEDERAL TAXABLE INCOME.
(H) PARTNERSHIP TAXABLE INCOME. PARTNERSHIP TAXABLE INCOME OF AN
ELECTING PARTNERSHIP MEANS THE SUM OF (1) THE ELECTING PARTNERSHIP'S
PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO), ALLOCATED TO NEW
YORK STATE PURSUANT TO SUBDIVISION (B) OF SECTION EIGHT HUNDRED SIXTY-
TWO OF THIS ARTICLE; AND (2) THE ELECTING PARTNERSHIP'S PROPORTIONATE
SHARE OF ANY PASS-THROUGH ADJUSTED NET INCOME (NOT LESS THAN ZERO) FROM
A PARTNERSHIP OF WHICH IT IS A PARTNER TO THE EXTENT IT WAS SOURCED TO
NEW YORK BY SUCH PARTNERSHIP PURSUANT TO THE PRINCIPLES OF ARTICLE TWEN-
TY-TWO OF THIS CHAPTER.
(I) S CORPORATION TAXABLE INCOME. S CORPORATION TAXABLE INCOME OF AN
ELECTING S CORPORATION MEANS THE ELECTING S CORPORATION'S PASS-THROUGH
ADJUSTED NET INCOME (NOT LESS THAN ZERO) ALLOCATED TO NEW YORK STATE
PURSUANT TO SUBDIVISION (C) OF SECTION EIGHT HUNDRED SIXTY-TWO OF THIS
ARTICLE.
§ 861. PASS-THROUGH ENTITY TAX ELECTION. (A) ANY ELIGIBLE PARTNERSHIP
OR ELIGIBLE S CORPORATION DOING BUSINESS WITHIN THIS STATE SHALL BE
ALLOWED TO MAKE AN ANNUAL ELECTION TO BE TAXED PURSUANT TO THIS ARTICLE.
(B) IN ORDER TO BE EFFECTIVE, THE ANNUAL ELECTION MUST BE MADE (1) IF
THE ENTITY IS AN S CORPORATION, BY ANY OFFICER, MANAGER OR SHAREHOLDER
OF THE S CORPORATION WHO IS AUTHORIZED UNDER THE LAW OF THE STATE WHERE
THE CORPORATION IS INCORPORATED OR UNDER THE S CORPORATION'S ORGANIZA-
TIONAL DOCUMENTS TO MAKE THE ELECTION AND WHO REPRESENTS TO HAVING SUCH
AUTHORIZATION UNDER PENALTY OF PERJURY; OR (2) IF THE ENTITY IS NOT AN S
CORPORATION, BY ANY MEMBER, PARTNER, OWNER, OR OTHER INDIVIDUAL WITH
AUTHORITY TO BIND THE ENTITY OR SIGN RETURNS PURSUANT TO SECTION SIX
HUNDRED FIFTY-THREE OF THIS CHAPTER.
(C) IF THE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION REPORTS ON A
CALENDAR YEAR BASIS, THE ANNUAL ELECTION MUST BE MADE BY DECEMBER FIRST
S. 2509--A 15 A. 3009--A
OF EACH CALENDAR YEAR AND WILL TAKE EFFECT FOR THE IMMEDIATELY SUCCEED-
ING CALENDAR YEAR. IF AN ELECTION IS MADE AFTER DECEMBER FIRST OF A
CALENDAR YEAR, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING CALEN-
DAR YEAR.
(D) IF THE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION REPORTS ON A
FISCAL YEAR BASIS, THE ANNUAL ELECTION MUST BE MADE BY THE FIRST DAY OF
THE LAST FULL MONTH PRIOR TO THE START OF THE FISCAL YEAR AND WILL TAKE
EFFECT FOR THE IMMEDIATELY SUCCEEDING FISCAL YEAR. IF AN ELECTION IS
MADE AFTER SUCH DATE, IT WILL FIRST TAKE EFFECT IN THE SECOND SUCCEEDING
FISCAL YEAR.
(E) (1) TERMINATION OF ELECTION. AN ELECTION PURSUANT TO SUBDIVISION
(A) OF THIS SECTION SHALL BE TERMINATED WHENEVER, AT ANY TIME DURING THE
TAXABLE YEAR, THE TAXPAYER CEASES TO BE AN ELIGIBLE PARTNERSHIP OR
ELIGIBLE S CORPORATION.
(2) EFFECTIVE DATE OF TERMINATION. THE TERMINATION OF AN ELECTION IS
EFFECTIVE IMMEDIATELY UPON THE TAXPAYER CEASING TO BE AN ELIGIBLE PART-
NERSHIP OR ELIGIBLE S CORPORATION AND NO TAX WILL BE DUE PURSUANT TO
THIS ARTICLE FOR THE TAXABLE YEAR.
(3) ABATEMENT OF PENALTIES. IF A TERMINATION OCCURS PURSUANT TO THIS
SUBDIVISION SOLELY BECAUSE A PARTNER, MEMBER OR SHAREHOLDER OF AN OTHER-
WISE ELIGIBLE PARTNERSHIP OR ELIGIBLE S CORPORATION DIED DURING THE
TAXABLE YEAR AND THE SUCCESSOR TO THE DECEDENT'S INTEREST IN THE PART-
NERSHIP OR S CORPORATION IS NOT AN INDIVIDUAL, NO ADDITION TO TAX WILL
BE IMPOSED PURSUANT TO SUBSECTION (C) OF SECTION SIX HUNDRED EIGHTY-FIVE
OF THIS CHAPTER ON THE PARTNERS, MEMBERS AND SHAREHOLDERS OF SUCH PART-
NERSHIP OR S CORPORATION SOLELY FOR UNDERPAYMENT OF ESTIMATED PERSONAL
INCOME TAX AS A RESULT OF THE TERMINATION OF THE ELECTION MADE PURSUANT
TO THIS ARTICLE.
§ 862. IMPOSITION AND RATE OF TAX. (A) GENERAL. A TAX IS HEREBY
IMPOSED FOR EACH TAXABLE YEAR ON THE PARTNERSHIP TAXABLE INCOME OF EVERY
ELECTING PARTNERSHIP DOING BUSINESS WITHIN THIS STATE AND ON THE S
CORPORATION TAXABLE INCOME OF EVERY ELECTING S CORPORATION DOING BUSI-
NESS WITHIN THIS STATE. THIS TAX SHALL BE IN ADDITION TO ANY OTHER TAXES
IMPOSED AND SHALL BE AT THE RATE OF SIX AND EIGHTY-FIVE HUNDREDTHS
PERCENT FOR EACH TAXABLE YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWENTY-TWO.
(B) ALLOCATION TO NEW YORK BY AN ELECTING PARTNERSHIP. IN DETERMINING
THE AMOUNT OF PARTNERSHIP TAXABLE INCOME, THE ADJUSTED NET INCOME OF THE
ELECTING PARTNERSHIP SHALL BE ALLOCATED TO THIS STATE PURSUANT TO THE
PRINCIPLES OF ARTICLE TWENTY-TWO OF THIS CHAPTER.
(C) ALLOCATION TO NEW YORK BY AN ELECTING S CORPORATION. IN DETERMIN-
ING THE AMOUNT OF S CORPORATION TAXABLE INCOME, THE ADJUSTED NET INCOME
OF THE ELECTING S CORPORATION SHALL BE ALLOCATED TO THIS STATE BY MULTI-
PLYING THE ADJUSTED NET INCOME OF THE ELECTING S CORPORATION BY THE
BUSINESS APPORTIONMENT FACTOR OF THE ELECTING S CORPORATION AS CALCU-
LATED PURSUANT TO SECTION TWO HUNDRED TEN-A OF THIS CHAPTER.
§ 863. PASS-THROUGH ENTITY TAX CREDIT. AN INDIVIDUAL SUBJECT TO TAX
UNDER ARTICLE TWENTY-TWO OF THIS CHAPTER THAT IS A PARTNER OR MEMBER IN
AN ELECTING PARTNERSHIP OR A SHAREHOLDER OF AN ELECTING S CORPORATION
SUBJECT TO TAX UNDER THIS ARTICLE SHALL BE ALLOWED A CREDIT AGAINST THE
TAX IMPOSED PURSUANT TO ARTICLE TWENTY-TWO OF THIS CHAPTER, COMPUTED
PURSUANT TO THE PROVISIONS OF SUBSECTION (KKK) OF SECTION SIX HUNDRED
SIX OF THIS CHAPTER.
§ 864. PAYMENT OF ESTIMATED TAX. (A) DEFINITION OF ESTIMATED TAX.
ESTIMATED TAX MEANS THE AMOUNT THAT AN ELECTING PARTNERSHIP OR ELECTING
S. 2509--A 16 A. 3009--A
S CORPORATION ESTIMATES TO BE THE TAX IMPOSED BY SECTION EIGHT HUNDRED
SIXTY-TWO OF THIS ARTICLE FOR THE CURRENT TAXABLE YEAR.
(B) GENERAL. THE ESTIMATED TAX SHALL BE PAID AS FOLLOWS FOR AN ELECT-
ING PARTNERSHIP AND AN ELECTING S CORPORATION THAT REPORTS ON A CALENDAR
YEAR BASIS:
(1) THE ESTIMATED TAX SHALL BE PAID IN FOUR EQUAL INSTALLMENTS ON
MARCH FIFTEENTH, JUNE FIFTEENTH, SEPTEMBER FIFTEENTH AND DECEMBER
FIFTEENTH.
(2) THE AMOUNT OF ANY REQUIRED INSTALLMENT SHALL BE TWENTY-FIVE
PERCENT OF THE REQUIRED ANNUAL PAYMENT.
(3) THE REQUIRED ANNUAL PAYMENT IS THE LESSER OF: (A) NINETY PERCENT
OF THE TAX SHOWN ON THE RETURN FOR THE TAXABLE YEAR; OR (B) ONE HUNDRED
PERCENT OF THE TAX SHOWN ON THE RETURN OF THE ELECTING PARTNERSHIP OR
ELECTING S CORPORATION FOR THE PRECEDING TAXABLE YEAR.
(C) APPLICATION TO SHORT TAXABLE YEAR. THIS SECTION SHALL APPLY TO A
TAXABLE YEAR OF LESS THAN TWELVE MONTHS IN ACCORDANCE WITH PROCEDURES
ESTABLISHED BY THE COMMISSIONER.
(D) FISCAL YEAR. THIS SECTION SHALL APPLY TO A TAXABLE YEAR OTHER THAN
A CALENDAR YEAR BY THE SUBSTITUTION OF THE MONTHS OF SUCH FISCAL YEAR
FOR THE CORRESPONDING MONTHS SPECIFIED IN THIS SECTION.
(E) INSTALLMENTS PAID IN ADVANCE. AN ELECTING PARTNERSHIP OR ELECTING
S CORPORATION MAY ELECT TO PAY ANY INSTALLMENT OF ITS ESTIMATED TAX
PRIOR TO THE DATE PRESCRIBED FOR THE PAYMENT THEREOF.
§ 865. FILING OF RETURN AND PAYMENT OF TAX. (A) GENERAL. ON OR BEFORE
THE FIFTEENTH DAY OF THE THIRD MONTH FOLLOWING THE CLOSE OF THE TAXABLE
YEAR, EACH ELECTING PARTNERSHIP AND EACH ELECTING S CORPORATION MUST
FILE A RETURN FOR THE TAXABLE YEAR REPORTING THE INFORMATION REQUIRED
PURSUANT TO THIS ARTICLE.
(B) CERTIFICATION OF ELIGIBILITY. EVERY RETURN FILED PURSUANT TO
SUBDIVISION (A) OF THIS SECTION SHALL INCLUDE, IN A FORMAT AS PRESCRIBED
BY THE COMMISSIONER, A CERTIFICATION BY AN INDIVIDUAL AUTHORIZED TO ACT
ON BEHALF OF THE ELECTING PARTNERSHIP OR ELECTING S CORPORATION THAT THE
TAXPAYER:
(1) MADE A TIMELY, VALID ELECTION TO BE SUBJECT TO TAX PURSUANT TO
THIS ARTICLE;
(2) WAS AT ALL TIMES DURING THE TAXABLE YEAR ELIGIBLE TO MAKE SUCH AN
ELECTION, UNLESS SUCH RETURN INCLUDES A NOTIFICATION OF TERMINATION AS
PROVIDED FOR IN SUBDIVISION (C) OF THIS SECTION; AND
(3) THAT ALL STATEMENTS CONTAINED THEREIN ARE TRUE.
(C) NOTIFICATION OF TERMINATION. IF AN ELECTION IS TERMINATED DURING
THE TAXABLE YEAR PURSUANT TO SUBDIVISION (E) OF SECTION EIGHT HUNDRED
SIXTY-ONE OF THIS ARTICLE, THE ELECTING PARTNERSHIP OR ELECTING S CORPO-
RATION IS REQUIRED TO FILE A RETURN PURSUANT TO SUBDIVISION (A) OF THIS
SECTION NOTIFYING THE COMMISSIONER OF SUCH TERMINATION. SUCH NOTIFICA-
TION WILL BE CONSIDERED A CLAIM FOR A CREDIT OR REFUND OF AN OVERPAYMENT
OF PASS-THROUGH ENTITY TAX OF ANY ESTIMATED PAYMENTS MADE PURSUANT TO
THIS ARTICLE FOR THE TAXABLE YEAR CONTAINING THE DATE OF TERMINATION.
(D) INFORMATION ON RETURN. EACH ELECTING PARTNERSHIP AND ELECTING S
CORPORATION SHALL REPORT ON SUCH RETURN:
(1) THE BALANCE OF ANY TAX SHOWN ON SUCH RETURN, NOT PREVIOUSLY PAID
AS INSTALLMENTS OF ESTIMATED TAX, SHALL BE PAID WITH SUCH RETURN;
(2) IDENTIFYING INFORMATION OF ALL PARTNERS, MEMBERS AND/OR SHAREHOLD-
ERS ELIGIBLE TO RECEIVE A CREDIT PURSUANT TO SECTION EIGHT HUNDRED SIXTY
THREE AND SUCH PARTNER'S, MEMBER'S AND/OR SHAREHOLDER'S DISTRIBUTIVE OR
PRO RATA SHARE OF THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING
PARTNERSHIP OR S CORPORATION; AND
S. 2509--A 17 A. 3009--A
(3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER.
(E) INFORMATION PROVIDED TO PARTNERS. EACH ELECTING PARTNERSHIP
SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH PARTNER OR MEMBER
ITS DISTRIBUTIVE SHARE OF:
(1) THE PARTNERSHIP TAXABLE INCOME OF THE ELECTING PARTNERSHIP;
(2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING PARTNERSHIP;
AND
(3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER.
(F) INFORMATION PROVIDED TO SHAREHOLDERS. EACH ELECTING S CORPORATION
SUBJECT TO TAX UNDER THIS ARTICLE SHALL REPORT TO EACH SHAREHOLDER ITS
PRO RATA SHARE OF:
(1) THE S CORPORATION TAXABLE INCOME OF THE ELECTING S CORPORATION;
(2) THE PASS-THROUGH ENTITY TAX IMPOSED ON THE ELECTING S CORPORATION;
AND
(3) ANY OTHER INFORMATION AS REQUIRED BY THE COMMISSIONER.
§ 866. ACCOUNTING PERIODS AND METHODS. (A) ACCOUNTING PERIODS. AN
ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR PURSUANT
TO THIS ARTICLE SHALL BE THE SAME AS THE ELECTING PARTNERSHIP'S OR
ELECTING S CORPORATION'S TAXABLE YEAR FOR FEDERAL INCOME TAX PURPOSES.
(B) ACCOUNTING METHODS. AN ELECTING PARTNERSHIP'S OR ELECTING S CORPO-
RATION'S METHOD OF ACCOUNTING PURSUANT TO THIS ARTICLE SHALL BE THE SAME
AS THE ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF
ACCOUNTING FOR FEDERAL INCOME TAX PURPOSES.
(C) CHANGE OF ACCOUNTING PERIOD OR METHOD. (1) IF AN ELECTING PARTNER-
SHIP'S OR ELECTING S CORPORATION'S TAXABLE YEAR OR METHOD OF ACCOUNTING
IS CHANGED FOR FEDERAL INCOME TAX PURPOSES, THE TAXABLE YEAR OR METHOD
OF ACCOUNTING FOR PURPOSES OF THIS ARTICLE SHALL BE SIMILARLY CHANGED.
(2) IF AN ELECTING PARTNERSHIP'S OR ELECTING S CORPORATION'S METHOD OF
ACCOUNTING IS CHANGED, ANY ADDITIONAL TAX THAT RESULTS FROM ADJUSTMENTS
DETERMINED TO BE NECESSARY SOLELY BY REASON OF SUCH CHANGE SHALL NOT BE
GREATER THAN IF SUCH ADJUSTMENTS WERE RATABLY ALLOCATED AND INCLUDED FOR
THE TAXABLE YEAR OF THE CHANGE AND THE PRECEDING TAXABLE YEARS, NOT IN
EXCESS OF TWO, DURING WHICH THE ENTITY USED THE METHOD OF ACCOUNTING
FROM WHICH THE CHANGE IS MADE.
§ 867. PROCEDURAL PROVISIONS. (A) GENERAL. ALL PROVISIONS OF ARTICLE
TWENTY-TWO OF THIS CHAPTER WILL APPLY TO THE PROVISIONS OF THIS ARTICLE
IN THE SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
OF ARTICLE TWENTY-TWO OF THIS CHAPTER HAD BEEN INCORPORATED IN FULL INTO
THIS ARTICLE AND HAD BEEN SPECIFICALLY ADJUSTED FOR AND EXPRESSLY
REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT
ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR
IS NOT RELEVANT TO THIS ARTICLE. NOTWITHSTANDING THE PRECEDING SENTENCE,
NO CREDIT AGAINST TAX IN ARTICLE TWENTY-TWO OF THIS CHAPTER CAN BE USED
TO OFFSET THE TAX DUE PURSUANT TO THIS ARTICLE.
(B) CROSS ARTICLE FILINGS. NOTWITHSTANDING ANY OTHER PROVISIONS OF
THIS ARTICLE:
(1) THE COMMISSIONER MAY REQUIRE THE FILING OF ONE RETURN WHICH, IN
ADDITION TO THE RETURN PROVIDED FOR IN SECTION EIGHT HUNDRED SIXTY-FIVE
OF THIS ARTICLE, MAY ALSO INCLUDE ANY OF THE RETURNS REQUIRED TO BE
FILED BY A TAXPAYER PURSUANT TO THE PROVISIONS OF SUBSECTION (C) OF
SECTION SIX HUNDRED FIFTY-EIGHT OR ARTICLE NINE-A OF THIS CHAPTER.
(2) WHERE SUCH RETURN IS REQUIRED, THE COMMISSIONER MAY ALSO REQUIRE
THE PAYMENT WITH IT OF A SINGLE AMOUNT WHICH SHALL EQUAL THE TOTAL OF
THE AMOUNTS (TOTAL TAXES LESS ANY CREDITS OR REFUNDS) THAT WOULD HAVE
BEEN REQUIRED TO BE PAID WITH THE RETURNS PURSUANT TO THE PROVISIONS OF
THIS ARTICLE AND THE PROVISIONS OF ARTICLE TWENTY-TWO OF THIS CHAPTER OR
S. 2509--A 18 A. 3009--A
THE PROVISIONS OF ARTICLE NINE-A OF THIS CHAPTER, WHICHEVER IS APPLICA-
BLE.
(3) NOTWITHSTANDING ANY OTHER LAW TO THE CONTRARY, THE COMMISSIONER
MAY REQUIRE THAT ALL FORMS OR RETURNS PURSUANT TO THIS ARTICLE MUST BE
FILED ELECTRONICALLY AND ALL PAYMENTS OF TAX MUST BE PAID ELECTRON-
ICALLY.
(C) LIABILITY FOR TAX. AN ELECTING PARTNERSHIP OR ELECTING S CORPO-
RATION SHALL BE LIABLE FOR THE TAX DUE PURSUANT TO THIS ARTICLE. IN
ADDITION, EVERY INDIVIDUAL ELIGIBLE TO CLAIM A CREDIT PURSUANT TO
SUBSECTION (KKK) OF SECTION SIX HUNDRED SIX OF THIS CHAPTER BECAUSE HE
OR SHE IS A PARTNER OR MEMBER IN AN ELECTING PARTNERSHIP OR A SHAREHOLD-
ER IN AN ELECTING S CORPORATION SHALL BE JOINTLY AND SEVERALLY LIABLE
FOR THE TAX IMPOSED PURSUANT TO THIS ARTICLE ON SUCH ELECTING PARTNER-
SHIP OR ELECTING S CORPORATION.
(D) DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES, INTEREST, PENAL-
TIES, AND FEES COLLECTED OR RECEIVED BY THE COMMISSIONER PURSUANT TO
THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF PURSUANT TO THE
PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS CHAPTER.
(E) SECRECY PROVISION. ALL THE PROVISIONS OF PARAGRAPHS ONE AND TWO OF
SUBSECTION (E) OF SECTION SIX HUNDRED NINETY-SEVEN OF THIS CHAPTER WILL
APPLY TO THE PROVISIONS OF THIS ARTICLE. NOTWITHSTANDING ANY PROVISIONS
OF THIS CHAPTER TO THE CONTRARY, THE COMMISSIONER MAY DISCLOSE INFORMA-
TION AND RETURNS REGARDING THE CALCULATION AND PAYMENT OF THE TAX
IMPOSED BY THIS ARTICLE AND ANY CREDIT CALCULATED ON TAXES PAID PURSUANT
TO THIS ARTICLE BY AN ELECTING PARTNERSHIP OR ELECTING S CORPORATION TO
A PARTNER, MEMBER OR SHAREHOLDER OF SUCH ENTITY.
§ 2. Section 606 of the tax law is amended by adding a new subsection
(kkk) to read as follows:
(KKK) CREDIT FOR PASS-THROUGH ENTITY TAX. (1) A TAXPAYER PARTNER OR
MEMBER OF AN ELECTING PARTNERSHIP AND A TAXPAYER SHAREHOLDER OF AN
ELECTING S CORPORATION SUBJECT TO TAX UNDER ARTICLE TWENTY-FOUR-A OF
THIS CHAPTER SHALL BE ENTITLED TO A CREDIT AGAINST THE TAX IMPOSED BY
THIS ARTICLE AS PROVIDED IN THIS SUBSECTION. FOR PURPOSES OF THIS
SUBSECTION, THE TERMS "ELECTING PARTNERSHIP," "ELECTING S CORPORATION,"
AND "PASS-THROUGH ENTITY TAX" SHALL HAVE THE SAME MEANINGS AS USED IN
ARTICLE TWENTY-FOUR-A OF THIS CHAPTER.
(2) THE CREDIT SHALL BE EQUAL TO THE PRODUCT OF:
(I) THE TAXPAYER'S PROFIT PERCENTAGE OF THE ELECTING PARTNERSHIP OR
PRO RATA SHARE OF THE ELECTING S CORPORATION;
(II) NINETY-TWO PERCENT; AND
(III) THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR
S CORPORATION FOR THE TAXABLE YEAR.
(3) IF A TAXPAYER IS A PARTNER, MEMBER OR SHAREHOLDER IN MULTIPLE
ELECTING PARTNERSHIPS AND/OR ELECTING S CORPORATIONS SUBJECT TO TAX
PURSUANT TO ARTICLE TWENTY-FOUR-A OF THIS CHAPTER, THE TAXPAYER'S CREDIT
SHALL BE THE SUM OF SUCH CREDITS CALCULATED PURSUANT TO PARAGRAPH TWO OF
THIS SUBSECTION WITH REGARD TO EACH ENTITY IN WHICH THE TAXPAYER HAS A
DIRECT OWNERSHIP INTEREST.
(4) IF THE AMOUNT OF THE CREDIT ALLOWABLE PURSUANT TO THIS SUBSECTION
FOR ANY TAXABLE YEAR EXCEEDS THE TAX DUE FOR SUCH YEAR PURSUANT TO THIS
ARTICLE, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT, TO BE CREDITED
OR REFUNDED, WITHOUT INTEREST.
§ 3. Section 620 of the tax law, as amended by chapter 2 of the laws
of 1962, subsection (a) as amended and paragraph 3 of subsection (b) as
added by chapter 274 of the laws of 1987, and subsection (d) as added by
chapter 166 of 1991, is amended to read as follows:
S. 2509--A 19 A. 3009--A
§ 620. Credit for income tax of another state. (a) General. A resident
shall be allowed a credit against the tax otherwise due under this arti-
cle for any income tax imposed ON SUCH INDIVIDUAL for the taxable year
by another state of the United States, a political subdivision of such
state, the District of Columbia or a province of Canada, upon income
both derived therefrom and subject to tax under this article. The term
"income tax imposed" in the previous sentence shall not include the
portion of such tax (determined in the manner provided for in section
six hundred twenty-A) which is imposed upon the ordinary income portion
(or part thereof) of a lump sum distribution which is subject to the
separate tax imposed by section [six hundred one-C] SIX HUNDRED THREE.
(b) PASS-THROUGH ENTITY TAXES. (1) A RESIDENT SHALL BE ALLOWED A CRED-
IT AGAINST THE TAX OTHERWISE DUE PURSUANT TO THIS ARTICLE FOR ANY PASS-
THROUGH ENTITY TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED PURSUANT TO
ARTICLE TWENTY-FOUR-A OF THIS CHAPTER IMPOSED ON THE INCOME OF A PART-
NERSHIP OR S CORPORATION OF WHICH THE RESIDENT IS A PARTNER, MEMBER OR
SHAREHOLDER FOR THE TAXABLE YEAR BY ANOTHER STATE OF THE UNITED STATES,
A POLITICAL SUBDIVISION OF SUCH STATE, OR THE DISTRICT OF COLUMBIA UPON
INCOME BOTH DERIVED THEREFROM AND SUBJECT TO TAX UNDER THIS ARTICLE.
(2) SUCH CREDIT SHALL BE EQUAL TO THE PRODUCT OF:
(A) THE TAXPAYER'S PROFIT PERCENTAGE OF THE ELECTING PARTNERSHIP OR
PRO RATA SHARE OF THE ELECTING S CORPORATION;
(B) NINETY-TWO PERCENT; AND
(C) THE PASS-THROUGH ENTITY TAX PAID BY THE ELECTING PARTNERSHIP OR S
CORPORATION TO SUCH OTHER STATE, POLITICAL SUBDIVISION OF SUCH OTHER
STATE OR THE DISTRICT OF COLUMBIA.
(3) HOWEVER, SUCH CREDIT WILL BE ALLOWED ON TAX PAID ONLY IF:
(A) THE STATE OF THE UNITED STATES, POLITICAL SUBDIVISION OF SUCH
STATE, OR THE DISTRICT OF COLUMBIA IMPOSING SUCH TAX ALSO IMPOSES AN
INCOME TAX SUBSTANTIALLY SIMILAR TO THE TAX IMPOSED UNDER THIS ARTICLE;
AND
(B) IN THE CASE OF TAXES PAID BY AN S CORPORATION, SUCH S CORPORATION
WAS TREATED AS A NEW YORK S CORPORATION.
(C) Limitations. (1) The credit under this section shall not exceed
the percentage of the tax otherwise due under this article determined by
dividing the portion of the taxpayer's New York income subject to taxa-
tion by such other jurisdiction by the total amount of the taxpayer's
New York income.
(2) The credit under this section shall not reduce the tax otherwise
due under this article to an amount less than would have been due if the
income subject to taxation by such other jurisdiction were excluded from
the taxpayer's New York income.
(3) In the case of a taxpayer who elects to claim the foreign tax
credit for federal income tax purposes, the credit under this section
for income tax imposed by a province of Canada shall be allowed for that
portion of the provincial tax not claimed for federal purposes for the
taxable year or a preceding taxable year, provided however, to the
extent the provincial tax is claimed for federal purposes for a succeed-
ing taxable year, the credit under this section must be added back in
such succeeding taxable year. The provincial tax shall be deemed to be
claimed last for federal income tax purposes and for purposes of this
subsection.
[(c)] (D) Definition. For purposes of this section New York income
means:
(1) the New York adjusted gross income of an individual, or
S. 2509--A 20 A. 3009--A
(2) the amount of the income of an estate or trust, determined as if
the estate or trust were an individual computing his New York adjusted
gross income under section six hundred twelve.
[(d) S corporation shareholders. In the case of a shareholder of an S
corporation, the term "income tax" in subsection (a) of this section
shall not include any such tax imposed upon or payable by the corpo-
ration, but shall include any such tax with respect to the income of the
corporation imposed upon or payable by the shareholder, without regard
to whether an election independent of the federal S election was
required to effect such imposition upon the shareholder.]
§ 4. Subdivision 1 of section 171-a of the tax law, as amended by
section 3 of part XX of chapter 59 of the laws of 2019, 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-D, twenty-one, twenty-two, twenty-four, TWENTY-
FOUR-A, twenty-six, twenty-eight (except as otherwise provided in
section eleven hundred two or eleven hundred three thereof),
twenty-eight-A, twenty-nine-B, thirty-one (except as otherwise provided
in section fourteen hundred twenty-one thereof), thirty-three and thir-
ty-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 arti-
cles of this chapter out of which amount the comptroller shall pay any
refunds or reimbursements to which taxpayers 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
S. 2509--A 21 A. 3009--A
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 seventy-one-e of this arti-
cle, (iii) and except further that, notwithstanding any law, the comp-
troller shall credit to the revenue arrearage account, pursuant to
section ninety-one-a of the state finance law, that amount of overpay-
ment of tax imposed by article nine, nine-A, twenty-two, thirty, thir-
ty-A, thirty-B or thirty-three of this chapter, and any interest there-
on, 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.
§ 5. Subdivision 1 of section 171-a of the tax law, as amended by
section 4 of part XX of chapter 59 of the laws of 2019, 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-
S. 2509--A 22 A. 3009--A
of), twenty-D, twenty-one, twenty-two, twenty-four, TWENTY-FOUR-A, twen-
ty-six, twenty-eight (except as otherwise provided in section eleven
hundred two or eleven hundred three thereof), twenty-eight-A, twenty-
nine-B, thirty-one (except as otherwise provided in section fourteen
hundred twenty-one thereof), thirty-three and thirty-three-A of this
chapter shall be deposited daily in one account with such responsible
banks, banking houses or trust companies as may be designated by the
comptroller, to the credit of the comptroller. Such an account may be
established in one or more of such depositories. Such deposits shall be
kept separate and apart from all other money in the possession of the
comptroller. The comptroller shall require adequate security from all
such depositories. Of the total revenue collected or received under such
articles of this chapter, the comptroller shall retain in the comp-
troller'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 taxpayers 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 pursu-
ant to subdivision five of section one hundred seventy-one-d and subdi-
vision six of section one hundred seventy-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, thirty, 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 cred-
it to the special offset fiduciary account, pursuant to section ninety-
one-c of the state finance law, any such amount creditable as a liabil-
ity 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
S. 2509--A 23 A. 3009--A
is certified to the comptroller by the commissioner 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 article twenty-two of this chap-
ter 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 seven-
ty-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 corporation, 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.
§ 6. Subdivisions 2, 3 and paragraph (a) of subdivision 5 of section
92-z of the state finance law, as amended by section 5 of part MM of
chapter 59 of the laws of 2018, are amended to read as follows:
2. Such fund shall consist of (a) fifty percent of receipts from the
imposition of personal income taxes pursuant to article twenty-two of
the tax law, less such amounts as the commissioner of taxation and
finance may determine to be necessary for refunds, [and] (b) fifty
percent of receipts from the imposition of employer compensation expense
taxes pursuant to article twenty-four of the tax law, less such amounts
as the commissioner of taxation and finance may determine to be neces-
sary for refunds, AND (C) FIFTY PERCENT OF RECEIPTS FROM THE IMPOSITION
OF THE PASS-THROUGH ENTITY TAXES PURSUANT TO ARTICLE TWENTY-FOUR-A OF
THE TAX LAW, LESS SUCH AMOUNTS AS THE COMMISSION OF TAXATION AND FINANCE
MAY DETERMINE TO BE NECESSARY FOR REFUNDS.
3. (a) Beginning on the first day of each month, the comptroller shall
deposit all of the receipts collected pursuant to section six hundred
seventy-one of the tax law in the revenue bond tax fund until the amount
of monthly receipts anticipated to be deposited pursuant to the certif-
icate required in paragraph (b) of subdivision five of this section are
met. On or before the twelfth day of each month, the commissioner of
taxation and finance shall certify to the state comptroller the amounts
specified in paragraph (a) of subdivision two of this section relating
to the preceding month and, in addition, no later than March thirty-
first of each fiscal year the commissioner of taxation and finance shall
certify such amounts relating to the last month of such fiscal year. The
amounts so certified shall be deposited by the state comptroller in the
revenue bond tax fund.
(b) Beginning on the first day of each month, the comptroller shall
deposit all of the receipts collected pursuant to section eight hundred
fifty-four of the tax law in the revenue bond tax fund until the amount
of monthly receipts anticipated to be deposited pursuant to the certif-
icate required in paragraph (b) of subdivision five of this section are
met. On or before the twelfth day of each month, the commissioner of
S. 2509--A 24 A. 3009--A
taxation and finance shall certify to the state comptroller the amounts
specified in paragraph (b) of subdivision two of this section relating
to the preceding month and, in addition, no later than March thirty-
first of each fiscal year the commissioner of taxation and finance shall
certify such amounts relating to the last month of such fiscal year. The
amounts so certified shall be deposited by the state comptroller in the
revenue bond tax fund.
(C) BEGINNING ON THE FIRST DAY OF EACH MONTH, THE COMPTROLLER SHALL
DEPOSIT ALL OF THE RECEIPTS COLLECTED PURSUANT TO SECTIONS EIGHT HUNDRED
SIXTY-FOUR AND EIGHT HUNDRED SIXTY-FIVE OF THE TAX LAW IN THE REVENUE
BOND TAX FUND UNTIL THE AMOUNT OF MONTHLY RECEIPTS ANTICIPATED TO BE
DEPOSITED PURSUANT TO THE CERTIFICATE REQUIRED IN PARAGRAPH (B) OF
SUBDIVISION FIVE OF THIS SECTION ARE MET. ON OR BEFORE THE TWELFTH DAY
OF EACH MONTH, THE COMMISSIONER OF TAXATION AND FINANCE SHALL CERTIFY TO
THE STATE COMPTROLLER THE AMOUNTS SPECIFIED IN PARAGRAPH (C) OF SUBDIVI-
SION TWO OF THIS SECTION RELATING TO THE PRECEDING MONTH AND, IN ADDI-
TION, NO LATER THAN MARCH THIRTY-FIRST OF EACH FISCAL YEAR THE COMMIS-
SIONER OF TAXATION AND FINANCE SHALL CERTIFY SUCH AMOUNTS RELATING TO
THE LAST MONTH OF SUCH FISCAL YEAR. THE AMOUNTS SO CERTIFIED SHALL BE
DEPOSITED BY THE STATE COMPTROLLER IN THE REVENUE BOND TAX FUND.
(a) The state comptroller shall from time to time, but in no event
later than the fifteenth day of each month (other than the last month of
the fiscal year) and no later than the thirty-first day of the last
month of each fiscal year, pay over and distribute to the credit of the
general fund of the state treasury all moneys in the revenue bond tax
fund, if any, in excess of the aggregate amount required to be set aside
for the payment of cash requirements pursuant to paragraph (b) of this
subdivision, provided that an appropriation has been made to pay all
amounts specified in any certificate or certificates delivered by the
director of the budget pursuant to paragraph (b) of this subdivision as
being required by each authorized issuer as such term is defined in
section sixty-eight-a of this chapter for the payment of cash require-
ments of such issuers for such fiscal year. Subject to the rights of
holders of debt of the state, in no event shall the state comptroller
pay over and distribute any moneys on deposit in the revenue bond tax
fund to any person other than an authorized issuer pursuant to such
certificate or certificates (i) unless and until the aggregate of all
cash requirements certified to the state comptroller as required by such
authorized issuers to be set aside pursuant to paragraph (b) of this
subdivision for such fiscal year shall have been appropriated to such
authorized issuers in accordance with the schedule specified in the
certificate or certificates filed by the director of the budget or (ii)
if, after having been so certified and appropriated, any payment
required to be made pursuant to paragraph (b) of this subdivision has
not been made to the authorized issuers which was required to have been
made pursuant to such certificate or certificates; provided, however,
that no person, including such authorized issuers or the holders of
revenue bonds, shall have any lien on moneys on deposit in the revenue
bond tax fund. Any agreement entered into pursuant to section sixty-
eight-c of this chapter related to any payment authorized by this
section shall be executory only to the extent of such revenues available
to the state in such fund. Notwithstanding subdivisions two and three of
this section, in the event the aggregate of all cash requirements certi-
fied to the state comptroller as required by such authorized issuers to
be set aside pursuant to paragraph (b) of this subdivision for the
fiscal year beginning on April first shall not have been appropriated to
S. 2509--A 25 A. 3009--A
such authorized issuers in accordance with the schedule specified in the
certificate or certificates filed by the director of the budget or, (ii)
if, having been so certified and appropriated, any payment required to
be made pursuant to paragraph (b) of this subdivision has not been made
pursuant to such certificate or certificates, all receipts collected
pursuant to section six hundred seventy-one of the tax law, [and]
section eight hundred fifty-four of the tax law, SECTION EIGHT HUNDRED
SIXTY-FOUR OF THE TAX LAW, AND SECTION EIGHT HUNDRED SIXTY-FIVE OF THE
TAX LAW shall be deposited in the revenue bond tax fund until the great-
er of forty percent of the aggregate of the receipts from the imposition
of (A) the personal income tax imposed by article twenty-two of the tax
law, [and] (B) the employer compensation expense tax imposed by article
twenty-four of the tax law, AND (C) THE PASS-THROUGH ENTITY TAX IMPOSED
BY ARTICLE TWENTY-FOUR-A OF THE TAX LAW for the fiscal year beginning on
April first and as specified in the certificate or certificates filed by
the director of the budget pursuant to this paragraph or a total of
twelve billion dollars has been deposited in the revenue bond tax fund.
Notwithstanding any other provision of law, if the state has appropri-
ated and paid to the authorized issuers the amounts necessary for the
authorized issuers to meet their requirements for the current fiscal
year pursuant to the certificate or certificates submitted by the direc-
tor of the budget pursuant to paragraph (b) of this section, the state
comptroller shall, on the last day of each fiscal year, pay to the
general fund of the state all sums remaining in the revenue bond tax
fund on such date except such amounts as the director of the budget may
certify are needed to meet the cash requirements of authorized issuers
during the subsequent fiscal year.
§ 7. Subdivision 5 of section 68-c of the state finance law, as
amended by section 6 of part MM of chapter 59 of the laws of 2018, is
amended to read as follows:
5. Nothing contained in this article shall be deemed to restrict the
right of the state to amend, repeal, modify or otherwise alter statutes
imposing or relating to the taxes imposed pursuant to article
twenty-two, [and] article twenty-four, AND ARTICLE TWENTY-FOUR-A of the
tax law. The authorized issuers shall not include within any resolution,
contract or agreement with holders of the revenue bonds issued under
this article any provision which provides that a default occurs as a
result of the state exercising its right to amend, repeal, modify or
otherwise alter the taxes imposed pursuant to article twenty-two, [and]
article twenty-four, AND ARTICLE TWENTY-FOUR-A of the tax law.
§ 8. This act shall take effect immediately and shall apply to all
taxable years beginning on or after January 1, 2022; provided, however,
that the amendments to subdivision 1 of section 171-a of the tax law
made by section four of this act shall not affect the expiration of such
subdivision and shall expire therewith, when upon such date the
provisions of section five of this act shall take effect.
PART D
Section 1. Section 352 of the economic development law is amended by
adding two new subdivisions 5-a and 13-a to read as follows:
5-A. "CHILD CARE SERVICES" MEANS THOSE SERVICES UNDERTAKEN OR SPON-
SORED BY A PARTICIPANT IN THIS PROGRAM MEETING THE REQUIREMENTS OF
"CHILD DAY CARE" AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF
SECTION THREE HUNDRED NINETY OF THE SOCIAL SERVICES LAW OR ANY CHILD
CARE SERVICES IN THE CITY OF NEW YORK WHEREBY A PERMIT TO OPERATE SUCH
S. 2509--A 26 A. 3009--A
CHILD CARE SERVICES IS REQUIRED PURSUANT TO THE HEALTH CODE OF THE CITY
OF NEW YORK.
13-A. "NET NEW CHILD CARE SERVICES EXPENDITURES" MEANS THE CALCULATION
OF NEW, ANNUAL PARTICIPANT EXPENDITURES ON CHILD CARE SERVICES WHETHER
INTERNAL OR PROVIDED BY A THIRD PARTY (INCLUDING COVERAGE FOR FULL OR
PARTIAL DISCOUNT OF EMPLOYEE RATES), MINUS ANY REVENUES RECEIVED BY THE
PARTICIPANT THROUGH A THIRD-PARTY OPERATOR (I.E. RENT PAID TO THE
PARTICIPANT BY THE CHILD CARE PROVIDER) OR EMPLOYEES AND MAY BE FURTHER
DEFINED BY THE COMMISSIONER IN REGULATIONS. FOR THE PURPOSES OF THIS
DEFINITION, EXPENDITURES FOR CHILD CARE SERVICES THAT A PARTICIPANT HAS
INCURRED PRIOR TO ADMISSION TO THIS PROGRAM SHALL NOT BE ELIGIBLE FOR
THE CREDIT.
§ 2. Paragraphs (k) and (l) of subdivision 1 of section 353 of the
economic development law, as amended by section 2 of part L of chapter
59 of the laws of 2020, are amended and a new paragraph (m) is added to
read as follows:
(k) as a life sciences company; [or]
(l) as a company operating in one of the industries listed in para-
graphs (b) through (e) of this subdivision and engaging in a green
project as defined in section three hundred fifty-two of this
article[.]; OR
(M) AS A PARTICIPANT OPERATING IN ONE OF THE INDUSTRIES LISTED IN
PARAGRAPHS (A) THROUGH (K) OF THIS SUBDIVISION AND OPERATING OR SPONSOR-
ING CHILD CARE SERVICES TO ITS EMPLOYEES AS DEFINED IN SECTION THREE
HUNDRED FIFTY-TWO OF THIS ARTICLE.
§ 3. Subdivisions 2 and 6 of section 355 of the economic development
law, subdivision 2 as amended by section 4 of part L of chapter 59 of
the laws of 2020 and subdivision 6 as amended by section 4 of part K of
chapter 59 of the laws of 2015, are amended and a new subdivision 2-a is
added to read as follows:
2. Excelsior investment tax credit component. A participant in the
excelsior jobs program shall be eligible to claim a credit on qualified
investments. In a project that is not a green project, the credit shall
be equal to two percent of the cost or other basis for federal income
tax purposes of the qualified investment. In a green project, the credit
shall be equal to five percent of the cost or other basis for federal
income tax purposes of the qualified investment. IN A PROJECT FOR CHILD
CARE SERVICES, THE CREDIT SHALL BE EQUAL TO FIVE PERCENT OF THE COST OR
OTHER BASIS FOR FEDERAL INCOME TAX PURPOSES OF THE QUALIFIED INVESTMENT
IN CHILD CARE SERVICES. A participant may not claim both the excelsior
investment tax credit component and the investment tax credit set forth
in subdivision one of section two hundred ten-B, subsection (a) of
section six hundred six, the former subsection (i) of section fourteen
hundred fifty-six, or subdivision (q) of section fifteen hundred eleven
of the tax law for the same property in any taxable year, except that a
participant may claim both the excelsior investment tax credit component
and the investment tax credit for research and development property. In
addition, a taxpayer who or which is qualified to claim the excelsior
investment tax credit component and is also qualified to claim the
brownfield tangible property credit component under section twenty-one
of the tax law may claim either the excelsior investment tax credit
component or such tangible property credit component, but not both with
regard to a particular piece of property. A credit may not be claimed
until a business enterprise has received a certificate of tax credit,
provided that qualified investments made on or after the issuance of the
certificate of eligibility but before the issuance of the certificate of
S. 2509--A 27 A. 3009--A
tax credit to the business enterprise, may be claimed in the first taxa-
ble year for which the business enterprise is allowed to claim the cred-
it. Expenses incurred prior to the date the certificate of eligibility
is issued are not eligible to be included in the calculation of the
credit.
2-A. EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT. A PARTICIPANT
ENGAGING IN A NEW EXCELSIOR JOBS PROGRAM PROJECT SHALL BE ELIGIBLE TO
CLAIM A CREDIT ON ITS NET NEW CHILD CARE SERVICES EXPENDITURES FOR ITS
OPERATION, SPONSORSHIP OR DIRECT FINANCIAL SUPPORT OF A CHILD CARE
SERVICES PROGRAM. THE CREDIT SHALL BE EQUAL TO SIX PERCENT OF THE NET
NEW CHILD CARE SERVICES EXPENDITURES AS DEFINED IN THIS CHAPTER.
6. Claim of tax credit. The business enterprise shall be allowed to
claim the credit as prescribed in section thirty-one of the tax law. No
costs used by an entertainment company as the basis for the allowance of
a tax credit described in this section shall be used by such enter-
tainment company to claim any other credit allowed pursuant to the tax
law. NO COSTS OR EXPENDITURES FOR CHILD CARE SERVICES USED BY A PARTIC-
IPANT TO CLAIM THE CREDIT AS PRESCRIBED IN SECTION FORTY-FOUR OF THE TAX
LAW SHALL BE USED FOR THE ALLOWANCE OF A TAX CREDIT DESCRIBED IN THIS
SECTION.
§ 4. Subdivision (a) of section 31 of the tax law is amended by adding
a new paragraph 2-a to read as follows:
(2-A) THE EXCELSIOR CHILD CARE SERVICES TAX CREDIT COMPONENT;
§ 5. Subdivision (a) of section 44 of the tax law, as added by section
1 of part L of chapter 59 of the laws of 2019, is amended to read as
follows:
(a) General. 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 in an amount equal to TWO HUNDRED PERCENT OF the portion of the
credit that is allowed to the taxpayer under section 45F of the internal
revenue code that is attributable to (i) qualified child care expendi-
tures paid or incurred with respect to a qualified child care facility
with a situs in the state, and to (ii) qualified child care resource and
referral expenditures paid or incurred with respect to the taxpayer's
employees working in the state. The credit allowable under this subdivi-
sion for any taxable year shall not exceed [one hundred fifty] FIVE
HUNDRED thousand dollars. If the entity operating the qualified child
care facility is a partnership or a New York S corporation, then such
cap shall be applied at the entity level, so the aggregate credit
allowed to all the partners or shareholders of such entity in a taxable
year does not exceed [one hundred fifty] FIVE HUNDRED thousand dollars.
§ 6. This act shall take effect immediately; provided, however,
section five of this act shall apply to taxable years beginning on or
after January 1, 2022.
PART E
Section 1. Paragraph (b) of subdivision 2 of section 184 of the tax
law, as added by chapter 485 of the laws of 1988, is amended to read as
follows:
(b) (1) A corporation classed as a "taxicab" or "omnibus",
(i) which is organized, incorporated or formed under the laws of any
other state, country or sovereignty, and
(ii) which neither owns nor leases property in this state in a corpo-
rate or organized capacity, nor
S. 2509--A 28 A. 3009--A
(iii) maintains an office in this state in a corporate or organized
capacity, but
(iv) which is doing business or employing capital in this state by
conducting at least one but fewer than twelve trips into this state
during the calendar year, shall [annually pay a tax equal to fifteen
dollars for each trip conducted into this state] NOT BE TAXED UNDER THE
PROVISIONS OF THIS ARTICLE. If the only property a corporation owns or
leases in this state is a vehicle or vehicles used to conduct trips, it
shall not be considered, for purposes of clause (ii) of this subpara-
graph, to be owning or leasing property in this state.
(2) [The commissioner of taxation and finance may prescribe such forms
as he may deem necessary to report such tax in a simplified manner.
(3)] For purposes of this subdivision, a corporation classed as a
"taxicab" or "omnibus" shall be considered to be conducting a trip into
New York state when one of its vehicles enters New York state and trans-
ports passengers to, from, or to and from a location in New York state.
A corporation shall not be considered to be conducting a trip into New
York state if its vehicle only makes incidental stops at locations in
the state while in transit from a location outside New York state to
another location outside New York state. The number of trips a corpo-
ration conducts into New York state shall be calculated by determining
the number of trips each vehicle owned, leased or operated by the corpo-
ration conducts into New York state and adding those numbers together.
[(4) Provided, however, that the provisions of this paragraph shall
not apply to any corporation which does not file its franchise tax
report in a timely manner (determined with regard to any extension of
time for filing).]
§ 2. 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] AND DESCRIBED IN PARAGRAPH (I) OR
(II) OF subsection (a) of section six hundred sixty of this chapter [for
such year], 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 CORPORATION'S STATUS AS A New York S [election] CORPO-
RATION 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 denomi-
nated 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.
§ 3. Subdivision 1-B and subparagraph (ii) of the opening paragraph
and paragraph (k) of subdivision 9 of section 208 of the tax law are
REPEALED.
§ 4. 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,
S. 2509--A 29 A. 3009--A
(i) [where the election provided for in] SUBJECT TO subsection (a) of
section six hundred sixty of this chapter [is in effect with respect to
such corporation], there shall be added to federal unrelated business
taxable income an amount equal to the shareholder'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 TWENTY-TWO, a federal S corporation but a New York C
corporation:
§ 5. Paragraph 18 of subsection (b) of section 612 of the tax law, as
amended by chapter 606 of the laws of 1984, subparagraph (A) as amended
by chapter 28 of the laws of 1987 and subparagraph (B) as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
(18) In the case of a shareholder of an S corporation AS DESCRIBED IN
SUBSECTION (A) OF SECTION SIX HUNDRED SIXTY
(A) [where the election provided for in subsection (a) of section six
hundred sixty is in effect with respect to such corporation,] an amount
equal to his OR HER 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
(B) in the case of a New York S termination year, subparagraph (A) of
this paragraph shall apply to the amount of reductions for taxes deter-
mined under subsection (s) of this section.
§ 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 TWENTY-TWO 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
internal 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
S. 2509--A 30 A. 3009--A
chapter, after December thirty-first, nineteen hundred eighty AND BEFORE
JANUARY FIRST, TWO THOUSAND TWENTY-TWO, 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 TWENTY-TWO, 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, 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.
§ 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-
S. 2509--A 31 A. 3009--A
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 TWENTY-TWO, and in
the case of a corporation taxable under FORMER article 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
(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 TWENTY-TWO, and in the case of a corporation taxable under
FORMER article 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. Paragraph 6 of subsection (c) of section 615 of the tax law is
REPEALED.
§ 13. Subsection (e) of section 615 of the tax law, as amended 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 under subsection (c) or
under paragraph (2) or (3) of subsection (d) required to be made by a
partner or by a shareholder of an S corporation [(other than an S corpo-
ration which is a New York C corporation)], with respect to items of
deduction of a partnership or S corporation shall be determined under
section six hundred seventeen.
(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 deduction shall not apply, except for the modifi-
cation provided under paragraph six of subsection (c).
(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 deduction shall be
adjusted in the same manner that the S corporation's items are adjusted
under subsection (s) of section six hundred twelve.
§ 14. Subsection (a) of section 617 of the tax law, as amended by
chapter 190 of the laws of 1990, is amended to read as follows:
(a) Partner's and shareholder's modifications. In determining New York
adjusted gross income and New York taxable income of a resident partner
or a resident shareholder of an S corporation [(other than an S corpo-
S. 2509--A 32 A. 3009--A
ration which is a New York C corporation)], any modification described
in subsections (b), (c) or (d) of section six hundred twelve, subsection
(c) of section six hundred fifteen or paragraphs (2) or (3) of
subsection (d) of such section, which relates to an item of partnership
or S corporation income, gain, loss or deduction shall be made in
accordance with the partner's distributive share or the shareholder's
pro rata share, for federal income tax purposes, of the item to which
the modification relates. Where a partner's distributive share or a
shareholder's pro rata share of any such item is not required to be
taken into account separately for federal income tax purposes, the part-
ner's or shareholder's share of such item shall be determined in accord-
ance with his OR HER share, for federal income tax purposes, of partner-
ship or S corporation taxable income or loss generally. In the case of a
New York S termination year, his OR HER pro rata share of any such item
shall be determined under subsection (s) of section six hundred twelve.
§ 15. 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 S corporation [for which an election is in
effect pursuant] SUBJECT 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 FORMER ARTICLE thirty-
two of this chapter, in the year that the S corporation sold its assets.
§ 16. 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, and paragraph 2 of subsection (a) as amended by section 71
of part A of chapter 59 of the laws of 2014, 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 S corporation [where the election provided for in] SUBJECT TO
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 OR
HER 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 S corporation [where
the election provided for in] SUBJECT TO subsection (a) of section six
hundred sixty of this article [is in effect], and the S corporation 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 S corporation have made an election
under section 338(h)(10) of the Internal Revenue Code, then any gain
S. 2509--A 33 A. 3009--A
recognized on the deemed asset sale for federal income tax purposes will
be treated as New York source income allocated in a manner consistent
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.
§ 17. Subsection (a) of section 632-a of the tax law, as added by
section 1 of part K of chapter 60 of the laws of 2007, is amended to
read as follows:
(a) General. If (1) substantially all of the services of a personal
service corporation or S corporation are performed for or on behalf of
another corporation, partnership, or other entity and (2) the effect of
forming or availing of such personal service corporation or S corpo-
ration is the avoidance or evasion of New York income tax by reducing
the income of, or in the case of a nonresident, reducing the New York
source income of, or securing the benefit of any expense, deduction,
credit, exclusion, or other allowance for, any employee-owner which
would not otherwise be available, then the commissioner may allocate all
income, deductions, credits, exclusions, and other allowances between
such personal service corporation or S corporation (even if such
personal service corporation or S corporation [is taxed under article
nine-A of this chapter or] is not subject to tax in this state) and its
employee-owners, provided such allocation is necessary to prevent avoid-
ance or evasion of New York state income tax or to clearly reflect the
source and the amount of the income of the personal service corporation
or S corporation or any of its employee-owners.
§ 18. Paragraph 2 and subparagraph (A) of paragraph 4 of subsection
(c) of section 658 of the tax law, paragraph 2 as amended by chapter 190
of the laws of 1990, and subparagraph (A) of paragraph 4 as amended by
section 72 of part A of chapter 59 of the laws of 2014, are amended to
read as follows:
(2) S corporations. Every S corporation [for which the election
provided for in] SUBJECT TO subsection (a) of section six hundred sixty
[is in effect] shall make a return for the taxable year setting forth
all items of income, loss and deduction and such other pertinent infor-
mation as the commissioner of taxation and finance may by regulations
and instructions prescribe. Such return shall be filed on or before the
fifteenth day of the third month following the close of each taxable
year.
(A) General. Every entity which is a partnership, other than a public-
ly traded partnership as defined in section 7704 of the federal Internal
Revenue Code, subchapter K limited liability company or an S corporation
[for which the election provided for in subsection (a) of section six
hundred sixty of this part is in effect], which has partners, members or
shareholders who are nonresident individuals, as defined under
subsection (b) of section six hundred five of this article, or C corpo-
rations, and which has any income derived from New York sources, deter-
mined in accordance with the applicable rules of section six hundred
thirty-one of this article as in the case of a nonresident individual,
shall pay estimated tax on such income on behalf of such partners,
members or shareholders in the manner and at the times prescribed by
subsection (c) of section six hundred eighty-five of this article. For
S. 2509--A 34 A. 3009--A
purposes of this paragraph, the term "estimated tax" shall mean a part-
ner's, member's or shareholder's distributive share or pro rata share of
the entity income derived from New York sources, multiplied by the high-
est rate of tax prescribed by section six hundred one of this article
for the taxable year of any partner, member or shareholder who is an
individual taxpayer, or paragraph (a) of subdivision one of section two
hundred ten of this chapter for the taxable year of any partner, member
or shareholder which is a C corporation, whether or not such C corpo-
ration is subject to tax under article nine, nine-A or thirty-three of
this chapter, and reduced by the distributive share or pro rata share of
any credits determined under section one hundred eighty-seven, one
hundred eighty-seven-a, six hundred six or fifteen hundred eleven of
this chapter, whichever is applicable, derived from the entity.
§ 19. 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, paragraphs 4 and 5 of subsection (b) as added and
paragraph 6 of subsection (b) as renumbered by section 52 and
subsections (e) and (f) as added and subsection (g) as relettered by
section 53 of part A of chapter 389 of the laws of 1997, subsection (d)
as added by chapter 760 of the laws of 1992, 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 eligible
S corporation, 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 thir-
teen 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 S corporation is (i) [an S] A corporation THAT HAS
ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME TAX PURPOSES PURSUANT
TO SECTION THIRTEEN HUNDRED SIXTY-TWO OF THE INTERNAL REVENUE CODE which
is subject to tax under article nine-A of this chapter, or (ii) [an S] A
corporation THAT HAS ELECTED TO BE AN S CORPORATION FOR FEDERAL INCOME
TAX PURPOSES PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-TWO 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 sharehold-
ers 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.
S. 2509--A 35 A. 3009--A
(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] ELIGIBLE S CORPORATION SHALL
CEASE TO BE SUBJECT TO subsection (a) of this section [shall cease to be
effective
(1)] on the day an election to be an S corporation ceases to be effec-
tive 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
S. 2509--A 36 A. 3009--A
(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)] (C) New York S termination year. In the case of a New York S
termination 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)] (D) 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 THIRTEEN HUNDRED SIXTY-ONE 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.
(E) 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
federal S election of [such] AN ELIGIBLE S corporation has been vali-
dated pursuant to the provisions of subsection (f) of section thirteen
hundred sixty-two of the internal revenue code, [and
S. 2509--A 37 A. 3009--A
(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] AN ELIGI-
BLE S corporation SUBJECT TO SUBSECTION (A) OF THIS SECTION during
[such] THE year or years FOR WHICH SUCH ELECTION HAS BEEN VALIDATED.
[(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) 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 shareholders
of an eligible S corporation are deemed to have made that election
effective for the eligible S corporation's entire current taxable year,
if the eligible S corporation's investment income for the current taxa-
ble 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 subchapter S subsidiary
owned directly or indirectly by the eligible S corporation 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.]
§ 20. Transition rules. Any prior net operating loss conversion
subtraction and net operating loss carryforward that otherwise would
have been allowed under subparagraphs (viii) and (ix), respectively, of
paragraph (a) of subdivision 1 of section 210 of the tax law for the
taxable years beginning on or after January 1, 2022 to any taxpayer that
was a New York C corporation for a taxable year beginning on or after
January 1, 2021 and before January 1, 2022, and that becomes a New York
S corporation for a taxable year beginning on or after January 1, 2022
S. 2509--A 38 A. 3009--A
as a result of the amendments made by this act, shall be held in abey-
ance and be available to such taxpayer if its election to be a federal S
corporation is terminated. Further, any credit carryforwards allowed to
such a taxpayer under section 210-B of the tax law shall be held in
abeyance and be available to such taxpayer if its election to be a
federal S corporation is terminated. However, the taxpayer's years as a
New York S corporation shall be counted for purposes of computing any
time period applicable to the allowance of the prior net operating loss
conversion subtraction or carryforward, the net operating loss
deduction, or any credit carryforward.
§ 21. This act shall take effect immediately, provided, however, that
section one shall apply to taxable years beginning on or after January
1, 2021 and sections two through twenty shall apply to taxable years
beginning on or after January 1, 2022.
PART F
Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax
law, as amended by section 5-a of part M of chapter 59 of the laws of
2020, is amended to read as follows:
(5) For the period two thousand fifteen through two thousand [twenty-
five] TWENTY-SIX, 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, Sulli-
van, 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 [twenty-
five] TWENTY-SIX 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
allocated credits applied for under this paragraph in any year exceeds
the aggregate amount of tax credits allowed for such year under this
paragraph, 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
S. 2509--A 39 A. 3009--A
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 period two thousand fifteen through two thousand [twenty-
five] TWENTY-SIX.
§ 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as
amended by section 5-b of part M of chapter 59 of the laws of 2020, 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 [twenty-five] TWENTY-SIX 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,
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 [twenty-five] TWENTY-SIX and five million dollars
of the annual allocation shall be made available for the television
writers' and directors' fees and salaries credit pursuant to section
twenty-four-b of this article in each year starting in two thousand
twenty through two thousand [twenty-five] TWENTY-SIX. This amount shall
be allocated by the governor's office for motion picture and television
development 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
S. 2509--A 40 A. 3009--A
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 4 of subdivision (e) of section 24 of the tax law, as
amended by section 2 of part SSS of chapter 59 of the laws of 2019, 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 [twenty-four] TWENTY-SIX 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 [twenty-four] TWENTY-SIX. This amount shall be
allocated by the governor's office for motion picture and television
development 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.
S. 2509--A 41 A. 3009--A
§ 4. Paragraph 6 of subdivision (a) of section 31 of the tax law, as
amended by section 5-c of part M of chapter 59 of the laws of 2020, is
amended to read as follows:
(6) For the period two thousand fifteen through two thousand [twenty-
five] TWENTY-SIX, 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) for services performed by
those individuals in one of the counties specified in this paragraph in
connection with the post production work on a qualified 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, Catta-
raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, COLUMBIA, Cort-
land, 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, SULLIVAN, Tioga, Tompkins,
ULSTER, WARREN, WASHINGTON, Wayne, Wyoming, or Yates. The aggregate
amount of tax credits allowed pursuant to the authority of this para-
graph shall be five million dollars each year during the period two
thousand fifteen through two thousand [twenty-five] TWENTY-SIX 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 tele-
vision 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 allocated credits applied for
under this paragraph in any year exceeds the aggregate amount of tax
credits allowed for such year under this paragraph, 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 para-
graph 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 [twenty-five] TWENTY-SIX.
§ 5. Paragraph 3 of subdivision (b) of section 24 of the tax law, as
separately amended by sections 3 and 4 of part M of chapter 59 of the
laws of 2020, is amended to read as follow:
(3) "Qualified film" means a feature-length film, television film,
relocated television production, television pilot or television series,
regardless of the medium by means of which the film, pilot or series is
created or conveyed. For the purposes of the credit provided by this
section only, a "qualified film" [with the exception of a television
pilot,] whose majority of principal photography shooting days in the
S. 2509--A 42 A. 3009--A
production of the qualified film are shot in Westchester, Rockland,
Nassau, or Suffolk county or any of the five New York City boroughs
shall have a minimum budget of one million dollars. A "qualified film",
[with the exception of a television pilot,] whose majority of principal
photography shooting days in the production of the qualified film are
shot in any other county of the state than those listed in the preceding
sentence shall have a minimum budget of two hundred fifty thousand
dollars. "Qualified film" shall not include: (i) a documentary film,
news or current affairs program, interview or talk program, "how-to"
(i.e., instructional) film or program, film or program consisting prima-
rily of stock footage, sporting event or sporting program, game show,
award ceremony, film or program intended primarily for industrial,
corporate or institutional end-users, fundraising film or program,
daytime drama (i.e., daytime "soap opera"), commercials, music videos or
"reality" program; (ii) a production 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 (reporting of books,
films, etc. with respect to sexually explicit conduct); or (iii) other
than a relocated television production, a television series commonly
known as variety entertainment, variety sketch and variety talk, i.e., a
program with components of improvisational or scripted content (mono-
logues, sketches, interviews), either exclusively or in combination with
other entertainment elements such as musical performances, dancing,
cooking, crafts, pranks, stunts, and games and which may be further
defined in regulations of the commissioner of economic development.
However, a qualified film shall include a television series as described
in subparagraph (iii) of this paragraph only if an application for such
series has been deemed conditionally eligible for the tax credit under
this section prior to April first, two thousand twenty, such series
remains in continuous production for each season, and an annual applica-
tion for each season of such series is continually submitted for such
series after April first, two thousand twenty.
§ 6. This act shall take effect immediately; provided, however, that
the amendments made by section five of this act shall apply to applica-
tions that are filed with the governor's office for motion picture and
television development on or after April 1, 2021; provided, further,
however that the amendments to paragraph 4 of subdivision (e) of section
24 of the tax law made by section two of this act shall take effect on
the same date and in the same manner as section 5 of chapter 683 of the
laws of 2019, as amended, takes effect.
PART G
Section 1. Paragraph 3 of subsection (v) of section 685 of the tax
law, as amended by section 3 of part I of chapter 59 of the laws of
2018, is amended to read as follows:
(3) Failure to provide complete and correct employee withholding
reconciliation information. In the case of a failure by an employer to
provide complete and correct quarterly withholding information relating
to individual employees on a quarterly combined withholding, wage
reporting and unemployment insurance return covering each calendar quar-
ter of a year, such employer shall, unless it is shown that such failure
is due to reasonable cause and not due to willful neglect, pay a penalty
equal to the product of [fifty] ONE HUNDRED dollars multiplied by the
number of employees for whom such information is incomplete or incor-
rect; provided, however, that if the number of such employees cannot be
S. 2509--A 43 A. 3009--A
determined from the quarterly combined withholding, wage reporting and
unemployment insurance return, the commissioner may utilize any informa-
tion in the commissioner's possession in making such determination. The
total amount of the penalty imposed pursuant to this paragraph on an
employer for any such failure for each calendar quarter of a year shall
not exceed [ten] FIFTY thousand dollars.
§ 2. This act shall take effect immediately and apply to returns filed
on or after June 1, 2021.
PART H
Section 1. This act shall be known and may be cited as the "Cannabis
Regulation and Taxation Act".
§ 2. A new chapter 7-A of the consolidated laws is added to read as
follows:
CHAPTER 7-A OF THE CONSOLIDATED LAWS
CANNABIS LAW
ARTICLE 1
SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER;
DEFINITIONS
Section 1. Short title.
2. Policy of state and purpose of chapter.
3. Definitions.
§ 1. Short title. This chapter shall be known and may be cited and
referred to as the "cannabis law".
§ 2. Policy of state and purpose of chapter. It is hereby declared as
policy of the state of New York that it is necessary to properly regu-
late, restrict, and control the cultivation, processing, manufacture,
wholesale, and retail production, distribution, transportation, adver-
tising, marketing, and sale of cannabis, cannabis products, medical
cannabis, and cannabinoid hemp within the state of New York, for the
purposes of fostering and promoting temperance in their consumption, to
properly protect the public health, safety, and welfare, to displace the
illicit cannabis market, to provide safe and affordable access to
medical cannabis for patients, and to promote social and economic equal-
ity. It is hereby declared that such policy will best be carried out by
empowering the state office of cannabis management and its executive
director, to determine whether public health, safety, convenience and
advantage will be promoted by the issuance of registrations, licenses
and/or permits granting the privilege to produce, distribute, transport,
sell, or traffic in cannabis, medical cannabis, or cannabinoid hemp, to
increase or decrease in the number thereof, scope of activities, and the
location of premises registered, licensed, or permitted thereby, subject
only to the right of judicial review hereinafter provided for. It is the
purpose of this chapter to carry out that policy in the public interest.
The restrictions, regulations, and provisions contained in this chapter
are enacted by the legislature for the protection of the health, safety,
and welfare of the people of the state.
§ 3. Definitions. Whenever used in this chapter, unless otherwise
expressly stated or unless the context or subject matter requires a
different meaning, the following terms shall have the representative
meanings hereinafter set forth or indicated:
1. "Applicant" means a person or for-profit entity or not-for-profit
corporation and includes: board members, officers, managers, owners,
partners, principal stakeholders, financiers, and members who submit an
S. 2509--A 44 A. 3009--A
application to become a registered organization, licensee or permittee,
and may include any other individual or entity with a material or opera-
tional interest in the license or its operations as determined by its
board in regulation.
2. "Bona fide cannabis retailer association" shall mean an association
of retailers holding licenses under this chapter, organized under the
non-profit or not-for-profit laws of this state.
3. "Cannabis" means all parts of the plant of the genus cannabis,
whether growing or not; the seeds thereof; the resin extracted from any
part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds or resin.
4. "Concentrated cannabis" means: (a) the separated resin, whether
crude or purified, obtained from a plant of the genus cannabis; or (b) a
material, preparation, mixture, compound or other substance which
contains more than three-tenths of one percent by weight or by volume of
delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran
numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1
(6) monoterpene numbering system or which exceeds an amount of delta-9
tetrahydrocannabinol or its isomer, delta-8 dibenzopyran numbering
system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
terpene numbering system per serving or per product determined by the
board in regulation.
5. "Adult-use cannabis consumer" means a person, twenty-one years of
age or older, who purchases approved adult-use cannabis or adult-use
cannabis products for personal use, but not for resale to others.
6. "Adult-use cannabis processor" means a person licensed by the
office who may purchase adult-use cannabis from adult-use cannabis
cultivators or processors, and who may process adult-use cannabis, and
adult-use cannabis products, package and label adult-use cannabis, and
adult-use cannabis products for sale in adult-use cannabis retail
outlets, and who may sell adult-use cannabis and cannabis-infused
products at wholesale to licensed adult-use cannabis distributors or
processors, in accordance with regulations determined by the board.
7. "Adult-use cannabis product" or "adult-use cannabis" means any
approved adult-use cannabis, concentrated cannabis, or adult-use canna-
bis-infused or extracted products, or products which otherwise contain
or are derived from adult-use cannabis, and which have been authorized
for distribution to and for use by an adult-use cannabis consumer as
determined by the executive director.
8. "Adult-use cannabis retail dispenser" means a person or entity
licensed by the executive director who may purchase adult-use cannabis
products, from adult-use cannabis distributors, microbusinesses, cooper-
atives or eligible registered organizations and who may sell approved
adult-use cannabis products, through a retail outlet, as determined by
the executive director.
9. "Certified medical use" means the acquisition, possession, use, or
transportation of medical cannabis by a certified patient, or the acqui-
sition, possession, delivery, transportation or administration of
medical cannabis by a designated caregiver or designated caregiver
facility, for use as part of the treatment of the patient's serious
condition, as authorized in a certification under this chapter including
enabling the patient to tolerate treatment for the serious condition.
10. "Caring for" means treating a patient, in the course of which the
practitioner has completed a full assessment of the patient's medical
history and current medical condition.
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11. "Certified patient" means a patient who is a resident of New York
state or receiving care and treatment in New York state as determined by
the executive director in regulation, and is certified under section
thirty of this chapter.
12. "Certification" means a certification, made under this chapter.
13. "Adult-use cultivation" shall include, the planting, growing,
cloning, harvesting, drying, curing, grading and trimming of adult-use
cannabis, or such other cultivation related processes as determined by
the executive director.
14. "Executive director" means the executive director of the office of
cannabis management.
15. "Convicted" and "conviction" include and mean a finding of guilt
resulting from a plea of guilty, the decision of a court or magistrate
or the verdict of a jury, irrespective of the pronouncement of judgment
or the suspension thereof.
16. "Designated caregiver" means an individual designated by a certi-
fied patient in a registry application. A certified patient may desig-
nate up to two designated caregivers or additional designated caregivers
as may be approved by the office.
17. "Designated caregiver facility" means a general hospital or resi-
dential health care facility operating pursuant to article twenty-eight
of the public health law; an adult care facility operating pursuant to
title two of article seven of the social services law; a community
mental health residence established pursuant to section 41.44 of the
mental hygiene Law; a hospital operating pursuant to section 7.17 of the
mental hygiene law; a mental hygiene facility operating pursuant to
article thirty-one of the mental hygiene law; an inpatient or residen-
tial treatment program certified pursuant to article thirty-two of the
mental hygiene law; a residential facility for the care and treatment of
persons with developmental disabilities operating pursuant to article
sixteen of the mental hygiene law; a residential treatment facility for
children and youth operating pursuant to article thirty-one of the
mental hygiene law; a private or public school; research institution
with an internal review board; or any other facility as determined by
the executive director; that registers with the office of cannabis
management to assist one or more certified patients with the acquisi-
tion, possession, delivery, transportation or administration of medical
cannabis.
18. "Felony" means any criminal offense classified as a felony under
the laws of this state or any criminal offense committed in any other
state, district, or territory of the United States and classified as a
felony therein which if committed within this state, would constitute a
felony in this state.
19. "Form of medical cannabis" means characteristics of the medical
cannabis recommended or limited for a particular certified patient,
including the method of consumption and any particular strain, variety,
and quantity or percentage of cannabis or particular active ingredient.
20. "Government agency" means any office, division, board, bureau,
commission, office, agency, authority or public corporation of the state
or federal government or a county, city, town or village government
within the state.
21. "Hemp" means the plant Cannabis sativa L. and any part of such
plant, including the seeds thereof and all derivatives, extracts, canna-
binoids, isomers, acids, salts, and salts of isomers, whether growing or
not, with a delta-9 tetrahydrocannabinol concentration of not more than
three-tenths of one percent on a dry weight or per volume basis.
S. 2509--A 46 A. 3009--A
22. "Cannabinoid hemp product" means any hemp and any product proc-
essed or derived from hemp, that is used for human consumption provided
that when such product is packaged or offered for retail sale to a
consumer, it shall not have a concentration of more than three-tenths of
one percent of delta-9 tetrahydrocannabinol or more than an amount of
total THC per quantity of cannabinoid hemp product as determined by the
board in regulation.
23. "Cannabinoid hemp processor license" means a license granted by
the office to process, extract, pack or manufacture cannabinoid hemp or
hemp extract into products, whether in intermediate or final form, used
for human consumption.
24. "Cannabinoid hemp retailer license" means a license granted by the
office to sell cannabinoid hemp, in final approved form, to consumers
within the state.
25. "Individual dose" means a single measure of adult-use cannabis,
medical cannabis or cannabinoid hemp product, as determined by the exec-
utive director in regulation. Individual doses may be established
through a measure of raw material, a measure of an individual cannabi-
noid or compound, a measure of total THC, or an equivalency thereof.
26. "Labor peace agreement" means an agreement between an entity and a
labor organization that, at a minimum, protects the state's proprietary
interests by prohibiting labor organizations and members from engaging
in picketing, work stoppages, boycotts, and any other economic interfer-
ence with the registered organization or licensee's business.
27. "License" means a license issued pursuant to this chapter.
28. "Medical cannabis" means cannabis as defined in subdivision three
of this section, intended and approved for a certified medical use, as
determined by the executive director in consultation with the commis-
sioner of health.
30. "Office" or "office of cannabis management" means the New York
state office of cannabis management.
31. "Permit" means a permit issued pursuant to this chapter.
32. "Permittee" means any person to whom a permit has been issued
pursuant to this chapter.
33. "Person" means individual, institution, corporation, government or
governmental subdivision or agency, business trust, estate, trust, part-
nership or association, or any other legal entity.
34. "Practitioner" means a practitioner who: (i) is authorized to
prescribe controlled substances within the state, (ii) by training or
experience is qualified to treat a serious condition as defined in
subdivision forty-three of this section; and (iii) completes, at a mini-
mum, a two-hour course as determined by the board in regulation;
provided however, the executive director may revoke a practitioner's
ability to certify patients for cause.
35. "Processing" includes, blending, extracting, infusing, packaging,
labeling, branding and otherwise making or preparing adult-use cannabis,
medical cannabis and cannabinoid hemp, or such other related processes
as determined by the executive director. Processing shall not include
the cultivation of cannabis.
36. "Registered organization" means an organization registered under
article three of this chapter.
37. "Registry application" means an application properly completed and
filed with the office of cannabis management by a certified patient
under article three of this chapter.
S. 2509--A 47 A. 3009--A
38. "Registry identification card" means a document that identifies a
certified patient or designated caregiver, as provided under section
thirty-two of this chapter.
39. "Retail sale" or "sale at retail" means a sale to a consumer or to
any person for any purpose other than for resale.
40. "Retailer" means any licensed person who sells at retail any
approved adult-use cannabis product.
41. "Sale" means any transfer, exchange or barter in any manner or by
any means whatsoever, and includes and means all sales made by any
person, whether principal, proprietor, agent, servant or employee of any
cannabis product.
42. "To sell" includes to solicit or receive an order for, to keep or
expose for sale, and to keep with intent to sell and shall include the
transportation or delivery of any cannabis product in the state.
43. "Serious condition" means having one of the following severe
debilitating or life-threatening conditions: cancer, positive status for
human immunodeficiency virus or acquired immune deficiency syndrome,
amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis,
damage to the nervous tissue of the spinal cord with objective neurolog-
ical indication of intractable spasticity, epilepsy, inflammatory bowel
disease, neuropathies, Huntington's disease, post-traumatic stress
disorder, pain that degrades health and functional capability where the
use of medical cannabis is an alternative to opioid use, substance use
disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri-
tis, autism, any condition authorized as part of a cannabis research
license, or any other condition as added by the executive director.
44. "Traffic in" includes to cultivate, process, manufacture, distrib-
ute or sell any cannabis, adult-use cannabis product or medical cannabis
at wholesale or retail.
45. "Terminally ill" means an individual has a medical prognosis that
the individual's life expectancy is approximately one year or less if
the illness runs its normal course.
46. "THC" means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocanna-
binol and the optical isomers of such substances.
47. "Total THC" means the sum of the percentage by weight of tetrahy-
drocannabinolic acid multiplied by 0.877 plus the percentage by weight
of THC.
48. "Wholesale sale" or "sale at wholesale" means a sale to any person
for purposes of resale.
49. "Distributor" means any person who sells at wholesale any adult-
use cannabis product, except medical cannabis, the sale of which a
license is required under the provisions of this chapter.
50. "Warehouse" means and includes a place in which cannabis products
are housed or stored.
ARTICLE 2
NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT
Section 7. Establishment of an office of cannabis management.
8. Establishment of the cannabis control board.
9. Functions, powers and duties of the cannabis control board.
10. Executive director.
11. Functions, powers and duties of the office and executive
director.
12. Rulemaking authority.
13. Deputies; employees.
14. Disposition of moneys received for license fees.
S. 2509--A 48 A. 3009--A
15. Violations of cannabis laws or regulations; penalties and
injunctions.
16. Formal hearings; notice and procedure.
17. Ethics, transparency and accountability.
18. Public health and education campaign.
19. Traffic safety oral fluid or other roadside detection method
pilot program.
20. Establish uniform policies and best practices.
§ 7. Establishment of an office of cannabis management. There is here-
by established, within the division of alcoholic beverage control, an
independent office of cannabis management, which shall have exclusive
jurisdiction to exercise the powers and duties provided by this chapter.
The office shall exercise its authority by and through a cannabis
control board and executive director.
§ 8. Establishment of the cannabis control board. 1. The cannabis
control board or "board" is created and shall consist of a chairperson
with one vote, and four other voting board members, all of whom shall be
citizens and residents of this state.
2. The governor shall appoint all members of the board, and shall
designate one member to serve as chairperson. All members of the board
shall serve for a term of three years and shall continue to serve in
office until the expiration of their terms and until their successors
are appointed and have qualified. The members, other than the chair-
person, shall be compensated at a rate of two hundred sixty dollars per
day when performing the work of the board, together with an allowance
for actual and necessary expenses incurred in the discharge of their
duties. No person shall be appointed to or employed by the board if,
during the period commencing three years prior to appointment or employ-
ment, such person held any direct or indirect interest in, or employment
by, any corporation, association or person engaged in regulated activity
within the state. The chairperson shall also be designated as the exec-
utive director of the office of cannabis management.
3. Prior to appointment or employment, each member, officer or employ-
ee of the board shall swear or affirm that he or she possesses no inter-
est in any corporation or association holding a license, registration,
certificate or permit issued by the board. Thereafter, no member or
officer of the board shall hold any direct interest in or be employed by
any applicant for or by any corporation, association or person holding a
license, registration, certificate or permit issued by the board for a
period of four years commencing on the date his or her membership with
the board terminates. Further, no employee of the board may acquire any
direct or indirect interest in, or accept employment with, any applicant
for or any person holding a license, registration, certificate or permit
issued by the board for a period of two years commencing at the termi-
nation of employment with the board. The board may, by resolution
adopted by unanimous vote at a properly noticed public meeting, waive
for good cause the pre-employment restrictions enumerated in this subdi-
vision for a prospective employee whose duties and responsibilities are
not policy-making. Such adopted resolution shall state the reasons for
waiving the pre-employment conditions for the prospective employee,
including a finding that there were no other qualified candidates with
the desired experience for the specified position.
4. Any member of the board may be removed by the governor for cause
after notice and an opportunity to be heard. A statement of the cause
for their removal shall be filed by the governor in the office of the
secretary of state.
S. 2509--A 49 A. 3009--A
5. In the event of a vacancy caused by the death, resignation, removal
or disability of any board member, the vacancy shall be filled in the
same manner as the original appointment; provided that in such instance
the governor may appoint a member of the board to serve as chairperson
for the remainder of their term without consultation with the Senate and
the Assembly.
6. A majority of the board members of the authority shall constitute a
quorum for the purpose of conducting business, and a majority vote of
those present shall be required for action.
7. The board shall meet as frequently as its business may require, and
at least four times in each year. The board may enact and from time to
time amend by-laws in relation to its meetings and the transactions of
its business.
§ 9. Functions, powers and duties of the cannabis control board. The
cannabis control board shall have such powers and duties as are set
forth in this chapter and shall:
1. approve the office's social and economic equity plan pursuant to
section eighty-four of this chapter;
2. approve the type and number of available licenses issued by the
office;
3. approve the opening of new license application periods and when new
or additional licenses are made available;
4. approve the creation of any new type of license;
5. approve any price quotas or price controls set by the executive
director as provided by this chapter;
6. at the request of the executive director, appoint advisory groups
or committees necessary to provide assistance to the office to carry out
the policy of the state and purpose of this chapter;
7. when an administrative decision is appealed by an applicant, regis-
tered organization, licensee or permittee, issue a final determination
of the office; and
8. promulgate any rules and regulations necessary to effectuate this
chapter.
§ 10. Executive director. The office shall exercise its authority,
through its executive director. The executive director shall receive an
annual salary within the amounts appropriated therefor.
§ 11. Functions, powers and duties of the office and executive direc-
tor. The office of cannabis management, by and through its executive
director, shall have the following powers and duties:
1. To issue or refuse to issue any registration, license or permit
provided for in this chapter.
2. To limit the number, scope, and/or availability of registrations,
licenses and permits of each class to be issued within any political or
geographic subdivision of the state, and in connection therewith to
prohibit the acceptance of applications for such classes which have been
so limited, as set out in regulation and approved by the board.
3. To revoke, cancel or suspend for cause any registration, license,
or permit issued under this chapter and/or to impose a civil penalty for
cause against any holder of a registration, license, or permit issued
pursuant to this chapter or any person engaged in activities without a
license or permit for which a license or permit is required by this
chapter. Any civil penalty so imposed shall be in addition to and sepa-
rate and apart from the terms and provisions of the bond required pursu-
ant to section thirty-five of this chapter.
4. To fix by regulation the standards and requirements for the culti-
vation, processing, packaging, marketing, and sale of medical cannabis,
S. 2509--A 50 A. 3009--A
adult-use cannabis and cannabinoid hemp, including but not limited to,
the ability to regulate potency, excipients, and the types and forms of
products which may be manufactured and/or processed, in order to ensure
the health and safety of the public and the use of proper ingredients
and methods in the manufacture of all cannabis and cannabinoid hemp to
be sold or consumed in the state and to ensure that products are not
packaged, marketed, or otherwise trafficked in a way which targets
minors or promotes increased use or cannabis use disorders, as set out
in regulation and approved by the board.
5. To limit or prohibit, at any time of public emergency and without
previous notice or advertisement, the cultivation, processing, distrib-
ution or sale of any or all adult-use cannabis products, medical canna-
bis or cannabinoid hemp, for and during the period of such emergency.
6. To inspect or provide for the inspection at any time of any prem-
ises where adult-use cannabis, medical cannabis or cannabinoid hemp is
cultivated, processed, stored, distributed or sold including but not
limited to compelling the production and review of all relevant business
records and financial statements and corporate documents.
7. To prescribe forms of applications, criteria of review and method
of selection or issuance for registrations, licenses and permits under
this chapter and of all reports deemed necessary by the office.
8. To delegate the powers provided in this section to such other offi-
cers or employees or other state agencies as may be deemed appropriate
by the executive director, provided however, that any duty delegated to
the executive director by the board shall not be further delegated with-
out approval by the board.
9. To exercise the powers and perform the duties in relation to the
administration of the office as are necessary but not specifically vest-
ed by this chapter, including but not limited to budgetary and fiscal
matters.
10. To develop and establish minimum criteria for certifying employees
to work in the cannabis industry, which may include the establishment of
a cannabis workers certification program.
11. To enter into contracts, memoranda of understanding, and agree-
ments as deemed appropriate by the executive director to effectuate the
policy and purpose of this chapter.
12. To establish and implement a social and economic equity plan,
subject to approval of the board, to ensure access to, and participation
in, the cannabis industry by social equity and economic empowerment
applicants as prescribed in section eighty-four of this chapter.
13. If the executive director finds that public health, safety, or
welfare imperatively requires emergency action, and incorporates a find-
ing to that effect in an order, summary suspension of a license or
administrative hold of products and a product recall may be ordered,
effective on the date specified in such order or upon service of a
certified copy of such order on the licensee, whichever shall be later,
pending proceedings for revocation or other action. These proceedings
shall be promptly instituted and determined. In addition, the executive
director may order the administrative seizure of product, issue a stop
order, or take any other action necessary to effectuate and enforce the
policy and purpose of this chapter.
14. To issue guidance and industry advisories.
15. To recommend that the state enter into tribal-state compacts with
the New York state Indian nations and tribes, as defined by section two
of the Indian law, authorizing such Indian nations or tribes to acquire,
S. 2509--A 51 A. 3009--A
possess, manufacture, sell, deliver, transport, distribute or dispense
adult-use cannabis and/or medical cannabis.
16. To coordinate across state agencies and departments in order to
research and study any changes in cannabis use and the impact that
cannabis use and the regulated cannabis industry may have on access to
cannabis products, public health, and public safety.
§ 12. Rulemaking authority. 1. The board shall perform such acts,
prescribe such forms and promulgate such rules, regulations and orders
as it may deem necessary or proper to fully effectuate the provisions of
this chapter, in accordance with the state administrative procedure act.
2. The board shall promulgate any and all necessary rules and regu-
lations governing the production, processing, transportation, distrib-
ution, marketing, advertising and sale of medical cannabis, adult-use
cannabis and cannabinoid hemp, the registration of organizations author-
ized to traffic in medical cannabis, the licensing and/or permitting of
adult-use cannabis cultivators, processors, cooperatives, distributors,
and retail dispensaries, and the licensing of cannabinoid hemp process-
ors and retailers, including but not limited to:
(a) establishing application, registration, reinstatement, and renewal
fees;
(b) the qualifications and selection criteria for registration,
licensing, or permitting;
(c) the books and records to be created and maintained by registered
organizations, licensees, and permittees, including the reports to be
made thereon to the office, and inspection of any and all books and
records maintained by any registered organization, licensee, or permit-
tee and on the premise of any registered organization, licensee, or
permittee;
(d) methods of producing, processing, and packaging adult-use canna-
bis, medical cannabis, and cannabinoid hemp; conditions of sanitation,
standards of ingredients, quality, and identity of adult-use cannabis
and medical cannabis products cultivated, processed, packaged, or sold
by registered organizations and licensees, and standards for the devices
used to consume adult-use cannabis, medical cannabis and cannabinoid
hemp;
(e) security requirements for adult-use cannabis retail dispensaries
and premises where cannabis products or medical cannabis are cultivated,
produced, processed, or stored, and safety protocols for registered
organizations, licensees and their employees;
(f) hearing procedures and additional causes for cancellation, revoca-
tion, and/or civil penalties against any person registered, licensed, or
permitted by the office; and
(g) the circumstances under and manner and process by which an appli-
cant, registered organization, licensee, or permittee, may apply to
change or alter its previously submitted or approved owners, managers,
members, directors, financiers, or interest holders.
3. The board shall promulgate rules and regulations to:
(a) prevent the distribution of adult-use cannabis to persons under
twenty-one years of age including the marketing, packaging and branding
of adult-use cannabis;
(b) prevent the revenue from the sale of cannabis from going to crimi-
nal enterprises, gangs, and cartels;
(c) prevent the diversion and inversion of adult-use cannabis and
medical cannabis from this state to other states and from other states
into this state insofar as cannabis remains federally prohibited;
S. 2509--A 52 A. 3009--A
(d) prevent cannabis activity that is legal under state law from being
used as a cover or pretext for the trafficking of other illegal drugs or
other illegal activity;
(e) prevent violence and the use of firearms in the cultivation and
distribution of cannabis;
(f) prevent drugged driving and the exacerbation of other adverse
public health consequences associated with the use of cannabis;
(g) prevent the growing of cannabis on public lands and the attendant
public safety and environmental dangers posed by cannabis production on
public lands;
(h) prevent the possession and use of adult-use cannabis and medical
cannabis on federal property insofar as cannabis remains federally
prohibited;
(i) regulate and restrict the use of cannabis and prohibit the traf-
ficking of dangerous cannabis products in order to reduce the rate of
cannabis abuse, cannabis dependency, cannabis use disorders, and other
adverse public health and safety consequences of cannabis use;
(j) educate the public and at-risk populations about responsible
cannabis use and the potential dangers of cannabis use;
(k) prevent predatory marketing and advertising practices targeted
toward at-risk populations such as minors, pregnant or breastfeeding
women, and demographics which disproportionately engage in higher rates
of cannabis use and display higher rates of cannabis use disorders;
(l) notwithstanding any other section of state law, adopt rules and
regulations based on federal guidance provided those rules and regu-
lations are designed to comply with federal guidance and mitigate feder-
al enforcement against the registrations, licenses, or permits issued
under this chapter, or the cannabis industry as a whole. This may
include regulations which permit the sharing of licensee, registrant, or
permit-holder information with designated banking or financial insti-
tutions; and
(m) establish application, licensing, and permitting processes which
ensure all material owners and interest holders are disclosed and that
officials or other individuals with control over the approval of an
application, permit, or license do not themselves have any interest in
an application, license, or permit.
4. The board, in consultation with the department of agriculture and
markets and the department of environmental conservation, shall promul-
gate necessary rules and regulations governing the safe production of
adult-use cannabis and medical cannabis, including but not limited to
environmental and energy standards and restrictions on the use of pesti-
cides.
5. The board shall have the authority to promulgate regulations
governing the appropriate use and licensure of the manufacturing of
cannabinoids, or other compounds contained within the cannabis plant,
through any method other than planting, growing, cloning, harvesting, or
other traditional means of plant agriculture.
§ 13. Deputies; employees. 1. The executive director shall appoint a
deputy director for health and safety who shall be a licensed health
care practitioner within the state and who shall oversee all clinical
aspects of the office. The executive director shall also appoint a depu-
ty director for social and economic equity who shall oversee the social
and economic equity plan. The executive director may appoint such other
deputies as he or she deems necessary to fulfill the responsibilities of
the office.
S. 2509--A 53 A. 3009--A
2. The executive director may appoint and remove from time to time, in
accordance with law and any applicable rules of the state civil service
commission, such additional employees, under such titles as the execu-
tive director may assign, as the executive director may deem necessary
for the efficient administration of the office. They shall perform such
duties as the executive director shall assign to them. The compensation
of such employees shall be within the amounts appropriated therefor.
3. Investigators employed by the office shall be deemed to be peace
officers for the purpose of enforcing the provisions of this chapter or
judgments or orders obtained for violation thereof, with all the powers
set forth in section 2.20 of the criminal procedure law.
§ 14. Disposition of moneys received for license fees. The office
shall establish a scale of application, licensing, and renewal fees,
based upon the cost of enforcing this chapter which may vary based on
the nature, size, class, or scope of the cannabis business being
licensed or the classification of the applicant, as follows:
1. The office shall charge each registered organization, licensee and
permittee a registration, licensure or permit fee, and renewal fee, as
applicable. The fees may vary depending upon the nature, size, class or
scope of the different registration, licensure and permit activities, or
the classification of the applicant.
2. The total fees assessed pursuant to this chapter may be set at an
amount that will generate sufficient total revenue to fully cover the
total costs of administering this chapter.
3. The office shall deposit all fees collected in the New York state
cannabis revenue fund established pursuant to section ninety-nine-ii of
the state finance law.
§ 15. Violations of cannabis laws or regulations; penalties and
injunctions. 1. A person who willfully violates any provision of this
chapter, or any regulation lawfully made or established by any public
officer under authority of this chapter, the punishment for violating
which is not otherwise prescribed by this chapter or any other law, is
punishable by a fine not exceeding five thousand dollars per violation,
per day, or by both.
2. Any person who violates, disobeys or disregards any term or
provision of this chapter or of any lawful notice, order or regulation
pursuant thereto for which a civil penalty is not otherwise expressly
prescribed by law, shall be liable to the people of the state for a
civil penalty of not to exceed five thousand dollars per violation, per
day.
3. The penalty provided for in subdivision one of this section may be
recovered by an action brought by the executive director in any court of
competent jurisdiction.
4. Nothing in this section shall be construed to alter or repeal any
existing provision of law declaring such violations to be misdemeanors
or felonies or prescribing the penalty therefor.
5. Such civil penalty may be released or compromised by the executive
director before the matter has been referred to the attorney general,
and where such matter has been referred to the attorney general, any
such penalty may be released or compromised and any action commenced to
recover the same may be settled and discontinued by the attorney general
with the consent of the executive director.
6. It shall be the duty of the attorney general upon the request of
the executive director to bring an action for an injunction against any
person who violates, disobeys or disregards any term or provision of
this chapter or of any lawful notice, order or regulation pursuant ther-
S. 2509--A 54 A. 3009--A
eto; provided, however, that the executive director shall furnish the
attorney general with such material, evidentiary matter or proof as may
be requested by the attorney general for the prosecution of such an
action.
7. It is the purpose of this section to provide additional and cumula-
tive remedies, and nothing herein contained shall abridge or alter
rights of action or remedies now or hereafter existing, nor shall any
provision of this section, nor any action done by virtue of this
section, be construed as estopping the state, persons or municipalities
in the exercising of their respective rights.
§ 16. Formal hearings; notice and procedure. 1. The board, or any
person designated by the board for this purpose, may issue subpoenas and
administer oaths in connection with any hearing or investigation under
or pursuant to this chapter, and it shall be the duty of the board and
any persons designated by the board for such purpose to issue subpoenas
at the request of and upon behalf of the respondent.
2. The board and those designated by the board shall not be bound by
the laws of evidence in the conduct of hearing proceedings, but the
determination shall be founded upon substantial evidence to sustain it.
3. Notice of hearing shall be served at least fifteen days prior to
the date of the hearing, provided that, whenever because of danger to
the public health, safety or welfare it appears prejudicial to the
interests of the people of the state to delay action for fifteen days,
the executive director may serve the respondent with an order requiring
certain action or the cessation of certain activities immediately or
within a specified period of less than fifteen days.
4. Service of notice of hearing or order shall be made by personal
service or by registered or certified mail. Where service, whether by
personal service or by registered or certified mail, is made upon an
incompetent, partnership, or corporation, it shall be made upon the
person or persons designated to receive personal service by article
three of the civil practice law and rules.
5. At a hearing, the respondent may appear personally, shall have the
right of counsel, and may cross-examine witnesses against him or her and
produce evidence and witnesses in his or her behalf.
6. Following a hearing, the board or its designee may make appropriate
determinations and issue a final order in accordance therewith.
7. The board may adopt, amend and repeal administrative rules and
regulations governing the procedures to be followed with respect to
hearings, such rules to be consistent with the policy and purpose of
this chapter and the effective and fair enforcement of its provisions.
8. The provisions of this section shall be applicable to all hearings
held pursuant to this chapter, except where other provisions of this
chapter applicable thereto are inconsistent therewith, in which event
such other provisions shall apply.
§ 17. Ethics, transparency and accountability. Except as authorized by
the board no member of the office or any officer, deputy, assistant,
inspector or employee thereof shall have any interest, direct or indi-
rect, either proprietary or by means of any loan, mortgage or lien, or
in any other manner, in or on any premises registered, licensed or
permitted under this chapter; nor shall they have any interest, direct
or indirect, in any business wholly or substantially devoted to the
cultivation, processing, distribution, sale, transportation, marketing,
testing, or storage of adult-use cannabis, medical cannabis or cannabi-
noid hemp, or own any stock in any corporation which has any interest,
proprietary or otherwise, direct or indirect, in any premises where
S. 2509--A 55 A. 3009--A
adult-use cannabis, medical cannabis or cannabinoid hemp is cultivated,
processed, distributed or sold, or in any business wholly or partially
devoted to the cultivation, processing, distribution, sale, transporta-
tion or storage of adult-use cannabis, medical cannabis or cannabinoid
hemp, or receive any commission or profit whatsoever, direct or indi-
rect, from any person applying for, receiving, managing or operating any
license or permit provided for in this chapter, or hold any other
elected or appointed public office in the state or in any political
subdivision to which a registered organization, licensee, permittee or
applicant would appear. Anyone who violates any of the provisions of
this section shall be removed or shall divest him or herself of such
direct or indirect interests.
§ 18. Public health and education campaign. The office, in consulta-
tion with the commissioners of the department of health, office of
addiction services and supports, and office of mental health, shall
develop and implement a comprehensive public health monitoring, surveil-
lance and education campaign regarding the legalization of adult-use
cannabis and the impact of cannabis use on public health and safety.
The public health and education campaign shall also include general
education to the public about the cannabis law.
§ 19. Traffic safety oral fluid or other roadside detection method
pilot program. The office, in consultation with the commissioner of the
department of motor vehicles and the superintendent of the state police,
shall develop and implement a workgroup together with other states to
outline goals and standard operating procedures for a statewide or
regional oral fluid or other roadside detection pilot program. The work-
group may include, but not be limited to, representatives from district
attorney offices, local and county police departments, and other rele-
vant public safety experts.
§ 20. Establish uniform policies and best practices. The office shall
engage in activities with other states, territories, or jurisdictions in
order to coordinate and establish, uniform policies and best practices
in cannabis regulation. These activities shall prioritize coordination
with neighboring and regional states, and may include, but not be limit-
ed to establish working groups related to laboratory testing, products
safety, taxation, road safety, compliance and adherence with federal
policies which promote or facilitate cannabis research, commerce and/or
regulation, and any other issues identified by the executive director.
The executive director may enter into any contracts, or memoranda of
understanding necessary to effectuate this provision.
ARTICLE 3
MEDICAL CANNABIS
Section 30. Certification of patients.
31. Lawful medical use.
32. Registry identification cards.
33. Registration as a designated caregiver facility.
34. Registered organizations.
35. Registering of registered organizations.
36. Intentionally omitted.
37. Reports of registered organizations.
38. Evaluation; research programs; report by office.
39. Cannabis research license.
40. Registered organizations and adult-use cannabis.
41. Intentionally omitted.
42. Relation to other laws.
S. 2509--A 56 A. 3009--A
43. Protections for the medical use of cannabis.
44. Regulations.
45. Suspend; terminate.
46. Pricing.
47. Severability.
§ 30. Certification of patients. 1. A patient certification may only
be issued if:
(a) the patient has a serious condition, which shall be specified in
the patient's health care record;
(b) the practitioner by training or experience is qualified to treat
the serious condition;
(c) the patient is under the practitioner's continuing care for the
serious condition; and
(d) in the practitioner's professional opinion and review of past
treatments, the patient is likely to receive therapeutic or palliative
benefit from the primary or adjunctive treatment with medical use of
cannabis for the serious condition.
2. The certification shall include: (a) the name, date of birth and
address of the patient; (b) a statement that the patient has a serious
condition and the patient is under the practitioner's care for the seri-
ous condition; (c) a statement attesting that all requirements of subdi-
vision one of this section have been satisfied; (d) the date; and (e)
the name, address, telephone number, and the signature of the certifying
practitioner. The executive director may require by regulation that the
certification shall be on a form provided by the office. The practition-
er may state in the certification that, in the practitioner's profes-
sional opinion, the patient would benefit from medical cannabis only
until a specified date. The practitioner may state in the certification
that, in the practitioner's professional opinion, the patient is termi-
nally ill and that the certification shall not expire until the patient
dies.
3. In making a certification, the practitioner may consider any
approved form of medical cannabis the patient should consume, including
the method of consumption and any particular strain, variety, and quan-
tity or percentage of cannabis or particular active ingredient, and
appropriate dosage. The practitioner may state in the certification any
recommendation or limitation the practitioner makes, in his or her
professional opinion, concerning the appropriate form or forms of
medical cannabis and dosage.
4. Every practitioner shall consult the prescription monitoring
program registry prior to making or issuing a certification, for the
purpose of reviewing a patient's controlled substance history. For
purposes of this section, a practitioner may authorize a designee to
consult the prescription monitoring program registry on his or her
behalf, provided that such designation is in accordance with section
thirty-three hundred forty-three-a of the public health law.
5. The practitioner shall give the certification to the certified
patient, and place a copy in the patient's health care record.
6. No practitioner shall issue a certification under this section for
himself or herself.
7. A registry identification card based on a certification shall
expire one year after the date the certification is signed by the prac-
titioner.
8. (a) If the practitioner states in the certification that, in the
practitioner's professional opinion, the patient would benefit from
medical cannabis only until a specified earlier date, then the registry
S. 2509--A 57 A. 3009--A
identification card shall expire on that date; (b) if the practitioner
states in the certification that in the practitioner's professional
opinion the patient is terminally ill and that the certification shall
not expire until the patient dies, then the registry identification card
shall state that the patient is terminally ill and that the registration
card shall not expire until the patient dies; (c) if the practitioner
re-issues the certification to terminate the certification on an earlier
date, then the registry identification card shall expire on that date
and shall be promptly destroyed by the certified patient; (d) if the
certification so provides, the registry identification card shall state
any recommendation or limitation by the practitioner as to the form or
forms of medical cannabis or dosage for the certified patient; and (e)
the board shall make regulations to implement this subdivision.
9. A practitioner who offers patient certification shall not have any
business relationship with, or own any stock in any corporation which
has any interest, proprietary or otherwise, direct or indirect, in any
registered organization, or other business or premises where medical
cannabis is cultivated, processed, distributed or sold. This provision
shall not be construed to prohibit a practitioner who offers patient
certification from providing their medical expertise to, or engaging in
medical cannabis research with, a registered organization or a licensee
that traffics in medical cannabis provided that the practitioner is not
compensated for or offered any consideration for these educational or
research activities.
§ 31. Lawful medical use. The possession, acquisition, use, delivery,
transfer, transportation, or administration of medical cannabis by a
certified patient, designated caregiver or designated caregiver facili-
ty, for certified medical use, shall be lawful under this article
provided that:
(a) the cannabis that may be possessed by a certified patient shall
not exceed quantities determined by the board in regulation;
(b) the cannabis that may be possessed by designated caregivers does
not exceed the quantities determined by the executive director under
paragraph (a) of this subdivision for any certified patient for whom the
caregiver is issued a valid registry identification card;
(c) the cannabis that may be possessed by designated caregiver facili-
ties does not exceed the quantities determined by the board under para-
graph (a) of this subdivision for each certified patient under the care
or treatment of the facility;
(d) the form or forms of medical cannabis that may be possessed by the
certified patient, designated caregiver or designated caregiver facility
pursuant to a certification shall be in compliance with any recommenda-
tion or limitation by the practitioner as to the form or forms of
medical cannabis or dosage for the certified patient in the certif-
ication and consistent with any guidance or limitation issued by the
executive director or regulation issued by the board; and
(e) the medical cannabis shall be kept in the original package in
which it was dispensed under this article, except for the portion
removed for immediate consumption for certified medical use by the
certified patient.
§ 32. Registry identification cards. 1. Upon approval of the certif-
ication, the office shall issue registry identification cards for certi-
fied patients and designated caregivers. A registry identification card
shall expire as provided in this article or as otherwise provided in
this section. The office shall begin issuing registry identification
cards as soon as practicable after the certifications required by this
S. 2509--A 58 A. 3009--A
chapter are granted. The office may specify a form for a registry appli-
cation, in which case the office shall provide the form on request,
reproductions of the form may be used, and the form shall be available
for downloading from the office's website.
2. To obtain, amend or renew a registry identification card, a certi-
fied patient or designated caregiver shall file a registry application
with the office, unless otherwise exempted by the executive director.
The registry application or renewal application shall include such
information as prescribed by the office which shall include but not be
limited to:
(a) in the case of a certified patient:
(i) the patient's certification, a new written certification shall be
provided with a renewal application if required by the office;
(ii) the name, address, and date of birth of the patient;
(iii) the date of the certification;
(iv) if the patient has a registry identification card based on a
current valid certification, the registry identification number and
expiration date of that registry identification card;
(v) the specified date until which the patient would benefit from
medical cannabis, if the certification states such a date;
(vi) the name, address, and telephone number of the certifying practi-
tioner;
(vii) any recommendation or limitation by the practitioner as to the
form or forms of medical cannabis or dosage for the certified patient;
(viii) if the certified patient applies to designate a designated
caregiver, the name, address, and date of birth of the designated care-
giver, and other individual identifying information required by the
office; and
(ix) other individual identifying information required by the office;
(b) in the case of a designated caregiver:
(i) the name, address, and date of birth of the designated caregiver;
(ii) if the designated caregiver has a registry identification card,
the registry identification number and expiration date of that registry
identification card; and
(iii) other individual identifying information required by the office;
(c) a statement that a false statement made in the application is
punishable under section 210.45 of the penal law;
(d) the date of the application and the signature of the certified
patient or designated caregiver, as the case may be;
(e) any other requirements determined by the executive director.
3. Where a certified patient is under the age of eighteen or otherwise
incapable of consent:
(a) The application for a registry identification card shall be made
by an appropriate person over eighteen years of age. The application
shall state facts demonstrating that the person is appropriate.
(b) The designated caregiver shall be: (i) a parent or legal guardian
of the certified patient; (ii) a person designated by a parent or legal
guardian; (iii) a designated caregiver facility; or (iv) an appropriate
person approved by the office upon a sufficient showing that no parent
or legal guardian is appropriate or available.
4. No person may be a designated caregiver if the person is under
twenty-one years of age unless a sufficient showing is made to the
office that the person should be permitted to serve as a designated
caregiver. The requirements for such a showing shall be determined by
the executive director.
S. 2509--A 59 A. 3009--A
5. No person may be a designated caregiver for more than one certified
patient at one time, unless approved by the office. The office may allow
a designated caregiver to serve more than one patient in cases where
additional designating patients are immediate family members, in the
immediate and continuous care of the caregiver, or satisfy other eligi-
bility requirements determined by the board in regulation.
6. If a certified patient wishes to change or terminate his or her
designated caregiver, for whatever reason, the certified patient shall
notify the office as soon as practicable. The office shall issue a
notification to the designated caregiver that their registration card is
invalid and must be promptly destroyed. The newly designated caregiver
must comply with all requirements set forth in this section.
7. If the certification so provides, the registry identification card
shall contain any recommendation or limitation by the practitioner as to
the form or forms of medical cannabis or dosage for the certified
patient.
8. The office shall issue separate registry identification cards for
certified patients and designated caregivers as soon as reasonably prac-
ticable after receiving and approving a complete application under this
section, unless it determines that the application is incomplete, factu-
ally inaccurate, or fails to satisfy any applicable regulation, in which
case it shall promptly notify the applicant.
9. If the application of a certified patient designates an individual
as a designated caregiver who is not authorized to be a designated care-
giver, that portion of the application shall be denied by the office but
that shall not affect the approval of the balance of the application.
10. A registry identification card shall:
(a) contain the name of the certified patient or the designated care-
giver as the case may be;
(b) contain the date of issuance and expiration date, as applicable,
of the registry identification card;
(c) contain a registry identification number for the certified patient
or designated caregiver, as the case may be and a registry identifica-
tion number;
(d) contain a photograph of the individual to whom the registry iden-
tification card is being issued, which shall be obtained by the office
in a manner specified by the executive director; provided, however, that
if the office requires certified patients to submit photographs for this
purpose, there shall be a reasonable accommodation of certified patients
who are confined to their homes due to their medical conditions and may
therefore have difficulty procuring photographs;
(e) be a secure document as determined by the office;
(f) plainly state any recommendation or limitation by the practitioner
as to the form or forms of medical cannabis or dosage for the certified
patient; and
(g) contain any other requirements determined by the executive direc-
tor.
11. A certified patient or designated caregiver who has been issued a
registry identification card shall notify the office of any change in
his or her name or address or, with respect to the patient, if he or she
ceases to have the serious condition noted on the certification within
ten days of such change. The certified patient's or designated
caregiver's registry identification card shall be deemed invalid and
shall be promptly destroyed.
12. If a certified patient or designated caregiver loses his or her
registry identification card, he or she shall notify the office within
S. 2509--A 60 A. 3009--A
ten days of losing the card. The office shall issue a new registry iden-
tification card as soon as practicable, which may contain a new registry
identification number, to the certified patient or designated caregiver,
as the case may be.
13. The office shall maintain a confidential list of the persons to
whom it has issued registry identification cards. Individual identifying
information obtained by the office under this article shall be confiden-
tial and exempt from disclosure under article six of the public officers
law. Notwithstanding this subdivision, the office may notify any appro-
priate law enforcement agency of information relating to any violation
or suspected violation of this article.
14. The office shall verify to law enforcement personnel in an appro-
priate case whether a registry identification card is valid and any
other information necessary to protect patients' rights to medical
cannabis by confirming compliance with this article.
15. If a certified patient or designated caregiver willfully violates
any provision of this article or regulations promulgated hereunder as
determined by the executive director, his or her certification and
registry identification card may be suspended or revoked. This is in
addition to any other penalty that may apply.
§ 33. Registration as a designated caregiver facility. 1. To obtain,
amend or renew a registration as a designated caregiver facility, the
facility shall file a registry application with the office. The registry
application or renewal application shall include:
(a) the facility's full name and address;
(b) operating certificate or license number where appropriate;
(c) name, title, and signature of an authorized facility represen-
tative;
(d) a statement that the facility agrees to secure and ensure proper
handling of all medical cannabis products;
(e) an acknowledgement that a false statement in the application is
punishable under section 210.45 of the penal law; and
(f) any other information that may be required by the executive direc-
tor.
2. Prior to issuing or renewing a designated caregiver facility regis-
tration, the office may verify the information submitted by the appli-
cant. The applicant shall provide, at the office's request, such infor-
mation and documentation, including any consents or authorizations that
may be necessary for the office to verify the information.
3. The office shall approve, deny or reject an initial or renewal
application. If the application is approved within the 30-day period,
the office shall issue a registration as soon as is reasonably practica-
ble.
4. Registrations issued under this section shall remain valid for two
years from the date of issuance.
§ 34. Registered organizations. 1. A registered organization shall be
a for-profit business entity or not-for-profit corporation organized for
the purpose of acquiring, possessing, manufacturing, selling, deliver-
ing, transporting, distributing, or dispensing cannabis for certified
medical use, in accordance with minimum operating and recordkeeping
requirements determined by the board in regulation.
2. The acquiring, possession, manufacture, testing, sale, delivery,
transporting, distributing, or dispensing of medical cannabis by a
registered organization under this article in accordance with its regis-
tration under this article or a renewal thereof shall be lawful under
this chapter.
S. 2509--A 61 A. 3009--A
3. Each registered organization shall contract with an independent
laboratory permitted by the office to test the medical cannabis produced
by the registered organization. The executive director, in consultation
with the commissioner of health, shall approve the laboratory used by
the registered organization, including but not limited to sampling and
testing protocols and standards used by the laboratory, and may require
that the registered organization use a particular testing laboratory.
4. (a) A registered organization may only sell, deliver, distribute,
or dispense medical cannabis to a certified patient or designated care-
giver upon presentation to the registered organization of valid iden-
tification for that certified patient or designated caregiver. When
presented with the registry identification card, the registered organ-
ization shall provide to the certified patient or designated caregiver a
receipt, which shall state: the name, address, and registry identifica-
tion number of the registered organization; the name and registry iden-
tification number of the certified patient and the designated caregiver,
if any; the date the cannabis was sold; any recommendation or limitation
by the practitioner as to the form or forms of medical cannabis or
dosage for the certified patient; and the form and the quantity of
medical cannabis sold. The registered organization shall retain a copy
of the registry identification card and the receipt for six years, and
shall make such records available to the office upon demand.
(b) The proprietor of a registered organization shall file or cause to
be filed any receipt and certification information with the office by
electronic means on a real-time basis as the executive director may
require. When filing receipt and certification information electron-
ically pursuant to this paragraph, the proprietor of the registered
organization shall dispose of any electronically recorded prescription
information in such manner as the executive director shall require.
5. (a) No registered organization may sell, deliver, distribute or
dispense to any certified patient or designated caregiver a quantity of
medical cannabis larger than that individual would be allowed to possess
as set out in regulation by the board.
(b) When dispensing medical cannabis to a certified patient or desig-
nated caregiver, the registered organization: (i) shall not dispense an
amount greater than an amount established by the board in regulation;
and (ii) shall verify the information in subparagraph (i) of this para-
graph by consulting the prescription monitoring program registry under
this article.
(c) Medical cannabis dispensed to a certified patient or designated
caregiver by a registered organization shall conform to any recommenda-
tion or limitation by the practitioner as to the form or forms of
medical cannabis or dosage for the certified patient, and any medical
cannabis product or form limitations or restrictions determined by the
executive director.
6. When a registered organization sells, delivers, distributes or
dispenses medical cannabis to a certified patient or designated caregiv-
er, it shall provide to that individual a safety insert, which may be
developed by the registered organization and shall include, but not be
limited to, information on:
(a) methods for administering medical cannabis in individual doses,
(b) any potential dangers stemming from the use of medical cannabis,
(c) how to recognize what may be problematic usage of medical cannabis
and obtain appropriate services or treatment for problematic usage, and
(d) other information as determined by the executive director.
S. 2509--A 62 A. 3009--A
7. Registered organizations shall not be managed by or employ anyone
who has been convicted of any felony other than for the sale or
possession of drugs, narcotics, or controlled substances, and provided
that this subdivision only applies to (a) managers or employees who come
into contact with or handle medical cannabis, and (b) a conviction less
than ten years, not counting time spent in incarceration, prior to being
employed, for which the person has not received a certificate of relief
from disabilities, a certificate of good conduct under article twenty-
three of the correction law, or an executive pardon.
8. Manufacturing of medical cannabis by a registered organization
shall only be done in a secure facility located in New York state, which
may include a greenhouse. The board shall promulgate regulations estab-
lishing requirements for such facilities.
9. Dispensing of medical cannabis by a registered organization shall
only be done in an indoor, enclosed, secure facility located in New York
state. The board shall promulgate regulations establishing requirements
for such facilities.
10. A registered organization shall determine the quality, safety, and
clinical strength of medical cannabis manufactured or dispensed by the
registered organization, and shall provide documentation of that quali-
ty, safety and clinical strength to the office and to any person or
entity to which the medical cannabis is sold or dispensed.
11. A registered organization shall be deemed to be a "health care
provider" for the purposes of title two-D of article two of the public
health law.
12. Medical cannabis shall be dispensed to a certified patient or
designated caregiver in a sealed and properly labeled package as deter-
mined by the executive director. The labeling shall contain: (a) the
information required to be included in the receipt provided to the
certified patient or designated caregiver by the registered organiza-
tion; (b) the packaging date; (c) any applicable date by which the
medical cannabis should be used; (d) a warning stating, "This product is
for medicinal use only. Women should not consume during pregnancy or
while breastfeeding except on the advice of the certifying health care
practitioner, and in the case of breastfeeding mothers, including the
infant's pediatrician. This product might impair the ability to drive.
Keep out of reach of children."; (e) the amount of individual doses
contained within; (f) a warning that the medical cannabis must be kept
in the original container in which it was dispensed; and (g) any other
information required by the office.
13. The board is authorized to make rules and regulations restricting
the advertising and marketing of medical cannabis.
14. The board is authorized to make rules and regulations regulating
the packaging, labeling, form and method of administration or ingestion,
branding and marketing of medical cannabis products to prohibit acci-
dental or overconsumption.
§ 35. Registering of registered organizations. 1. Application for
initial registration. (a) An applicant for registration as a registered
organization under section thirty-four of this article shall include
such information prepared in such manner and detail as the executive
director may require, including but not limited to:
(i) a description of the activities in which it intends to engage as a
registered organization;
(ii) that the applicant:
(A) is of good moral character;
S. 2509--A 63 A. 3009--A
(B) possesses or has the right to use sufficient land, buildings, and
other premises, which shall be specified in the application, and equip-
ment to properly carry on the activity described in the application, or
in the alternative posts a bond of not less than two million dollars;
(C) is able to maintain effective security and control to prevent
diversion, abuse, and other illegal conduct relating to the cannabis;
and
(D) is able to comply with all applicable state laws and regulations
relating to the activities in which it is applying to engage in under
the registration;
(iii) that the applicant has entered into a labor peace agreement with
a bona fide labor organization that is actively engaged in representing
or attempting to represent the applicant's employees and the maintenance
of such a labor peace agreement shall be an ongoing material condition
of certification;
(iv) the applicant's status as a for-profit business entity or not-
for-profit corporation; and
(v) the application shall include the name, residence address and
title of each of the officers and directors and the name and residence
address of any person or entity that is a member of the applicant
including those of the applicant's parent companies, subsidiaries or
affiliates. Each such person, if an individual, or lawful represen-
tative if a legal entity, shall submit an affidavit with the application
setting forth:
(A) any position of management, interest, or ownership during the
preceding ten years of a ten per centum or greater interest in any other
cannabis business or applicant, located in or outside of this state,
manufacturing or distributing drugs, including indirect interest manage-
ment or ownership of parent companies, subsidiaries, or affiliates;
(B) whether such person or any such business has had a cannabis busi-
ness application denied or withdrawn or been convicted of a felony or
had a registration or license subject to administrative action, includ-
ing but not limited to violations, penalties, or consent agreements, or
had any registration or license suspended or revoked in any administra-
tive or judicial proceeding; and
(C) such other information as the executive director may reasonably
require to enforce the licensing restrictions of this chapter.
2. The applicant shall be under a continuing duty to obtain approval
from the office prior to any material changes in ownership, management,
or financial or managerial interest, or prior to substantive operational
changes, and to disclose any change in facts or circumstances reflected
in the application or any newly discovered or occurring fact or circum-
stance which is required to be included in the application.
3. (a) The executive director may grant a registration, approve one or
more activities permitted under a registration, or grant a requested
amendment to a registration under this section if they are satisfied
that:
(i) the applicant will be able to maintain effective control against
diversion of cannabis;
(ii) the applicant will be able to comply with all applicable state
laws and regulations;
(iii) the applicant and its officers are ready, willing and able to
properly carry on the manufacturing or distributing activity for which a
registration is sought;
S. 2509--A 64 A. 3009--A
(iv) the applicant possesses or has the right to use sufficient land,
buildings and equipment to properly carry on the activity described in
the application;
(v) it is in the public interest that such registration be granted,
including but not limited to:
(A) whether the number of registered organizations in an area will be
adequate or excessive to reasonably serve the state or area's patient
need and demand;
(B) whether the registered organization is a minority and/or woman
owned business enterprise or a service-disabled veteran-owned business;
(C) whether the registered organization provides education and
outreach to practitioners;
(D) whether the registered organization promotes the research and
development of medical cannabis and/or patient outreach; and
(E) the affordability medical cannabis products offered by the regis-
tered organization;
(vi) the applicant and its managing officers and interest holders are
of good moral character and have demonstrated a record and history of
compliance with cannabis laws and regulations in the jurisdictions where
they operate or have operated cannabis licenses and/or registrations;
(vii) the applicant has entered into a labor peace agreement with a
bona fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees; and the maintenance
of such a labor peace agreement shall be an ongoing material condition
of registration; and
(viii) the applicant satisfies any other conditions as determined by
the executive director.
(b) If the executive director is not satisfied that the applicant
should be issued a registration or granted approval to amend an existing
registration, he or she shall notify the applicant in writing of those
factors upon which the denial is based. Within thirty days of the
receipt of such notification, the applicant may submit a written request
to the board to appeal the decision.
(c) The fee for a registration under this section shall be an amount
determined by the office in regulations.
(d) Registrations issued under this section shall be effective only
for the registered organization and shall specify:
(i) the name and address of the registered organization;
(ii) which activities of a registered organization are permitted by
the registration;
(iii) the land, buildings and facilities that may be used for the
permitted activities of the registered organization; and
(iv) such other information as the executive director shall reasonably
provide to assure compliance with this article.
(e) Upon application of a registered organization, a registration may
be amended to allow the registered organization to relocate within the
state or to add or delete permitted registered organization activities
or facilities. The fee for such amendment request shall be determined by
the executive director.
4. A registration issued under this section shall be valid for two
years from the date of issue.
5. (a) An application for the renewal of any registration issued
under this section shall be filed with the office not more than six
months nor less than four months prior to the expiration thereof. A
late-filed application for the renewal of a registration may, in the
S. 2509--A 65 A. 3009--A
discretion of the executive director, be treated as an application for
an initial license.
(b) The application for renewal shall include such information
prepared in the manner and detail as the executive director may require,
including but not limited to:
(i) any material change in the circumstances or factors listed in
subdivision one of this section; and
(ii) every known charge or investigation, pending or concluded during
the period of the registration, by any governmental or administrative
agency with respect to:
(A) each incident or alleged incident involving the theft, loss, or
possible diversion of cannabis manufactured or distributed by the appli-
cant; and
(B) compliance by the applicant with the laws of any state or territo-
ry with respect to the cultivation, manufacture, distribution or sale of
adult-use cannabis or medical cannabis.
(c) An applicant for renewal shall be under a continuing duty to
report to the office any change in facts or circumstances reflected in
the application or any newly discovered or occurring fact or circum-
stance which is required to be included in the application, and to
obtain approval prior to any material change in ownership interest,
management or operations.
(d) If the executive director is not satisfied that the registered
organization applicant is entitled to a renewal of the registration, he
or she shall within a reasonably practicable time as determined by the
executive director, serve upon the registered organization or its attor-
ney of record in person or by registered or certified mail an order
directing the registered organization to show cause why its application
for renewal should not be denied. The order shall specify in detail the
respects in which the applicant has not satisfied the executive director
that the registration should be renewed.
6. (a) The executive director shall renew a registration unless he or
she determines and finds that:
(i) the applicant is unlikely to maintain or be able to maintain
effective control against diversion;
(ii) the applicant is unlikely to comply with all state laws and regu-
lations applicable to the registration application and activities in
which it may engage under the registration;
(iii) it is not in the public interest to renew the registration
because the number of registered organizations in an area is excessive
to reasonably serve the state or area and patient need;
(iv) the applicant has either violated or terminated its labor peace
agreement; or
(v) the applicant has substantively violated this chapter, regulations
promulgated thereunder, or the laws of another jurisdiction in which
they operate or have operated a cannabis license or registration.
(b) For purposes of this section, proof that a registered organiza-
tion, during the period of its registration, has failed to maintain
effective control against diversion, violated any provision of this
article, or has knowingly or negligently failed to comply with applica-
ble state laws relating to the activities in which it engages under the
registration, may constitute grounds for suspension, revocation or limi-
tation of the registered organization's registration or as determined by
the executive director. The registered organization shall also be under
a continuing duty to report to the office and obtain prior approval for
S. 2509--A 66 A. 3009--A
any material change or fact or circumstance to the information provided
in the registered organization's application.
7. The office may suspend or revoke the registration of a registered
organization, on grounds and using procedures under this article relat-
ing to a license, to the extent consistent with this article. The
office shall suspend or revoke the registration in the event that a
registered organization violates or terminates the applicable labor
peace agreement. Conduct in compliance with this article which may
violate conflicting federal law, shall not in and of itself be grounds
to suspend or terminate a registration.
8. The office shall begin issuing registrations for registered organ-
izations as soon as practicable after the certifications required by
this article are given.
9. The office shall register at least ten registered organizations
that manufacture medical cannabis with no more than four dispensing
sites wholly owned and operated by such registered organization. The
executive director shall ensure that such registered organization,
dispensing sites or approved delivery activities are geographically
distributed across the state to satisfy patient and program need. The
executive director may register additional registered organizations.
§ 36. Intentionally omitted.
§ 37. Reports of registered organizations. 1. The executive director
shall require each registered organization to file reports by the regis-
tered organization during a particular period. The executive director
shall determine the information to be reported and the forms, time, and
manner of the reporting.
2. The executive director shall require each registered organization
to adopt and maintain security, tracking, record keeping, record
retention and surveillance systems, relating to all medical cannabis at
every stage of acquiring, possession, manufacture, sale, delivery,
transporting, distributing, or dispensing by the registered organiza-
tion, subject to regulations of the board.
§ 38. Evaluation; research programs; report by office. 1. The execu-
tive director may provide for the analysis and evaluation of the opera-
tion of this article. The executive director may enter into agreements
with one or more persons, not-for-profit corporations or other organiza-
tions, for the performance of an evaluation of, or to aid in, the imple-
mentation and effectiveness of this article.
2. The office may develop, seek any necessary federal approval for,
and carry out research programs relating to medical use of cannabis.
Participation in any such research program shall be voluntary on the
part of practitioners, patients, and designated caregivers.
3. The office shall report every two years, beginning two years after
the effective date of this chapter, to the governor and the legislature
on the medical use of cannabis under this article and make appropriate
recommendations.
§ 39. Cannabis research license. 1. The board shall establish a
cannabis research license that permits a licensee to produce, process,
purchase and/or possess cannabis for the following limited research
purposes:
(a) to test chemical potency and composition levels;
(b) to conduct clinical investigations of cannabis-derived drug
products;
(c) to conduct research on the efficacy and safety of administering
cannabis as part of medical treatment; and
(d) to conduct genomic or agricultural research.
S. 2509--A 67 A. 3009--A
2. As part of the application process for a cannabis research license,
an applicant shall submit to the office a description of the research
that is intended to be conducted as well as the amount of cannabis to be
grown or purchased. The office shall review an applicant's research
project and determine whether it meets the requirements of subdivision
one of this section. In addition, the office shall assess the applica-
tion based on the following criteria:
(a) project quality, study design, value, and impact;
(b) whether the applicant has the appropriate personnel, expertise,
facilities and infrastructure, funding, and human, animal, or other
approvals in place to successfully conduct the project; and
(c) whether the amount of cannabis to be grown or purchased by the
applicant is consistent with the project's scope and goals. If the
office determines that the research project does not meet the require-
ments of subdivision one of this section, the application must be
denied.
3. A cannabis research licensee may only sell cannabis grown or within
its operation to other cannabis research licensees. The office may
revoke a cannabis research license for violations of this subdivision.
4. A cannabis research licensee may contract with the higher education
institutions to perform research in conjunction with the university. All
research projects, entered into under this section shall be approved by
the office and meet the requirements of subdivision one of this section.
5. In establishing a cannabis research license, the board may adopt
regulations on the following:
(a) application requirements;
(b) cannabis research license renewal requirements, including whether
additional research projects may be added or considered;
(c) conditions for license revocation;
(d) security measures to ensure cannabis is not diverted to purposes
other than research;
(e) amount of plants, useable cannabis, or concentrated cannabis a
licensee may have on its premises;
(f) licensee reporting requirements;
(g) conditions under which cannabis grown by licensed or registered
cannabis producers and other product types from licensed cannabis
processors may be donated to cannabis research licensees; and
(h) any additional requirements deemed necessary by the office.
6. A cannabis research license issued pursuant to this section shall
be issued in the name of the applicant, specify the location at which
the cannabis researcher intends to operate, which shall be within the
state of New York unless otherwise permitted under federal law, and the
holder thereof may not allow any other person to use the license.
7. The application and license fees for a cannabis research license
shall be determined by the executive director on an annual basis and may
be based on the size, scope and duration of the research proposed.
8. Each cannabis research licensee shall issue an annual report to the
office. The office shall review such report and make a determination as
to whether the research project continues to meet the research quali-
fications under this section.
§ 40. Registered organizations and adult-use cannabis. 1. The board
shall have the authority to hold a competitive bidding process, includ-
ing, in its discretion the ability to set price by an auction, to deter-
mine the registered organization(s) authorized to be licensed to culti-
vate, process, distribute and/or sell adult-use cannabis and to collect
the fees generated from such auction to administer the office's social
S. 2509--A 68 A. 3009--A
and economic equity plan and other duties prescribed by this chapter,
and notwithstanding the prohibitions in article four of this chapter the
board may permit such bidders to continue to participate in adult-use
cannabis as a vertically integrated entity if such competitive process
permits.
2. Alternatively, registered organizations may apply for licensure as
an adult-use cannabis cultivator, adult-use cannabis processor, and
adult-use cannabis distributor, or apply for licensure as an adult-use
cannabis retail dispensary, subject to all of the restrictions and limi-
tations set forth in article four of this chapter.
3. Any registered organization which is licensed to cultivate, proc-
ess, distribute and sell adult-use cannabis and cannabis products pursu-
ant to this section and article four of this chapter, shall be required
to maintain sufficient supply and distribution of medical cannabis
products for certified patients pursuant to regulations promulgated by
the board.
§ 41. Intentionally omitted.
§ 42. Relation to other laws. 1. The provisions of this article shall
apply, except that where a provision of this article conflicts with
another provision of this chapter, this article shall apply.
2. Medical cannabis shall not be deemed to be a "drug" for purposes of
article one hundred thirty-seven of the education law.
§ 43. Protections for the medical use of cannabis. 1. Certified
patients, designated caregivers, designated caregiver facilities, prac-
titioners, registered organizations and the employees of registered
organizations, and cannabis researchers shall not be subject to arrest,
prosecution, or penalty in any manner, or denied any right or privilege,
including but not limited to civil penalty or disciplinary action by a
business or occupational or professional licensing board or bureau,
solely for the certified medical use or manufacture of cannabis, or for
any other action or conduct, in accordance with this article.
2. Being a certified patient shall be deemed to be having a "disabili-
ty" under article fifteen of the executive law, section forty-c of the
civil rights law, sections 240.00, 485.00, and 485.05 of the penal law,
and section 200.50 of the criminal procedure law. This subdivision shall
not bar the enforcement of a policy prohibiting an employee from
performing his or her employment duties while impaired by or under the
influence of a controlled substance. This subdivision shall not require
any person or entity to do any act that would put the person or entity
in direct violation of federal law or cause it to lose a federal
contract or funding.
3. The fact that a person is a certified patient and/or acting in
accordance with this article, shall not be a consideration in a proceed-
ing pursuant to applicable sections of the domestic relations law, the
social services law and the family court act.
4. (a) Certification applications, certification forms, any certified
patient information contained within a database, and copies of registry
identification cards shall be deemed exempt from public disclosure under
sections eighty-seven and eighty-nine of the public officers law. Upon
specific request by a certified patient to the office, the office may
verify the requesting patient's status as a valid certified patient to
the patient's school or employer, to ensure compliance with the
protections afforded by this section.
(b) The name, contact information, and other information relating to
practitioners registered with the office under this article shall be
public information and shall be maintained by the executive director on
S. 2509--A 69 A. 3009--A
the office's website accessible to the public in searchable form. Howev-
er, if a practitioner notifies the office in writing that he or she does
not want his or her name and other information disclosed, that practi-
tioner's name and other information shall thereafter not be public
information or maintained on the office's website, unless the practi-
tioner cancels the request.
§ 44. Regulations. The board shall make regulations to implement this
article.
§ 45. Suspend; terminate. Based upon the recommendation of the execu-
tive director and/or the superintendent of state police that there is a
risk to the public health or safety, the governor may immediately termi-
nate all licenses issued to registered organizations.
§ 46. Pricing. 1. The executive director may require the sale of
medical cannabis to be at or below an approved price established by the
executive director. Every charge made or demanded for medical cannabis
not in accordance with an approved price, is prohibited.
2. In reviewing the per dose price of each form of medical cannabis,
the executive director may consider the fixed and variable costs of
producing the form of cannabis and any other factor the executive direc-
tor, in his or her discretion, deems relevant in reviewing the per dose
price of each form of medical cannabis.
§ 47. Severability. If any clause, sentence, paragraph, section or
part of this article shall be adjudged by any court of competent juris-
diction to be invalid, the judgment shall not affect, impair, or invali-
date the remainder thereof, but shall be confined in its operation to
the clause, sentence, paragraph, section or part thereof directly
involved in the controversy in which the judgment shall have been
rendered.
ARTICLE 4
ADULT-USE CANNABIS
Section 60. Licenses issued.
61. Awarding of licenses.
62. Information to be requested in response to the request for
proposals.
63. Fees.
64. Approval and selection criteria.
65. Limitations of licensure; duration.
66. License renewal.
67. Amendments; changes in ownership and organizational struc-
ture.
68. Adult-use cultivator license.
69. Adult-use processor license.
70. Adult-use cooperative license.
71. Adult-use distributor license.
72. Adult-use retail dispensary license.
73. Intentionally omitted.
74. Intentionally omitted.
75. Record keeping and tracking.
76. Inspections and ongoing requirements.
77. Adult-use cultivators, processors or distributors not to be
interested in retail dispensaries.
78. Packaging, labeling, form and administration of adult-use
cannabis products.
79. Laboratory testing.
S. 2509--A 70 A. 3009--A
80. Provisions governing the cultivation and processing of
adult-use cannabis.
81. Provisions governing the distribution of adult-use cannabis.
82. Provisions governing adult-use cannabis retail dispensaries.
83. Adult-use cannabis advertising and marketing.
84. Minority, women-owned businesses and disadvantaged farmers;
social and economic equity plan.
85. Regulations.
§ 60. Licenses issued. The following kinds of licenses shall be
issued by the executive director for the cultivation, processing,
distribution and sale of cannabis to cannabis consumers:
1. Adult-use cultivator license;
2. Adult-use processor license;
3. Adult-use cooperative license;
4. Adult-use distributor license;
5. Adult-use retail dispensary license; and
6. Any other type of license as prescribed by the executive director
in regulation.
§ 61. Awarding of licenses. 1. The board shall issue a request for
proposals for licenses authorized pursuant to this section, and may
award as many licenses in such classes as the board sets out in such
request.
2. Except as otherwise provided in this article, a separate license
shall be required for each facility at which cultivation, processing,
distribution or retail dispensing is conducted.
3. An award shall not be denied for a license under this article based
solely on a conviction for a violation of article two hundred twenty or
section 240.36 of the penal law, prior to the date article two hundred
twenty-one of the penal law took effect, or a conviction for a violation
of article two hundred twenty-one of the penal law after the effective
date of this chapter.
§ 62. Information to be requested in response to the request for
proposals. 1. The office shall have the authority to prescribe the
manner and form in which a response must be submitted to the office.
Such information may include, but is not limited to: information about
the applicant's identity, including racial and ethnic diversity; owner-
ship and investment information, including the corporate structure;
evidence of good moral character, including the submission of finger-
prints by the applicant to the division of criminal justice services;
information about the premises to be licensed; financial statements; and
any other information prescribed in regulation.
2. All responses shall be signed by the applicant (if an individual),
by a managing partner (if a limited liability corporation), by an offi-
cer (if a corporation), or by all partners (if a partnership). Each
person signing such response shall verify it or affirm it as true under
the penalties of perjury.
3. All responses shall be accompanied by a check, draft or other forms
of payment as the office may require or authorize in the amount required
by this article for such license or permit.
4. If there be any proposed change, after the filing of the response
or the award of a license, in any of the facts required to be set forth
in such application, a supplemental statement requesting approval of
such change, cost and source of money involved in the change, duly veri-
fied, shall be submitted to the office at least thirty days prior to
such proposed change. Failure to do so shall, if willful and deliberate,
be cause for revocation of the license.
S. 2509--A 71 A. 3009--A
5. In giving any notice, or taking any action in reference to a regis-
tered organization or licensee of a licensed premises, the office may
rely upon the information furnished in such response and in any supple-
mental statement or request connected therewith, and such information
may be presumed to be correct, and shall be binding upon a registered
organization, licensee or licensed premises as if correct. All informa-
tion required to be furnished in such response, requests or supplemental
statements shall be deemed material in any prosecution for perjury, any
proceeding to revoke or suspend any license, or impose a fine and in the
office's determination to approve or deny the license.
6. The office may, in its discretion, waive the submission of any
category of information described in this section for any category of
license or permit, provided that it shall not be permitted to waive the
requirement for submission of any such category of information solely
for an individual proposer or proposers.
7. The office may, in its discretion, wholly prohibit and/or prescribe
specific criteria under which it will consider and allow limited trans-
fers or changes of ownership, interest, or control during the registra-
tion or license application period and/or up to two years after an
approved applicant commences licensed activities.
§ 63. Fees. 1. The office shall have the authority to charge proposers
under this article a non-refundable application fee and/or to auction
licenses to bidders determined by the office to be qualified for such
licensure based on the selection criteria in section sixty-four of this
article. Such fee may be based on the type of licensure sought, culti-
vation and/or production volume, sequence or priority of issuance, or
any other factors deemed necessary, reasonable and appropriate by the
office to achieve the policy and purpose of this chapter.
2. The office shall have the authority to charge licensees a biennial
or annual license fee which shall be non-refundable. Such fee may be
based on the amount of cannabis to be cultivated, processed, distributed
and/or dispensed by the licensee or the gross annual receipts of the
licensee for the previous license period, or any other factors deemed
reasonable and appropriate by the office.
3. The office shall have the authority to waive or reduce fees pursu-
ant to this section for social and economic equity applicants.
§ 64. Approval and selection criteria. 1. The board shall develop
regulations for use by the office in determining whether or not a propo-
ser shall be awarded a license and subsequently granted the privilege of
holding an adult-use cannabis license. The criteria for such approval or
subsequent issuance shall be based on, but not limited to, the following
criteria:
(a) the proposer will be able to maintain effective control against
the illegal diversion or inversion of cannabis;
(b) the proposer will be able to comply with all applicable state laws
and regulations;
(c) the proposer and its officers are ready, willing, and able to
properly carry on the activities for which a license is sought;
(d) where appropriate and applicable, the proposer possesses or has
the right to use, or opportunity to acquire, sufficient land, buildings,
and equipment to properly carry on the activity described in the appli-
cation;
(e) it is in the public interest that such license be granted, taking
into consideration, but not limited to, the following criteria:
(i) that it is a privilege, and not a right, to cultivate, process,
distribute, and sell cannabis;
S. 2509--A 72 A. 3009--A
(ii) the number, classes, scope and character of other licenses or
approved applicants in proximity to the location or in the state, county
or particular municipality or subdivision thereof as appropriate;
(iii) evidence that all necessary licenses and permits have been
obtained from the state and all other governing bodies;
(iv) the history of cannabis or other relevant regulatory violations
at the proposed location or by the applicant in any relevant jurisdic-
tion, as well as any pattern of violations under this chapter, and
reported criminal activity at the proposed premises;
(v) the effect on the production, price and availability of cannabis
and cannabis products; and
(vi) any other factors specified by law or regulation that are rele-
vant to determine that granting a license would promote public health
and safety and the public interest of the state, county or community;
(f) the proposer and its managing officers are of good moral character
and do not have an ownership or controlling interest in more licenses,
registrations, permits, or the scope of activity allowed by this chap-
ter, or any regulations promulgated hereunder;
(g) the proposer has entered into a labor peace agreement with a bona-
fide labor organization that is actively engaged in representing or
attempting to represent the proposer's employees, and the maintenance of
such a labor peace agreement shall be an ongoing material condition of
licensure.
(h) the proposer will contribute to communities, the workforce and
people disproportionately harmed by cannabis law enforcement through
participation in the social and economic equity plan implemented by the
office or other suitable means;
(i) if the response is for an adult-use cultivator license, the envi-
ronmental impact of the facility to be licensed; and
(j) the proposer satisfies any other conditions as determined by the
executive director.
2. If the executive director is not satisfied that the proposer is
eligible to be approved, or subsequently should be issued a license, the
executive director shall notify the proposer in writing of the specific
reason or reasons for denial.
§ 65. Limitations of licensure; duration. 1. No license of any kind
may be issued to a person under the age of twenty-one years, nor shall
any licensee employ anyone under the age of eighteen years.
2. No person shall sell, deliver or give away or cause or permit or
procure to be sold, delivered or given away any cannabis to any person,
actually or apparently, under the age of twenty-one years, or any visi-
bly intoxicated person.
3. No licensee, registrant or permittee shall knowingly sell, deliver
or give away or cause or permit or procure to be sold, delivered or
given away to a lawful cannabis consumer any amount of cannabis which
would cause the lawful cannabis consumer to be in violation of the
possession limits established by this chapter, or their equivalent as
determined by the executive director.
4. The office shall have the authority to limit, by canopy, plant
count, square footage or other means, the amount of cannabis allowed to
be grown, processed, distributed or sold by a licensee.
5. All licenses under this article shall expire two years after the
date of issue.
§ 66. License renewal. 1. Each license, issued pursuant to this arti-
cle, may be approved for renewal upon application therefor by the licen-
see and the payment of the fee for such license as prescribed by this
S. 2509--A 73 A. 3009--A
article. In the case of applications for renewals, the office may
dispense with the requirements of such statements as it deems unneces-
sary in view of those contained in the application made for the original
license, but in any event the submission of photographs of the licensed
premises may be dispensed with, provided the applicant for such renewal
shall file a statement with the office to the effect that there has been
no alteration of such premises since the original license was issued.
The office may make such rules as it deems necessary, not inconsistent
with this chapter, regarding applications for renewals of licenses and
permits and the time for making the same.
2. The office shall create a social responsibility framework agreement
and make the adherence to and fulfillment of such agreement a condi-
tional requirement of license renewal.
3. The office shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
4. The office may only issue a renewal license upon receipt of the
prescribed renewal application and renewal fee from a licensee if, in
addition to the criteria in this section, the licensee's license is not
under suspension and has not been revoked.
5. Each applicant must maintain a labor peace agreement with a bona-
fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees and the maintenance of
such a labor peace agreement shall be an ongoing material condition of
licensure.
§ 67. Amendments; changes in ownership and organizational structure.
1. Licenses issued pursuant to this article shall specify:
(a) the name and address of the licensee;
(b) the activities permitted by the license;
(c) the land, buildings, facilities, locations or areas that may be
used for the licensed activities of the licensee;
(d) a unique license number issued by the office to the licensee; and
(e) such other information as the executive director shall deem neces-
sary to assure compliance with this chapter.
2. Upon application to the office, a response to a request for
proposals or license may be amended to allow the applicant or licensee
to relocate within the state, to add or delete licensed activities or
facilities, or to amend the ownership or organizational structure of the
entity that is the applicant or licensee, upon approval by the executive
director. The fee for such amendment shall be determined by the execu-
tive director.
3. A license shall become void by a change in ownership, management,
interest, substantial corporate change, location, or material changes in
operations without prior written approval of the executive director. The
executive director may specify the process for amendment requests and
allowing for certain types of changes in ownership without the need for
prior written approval.
4. For purposes of this section, "substantial corporate change" shall
mean:
(a) for a corporation, a change of five percent or more of the offi-
cers and/or directors, or a transfer of five percent or more of stock of
such corporation, or an existing stockholder obtaining five percent or
more of the stock of such corporation; or
(b) for a limited liability company, a change of five percent or more
of the managing members of the company, or a transfer of five percent or
more of ownership interest in said company, or an existing member
S. 2509--A 74 A. 3009--A
obtaining a cumulative of five percent or more of the ownership interest
in said company.
§ 68. Adult-use cultivator license. 1. An adult-use cultivator's
license shall authorize the acquisition, possession, cultivation and
sale of cannabis from the licensed premises of the adult-use cultivator
by such licensee to duly licensed processors in this state. The board
may establish regulations allowing licensed adult-use cultivators to
perform certain types of minimal processing, defined in regulation,
without the need for an adult-use processor license.
2. For purposes of this section, cultivation shall include, but not be
limited to, the planting, growing, cloning, harvesting, drying, curing,
grading and trimming of cannabis.
3. A person holding an adult-use cultivator's license may apply for,
and obtain, not more than one processor's license and one distributor's
license.
4. A person holding an adult-use cultivator's license may not also
hold a retail dispensary license pursuant to this article and no adult-
use cannabis cultivator shall have a direct or indirect interest,
including by stock ownership, interlocking directors, mortgage or lien,
personal or real property, management agreement, share parent companies
or affiliate organizations, or any other means, in any premises licensed
as an adult-use cannabis retail dispensary or in any business licensed
as an adult-use cannabis retail dispensary pursuant to this article.
5. No person may have a direct or indirect financial or controlling
interest in more than one adult-use cultivator license issued pursuant
to this chapter, provided that one adult-use cultivator license may
authorize adult-use cultivation in more than one location pursuant to
criteria established by the board in regulation.
6. The executive director shall have the authority to issue microbusi-
ness licenses, allowing microbusiness licensees to cultivate, process,
distribute and retail adult-use cannabis direct to licensed cannabis
retailers and consumers, under a single license. The board may estab-
lish through regulation microbusiness license eligibility criteria and
production limits of total cannabis cultivated, processed and/or
distributed annually for microbusiness licenses.
§ 69. Adult-use processor license. 1. A processor's license shall
authorize the acquisition, possession, processing and sale of cannabis
from the licensed premises of the adult-use cultivator by such licensee
to duly licensed distributors.
2. For purposes of this section, processing shall include, but not be
limited to, blending, extracting, infusing, packaging, labeling, brand-
ing or otherwise making or preparing cannabis products. Processing shall
not include the cultivation of cannabis.
3. No processor shall be engaged in any other business on the premises
to be licensed; except that a person issued an adult-use cannabis culti-
vator, processor, and/or distributor license may hold and operate all
issued licenses on the same premises.
4. No cannabis processor licensee may hold more than one cannabis
processor license, provided a single license may authorize processor
activities at multiple locations.
5. No adult-use cannabis processor shall have a direct or indirect
interest, including by stock ownership, interlocking directors, mortgage
or lien, personal or real property, management agreement, or through
parent organizations or affiliate entities, or any other means, in any
premises licensed as an adult-use cannabis retail dispensary or in any
S. 2509--A 75 A. 3009--A
business licensed as an adult-use cannabis retail dispensary pursuant to
this article.
§ 70. Adult-use cooperative license. 1. A cooperative license shall
authorize the acquisition, possession, cultivation, processing or sale
from the licensed premises of the adult-use cooperative by such licensee
to duly licensed distributors and/or retail dispensaries; but not
directly to cannabis consumers.
2. To be licensed as an adult-use cooperative, the cooperative must:
(a) be comprised of residents of the state of New York as a limited
liability company or limited liability partnership under the laws of the
state, or an appropriate business structure as determined by the board;
(b) subordinate capital, both as regards control over the cooperative
undertaking, and as regards the ownership of the pecuniary benefits
arising therefrom;
(c) be democratically controlled by the members themselves on the
basis of one vote per member;
(d) vest in and allocate with priority to and among the members of all
increases arising from their cooperative endeavor in proportion to the
members' active participation in the cooperative endeavor; and
(e) operate according to the seven cooperative principles published by
the International Cooperative Alliance in nineteen hundred ninety-five.
3. No person shall be a member of more than one adult-use cooperative
licensed pursuant to this section.
4. No person or member of an adult-use cooperative license may have a
direct or indirect financial or controlling interest in any other
adult-use cannabis license issued pursuant to this chapter.
5. No adult-use cannabis cooperative shall have a direct or indirect
interest, including by stock ownership, interlocking directors, mortgage
or lien, personal or real property, or any other means, in any premises
licensed as an adult-use cannabis retail dispensary or in any business
licensed as an adult-use cannabis retail dispensary pursuant to this
article.
6. The board shall promulgate regulations governing cooperative
licenses, including, but not limited to, the establishment of canopy
limits and other restrictions on the size and scope of cooperative
licensees.
§ 71. Adult-use distributor license. 1. A distributor's license shall
authorize the acquisition, possession, distribution and sale of cannabis
from the licensed premises of a licensed adult-use processor, microbusi-
ness cultivator, adult-use cooperative, or registered organization
authorized to sell adult-use cannabis, or any other person licensed,
registered or permitted by the office to sell or transfer cannabis to or
within the state, to duly licensed retail dispensaries.
2. No distributor shall have a direct or indirect economic interest in
any microbusiness or adult-use retail dispensary licensed pursuant to
this article, or in any registered organization registered pursuant to
article three of this chapter. This restriction shall not prohibit a
registered organization authorized pursuant to section forty of this
chapter, from being granted licensure by the office to distribute
adult-use cannabis products cultivated and processed by the registered
organization to the registered organization's own licensed adult-use
retail dispensaries.
3. Nothing in subdivision two of this section shall prevent a distrib-
utor from charging an appropriate fee for the distribution of cannabis,
including based on the volume of cannabis distributed.
S. 2509--A 76 A. 3009--A
4. Adult-use distributor licensees are subject to minimum operating
requirements as determined by the board in regulation.
§ 72. Adult-use retail dispensary license. 1. A retail dispensary
license shall authorize the acquisition, possession and sale of cannabis
from the licensed premises of the retail dispensary by such licensee to
cannabis consumers.
2. No person may have a direct or indirect financial or controlling
interest in more than three retail dispensary licenses issued pursuant
to this chapter. This restriction shall not prohibit a registered organ-
ization, authorized pursuant to section forty of this chapter, from
being granted licensure by the office to sell adult-use cannabis at
locations previously registered by the department of health; subject to
any conditions, limitations or restrictions established by the office.
3. No person holding a retail dispensary license may also hold or have
any interest in an adult-use cultivation, processor, microbusiness,
cooperative or distributor license pursuant to this article.
4. No retail license shall be granted for any premises, unless the
applicant shall be the owner thereof, or shall be in possession of said
premises under a lease, management agreement or other agreement giving
the applicant control over the premises, in writing, for a term not less
than the license period.
5. No cannabis retail licensee shall locate a storefront within five
hundred feet of a building occupied exclusively as a school.
§ 73. Intentionally omitted.
§ 74. Intentionally omitted.
§ 75. Record keeping and tracking. The board shall, by regulation,
require each licensee pursuant to this article to adopt and maintain
security, tracking, record keeping, record retention and surveillance
systems, relating to all cannabis at every stage of acquiring,
possession, manufacture, sale, delivery, transporting, or distributing
by the licensee.
§ 76. Inspections and ongoing requirements. All licensed or permitted
premises, regardless of the type of premises, and records including but
not limited to financial statements and corporate documents, shall be
subject to inspection by the office, by the duly authorized represen-
tatives of the office, by any peace officer acting pursuant to his or
her special duties, or by a police officer. The office shall make
reasonable accommodations so that ordinary business is not interrupted
and safety and security procedures are not compromised by the
inspection. A person who holds a license or permit must make himself or
herself, or an agent thereof, available and present for any inspection
required by the office. Such inspection may include, but is not limited
to, ensuring compliance by the licensee or permittee with all of the
requirements of this article, the regulations promulgated pursuant ther-
eto, and other applicable building codes, fire, health, safety, and
governmental regulations, including at the municipal, county, and state
level and include any inspector or official of relevant jurisdiction.
§ 77. Adult-use cultivators, processors or distributors not to be
interested in retail dispensaries. 1. It shall be unlawful for a culti-
vator, processor, microbusiness, cooperative or distributor licensed
under this article to:
(a) be interested directly or indirectly in any premises where any
cannabis product is sold at retail; or in any business devoted wholly or
partially to the sale of any cannabis product at retail by stock owner-
ship, interlocking directors, mortgage or lien or any personal or real
property, or by any other means.
S. 2509--A 77 A. 3009--A
(b) make, or cause to be made, any loan to any person engaged in the
manufacture or sale of any cannabis product at wholesale or retail.
(c) make any gift or render any service of any kind whatsoever,
directly or indirectly, to any person licensed under this chapter which
in the judgment of the office may tend to influence such licensee to
purchase or promote the product of such cultivator or processor or
distributor.
(d) enter into any contract or agreement with any retail licensee
whereby such licensee agrees to confine his sales to cannabis products
manufactured or sold by one or more such cultivator or processors or
distributors. Any such contract shall be void and subject the licenses
of all parties concerned to revocation for cause and any applicable
administrative enforcement and penalties.
2. The provisions of this section shall not prohibit a microbusiness,
or registered organization authorized pursuant to section forty of this
chapter, from cultivating, processing, distributing and selling adult-
use cannabis under this article, at facilities wholly owned and operated
by such microbusiness or registered organization, subject to any condi-
tions, limitations or restrictions established by the office.
3. The board shall have the authority to create rules and regulations
in regard to this section.
§ 78. Packaging, labeling, form and administration of adult-use canna-
bis products. 1. The board is hereby authorized to promulgate rules and
regulations governing the packaging, labeling, form and method of admin-
istration or ingestion, branding and marketing of cannabis products,
sold or possessed for sale in New York state.
2. Such regulations shall include, but not be limited to, requiring
that:
(a) packaging meets requirements similar to the federal "poison
prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
(b) prior to delivery or sale at a retailer, cannabis and cannabis
products shall be labeled according to regulations and placed in a
resealable, child-resistant package; and
(c) packages, labels, forms and products shall not be made to be
attractive to or target persons under the age of twenty-one.
3. Such regulations shall include requiring labels warning consumers
of any potential impact on human health resulting from the consumption
of cannabis products that shall be affixed to those products when sold,
if such labels are deemed warranted by the office and may establish
standardized and/or uniform packaging requirements for adult-use
products.
4. Such rules and regulations shall determine serving sizes for canna-
bis products, active cannabis concentration per serving size, and number
of servings per container. Such regulations may also require a nutri-
tional fact panel that incorporates data regarding serving sizes and
potency thereof.
5. Such rules and regulations shall establish approved product types
and forms and establish an application and review process to determine
the suitability of new product types and forms, taking into consider-
ation the consumer and public health and safety implications of differ-
ent product varieties, manufacturing processes, product types and forms,
the means and methods of administration associated with specific product
types, and any other criteria identified by the office for consideration
to protect public health and safety.
6. Such regulations shall also require product labels to accurately
display the total THC of each product.
S. 2509--A 78 A. 3009--A
7. The packaging, sale, labeling, marketing, branding, advertising or
possession by any licensee of any cannabis product not labeled or
offered in conformity with rules and regulations promulgated in accord-
ance with this section shall be grounds for the imposition of a fine,
and/or the suspension, revocation or cancellation of a license. Fines
may be imposed on a per violation, per day basis.
§ 79. Laboratory testing. 1. Every processor of adult-use cannabis
shall contract with an independent laboratory permitted pursuant to
section one hundred twenty-nine of this chapter, to test the cannabis
products it produces pursuant to rules and regulations prescribed by the
office. The executive director may assign an approved testing laborato-
ry, which the processor of adult-use cannabis must use, and may estab-
lish consortia with neighboring states, to inform best practices, and
share data.
2. Adult-use cannabis processors, cooperatives and microbusinesses
shall make laboratory test reports available to licensed distributors
and retail dispensaries for all cannabis products manufactured by the
processor or licensee.
3. Licensed retail dispensaries shall maintain accurate documentation
of laboratory test reports for each cannabis product offered for sale to
cannabis consumers. Such documentation shall be made publicly available
by the licensed retail dispensary.
4. Onsite laboratory testing by licensees is permissible subject to
regulation; however, such testing shall not be certified by the office
and does not exempt the licensee from the requirements of quality assur-
ance testing at a testing laboratory pursuant to this section.
5. An owner of a cannabis laboratory testing permit shall not hold a
license, or interest in a license, in any other category within this
article and shall not own or have ownership interest in a registered
organization registered pursuant to article three of this chapter, or a
cannabinoid hemp processor license pursuant to article five of this
chapter.
6. The office shall have the authority to require any licensee under
this article to submit cannabis or cannabis products to one or more
independent laboratories for testing and the board may promulgate regu-
lations related to all aspects of third-party testing and quality assur-
ance including but not limited to:
(a) minimum testing and sampling requirements;
(b) testing and sampling methodologies;
(c) testing reporting requirements;
(d) retesting; and
(e) product quarantine, hold, recall, and remediation.
§ 80. Provisions governing the cultivation and processing of adult-use
cannabis. 1. Cultivation of cannabis shall comply with regulations
promulgated by the board governing minimum requirements.
2. No cultivator or processor of adult-use cannabis shall sell, or
agree to sell or deliver in the state any cannabis products, as the case
may be, except in sealed containers containing quantities in accordance
with size standards pursuant to regulations adopted by the office. Such
containers shall have affixed thereto such labels or other means of
tracking and identification as may be required by the rules of the exec-
utive director.
3. No cultivator or processor of adult-use cannabis shall furnish or
cause to be furnished to any licensee, any exterior or interior sign,
printed, painted, electric or otherwise, except as authorized by the
S. 2509--A 79 A. 3009--A
office. The office may make such rules as it deems necessary to carry
out the purpose and intent of this subdivision.
4. The board, in conjunction with the department of environmental
conservation, shall promulgate all necessary rules and regulations, as
well as a process for approval, governing the safe production of canna-
bis including, but not limited to, environmental and energy standards
and restrictions on the use of pesticides.
5. No cultivator or processor of adult-use cannabis shall deliver any
cannabis products, except in vehicles owned and operated by such culti-
vator, processor, or hired and operated by such cultivator or processor
from a trucking or transportation company registered with the office,
and shall only make deliveries at the licensed premises of the purchas-
er.
6. No cultivator or processor of adult-use cannabis, including an
adult-use cannabis cooperative or microbusiness, may offer any incen-
tive, payment or other benefit to a licensed cannabis retail dispensary
in return for carrying the cultivator, processor, cooperative or micro-
business's products, or preferential shelf placement.
7. All cannabis products shall be processed in accordance with good
manufacturing practices for the product category, pursuant to either
Part 111 or Part 117 of Title 21 of the Code of Federal Regulations, as
may be defined and modified by the board in regulation, which shall to
the extent practicable and possible, align with neighboring state
requirements.
8. No processor of adult-use cannabis shall produce any product which,
in the discretion of the office, is designed to appeal to anyone under
the age of twenty-one years.
9. The use or integration of wine, beer, liquor or nicotine or any
other substance identified in regulation in cannabis products is prohib-
ited.
10. The board shall promulgate regulations governing the minimum
requirements for the secure transport of adult-use cannabis.
§ 81. Provisions governing the distribution of adult-use cannabis. 1.
No distributor shall sell, or agree to sell or deliver any cannabis
products, as the case may be, in any container, except in a sealed pack-
age. Such containers shall have affixed thereto such labels as may be
required by the rules of the office.
2. No distributor shall deliver any cannabis products, except in vehi-
cles owned and operated by such distributor, or hired and operated by
such distributor from a trucking or transportation company permitted by
the office, and shall only make deliveries at the licensed premises of
the purchaser.
3. Each distributor shall keep and maintain upon the licensed prem-
ises, adequate books and records of all transactions involving the busi-
ness transacted by such distributor, which shall show the amount of
cannabis products purchased by such distributor and the total THC
content of purchased cannabis products as reflected on the product
labels, together with the names, license numbers and places of business
of the persons from whom the same was purchased and the amount involved
in such purchases, as well as the amount of cannabis products sold by
such distributor together and the total THC content of cannabis products
sold as reflected on the final product labels, with the names,
addresses, and license numbers of such purchasers and any other informa-
tion required in regulation. Each sale shall be recorded separately on a
numbered invoice, which shall have printed thereon the number, the name
of the licensee, the address of the licensed premises, and the current
S. 2509--A 80 A. 3009--A
license number and any other information required in regulation. Such
distributor shall deliver to the purchaser a true duplicate invoice
stating the name and address of the purchaser, the quantity of cannabis
products, the total THC content of purchased cannabis products as
reflected on the product labels, description by brands and the price of
such cannabis products, and a true, accurate and complete statement of
the terms and conditions on which such sale is made. Such books, records
and invoices shall be kept for a period of six years and shall be avail-
able for inspection by any authorized representative of the office.
4. No distributor shall furnish or cause to be furnished to any licen-
see, any exterior or interior sign, printed, painted, electric or other-
wise, unless authorized by the office.
5. No distributor shall provide any discount, rebate, customer loyalty
program or other consideration to any licensed retailer, except as
otherwise allowed by the office.
6. The board is authorized to promulgate regulations establishing a
minimum margin for which a distributor may mark up a cannabis product
for sale to a retail dispensary. Any adult-use cannabis product sold by
a distributor in violation of the established markup allowed in regu-
lation, shall be unlawful.
7. Each distributor shall keep and maintain upon the licensed prem-
ises, adequate books and records to demonstrate the distributor's actual
cost of doing business, using accounting standards and methods regularly
employed in the determination of costs for the purpose of federal income
tax reporting, for the total operation of the licensee. Such books,
records, financial statements, contracts, corporate documents, and
invoices shall be kept for a period of six years and shall be available
for inspection by any authorized representative of the office, includ-
ing, for use in determining the minimum markup allowed in regulation
pursuant to subdivision six of this section.
§ 82. Provisions governing adult-use cannabis retail dispensaries. 1.
No cannabis retail licensee shall sell or give away or cause or permit
or procure to be sold, delivered or given away any cannabis to any
person, actually or apparently, under the age of twenty-one years or any
visibly intoxicated person.
2. No cannabis retail licensee shall sell more than one ounce of
adult-use cannabis, or its equivalent amount as determined in regu-
lation, per cannabis consumer per day.
3. No cannabis retail licensee shall sell alcoholic beverages, nor
have or possess a license or permit to sell alcoholic beverages, on the
same premises where cannabis products are sold.
4. No sign of any kind printed, painted or electric, advertising any
brand shall be permitted on the exterior or interior of such premises,
except as permitted by the office.
5. No cannabis retail licensee shall sell any cannabis products to any
person with knowledge of, or with reasonable cause to believe, that the
person to whom such cannabis products are being sold, has acquired the
same for the purpose of peddling them from place to place, or of selling
or giving them away in violation of the provisions of this chapter or in
violation of the rules and regulations of the board.
6. All premises licensed under this section shall be subject to
reasonable inspection by any peace officer described in subdivision four
of section 2.10 of the criminal procedure law acting pursuant to his or
her special duties, or police officer or any duly authorized represen-
tative of the office.
S. 2509--A 81 A. 3009--A
7. No cannabis retail licensee shall be interested, directly or indi-
rectly, in any cultivator, processor or distributor licensed pursuant to
this article, by stock ownership, interlocking directors, mortgage or
lien on any personal or real property or by any other means.
8. No cannabis retail licensee shall make or cause to be made any loan
to any person engaged in the cultivation, processing or distribution of
cannabis pursuant to this article.
9. Each cannabis retail licensee shall designate the price of each
item of cannabis by attaching to or otherwise displaying immediately
adjacent to each such item displayed in the interior of the licensed
premises where sales are made a price tag, sign or placard setting forth
the price at which each such item is offered for sale therein.
10. No person licensed to sell cannabis products at retail, shall
allow or permit any gambling, or offer any gambling on the licensed
premises, or allow or permit illicit drug activity on the licensed prem-
ises. The use of the licensed premises or any part thereof for the sale
of lottery tickets, when duly authorized and lawfully conducted thereon,
shall not constitute gambling within the meaning of this subdivision.
11. All adult-use dispensing facilities shall make educational materi-
als and resources available to cannabis consumers at the point of sale,
as prescribed by the office, encouraging such cannabis consumers to seek
the help of a state licensed facility or program for the treatment of
cannabis use disorder.
12. The board is authorized to promulgate regulations governing
licensed adult-use dispensing facilities, including but not limited to,
minimum general operating requirements, the hours of operation, size and
location of the licensed facility, potency and types of products offered
and establishing a minimum margin for which a retail dispensary must
markup a cannabis product(s) before selling to a cannabis consumer. Any
adult-use cannabis product sold by a retail dispensary for less than the
minimum markup allowed in regulation, shall be unlawful.
13. No adult-use retail dispensary may engage in the home delivery or
retail delivery of adult-use cannabis products unless they are specif-
ically approved and licensed to do so, or have contracted with a third-
party home delivery licensee. All home delivery operations must be sepa-
rately approved and licensed by the office and must comply with minimum
application, licensing and operation requirements required by the board
in regulation. The board may approve adult-use retail dispensaries which
engage solely in the retail delivery of adult-use cannabis products
without an approved storefront location.
§ 83. Adult-use cannabis advertising and marketing. 1. The board is
hereby authorized to promulgate rules and regulations governing,
restricting, and prohibiting various forms and content of the advertis-
ing and marketing of licensed adult-use cannabis cultivators, process-
ors, cooperatives, distributors, retailers, and any cannabis products or
services.
2. The office shall promulgate regulations for appropriate content,
warnings, and means of advertising and marketing, including but not
limited to prohibiting advertising that:
(a) is false, deceptive, or misleading;
(b) promotes overconsumption;
(c) depicts consumption;
(d) is designed in any way to appeal to children or other minors;
(e) is within or is readily observed within five hundred feet of the
perimeter of a school grounds, playground, child care center, public
park, or library;
S. 2509--A 82 A. 3009--A
(f) is in public transit vehicles and stations;
(g) is in the form of an unsolicited internet pop-up;
(h) is on publicly owned or operated property;
(i) makes medical claims or promotes adult-use cannabis for a medical
or wellness purpose;
(j) promotes or implements discounts, coupons, or other means of sell-
ing adult-use cannabis products below market value or whose discount
would subvert local and state tax collections;
(k) the content and primary purpose of which is not to alert and
educate lawful cannabis consumers about the availability of regulated
adult-use cannabis and displace the illicit market but to solely promote
cannabis use; or
(l) fails to satisfy any other advertising or marketing rule or regu-
lations promulgated by the office related to marketing or advertising.
3. The office shall promulgate regulations prohibiting all marketing
strategies and implementation including, but not limited to, branding,
packaging, labeling, location of cannabis retailers, and advertisements
that are designed to:
(a) appeal to persons under twenty-one years of age and/or at-risk
populations; or
(b) disseminate false or misleading information to customers.
4. The office shall promulgate regulations requiring that:
(a) all advertisements and marketing accurately and legibly identify
the licensee responsible for its content and contain recognizable and
legible warnings associated with cannabis use; and
(b) any broadcast, cable, radio, print and digital communication
advertisements only be placed where the audience is reasonably expected
to be twenty-one years of age or older, as determined by reliable,
up-to-date audience composition data. The burden of proving this
requirement lies with the party that has paid for or facilitated the
advertisement.
5. The office shall establish procedures to review and enforce all
advertising and marketing requirements.
§ 84. Minority, women-owned businesses and disadvantaged farmers;
social and economic equity plan. 1. The office shall implement a social
and economic equity plan that actively promotes racial, ethnic, and
gender diversity in the adult-use cannabis industry and prioritizes
applicants who qualify as a minority and women-owned business, social
equity applicant, or disadvantaged farmer and which positively impacts
areas that have been harmed through disproportionate enforcement of the
war on drugs.
2. The office shall create a social and economic equity plan which
promotes diversity in ownership and employment in the adult-use cannabis
industry and the inclusion of:
(a) minority-owned businesses;
(b) women-owned businesses;
(c) social equity applicants as defined in subdivision four of this
section;
(d) minority and women-owned businesses, as defined in subdivision
four of this section; and
(e) disadvantaged farmers, as defined in subdivision four of this
section.
3. (a) The social and economic equity plan implemented by the office
shall promote participation and hiring of qualified social and economic
equity applicants. These applicants shall be deemed qualified by the
office through criteria determined in this section and by regulation
S. 2509--A 83 A. 3009--A
promulgated hereunder. Once qualified, a social and economic equity
applicant shall be eligible to access all or some of this available
social and economic equity plan programs based on their qualification
criteria, which may include but not be limited to:
(i) priority in submission and review for adult-use cannabis licenses;
(ii) priority in specific classes or categories of adult-use cannabis
licenses and licensed activities, geographic areas or license location;
(iii) reduced or deferred fees for adult-use cannabis applications
and/or licenses;
(iv) access to low or zero interest small business loans for entry
into the adult-use cannabis market;
(v) access to incubator programs pairing qualified and eligible social
and economic equity applicants with support in the form of counseling
services, education, small business development, and compliance assist-
ance;
(vi) access to cannabis workforce development and hiring initiatives
which incentivize hiring of qualified social and economic equity staff
members; and
(vii) any other available program or initiative developed under the
office's social and economic equity plan.
(b) The executive director shall have the ability to alter or amend
the social and economic equity plan, and its programs, to meet the needs
of qualified social and economic equity applicants and areas as the
industry grows and evolves.
(c) Under the social and economic equity plan, the board shall also
have the authority to create and distribute local social and economic
equity impact grants to community-based organizations which are located
or operate in areas of disproportionate enforcement from the war on
drugs. The application for, and administration of social and economic
equity impact grants shall be determined by the board through regu-
lations, provided sufficient funds are available.
4. For the purposes of this section, the following definitions shall
apply:
(a) A minority-owned business, minority group member, and women-owned
business shall have the same meaning as defined in section three hundred
ten of the executive law.
(b) A firm owned by a minority group member who is also a woman may be
defined as a minority-owned business, a women-owned business, or both.
(c) "Disadvantaged farmer" shall mean a New York state resident or
business enterprise, including a sole proprietorship, partnership,
limited liability company or corporation, that has reported at least
two-thirds of its federal gross income as income from farming, in at
least one of the five preceding tax years, and who:
(i) farms in a county that has greater than ten percent rate of pover-
ty according to the latest U.S. census bureau's american communities
survey;
(ii) has been disproportionately impacted by low commodity prices or
faces the loss of farmland through development or suburban sprawl; and
(iii) meets any other qualifications as defined in regulation by the
board.
(d) "Social equity applicants" shall mean an applicant for licensure
or employment that:
(i) is or has been a member of a community group or resident of an
area that has been disproportionately impacted by the enforcement of
cannabis prohibition, as determined by the board in regulation;
S. 2509--A 84 A. 3009--A
(ii) has an income lower than eighty percent of the median income of
the county in which the applicant resides; and
(iii) was convicted of a marihuana-related offense prior to the effec-
tive date of this chapter or had a parent, guardian, child, or spouse
who, prior to the effective date of this chapter, was convicted of a
marihuana-related offense.
5. Licenses issued to minority and women-owned businesses or under the
social and economic equity plan shall not be transferable for a period
of two years except to qualified minority and women-owned businesses or
social and economic equity applicants and only upon prior written
approval of the executive director.
§ 85. Regulations. The board shall make regulations to implement this
article.
ARTICLE 5
CANNABINOID HEMP AND HEMP EXTRACT
Section 90. Definitions.
91. Rulemaking authority.
92. Cannabinoid hemp processor license.
93. Cannabinoid hemp retailer license.
94. Cannabinoid license applications.
95. Information to be requested in applications for licenses.
96. Fees.
97. Selection criteria.
98. License renewal.
99. Form of license.
100. Transferability; amendment to license; change in ownership
or control.
101. Granting, suspending or revoking licenses.
102. Record keeping and tracking.
103. Packaging and labeling of cannabinoid hemp and hemp
extract.
104. Processing of cannabinoid hemp and hemp extract.
105. Laboratory testing.
106. New York hemp product.
107. Penalties.
108. Hemp workgroup.
109. Prohibitions.
110. Special use permits.
111. Severability.
§ 90. Definitions. As used in this article, the following terms shall
have the following meanings, unless the context clearly requires other-
wise:
1. "Cannabinoid" means the phytocannabinoids found in hemp and does
not include synthetic cannabinoids as that term is defined in subdivi-
sion (g) of schedule I of section thirty-three hundred six of the public
health law.
2. "Cannabinoid hemp product" means any hemp and any product processed
or derived from hemp, that is used for human consumption provided that
when such product is packaged or offered for retail sale to a consumer,
it shall not have a concentration of more than three-tenths of one
percent delta-9 tetrahydrocannabinol or a final total THC concentration
which exceeds an amount determined by the board in regulation.
3. "Used for human consumption" means intended by the manufacturer or
distributor to be: (a) used for human consumption for its cannabinoid
S. 2509--A 85 A. 3009--A
content; or (b) used in, on or by the human body for its cannabinoid
content.
4. "Hemp" means the plant Cannabis sativa L. and any part of such
plant, including the seeds thereof and all derivatives, extracts, canna-
binoids, isomers, acids, salts, and salts of isomers, whether growing or
not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
than three-tenths of one percent on a dry weight basis. It shall not
include "medical cannabis" as defined in subdivision twenty-eight of
section three of this chapter.
5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
ers, acids, salts, and salts of isomers derived from hemp, used or
intended for human consumption, for its cannabinoid content, with a
total THC concentration of not more than an amount determined by the
board in regulation. For the purpose of this article, hemp extract
excludes (a) any food, food ingredient or food additive that is general-
ly recognized as safe pursuant to federal law; or (b) any hemp extract
that is not used for human consumption. Such excluded substances shall
not be regulated pursuant to the provisions of this article but are
subject to other provisions of applicable state law, rules and regu-
lations.
6. "License" means a license issued pursuant to this article.
7. "Cannabinoid hemp processor license" means a license granted by the
office to process, extract, pack or manufacture cannabinoid hemp or hemp
extract into products, whether in intermediate or final form, used for
human consumption.
8. "Processing" means extracting, preparing, treating, modifying,
compounding, manufacturing or otherwise manipulating cannabinoid hemp to
concentrate or extract its cannabinoids, or creating product, whether in
intermediate or final form, used for human consumption. For purposes of
this article, processing does not include: (a) growing, cultivation,
cloning, harvesting, drying, curing, grinding or trimming when author-
ized pursuant to article twenty-nine of the agriculture and markets law;
or
(b) mere transportation, such as by common carrier or another entity
or individual.
§ 91. Rulemaking authority. The board may make regulations pursuant to
this article for the processing, distribution, marketing, transportation
and sale of cannabinoid hemp and hemp extracts used for human consump-
tion, which may include, but not be limited to:
1. Specifying forms, establishing application, reasonable adminis-
tration and renewal fees, or license duration;
2. Establishing the qualifications and criteria for licensing, as
authorized by law;
3. The books and records to be created and maintained by licensees and
lawful procedures for their inspection;
4. Any reporting requirements;
5. Methods and standards of processing, labeling, packaging and
marketing of cannabinoid hemp, hemp extract and products derived there-
from;
6. Procedures for how cannabinoid hemp, hemp extract or ingredients,
additives, or products derived therefrom can be deemed as acceptable for
sale in the state;
7. Provisions governing the modes and forms of administration, includ-
ing inhalation;
8. Procedures for determining whether cannabinoid hemp, hemp extract
or ingredients, additives, or products derived therefrom produced
S. 2509--A 86 A. 3009--A
outside the state or within the state meet the standards and require-
ments of this article and can therefore be sold within the state;
9. Procedures for the granting, cancellation, revocation or suspension
of licenses, consistent with the state administrative procedures act;
10. Restrictions governing the advertising and marketing of cannabi-
noid hemp, hemp extract and products derived therefrom; and
11. Any other regulations necessary to implement this article.
§ 92. Cannabinoid hemp processor license. 1. Persons processing canna-
binoid hemp or hemp extract used for human consumption, whether in
intermediate or final form, shall be required to obtain a cannabinoid
hemp processor license from the office.
2. A cannabinoid hemp processor license authorizes one or more specif-
ic activities related to the processing of cannabinoid hemp into
products used for human consumption, whether in intermediate or final
form, and the distribution or sale thereof by the licensee. Nothing
herein shall prevent a cannabinoid hemp processor from processing,
extracting and processing hemp products not to be used for human
consumption.
3. Persons authorized to grow hemp pursuant to article twenty-nine of
the agriculture and markets law are not authorized to engage in process-
ing of cannabinoid hemp or hemp extract without first being licensed as
a cannabinoid hemp processor under this article.
4. This article shall not apply to hemp, cannabinoid hemp, hemp
extracts or products derived therefrom that are not used for human
consumption. This article also shall not apply to hemp, cannabinoid
hemp, hemp extracts or products derived therefrom that have been deemed
generally recognized as safe pursuant to federal law.
5. The executive director shall have the authority to set reasonable
fees for such license, to limit the activities permitted by such
license, to establish the period during which such license is author-
ized, which shall be two years or more. The board shall make rules and
regulations necessary to implement this section.
6. Any person holding an active research partnership agreement with
the department of agriculture and markets, authorizing that person to
process cannabinoid hemp, shall be awarded licensure under this section,
provided that the research partner is actively performing research
pursuant to such agreement and is able to demonstrate compliance with
this article, as determined by the office, after notice and an opportu-
nity to be heard.
§ 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
noid hemp, in final form to consumers within the state, shall be
required to obtain a cannabinoid hemp retailer license from the office.
2. The executive director shall have the authority to set reasonable
fees for such license, to establish the period during which such license
is authorized, which shall be one year or more. The board shall make
rules and regulations necessary to implement this section.
§ 94. Cannabinoid license applications. 1. Persons shall apply for a
license under this article by submitting an application upon a form
supplied by the office, providing all the relevant requested informa-
tion, verified by the applicant or an authorized representative of the
applicant.
2. A separate license shall be required for each facility at which
processing or retail sales are conducted; however, an applicant may
submit one application for separate licensure at multiple locations.
3. Each applicant shall remit with its application the fee for each
requested license, which shall be a reasonable fee.
S. 2509--A 87 A. 3009--A
§ 95. Information to be requested in applications for licenses. 1. The
executive director may specify the manner and form in which an applica-
tion shall be submitted to the office for licensure under this article.
2. The executive director shall prescribe what relevant information
shall be included on an application for licensure under this article.
Such information may include, but is not limited to: information about
the applicant's identity; ownership and investment information, includ-
ing the corporate structure; evidence of good moral character; financial
statements; information about the premises to be licensed; information
about the activities to be licensed; and any other relevant information
prescribed by the executive director.
3. All license applications shall be signed by the applicant if an
individual, by a managing partner if a limited liability company, by an
officer if a corporation, or by all partners if a partnership. Each
person signing such application shall verify it as true under the penal-
ties of perjury.
4. All license applications shall be accompanied by a check, draft or
other forms of payment as the office may require or authorize in the
reasonable amount required by this article for such license.
5. If there be any change, after the filing of the application or the
granting, modification or renewal of a license, in any of the material
facts required to be set forth in such application, a supplemental
statement giving notice of such change, duly verified, shall be filed
with the office within ten days after such change. Failure to do so, if
willful and deliberate, may be grounds for revocation of the license.
§ 96. Fees. The office may charge licensees a reasonable license fee.
Such fee may be based on the activities permitted by the license, the
amount of cannabinoid hemp or hemp extract to be processed or extracted
by the licensee, the gross annual receipts of the licensee for the
previous license period, or any other factors reasonably deemed appro-
priate by the office.
§ 97. Selection criteria. 1. The applicant, if an individual or indi-
viduals, shall furnish evidence of the individual's good moral charac-
ter, and if an entity, the applicant shall furnish evidence of the good
moral character of the individuals who have or will have substantial
responsibility for the licensed or authorized activity and those in
control of the entity, including principals, officers, or others with
such control.
2. The applicant shall furnish evidence of the applicant's experience
and competency, and that the applicant has or will have adequate facili-
ties, equipment, process controls, and security to undertake those
activities for which licensure is sought.
3. The applicant shall furnish evidence of his, her or its ability to
comply with all applicable state and local laws, rules and regulations.
4. If the executive director is not satisfied that the applicant
should be issued a license, the executive director shall notify the
applicant in writing of the specific reason or reasons for denial.
5. No license pursuant to this article may be issued to an individual
under the age of eighteen years.
§ 98. License renewal. 1. Each license, issued pursuant to this arti-
cle, may be renewed upon application therefor by the licensee and the
payment of the reasonable fee for such license as specified by this
article.
2. In the case of applications for renewals, the office may dispense
with the requirements of such statements as it deems unnecessary in view
of those contained in the application made for the original license.
S. 2509--A 88 A. 3009--A
3. The office shall provide an application for renewal of any license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
4. The office may only issue a renewal license upon receipt of the
specified renewal application and renewal fee from a licensee if, in
addition to the selection criteria set out in this article, the
licensee's license is not under suspension and has not been revoked.
§ 99. Form of license. Licenses issued pursuant to this article shall
specify:
1. The name and address of the licensee;
2. The activities permitted by the license;
3. The land, buildings and facilities that may be used for the
licensed activities of the licensee;
4. A unique license number issued by the office to the licensee; and
5. Such other information as the office shall deem necessary to assure
compliance with this chapter.
§ 100. Transferability; amendment to license; change in ownership or
control. 1. Licenses issued under this article are not transferable,
absent written consent of the office.
2. Upon application of a licensee, a license may be amended to add or
delete permitted activities.
3. A license shall become void by a change in ownership, substantial
corporate change or change of location without prior written approval of
the office. The board may make regulations allowing for certain types of
changes in ownership without the need for prior written approval.
§ 101. Granting, suspending or revoking licenses. After due notice and
an opportunity to be heard, which process shall be established by rules
and regulations, the office may decline to grant a new license, impose
conditions or limits with respect to the grant of a license, modify an
existing license or decline to renew a license, and may suspend or
revoke a license already granted after due notice and an opportunity to
be heard, as established by rules and regulations, whenever the execu-
tive director finds that:
1. A material statement contained in an application is or was false or
misleading;
2. The applicant or licensee, or a person in a position of management
and control thereof or of the licensed activity, does not have good
moral character, necessary experience or competency, adequate facili-
ties, equipment, process controls, or security to process, distribute,
transport or sell cannabinoid hemp, hemp extract or products derived
therefrom;
3. After appropriate notice and opportunity, the applicant or licensee
has failed or refused to produce any records or provide any information
required by this article or the regulations promulgated pursuant there-
to;
4. The licensee has conducted activities outside of those activities
permitted on its license; or
5. The applicant or licensee, or any officer, director, partner, or
any other person exercising any position of management or control there-
of or of the licensed activity has willfully failed to comply with any
of the provisions of this article or regulations under it and other laws
of this state applicable to the licensed activity.
§ 102. Record keeping and tracking. Every licensee shall keep, in such
form as the executive director may direct, such relevant records as may
be required pursuant to regulations under this article.
S. 2509--A 89 A. 3009--A
§ 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
Cannabinoid hemp processors shall be required to provide appropriate
label warning to consumers, and restricted from making unapproved label
claims, as determined by the office, concerning the potential impact on
or benefit to human health resulting from the use of cannabinoid hemp,
hemp extract and products derived therefrom for human consumption, which
labels shall be affixed to those products when sold, pursuant to rules
and regulations that the board may adopt.
2. The board may, by rules and regulations, require processors to
establish a code, including, but not limited to QR code, for labels and
establish methods and procedures for determining, among other things,
serving sizes or dosages for cannabinoid hemp, hemp extract and products
derived therefrom, active cannabinoid concentration per serving size,
number of servings per container, and the growing region, state or coun-
try of origin if not from the United States. Such rules and regulations
may require an appropriate fact panel that incorporates data regarding
serving sizes and potency thereof.
3. The packaging, sale, or possession of products derived from canna-
binoid hemp or hemp extract used for human consumption not labeled or
offered in conformity with regulations under this section shall be
grounds for the seizure or quarantine of the product, the imposition of
a civil penalty against a processor or retailer, and the suspension,
revocation or suspension of a license, in accordance with this article.
§ 104. Processing of cannabinoid hemp and hemp extract. 1. No process-
or shall sell or agree to sell or deliver in the state any cannabinoid
hemp, hemp extract or product derived therefrom, used for human consump-
tion, except in sealed containers containing quantities in accordance
with size standards pursuant to rules adopted by the office. Such
containers shall have affixed thereto such labels as may be required by
the rules of the office.
2. Processors shall take such steps necessary to ensure that the
cannabinoid hemp or hemp extract used in their processing operation has
only been grown with pesticides that are registered by the department of
environmental conservation or that specifically meet the United States
environmental protection agency registration exemption criteria for
minimum risk, used in compliance with rules, regulations, standards and
guidelines issued by the department of environmental conservation for
pesticides.
3. All cannabinoid hemp, hemp extract and products derived therefrom
used for human consumption shall be extracted and processed in accord-
ance with good manufacturing processes for the product category pursuant
to Part 117 or Part 111 of title 21 of the code of federal regulations,
as may be defined, modified and decided upon by the office, provided
that such rules shall be in conformity to the extent practicable with
neighboring states.
4. As necessary to protect human health, the office shall have the
authority to: (a) regulate and prohibit specific ingredients, excipients
or methods used in processing cannabinoid hemp, hemp extract and
products derived therefrom; and (b) prohibit, or expressly allow,
certain products or product classes derived from cannabinoid hemp or
hemp extract, to be processed.
§ 105. Laboratory testing. Every cannabinoid hemp processor shall
contract with an independent commercial laboratory to test the hemp
extract and products produced by the licensed processor. The executive
director, in consultation with the commissioner of the department of
health, shall establish the necessary qualifications or certifications
S. 2509--A 90 A. 3009--A
required for such laboratories used by licensees. The board is author-
ized to issue rules and regulations consistent with this article estab-
lishing the testing required, the reporting of testing results and the
form for reporting such laboratory testing results. The office has
authority to require licensees to submit any cannabinoid hemp, hemp
extract or product derived therefrom, processed or offered for sale
within the state, for testing. This section shall not obligate the
office, in any way, to perform any testing on hemp, cannabinoid hemp,
hemp extract or product derived therefrom. The office shall be author-
ized to establish consortia or cooperative agreements with neighboring
states to effectuate this section.
§ 106. New York hemp product. The office may establish and adopt offi-
cial grades and standards for cannabinoid hemp, hemp extract and
products derived therefrom, as he or she may deem advisable, which are
produced for sale in this state and, from time to time, may amend or
modify such grades and standards.
§ 107. Penalties. Notwithstanding the provision of any law to the
contrary, the failure to comply with a requirement of this article, or a
regulation thereunder, may be punishable by a civil penalty of not more
than one thousand dollars for a first violation; not more than five
thousand dollars for a second violation within three years; and not more
than ten thousand dollars for a third violation and each subsequent
violation thereafter, within three years.
§ 108. Hemp workgroup. The executive director, in consultation with
the commissioner of the department of agriculture and markets and the
commissioner of health, may appoint a New York state hemp and hemp
extract workgroup, composed of growers, researchers, producers, process-
ors, manufacturers and trade associations, to make recommendations for
the industrial hemp and cannabinoid hemp programs, state, regional, and
federal policies and policy initiatives, and opportunities for the
promotion and marketing of cannabinoid hemp and hemp extract as consist-
ent with federal and state laws, rules and regulations.
§ 109. Prohibitions. 1. Except as authorized by the United States food
and drug administration, the processing of cannabinoid hemp or hemp
extract used for human consumption is prohibited within the state unless
the processor is licensed under this article.
2. Cannabinoid hemp and hemp extracts used for human consumption and
grown or processed outside the state shall not be distributed or sold at
retail within the state, unless they meet all standards established for
cannabinoid hemp under state law and regulations.
3. The retail sale of cannabinoid hemp is prohibited in this state
unless the retailer is licensed under this article.
§ 110. Special use permits. The office shall have the authority to
issue temporary permits for carrying on any activity related to cannabi-
noid hemp, hemp extract and products derived therefrom, licensed under
this article. The executive director may set reasonable fees for such
permits and to establish the periods during which such permits are
valid. The board shall make rules and regulations to implement this
section.
§ 111. Severability. If any provision of this article or the applica-
tion thereof to any person or circumstances is held invalid, such inva-
lidity shall not affect other provisions or applications of this article
which can be given effect without the invalid provision or application,
and to this end the provisions of this article are declared to be sever-
able.
S. 2509--A 91 A. 3009--A
ARTICLE 6
GENERAL PROVISIONS
Section 125. General prohibitions and restrictions.
126. License to be confined to premises licensed; premises for
which no license shall be granted; transporting cannabis.
127. Protections for the use of cannabis; unlawful discrimi-
nations prohibited.
128. Registrations and licenses.
129. Laboratory testing permit.
130. Special use permits.
132. Municipal control and preemption.
133. Office to be necessary party to certain proceedings.
134. Penalties for violation of this chapter.
135. Revocation of registrations, licenses and permits for
cause; procedure for revocation or cancellation.
136. Lawful actions pursuant to this chapter.
137. Review by courts.
138. Illicit cannabis.
139. Injunction for unlawful manufacturing, sale, distribution,
or consumption of cannabis.
140. Persons forbidden to traffic cannabis; certain officials
not to be interested in manufacture or sale of cannabis
products.
141. Access to criminal history information through the division
of criminal justice services.
§ 125. General prohibitions and restrictions. 1. No person shall
cultivate, process, or distribute for sale or sell at wholesale or
retail any cannabis, adult-use cannabis product, medical cannabis or
cannabinoid hemp within the state without obtaining the appropriate
registration, license, or permit therefor required by this chapter.
2. No registered organization, licensee, or permittee shall sell, or
agree to sell or deliver in this state any cannabis or cannabinoid hemp
for the purposes of resale to any person who is not duly registered,
licensed or permitted pursuant to this chapter to sell such product, at
wholesale or retail, as the case may be, at the time of such agreement
and sale.
3. No registered organization, licensee, or permittee shall employ, or
permit to be employed, or shall allow to work, on any premises regis-
tered or licensed for retail sale hereunder, any person under the age of
eighteen years in any capacity where the duties of such person require
or permit such person to sell, dispense or handle cannabis.
4. No registered organization, licensee, or permittee shall sell,
deliver or give away, or cause, permit or procure to be sold, delivered
or given away any adult-use cannabis, cannabis product, medical cannabis
or cannabinoid hemp on credit unless authorized by the executive direc-
tor; except that a registered organization, licensee or permittee may
accept third party credit cards for the sale of any cannabis, cannabis
product, medical cannabis or cannabinoid hemp for which it is regis-
tered, licensed or permitted to dispense or sell to patients or cannabis
consumers. This includes, but is not limited to, any consignment sale of
any kind.
5. No registered organization, licensee, or permittee shall cease to
be operated as a bona fide or legitimate premises within the contem-
plation of the registration, license, or permit issued for such prem-
ises, as determined within the judgment of the office.
S. 2509--A 92 A. 3009--A
6. No registered organization, licensee, or permittee shall refuse,
nor any person holding a registration, license, or permit refuse, nor
any officer or director of any corporation or organization holding a
registration, license, or permit refuse, to appear and/or testify under
oath at an inquiry or hearing held by the office, with respect to any
matter bearing upon the registration, license, or permit, the conduct of
any people at the licensed premises, or bearing upon the character or
fitness of such registrant, licensee, or permittee to continue to hold
any registration, license, or permit. Nor shall any of the above offer
false testimony under oath at such inquiry or hearing.
7. No registered organization, licensee, or permittee shall engage,
participate in, or aid or abet any violation or provision of this chap-
ter, or the rules or regulations of the office or board.
8. The proper conduct of registered, licensed, or permitted premises
is essential to the public interest. Failure of a registered organiza-
tion, licensee, or permittee to exercise adequate supervision over the
registered, licensed, or permitted location poses a substantial risk not
only to the objectives of this chapter but imperils the health, safety,
and welfare of the people of this state. It shall be the obligation of
each person registered, licensed, or permitted under this chapter to
ensure that a high degree of supervision is exercised over any and all
conduct at any registered, licensed, or permitted location at any and
all times in order to safeguard against abuses of the privilege of being
registered, licensed, or permitted, as well as other violations of law,
statute, rule, or regulation. Persons registered, licensed, or permitted
shall be held strictly accountable for any and all violations that occur
upon any registered, licensed, or permitted premises, and for any and
all violations committed by or permitted by any manager, agent or
employee of such registered, licensed, or permitted person.
9. It shall be unlawful for any person, partnership or corporation
operating a place for profit or pecuniary gain, with a capacity for the
assemblage of twenty or more persons to permit a person or persons to
come to the place of assembly for the purpose of cultivating, process-
ing, distributing, or retail distribution or sale of cannabis on said
premises. This includes, but is not limited, to, cannabis that is either
provided by the operator of the place of assembly, his agents, servants
or employees, or cannabis that is brought onto said premises by the
person or persons assembling at such place, unless an appropriate regis-
tration, license, or permit has first been obtained from the office of
cannabis management by the operator of said place of assembly.
10. As it is a privilege under the law to be registered, licensed, or
permitted to cultivate, process, distribute, traffic, or sell cannabis,
the office may impose any such further restrictions upon any registrant,
licensee, or permittee in particular instances as it deems necessary to
further state policy and best serve the public interest. A violation or
failure of any person registered, licensed, or permitted to comply with
any condition, stipulation, or agreement, upon which any registration,
license, or permit was issued or renewed by the office shall subject the
registrant, licensee, or permittee to suspension, cancellation, revoca-
tion, and/or civil penalties as determined by the office.
11. No adult-use cannabis or medical cannabis may be imported to, or
exported out of, New York state by a registered organization, licensee
or person holding a license and/or permit pursuant to this chapter,
until such time as it may become legal to do so under federal law and
the board has promulgated regulations for the minimum requirements of
such activities. Should it become legal to do so under federal law, the
S. 2509--A 93 A. 3009--A
board shall have the authority to promulgate rules and regulations to
protect the public and the policy of the state.
12. No registered organization, licensee or any of its agents, serv-
ants or employees shall peddle any cannabis product, medical cannabis or
cannabinoid hemp from house to house by means of a truck or otherwise,
where the sale is consummated and delivery made concurrently at the
residence or place of business of a cannabis consumer. The office may
establish regulations to enforce this subdivision. This subdivision
shall not prohibit the delivery by a registered organization to certi-
fied patients or their designated caregivers, pursuant to article three
of this chapter.
13. No licensee shall employ any canvasser or solicitor for the
purpose of receiving an order from a certified patient, designated care-
giver or cannabis consumer for any cannabis product, medical cannabis or
cannabinoid hemp at the residence or place of business of such patient,
caregiver or consumer, nor shall any licensee receive or accept any
order, for the sale of any cannabis product, medical cannabis or canna-
binoid hemp which shall be solicited at the residence or place of busi-
ness of a patient, caregiver or consumer. This subdivision shall not
prohibit the solicitation by a distributor of an order from any licensee
at the licensed premises of such licensee.
14. No premises registered, licensed, or permitted by the office
shall:
(a) permit or allow any gambling on the premises;
(b) permit or allow the premises to become disorderly;
(c) permit or allow the use, by any person, of any fireworks or other
pyrotechnics on the premises; or
(d) permit or allow to appear as an entertainer, on any part of the
premises registered, licensed, or permitted, any person under the age of
eighteen years.
§ 126. License to be confined to premises licensed; premises for which
no license shall be granted; transporting cannabis. 1. A registration,
license, or permit issued to any person, pursuant to this chapter, for
any registered, licensed, or permitted premises shall not be transfera-
ble to any other person, to any other location or premises, or to any
other building or part of the building containing the licensed premises
except in the discretion of the office. All privileges granted by any
registration, license, or permit shall be available only to the person
therein specified, and only for the premises licensed and no other
except if authorized by the office. Provided, however, that the
provisions of this section shall not be deemed to prohibit an applica-
tion or request for approval for a registration or license as provided
for in this chapter. A violation of this section shall subject the
registration, license, or permit to revocation for cause.
2. Where a registration or license for premises has been revoked, the
office in its discretion may refuse to accept an application from, or
issue a registration, license, or permit under this chapter to, any
individual, business, or entity connected to the revoked registration or
license, or for such premises or for any part of the building containing
such premises and connected therewith.
3. In determining whether to issue such a proscription against grant-
ing any registration, license, or permit for such five-year period, in
addition to any other factors deemed relevant to the office, the office
shall, in the case of a license revoked due to the illegal sale of
cannabis to a minor, determine whether the proposed subsequent licensee
has obtained such premises through an arm's length transaction, and, if
S. 2509--A 94 A. 3009--A
such transaction is not found to be an arm's length transaction, the
office shall deny the issuance of such license.
4. For purposes of this section, "arm's length transaction" shall mean
a sale of a fee of all undivided interests in real property, lease,
management agreement, or other agreement giving the applicant control
over the cannabis at the premises, or any part thereof, in the open
market, between an informed and willing buyer and seller where neither
is under any compulsion to participate in the transaction, unaffected by
any unusual conditions indicating a reasonable possibility that the sale
was made for the purpose of permitting the original licensee to avoid
the effect of the revocation. The following sales shall be presumed not
to be arm's length transactions unless adequate documentation is
provided demonstrating that the sale, lease, management agreement, or
other agreement giving the applicant control over the cannabis at the
premises, was not conducted, in whole or in part, for the purpose of
permitting the original licensee to avoid the effect of the revocation:
(a) a sale between relatives;
(b) a sale between related companies or partners in a business; or
(c) a sale, lease, management agreement, or other agreement giving the
applicant control over the cannabis at the premises, affected by other
facts or circumstances that would indicate that the sale, lease, manage-
ment agreement, or other agreement giving the applicant control over the
cannabis at the premises, is entered into for the primary purpose of
permitting the original licensee to avoid the effect of the revocation.
5. No registered organization, licensee or permittee shall transport
cannabis products or medical cannabis except in vehicles owned and oper-
ated by such registered organization, licensee or permittee, or hired
and operated by such registered organization, licensee or permittee from
a trucking or transportation company permitted and registered with the
office.
6. No common carrier or person operating a transportation facility in
this state, other than the United States government, shall receive for
transportation or delivery within the state any cannabis products or
medical cannabis unless registered, licensed or permitted pursuant to
this chapter and the shipment is accompanied by copy of a bill of
lading, or other document, showing the name and address of the consig-
nor, the name and address of the consignee, the date of the shipment,
and the quantity and kind of cannabis products or medical cannabis
contained therein.
§ 127. Protections for the use of cannabis; unlawful discriminations
prohibited. 1. No person, registered organization, licensee or permit-
tee, or agent or contractor of a registered organization, licensee or
permittee shall be subject to arrest, prosecution, or penalty in any
manner, or denied any right or privilege, including but not limited to
civil liability or disciplinary action by a business or occupational or
professional licensing board or office, solely for conduct permitted
under this chapter. For the avoidance of doubt, the appellate division
of the supreme court of the state of New York, and any disciplinary or
character and fitness committees established by them are occupational
and professional licensing boards within the meaning of this section.
State or local law enforcement agencies shall not cooperate with or
provide assistance to the government of the United States or any agency
thereof in enforcing the federal controlled substances act, 21 U.S.C. et
seq., solely for actions consistent with this chapter, except pursuant
to an order of a court of competent jurisdiction.
S. 2509--A 95 A. 3009--A
2. No school or landlord may refuse to enroll or lease to and may not
otherwise penalize a person solely for conduct allowed under this chap-
ter, except as exempted:
(a) if failing to do so would cause the school or landlord to lose a
monetary or licensing related benefit under federal law or regulations;
(b) if the institution has adopted a code of conduct prohibiting
cannabis use on the basis of religious belief; or
(c) if a property is registered with the New York smoke-free housing
registry, it is not required to permit the smoking of cannabis products
on its premises.
3. For the purposes of medical care, including organ transplants, a
certified patient's authorized use of medical cannabis must be consid-
ered the equivalent of the use of any other medication under the direc-
tion of a practitioner and does not constitute the use of an illicit
substance or otherwise disqualify a registered qualifying patient from
medical care.
4. An employer may implement policies prohibiting the use or
possession of cannabis in accordance with section two hundred one-d of
the labor law, provided such policies are in writing as part of an
established workplace policy, uniformly applied to all employees, and
the employer gives prior written notice of such policies to employees.
5. An employer may take disciplinary or adverse employment action
against an employee, including termination of employment, for violating
an established workplace policy adopted under subdivision four of this
section, or if the results of a drug test administered in accordance
with applicable state and local law demonstrate that the employee was
impaired by or under the influence of cannabis while in the workplace or
during the performance of work. For the purposes of this subdivision, a
drug test that solely yields a positive result for cannabis metabolites
shall not be construed as proof that an employee is under the influence
of or impaired by cannabis unless the test yields a positive result for
active tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-8-tet-
rahydrocannabinol, or other active cannabinoid found in cannabis which
causes impairment.
6. Nothing in this chapter permits any person to undertake any task
under the influence of cannabis when doing so would constitute negli-
gence or professional malpractice, jeopardize workplace safety, or to
operate, navigate or be in actual physical control of any motor vehicle
or other transport vehicle, aircraft, motorboat, machinery or equipment,
or firearms under the influence of cannabis.
7. A person currently under parole, probation or other state super-
vision, or released on recognizance, non-monetary conditions, or bail
prior to being convicted, shall not be punished or otherwise penalized
for conduct allowed under this chapter unless the terms and conditions
of said parole, probation, or state supervision explicitly prohibit a
person's cannabis use or any other conduct otherwise allowed under this
chapter. A person's use of cannabis or conduct under this chapter shall
not be prohibited unless it has been shown by clear and convincing
evidence that the prohibition is reasonably related to the underlying
crime. Nothing in this provision shall restrict the rights of a certi-
fied medical patient.
§ 128. Registrations and licenses. 1. No registration or license
shall be transferable or assignable except that notwithstanding any
other provision of law, the registration or license of a sole proprietor
converting to corporate form, where such proprietor becomes the sole
stockholder and only officer and director of such new corporation, may
S. 2509--A 96 A. 3009--A
be transferred to the subject corporation if all requirements of this
chapter remain the same with respect to such registration or license as
transferred and, further, the registered organization or licensee shall
transmit to the office, within ten days of the transfer of license
allowable under this subdivision, on a form prescribed by the office,
notification of the transfer of such license.
2. No registration, license or permit shall be pledged or deposited as
collateral security for any loan or upon any other condition; and any
such pledge or deposit, and any contract providing therefor, shall be
void.
3. Licenses issued under this chapter shall contain, in addition to
any further information or material to be prescribed by the rules of the
office, the following information:
(a) name of the person to whom the license is issued;
(b) kind of license and what kind of traffic in cannabis is thereby
permitted;
(c) description by street and number, or otherwise, of licensed prem-
ises; and
(d) a statement in substance that such license shall not be deemed a
property or vested right, and that it may be revoked at any time pursu-
ant to law.
§ 129. Laboratory testing permit. 1. The executive director, in
consultation with the commissioner of health, shall approve and permit
one or more independent cannabis testing laboratories to test medical
cannabis, adult-use cannabis and/or cannabinoid hemp.
2. To be permitted as an independent cannabis laboratory, a laboratory
must apply to the office, on a form and in a manner prescribed by the
office, which may include a permit fee and must demonstrate the follow-
ing to the satisfaction of the executive director:
(a) the owners and directors of the laboratory are of good moral char-
acter;
(b) the laboratory and its staff has the skills, resources and exper-
tise needed to accurately and consistently perform testing required for
adult-use cannabis, medical cannabis and/or cannabinoid hemp;
(c) the laboratory has in place and will maintain adequate policies,
procedures, and facility security to ensure proper: collection, label-
ing, accessioning, preparation, analysis, result reporting, disposal and
storage of adult-use cannabis, medical cannabis and/or cannabinoid hemp;
(d) the laboratory is physically located in New York state except as
authorized in regulation; and
(e) the laboratory meets the requirements prescribed by this chapter
and by regulation.
3. The owner of a laboratory testing permit under this section shall
not hold a registration or license in any category of this chapter and
shall not have any direct or indirect ownership interest in such regis-
tered organization or licensee. No board member, officer, manager,
owner, partner, principal stakeholder or member of a registered organ-
ization or licensee under this chapter, or such person's immediate fami-
ly member, shall have an interest or voting rights in any laboratory
testing permittee.
4. The office shall require that the permitted laboratory report test-
ing results to the office in a manner, form and timeframe as determined
by the executive director.
5. The board is authorized to promulgate regulations establishing
minimum operating and testing requirements, and requiring permitted
laboratories to perform certain tests and services.
S. 2509--A 97 A. 3009--A
6. The executive director is authorized to enter into contracts or
memoranda of understanding with any other state for the purposes of
aligning laboratory testing requirements or establishing best practices
in testing of cannabis.
§ 130. Special use permits. The office is hereby authorized to issue
the following kinds of permits for carrying on activities consistent
with the policy and purpose of this chapter with respect to cannabis.
The executive director has the authority to set fees for all permits
issued pursuant to this section, to establish the periods during which
permits are authorized.
1. Industrial cannabis permit - to purchase cannabis for use in the
manufacture and sale of any of the following, when such cannabis is not
otherwise suitable for consumption purposes, namely: (a) apparel, ener-
gy, paper, and tools; (b) scientific, chemical, mechanical and indus-
trial products; or (c) any other industrial use as determined by the
executive director.
2. Nursery permit - to produce clones, immature plants, seeds, and
other agricultural products used specifically for the planting, propa-
gation, and cultivation of cannabis, and to sell such to licensed
adult-use cultivators and registered organizations.
3. Solicitor's permit - to offer for sale or to solicit orders for the
sale of any cannabis products and/or medical cannabis, as a represen-
tative of a registered organization or licensee under this chapter.
4. Broker's permit - to act as a broker in the purchase and sale of
cannabis products and/or medical cannabis for a fee or commission, for
or on behalf of a person authorized to cultivate, process, distribute or
dispense cannabis products, medical cannabis or cannabinoid hemp within
the state.
5. Trucking permit - to allow for the trucking or transportation of
cannabis products and/or medical cannabis by a person other than a
registered organization or licensee under this chapter.
6. Warehouse permit - to allow for the storage of cannabis, cannabis
products, or medical cannabis at a location not otherwise registered or
licensed by the office.
7. Temporary retail cannabis permit - to authorize the retail sale of
adult-use cannabis to cannabis consumers, for a limited purpose or dura-
tion.
8. Caterer's permit - to authorize the service of cannabis products at
a function, occasion or event in a hotel, restaurant, club, ballroom or
other premises, which shall authorize within the hours fixed by the
office, during which cannabis may lawfully be sold or served on the
premises in which such function, occasion or event is held.
9. Packaging permit - to authorize a licensed cannabis distributor to
sort, package, label and bundle cannabis products from one or more
registered organizations or licensed processors, on the premises of the
licensed cannabis distributor or at a warehouse for which a permit has
been issued under this section.
10. Delivery permit - to authorize licensed adult-use cannabis dispen-
saries or third-parties to deliver adult-use cannabis and cannabis
products directly to cannabis consumers.
11. Miscellaneous permits - to purchase, receive or sell cannabis,
cannabis products or medical cannabis, or receipts, certificates,
contracts or other documents pertaining to cannabis, cannabis products,
or medical cannabis, or to provide specialized or certified ancillary
services to support the implementation and purpose of this chapter, in
cases not expressly provided for by this chapter, when in the judgment
S. 2509--A 98 A. 3009--A
of the office it would be appropriate and consistent with the policy and
purpose of this chapter.
§ 132. Municipal control and preemption. 1. The provisions of article
four of this chapter, authorizing the cultivation, processing, distrib-
ution and sale of adult-use cannabis to cannabis consumers, shall not be
applicable to a county, or city having a population of one hundred thou-
sand or more residents, which on or before December thirty-first, two
thousand twenty-one, adopts a local law, ordinance or resolution by a
majority vote of its governing body, to completely prohibit the estab-
lishment of one or more types of licenses contained in article four of
this chapter, within the jurisdiction of such county or city. Any coun-
ty law, ordinance or resolution passed by a county pursuant to this
subdivision shall not apply to a city that has a population of one
hundred thousand or more residents and that is geographically located
within the county unless such a prohibition is also adopted by a majori-
ty vote of the city's governing body. No law, ordinance or resolution
may be adopted after January first, two thousand twenty-two, completely
prohibiting the establishment of one or more types of licenses contained
in article four of this chapter.
2. Except as provided for in subdivision one of this section, all
counties, towns, cities and villages are hereby preempted from adopting
any rule, ordinance, regulation or prohibition pertaining to the opera-
tion or licensure of registered organizations, adult-use cannabis
licenses or cannabinoid hemp licenses. However, counties, cities, towns
and villages, as applicable, may pass ordinances or regulations govern-
ing the hours of operation and location of licensed adult-use cannabis
retail dispensaries, provided such ordinances or regulations do not make
the operation of such licensed retail dispensaries unreasonably imprac-
ticable.
3. Local rules, ordinances, regulations or prohibitions enacted by a
county, city, town, or village shall not require an adult-use cannabis
applicant, licensee or permittee to enter into a community host agree-
ment or pay any consideration to the municipality other than reasonable
zoning and permitting fees.
4. Notwithstanding subdivision one of this section, adult-use canna-
bis, medical cannabis and cannabinoid hemp farming and farm operations,
on land located within an agricultural district, shall be deemed an
approved activity under the relevant county, city, town, or village land
use or zoning ordinances, rules, or regulations, inclusive of all neces-
sary ancillary farm operations as permitted by license pursuant to this
chapter.
§ 133. Office to be necessary party to certain proceedings. The
office shall be made a party to all actions and proceedings affecting in
any manner the possession, ownership or transfer of a registration,
license or permit to operate within a municipality; to all injunction
proceedings; and to all other civil actions or proceedings which in any
manner affect the enjoyment of the privileges or the operation of the
restrictions provided for in this chapter.
§ 134. Penalties for violation of this chapter. 1. Any person who
cultivates for sale or sells cannabis, cannabis products, medical canna-
bis or cannabinoid hemp without having an appropriate registration,
license or permit therefor, or whose registration, license, or permit
has been revoked, surrendered or cancelled, upon first conviction there-
of shall be guilty of a misdemeanor, punishable by a fine not more than
five thousand dollars per violation, per day, and upon second conviction
thereof shall be guilty of a class A misdemeanor punishable by a fine
S. 2509--A 99 A. 3009--A
not more than ten thousand dollars per violation, per day, or a sentence
of imprisonment not to exceed thirty days and upon all subsequent
convictions thereof shall be an E felony punishable by a fine not more
than twenty-five thousand dollars per violation, per day or a sentence
of imprisonment not to exceed one year.
2. Any registered organization or licensee, whose registration or
license has been suspended pursuant to the provisions of this chapter,
who sells cannabis, cannabis products, medical cannabis or cannabinoid
hemp during the suspension period, upon conviction thereof shall be
guilty of an A misdemeanor, punishable punished by a fine of not more
than five thousand dollars per violation, per day.
3. Any person who shall make any false statement in the application
for or renewal of a registration, license or a permit under this chapter
shall be guilty of a misdemeanor, and upon conviction thereof shall be
punishable by a fine of not more than five thousand dollars.
4. Any violation by any person of any provision of this chapter for
which no punishment or penalty is otherwise provided shall be a misde-
meanor.
5. Nothing in this section shall prohibit the office from suspending,
revoking, or denying a license, permit, registration, or application in
addition to the penalties prescribed herein.
§ 135. Revocation of registrations, licenses and permits for cause;
procedure for revocation or cancellation. 1. Any registration, license
or permit issued pursuant to this chapter may be revoked, cancelled,
suspended and/or subjected to the imposition of a civil penalty for
cause, and must be revoked for the following causes:
(a) the registered organization, licensee, permittee or his or her
agent or employee has sold any illegal cannabis on the premises regis-
tered, licensed or permitted;
(b) for transferring, assigning or hypothecating a registration,
license or permit without prior written approval of the office;
(c) for failing to follow testing requirements prescribed under this
chapter or falsifying testing results;
(d) for knowingly distributing cannabis products to persons under
twenty-one years of age;
(e) for diverting, inverting or trafficking in cannabis to or from an
illegal and unlicensed, registered, or permitted source in violation of
this chapter; or
(f) for any other violation established in regulation which poses an
imminent and substantial threat to public health, public safety, or the
integrity of the state's cannabis regulatory structure.
2. Notwithstanding the issuance of a registration, license or permit
by way of renewal, the office may revoke, cancel or suspend such regis-
tration, license or permit and/or may impose a civil penalty against any
holder of such registration, license or permit, as prescribed by this
section, for causes or violations occurring during a license period
which occurred prior to the issuance of such registration, license or
permit.
3. (a) As used in this section, the term "for cause" shall also
include the existence of a sustained and continuing pattern of miscon-
duct, failure to adequately prevent diversion or disorder on or about
the registered, licensed or permitted premises, or in the area in front
of or adjacent to the registered or licensed premises, or in any parking
lot provided by the registered organization or licensee for use by
registered organization or licensee's patrons, which, in the judgment of
the office, adversely affects or tends to affect the protection, health,
S. 2509--A 100 A. 3009--A
welfare, safety, or repose of the inhabitants of the area in which the
registered or licensed premises is located, or results in the licensed
premises becoming a focal point for police attention, or is offensive to
public decency.
(b) (i) As used in this section, the term "for cause" shall also
include deliberately misleading the authority:
(A) as to the nature and character of the business to be operated by
the registered organization, licensee or permittee; or
(B) by substantially altering the nature or character of such business
during the registration or licensing period without seeking appropriate
approvals from the office.
(ii) As used in this subdivision, the term "substantially altering the
nature or character" of such business shall mean any significant alter-
ation in the scope of business activities conducted by a registered
organization, licensee or permittee that would require obtaining an
alternate form of registration, license or permit.
4. As used in this chapter, the existence of a sustained and continu-
ing pattern of misconduct, failure to adequately prevent diversion or
disorder on or about the premises may be presumed upon the third inci-
dent reported to the office by a law enforcement agency, or discovered
by the office during the course of any investigation, of misconduct,
diversion or disorder on or about the premises or related to the opera-
tion of the premises.
5. The denial, revocation, or suspension of any application, license,
permit, or registration issued to or submitted by a person, business, or
entity may also be grounds for the denial, suspension, or revocation of
any and all other licenses, permits, or registrations applied for by, or
issued to said person, business, or entity if the executive director
determines it necessary to protect public health and safety or that the
person, business, and/or entities involved no longer possess the good
moral character required to participate in the cannabis industry.
6. Any registration, license or permit issued by the office pursuant
to this chapter may be revoked, cancelled or suspended and/or be
subjected to the imposition of a monetary penalty in the manner
prescribed by this section.
7. The office may on its own initiative, or on complaint of any
person, institute proceedings to revoke, cancel or suspend any adult-use
cannabis retail dispensary license and may impose a civil penalty
against the licensee after a hearing at which the licensee shall be
given an opportunity to be heard. Such hearing shall be held in such
manner and upon such notice as may be prescribed by regulation.
8. All other registrations, licenses or permits issued under this
chapter may be revoked, cancelled, suspended and/or made subject to the
imposition of a civil penalty by the office after a hearing to be held
in such manner and upon such notice as may be prescribed in regulation
by the board.
9. Notwithstanding any other provision of this chapter, the office
may: (a) revoke or refuse to issue any class or type of license, permit,
or registration if it determines that failing to do so would conflict
with any federal law or guidance pertaining to regulatory, enforcement
and other systems that states, businesses, or other institutions may
implement to mitigate the potential for federal intervention or enforce-
ment. This provision shall not be construed to prohibit the overall
implementation and administration of this chapter on account of the
federal classification of marijuana or cannabis as a schedule I
substance or any other federal prohibitions or restrictions; and
S. 2509--A 101 A. 3009--A
(b) the board may adopt rules and regulations based on federal guid-
ance, provided those rules and regulations are designed to comply with
federal guidance and mitigate federal enforcement against the registra-
tions, licenses, or permits issued under this chapter, or the cannabis
industry as a whole. This may include regulations which permit the shar-
ing of licensee, registrant, or permit holder information with desig-
nated banking or financial institutions, provided these regulations are
designed to aid cannabis industry participants' access to banking and
financial services.
§ 136. Lawful actions pursuant to this chapter. 1. Contracts related
to the operation of registered organizations, licenses and permits under
this chapter shall be lawful and shall not be deemed unenforceable on
the basis that the actions permitted pursuant to the registration,
license or permit are prohibited by federal law.
2. The following actions are not unlawful as provided under this chap-
ter, shall not be an offense under any state or local law, and shall not
result in any civil fine, seizure, or forfeiture of assets against any
person acting in accordance with this chapter:
(a) Actions of a registered organization, licensee, or permittee, or
the employees or agents of such registered organization, licensee or
permittee, as permitted by this chapter and consistent with rules and
regulations of the office, pursuant to a valid registration, license or
permit issued by the office.
(b) Actions of those who allow property to be used by a registered
organization, licensee, or permittee, or the employees or agents of such
registered organization, licensee or permittee, as permitted by this
chapter and consistent with rules and regulations of the office, pursu-
ant to a valid registration, license or permit issued by the office.
(c) Actions of any person or entity, their employees, or their agents
providing a service to a registered organization, licensee, permittee or
a potential registered organization, licensee, or permittee, as permit-
ted by this chapter and consistent with rules and regulations of the
office, relating to the formation of a business.
(d) The purchase, possession, or consumption of cannabis, medical
cannabis and cannabinoid hemp, as permitted by this chapter and consist-
ent with rules and regulations of the office, obtained from a validly
registered, licensed or permitted retailer.
§ 137. Review by courts. 1. The following actions by the office shall
be subject to review by the supreme court in the manner provided in
article seventy-eight of the civil practice law and rules:
(a) refusal by the office to issue a registration, license, or a
permit;
(b) the revocation, cancellation or suspension of a registration,
license, or permit by the office;
(c) the failure or refusal by the office to render a decision upon any
completed application for a license, registration or permit, or hearing
submitted to or held by the office within sixty days after such
submission of a completed application or hearing;
(d) the transfer by the office of a registration, license, or permit
to any other entity or premises, or refusal by the office to approve
such a transfer; and
(e) refusal to approve a corporate change in stockholders, stockhold-
ings, officers or directors.
2. No stay shall be granted pending the determination of such matter
except on notice to the office and only for a period of less than thirty
days. In no instance shall a stay be granted where the office has issued
S. 2509--A 102 A. 3009--A
a summary suspension of a registration, license, or permit for the
protection of the public health, safety, and welfare.
§ 138. Illicit cannabis. 1. "Illicit cannabis" means and includes any
cannabis product or medical cannabis owned, cultivated, distributed,
bought, sold, packaged, rectified, blended, treated, fortified, mixed,
processed, warehoused, possessed or transported, on which any tax
required to have been paid under any applicable state law has not been
paid; or any adult-use cannabis or medical cannabis product the form,
packaging, or content of which is not permitted by the office, as appli-
cable.
2. Any person who shall knowingly barter or exchange with, or sell,
give or offer to sell or to give another any illicit cannabis is guilty
of a class A misdemeanor.
3. Any person who shall possess or have under his or her control or
transport any illicit cannabis with intent to barter or exchange with,
or to sell or give to another the same or any part thereof is guilty of
a class A misdemeanor. Such intent is presumptively established by proof
that the person knowingly possessed or had under his or her control one
or more ounces, or an equivalent amount as determined by the board in
regulation, of illicit cannabis. This presumption may be rebutted.
4. Any person who, being the owner, lessee, or occupant of any room,
shed, tenement, booth or building, float or vessel, or part thereof,
knowingly permits the same to be used for the cultivation, processing,
distribution, purchase, sale, warehousing, transportation, or storage of
any illicit cannabis, is guilty of a misdemeanor.
§ 139. Injunction for unlawful manufacturing, sale, distribution, or
consumption of cannabis. 1. If any person shall engage or participate
or be about to engage or participate in the cultivation, production,
distribution, traffic, or sale of cannabis products, medical cannabis or
cannabinoid hemp in this state without obtaining the appropriate regis-
tration, license, or permit therefor, or shall traffic in cannabis
products, medical cannabis or cannabinoid hemp contrary to any provision
of this chapter, or otherwise unlawfully, or shall traffic in illicit
cannabis or, operating either a place for profit or pecuniary gain, or a
not-for-profit basis, with a capacity for the assemblage of twenty or
more persons, shall permit a person or persons to come to such place of
assembly for the purpose of consuming cannabis products without having
the appropriate license or permit therefor, the office may present a
verified petition or complaint to a justice of the supreme court at a
special term of the supreme court of the judicial district in which such
city, village or town is situated, for an order enjoining such person
engaging or participating in such activity or from carrying on such
business. Such petition or complaint shall state the facts upon which
such application is based. Upon the presentation of the petition or
complaint, the justice or court may grant an order temporarily restrain-
ing any person from continuing to engage in conduct as specified in the
petition or complaint, and shall grant an order requiring such person to
appear before such justice or court at or before a special term of the
supreme court in such judicial district on the day specified therein,
not more than ten days after the granting thereof, to show cause why
such person should not be permanently enjoined from engaging or partic-
ipating in such activity or from carrying on such business, or why such
person should not be enjoined from carrying on such business contrary to
the provisions of this chapter. A copy of such petition or complaint and
order shall be served upon the person, in the manner directed by such
order, not less than three days before the return day thereof. On the
S. 2509--A 103 A. 3009--A
day specified in such order, the justice or court before whom the same
is returnable shall hear the proofs of the parties and may, if deemed
necessary or proper, take testimony in relation to the allegations of
the petition or complaint. If the justice or court is satisfied that
such person is about to engage or participate in the unlawful traffic in
cannabis, medical cannabis or cannabinoid hemp or has unlawfully culti-
vated, processed, or sold cannabis products, medical cannabis or canna-
binoid hemp without having obtained a registration or license or contra-
ry to the provisions of this chapter, or has trafficked in illicit
cannabis, or, is operating or is about to operate such place for profit
or pecuniary gain, with such capacity, and has permitted or is about to
permit a person or persons to come to such place of assembly for the
purpose of consuming cannabis products without having such appropriate
license, an order shall be granted enjoining such person from thereafter
engaging or participating in or carrying on such activity or business,
and allowing for the seizure of such illicit cannabis without limit. If,
after the entry of such an order in the county clerk's office of the
county in which the principal place of business of the corporation or
partnership is located, or in which the individual so enjoined resides
or conducts such business, and the service of a copy thereof upon such
person, or such substituted service as the court may direct, such
person, partnership or corporation shall, in violation of such order,
cultivate, process, distribute or sell cannabis products, medical canna-
bis or cannabinoid hemp, or illicit cannabis, or permit a person or
persons to come to such place of assembly for the purpose of consuming
cannabis products, such activity shall be deemed a contempt of court and
be punishable in the manner provided by the judiciary law, and, in addi-
tion to any such punishment, the justice or court before whom or which
the petition or complaint is heard, may, in his or its discretion, order
the seizure and forfeiture of any cannabis products and any fixtures,
equipment and supplies used in the operation or promotion of such ille-
gal activity and such property shall be subject to forfeiture pursuant
to law. Costs upon the application for such injunction may be awarded in
favor of and against the parties thereto in such sums as in the
discretion of the justice or court before whom or which the petition or
complaint is heard may seem proper.
2. The owner, lessor and lessee of a building, erection or place where
cannabis products, medical cannabis or cannabinoid hemp is unlawfully
cultivated, processed, distributed, sold, consumed or permitted to be
unlawfully cultivated, processed, distributed, sold or consumed may be
made a respondent or defendant in the proceeding or action.
3. The gift or transfer of cannabis in conjunction with the transfer
of any money, consideration or value, or another item or any other
services in an effort to evade laws, licensing, permitting, and regis-
tration requirements governing the sale of cannabis shall be considered
an unlawful activity under this chapter.
§ 140. Persons forbidden to traffic cannabis; certain officials not to
be interested in manufacture or sale of cannabis products. 1. The
following are forbidden to traffic in cannabis:
(a) Except as provided in subdivision one-a of this section, a person
who has been convicted of a felony, unless subsequent to such conviction
such person shall have received an executive pardon therefor removing
this disability, a certificate of good conduct granted by the department
of corrections and community supervision, or a certificate of relief
from disabilities granted by the department of corrections and community
supervision or a court of this state pursuant to the provisions of arti-
S. 2509--A 104 A. 3009--A
cle twenty-three of the correction law to remove the disability under
this section because of such conviction;
(b) A person under the age of twenty-one years;
(c) A person who is not a citizen of the United States or an alien
lawfully admitted for permanent residence in the United States;
(d) A partnership or a corporation, unless each member of the partner-
ship, or each of the principal officers and directors of the corpo-
ration, is a citizen of the United States or an alien lawfully admitted
for permanent residence in the United States, not less than twenty-one
years of age, and has not been convicted of any felony, or if so
convicted has received, subsequent to such conviction, an executive
pardon therefor removing this disability a certificate of good conduct
granted by the department of corrections and community supervision, or a
certificate of relief from disabilities granted by the department of
corrections and community supervision or a court of this state pursuant
to the provisions of article twenty-three of the correction law to
remove the disability under this section because of such conviction;
provided however that a corporation which otherwise conforms to the
requirements of this section and chapter may be licensed if each of its
principal officers and more than one-half of its directors are citizens
of the United States or aliens lawfully admitted for permanent residence
in the United States; and provided further that a corporation organized
under the not-for-profit corporation law or the education law which
otherwise conforms to the requirements of this section and chapter may
be licensed if each of its principal officers and more than one-half of
its directors are not less than twenty-one years of age and none of its
directors are less than eighteen years of age; and provided further that
a corporation organized under the not-for-profit corporation law or the
education law and located on the premises of a college as defined by
section two of the education law which otherwise conforms to the
requirements of this section and chapter may be licensed if each of its
principal officers and each of its directors are not less than twenty-
one years of age;
(e) A person who shall have had any registration or license issued
under this chapter revoked for cause, until no less than two years from
the date of such revocation;
(f) A person not registered or licensed under the provisions of this
chapter, who has been convicted of a violation of this chapter, until no
less than two years from the date of such conviction; or
(g) A corporation or partnership, if any officer and director or any
partner, while not licensed under the provisions of this chapter, has
been convicted of a violation of this chapter, or has had a registration
or license issued under this chapter revoked for cause, until no less
than two years from the date of such conviction or revocation.
1-a. Notwithstanding the provision of subdivision one of this section,
a corporation holding a registration or license to traffic cannabis
products or medical cannabis may, upon conviction of a felony be auto-
matically forbidden to traffic in cannabis products or medical cannabis,
and the application for a registered organization or license by such a
corporation may be subject to denial, and the registration or license of
such a corporation may be subject to revocation or suspension by the
office pursuant, consistent with the provisions of article
twenty-three-A of the correction law. For any felony conviction by a
court other than a court of this state, the office may request the
department of corrections and community supervision to investigate and
review the facts and circumstances concerning such a conviction, and
S. 2509--A 105 A. 3009--A
such department shall, if so requested, submit its findings to the
office as to whether the corporation has conducted itself in a manner
such that discretionary review by the office would not be inconsistent
with the public interest. The department of corrections and community
supervision may charge the registered organization, licensee or appli-
cant a fee equivalent to the expenses of an appropriate investigation
under this subdivision. For any conviction rendered by a court of this
state, the office may request the corporation, if the corporation is
eligible for a certificate of relief from disabilities, to seek such a
certificate from the court which rendered the conviction and to submit
such a certificate as part of the office's discretionary review process.
2. Except as may otherwise be provided for in regulation, it shall be
unlawful for any police commissioner, police inspector, captain,
sergeant, roundsman, patrolman or other police official or subordinate
of any police department in the state, to be either directly or indi-
rectly interested in the cultivation, processing, distribution, or sale
of cannabis products or to offer for sale, or recommend to any regis-
tered organization or licensee any cannabis products. A person may not
be denied any registration or license granted under the provisions of
this chapter solely on the grounds of being the spouse of a public serv-
ant described in this section. The solicitation or recommendation made
to any registered organization or licensee, to purchase any cannabis
products by any police official or subordinate as hereinabove described,
shall be presumptive evidence of the interest of such official or subor-
dinate in the cultivation, processing, distribution, or sale of cannabis
products.
3. No elective village officer shall be subject to the limitations set
forth in subdivision two of this section unless such elective village
officer shall be assigned duties directly relating to the operation or
management of the police department or have direct authority over any
applicable local licensing requirements or approvals.
§ 141. Access to criminal history information through the division of
criminal justice services. In connection with the administration of
this chapter, the office is authorized to request, receive and review
criminal history information through the division of criminal justice
services with respect to any person seeking a registration, license,
permit or authorization to cultivate, process, distribute or sell
medical cannabis or adult-use cannabis. At the office's request, each
person, member, principal and/or officer of the applicant shall submit
to the office his or her fingerprints in such form and in such manner as
specified by the division, for the purpose of conducting a criminal
history search and returning a report thereon in accordance with the
procedures and requirements established by the division pursuant to the
provisions of article thirty-five of the executive law, which shall
include the payment of the prescribed processing fees for the cost of
the division's full search and retain procedures and a national criminal
history record check. The executive director, or his or her designee,
shall submit such fingerprints and the processing fee to the division.
The division shall forward to the office a report with respect to the
applicant's previous criminal history, if any, or a statement that the
applicant has no previous criminal history according to its files. Fing-
erprints submitted to the division pursuant to this subdivision may also
be submitted to the federal bureau of investigation for a national crim-
inal history record check. If additional copies of fingerprints are
required, the applicant shall furnish them upon request.
§ 3. Intentionally omitted.
S. 2509--A 106 A. 3009--A
§ 4. Section 3302 of the public health law, as added by chapter 878 of
the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and
subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 22, 23, 24, 25,
26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of
subdivision 20, the opening paragraph of subdivision 22 and subdivision
29 as amended by chapter 163 of the laws of 1973, subdivision 21 as
amended by chapter 1 of the laws of 2020, subdivision 31 as amended by
section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as
added by section 6 of part A of chapter 447 of the laws of 2012, and
subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of
the laws of 2014, is amended to read as follows:
§ 3302. Definitions of terms of general use in this article. Except
where different meanings are expressly specified in subsequent
provisions of this article, the following terms have the following mean-
ings:
1. "Addict" means a person who habitually uses a controlled substance
for a non-legitimate or unlawful use, and who by reason of such use is
dependent thereon.
2. "Administer" means the direct application of a controlled
substance, whether by injection, inhalation, ingestion, or any other
means, to the body of a patient or research subject.
3. "Agent" means an authorized person who acts on behalf of or at the
direction of a manufacturer, distributor, or dispenser. No person may be
authorized to so act if under title VIII of the education law such
person would not be permitted to engage in such conduct. It does not
include a common or contract carrier, public warehouseman, or employee
of the carrier or warehouseman when acting in the usual and lawful
course of the carrier's or warehouseman's business.
4. ["Concentrated Cannabis" means
(a) the separated resin, whether crude or purified, obtained from a
plant of the genus Cannabis; or
(b) a material, preparation, mixture, compound or other substance
which contains more than two and one-half percent by weight of delta-9
tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering
system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
terpene numbering system.
5.] "Controlled substance" means a substance or substances listed in
section thirty-three hundred six of this [chapter] TITLE.
[6.] 5. "Commissioner" means commissioner of health of the state of
New York.
[7.] 6. "Deliver" or "delivery" means the actual, constructive or
attempted transfer from one person to another of a controlled substance,
whether or not there is an agency relationship.
[8.] 7. "Department" means the department of health of the state of
New York.
[9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
mate user or research subject by lawful means, including by means of the
internet, and includes the packaging, labeling, or compounding necessary
to prepare the substance for such delivery.
[10.] 9. "Distribute" means to deliver a controlled substance, includ-
ing by means of the internet, other than by administering or dispensing.
[11.] 10. "Distributor" means a person who distributes a controlled
substance.
S. 2509--A 107 A. 3009--A
[12.] 11. "Diversion" means manufacture, possession, delivery or use
of a controlled substance by a person or in a manner not specifically
authorized by law.
[13.] 12. "Drug" means
(a) substances recognized as drugs in the official United States Phar-
macopoeia, official Homeopathic Pharmacopoeia of the United States, or
official National Formulary, or any supplement to any of them;
(b) substances intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease in man or animals; and
(c) substances (other than food) intended to affect the structure or a
function of the body of man or animal. It does not include devices or
their components, parts, or accessories.
[14.] 13. "Federal agency" means the Drug Enforcement Administration,
United States Department of Justice, or its successor agency.
[15.] 14. "Federal controlled substances act" means the Comprehensive
Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and
any act or acts amendatory or supplemental thereto or regulations
promulgated thereunder.
[16.] 15. "Federal registration number" means such number assigned by
the Federal agency to any person authorized to manufacture, distribute,
sell, dispense or administer controlled substances.
[17.] 16. "Habitual user" means any person who is, or by reason of
repeated use of any controlled substance for non-legitimate or unlawful
use is in danger of becoming, dependent upon such substance.
[18.] 17. "Institutional dispenser" means a hospital, veterinary
hospital, clinic, dispensary, maternity home, nursing home, mental
hospital or similar facility approved and certified by the department as
authorized to obtain controlled substances by distribution and to
dispense and administer such substances pursuant to the order of a prac-
titioner.
[19.] 18. "License" means a written authorization issued by the
department or the New York state department of education permitting
persons to engage in a specified activity with respect to controlled
substances.
[20.] 19. "Manufacture" means the production, preparation, propa-
gation, compounding, cultivation, conversion or processing of a
controlled substance, either directly or indirectly or by extraction
from substances of natural origin, or independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis, and
includes any packaging or repackaging of the substance or labeling or
relabeling of its container, except that this term does not include the
preparation, compounding, packaging or labeling of a controlled
substance:
(a) by a practitioner as an incident to his OR HER administering or
dispensing of a controlled substance in the course of his professional
practice; or
(b) by a practitioner, or by his OR HER authorized agent under his OR
HER supervision, for the purpose of, or as an incident to, research,
teaching, or chemical analysis and not for sale; or
(c) by a pharmacist as an incident to his OR HER dispensing of a
controlled substance in the course of his OR HER professional practice.
[21. "Marihuana" means all parts of the plant of the genus Cannabis,
whether growing or not; the seeds thereof; the resin extracted from any
part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds or resin. The term
"marihuana" shall not include:
S. 2509--A 108 A. 3009--A
(a) the mature stalks of the plant, fiber produced from the stalks,
oil or cake made from the seeds of the plant, any other compound, manu-
facture, salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination;
(b) hemp, as defined in subdivision one of section five hundred five
of the agriculture and markets law;
(c) cannabinoid hemp as defined in subdivision two of section thirty-
three hundred ninety-eight of this chapter; or
(d) hemp extract as defined in subdivision five of section thirty-
three hundred ninety-eight of this chapter.
22.] 20. "Narcotic drug" means any of the following, whether produced
directly or indirectly by extraction from substances of vegetable
origin, or independently by means of chemical synthesis, or by a combi-
nation of extraction and chemical synthesis:
(a) opium and opiate, and any salt, compound, derivative, or prepara-
tion of opium or opiate;
(b) any salt, compound, isomer, derivative, or preparation thereof
which is chemically equivalent or identical with any of the substances
referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not
including the isoquinoline alkaloids of opium;
(c) opium poppy and poppy straw.
[23.] 21. "Opiate" means any substance having an addiction-forming or
addiction-sustaining liability similar to morphine or being capable of
conversion into a drug having addiction-forming or addiction-sustaining
liability. It does not include, unless specifically designated as
controlled under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
its salts (dextromethorphan). It does include its racemic and levorota-
tory forms.
[24.] 22. "Opium poppy" means the plant of the species Papaver
somniferum L., except its seeds.
[25.] 23. "Person" means individual, institution, corporation, govern-
ment or governmental subdivision or agency, business trust, estate,
trust, partnership or association, or any other legal entity.
[26.] 24. "Pharmacist" means any person licensed by the state depart-
ment of education to practice pharmacy.
[27.] 25. "Pharmacy" means any place registered as such by the New
York state board of pharmacy and registered with the Federal agency
pursuant to the federal controlled substances act.
[28.] 26. "Poppy straw" means all parts, except the seeds, of the
opium poppy, after mowing.
[29.] 27. "Practitioner" means:
A physician, dentist, podiatrist, veterinarian, scientific investi-
gator, or other person licensed, or otherwise permitted to dispense,
administer or conduct research with respect to a controlled substance in
the course of a licensed professional practice or research licensed
pursuant to this article. Such person shall be deemed a "practitioner"
only as to such substances, or conduct relating to such substances, as
is permitted by his license, permit or otherwise permitted by law.
[30.] 28. "Prescribe" means a direction or authorization, by
prescription, permitting an ultimate user lawfully to obtain controlled
substances from any person authorized by law to dispense such
substances.
S. 2509--A 109 A. 3009--A
[31.] 29. "Prescription" shall mean an official New York state
prescription, an electronic prescription, an oral prescription[,] OR an
out-of-state prescription[, or any one].
[32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
er, or offer or agree to do the same.
[33.] 31. "Ultimate user" means a person who lawfully obtains and
possesses a controlled substance for his own use or the use by a member
of his household or for an animal owned by him or in his custody. It
shall also mean and include a person designated, by a practitioner on a
prescription, to obtain such substance on behalf of the patient for whom
such substance is intended.
[34.] 32. "Internet" means collectively computer and telecommuni-
cations facilities which comprise the worldwide network of networks that
employ a set of industry standards and protocols, or any predecessor or
successor protocol to such protocol, to exchange information of all
kinds. "Internet," as used in this article, also includes other
networks, whether private or public, used to transmit information by
electronic means.
[35.] 33. "By means of the internet" means any sale, delivery,
distribution, or dispensing of a controlled substance that uses the
internet, is initiated by use of the internet or causes the internet to
be used.
[36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
in the United States that sells, delivers or dispenses, or offers to
sell, deliver, or dispense, a controlled substance by means of the
internet.
[37.] 35. "Electronic prescription" means a prescription issued with
an electronic signature and transmitted by electronic means in accord-
ance with regulations of the commissioner and the commissioner of educa-
tion and consistent with federal requirements. A prescription generated
on an electronic system that is printed out or transmitted via facsimile
is not considered an electronic prescription and must be manually
signed.
[38.] 36. "Electronic" means of or relating to technology having elec-
trical, digital, magnetic, wireless, optical, electromagnetic or similar
capabilities. "Electronic" shall not include facsimile.
[39.] 37. "Electronic record" means a paperless record that is
created, generated, transmitted, communicated, received or stored by
means of electronic equipment and includes the preservation, retrieval,
use and disposition in accordance with regulations of the commissioner
and the commissioner of education and in compliance with federal law and
regulations.
[40.] 38. "Electronic signature" means an electronic sound, symbol, or
process, attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the record,
in accordance with regulations of the commissioner and the commissioner
of education.
[41.] 39. "Registry" or "prescription monitoring program registry"
means the prescription monitoring program registry established pursuant
to section thirty-three hundred forty-three-a of this article.
[42.] 40. "Compounding" means the combining, admixing, mixing, dilut-
ing, pooling, reconstituting, or otherwise altering of a drug or bulk
drug substance to create a drug with respect to an outsourcing facility
under section 503B of the federal Food, Drug and Cosmetic Act and
further defined in this section.
[43.] 41. "Outsourcing facility" means a facility that:
S. 2509--A 110 A. 3009--A
(a) is engaged in the compounding of sterile drugs as defined in
section sixty-eight hundred two of the education law;
(b) is currently registered as an outsourcing facility pursuant to
article one hundred thirty-seven of the education law; and
(c) complies with all applicable requirements of federal and state
law, including the Federal Food, Drug and Cosmetic Act.
Notwithstanding any other provision of law to the contrary, when an
outsourcing facility distributes or dispenses any drug to any person
pursuant to a prescription, such outsourcing facility shall be deemed to
be providing pharmacy services and shall be subject to all laws, rules
and regulations governing pharmacies and pharmacy services.
§ 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of
section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17,
18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of
1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of
the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
laws of 2006, are amended to read as follows:
(13) [Marihuana.
(14)] Mescaline.
[(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy-
7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
[(16)] (15) Peyote. Meaning all parts of the plant presently classi-
fied botanically as Lophophora williamsii Lemaire, whether growing or
not, the seeds thereof, any extract from any part of such plant, and
every compound, manufacture, salts, derivative, mixture, or preparation
of such plant, its seeds or extracts.
[(17)] (16) N-ethyl-3-piperidyl benzilate.
[(18)] (17) N-methyl-3-piperidyl benzilate.
[(19)] (18) Psilocybin.
[(20)] (19) Psilocyn.
[(21)] (20) SYNTHETIC Tetrahydrocannabinols. [Synthetic] TETRAHYDRO-
CANNABINOLS NOT DERIVED FROM THE CANNABIS PLANT, OR TETRAHYDROCANNABI-
NOLS MANUFACTURED OR CREATED FROM THE CANNABIS PLANT BUT WHICH WERE NOT
PRODUCED BY THE CANNABIS PLANT DURING ITS CULTIVATION OR PRESENT AT THE
TIME OF HARVEST THAT ARE equivalents of the substances contained in the
plant, or in the resinous extractives of cannabis, sp. and/or synthetic
substances, derivatives, and their isomers with similar chemical struc-
ture and pharmacological activity such as the following:
[/\] DELTA 1 cis or trans tetrahydrocannabinol, and their optical
isomers
[/\] DELTA 6 cis or trans tetrahydrocannabinol, and their optical
isomers
[/\] DELTA 3, 4 cis or trans tetrahydrocannabinol, and its optical
isomers (since nomenclature of these substances is not internationally
standardized, compounds of these structures, regardless of numerical
designation of atomic positions covered).
TETRAHYDROCANNABINOL CREATED OR PRODUCED BY DECARBOXYLATION OF TETRAH-
YDROCANNABINOLIC ACID PRODUCED FROM THE CANNABIS PLANT THROUGH CULTI-
VATION OR PRESENT AT THE TIME OF HARVEST AND/OR ANY U.S. FOOD AND DRUG
ADMINISTRATION APPROVED PRODUCT CONTAINING TETRAHYDROCANNABINOL SHALL
NOT BE CONSIDERED A SYNTHETIC TETRAHYDROCANNABINOL.
[(22)] (21) Ethylamine analog of phencyclidine. Some trade or other
names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla-
mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
S. 2509--A 111 A. 3009--A
[(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other
names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
[(24)] (23) Thiophene analog of phencyclidine. Some trade or other
names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of
phencyclidine, TPCP, TCP.
[(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
[(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as
N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA,
MDE, MDEA.
[(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as
N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and
N-hydroxy MDA.
[(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other
names: TCPY.
[(29)] (28) Alpha-ethyltryptamine. Some trade or other names:
etryptamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine;
3- (2-aminobutyl) indole; Alpha-ET or AET.
[(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other
names: DOET.
[(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other
names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl
DOB; 2C-B, Nexus.
[(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
optical isomers, salts and salts of isomers.
§ 6. Title 5-A of article 33 of the public health law is REPEALED.
§ 6-a. Article 33-B of the public health law is REPEALED.
§ 7. Section 3382 of the public health law, as added by chapter 878 of
the laws of 1972, is amended to read as follows:
§ 3382. Growing of the plant known as Cannabis by unlicensed persons.
A person who, without being licensed so to do under this article OR
ARTICLES THREE, FOUR OR FIVE OF THE CANNABIS LAW, grows the plant of the
genus Cannabis or knowingly allows it to grow on his land without
destroying the same, shall be guilty of a class A misdemeanor.
§ 8. Subdivision 1 of section 3397-b of the public health law, as
added by chapter 810 of the laws of 1980, is amended to read as follows:
1. ["Marijuana"] "CANNABIS" means [marijuana] CANNABIS as defined in
[section thirty-three hundred two of this chapter] SUBDIVISION THREE OF
SECTION THREE OF THE CANNABIS LAW and shall also include
tetrahydrocannabinols or a chemical derivative of tetrahydrocannabinol.
§ 9. Subdivisions 5, 6 and 9 of section 220.00 of the penal law,
subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as
amended by chapter 664 of the laws of 1985, are amended and a new
subdivision 21 is added to read as follows:
5. "Controlled substance" means any substance listed in schedule I,
II, III, IV or V of section thirty-three hundred six of the public
health law other than [marihuana] CANNABIS AS DEFINED IN SUBDIVISION SIX
OF THIS SECTION, but including concentrated cannabis as defined in
[paragraph (a) of subdivision four of section thirty-three hundred two
of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
6. ["Marihuana"] "CANNABIS" means ["marihuana" or "concentrated
cannabis" as those terms are defined in section thirty-three hundred two
of the public health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS,
WHETHER GROWING OR NOT; THE SEEDS THEREOF; AND EVERY COMPOUND,
MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT, OR
ITS SEEDS. IT DOES NOT INCLUDE THE MATURE STALKS OF THE PLANT, FIBER
S. 2509--A 112 A. 3009--A
PRODUCED FROM THE STALKS, OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT,
ANY OTHER COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR
PREPARATION OF THE MATURE STALKS, FIBER, OIL, OR CAKE, OR THE STERILIZED
SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE
ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT,
HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL
(THC). CANNABIS DOES NOT INCLUDE ANY DRUG PRODUCT FOR WHICH AN APPLICA-
TION HAS BEEN APPROVED BY THE FEDERAL FOOD AND DRUG ADMINISTRATION.
9. "Hallucinogen" means any controlled substance listed in schedule
I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) AND
(21).
21. "CONCENTRATED CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL, PREPARATION, MIXTURE, COMPOUND OR OTHER SUBSTANCE WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING
SYSTEM.
§ 10. Subdivision 4 of section 220.06 of the penal law is REPEALED.
§ 11. Subdivision 10 of section 220.09 of the penal law is REPEALED.
§ 12. Subdivision 3 of section 220.34 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
3. concentrated cannabis as defined in [paragraph (a) of subdivision
four of section thirty-three hundred two of the public health law]
SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
§ 13. Subdivision 4 of section 15.20 of the penal law, as added by
chapter 75 of the laws of 1995, is amended to read as follows:
4. Notwithstanding the use of the term "knowingly" in any provision of
this chapter defining an offense in which the aggregate weight of a
controlled substance or [marihuana] CANNABIS is an element, knowledge by
the defendant of the aggregate weight of such controlled substance or
[marihuana] CANNABIS is not an element of any such offense and it is
not, unless expressly so provided, a defense to a prosecution therefor
that the defendant did not know the aggregate weight of the controlled
substance or [marihuana] CANNABIS.
§ 14. Section 221.00 of the penal law, as amended by chapter 90 of the
laws of 2014, is amended to read as follows:
§ 221.00 [Marihuana] CANNABIS; definitions.
Unless the context in which they are used clearly otherwise requires,
the terms occurring in this article shall have the same meaning ascribed
to them in article two hundred twenty of this chapter. Any act that is
lawful under [title five-A of article thirty-three of the public health]
ARTICLES THREE, FOUR OR FIVE, OF THE CANNABIS law is not a violation of
this article.
§ 15. Section 221.00 of the penal law, as added by chapter 360 of the
laws of 1977, is amended to read as follows:
§ 221.00 [Marihuana] CANNABIS; definitions.
Unless the context in which they are used clearly otherwise requires,
the terms occurring in this article shall have the same meaning ascribed
to them in article two hundred twenty of this chapter.
§ 16. Section 221.05 of the penal law, as amended by chapter 131 of
the laws of 2019, is amended to read as follows:
§ 221.05 Unlawful possession of [marihuana] CANNABIS in the second
degree.
S. 2509--A 113 A. 3009--A
A person is guilty of unlawful possession of [marihuana] CANNABIS in
the second degree when he knowingly and unlawfully possesses [marihua-
na.]:
1. CANNABIS AND IS LESS THAN TWENTY-ONE YEARS OF AGE; OR
2. CANNABIS IN A PUBLIC PLACE, AS DEFINED IN SECTION 240.00 OF THIS
PART, AND SUCH CANNABIS IS BURNING.
Unlawful possession of [marihuana] CANNABIS in the second degree is a
violation punishable only by a fine of not more than fifty dollars WHEN
SUCH POSSESSION IS BY A PERSON LESS THAN TWENTY-ONE YEARS OF AGE AND OF
AN AGGREGATE WEIGHT OF LESS THAN ONE-HALF OF ONE OUNCE OF CANNABIS OR
LESS THAN TWO AND ONE-HALF GRAMS OF CONCENTRATED CANNABIS OR A FINE OF
NOT MORE THAN ONE HUNDRED DOLLARS WHEN SUCH POSSESSION IS BY A PERSON
LESS THAN TWENTY-ONE YEARS OF AGE AND OF AN AGGREGATE WEIGHT MORE THAN
ONE-HALF OF ONE OUNCE OF CANNABIS BUT NOT MORE THAN ONE OUNCE OF CANNA-
BIS, OR MORE THAN TWO AND ONE-HALF GRAMS OF CONCENTRATED CANNABIS BUT
NOT MORE THAN FIVE GRAMS OF CONCENTRATED CANNABIS. UNLAWFUL POSSESSION
OF CANNABIS IN THE SECOND DEGREE IS PUNISHABLE BY A FINE OF NOT MORE
THAN ONE HUNDRED TWENTY-FIVE DOLLARS WHEN SUCH POSSESSION IS IN A PUBLIC
PLACE AND SUCH CANNABIS IS BURNING. THE TERM "BURNING" SHALL MEAN AND
INCLUDE SMOKING AND VAPING AS SUCH TERMS ARE DEFINED IN SECTION THIRTEEN
HUNDRED NINETY-NINE-N OF THE PUBLIC HEALTH LAW.
§ 16-a. Subdivision 8 of section 1399-n of the public health law, as
amended by chapter 131 of the laws of 2019, is amended to read as
follows:
8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
any other matter or substance which contains tobacco or [marihuana]
CANNABIS as defined in section [thirty-three hundred two of this chap-
ter] 220.00 OF THE PENAL LAW.
§ 17. Section 221.15 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.15 [Criminal] UNLAWFUL possession of [marihuana] CANNABIS in the
[fourth] FIRST degree.
A person is guilty of [criminal] UNLAWFUL possession of [marihuana]
CANNABIS in the [fourth] FIRST degree when he OR SHE knowingly and
unlawfully possesses [one or more preparations, compounds, mixtures or
substances containing marihuana and the preparations, compounds,
mixtures or substances are of] an aggregate weight of more than [two
ounces] ONE OUNCE OF CANNABIS OR MORE THAN FIVE GRAMS OF CONCENTRATED
CANNABIS.
[Criminal] UNLAWFUL possession of [marihuana] CANNABIS in the [fourth]
FIRST degree is a [class A misdemeanor] VIOLATION PUNISHABLE BY A FINE
OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS. THE PROVISIONS OF THIS
SECTION SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS
AS LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW.
§ 18. Section 221.20 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.20 Criminal possession of [marihuana] CANNABIS in the [third]
SECOND degree.
A person is guilty of criminal possession of [marihuana] CANNABIS in
the [third] SECOND degree when he OR SHE knowingly and unlawfully
possesses [one or more preparations, compounds, mixtures or substances
containing marihuana and the preparations, compounds, mixtures or
substances are of] an aggregate weight of more than [eight] TWO ounces
OF CANNABIS OR MORE THAN TEN GRAMS OF CONCENTRATED CANNABIS.
S. 2509--A 114 A. 3009--A
Criminal possession of [marihuana] CANNABIS in the [third] SECOND
degree is a class [E felony] A MISDEMEANOR PUNISHABLE BY A FINE NOT MORE
THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER OUNCE POSSESSED IN EXCESS OF
TWO OUNCES OF CANNABIS OR TEN GRAMS OF CONCENTRATED CANNABIS. HOWEVER,
WHERE THE DEFENDANT HAS PREVIOUSLY BEEN CONVICTED OF AN OFFENSE DEFINED
IN THIS ARTICLE OR ARTICLE TWO HUNDRED TWENTY OF THIS TITLE, COMMITTED
WITHIN THE THREE YEARS IMMEDIATELY PRECEDING SUCH VIOLATION, IT SHALL BE
PUNISHABLE (A) ONLY BY A FINE OF NOT MORE THAN TWO HUNDRED DOLLARS PER
OUNCE POSSESSED IN EXCESS OF TWO OUNCES, IF THE DEFENDANT WAS PREVIOUSLY
CONVICTED OF ONE SUCH OFFENSE COMMITTED DURING SUCH PERIOD, AND (B) BY A
FINE OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS PER OUNCE POSSESSED IN
EXCESS OF TWO OUNCES OR A TERM OF IMPRISONMENT NOT IN EXCESS OF FIFTEEN
DAYS OR BOTH, IF THE DEFENDANT WAS PREVIOUSLY CONVICTED OF TWO SUCH
OFFENSES COMMITTED DURING SUCH PERIOD. THE PROVISIONS OF THIS SECTION
SHALL NOT APPLY TO CERTIFIED PATIENTS OR DESIGNATED CAREGIVERS AS
LAWFULLY REGISTERED UNDER ARTICLE THREE OF THE CANNABIS LAW.
§ 19. Section 221.25 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.25 Criminal possession of [marihuana] CANNABIS in the [second]
FIRST degree.
A person is guilty of criminal possession of [marihuana] CANNABIS in
the [second] FIRST degree when he OR SHE knowingly and unlawfully
possesses [one or more preparations, compounds, mixtures or substances
containing marihuana and the preparations, compounds, mixtures or
substances are of] an aggregate weight of more than [sixteen] SIXTY-FOUR
ounces OF CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS.
Criminal possession of [marihuana] CANNABIS in the [second] FIRST
degree is a class [D] E felony.
§ 20. Sections 221.10 and 221.30 of the penal law are REPEALED.
§ 20-a. Paragraph (c) of subdivision 8 of section 700.05 of the crimi-
nal procedure law, as amended by chapter 37 of the laws of 2014, is
amended to read as follows:
(c) Criminal possession of a controlled substance in the seventh
degree as defined in section 220.03 of the penal law, criminal
possession of a controlled substance in the fifth degree as defined in
section 220.06 of the penal law, criminal possession of a controlled
substance in the fourth degree as defined in section 220.09 of the penal
law, criminal possession of a controlled substance in the third degree
as defined in section 220.16 of the penal law, criminal possession of a
controlled substance in the second degree as defined in section 220.18
of the penal law, criminal possession of a controlled substance in the
first degree as defined in section 220.21 of the penal law, criminal
sale of a controlled substance in the fifth degree as defined in section
220.31 of the penal law, criminal sale of a controlled substance in the
fourth degree as defined in section 220.34 of the penal law, criminal
sale of a controlled substance in the third degree as defined in section
220.39 of the penal law, criminal sale of a controlled substance in the
second degree as defined in section 220.41 of the penal law, criminal
sale of a controlled substance in the first degree as defined in section
220.43 of the penal law, criminally possessing a hypodermic instrument
as defined in section 220.45 of the penal law, criminal sale of a
prescription for a controlled substance or a controlled substance by a
practitioner or pharmacist as defined in section 220.65 of the penal
law, criminal possession of methamphetamine manufacturing material in
the second degree as defined in section 220.70 of the penal law, crimi-
S. 2509--A 115 A. 3009--A
nal possession of methamphetamine manufacturing material in the first
degree as defined in section 220.71 of the penal law, criminal
possession of precursors of methamphetamine as defined in section 220.72
of the penal law, unlawful manufacture of methamphetamine in the third
degree as defined in section 220.73 of the penal law, unlawful manufac-
ture of methamphetamine in the second degree as defined in section
220.74 of the penal law, unlawful manufacture of methamphetamine in the
first degree as defined in section 220.75 of the penal law, unlawful
disposal of methamphetamine laboratory material as defined in section
220.76 of the penal law, operating as a major trafficker as defined in
section 220.77 of the penal law, [criminal possession of marihuana in
the first degree as defined in section 221.30 of the penal law, criminal
sale of marihuana in the first degree as defined in section 221.55 of
the penal law,] promoting gambling in the second degree as defined in
section 225.05 of the penal law, promoting gambling in the first degree
as defined in section 225.10 of the penal law, possession of gambling
records in the second degree as defined in section 225.15 of the penal
law, possession of gambling records in the first degree as defined in
section 225.20 of the penal law, and possession of a gambling device as
defined in section 225.30 of the penal law;
§ 20-b. Paragraph (c) of subdivision 4-b and subdivisions 6 and 9 of
section 1310 of the civil practice law and rules, paragraph (c) of
subdivision 4-b as added by chapter 655 of the laws of 1990 and subdivi-
sions 6 and 9 as added by chapter 669 of the laws of 1984, are amended
to read as follows:
(c) a conviction of a person for a violation of section 220.09,
220.16, 220.34 or 220.39 of the penal law, [or a conviction of a crimi-
nal defendant for a violation of section 221.30 of the penal law,] or
where the accusatory instrument charges any such felony, conviction upon
a plea of guilty to a felony for which the plea is otherwise authorized
by law, together with evidence which: (i) provides substantial indicia
that the defendant used the real property to engage in a continual,
ongoing course of conduct involving the unlawful mixing, compounding,
manufacturing, warehousing, or packaging of controlled substances [or
where the conviction is for a violation of section 221.30 of the penal
law, marijuana,] as part of an illegal trade or business for gain; and
(ii) establishes, where the conviction is for possession of a controlled
substance [or where the conviction is for a violation of section 221.30
of the penal law, marijuana], that such possession was with the intent
to sell it.
6. "Pre-conviction forfeiture crime" means only a felony defined in
article two hundred twenty or section [221.30 or] 221.55 of the penal
law.
9. "Criminal defendant" means a person who has criminal liability for
a crime defined in subdivisions five and six [hereof] OF THIS SECTION.
For purposes of this article, a person has criminal liability when (a)
he has been convicted of a post-conviction forfeiture crime, or (b) the
claiming authority proves by clear and convincing evidence that such
person has committed an act in violation of article two hundred twenty
or section [221.30 or] 221.55 of the penal law.
§ 20-c. Paragraph (c) of subdivision 7 of section 480.00 of the penal
law, as added by chapter 655 of the laws of 1990, is amended to read as
follows:
(c) a conviction of a person for a violation of section 220.09,
220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or where the
accusatory instrument charges any such felony, conviction upon a plea of
S. 2509--A 116 A. 3009--A
guilty to a felony for which the plea is otherwise authorized by law,
together with evidence which: (i) provides substantial indicia that the
defendant used the real property to engage in a continual, ongoing
course of conduct involving the unlawful mixing, compounding, manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction is for a violation of section 221.30 of this chapter, mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or where the conviction is for a violation of section 221.30 of this
chapter, marijuana], that such possession was with the intent to sell
it.
§ 20-d. Paragraph (c) of subdivision 4 of section 509-cc of the vehi-
cle and traffic law, as amended by chapter 368 of the laws of 2015, is
amended to read as follows:
(c) The offenses referred to in subparagraph (i) of paragraph (b) of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two
of this section that result in disqualification for a period of five
years shall include a conviction under sections 100.10, 105.13, 115.05,
120.03, 120.04, 120.04-a, 120.05, 120.10, 120.25, 121.12, 121.13,
125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
220.16, 220.31, 220.34, 220.60, 220.65, [221.30,] 221.50, 221.55,
230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
235.06, 235.07, 235.21, 240.06, 245.00, 260.10, subdivision two of
section 260.20 and sections 260.25, 265.02, 265.03, 265.08, 265.09,
265.10, 265.12, 265.35 of the penal law or an attempt to commit any of
the aforesaid offenses under section 110.00 of the penal law, or any
similar offenses committed under a former section of the penal law, or
any offenses committed under a former section of the penal law which
would constitute violations of the aforesaid sections of the penal law,
or any offenses committed outside this state which would constitute
violations of the aforesaid sections of the penal law.
§ 20-e. Subdivision 1 of section 170.56 of the criminal procedure law,
as amended by chapter 360 of the laws of 1977, is amended to read as
follows:
1. Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole remaining count or counts charge a violation or violations of
section 221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law and
before the entry of a plea of guilty thereto or commencement of a trial
thereof, the court, upon motion of a defendant, may order that all
proceedings be suspended and the action adjourned in contemplation of
dismissal, or upon a finding that adjournment would not be necessary or
appropriate and the setting forth in the record of the reasons for such
findings, may dismiss in furtherance of justice the accusatory instru-
ment; provided, however, that the court may not order such adjournment
in contemplation of dismissal or dismiss the accusatory instrument if:
(a) the defendant has previously been granted such adjournment in
contemplation of dismissal, or (b) the defendant has previously been
granted a dismissal under this section, or (c) the defendant has previ-
ously been convicted of any offense involving controlled substances, or
(d) the defendant has previously been convicted of a crime and the
district attorney does not consent or (e) the defendant has previously
been adjudicated a youthful offender on the basis of any act or acts
involving controlled substances and the district attorney does not
consent.
S. 2509--A 117 A. 3009--A
§ 20-f. Subparagraph (iii) of paragraph (k) of subdivision 3 of
section 160.50 of the criminal procedure law, as amended by chapter 132
of the laws of 2019, is amended to read as follows:
(iii) the conviction is for an offense defined in section 221.05 [or],
221.10 OR 221.15 of the penal law.
§ 21. Section 221.35 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.35 Criminal sale of [marihuana] CANNABIS in the [fifth] SIXTH
degree.
A person is guilty of criminal sale of [marihuana] CANNABIS in the
[fifth] SIXTH degree when he OR SHE knowingly and unlawfully sells,
[without] FOR consideration[, one or more preparations, compounds,
mixtures or substances containing marihuana and the preparations,
compounds, mixtures or substances are] CANNABIS OR CANNABIS CONCENTRATE
of [an aggregate weight of two grams or less; or one cigarette contain-
ing marihuana] ANY WEIGHT.
Criminal sale of [marihuana] CANNABIS in the [fifth] SIXTH degree is a
[class B misdemeanor] VIOLATION PUNISHABLE BY A FINE NOT MORE THAN THE
GREATER OF TWO-HUNDRED AND FIFTY DOLLARS OR TWO TIMES THE VALUE OF THE
SALE.
§ 22. Section 221.40 of the penal law, as added by chapter 360 of the
laws of 1977, is amended to read as follows:
§ 221.40 Criminal sale of [marihuana] CANNABIS in the [fourth] FIFTH
degree.
A person is guilty of criminal sale of [marihuana] CANNABIS in the
[fourth] fifth degree when he OR SHE knowingly and unlawfully sells
[marihuana except as provided in section 221.35 of this article] CANNA-
BIS OF AN AGGREGATE WEIGHT OF MORE THAN ONE OUNCE OR MORE THAN FIVE
GRAMS OF CANNABIS CONCENTRATE.
Criminal sale of [marihuana] CANNABIS in the [fourth] FIFTH degree is
a [class A] misdemeanor PUNISHABLE BY A FINE OF NOT MORE THAN THE GREAT-
ER OF FIVE HUNDRED DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A MAXI-
MUM OF THREE MONTHS IMPRISONMENT, OR BOTH.
§ 23. Section 221.45 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.45 Criminal sale of [marihuana] CANNABIS in the [third] FOURTH
degree.
A person is guilty of criminal sale of [marihuana] CANNABIS in the
[third] FOURTH degree when he OR SHE knowingly and unlawfully sells [one
or more preparations, compounds, mixtures or substances containing mari-
huana and the preparations, compounds, mixtures or substances are of an
aggregate weight of more than twenty-five grams] OR AN AGGREGATE WEIGHT
OF MORE THAN FOUR OUNCES OF CANNABIS OR MORE THAN TWENTY GRAMS OF
CONCENTRATED CANNABIS.
Criminal sale of [marihuana] CANNABIS in the [third] FOURTH degree is
a [class E felony] MISDEMEANOR PUNISHABLE BY A FINE OF NOT MORE THAN THE
GREATER OF ONE THOUSAND DOLLARS OR TWO TIMES THE VALUE OF THE SALE OR A
MAXIMUM OF ONE YEAR IMPRISONMENT OR BOTH.
§ 24. A NEW SECTION 221.46 IS ADDED TO THE PENAL LAW AS FOLLOWS:
§ 221.46 CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE. A PERSON IS
GUILTY OF CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE WHEN HE KNOWING-
LY AND UNLAWFULLY SELLS ANY AMOUNT OF CANNABIS OR CONCENTRATED CANNABIS
TO ANY PERSON UNDER TWENTY-ONE YEARS OF AGE. IN ANY PROSECUTION FOR
UNLAWFUL SALE OF CANNABIS OR CONCENTRATED CANNABIS TO SOMEONE UNDER
S. 2509--A 118 A. 3009--A
TWENTY-ONE YEARS OF AGE PURSUANT TO THIS SECTION, IT IS AN AFFIRMATIVE
DEFENSE THAT: (A) THE DEFENDANT HAD REASONABLE CAUSE TO BELIEVE THAT
THE PERSON UNDER TWENTY-ONE YEARS OF AGE INVOLVED WAS TWENTY-ONE YEARS
OLD OR MORE; AND (B) SUCH PERSON UNDER TWENTY-ONE YEARS OF AGE EXHIBITED
TO THE DEFENDANT A DRAFT CARD, DRIVER'S LICENSE OR IDENTIFICATION CARD,
BIRTH CERTIFICATE OR OTHER OFFICIAL OR APPARENTLY OFFICIAL DOCUMENT
PURPORTING TO ESTABLISH THAT SUCH PERSON WAS TWENTY-ONE YEARS OLD OR
MORE. CRIMINAL SALE OF CANNABIS IN THE THIRD DEGREE IS A CLASS A MISDE-
MEANOR.
§ 24-A. Section 221.50 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.50 Criminal sale of [marihuana] CANNABIS in the second degree.
A person is guilty of criminal sale of [marihuana] CANNABIS in the
second degree when he knowingly and unlawfully sells [one or more prepa-
rations, compounds, mixtures or substances containing marihuana and the
preparations, compounds, mixtures or substances are of] an aggregate
weight of more than [four ounces, or knowingly and unlawfully sells one
or more preparations, compounds, mixtures or substances containing mari-
huana to a person less than eighteen years of age] SIXTEEN OUNCES OF
CANNABIS OR MORE THAN EIGHTY GRAMS OF CONCENTRATED CANNABIS..
Criminal sale of [marihuana] CANNABIS in the second degree is a class
E felony.
§ 25. Section 221.55 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.55 Criminal sale of [marihuana] CANNABIS in the first degree.
A person is guilty of criminal sale of [marihuana] CANNABIS in the
first degree when he knowingly and unlawfully sells [one or more prepa-
rations, compounds, mixtures or substances containing marihuana and the
preparations, compounds, mixtures or substances are of an aggregate
weight of] more than [sixteen] SIXTY-FOUR ounces OF CANNABIS OR THREE
HUNDRED AND TWENTY GRAMS OF CANNABIS CONCENTRATE.
Criminal sale of [marihuana] CANNABIS in the first degree is a class D
felony.
§ 26. The penal law is amended by adding a new section 221.60 to read
as follows:
§ 221.60 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF
THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL-
TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC-
TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING CANNABIS OR
CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLE THREE, FOUR OR FIVE OF THE CANNABIS LAW.
§ 27. Intentionally omitted.
§ 28. Paragraph (f) of subdivision 2 of section 850 of the general
business law is REPEALED.
§ 29. Paragraph (h) of subdivision 2 of section 850 of the general
business law, as amended by chapter 812 of the laws of 1980, is amended
to read as follows:
(h) Objects, used or designed for the purpose of ingesting, inhaling,
or otherwise introducing [marihuana,] cocaine, hashish, or hashish oil
into the human body.
§ 30. Section 114-a of the vehicle and traffic law, as added by chap-
ter 163 of the laws of 1973, is amended to read as follows:
S. 2509--A 119 A. 3009--A
§ 114-a. Drug. The term "drug" when used in this chapter, means and
includes any substance listed in section thirty-three hundred six of the
public health law AND ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT
IMPAIR, TO ANY EXTENT, PHYSICAL OR MENTAL ABILITIES.
§ 31. The article heading of article 20-B of the tax law, as added by
chapter 90 of the laws of 2014, is amended to read as follows:
EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
§ 32. The paragraph heading and subparagraph (i) of paragraph (b) of
subdivision 1 of section 1193 of the vehicle and traffic law, as amended
by chapter 169 of the laws of 2013, are amended to read as follows:
Driving while intoxicated or while ability impaired by drugs or while
ability impaired by the combined influence of drugs or of alcohol and
any drug or drugs; aggravated driving while intoxicated; misdemeanor
offenses. (i) A violation of subdivision two, three, OR four [or four-a]
of section eleven hundred ninety-two of this article shall be a misde-
meanor and shall be punishable by a fine of not less than five hundred
dollars nor more than one thousand dollars, or by imprisonment in a
penitentiary or county jail for not more than one year, or by both such
fine and imprisonment. A violation of paragraph (a) of subdivision two-a
of section eleven hundred ninety-two of this article shall be a misde-
meanor and shall be punishable by a fine of not less than one thousand
dollars nor more than two thousand five hundred dollars or by imprison-
ment in a penitentiary or county jail for not more than one year, or by
both such fine and imprisonment.
§ 33. Paragraph (c) of subdivision 1 of section 1193 of the vehicle
and traffic law is amended by adding a new subparagraph (i-a) to read as
follows:
(I-A) A VIOLATION OF SUBDIVISION FOUR-A OF SECTION ELEVEN HUNDRED
NINETY-TWO OF THIS ARTICLE SHALL BE A CLASS E FELONY, AND SHALL BE
PUNISHABLE BY A FINE OF NOT LESS THAN ONE THOUSAND DOLLARS NOR MORE THAN
FIVE THOUSAND DOLLARS OR BY A PERIOD OF IMPRISONMENT AS PROVIDED IN THE
PENAL LAW, OR BY BOTH SUCH FINE AND IMPRISONMENT.
§ 33-a. Subdivisions 1, 2 and 3 of section 1194 of the vehicle and
traffic law, as added by chapter 47 of the laws of 1988, paragraph (a)
of subdivision 2 as amended by chapter 196 of the laws of 1996, para-
graphs (b) and (c) of subdivision 2 as amended by chapter 489 of the
laws of 2017, clause (A) of subparagraph 1, subparagraphs 2 and 3 of
paragraph (b), subparagraphs 1, 2 and 3 of paragraph (c) of subdivision
2 as amended by chapter 27 of the laws of 2018, subparagraphs 1 and 2 of
paragraph (d) of subdivision 2 as amended by chapter 732 of the laws of
2006, and item (iii) of clause c of subparagraph 1 of paragraph (d) of
subdivision 2 as amended by section 37 of part LL of chapter 56 of the
laws of 2010, are amended to read as follows:
1. Arrest and field testing. (a) Arrest. Notwithstanding the
provisions of section 140.10 of the criminal procedure law, a police
officer may, without a warrant, arrest a person, in case of a violation
of subdivision one of section eleven hundred ninety-two of this article,
if such violation is coupled with an accident or collision in which such
person is involved, which in fact has been committed, though not in the
police officer's presence, when the officer has reasonable cause to
believe that the violation was committed by such person.
(b) Field testing. Every person operating a motor vehicle which has
been involved in an accident or which is operated in violation of any of
the provisions of this chapter shall, at the request of a police offi-
cer, submit to a breath test AND/OR ORAL/BODILY FLUID TEST to be admin-
istered by the police officer. If such test indicates that such opera-
S. 2509--A 120 A. 3009--A
tor has consumed alcohol OR DRUG OR DRUGS, the police officer may
request such operator to submit to a chemical test AND/OR AN EVALUATION
CONDUCTED BY A DRUG RECOGNITION EXPERT in the manner set forth in subdi-
vision two of this section.
2. Chemical tests AND DRUG RECOGNITION EVALUATIONS. (a) When author-
ized. Any person who operates a motor vehicle in this state shall be
deemed to have given consent to AN EVALUATION CONDUCTED BY A CERTIFIED
DRUG RECOGNITION EXPERT AND/OR a chemical test of one or more of the
following: breath, blood, urine, or saliva, for the purpose of determin-
ing the alcoholic and/or drug content of the blood provided that such
test is administered by or at the direction of a police officer with
respect to a chemical test of breath, urine or saliva or, with respect
to a chemical test of blood, at the direction of a police officer:
(1) having reasonable grounds to believe such person to have been
operating in violation of any subdivision of section eleven hundred
ninety-two of this article and within two hours after such person has
been placed under arrest for any such violation; or having reasonable
grounds to believe such person to have been operating in violation of
section eleven hundred ninety-two-a of this article and within two hours
after the stop of such person for any such violation,
(2) within two hours after a breath test, as provided in paragraph (b)
of subdivision one of this section, indicates that alcohol has been
consumed by such person and in accordance with the rules and regulations
established by the police force of which the officer is a member;
(3) for the purposes of this paragraph, "reasonable grounds" to
believe that a person has been operating a motor vehicle after having
consumed alcohol in violation of section eleven hundred ninety-two-a of
this article shall be determined by viewing the totality of circum-
stances surrounding the incident which, when taken together, indicate
that the operator was driving in violation of such subdivision. Such
circumstances may include any visible or behavioral indication of alco-
hol consumption by the operator, the existence of an open container
containing or having contained an alcoholic beverage in or around the
vehicle driven by the operator, or any other evidence surrounding the
circumstances of the incident which indicates that the operator has been
operating a motor vehicle after having consumed alcohol at the time of
the incident; or
(4) notwithstanding any other provision of law to the contrary, no
person under the age of twenty-one shall be arrested for an alleged
violation of section eleven hundred ninety-two-a of this article.
However, a person under the age of twenty-one for whom a chemical test
AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT is
authorized pursuant to this paragraph may be temporarily detained by the
police solely for the purpose of requesting or administering such chemi-
cal test AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION
EXPERT whenever arrest without a warrant for a petty offense would be
authorized in accordance with the provisions of section 140.10 of the
criminal procedure law or paragraph (a) of subdivision one of this
section.
(b) Report of refusal. (1) If: (A) such person having been placed
under arrest; or (B) after a breath, BLOOD, URINE, AND/OR ORAL/BODILY
FLUID test indicates the presence of alcohol AND/OR DRUG OR DRUGS in the
person's system; or (C) with regard to a person under the age of twen-
ty-one, there are reasonable grounds to believe that such person has
been operating a motor vehicle after having consumed alcohol in
violation of section eleven hundred ninety-two-a of this article; and
S. 2509--A 121 A. 3009--A
having thereafter been requested to submit to such chemical test AND/OR
AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG
RECOGNITION EXPERT and having been informed that the person's license or
permit to drive and any non-resident operating privilege shall be imme-
diately suspended and subsequently revoked, or, for operators under the
age of twenty-one for whom there are reasonable grounds to believe that
such operator has been operating a motor vehicle after having consumed
alcohol in violation of section eleven hundred ninety-two-a of this
article, shall be revoked for refusal to submit to such chemical test or
any portion thereof, AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG
RECOGNITION EXPERT OR ANY PORTION THEREOF, whether or not the person is
found guilty of the charge for which such person is arrested or
detained, refuses to submit to such chemical test or any portion there-
of, AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED
DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF, unless a court order has
been granted pursuant to subdivision three of this section, the test
shall not be given and a written report of such refusal shall be imme-
diately made by the police officer before whom such refusal was made.
Such report may be verified by having the report sworn to, or by affix-
ing to such report a form notice that false statements made therein are
punishable as a class A misdemeanor pursuant to section 210.45 of the
penal law and such form notice together with the subscription of the
deponent shall constitute a verification of the report.
(2) The report of the police officer shall set forth reasonable
grounds to believe such arrested person or such detained person under
the age of twenty-one had been driving in violation of any subdivision
of section eleven hundred ninety-two or eleven hundred ninety-two-a of
this article, that said person had refused to submit to such chemical
test, OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED
DRUG RECOGNITION EXPERT OR ANY PORTION THEREOF, and that no chemical
test OR EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT was
administered pursuant to the requirements of subdivision three of this
section. The report shall be presented to the court upon arraignment of
an arrested person, provided, however, in the case of a person under the
age of twenty-one, for whom a test was authorized pursuant to the
provisions of subparagraph two or three of paragraph (a) of this subdi-
vision, and who has not been placed under arrest for a violation of any
of the provisions of section eleven hundred ninety-two of this article,
such report shall be forwarded to the commissioner within forty-eight
hours in a manner to be prescribed by the commissioner, and all subse-
quent proceedings with regard to refusal to submit to such chemical test
AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT by
such person shall be as set forth in subdivision three of section eleven
hundred ninety-four-a of this article.
(3) For persons placed under arrest for a violation of any subdivision
of section eleven hundred ninety-two of this article, the license or
permit to drive and any non-resident operating privilege shall, upon the
basis of such written report, be temporarily suspended by the court
without notice pending the determination of a hearing as provided in
paragraph (c) of this subdivision. Copies of such report must be trans-
mitted by the court to the commissioner and such transmittal may not be
waived even with the consent of all the parties. Such report shall be
forwarded to the commissioner within forty-eight hours of such arraign-
ment.
(4) The court or the police officer, in the case of a person under the
age of twenty-one alleged to be driving after having consumed alcohol,
S. 2509--A 122 A. 3009--A
shall provide such person with a scheduled hearing date, a waiver form,
and such other information as may be required by the commissioner. If a
hearing, as provided for in paragraph (c) of this subdivision, or subdi-
vision three of section eleven hundred ninety-four-a of this article, is
waived by such person, the commissioner shall immediately revoke the
license, permit, or non-resident operating privilege, as of the date of
receipt of such waiver in accordance with the provisions of paragraph
(d) of this subdivision.
(c) Hearings. Any person whose license or permit to drive or any non-
resident driving privilege has been suspended pursuant to paragraph (b)
of this subdivision is entitled to a hearing in accordance with a hear-
ing schedule to be promulgated by the commissioner. If the department
fails to provide for such hearing fifteen days after the date of the
arraignment of the arrested person, the license, permit to drive or
non-resident operating privilege of such person shall be reinstated
pending a hearing pursuant to this section. The hearing shall be limited
to the following issues: (1) did the police officer have reasonable
grounds to believe that such person had been driving in violation of any
subdivision of section eleven hundred ninety-two of this article; (2)
did the police officer make a lawful arrest of such person; (3) was such
person given sufficient warning, in clear or unequivocal language, prior
to such refusal that such refusal to submit to such chemical test or any
portion thereof AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY
A CERTIFIED DRUG RECOGNITION EXPERT, would result in the immediate
suspension and subsequent revocation of such person's license or operat-
ing privilege whether or not such person is found guilty of the charge
for which the arrest was made; and (4) did such person refuse to submit
to such chemical test or any portion thereof AND/OR AN EVALUATION OR ANY
PORTION THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT. If,
after such hearing, the hearing officer, acting on behalf of the commis-
sioner, finds on any one of said issues in the negative, the hearing
officer shall immediately terminate any suspension arising from such
refusal. If, after such hearing, the hearing officer, acting on behalf
of the commissioner finds all of the issues in the affirmative, such
officer shall immediately revoke the license or permit to drive or any
non-resident operating privilege in accordance with the provisions of
paragraph (d) of this subdivision. A person who has had a license or
permit to drive or non-resident operating privilege suspended or revoked
pursuant to this subdivision may appeal the findings of the hearing
officer in accordance with the provisions of article three-A of this
chapter. Any person may waive the right to a hearing under this section.
Failure by such person to appear for the scheduled hearing shall consti-
tute a waiver of such hearing, provided, however, that such person may
petition the commissioner for a new hearing which shall be held as soon
as practicable.
(d) Sanctions. (1) Revocations. a. Any license which has been revoked
pursuant to paragraph (c) of this subdivision shall not be restored for
at least one year after such revocation, nor thereafter, except in the
discretion of the commissioner. However, no such license shall be
restored for at least eighteen months after such revocation, nor there-
after except in the discretion of the commissioner, in any case where
the person has had a prior revocation resulting from refusal to submit
to a chemical test AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED
BY A CERTIFIED DRUG RECOGNITION EXPERT, or has been convicted of or
found to be in violation of any subdivision of section eleven hundred
ninety-two or section eleven hundred ninety-two-a of this article not
S. 2509--A 123 A. 3009--A
arising out of the same incident, within the five years immediately
preceding the date of such revocation; provided, however, a prior find-
ing that a person under the age of twenty-one has refused to submit to a
chemical test pursuant to subdivision three of section eleven hundred
ninety-four-a of this article shall have the same effect as a prior
finding of a refusal pursuant to this subdivision solely for the purpose
of determining the length of any license suspension or revocation
required to be imposed under any provision of this article, provided
that the subsequent offense or refusal is committed or occurred prior to
the expiration of the retention period for such prior refusal as set
forth in paragraph (k) of subdivision one of section two hundred one of
this chapter.
b. Any license which has been revoked pursuant to paragraph (c) of
this subdivision or pursuant to subdivision three of section eleven
hundred ninety-four-a of this article, where the holder was under the
age of twenty-one years at the time of such refusal, shall not be
restored for at least one year, nor thereafter, except in the discretion
of the commissioner. Where such person under the age of twenty-one years
has a prior finding, conviction or youthful offender adjudication
resulting from a violation of section eleven hundred ninety-two or
section eleven hundred ninety-two-a of this article, not arising from
the same incident, such license shall not be restored for at least one
year or until such person reaches the age of twenty-one years, whichever
is the greater period of time, nor thereafter, except in the discretion
of the commissioner.
c. Any commercial driver's license which has been revoked pursuant to
paragraph (c) of this subdivision based upon a finding of refusal to
submit to a chemical test AND/OR AN EVALUATION OR ANY PORTION THEREOF
CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, where such finding
occurs within or outside of this state, shall not be restored for at
least eighteen months after such revocation, nor thereafter, except in
the discretion of the commissioner, but shall not be restored for at
least three years after such revocation, nor thereafter, except in the
discretion of the commissioner, if the holder of such license was oper-
ating a commercial motor vehicle transporting hazardous materials at the
time of such refusal. However, such person shall be permanently disqual-
ified from operating a commercial motor vehicle in any case where the
holder has a prior finding of refusal to submit to a chemical test
AND/OR AN EVALUATION OR ANY PORTION THEREOF CONDUCTED BY A CERTIFIED
DRUG RECOGNITION EXPERT pursuant to this section or has a prior
conviction of any of the following offenses: any violation of section
eleven hundred ninety-two of this article; any violation of subdivision
one or two of section six hundred of this chapter; or has a prior
conviction of any felony involving the use of a motor vehicle pursuant
to paragraph (a) of subdivision one of section five hundred ten-a of
this chapter. Provided that the commissioner may waive such permanent
revocation after a period of ten years has expired from such revocation
provided:
(i) that during such ten year period such person has not been found to
have refused a chemical test OR AN EVALUATION OR ANY PORTION THEREOF
CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT pursuant to this
section and has not been convicted of any one of the following offenses:
any violation of section eleven hundred ninety-two of this article;
refusal to submit to a chemical test OR AN EVALUATION OR ANY PORTION
THEREOF CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT pursuant to
this section; any violation of subdivision one or two of section six
S. 2509--A 124 A. 3009--A
hundred of this chapter; or has a prior conviction of any felony involv-
ing the use of a motor vehicle pursuant to paragraph (a) of subdivision
one of section five hundred ten-a of this chapter;
(ii) that such person provides acceptable documentation to the commis-
sioner that such person is not in need of alcohol or drug treatment or
has satisfactorily completed a prescribed course of such treatment; and
(iii) after such documentation is accepted, that such person is grant-
ed a certificate of relief from disabilities or a certificate of good
conduct pursuant to article twenty-three of the correction law by the
court in which such person was last penalized.
d. Upon a third finding of refusal and/or conviction of any of the
offenses which require a permanent commercial driver's license revoca-
tion, such permanent revocation may not be waived by the commissioner
under any circumstances.
(2) Civil penalties. Except as otherwise provided, any person whose
license, permit to drive, or any non-resident operating privilege is
revoked pursuant to the provisions of this section shall also be liable
for a civil penalty in the amount of five hundred dollars except that if
such revocation is a second or subsequent revocation pursuant to this
section issued within a five year period, or such person has been
convicted of a violation of any subdivision of section eleven hundred
ninety-two of this article within the past five years not arising out of
the same incident, the civil penalty shall be in the amount of seven
hundred fifty dollars. Any person whose license is revoked pursuant to
the provisions of this section based upon a finding of refusal to submit
to a chemical test while operating a commercial motor vehicle shall also
be liable for a civil penalty of five hundred fifty dollars except that
if such person has previously been found to have refused a chemical test
AND/OR AN EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT OR
ANY PORTION THEREOF pursuant to this section while operating a commer-
cial motor vehicle or has a prior conviction of any of the following
offenses while operating a commercial motor vehicle: any violation of
section eleven hundred ninety-two of this article; any violation of
subdivision two of section six hundred of this chapter; or has a prior
conviction of any felony involving the use of a commercial motor vehicle
pursuant to paragraph (a) of subdivision one of section five hundred
ten-a of this chapter, then the civil penalty shall be seven hundred
fifty dollars. No new driver's license or permit shall be issued, or
non-resident operating privilege restored to such person unless such
penalty has been paid. All penalties collected by the department pursu-
ant to the provisions of this section shall be the property of the state
and shall be paid into the general fund of the state treasury.
(3) Effect of rehabilitation program. No period of revocation arising
out of this section may be set aside by the commissioner for the reason
that such person was a participant in the alcohol and drug rehabili-
tation program set forth in section eleven hundred ninety-six of this
article.
(e) Regulations. The commissioner shall promulgate such rules and
regulations as may be necessary to effectuate the provisions of subdivi-
sions one and two of this section.
(f) Evidence. Evidence of a refusal to submit to such chemical test or
any portion thereof OR AN EVALUATION CONDUCTED BY A DRUG RECOGNITION
EXPERT shall be admissible in any trial, proceeding or hearing based
upon a violation of the provisions of section eleven hundred ninety-two
of this article but only upon a showing that the person was given suffi-
S. 2509--A 125 A. 3009--A
cient warning, in clear and unequivocal language, of the effect of such
refusal and that the person persisted in the refusal.
(g) Results. Upon the request of the person who was tested, the
results of such test shall be made available to such person.
3. Compulsory chemical tests. (a) Court ordered chemical tests.
Notwithstanding the provisions of subdivision two of this section, no
person who operates a motor vehicle in this state may refuse to submit
to a chemical test of one or more of the following: breath, blood, urine
or [saliva] ORAL/BODILY FLUIDS, for the purpose of determining the alco-
holic and/or drug content of the blood OR ORAL/BODILY FLUIDS when a
court order for such chemical test has been issued in accordance with
the provisions of this subdivision.
(b) When authorized. Upon refusal by any person to submit to a chemi-
cal test or any portion thereof as described above, the test shall not
be given unless a police officer or a district attorney, as defined in
subdivision thirty-two of section 1.20 of the criminal procedure law,
requests and obtains a court order to compel a person to submit to a
chemical test to determine the alcoholic AND/or drug content of the
person's blood OR ORAL/BODILY FLUIDS upon a finding of reasonable cause
to believe that:
(1) such person was the operator of a motor vehicle [and in the course
of such operation a person other than the operator was killed or
suffered serious physical injury as defined in section 10.00 of the
penal law]; and
(2) a. either such person operated the vehicle in violation of any
subdivision of section eleven hundred ninety-two of this article, or b.
a breath TEST AND/OR ORAL/BODILY FLUID test administered by a police
officer in accordance with paragraph (b) of subdivision one of this
section indicates that alcohol AND/OR DRUG OR DRUGS has been consumed by
such person; and
(3) such person has been placed under lawful arrest; and
(4) such person has refused to submit to a chemical test AND/or AN
EVALUATION CONDUCTED BY A CERTIFIED DRUG RECOGNITION EXPERT, OR any
portion thereof, requested in accordance with the provisions of para-
graph (a) of subdivision two of this section or is unable to give
consent to such a test.
(c) Reasonable cause; definition. For the purpose of this subdivision
"reasonable cause" shall be determined by viewing the totality of
circumstances surrounding the incident which, when taken together, indi-
cate that the operator was driving in violation of section eleven
hundred ninety-two of this article. Such circumstances may include, but
are not limited to: evidence that the operator was operating a motor
vehicle in violation of any provision of this article or any other
moving violation at the time of the incident; any visible indication of
alcohol or drug consumption or impairment by the operator; the existence
of an open container containing an alcoholic beverage AND/OR DRUG OR
DRUGS in or around the vehicle driven by the operator; THE ODOR OF
CANNABIS OR BURNT CANNABIS; any other evidence surrounding the circum-
stances of the incident which indicates that the operator has been oper-
ating a motor vehicle while impaired by the consumption of alcohol or
drugs or intoxicated at the time of the incident.
(d) Court order; procedure. (1) An application for a court order to
compel submission to a chemical test or any portion thereof, may be made
to any supreme court justice, county court judge or district court judge
in the judicial district in which the incident occurred, or if the inci-
dent occurred in the city of New York before any supreme court justice
S. 2509--A 126 A. 3009--A
or judge of the criminal court of the city of New York. Such application
may be communicated by telephone, radio or other means of electronic
communication, or in person.
(2) The applicant must provide identification by name and title and
must state the purpose of the communication. Upon being advised that an
application for a court order to compel submission to a chemical test is
being made, the court shall place under oath the applicant and any other
person providing information in support of the application as provided
in subparagraph three of this paragraph. After being sworn the applicant
must state that the person from whom the chemical test was requested was
the operator of a motor vehicle and [in the course of such operation a
person, other than the operator, has been killed or seriously injured
and], based upon the totality of circumstances, there is reasonable
cause to believe that such person was operating a motor vehicle in
violation of any subdivision of section eleven hundred ninety-two of
this article and, after being placed under lawful arrest such person
refused to submit to a chemical test or any portion thereof, in accord-
ance with the provisions of this section or is unable to give consent to
such a test or any portion thereof. The applicant must make specific
allegations of fact to support such statement. Any other person properly
identified, may present sworn allegations of fact in support of the
applicant's statement.
(3) Upon being advised that an oral application for a court order to
compel a person to submit to a chemical test is being made, a judge or
justice shall place under oath the applicant and any other person
providing information in support of the application. Such oath or oaths
and all of the remaining communication must be recorded, either by means
of a voice recording device or verbatim stenographic or verbatim long-
hand notes. If a voice recording device is used or a stenographic record
made, the judge must have the record transcribed, certify to the accura-
cy of the transcription and file the original record and transcription
with the court within seventy-two hours of the issuance of the court
order. If the longhand notes are taken, the judge shall subscribe a copy
and file it with the court within twenty-four hours of the issuance of
the order.
(4) If the court is satisfied that the requirements for the issuance
of a court order pursuant to the provisions of paragraph (b) of this
subdivision have been met, it may grant the application and issue an
order requiring the accused to submit to a chemical test to determine
the alcoholic and/or drug content of his blood and/OR ORAL/BODILY FLUIDS
ordering the withdrawal of a blood AND/OR ORAL/BODILY FLUID sample in
accordance with the provisions of paragraph (a) of subdivision four of
this section. When a judge or justice determines to issue an order to
compel submission to a chemical test based on an oral application, the
applicant therefor shall prepare the order in accordance with the
instructions of the judge or justice. In all cases the order shall
include the name of the issuing judge or justice, the name of the appli-
cant, and the date and time it was issued. It must be signed by the
judge or justice if issued in person, or by the applicant if issued
orally.
(5) Any false statement by an applicant or any other person in support
of an application for a court order shall subject such person to the
offenses for perjury set forth in article two hundred ten of the penal
law.
(6) The chief administrator of the courts shall establish a schedule
to provide that a sufficient number of judges or justices will be avail-
S. 2509--A 127 A. 3009--A
able in each judicial district to hear oral applications for court
orders as permitted by this section.
(e) Administration of compulsory chemical test. An order issued pursu-
ant to the provisions of this subdivision shall require that a chemical
test to determine the alcoholic and/or drug content of the operator's
blood AND/OR ORAL/BODILY FLUID must be administered. The provisions of
paragraphs (a), (b) and (c) of subdivision four of this section shall be
applicable to any chemical test administered pursuant to this section.
§ 33-b. Subdivision 1 of section 1227 of the vehicle and traffic law,
as amended by section 3 of part F of chapter 60 of the laws of 2005, is
amended to read as follows:
1. The drinking of alcoholic beverages OR CONSUMPTION OF CANNABIS, or
the possession of an open container containing an alcoholic beverage OR
CANNABIS, in a motor vehicle located upon the public highways or right-
of-way public highway is prohibited. Any operator or passenger violating
this section shall be guilty of a traffic infraction.
The provisions of this section shall not be deemed to prohibit the
drinking of alcoholic beverages, THE CONSUMPTION OF CANNABIS BY MEANS
OTHER THAN BURNING, or the possession of an open container containing an
alcoholic beverage OR CANNABIS by passengers in passenger vehicles oper-
ated pursuant to a certificate or permit issued by the department of
transportation or the United States department of transportation.
Furthermore, the provisions of this section shall not be deemed to
prohibit the possession of wine which is: (a) resealed in accordance
with the provisions of subdivision four of section eighty-one of the
alcoholic beverage control law; and (b) is transported in the vehicle's
trunk or is transported behind the last upright seat or in an area not
normally occupied by the driver or passenger in a motor vehicle that is
not equipped with a trunk.
§ 34. Subdivision 1 of section 171-a of the tax law, as amended by
section 3 of part XX of chapter 59 of the laws of 2019, 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-C, twenty-D, twenty-one, twenty-two, twenty-four,
twenty-six, twenty-eight (except as otherwise provided in section eleven
hundred two or eleven hundred three thereof), twenty-eight-A, twenty-
nine-B, thirty-one (except as otherwise provided in section fourteen
hundred twenty-one thereof), thirty-three and thirty-three-A of this
chapter shall be deposited daily in one account with such responsible
banks, banking houses or trust companies as may be designated by the
comptroller, to the credit of the comptroller. Such an account may be
established in one or more of such depositories. Such deposits shall be
kept separate and apart from all other money in the possession of the
comptroller. The comptroller shall require adequate security from all
such depositories. Of the total revenue collected or received under such
articles of this chapter, the comptroller shall retain in the comp-
troller'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
S. 2509--A 128 A. 3009--A
reimbursements to which taxpayers 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 pursu-
ant to subdivision five of section one hundred seventy-one-d and subdi-
vision six of section one hundred seventy-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, thirty, 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 cred-
it to the special offset fiduciary account, pursuant to section ninety-
one-c of the state finance law, any such amount creditable as a liabil-
ity 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 commissioner 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 article twenty-two of this chap-
ter 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 seven-
ty-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 corporation, or the revenue
S. 2509--A 129 A. 3009--A
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.
§ 35. Section 490 of the tax law, as added by chapter 90 of the laws
of 2014, is amended to read as follows:
§ 490. [Definitions] EXCISE TAX ON MEDICAL CANNABIS. 1. (a) [All
definitions of terms applicable to title five-A of article thirty-three
of the public health law shall apply to this article.] FOR PURPOSES OF
THIS ARTICLE, THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION,"
"CERTIFIED PATIENT," AND "DESIGNATED CAREGIVER" SHALL HAVE THE SAME
DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW.
(b) As used in this section, where not otherwise specifically defined
and unless a different meaning is clearly required "gross receipt" means
the amount received in or by reason of any sale, conditional or other-
wise, of medical [marihuana] CANNABIS or in or by reason of the furnish-
ing of medical [marihuana] CANNABIS from the sale of medical [marihuana]
CANNABIS provided by a registered organization to a certified patient or
designated caregiver. Gross receipt is expressed in money, whether paid
in cash, credit or property of any kind or nature, and shall be deter-
mined without any deduction therefrom on account of the cost of the
service sold or the cost of materials, labor or services used or other
costs, interest or discount paid, or any other expenses whatsoever.
"Amount received" for the purpose of the definition of gross receipt, as
the term gross receipt is used throughout this article, means the amount
charged for the provision of medical [marihuana] CANNABIS.
2. There is hereby imposed an excise tax on the gross receipts from
the sale of medical [marihuana] CANNABIS by a registered organization to
a certified patient or designated caregiver, to be paid by the regis-
tered organization, at the rate of seven percent. The tax imposed by
this article shall be charged against and be paid by the registered
organization and shall not be added as a separate charge or line item on
any sales slip, invoice, receipt or other statement or memorandum of the
price given to the retail customer.
3. The commissioner may make, adopt and amend rules, regulations,
procedures and forms necessary for the proper administration of this
article.
4. Every registered organization that makes sales of medical [marihua-
na] CANNABIS subject to the tax imposed by this article shall, on or
before the twentieth date of each month, file with the commissioner a
return on forms to be prescribed by the commissioner, showing its
receipts from the retail sale of medical [marihuana] CANNABIS during the
preceding calendar month and the amount of tax due thereon. Such returns
shall contain such further information as the commissioner may require.
Every registered organization required to file a return under this
section shall, at the time of filing such return, pay to the commission-
er the total amount of tax due on its retail sales of medical [marihua-
na] CANNABIS for the period covered by such return. If a return is not
filed when due, the tax shall be due on the day on which the return is
required to be filed.
5. Whenever the commissioner shall determine that any moneys received
under the provisions of this article were paid in error, he may cause
the same to be refunded, with interest, in accordance with such rules
S. 2509--A 130 A. 3009--A
and regulations as he may prescribe, except that no interest shall be
allowed or paid if the amount thereof would be less than one dollar.
Such interest shall be at the overpayment rate set by the commissioner
pursuant to subdivision twenty-sixth of section one hundred seventy-one
of this chapter, or if no rate is set, at the rate of six percent per
annum, from the date when the tax, penalty or interest to be refunded
was paid to a date preceding the date of the refund check by not more
than thirty days. Provided, however, that for the purposes of this
subdivision, any tax paid before the last day prescribed for its payment
shall be deemed to have been paid on such last day. Such moneys received
under the provisions of this article which the commissioner shall deter-
mine were paid in error, may be refunded out of funds in the custody of
the comptroller to the credit of such taxes provided an application
therefor is filed with the commissioner within two years from the time
the erroneous payment was made.
6. The provisions of article twenty-seven of this chapter shall apply
to the tax imposed by this article in the same manner and with the same
force and effect as if the language of such article had been incorpo-
rated in full into this section and had expressly referred to the tax
imposed by this article, except to the extent that any provision of such
article is either inconsistent with a provision of this article or is
not relevant to this article.
7. All taxes, interest and penalties collected or received by the
commissioner under this article shall be deposited and disposed of
pursuant to the provisions of section one hundred seventy-one-a of this
chapter, provided that an amount equal to one hundred percent collected
under this article less any amount determined by the commissioner to be
reserved by the comptroller for refunds or reimbursements shall be paid
by the comptroller to the credit of the medical [marihuana] CANNABIS
trust fund established by section eighty-nine-h of the state finance
law.
8. A registered organization that dispenses medical [marihuana] CANNA-
BIS shall provide to the department information on where the medical
[marihuana] CANNABIS was dispensed and where the medical [marihuana]
CANNABIS was manufactured. A registered organization that obtains [mari-
huana] CANNABIS from another registered organization shall obtain from
such registered organization information on where the medical [marihua-
na] CANNABIS was manufactured.
§ 36. Section 491 of the tax law, as added by chapter 90 of the laws
of 2014, subdivision 1 as amended by section 1 of part II of chapter 60
of the laws of 2016, is amended to read as follows:
§ 491. Returns to be secret. 1. Except in accordance with proper judi-
cial order or as in this section or otherwise provided by law, it shall
be unlawful for the commissioner, any officer or employee of the depart-
ment, or any officer or person who, pursuant to this section, is permit-
ted to inspect any return or report or to whom a copy, an abstract or a
portion of any return or report is furnished, or to whom any information
contained in any return or report is furnished, or any person engaged or
retained by such department on an independent contract basis or any
person who in any manner may acquire knowledge of the contents of a
return or report filed pursuant to this article to divulge or make known
in any manner the contents or any other information relating to the
business of a distributor, owner or other person contained in any return
or report required under this article. The officers charged with the
custody of such returns or reports shall not be required to produce any
of them or evidence of anything contained in them in any action or
S. 2509--A 131 A. 3009--A
proceeding in any court, except on behalf of the state, [the state
department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner
in an action or proceeding under the provisions of this chapter or on
behalf of the state or the commissioner in any other action or proceed-
ing involving the collection of a tax due under this chapter to which
the state or the commissioner is a party or a claimant or on behalf of
any party to any action or proceeding under the provisions of this arti-
cle, when the returns or the reports or the facts shown thereby are
directly involved in such action or proceeding, or in an action or
proceeding relating to the regulation or taxation of medical [marihuana]
CANNABIS on behalf of officers to whom information shall have been
supplied as provided in subdivision two of this section, in any of which
events the court may require the production of, and may admit in
evidence so much of said returns or reports or of the facts shown there-
by as are pertinent to the action or proceeding and no more. Nothing
herein shall be construed to prohibit the commissioner, in his or her
discretion, from allowing the inspection or delivery of a certified copy
of any return or report filed under this article or of any information
contained in any such return or report by or to a duly authorized offi-
cer or employee of the [state department of health] OFFICE OF CANNABIS
MANAGEMENT; or by or to the attorney general or other legal represen-
tatives of the state when an action shall have been recommended or
commenced pursuant to this chapter in which such returns or reports or
the facts shown thereby are directly involved; or the inspection of the
returns or reports required under this article by the comptroller or
duly designated officer or employee of the state department of audit and
control, for purposes of the audit of a refund of any tax paid by a
registered organization or other person under this article; nor to
prohibit the delivery to a registered organization, or a duly authorized
representative of such registered organization, a certified copy of any
return or report filed by such registered organization pursuant to this
article, nor to prohibit the publication of statistics so classified as
to prevent the identification of particular returns or reports and the
items thereof. This section shall also not be construed to prohibit the
disclosure, for tax administration purposes, to the division of the
budget and the office of the state comptroller, of information aggre-
gated from the returns filed by all the registered organizations making
sales of, or manufacturing, medical [marihuana] CANNABIS in a specified
county, whether the number of such registered organizations is one or
more. Provided further that, notwithstanding the provisions of this
subdivision, the commissioner may, in his or her discretion, permit the
proper officer of any county entitled to receive an allocation, follow-
ing appropriation by the legislature, pursuant to this article and
section eighty-nine-h of the state finance law, or the authorized repre-
sentative of such officer, to inspect any return filed under this arti-
cle, or may furnish to such officer or the officer's authorized repre-
sentative an abstract of any such return or supply such officer or such
representative with information concerning an item contained in any such
return, or disclosed by any investigation of tax liability under this
article.
2. The commissioner, in his or her discretion and pursuant to such
rules and regulations as he or she may adopt, may permit [the commis-
sioner of internal revenue of the United States, or] the appropriate
officers of any other state which regulates or taxes medical [marihuana]
CANNABIS, or the duly authorized representatives of such [commissioner
or of any such] officers, to inspect returns or reports made pursuant to
S. 2509--A 132 A. 3009--A
this article, or may furnish to such [commissioner or] other officers,
or duly authorized representatives, a copy of any such return or report
or an abstract of the information therein contained, or any portion
thereof, or may supply [such commissioner or] any such officers or such
representatives with information relating to the business of a regis-
tered organization making returns or reports hereunder. The commissioner
may refuse to supply information pursuant to this subdivision [to the
commissioner of internal revenue of the United States or] to the offi-
cers of any other state if the statutes [of the United States, or] of
the state represented by such officers, do not grant substantially simi-
lar privileges to the commissioner, but such refusal shall not be manda-
tory. Information shall not be supplied to [the commissioner of internal
revenue of the United States or] the appropriate officers of any other
state which regulates or taxes medical [marihuana] CANNABIS, or the duly
authorized representatives [of such commissioner or] of any of such
officers, unless such [commissioner,] officer or other representatives
shall agree not to divulge or make known in any manner the information
so supplied, but such officers may transmit such information to their
employees or legal representatives when necessary, who in turn shall be
subject to the same restrictions as those hereby imposed upon such
[commissioner,] officer or other representatives.
3. (a) Any officer or employee of the state who willfully violates the
provisions of subdivision one or two of this section shall be dismissed
from office and be incapable of holding any public office in this state
for a period of five years thereafter.
(b) Cross-reference: For criminal penalties, see article thirty-seven
of this chapter.
§ 37. The tax law is amended by adding a new article 20-C to read as
follows:
ARTICLE 20-C
TAX ON ADULT-USE CANNABIS PRODUCTS
SECTION 492. DEFINITIONS.
493. IMPOSITION OF TAX.
494. REGISTRATION AND RENEWAL.
495. RETURNS AND PAYMENT OF TAX.
496. RECORDS TO BE KEPT; PENALTIES.
496-A. RETURNS TO BE SECRET.
496-B. ADMINISTRATIVE PROVISIONS.
496-C. ILLICIT CANNABIS PENALTY.
§ 492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
(A) "ADULT-USE CANNABIS PRODUCT" OR "ADULT-USE CANNABIS" HAS THE SAME
MEANING AS THE TERM IS DEFINED IN SECTION THREE OF THE CANNABIS LAW. FOR
PURPOSES OF THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL ADULT-USE CANNA-
BIS PRODUCT INCLUDE MEDICAL CANNABIS OR CANNABINOID HEMP PRODUCT AS
DEFINED IN SECTION THREE OF THE CANNABIS LAW.
(B) "CANNABIS" MEANS ALL PARTS OF THE A PLANT OF THE GENUS CANNABIS,
WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN. FOR PURPOSES
OF THIS ARTICLE, CANNABIS DOES NOT INCLUDE MEDICAL CANNABIS OR CANNABI-
NOID HEMP PRODUCT AS DEFINED IN SECTION THREE OF THE CANNABIS LAW.
(C) "CANNABIS EDIBLE PRODUCT" MEANS A PRODUCT, CONTAINING EITHER
CANNABIS OR CONCENTRATED CANNABIS AND OTHER INGREDIENTS, INTENDED FOR
USE OR CONSUMPTION THROUGH INGESTION, INCLUDING SUBLINGUAL OR ORAL
ABSORPTION.
S. 2509--A 133 A. 3009--A
(D) "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
BIS THAT HAS BEEN HARVESTED, DRIED AND CURED BUT HAS NOT UNDERGONE ANY
PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED INTO A CONCENTRATE,
INCLUDING, BUT NOT LIMITED TO, CONCENTRATED CANNABIS, OR INTO AN EDIBLE
OR TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS AND
OTHER INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
(E) "CONCENTRATED CANNABIS" HAS THE SAME MEANING AS THE TERM IS
DEFINED IN SECTION THREE OF THE CANNABIS LAW.
(F) "DISTRIBUTOR" HAS THE SAME MEANING AS THE TERM IS DEFINED IN
SECTION THREE OF THE CANNABIS LAW.
(G) "ILLICIT CANNABIS" MEANS AND INCLUDES CANNABIS FLOWER, CONCEN-
TRATED CANNABIS, CANNABIS EDIBLE PRODUCT AND CANNABIS PLANT ON WHICH ANY
TAX REQUIRED TO HAVE BEEN PAID UNDER THIS CHAPTER HAS NOT BEEN PAID, OR
THE FORM, PACKAGING, OR CONTENT OF WHICH IS NOT PERMITTED BY THE OFFICE
OF CANNABIS MANAGEMENT, AS APPLICABLE.
(H) "CANNABIS PLANT" MEANS CANNABIS THAT HAS NOT BEEN HARVESTED, OR
UNDERGONE PROCESSING, DRYING OR CURING.
(I) "PERSON" MEANS EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING IN A
FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A COURT OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
(J) "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE
OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL, OR
OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION
OR ANY AGREEMENT THEREFOR.
(K) "TOTAL THC" HAS THE SAME MEANING AS THE TERM DEFINED IN SECTION
THREE OF THE CANNABIS LAW.
§ 493. IMPOSITION OF TAX. (A) THERE IS HEREBY IMPOSED A TAX ON
ADULT-USE CANNABIS PRODUCTS SOLD BY A DISTRIBUTOR TO A PERSON WHO SELLS
ADULT-USE CANNABIS PRODUCTS AT RETAIL AT THE FOLLOWING RATES:
(1) CANNABIS FLOWER AT THE RATE OF SEVEN TENTHS OF ONE CENT PER MILLI-
GRAM OF THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL;
(2) CONCENTRATED CANNABIS AT THE RATE OF ONE CENT PER MILLIGRAM OF THE
AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL; AND
(3) CANNABIS EDIBLE PRODUCT AT THE RATE OF FOUR CENTS PER MILLIGRAM OF
THE AMOUNT OF TOTAL THC, AS REFLECTED ON THE PRODUCT LABEL. THIS TAX
SHALL ACCRUE AT THE TIME OF SUCH SALE OR TRANSFER. WHERE A PERSON WHO
DISTRIBUTES ADULT-USE CANNABIS IS LICENSED UNDER THE CANNABIS LAW AS A
MICROBUSINESS, COOPERATIVE OR REGISTERED ORGANIZATION, SUCH PERSON SHALL
BE LIABLE FOR THE TAX, AND SUCH TAX SHALL ACCRUE AT THE TIME OF THE
RETAIL SALE.
(B) IN ADDITION TO ANY OTHER TAX IMPOSED BY THIS CHAPTER OR OTHER LAW,
THERE IS HEREBY IMPOSED A TAX OF TEN AND ONE-QUARTER PERCENT ON RECEIPTS
FROM THE RETAIL SALE OF ADULT-USE CANNABIS PRODUCTS SOLD IN THIS STATE.
THE TAX IS IMPOSED ON THE RETAIL CUSTOMER AND SHALL BE COLLECTED AT THE
TIME OF THE RETAIL SALE BY THE PERSON WHO SELLS ADULT-USE CANNABIS
PRODUCTS AT RETAIL, IN TRUST FOR AND ON ACCOUNT OF THE STATE.
(C) THE TAXES IMPOSED IN SUBDIVISIONS (A) AND (B) OF THIS SECTION
SHALL NOT APPLY TO SALES OF ADULT-USE CANNABIS TO A PERSON HOLDING A
CANNABIS RESEARCH LICENSE UNDER SECTION THIRTY-NINE OF THE CANNABIS LAW.
§ 494. REGISTRATION AND RENEWAL. (A) (I) EVERY DISTRIBUTOR ON WHOM
TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE
CANNABIS PRODUCTS AT RETAIL MUST FILE WITH THE COMMISSIONER A PROPERLY
COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION BEFORE ENGAGING
IN BUSINESS. AN APPLICATION FOR A CERTIFICATE OF REGISTRATION MUST BE
S. 2509--A 134 A. 3009--A
SUBMITTED ELECTRONICALLY, ON A FORM PRESCRIBED BY THE COMMISSIONER, AND
MUST BE ACCOMPANIED BY A NON-REFUNDABLE APPLICATION FEE OF SIX HUNDRED
DOLLARS. A CERTIFICATE OF REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANS-
FERABLE AND SHALL BE DESTROYED IMMEDIATELY UPON SUCH PERSON CEASING TO
DO BUSINESS AS SPECIFIED IN SUCH CERTIFICATE, OR IN THE EVENT THAT SUCH
BUSINESS NEVER COMMENCED.
(II) PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL REFUND OR CREDIT
AN APPLICATION FEE PAID WITH RESPECT TO THE REGISTRATION OF AN ADULT-USE
CANNABIS BUSINESS IN THIS STATE IF, PRIOR TO THE BEGINNING OF THE PERIOD
WITH RESPECT TO WHICH SUCH REGISTRATION RELATES, THE CERTIFICATE OF
REGISTRATION DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH IS RETURNED
TO THE DEPARTMENT OR, IF SUCH CERTIFICATE HAS BEEN DESTROYED, THE OPERA-
TOR OF SUCH BUSINESS SATISFACTORILY ACCOUNTS TO THE COMMISSIONER FOR THE
MISSING CERTIFICATE, BUT SUCH BUSINESS MAY NOT SELL ADULT-USE CANNABIS
PRODUCTS IN THIS STATE DURING SUCH PERIOD, UNLESS IT IS RE-REGISTERED.
SUCH REFUND OR CREDIT SHALL BE DEEMED A REFUND OF TAX PAID IN ERROR,
PROVIDED, HOWEVER, NO INTEREST SHALL BE ALLOWED OR PAID ON ANY SUCH
REFUND.
(B) (1) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS-
TRATION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRA-
TION OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE
OFFICE OF CANNABIS MANAGEMENT OR A VALID CERTIFICATE OF AUTHORITY ISSUED
PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. THE
COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION TO ANY
APPLICANT WHERE SUCH APPLICANT:
(I) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE
HUNDRED SEVENTY-ONE-V OF THIS CHAPTER;
(II) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE, A
LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR ANY LICENSE OR REGIS-
TRATION PROVIDED FOR IN THIS CHAPTER REVOKED OR SUSPENDED WHERE SUCH
REVOCATION OR SUSPENSION WAS IN EFFECT ON THE DATE THE APPLICATION WAS
FILED OR ENDED WITHIN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION
WAS FILED;
(III) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITH-
IN ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED OR THE
CERTIFICATE WAS ISSUED, AS APPLICABLE;
(IV) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTI-
CLE;
(V) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A
REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH
IS FALSE; OR
(VI) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER
ANY TAX IMPOSED BY THIS ARTICLE.
(2) IN ADDITION TO THE GROUNDS FOR REVOCATION IN PARAGRAPH (1) OF THIS
SUBDIVISION, WHERE A PERSON WHO HOLDS A CERTIFICATE OF REGISTRATION IS A
PERSON WHO HAS POSSESSED OR SOLD ILLICIT CANNABIS: (1) SUCH REGISTRATION
SHALL BE REVOKED FOR A PERIOD OF ONE YEAR FOR THE FIRST SUCH POSSESSION
OR SALE; (2) FOR A SECOND SUCH POSSESSION OR SALE WITHIN A PERIOD OF
FIVE YEARS BY SUCH PERSON, THE REGISTRATION OF SUCH PERSON SHALL BE
REVOKED FOR A PERIOD OF THREE YEARS; (3) FOR A THIRD SUCH POSSESSION OR
SALE WITHIN A PERIOD OF FIVE YEARS BY SUCH PERSON, THE REGISTRATION OF
SUCH PERSON SHALL BE REVOKED FOR A PERIOD OF FIVE YEARS. A CERTIFICATE
OF REGISTRATION SHALL BE REVOKED PURSUANT TO THIS PARAGRAPH IMMEDIATELY
UPON SUCH PERSON'S RECEIPT OF WRITTEN NOTICE OF REVOCATION FROM THE
COMMISSIONER.
S. 2509--A 135 A. 3009--A
(C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
FIED THEREON, UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
OF THE TERM STATED ON A CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE
SHALL BE NULL AND VOID.
(D) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE
COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF-
ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE
MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
(E) EVERY HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE
SHALL BE REQUIRED TO REAPPLY PRIOR TO SUCH CERTIFICATE'S EXPIRATION,
DURING A REAPPLICATION PERIOD ESTABLISHED BY THE COMMISSIONER. SUCH
REAPPLICATION PERIOD SHALL NOT OCCUR MORE FREQUENTLY THAN EVERY TWO
YEARS. SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND
CONDITIONS AS AN INITIAL APPLICATION, INCLUDING GROUNDS FOR REFUSAL AND
THE PAYMENT OF THE APPLICATION FEE.
(F) ANY PERSON WHO IS REQUIRED TO OBTAIN A CERTIFICATE OF REGISTRATION
UNDER SUBDIVISION (A) OF THIS SECTION WHO POSSESSES ADULT-USE CANNABIS
PRODUCTS WITHOUT SUCH CERTIFICATE SHALL BE SUBJECT TO A PENALTY OF FIVE
HUNDRED DOLLARS FOR EACH MONTH OR PART THEREOF DURING WHICH ADULT-USE
CANNABIS PRODUCTS ARE POSSESSED WITHOUT SUCH CERTIFICATE, NOT TO EXCEED
TEN THOUSAND DOLLARS IN THE AGGREGATE.
§ 495. RETURNS AND PAYMENT OF TAX. (A)(I) EVERY DISTRIBUTOR ON WHOM
TAX IS IMPOSED UNDER THIS ARTICLE SHALL, ON OR BEFORE THE TWENTIETH DATE
OF EACH MONTH, FILE ELECTRONICALLY WITH THE COMMISSIONER A RETURN ON
FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL THC
CONTENT OF ADULT-USE CANNABIS PRODUCTS SUBJECT TO TAX PURSUANT TO SUBDI-
VISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND THE
TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, ALONG
WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
(II) EVERY PERSON WHO SELLS ADULT-USE CANNABIS PRODUCTS TO RETAIL
CUSTOMERS SHALL FILE ELECTRONICALLY WITH THE COMMISSIONER A RETURN ON
FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE TOTAL AMOUNT OF
TAX DUE UNDER SUBDIVISION (B) OF SECTION FOUR HUNDRED NINETY-THREE OF
THIS ARTICLE, ALONG WITH SUCH OTHER INFORMATION AS THE COMMISSIONER MAY
REQUIRE.
(B) EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL,
AT THE TIME OF FILING SUCH RETURN, PAY ELECTRONICALLY TO THE COMMISSION-
ER THE TOTAL AMOUNT OF TAX DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF
A RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY ON WHICH
THE RETURN IS REQUIRED TO BE FILED.
§ 496. RECORDS TO BE KEPT; PENALTIES. (A) RECORDS TO BE KEPT. EVERY
DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS ARTICLE AND EVERY PERSON
WHO SELLS ADULT-USE CANNABIS PRODUCTS AT RETAIL SHALL MAINTAIN COMPLETE
AND ACCURATE RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE
INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS THE TOTAL THC CONTENT OF
THE ADULT-USE CANNABIS PRODUCTS SOLD TO OR PRODUCED BY SUCH PERSON;
COMPLETE RECORDS OF EVERY RETAIL SALE OF ADULT-USE CANNABIS, AND ANY
OTHER RECORD OR INFORMATION REQUIRED BY THE COMMISSIONER. SUCH RECORDS
MUST BE PRESERVED FOR A PERIOD OF THREE YEARS AFTER THE FILING OF THE
RETURN TO WHICH SUCH RECORDS RELATE AND MUST BE PROVIDED TO THE COMMIS-
SIONER UPON REQUEST.
(B) PENALTIES. IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS ARTI-
CLE OR OTHERWISE IMPOSED BY LAW, EVERY DISTRIBUTOR ON WHOM TAX IS
IMPOSED UNDER THIS ARTICLE AND EVERY PERSON WHO SELLS ADULT-USE CANNABIS
S. 2509--A 136 A. 3009--A
PRODUCTS AT RETAIL WHO FAILS TO MAINTAIN OR MAKE AVAILABLE TO THE
COMMISSIONER THE RECORDS REQUIRED BY THIS SECTION IS SUBJECT TO A PENAL-
TY NOT TO EXCEED FIVE HUNDRED DOLLARS FOR EACH MONTH OR PART THEREOF FOR
WHICH THE FAILURE OCCURS. THIS PENALTY MAY NOT BE IMPOSED MORE THAN ONCE
FOR FAILURES FOR THE SAME MONTHLY PERIOD OR PART THEREOF. IF THE
COMMISSIONER DETERMINES THAT A FAILURE TO MAINTAIN OR MAKE AVAILABLE
RECORDS IN ANY MONTH WAS ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO
WILLFUL NEGLECT, THE COMMISSIONER MUST REMIT THE PENALTY FOR THAT MONTH.
§ 496-A. RETURNS TO BE SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER
JUDICIAL ORDER OR AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT
SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE OF THE
DEPARTMENT, OR ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS
PERMITTED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT
OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFOR-
MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON WHO
IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF THE CONTENTS OF A RETURN OR
REPORT FILED PURSUANT TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY
MANNER THE CONTENT OR ANY OTHER INFORMATION CONTAINED IN ANY RETURN OR
REPORT REQUIRED UNDER THIS ARTICLE. THE OFFICERS CHARGED WITH THE CUSTO-
DY OF SUCH RETURNS OR REPORTS SHALL NOT BE REQUIRED TO PRODUCE ANY OF
THEM OR EVIDENCE OF ANYTHING CONTAINED IN THEM IN ANY ACTION OR PRECED-
ING IN ANY COURT, EXCEPT ON BEHALF OF THE STATE, THE OFFICE OF CANNABIS
MANAGEMENT, OR THE COMMISSIONER IN AN ACTION OR PROCEEDING INVOLVING THE
COLLECTION OF TAX DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE
COMMISSIONER IS A PARTY OR A CLAIMANT OR ON BEHALF OF ANY PARTY TO ANY
ACTION OR PROCEEDING UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE
RETURNS OR THE REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED
IN SUCH ACTION OR PROCEEDING, OR IN AN ACTION OR PROCEEDING RELATED TO
THE REGULATION OR TAXATION OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF
OFFICERS TO WHOM INFORMATION SHALL HAVE BEEN SUPPLIED AS PROVIDED IN
THIS SECTION, IN ANY OF WHICH EVENTS THE COURT MAY REQUIRE THE
PRODUCTION OF, AND MAY ADMIT IN EVIDENCE SO MUCH OF SAID RETURNS OR
REPORTS OR OF THE FACTS SHOWN THEREBY AS ARE PERTINENT TO THE ACTION OR
PROCEEDING AND NO MORE. NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT
THE COMMISSIONER, IN HIS OR HER DISCRETION, FROM ALLOWING THE INSPECTION
OR DELIVERY OF A CERTIFIED COPY OF ANY RETURN OR REPORT FILED UNDER THIS
ARTICLE OR OF ANY INFORMATION CONTAINED IN ANY SUCH RETURN OR REPORT BY
OR TO A DULY AUTHORIZED OFFICER OR EMPLOYEE OF THE OFFICE OF CANNABIS
MANAGEMENT; OR BY OR TO THE ATTORNEY GENERAL OR OTHER LEGAL REPRESEN-
TATIVES OF THE STATE WHEN AN ACTION SHALL HAVE BEEN RECOMMENDED OR
COMMENCED PURSUANT TO THIS CHAPTER IN WHICH SUCH RETURNS OR REPORTS OR
THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED; OR THE INSPECTION OF THE
RETURNS OR REPORTS REQUIRED UNDER THIS ARTICLE BY THE COMPTROLLER OR
DULY DESIGNATED OFFICER OR EMPLOYEE OF THE STATE DEPARTMENT OF AUDIT AND
CONTROL, FOR PURPOSES OF THE AUDIT OF A REFUND OF ANY TAX PAID BY ANY
PERSON UNDER THIS ARTICLE; NOR TO PROHIBIT THE DELIVERY TO SUCH PERSON
OR A DULY AUTHORIZED REPRESENTATIVE OF SUCH PERSON, A CERTIFIED COPY OF
ANY RETURN OR REPORT FILED BY SUCH PERSON PURSUANT TO THIS ARTICLE, NOR
TO PROHIBIT THE PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT
THE IDENTIFICATION OF PARTICULAR RETURNS OR REPORTS AND THE ITEMS THERE-
OF. THIS SECTION SHALL ALSO NOT BE CONSTRUED TO PROHIBIT THE DISCLOSURE,
FOR TAX ADMINISTRATION PURPOSES, TO THE DIVISION OF THE BUDGET AND THE
OFFICE OF THE STATE COMPTROLLER, OF INFORMATION AGGREGATED FROM THE
RETURNS FILED BY ALL PERSONS SUBJECT TO THE TAXES IMPOSED BY THE ARTI-
CLE, WHETHER THE NUMBER OF SUCH PERSONS IS ONE OR MORE.
S. 2509--A 137 A. 3009--A
(B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE APPRO-
PRIATE OFFICERS OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR
THE DULY AUTHORIZED REPRESENTATIVES OF ANY SUCH OFFICERS, TO INSPECT
RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE, OR MAY FURNISH TO SUCH
OTHER OFFICERS, OR THEIR DULY AUTHORIZED REPRESENTATIVES, A COPY OF ANY
SUCH RETURN OR REPORT OR AN ABSTRACT OF THE INFORMATION THEREIN
CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY ANY SUCH OFFICERS OR
SUCH REPRESENTATIVES WITH INFORMATION RELATING TO THE BUSINESS OF A
PERSON MAKING RETURNS OR REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX
ADMINISTRATION. THE COMMISSIONER MAY REFUSE TO SUPPLY INFORMATION PURSU-
ANT TO THIS SUBDIVISION TO THE OFFICERS OF ANY OTHER STATE IF THE STAT-
UTES OF THE STATE REPRESENTED BY SUCH OFFICERS DO NOT GRANT SUBSTANTIAL-
LY SIMILAR PRIVILEGES TO THE COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE
MANDATORY. INFORMATION SHALL NOT BE SUPPLIED TO THE OFFICERS OF ANY
STATE THAT REGULATES OR TAXES CANNABIS, OR THEIR DULY AUTHORIZED REPRE-
SENTATIVES OF ANY SUCH OFFICERS, UNLESS SUCH OFFICER OR OTHER REPRESEN-
TATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY MANNER THE
INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT SUCH INFORMATION
TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY, WHO IN TURN
SHALL BE SUBJECT TO THE SAME RESTRICTIONS AS THOSE HEREBY IMPOSED UPON
SUCH OFFICER OR OTHER REPRESENTATIVES.
(C)(1) ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
PROVISIONS OF SUBDIVISION (A) OR (B) OF THIS SECTION SHALL BE DISMISSED
FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE
FOR A PERIOD OF FIVE YEARS THEREAFTER.
(2) FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
§ 496-B. ADMINISTRATIVE PROVISIONS. (A)(1) THE PROVISIONS OF ARTICLE
TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY TO THE TAX IMPOSED BY SUBDIVI-
SION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN THE
SAME MANNER AND WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE OF
SUCH ARTICLE HAD BEEN INCORPORATED IN FULL INTO THIS SECTION AND HAD
EXPRESSLY REFERRED TO THE TAX IMPOSED BY THIS ARTICLE, EXCEPT TO THE
EXTENT THAT ANY PROVISION OF SUCH ARTICLE IS EITHER INCONSISTENT WITH A
PROVISION OF THIS ARTICLE OR IS NOT RELEVANT TO THIS ARTICLE.
(2) THE TAX IMPOSED BY SUBDIVISION (B) OF SECTION FOUR HUNDRED NINE-
TY-THREE OF THIS ARTICLE SHALL BE ADMINISTERED AND COLLECTED IN A LIKE
MANNER AS AND JOINTLY WITH THE TAXES IMPOSED BY SECTIONS ELEVEN HUNDRED
FIVE AND ELEVEN HUNDRED TEN OF THIS CHAPTER. IN ADDITION, EXCEPT AS
OTHERWISE PROVIDED IN THIS ARTICLE, ALL OF THE PROVISIONS OF ARTICLE
TWENTY-EIGHT OF THIS CHAPTER (EXCEPT SECTIONS ELEVEN HUNDRED SEVEN,
ELEVEN HUNDRED EIGHT, ELEVEN HUNDRED NINE, AND ELEVEN HUNDRED FORTY-
EIGHT) RELATING TO OR APPLICABLE TO THE ADMINISTRATION, COLLECTION AND
REVIEW OF THE TAXES IMPOSED BY SUCH SECTIONS ELEVEN HUNDRED FIVE AND
ELEVEN HUNDRED TEN, INCLUDING, BUT NOT LIMITED TO, THE PROVISIONS RELAT-
ING TO DEFINITIONS, RETURNS, EXEMPTIONS, PENALTIES, PERSONAL LIABILITY
FOR THE TAX, AND COLLECTION OF TAX FROM THE CUSTOMER, SHALL APPLY TO THE
TAXES IMPOSED BY THIS ARTICLE SO FAR AS SUCH PROVISIONS CAN BE MADE
APPLICABLE TO THE TAXES IMPOSED BY THIS ARTICLE WITH SUCH LIMITATIONS AS
SET FORTH IN FULL IN THIS ARTICLE AND SUCH MODIFICATIONS AS MAY BE
NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE TAXES SO IMPOSED. SUCH
PROVISIONS SHALL APPLY WITH THE SAME FORCE AND EFFECT AS IF THE LANGUAGE
OF THOSE PROVISIONS HAD BEEN SET FORTH IN FULL EXCEPT TO THE EXTENT THAT
ANY PROVISION IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR
IS NOT RELEVANT TO THE TAXES IMPOSED BY THIS ARTICLE.
(B)(1) ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF
S. 2509--A 138 A. 3009--A
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS
CHAPTER, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE
RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
BY THE COMPTROLLER TO THE CREDIT OF THE CANNABIS REVENUE FUND ESTAB-
LISHED BY SECTION NINETY-NINE-II OF THE STATE FINANCE LAW. OF THE TOTAL
REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL
RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-
FOUR OF THIS ARTICLE, BEFORE DEPOSIT INTO THE CANNABIS REVENUE FUND
DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-
ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND DISTRIBUTE THE
TAXES IMPOSED BY THIS ARTICLE.
§ 496-C. ILLICIT CANNABIS PENALTY. (A) IN ADDITION TO ANY OTHER CIVIL
OR CRIMINAL PENALTIES THAT MAY APPLY, ANY PERSON IN POSSESSION OF OR
HAVING CONTROL OVER ILLICIT CANNABIS, AS DEFINED IN SECTION FOUR HUNDRED
NINETY-TWO OF THIS ARTICLE, AFTER NOTICE AND AN OPPORTUNITY FOR A HEAR-
ING, SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT LESS THAN FOUR HUNDRED
DOLLARS PER OUNCE OF ILLICIT CANNABIS FLOWER, TEN DOLLARS PER MILLIGRAM
OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, ONE HUNDRED
DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT
CANNABIS CONCENTRATE, AND ONE THOUSAND DOLLARS PER ILLICIT CANNABIS
PLANT, BUT NOT TO EXCEED EIGHT HUNDRED DOLLARS PER OUNCE OF ILLICIT
CANNABIS FLOWER, TWENTY DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY
ILLICIT CANNABIS EDIBLE PRODUCT, TWO HUNDRED DOLLARS PER GRAM OF THE
TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS CONCENTRATE, AND
TWO THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT FOR A FIRST VIOLATION,
AND FOR A SECOND AND SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A
PRIOR VIOLATION SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT LESS THAN
EIGHT HUNDRED DOLLARS PER OUNCE OF ILLICIT CANNABIS FLOWER, TWENTY
DOLLARS PER MILLIGRAM OF THE TOTAL WEIGHT OF ANY ILLICIT CANNABIS EDIBLE
PRODUCT, TWO HUNDRED DOLLARS PER GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT
CONTAINING ILLICIT CANNABIS CONCENTRATE, AND TWO THOUSAND DOLLARS PER
ILLICIT CANNABIS PLANT, BUT NOT TO EXCEED ONE THOUSAND DOLLARS PER OUNCE
OF ILLICIT CANNABIS FLOWER, FORTY DOLLARS PER MILLIGRAM OF THE TOTAL
WEIGHT OF ANY ILLICIT CANNABIS EDIBLE PRODUCT, FOUR HUNDRED DOLLARS PER
GRAM OF THE TOTAL WEIGHT OF ANY PRODUCT CONTAINING ILLICIT CANNABIS
CONCENTRATE, AND FOUR THOUSAND DOLLARS PER ILLICIT CANNABIS PLANT.
(B) NO ENFORCEMENT ACTION TAKEN UNDER THIS SECTION SHALL BE CONSTRUED
TO LIMIT ANY OTHER CRIMINAL OR CIVIL LIABILITY OF ANYONE IN POSSESSION
OF ILLICIT CANNABIS.
(C) THE PENALTY IMPOSED BY THIS SECTION SHALL NOT APPLY TO PERSONS IN
POSSESSION OF LESS THAN TWO OUNCES OF ADULT-USE CANNABIS OR TEN GRAMS OF
CONCENTRATED CANNABIS.
§ 38. Subparagraph (A) of paragraph 1 of subdivision (a) of section
1115 of the tax law, as amended by section 1 of part CCC of chapter 59
of the laws of 2019, is amended to read as follows:
(A) Food, food products, beverages, dietary foods and health supple-
ments, sold for human consumption but not including (i) candy and
confectionery, (ii) fruit drinks which contain less than seventy percent
of natural fruit juice, (iii) soft drinks, sodas and beverages such as
are ordinarily dispensed at soda fountains or in connection therewith
(other than coffee, tea and cocoa) [and], (iv) beer, wine or other alco-
holic beverages, AND (V) ADULT-USE CANNABIS PRODUCTS AS DEFINED IN ARTI-
S. 2509--A 139 A. 3009--A
CLE TWENTY-C OF THIS CHAPTER, all of which shall be subject to the
retail sales and compensating use taxes, whether or not the item is sold
in liquid form. Nothing in this subparagraph shall be construed as
exempting food or drink from the tax imposed under subdivision (d) of
section eleven hundred five of this article.
§ 39. Intentionally omitted.
§ 39-a. Paragraph 3 of subdivision (a) of section 1115 of the tax law,
as amended by chapter 201 of the laws of 1976, is amended to read as
follows:
(3) Drugs and medicines intended for use, internally or externally, in
the cure, mitigation, treatment or prevention of illnesses or diseases
in human beings, medical equipment (including component parts thereof)
and supplies required for such use or to correct or alleviate physical
incapacity, and products consumed by humans for the preservation of
health but not including: (I) cosmetics or toilet articles notwithstand-
ing the presence of medicinal ingredients therein [or]; (II) medical
equipment (including component parts thereof) and supplies, other than
such drugs and medicines, purchased at retail for use in performing
medical and similar services for compensation; AND (III) ADULT-USE
CANNABIS PRODUCTS, AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER.
§ 39-b. Section 471 of the tax law is amended by adding a new subdivi-
sion 7 to read as follows:
7. THE TAXES IMPOSED UNDER THIS SECTION SHALL NOT APPLY TO ADULT-USE
CANNABIS PRODUCTS SUBJECT TO TAX UNDER ARTICLE TWENTY-C OF THIS CHAPTER.
§ 39-c. Section 1181 of the tax law, as added by section 1 of part UU
of chapter 59 of the laws of 2019, is amended to read as follows:
§ 1181. Imposition of tax. In addition to any other tax imposed by
this chapter or other law, there is hereby imposed a tax of twenty
percent on receipts from the retail sale of vapor products sold in this
state. The tax is imposed on the purchaser and collected by the vapor
products dealer as defined in subdivision (b) of section eleven hundred
eighty of this article, in trust for and on account of the state. THE
TAXES IMPOSED UNDER THIS SECTION SHALL NOT APPLY TO ADULT-USE CANNABIS
PRODUCTS SUBJECT TO TAX UNDER ARTICLE TWENTY-C OF THIS CHAPTER.
§ 39-d. Subdivision (b) of section 1116 of the tax law is amended by
adding a new paragraph 8 to read as follows:
8. NOTHING IN THIS SECTION SHALL EXEMPT PURCHASES OR SALES OF ADULT-
USE CANNABIS PRODUCTS, AS DEFINED BY ARTICLE TWENTY-C OF THIS CHAPTER,
BY AN ORGANIZATION DESCRIBED IN PARAGRAPHS FOUR, FIVE, SEVEN, EIGHT, AND
NINE OF SUBDIVISION (A) OF THIS SECTION.
§ 40. Section 12 of chapter 90 of the laws of 2014 amending the public
health law, the tax law, the state finance law, the general business
law, the penal law and the criminal procedure law relating to medical
use of marihuana, is amended to read as follows:
§ 12. This act shall take effect immediately [and]; PROVIDED, HOWEVER
THAT SECTIONS ONE, THREE, FIVE, SEVEN-A, EIGHT, NINE, TEN AND ELEVEN OF
THIS ACT shall expire and be deemed repealed [seven] FOURTEEN years
after such date; provided that SECTIONS 490 AND 491 OF THE TAX LAW SHALL
EXPIRE AND BE DEEMED REPEALED FOURTEEN YEARS AFTER SUCH DATE AND THAT
the amendments to section 171-a of the tax law made by section seven of
this act shall take effect on the same date and in the same manner as
section 54 of part A of chapter 59 of the laws of 2014 takes effect AND
SHALL NOT EXPIRE AND BE DEEMED REPEALED; and provided, further, that the
amendments to subdivision 5 of section 410.91 of the criminal procedure
law made by section eleven of this act shall not affect the expiration
S. 2509--A 140 A. 3009--A
and repeal of such section and shall expire and be deemed repealed ther-
ewith.
§ 41. The office of cannabis management, in consultation with the
division of the budget, the department of taxation and finance and the
department of health shall conduct a study of the effectiveness of this
act. Such study shall examine all aspects of the program, including the
economic and fiscal aspects of the program, the impact of the program on
the public health and safety of New York residents and the progress made
in achieving social justice goals and toward eliminating the illegal
market for cannabis products in New York. The office shall make recom-
mendations regarding the appropriate level of taxation as well as any
recommended changes to the taxation and regulatory structure of the
program. In addition, the office shall also recommend changes, if any,
necessary to improve and protect the public health and safety of New
Yorkers. Such study shall be conducted two years after the effective
date of this act and shall be presented to the governor, the temporary
president of the senate and the speaker of the assembly, no later than
October 1, 2024.
§ 42. Section 102 of the alcoholic beverage control law is amended by
adding a new subdivision 8 to read as follows:
8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
OR POSSESS A LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES
WHERE ALCOHOLIC BEVERAGES ARE SOLD.
§ 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the
general obligations law, as added by chapter 406 of the laws of 2000,
are amended to read as follows:
1. "Illegal drug" means any controlled substance [or marijuana] the
possession of which is an offense under the public health law or the
penal law.
4. "Grade one violation" means possession of one-quarter ounce or
more, but less than four ounces, or distribution of less than one ounce
of an illegal drug [other than marijuana, or possession of one pound or
twenty-five plants or more, but less than four pounds or fifty plants,
or distribution of less than one pound of marijuana].
5. "Grade two violation" means possession of four ounces or more, but
less than eight ounces, or distribution of one ounce or more, but less
than two ounces, of an illegal drug [other than marijuana, or possession
of four pounds or more or fifty plants or distribution of more than one
pound but less than ten pounds of marijuana].
6. "Grade three violation" means possession of eight ounces or more,
but less than sixteen ounces, or distribution of two ounces or more, but
less than four ounces, of a specified illegal drug [or possession of
eight pounds or more or seventy-five plants or more, but less than
sixteen pounds or one hundred plants, or distribution of more than five
pounds but less than ten pounds of marijuana].
7. "Grade four violation" means possession of sixteen ounces or more
or distribution of four ounces or more of a specified illegal drug [or
possession of sixteen pounds or more or one hundred plants or more or
distribution of ten pounds or more of marijuana].
13. "Drug trafficker" means a person convicted of a class A or class B
felony controlled substance [or marijuana offense] who, in connection
with the criminal conduct for which he or she stands convicted,
possessed, distributed, sold or conspired to sell a controlled substance
[or marijuana] which, by virtue of its quantity, the person's prominent
role in the enterprise responsible for the sale or distribution of such
controlled substance and other circumstances related to such criminal
S. 2509--A 141 A. 3009--A
conduct indicate that such person's criminal possession, sale or
conspiracy to sell such substance was not an isolated occurrence and was
part of an ongoing pattern of criminal activity from which such person
derived substantial income or resources and in which such person played
a leadership role.
§ 44. Paragraph (g) of subdivision 1 of section 488 of the social
services law, as added by section 1 of part B of chapter 501 of the laws
of 2012, is amended to read as follows:
(g) "Unlawful use or administration of a controlled substance," which
shall mean any administration by a custodian to a service recipient of:
a controlled substance as defined by article thirty-three of the public
health law, without a prescription; or other medication not approved for
any use by the federal food and drug administration, EXCEPT FOR THE
ADMINISTRATION OF MEDICAL CANNABIS WHEN SUCH ADMINISTRATION IS IN
ACCORDANCE WITH ARTICLE THREE OF THE CANNABIS LAW AND ANY REGULATIONS
PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS, POLICIES, OR
PROCEDURES OF THE STATE OVERSIGHT AGENCY OR AGENCIES GOVERNING SUCH
CUSTODIANS. It also shall include a custodian unlawfully using or
distributing a controlled substance as defined by article thirty-three
of the public health law, at the workplace or while on duty.
§ 44-a. Subdivision 1 of section 151 of the social services law, as
amended by section 2 of part F of chapter 58 of the laws of 2014, is
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 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
hundred eleven of the racing, pari-mutuel wagering and breeding law;
[or] (g) LICENSED TO OPERATE AN ADULT-USE CANNABIS RETAIL DISPENSARY
PURSUANT TO THE CANNABIS LAW: OR (H) providing adult-oriented enter-
tainment in which performers disrobe or perform in an unclothed state
for entertainment, 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 ther-
eof, as and for public assistance.
§ 44-b. Subdivision 3 of section 151 of the social services law is
amended by adding a new paragraph (d) to read as follows:
(D) A VIOLATION OF THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION
TAKING PLACE AT THE LICENSED PREMISES BY A PERSON, FIRM, ESTABLISHMENT,
ENTITY OR CORPORATION LICENSED PURSUANT TO THE CANNABIS LAW TO OPERATE
AN ADULT-USE CANNABIS RETAIL DISPENSARY SHALL SUBJECT SUCH PERSON, FIRM,
ESTABLISHMENT, ENTITY OR CORPORATION TO PENALTIES AND INJUNCTIONS PURSU-
ANT TO SECTION SIXTEEN OF ARTICLE TWO OF THE CANNABIS LAW.
§ 45. Paragraphs (e) and (f) of subdivision 1 of section 490 of the
social services law, as added by section 1 of part B of chapter 501 of
the laws of 2012, are amended and a new paragraph (g) is added to read
as follows:
S. 2509--A 142 A. 3009--A
(e) information regarding individual reportable incidents, incident
patterns and trends, and patterns and trends in the reporting and
response to reportable incidents is shared, consistent with applicable
law, with the justice center, in the form and manner required by the
justice center and, for facilities or provider agencies that are not
state operated, with the applicable state oversight agency which shall
provide such information to the justice center; [and]
(f) incident review committees are established; provided, however,
that the regulations may authorize an exemption from this requirement,
when appropriate, based on the size of the facility or provider agency
or other relevant factors. Such committees shall be composed of members
of the governing body of the facility or provider agency and other
persons identified by the director of the facility or provider agency,
including some members of the following: direct support staff, licensed
health care practitioners, service recipients and representatives of
family, consumer and other advocacy organizations, but not the director
of the facility or provider agency. Such committee shall meet regularly
to: (i) review the timeliness, thoroughness and appropriateness of the
facility or provider agency's responses to reportable incidents; (ii)
recommend additional opportunities for improvement to the director of
the facility or provider agency, if appropriate; (iii) review incident
trends and patterns concerning reportable incidents; and (iv) make
recommendations to the director of the facility or provider agency to
assist in reducing reportable incidents. Members of the committee shall
be trained in confidentiality laws and regulations, and shall comply
with section seventy-four of the public officers law[.]; AND
(G) SAFE STORAGE, ADMINISTRATION, AND DIVERSION PREVENTION POLICIES
REGARDING CONTROLLED SUBSTANCES AND MEDICAL CANNABIS.
§ 46. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal
law, as added by chapter 90 of the laws of 2014, are amended to read as
follows:
§ 179.00 Criminal diversion of medical [marihuana] CANNABIS; defi-
nitions.
The following definitions are applicable to this article:
1. "Medical [marihuana] CANNABIS" means medical [marihuana] CANNABIS
as defined in [subdivision eight of section thirty-three hundred sixty
of the public health law] SECTION THREE OF THE CANNABIS LAW.
2. "Certification" means a certification, made under section [thirty-
three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS
LAW.
§ 179.05 Criminal diversion of medical [marihuana] CANNABIS; limita-
tions.
The provisions of this article shall not apply to:
1. a practitioner authorized to issue a certification who acted in
good faith in the lawful course of his or her profession; or
2. a registered organization as that term is defined in [subdivision
nine of section thirty-three hundred sixty of the public health law]
SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith in the
lawful course of the practice of pharmacy; or
3. a person who acted in good faith seeking treatment for A medical
condition or assisting another person to obtain treatment for a medical
condition.
§ 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first
degree.
A person is guilty of criminal diversion of medical [marihuana] CANNA-
BIS in the first degree when he or she is a practitioner, as that term
S. 2509--A 143 A. 3009--A
is defined in [subdivision twelve of section thirty-three hundred sixty
of the public health law] SECTION THREE OF THE CANNABIS LAW, who issues
a certification with knowledge of reasonable grounds to know that (i)
the recipient has no medical need for it, or (ii) it is for a purpose
other than to treat a serious condition as defined in [subdivision seven
of section thirty-three hundred sixty of the public health law] SECTION
THREE OF THE CANNABIS LAW.
Criminal diversion of medical [marihuana] CANNABIS in the first degree
is a class E felony.
§ 179.11 Criminal diversion of medical [marihuana] CANNABIS in the
second degree.
A person is guilty of criminal diversion of medical [marihuana] CANNA-
BIS in the second degree when he or she sells, trades, delivers, or
otherwise provides medical [marihuana] CANNABIS to another with know-
ledge or reasonable grounds to know that the recipient is not registered
under [title five-A of article thirty-three of the public health law]
ARTICLE THREE OF THE CANNABIS LAW.
Criminal diversion of medical [marihuana] CANNABIS in the second
degree is a class B misdemeanor.
§ 179.15 Criminal retention of medical [marihuana] CANNABIS.
A person is guilty of criminal retention of medical [marihuana] CANNA-
BIS when, being a certified patient or designated caregiver, as those
terms are defined in [subdivisions three and five of section thirty-
three hundred sixty of the public health law, respectively] SECTION
THREE OF THE CANNABIS LAW, he or she knowingly obtains, possesses,
stores or maintains an amount of [marihuana] CANNABIS in excess of the
amount he or she is authorized to possess under the provisions of [title
five-A of article thirty-three of the public health law] ARTICLE THREE
OF THE CANNABIS LAW.
Criminal retention of medical [marihuana] CANNABIS is a class A misde-
meanor.
§ 47. Section 220.78 of the penal law, as added by chapter 154 of the
laws of 2011, is amended to read as follows:
§ 220.78 Witness or victim of drug or alcohol overdose.
1. A person who, in good faith, seeks health care for someone who is
experiencing a drug or alcohol overdose or other life threatening
medical emergency shall not be charged or prosecuted for a controlled
substance offense under article two hundred twenty or a [marihuana]
CANNABIS offense under article two hundred twenty-one of this title,
other than an offense involving sale for consideration or other benefit
or gain, or charged or prosecuted for possession of alcohol by a person
under age twenty-one years under section sixty-five-c of the alcoholic
beverage control law, or for possession of drug paraphernalia under
article thirty-nine of the general business law, with respect to any
controlled substance, [marihuana] CANNABIS, alcohol or paraphernalia
that was obtained as a result of such seeking or receiving of health
care.
2. A person who is experiencing a drug or alcohol overdose or other
life threatening medical emergency and, in good faith, seeks health care
for himself or herself or is the subject of such a good faith request
for health care, shall not be charged or prosecuted for a controlled
substance offense under this article or a [marihuana] CANNABIS offense
under article two hundred twenty-one of this title, other than an
offense involving sale for consideration or other benefit or gain, or
charged or prosecuted for possession of alcohol by a person under age
twenty-one years under section sixty-five-c of the alcoholic beverage
S. 2509--A 144 A. 3009--A
control law, or for possession of drug paraphernalia under article thir-
ty-nine of the general business law, with respect to any substance,
[marihuana] CANNABIS, alcohol or paraphernalia that was obtained as a
result of such seeking or receiving of health care.
3. Definitions. As used in this section the following terms shall have
the following meanings:
(a) "Drug or alcohol overdose" or "overdose" means an acute condition
including, but not limited to, physical illness, coma, mania, hysteria
or death, which is the result of consumption or use of a controlled
substance or alcohol and relates to an adverse reaction to or the quan-
tity of the controlled substance or alcohol or a substance with which
the controlled substance or alcohol was combined; provided that a
patient's condition shall be deemed to be a drug or alcohol overdose if
a prudent layperson, possessing an average knowledge of medicine and
health, could reasonably believe that the condition is in fact a drug or
alcohol overdose and (except as to death) requires health care.
(b) "Health care" means the professional services provided to a person
experiencing a drug or alcohol overdose by a health care professional
licensed, registered or certified under title eight of the education law
or article thirty of the public health law who, acting within his or her
lawful scope of practice, may provide diagnosis, treatment or emergency
services for a person experiencing a drug or alcohol overdose.
4. It shall be an affirmative defense to a criminal sale controlled
substance offense under this article or a criminal sale of [marihuana]
CANNABIS offense under article two hundred twenty-one of this title, not
covered by subdivision one or two of this section, with respect to any
controlled substance or [marihuana] CANNABIS which was obtained as a
result of such seeking or receiving of health care, that:
(a) the defendant, in good faith, seeks health care for someone or for
him or herself who is experiencing a drug or alcohol overdose or other
life threatening medical emergency; and
(b) the defendant has no prior conviction for the commission or
attempted commission of a class A-I, A-II or B felony under this arti-
cle.
5. Nothing in this section shall be construed to bar the admissibility
of any evidence in connection with the investigation and prosecution of
a crime with regard to another defendant who does not independently
qualify for the bar to prosecution or for the affirmative defense; nor
with regard to other crimes committed by a person who otherwise quali-
fies under this section; nor shall anything in this section be construed
to bar any seizure pursuant to law, including but not limited to pursu-
ant to section thirty-three hundred eighty-seven of the public health
law.
6. The bar to prosecution described in subdivisions one and two of
this section shall not apply to the prosecution of a class A-I felony
under this article, and the affirmative defense described in subdivision
four of this section shall not apply to the prosecution of a class A-I
or A-II felony under this article.
§ 48. Subdivision 1 of section 260.20 of the penal law, as amended by
chapter 362 of the laws of 1992, is amended as follows:
1. He knowingly permits a child less than eighteen years old to enter
or remain in or upon a place, premises or establishment where sexual
activity as defined by article one hundred thirty, two hundred thirty or
two hundred sixty-three of this [chapter] PART or activity involving
controlled substances as defined by article two hundred twenty of this
[chapter or involving marihuana as defined by article two hundred twen-
S. 2509--A 145 A. 3009--A
ty-one of this chapter] PART is maintained or conducted, and he knows or
has reason to know that such activity is being maintained or conducted;
or
§ 49. Section 89-h of the state finance law, as added by chapter 90 of
the laws of 2014, is amended to read as follows:
§ 89-h. Medical [marihuana] CANNABIS trust fund. 1. There is hereby
established in the joint custody of the state comptroller and the
commissioner of taxation and finance a special fund to be known as the
"medical [marihuana] CANNABIS trust fund."
2. The medical [marihuana] CANNABIS trust fund shall consist of all
moneys required to be deposited in the medical [marihuana] CANNABIS
trust fund pursuant to the provisions of section four hundred ninety of
the tax law.
3. The moneys in the medical [marihuana] CANNABIS trust fund shall be
kept separate and shall not be commingled with any other moneys in the
custody of the commissioner of taxation and finance and the state comp-
troller.
4. The moneys of the medical [marihuana] CANNABIS trust fund, follow-
ing appropriation by the legislature, shall be allocated upon a certif-
icate of approval of availability by the director of the budget as
follows: (a) Twenty-two and five-tenths percent of the monies shall be
transferred to the counties in New York state in which the medical
[marihuana] CANNABIS was manufactured and allocated in proportion to the
gross sales originating from medical [marihuana] CANNABIS manufactured
in each such county; (b) twenty-two and five-tenths percent of the
moneys shall be transferred to the counties in New York state in which
the medical [marihuana] CANNABIS was dispensed and allocated in propor-
tion to the gross sales occurring in each such county; (c) five percent
of the monies shall be transferred to the office of [alcoholism and
substance abuse services] ADDICTION SERVICES AND SUPPORTS, which shall
use that revenue for additional drug abuse prevention, counseling and
treatment services; [and] (d) five percent of the revenue received by
the department shall be transferred to the division of criminal justice
services, which shall use that revenue for a program of discretionary
grants to state and local law enforcement agencies that demonstrate a
need relating to [title five-A of article thirty-three of the public
health law] ARTICLE THREE OF THE CANNABIS LAW; said grants could be used
for personnel costs of state and local law enforcement agencies[.]; AND
(E) FORTY-FIVE PERCENT OF THE MONIES SHALL BE TRANSFERRED TO THE NEW
YORK STATE CANNABIS REVENUE FUND. For purposes of this subdivision, the
city of New York shall be deemed to be a county.
§ 50. The state finance law is amended by adding a new section 99-ii
to read as follows:
§ 99-II. NEW YORK STATE CANNABIS REVENUE FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
"NEW YORK STATE CANNABIS REVENUE FUND" (THE "FUND").
2. MONIES IN THE FUND SHALL BE KEPT SEPARATE FROM AND SHALL NOT BE
COMMINGLED WITH ANY OTHER MONIES IN THE CUSTODY OF THE COMPTROLLER OR
THE COMMISSIONER OF TAXATION AND FINANCE. PROVIDED, HOWEVER THAT ANY
MONIES OF THE FUND NOT REQUIRED FOR IMMEDIATE USE MAY, AT THE DISCRETION
OF THE COMPTROLLER, IN CONSULTATION WITH THE DIRECTOR OF THE BUDGET, BE
INVESTED BY THE COMPTROLLER IN OBLIGATIONS OF THE UNITED STATES OR THE
STATE. THE PROCEEDS OF ANY SUCH INVESTMENT SHALL BE RETAINED BY THE FUND
AS ASSETS TO BE USED FOR PURPOSES OF THE FUND.
S. 2509--A 146 A. 3009--A
3. EXCEPT AS SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS SECTION,
MONIES FROM THE FUND SHALL NOT BE USED TO MAKE PAYMENTS FOR ANY PURPOSE
OTHER THAN THE PURPOSES SET FORTH IN SUBDIVISIONS TWO AND FOUR OF THIS
SECTION.
4. THE "NEW YORK STATE CANNABIS REVENUE FUND" SHALL CONSIST OF MONIES
RECEIVED BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO SUBDI-
VISIONS (A) AND (B) OF SECTION FOUR HUNDRED NINETY-THREE OF THE TAX LAW
AND ALL OTHER MONIES CREDITED OR TRANSFERRED THERETO FROM ANY OTHER FUND
OR SOURCE. SUCH MONIES SHALL FIRST BE ALLOCATED TO THE "CANNABIS SOCIAL
EQUITY FUND" ESTABLISHED PURSUANT TO A CHAPTER OF THE LAWS OF TWO THOU-
SAND TWENTY-ONE THAT ESTABLISHED SUCH FUND, ACCORDING TO THE FOLLOWING
SCHEDULE: TEN MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-TWO--
TWO THOUSAND TWENTY-THREE; TWENTY MILLION DOLLARS IN FISCAL YEAR TWO
THOUSAND TWENTY-THREE--TWO THOUSAND TWENTY-FOUR; THIRTY MILLION DOLLARS
IN FISCAL YEAR TWO THOUSAND TWENTY-FOUR--TWO THOUSAND TWENTY-FIVE; FORTY
MILLION DOLLARS IN FISCAL YEAR TWO THOUSAND TWENTY-FIVE--TWO THOUSAND
TWENTY-SIX; AND FIFTY MILLION DOLLARS IN EACH FISCAL YEAR THEREAFTER.
ALL REMAINING MONIES SHALL BE EXPENDED FOR THE FOLLOWING PURPOSES:
ADMINISTRATION OF THE REGULATED CANNABIS PROGRAM, DATA GATHERING, MONI-
TORING AND REPORTING, THE GOVERNOR'S TRAFFIC SAFETY COMMITTEE, IMPLEMEN-
TATION AND ADMINISTRATION OF THE INITIATIVES AND PROGRAMS OF THE SOCIAL
AND ECONOMIC EQUITY PLAN IN THE OFFICE OF CANNABIS MANAGEMENT, SUBSTANCE
ABUSE, HARM REDUCTION AND MENTAL HEALTH TREATMENT AND PREVENTION, PUBLIC
HEALTH EDUCATION AND INTERVENTION, RESEARCH ON CANNABIS USES AND APPLI-
CATIONS, PROGRAM EVALUATION AND IMPROVEMENTS, AND ANY OTHER IDENTIFIED
PURPOSE RECOMMENDED BY THE EXECUTIVE DIRECTOR OF THE OFFICE OF CANNABIS
MANAGEMENT AND APPROVED BY THE DIRECTOR OF THE BUDGET.
5.THE MONEYS IN THE "CANNABIS SOCIAL EQUITY FUND" SHALL BE ADMINIS-
TERED BY THE URBAN DEVELOPMENT CORPORATION AND ALLOCATED BY THE DEPART-
MENT OF STATE IN COLLABORATION WITH THE OFFICE OF CHILDREN AND FAMILY
SERVICES, THE DEPARTMENT OF LABOR, THE DEPARTMENT OF HEALTH, THE DIVI-
SION OF HOUSING AND COMMUNITY RENEWAL, AND THE OFFICE OF ADDICTION
SERVICES, AND APPROVED BY THE DIRECTOR OF THE DIVISION OF THE BUDGET, TO
PROVIDE GRANTS FOR QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS AND
APPROVED LOCAL GOVERNMENT ENTITIES FOR THE PURPOSE OF REINVESTING IN
COMMUNITIES DISPROPORTIONATELY AFFECTED BY PAST FEDERAL AND STATE DRUG
POLICIES. SUCH GRANTS SHALL BE USED, INCLUDING BUT NOT LIMITED TO, TO
SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT EDUCATION, MENTAL
HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, HOUSING, FINANCIAL
LITERACY, COMMUNITY BANKING, NUTRITION SERVICES, SERVICES TO ADDRESS
ADVERSE CHILDHOOD EXPERIENCES, AFTERSCHOOL AND CHILD CARE SERVICES,
SYSTEM NAVIGATION SERVICES, LEGAL SERVICES TO ADDRESS BARRIERS TO
REENTRY, INCLUDING, BUT NOT LIMITED TO, PROVIDING REPRESENTATION AND
RELATED ASSISTANCE WITH EXPUNGEMENT, VACATUR, SUBSTITUTION AND RESEN-
TENCING OF MARIHUANA-RELATED CONVICTIONS, AND LINKAGES TO MEDICAL CARE,
WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-BASED SUPPORTIVE SERVICES.
THE GRANTS FROM THIS PROGRAM MAY ALSO BE USED TO FURTHER SUPPORT THE
SOCIAL AND ECONOMIC EQUITY PROGRAM CREATED BY ARTICLE FOUR OF THE CANNA-
BIS LAW AND AS ESTABLISHED BY THE CANNABIS CONTROL BOARD.
§ 51. Subdivision 2 of section 3371 of the public health law, as
amended by chapter 90 of the laws of 2014, is amended to read as
follows:
2. The prescription monitoring program registry may be accessed, under
such terms and conditions as are established by the department for
purposes of maintaining the security and confidentiality of the informa-
tion contained in the registry, by:
S. 2509--A 147 A. 3009--A
(a) a practitioner, or a designee authorized by such practitioner
pursuant to paragraph (b) of subdivision two of section thirty-three
hundred forty-three-a [or section thirty-three hundred sixty-one] of
this article, for the purposes of: (i) informing the practitioner that a
patient may be under treatment with a controlled substance by another
practitioner; (ii) providing the practitioner with notifications of
controlled substance activity as deemed relevant by the department,
including but not limited to a notification made available on a monthly
or other periodic basis through the registry of controlled substances
activity pertaining to his or her patient; (iii) allowing the practi-
tioner, through consultation of the prescription monitoring program
registry, to review his or her patient's controlled substances history
as required by section thirty-three hundred forty-three-a [or section
thirty-three hundred sixty-one] of this article; and (iv) providing to
his or her patient, or person authorized pursuant to paragraph (j) of
subdivision one of this section, upon request, a copy of such patient's
controlled substance history as is available to the practitioner through
the prescription monitoring program registry; or
(b) a pharmacist, pharmacy intern or other designee authorized by the
pharmacist pursuant to paragraph (b) of subdivision three of section
thirty-three hundred forty-three-a of this article, for the purposes of:
(i) consulting the prescription monitoring program registry to review
the controlled substances history of an individual for whom one or more
prescriptions for controlled substances or certifications for [marihua-
na] CANNABIS is presented to the pharmacist, pursuant to section thir-
ty-three hundred forty-three-a of this article; and (ii) receiving from
the department such notifications of controlled substance activity as
are made available by the department; or
(c) an individual employed by a registered organization for the
purpose of consulting the prescription monitoring program registry to
review the controlled substances history of an individual for whom one
or more certifications for [marihuana] CANNABIS is presented to that
registered organization[, pursuant to section thirty-three hundred
sixty-four of this article]. Unless otherwise authorized by this arti-
cle, an individual employed by a registered organization will be
provided access to the prescription monitoring program in the sole
discretion of the commissioner.
§ 52. Subdivision 3 of section 853 of the general business law, as
added by chapter 90 of the laws of 2014, is amended to read as follows:
3. This article shall not apply to any sale, furnishing or possession
which is for a lawful purpose under [title five-A of article thirty-
three of the public health law] THE CANNABIS LAW.
§ 53. Subdivision 5 of section 410.91 of the criminal procedure law,
as amended by chapter 90 of the laws of 2014, is amended to read as
follows:
5. For the purposes of this section, a "specified offense" is an
offense defined by any of the following provisions of the penal law:
burglary in the third degree as defined in section 140.20, criminal
mischief in the third degree as defined in section 145.05, criminal
mischief in the second degree as defined in section 145.10, grand larce-
ny in the fourth degree as defined in subdivision one, two, three, four,
five, six, eight, nine or ten of section 155.30, grand larceny in the
third degree as defined in section 155.35 (except where the property
consists of one or more firearms, rifles or shotguns), unauthorized use
of a vehicle in the second degree as defined in section 165.06, criminal
possession of stolen property in the fourth degree as defined in subdi-
S. 2509--A 148 A. 3009--A
vision one, two, three, five or six of section 165.45, criminal
possession of stolen property in the third degree as defined in section
165.50 (except where the property consists of one or more firearms,
rifles or shotguns), forgery in the second degree as defined in section
170.10, criminal possession of a forged instrument in the second degree
as defined in section 170.25, unlawfully using slugs in the first degree
as defined in section 170.60, criminal diversion of medical [marihuana]
CANNABIS in the first degree as defined in section 179.10 or an attempt
to commit any of the aforementioned offenses if such attempt constitutes
a felony offense; or a class B felony offense defined in article two
hundred twenty where a sentence is imposed pursuant to paragraph (a) of
subdivision two of section 70.70 of the penal law; or any class C, class
D or class E controlled substance [or marihuana] CANNABIS felony offense
as defined in article two hundred twenty or two hundred twenty-one.
§ 54. Subdivision 5 of section 410.91 of the criminal procedure law,
as amended by section 8 of part AAA of chapter 56 of the laws of 2009,
is amended to read as follows:
5. For the purposes of this section, a "specified offense" is an
offense defined by any of the following provisions of the penal law:
burglary in the third degree as defined in section 140.20, criminal
mischief in the third degree as defined in section 145.05, criminal
mischief in the second degree as defined in section 145.10, grand larce-
ny in the fourth degree as defined in subdivision one, two, three, four,
five, six, eight, nine or ten of section 155.30, grand larceny in the
third degree as defined in section 155.35 (except where the property
consists of one or more firearms, rifles or shotguns), unauthorized use
of a vehicle in the second degree as defined in section 165.06, criminal
possession of stolen property in the fourth degree as defined in subdi-
vision one, two, three, five or six of section 165.45, criminal
possession of stolen property in the third degree as defined in section
165.50 (except where the property consists of one or more firearms,
rifles or shotguns), forgery in the second degree as defined in section
170.10, criminal possession of a forged instrument in the second degree
as defined in section 170.25, unlawfully using slugs in the first degree
as defined in section 170.60, or an attempt to commit any of the afore-
mentioned offenses if such attempt constitutes a felony offense; or a
class B felony offense defined in article two hundred twenty where a
sentence is imposed pursuant to paragraph (a) of subdivision two of
section 70.70 of the penal law; or any class C, class D or class E
controlled substance or [marihuana] CANNABIS felony offense as defined
in article two hundred twenty or two hundred twenty-one.
§ 55. The criminal procedure law is amended by adding a new section
440.46-a to read as follows:
§ 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
OFFENSES.
1. A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN GUILTY OF
AN OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER CONVICTION MAY PETITION FOR A RECALL OR
DISMISSAL OF SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT
OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS SECTION THE
COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
S. 2509--A 149 A. 3009--A
CONVINCING EVIDENCE THAT THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE OF THIS SECTION,
THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
BECAUSE IT IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT
MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING: (A) THE
MOVANT'S CRIMINAL CONVICTION HISTORY, INCLUDING THE TYPE OF CRIMES
COMMITTED, THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR PRISON
COMMITMENTS, AND THE REMOTENESS OF THE CRIMES. (B) THE MOVANT'S DISCI-
PLINARY RECORD AND RECORD OF REHABILITATION WHILE INCARCERATED.
3. A PERSON WHO IS SERVING A SENTENCE AND RESENTENCED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION SHALL BE GIVEN CREDIT FOR ANY TIME
ALREADY SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW-
ING COMPLETION OF HIS OR HER TIME IN CUSTODY OR SHALL BE SUBJECT TO
WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
AFTER RELEASE, WHICHEVER IS SHORTER, UNLESS THE COURT, IN ITS
DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON FROM
SUPERVISION. SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION
60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER SECTION 70.45
OF THE PENAL LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE
COURT IN THE COUNTY IN WHICH THE PERSON IS RELEASED OR RESIDES, OR IN
WHICH AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE
OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT
IN THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA AGREE-
MENT.
5. A PERSON WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY OF A
LESSER OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS
SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN
APPLICATION BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT OF
CONVICTION IN HIS OR HER CASE TO HAVE THE CONVICTION, IN ACCORDANCE WITH
ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW: (A) DISMISSED BECAUSE
THE PRIOR CONVICTION IS NOW LEGALLY INVALID AND SEALED IN ACCORDANCE
WITH SECTION 160.50 OF THIS CHAPTER; (B) REDESIGNATED (OR "RECLASSI-
FIED") AS A VIOLATION AND SEALED IN ACCORDANCE WITH SECTION 160.50 OF
THIS CHAPTER; OR (C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR.
6. THE COURT SHALL PRESUME THE PETITIONER SATISFIES THE CRITERIA IN
SUBDIVISION FIVE OF THIS SECTION UNLESS THE PARTY OPPOSING THE APPLICA-
TION PROVES BY CLEAR AND CONVINCING EVIDENCE THAT THE PETITIONER DOES
NOT SATISFY THE CRITERIA IN SUBDIVISION FIVE OF THIS SECTION. ONCE THE
APPLICANT SATISFIES THE CRITERIA IN SUBDIVISION FIVE OF THIS SECTION,
THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE CONVICTION AS A MISDE-
MEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION AS A VIOLATION AND SEAL
THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION AS LEGALLY INVALID
UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR
HER CONVICTION.
7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDI-
VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
SIX OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR VIOLATION FOR
ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER
S. 2509--A 150 A. 3009--A
SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR ALL
PURPOSES.
9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
THE PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE PETI-
TION OR APPLICATION.
10. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH OR ABROGATE ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
11. NOTHING IN THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR
ABROGATE THE FINALITY OF JUDGMENTS IN ANY CASE NOT FALLING WITHIN THE
PURVIEW OF THIS SECTION.
12. THE PROVISIONS OF THIS SECTION SHALL APPLY EQUALLY TO JUVENILE
DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER SECTION FIVE HUNDRED
ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
AN OFFENSE OR WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE UNDER THIS
SECTION HAD THIS SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER
CONVICTION.
13. THE OFFICE OF COURT ADMINISTRATION SHALL PROMULGATE AND MAKE
AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS AND
APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION.
§ 56. Transfer of employees. Notwithstanding any other provision of
law, rule, or regulation to the contrary, upon the transfer of any func-
tions from the department of health to the office of cannabis management
for the regulation and control of medical cannabis pursuant to this act,
employees performing those functions shall be transferred to the office
of cannabis management pursuant to subdivision 2 of section 70 of the
civil service law. Employees transferred pursuant to this section shall
be transferred without further examination or qualification and shall
retain their respective civil service classifications, status and
collective bargaining unit designations and collective bargaining agree-
ments. The civil service department may re-classify any person employed
in a permanent, classified, competitive, or exempt class position imme-
diately prior to being transferred to the office of cannabis management
pursuant to subdivision 2 of section 70 of the civil service law, to
align with the duties and responsibilities of their positions upon
transfer. Employees whose positions are subsequently re-classified to
align with the duties and responsibilities of their positions upon being
transferred to the office of cannabis management shall hold such posi-
tions without further examination or qualification. Notwithstanding any
other provision of this act, the names of those competitive permanent
employees on promotion eligible lists in their former department shall
be added and interfiled on a promotion eligible list in the new office,
as the state civil service department deems appropriate.
§ 57. Transfer of records. All books, papers, and property of the
department of health related to the administration of the medical mari-
juana program shall be deemed to be in the possession of the executive
director of the office of cannabis management and shall continue to be
maintained by the office of cannabis management.
§ 58. Continuity of authority. For the purpose of succession of all
functions, powers, duties and obligations transferred and assigned to,
devolved upon and assumed by it pursuant to this act, the office of
cannabis management shall be deemed and held to constitute the continua-
tion of the department of health's medical marijuana program.
§ 59. Completion of unfinished business. Any business or other matter
undertaken or commenced by the department of health pertaining to or
connected with the functions, powers, obligations and duties hereby
S. 2509--A 151 A. 3009--A
transferred and assigned to the office of cannabis management and pend-
ing on the effective date of this act, may be conducted and completed by
the office of cannabis management.
§ 60. Continuation of rules and regulations. All rules, regulations,
acts, orders, determinations, and decisions of the department of health
pertaining to medical marijuana and cannabinoid hemp, including the
functions and powers transferred and assigned pursuant to this act, in
force at the time of such transfer and assumption, shall continue in
full force and effect as rules, regulations, acts, orders, determi-
nations and decisions of the office of cannabis management until duly
modified or abrogated by the board of the office of cannabis management.
§ 61. Terms occurring in laws, contracts and other documents. Whenev-
er the department of health, or commissioner thereof, is referred to or
designated in any law, contract or document pertaining to the functions,
powers, obligations and duties hereby transferred to and assigned to the
office of cannabis management, such reference or designation shall be
deemed to refer to the board of cannabis management, or the executive
director thereof, as applicable.
§ 62. Existing rights and remedies preserved. No existing right or
remedy of any character shall be lost, impaired or affected by any
provisions of this act.
§ 63. Pending actions and proceedings. No action or proceeding pending
at the time when this act shall take effect, brought by or against the
department of health, or the commissioner thereof, shall be affected by
any provision of this act, but the same may be prosecuted or defended in
the name of the executive director of the office of cannabis management.
In all such actions and proceedings, the executive director of the
office of cannabis management, upon application to the court, shall be
substituted as a party.
§ 63-a. Severability. If any clause, sentence, paragraph, subdivision,
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 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.
§ 64. This act shall take effect immediately; provided, however that:
(i) the taxes imposed by section thirty-seven of this act shall apply
on and after March 1, 2022 to: (1) the sale of adult-use cannabis
products from a distributor to the person who sells adult-use cannabis
at retail; and (2) the sale of adult-use cannabis products by a person
who sells such products at retail;
(ii) the amendments to article 179 of the penal law made by section
forty-six of this act shall not affect the repeal of such article and
shall be deemed to be repealed therewith;
(iii) the amendments to section 89-h of the state finance law made by
section forty-nine of this act shall not affect the repeal of such
section and shall be deemed repealed therewith;
(iv) the amendments to section 221.00 of the penal law made by section
fourteen of this act shall be subject to the expiration of such section
when upon such date the provisions of section fifteen of this act shall
take effect;
S. 2509--A 152 A. 3009--A
(v) the amendments to subdivision 2 of section 3371 of the public
health law made by section fifty-one of this act shall not affect the
expiration of such subdivision and shall be deemed to expire therewith;
(vi) the amendments to subdivision 3 of section 853 of the general
business law made by section fifty-two of this act shall not affect the
repeal of such subdivision and shall be deemed to be repealed therewith;
and
(vii) the amendments to subdivision 5 of section 410.91 of the crimi-
nal procedure law made by section fifty-three of this act shall not
affect the repeal of such section and shall be subject to the expiration
and reversion of such subdivision when upon such date the provisions of
section fifty-four of this act shall take effect. !
PART I
Section 1. Subdivision (c) of section 1101 of the tax law, as added
by chapter 93 of the laws of 1965, paragraphs 2, 3, 4 and 6 as amended
by section 2 and paragraph 8 as added by section 3 of part AA of chapter
57 of the laws of 2010, and paragraph 5 as amended by chapter 575 of the
laws of 1965, is amended to read as follows:
(c) When used in this article for the purposes of the tax imposed
under subdivision (e) of section eleven hundred five OF THIS ARTICLE,
the following terms shall mean:
(1) Hotel. A building or portion of it which is regularly used and
kept open as such for the lodging of guests. The term "hotel" includes
an apartment hotel, a motel, boarding house or club, whether or not
meals are served.
(2) Occupancy. The use or possession, or the right to the use or
possession, of any room in a hotel OR VACATION RENTAL. "Right to the
use or possession" includes the rights of a room remarketer as described
in paragraph eight of this subdivision.
(3) Occupant. A person who, for a consideration, uses, possesses, or
has the right to use or possess, any room in a hotel OR VACATION RENTAL
under any lease, concession, permit, right of access, license to use or
other agreement, or otherwise. "Right to use or possess" includes the
rights of a room remarketer as described in paragraph eight of this
subdivision.
(4) Operator. Any person operating a hotel OR VACATION RENTAL. Such
term shall include a room remarketer and such room remarketer shall be
deemed to operate a hotel, or portion thereof, with respect to which
such person has the rights of a room remarketer.
(5) Permanent resident. Any occupant of any room or rooms in a hotel
OR VACATION RENTAL for at least ninety consecutive days shall be consid-
ered a permanent resident with regard to the period of such occupancy.
(6) Rent. The consideration received for occupancy, including any
service or other charge or amount required to be paid as a condition for
occupancy, valued in money, whether received in money or otherwise and
whether received by the operator or a room remarketer or another person
on behalf of either of them.
(7) Room. Any room or rooms of any kind in any part or portion of a
hotel OR VACATION RENTAL, which is available for or let out for any
purpose other than a place of assembly.
(8) Room remarketer. A person who reserves, arranges for, conveys, or
furnishes occupancy, whether directly or indirectly, to an occupant for
rent in A HOTEL FOR an amount determined by the room remarketer, direct-
ly or indirectly, whether pursuant to a written or other agreement. Such
S. 2509--A 153 A. 3009--A
person's ability or authority to reserve, arrange for, convey, or
furnish occupancy, directly or indirectly, and to determine rent there-
for, shall be the "rights of a room remarketer". A room remarketer is
not a permanent resident with respect to a room for which such person
has the rights of a room remarketer.
(9) VACATION RENTAL. A BUILDING OR PORTION OF IT THAT IS USED FOR THE
LODGING OF GUESTS. THE TERM "VACATION RENTAL" INCLUDES A HOUSE, AN
APARTMENT, A CONDOMINIUM, A COOPERATIVE UNIT, A CABIN, A COTTAGE, OR A
BUNGALOW, OR ONE OR MORE ROOMS THEREIN, WHERE SLEEPING ACCOMMODATIONS
ARE PROVIDED FOR THE LODGING OF PAYING OCCUPANTS, THE TYPICAL OCCUPANTS
ARE TRANSIENTS OR TRAVELERS, AND THE RELATIONSHIP BETWEEN THE OPERATOR
AND OCCUPANT IS NOT THAT OF A LANDLORD AND TENANT. IT IS NOT NECESSARY
THAT MEALS ARE SERVED. A BUILDING OR PORTION OF A BUILDING MAY QUALIFY
AS A VACATION RENTAL WHETHER OR NOT AMENITIES, INCLUDING BUT NOT LIMITED
TO DAILY HOUSEKEEPING SERVICES, CONCIERGE SERVICES, OR LINEN SERVICES,
ARE PROVIDED.
(10) (I) VACATION RENTAL MARKETPLACE PROVIDER. A PERSON WHO, PURSUANT
TO AN AGREEMENT WITH AN OPERATOR, FACILITATES THE OCCUPANCY OF A VACA-
TION RENTAL BY SUCH OPERATOR OR OPERATORS. A PERSON "FACILITATES THE
OCCUPANCY OF A VACATION RENTAL" FOR PURPOSES OF THIS PARAGRAPH WHEN THE
PERSON MEETS BOTH OF THE FOLLOWING CONDITIONS: (A) SUCH PERSON PROVIDES
THE FORUM IN WHICH, OR BY MEANS OF WHICH, THE SALE OF THE OCCUPANCY
TAKES PLACE OR THE OFFER OF SUCH SALE IS ACCEPTED, INCLUDING A SHOP,
STORE, OR BOOTH, AN INTERNET WEBSITE, CATALOG, OR SIMILAR FORUM; AND (B)
SUCH PERSON OR AN AFFILIATE OF SUCH PERSON COLLECTS THE RENT PAID BY A
CUSTOMER TO AN OPERATOR FOR THE OCCUPANCY OF A VACATION RENTAL, OR
CONTRACTS WITH A THIRD PARTY TO COLLECT SUCH RENT.
(II) FOR THE PURPOSES OF THIS ARTICLE, THE TERM "VACATION RENTAL
MARKETPLACE PROVIDER" SHALL NOT INCLUDE A "ROOM REMARKETER" AS DEFINED
IN PARAGRAPH EIGHT OF THIS SUBDIVISION. FOR PURPOSES OF THIS PARAGRAPH,
PERSONS ARE AFFILIATED IF ONE PERSON HAS AN OWNERSHIP INTEREST OF MORE
THAN FIVE PERCENT, WHETHER DIRECT OR INDIRECT, IN ANOTHER, OR WHERE AN
OWNERSHIP INTEREST OF MORE THAN FIVE PERCENT, WHETHER DIRECT OR INDI-
RECT, 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.
THE TERM "VACATION RENTAL MARKETPLACE PROVIDER" SHALL NOT INCLUDE A
"REAL ESTATE BROKER" AS LICENSED UNDER ARTICLE TWELVE-A OF THE REAL
PROPERTY LAW.
§ 2. Subdivision (a) of section 1104 of the tax law, as added by chap-
ter 3 of the laws of 2004, is amended to read as follows:
(a) Imposition. In addition to any other fee or tax imposed by this
article or any other law, on and after April first, two thousand five,
there is hereby imposed within the territorial limits of a city with a
population of a million or more and there shall be paid a unit fee on
every occupancy of a unit in a hotel OR VACATION RENTAL in such city at
the rate of one dollar and fifty cents per unit per day, except that
such unit fee shall not be imposed upon (1) occupancy by a permanent
resident or (2) where the rent per unit is not more than at the rate of
two dollars per day.
§ 3. Paragraph 1 of subdivision (e) of section 1105 of the tax law, as
amended by section 1 of part Q of chapter 59 of the laws of 2012, is
amended to read as follows:
(1) The rent for every occupancy of a room or rooms in a hotel AND
VACATION RENTAL in this state, except that the tax shall not be imposed
upon (i) a permanent resident, or (ii) where the rent is not more than
at the rate of two dollars per day.
S. 2509--A 154 A. 3009--A
§ 4. Subdivision 1 of section 1131 of the tax law, as amended by
section 2 of part G of chapter 59 of the laws of 2019, 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;
every operator of a hotel OR VACATION RENTAL; EVERY VACATION RENTAL
MARKETPLACE PROVIDER WITH RESPECT TO THE RENT FOR EVERY OCCUPANCY OF A
VACATION RENTAL IT FACILITATES AS DESCRIBED IN PARAGRAPH TEN OF SUBDIVI-
SION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE; 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 company, or any employee of an individual
proprietorship who as such officer, director, employee or manager is
under a duty to act for such corporation, partnership, limited liability
company or individual proprietorship in complying with any requirement
of this article, or has so acted; and any member of a partnership or
limited liability company. Provided, however, that any person who is a
vendor solely by reason of clause (D) or (E) of subparagraph (i) of
paragraph [(8)] EIGHT 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.
§ 5. Section 1132 of the tax law is amended by adding a new subdivi-
sion (m) to read as follows:
(M)(L) A VACATION RENTAL MARKETPLACE PROVIDER WITH RESPECT TO A SALE
FOR EVERY OCCUPANCY OF A VACATION RENTAL IT FACILITATES: (A) SHALL HAVE
ALL THE OBLIGATIONS AND RIGHTS OF A VENDOR UNDER THIS ARTICLE AND ARTI-
CLE TWENTY-NINE OF THIS CHAPTER AND UNDER ANY REGULATIONS ADOPTED PURSU-
ANT THERETO, INCLUDING, BUT NOT LIMITED TO, THE DUTY TO OBTAIN A CERTIF-
ICATE OF AUTHORITY, TO COLLECT TAX, FILE RETURNS, REMIT TAX, AND THE
RIGHT TO ACCEPT A CERTIFICATE OR OTHER DOCUMENTATION FROM A CUSTOMER
SUBSTANTIATING AN EXEMPTION OR EXCLUSION FROM TAX, THE RIGHT TO RECEIVE
THE REFUND AUTHORIZED BY SUBDIVISION (E) OF THIS SECTION AND THE CREDIT
ALLOWED BY SUBDIVISION (F) OF SECTION ELEVEN HUNDRED THIRTY-SEVEN OF
THIS PART SUBJECT TO THE PROVISIONS OF SUCH SUBDIVISIONS; AND (B) 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) AN OPERATOR IS RELIEVED FROM THE DUTY TO COLLECT TAX IN REGARD TO
A PARTICULAR RENT FOR THE OCCUPANCY OF A VACATION RENTAL SUBJECT TO TAX
UNDER SUBDIVISION (E) OF SECTION ELEVEN HUNDRED FIVE OF THIS ARTICLE AND
SHALL NOT INCLUDE THE RENT FROM SUCH OCCUPANCY IN ITS TAXABLE SALES FOR
PURPOSES OF SECTION ELEVEN HUNDRED THIRTY-SIX OF THIS PART IF, IN REGARD
TO SUCH OCCUPANCY: (A) THE OPERATOR OF THE VACATION RENTAL CAN SHOW THAT
SUCH OCCUPANCY WAS FACILITATED BY A VACATION RENTAL MARKETPLACE PROVIDER
FROM WHOM SUCH OPERATOR HAS RECEIVED IN GOOD FAITH A PROPERLY COMPLETED
CERTIFICATE OF COLLECTION IN A FORM PRESCRIBED BY THE COMMISSIONER,
CERTIFYING THAT THE VACATION RENTAL MARKETPLACE PROVIDER IS REGISTERED
TO COLLECT SALES TAX AND WILL COLLECT SALES TAX ON ALL TAXABLE SALES OF
OCCUPANCY OF A VACATION RENTAL BY THE OPERATOR FACILITATED BY THE VACA-
S. 2509--A 155 A. 3009--A
TION RENTAL MARKETPLACE PROVIDER, AND WITH SUCH OTHER INFORMATION AS THE
COMMISSIONER MAY PRESCRIBE; AND (B) ANY FAILURE OF THE VACATION RENTAL
MARKETPLACE PROVIDER TO COLLECT THE PROPER AMOUNT OF TAX IN REGARD TO
SUCH SALE WAS NOT THE RESULT OF SUCH OPERATOR PROVIDING THE VACATION
RENTAL 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 CERTIFICATE OF
COLLECTION WERE A RESALE OR EXEMPTION CERTIFICATE FOR PURPOSES OF SUCH
SUBPARAGRAPH, INCLUDING WITH REGARD TO THE COMPLETENESS OF SUCH CERTIF-
ICATE OF COLLECTION AND THE TIMING OF ITS ACCEPTANCE BY THE OPERATOR.
PROVIDED THAT, WITH REGARD TO ANY SALES OF OCCUPANCY OF A VACATION
RENTAL BY AN OPERATOR THAT ARE FACILITATED BY A VACATION RENTAL MARKET-
PLACE PROVIDER WHO IS AFFILIATED WITH SUCH OPERATOR WITHIN THE MEANING
OF PARAGRAPH TEN OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF
THIS ARTICLE, THE OPERATOR SHALL BE DEEMED LIABLE AS A PERSON UNDER A
DUTY TO ACT FOR SUCH VACATION RENTAL MARKETPLACE PROVIDER FOR PURPOSES
OF SUBDIVISION ONE OF SECTION ELEVEN HUNDRED THIRTY-ONE OF THIS PART.
(3) THE COMMISSIONER MAY, AT HIS OR HER DISCRETION: (A) DEVELOP A
STANDARD PROVISION, OR APPROVE A PROVISION DEVELOPED BY A VACATION
RENTAL MARKETPLACE PROVIDER, IN WHICH THE VACATION RENTAL MARKETPLACE
PROVIDER OBLIGATES ITSELF TO COLLECT THE TAX ON BEHALF OF ALL OPERATORS
FOR WHOM THE VACATION RENTAL MARKETPLACE PROVIDER FACILITATES SALES OF
OCCUPANCY OF A VACATION RENTAL, WITH RESPECT TO ALL SALES THAT IT FACIL-
ITATES FOR SUCH OPERATORS WHERE THE RENTAL OCCURS IN THE STATE; AND (B)
PROVIDE BY REGULATION OR OTHERWISE THAT THE INCLUSION OF SUCH PROVISION
IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN THE VACATION RENTAL MARKET-
PLACE PROVIDER AND OPERATOR WILL HAVE THE SAME EFFECT AS AN OPERATOR'S
ACCEPTANCE OF A CERTIFICATE OF COLLECTION FROM SUCH VACATION RENTAL
MARKETPLACE PROVIDER UNDER PARAGRAPH TWO OF THIS SUBDIVISION.
§ 6. Section 1133 of the tax law is amended by adding a new subdivi-
sion (g) to read as follows:
(G) A VACATION RENTAL MARKETPLACE PROVIDER IS RELIEVED OF LIABILITY
UNDER THIS SECTION FOR FAILURE TO COLLECT THE CORRECT AMOUNT OF TAX TO
THE EXTENT THAT THE VACATION RENTAL MARKETPLACE PROVIDER CAN SHOW THAT
THE ERROR WAS DUE TO INCORRECT OR INSUFFICIENT INFORMATION GIVEN TO THE
VACATION RENTAL MARKETPLACE PROVIDER BY THE OPERATOR. PROVIDED, HOWEVER,
THIS SUBDIVISION SHALL NOT APPLY IF THE OPERATOR AND VACATION RENTAL
MARKETPLACE PROVIDER ARE AFFILIATED WITHIN THE MEANING OF PARAGRAPH TEN
OF SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE.
§ 7. Subdivision (a) of section 1134 of the tax law is amended by
adding a new paragraph 6 to read as follows:
(6) AN OPERATOR OF A VACATION RENTAL, AS DEFINED IN PARAGRAPH NINE OF
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED ONE OF THIS ARTICLE, IS
RELIEVED OF THE REQUIREMENT TO REGISTER IN PARAGRAPH ONE OF THIS SUBDI-
VISION IF ITS SALES OF OCCUPANCY ARE WHOLLY FACILITATED BY ONE OR MORE
VACATION RENTAL MARKETPLACE PROVIDERS FROM WHOM THE OPERATOR HAS
RECEIVED IN GOOD FAITH A CERTIFICATE OF COLLECTION THAT MEETS THE
REQUIREMENTS SET FORTH IN PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION
ELEVEN HUNDRED THIRTY-TWO OF THIS PART.
§ 8. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as
amended by section 5 of part G of chapter 59 of the laws of 2019, 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
S. 2509--A 156 A. 3009--A
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 one 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. THE RETURN OF AN OPERATOR SHALL EXCLUDE
THE RENT FROM OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION
RENTAL MARKETPLACE PROVIDER IF, IN REGARD TO SUCH SALE: (A) THE VACATION
RENTAL OPERATOR HAS TIMELY RECEIVED IN GOOD FAITH A PROPERLY COMPLETED
CERTIFICATE OF COLLECTION FROM THE VACATION RENTAL MARKETPLACE PROVIDER
OR THE VACATION RENTAL MARKETPLACE PROVIDER HAS INCLUDED A PROVISION
APPROVED BY THE COMMISSIONER IN THE PUBLICLY-AVAILABLE AGREEMENT BETWEEN
THE VACATION RENTAL MARKETPLACE PROVIDER AND THE OPERATOR AS DESCRIBED
IN SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS PART,
AND (B) THE INFORMATION PROVIDED BY THE OPERATOR TO THE VACATION RENTAL
MARKETPLACE PROVIDER ABOUT SUCH RENT AND SUCH OCCUPANCY IS ACCURATE.
§ 9. Section 1142 of the tax law is amended by adding a new subdivi-
sion 16 to read as follows:
16. TO PUBLISH A LIST ON THE DEPARTMENT'S WEBSITE OF VACATION RENTAL
MARKETPLACE PROVIDERS WHOSE CERTIFICATES OF AUTHORITY HAVE BEEN REVOKED
AND, IF NECESSARY TO PROTECT SALES TAX REVENUE, PROVIDE BY REGULATION OR
OTHERWISE THAT A VACATION RENTAL OPERATOR WILL BE RELIEVED OF THE
REQUIREMENT TO REGISTER AND THE DUTY TO COLLECT TAX ON THE RENT FOR
OCCUPANCY OF A VACATION RENTAL FACILITATED BY A VACATION RENTAL MARKET-
PLACE PROVIDER ONLY IF, IN ADDITION TO THE CONDITIONS PRESCRIBED BY
PARAGRAPH TWO OF SUBDIVISION (M) OF SECTION ELEVEN HUNDRED THIRTY-TWO
AND PARAGRAPH SIX OF SUBDIVISION (A) OF SECTION ELEVEN HUNDRED THIRTY-
FOUR OF THIS PART BEING MET, SUCH VACATION RENTAL MARKETPLACE PROVIDER
IS NOT ON SUCH LIST AT THE COMMENCEMENT OF THE QUARTERLY PERIOD COVERED
THEREBY.
§ 10. This act shall take effect immediately and shall apply to
collections of rent by the operator or vacation rental marketplace
provider on or after September 1, 2021.
PART J
Section 1. Sections 227, 306 and 406, subparagraph (ii) of paragraph b
of subdivision 4 of section 1008 and paragraph b of subdivision 5 of
section 1009 of the racing, pari-mutuel, wagering and breeding law are
REPEALED.
§ 2. Paragraph 1 of subdivision (f) of section 1105 of the tax law, as
amended by chapter 32 of the laws of 2016, is amended to read as
follows:
(1) Any admission charge where such admission charge is in excess of
ten cents to or for the use of any place of amusement in the state,
S. 2509--A 157 A. 3009--A
except charges for admission to [race tracks or] combative sports which
charges are taxed under any other law of this state, or dramatic or
musical arts performances, or live circus performances, or motion
picture theaters, and except charges to a patron for admission to, or
use of, facilities for sporting activities in which such patron is to be
a participant, such as bowling alleys and swimming pools. For any person
having the permanent use or possession of a box or seat or a lease or a
license, other than a season ticket, for the use of a box or seat at a
place of amusement, the tax shall be upon the amount for which a similar
box or seat is sold for each performance or exhibition at which the box
or seat is used or reserved by the holder, licensee or lessee, and shall
be paid by the holder, licensee or lessee.
§ 3. Subdivision (a) of section 1109 of the tax law, as amended by
section 1 of part BB of chapter 61 of the laws of 2005, is amended to
read as follows:
(a) General. In addition to the taxes imposed by sections eleven
hundred five and eleven hundred ten of this article, there is hereby
imposed within the territorial limits of the metropolitan commuter
transportation district created and established pursuant to section
twelve hundred sixty-two of the public authorities law, and there shall
be paid, additional taxes, at the rate of three-eighths of one percent,
which shall be identical to the taxes imposed by sections eleven hundred
five and eleven hundred ten of this article. Such sections and the other
sections of this article, including the definition and exemption
provisions, shall apply for purposes of the taxes imposed by this
section in the same manner and with the same force and effect as if the
language of those sections had been incorporated in full into this
section and had expressly referred to the taxes imposed by this section.
NOTWITHSTANDING THE FOREGOING, THE TAX IMPOSED BY THIS SECTION SHALL NOT
APPLY TO ADMISSIONS TO RACE TRACKS OR SIMULCAST FACILITIES.
§ 4. Subdivision (a) of section 1146 of the tax law, as amended by
chapter 65 of the laws of 1985, is amended to read as follows:
(a) Except in accordance with proper judicial order or as otherwise
provided by law, it shall be unlawful for the [tax commission, any tax]
COMMISSIONER, any officer or employee of the department of taxation and
finance, any person engaged or retained by such department on an inde-
pendent contract basis, or any person who in any manner may acquire
knowledge of the contents of a return or report filed with the [tax
commission] 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 [tax commission] COMMISSIONER in an action or
proceeding under the provisions of the tax law or in any other action or
proceeding involving the collection of a tax due under this chapter to
which the state or the [tax commission] 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 hear-
ing, in any of which events the court, or in the case of a hearing, the
[tax commission] COMMISSIONER 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 [tax commission] COMMISSIONER may, nevertheless, publish a
copy or a summary of any decision rendered after a hearing required by
S. 2509--A 158 A. 3009--A
this article. Nothing herein shall be construed to prohibit the delivery
to a person who has filed a return or report or his duly authorized
representative of a certified copy of any return or report filed in
connection with his tax. Nor shall anything herein be construed to
prohibit the delivery to a person required to collect the tax under this
article or a purchaser, transferee or assignee personally liable under
the provisions of subdivision (c) of section eleven hundred forty-one of
this chapter for the tax due from the seller, transferor or assignor, of
any return or report filed under this article in connection with such
tax provided, however, that there may be delivered only so much of said
return, report or of the facts shown thereby as are pertinent to a
determination of the taxes due or liability owed by such person or
purchaser, transferee or assignee and no more or to prohibit the publi-
cation of statistics so classified 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 collect or pay the tax
who shall bring action to review the tax based thereon, or against whom
an action or proceeding under this chapter has been recommended by the
commissioner of taxation and finance 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 department of audit and control, for purposes of the audit
of a refund of any tax paid by a person required to collect or pay the
tax under this article. Provided, further, nothing herein shall be
construed to prohibit the disclosure, in such manner as the [tax commis-
sion] COMMISSIONER deems appropriate, of the names and other appropriate
identifying information of those persons holding certificates of author-
ity pursuant to section eleven hundred thirty-four of this article,
those persons whose certificates of authority have been suspended or
revoked, those persons whose certificates of authority have expired,
those persons who have filed a certificate of registration for a certif-
icate of authority where the [tax commission] COMMISSIONER has refused
to issue a certificate of authority, those persons holding direct
payment permits pursuant to section eleven hundred thirty-two or those
persons whose direct payment permits have been suspended or revoked by
the [tax commission] COMMISSIONER; AND PROVIDED FURTHER THAT NOTHING
HEREIN SHALL BE CONSTRUED TO PROHIBIT THE DISCLOSURE, IN SUCH MANNER AS
THE COMMISSIONER DEEMS APPROPRIATE, OF INFORMATION RELATED TO THE TAX ON
ADMISSIONS TO RACE TRACKS AND SIMULCAST FACILITIES TO THE GAMING COMMIS-
SION OR THE DIVISION OF THE BUDGET.
§ 5. Paragraph 1 of subdivision (a) of section 1210 of the tax law, as
amended by section 2 of part WW, subparagraph (i) as separately amended
by section 5 of part Z of chapter 60 of the laws of 2016, is amended to
read as follows:
(1) Either, all of the taxes described in article twenty-eight of this
chapter, at the same uniform rate, as to which taxes all provisions of
the local laws, ordinances or resolutions imposing such taxes shall be
identical, except as to rate and except as otherwise provided, with the
corresponding provisions in such article twenty-eight, including the
definition and exemption provisions of such article, so far as the
provisions of such article twenty-eight can be made applicable to the
taxes imposed by such city or county and with such limitations and
special provisions as are set forth in this article. The taxes author-
ized under this subdivision may not be imposed by a city or county
unless the local law, ordinance or resolution imposes such taxes so as
S. 2509--A 159 A. 3009--A
to include all portions and all types of receipts, charges or rents,
subject to state tax under sections eleven hundred five and eleven
hundred ten of this chapter, except as otherwise provided. NOTWITH-
STANDING THE FOREGOING, A TAX IMPOSED BY A CITY OR COUNTY AUTHORIZED
UNDER THIS SUBDIVISION SHALL NOT INCLUDE THE TAX IMPOSED ON CHARGES FOR
ADMISSION TO RACE TRACKS AND SIMULCAST FACILITIES UNDER SUBDIVISION (F)
OF SECTION ELEVEN HUNDRED FIVE OF THIS CHAPTER. (i) Any local law, ordi-
nance or resolution enacted by any city of less than one million or by
any county or school district, imposing the taxes authorized by this
subdivision, shall, notwithstanding any provision of law to the contra-
ry, exclude from the operation of such local taxes all sales of tangible
personal property for use or consumption directly and predominantly in
the production of tangible personal property, gas, electricity, refrig-
eration or steam, for sale, by manufacturing, processing, generating,
assembly, refining, mining or extracting; and all sales of tangible
personal property for use or consumption predominantly either in the
production of tangible personal property, for sale, by farming or in a
commercial horse boarding operation, or in both; and all sales of fuel
sold for use in commercial aircraft and general aviation aircraft; and,
unless such city, county or school district elects otherwise, shall omit
the provision for credit or refund contained in clause six of subdivi-
sion (a) or subdivision (d) of section eleven hundred nineteen of this
chapter. (ii) Any local law, ordinance or resolution enacted by any
city, county or school district, imposing the taxes authorized by this
subdivision, shall omit the residential solar energy systems equipment
and electricity exemption provided for in subdivision (ee), the commer-
cial solar energy systems equipment and electricity exemption provided
for in subdivision (ii), the commercial fuel cell electricity generating
systems equipment and electricity generated by such equipment exemption
provided for in subdivision (kk) and the clothing and footwear exemption
provided for in paragraph thirty of subdivision (a) of section eleven
hundred fifteen of this chapter, unless such city, county or school
district elects otherwise as to such residential solar energy systems
equipment and electricity exemption, such commercial solar energy
systems equipment and electricity exemption, commercial fuel cell elec-
tricity generating systems equipment and electricity generated by such
equipment exemption or such clothing and footwear exemption.
§ 6. Paragraph 1 of subdivision (b) of section 1210 of the tax law,
as amended by section 3 of part WW of chapter 60 of the laws of 2016, is
amended to read as follows:
(1) Or, one or more of the taxes described in subdivisions (b), (d),
(e) and (f) of section eleven hundred five of this chapter, at the same
uniform rate, including the transitional provisions in section eleven
hundred six of this chapter covering such taxes, but not the taxes
described in subdivisions (a) and (c) of section eleven hundred five of
this chapter. Provided, further, that where the tax described in subdi-
vision (b) of section eleven hundred five of this chapter is imposed,
the compensating use taxes described in clauses (E), (G) and (H) of
subdivision (a) of section eleven hundred ten of this chapter shall also
be imposed. Provided, further, that where the taxes described in subdi-
vision (b) of section eleven hundred five OF THIS CHAPTER are imposed,
such taxes shall omit: (A) the provision for refund or credit contained
in subdivision (d) of section eleven hundred nineteen of this chapter
with respect to such taxes described in such subdivision (b) of section
eleven hundred five unless such city or county elects to provide such
provision or, if so elected, to repeal such provision; (B) the exemption
S. 2509--A 160 A. 3009--A
provided in paragraph two of subdivision (ee) of section eleven hundred
fifteen of this chapter unless such county or city elects otherwise; (C)
the exemption provided in paragraph two of subdivision (ii) of section
eleven hundred fifteen of this chapter, unless such county or city
elects otherwise; and (D) the exemption provided in paragraph two of
subdivision (kk) of section eleven hundred fifteen of this chapter,
unless such county or city elects otherwise; AND PROVIDED FURTHER THAT
WHERE THE TAX DESCRIBED IN SUBDIVISION (F) OF SUCH SECTION ELEVEN
HUNDRED FIVE IS IMPOSED, SUCH TAX SHALL NOT APPLY TO CHARGES FOR ADMIS-
SION TO RACE TRACKS AND SIMULCAST FACILITIES.
§ 7. Notwithstanding any provisions of law to the contrary and
notwithstanding the repeal of sections 227, 306 and 406, subparagraph
(ii) of paragraph b of subdivision 4 of section 1008 and paragraph b of
subdivision 5 of section 1009 of the racing, pari-mutuel, wagering and
breeding law by section one of this act, all provisions of such sections
227, 306 and 406, subparagraph (ii) of paragraph b of subdivision 4 of
section 1008 and paragraph b of subdivision 5 of section 1009, in
respect to the imposition, exemption, assessment, payment, payment over,
determination, collection, and credit or refund of tax, interest and
penalty imposed thereunder, the filing of forms and returns, the preser-
vation of records for the purposes of such tax, the disposition of
revenues, and any civil and criminal penalties applicable to the
violation of the provisions of such sections 227, 306 and 406, subpara-
graph (ii) of paragraph b of subdivision 4 of section 1008 and paragraph
b of subdivision 5 of section 1009, shall continue in full force and
effect with respect to all such tax accrued for periods prior to the
effective date of this act in the same manner as they might if such
provisions were not repealed.
§ 8. This act shall take effect November 1, 2021 and shall apply to
charges for admissions to race tracks and simulcast facilities on and
after such date.
PART K
Section 1. Subdivision (d) of section 1139 of the tax law, as amended
by section 10 of subpart D of part VI of chapter 57 of the laws of 2009,
is amended to read as follows:
(d) (1) Except in respect to an overpayment made on a return described
in paragraph two of subdivision (a) of section eleven hundred thirty-six
of this part [or on a return described in subdivision (c) of section
eleven hundred thirty-seven-A of this part], interest shall be allowed
and paid upon any refund made or credit allowed pursuant to this section
except as otherwise provided in paragraph two OR THREE of this subdivi-
sion or subdivision (e) of this section and except that no interest
shall be allowed or paid if the amount thereof would be less than one
dollar. Such interest shall be at the overpayment rate set by the
commissioner pursuant to section eleven hundred forty-two of this part,
or if no rate is set, at the rate of six percent per annum from the date
when the tax, penalty or interest refunded or credited was paid to a
date preceding the date of the refund check by not more than thirty
days, provided, however, that for the purposes of this subdivision any
tax paid before the last day prescribed for its payment shall be deemed
to have been paid on such last day. In the case of a refund or credit
claimed on a return of tax which is filed after the last date prescribed
for filing such return (determined with regard to extensions), or
claimed on an application for refund or credit, no interest shall be
S. 2509--A 161 A. 3009--A
allowed or paid for any day before the date on which the return or
application is filed. For purposes of this subdivision, a return or
application for refund or credit shall not be treated as filed until it
is filed in processible form. A return or application is in a processi-
ble form if it is filed on a permitted form, and contains the taxpayer's
name, address and identifying number and the required signatures, and
sufficient required information (whether on the return or application or
on required attachments) to permit the mathematical verification of tax
liability shown on the return or refund or credit claimed on the appli-
cation.
(2) If a refund is made or a credit is allowed IN AN AMOUNT LESS THAN
ONE HUNDRED THOUSAND DOLLARS (I) within three months after the last date
prescribed or permitted by extension of time for filing a return on
which the refund or credit was claimed or within three months after the
return was filed, whichever is later, or (II) within three months after
an application for refund or credit is filed on which that refund or
credit was claimed, OR (III) WITHIN THREE MONTHS AFTER THE LAST DATE
PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING AN APPLICATION
FOR A REFUND OR CREDIT ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, no
interest will be allowed or paid on that refund or credit.
(3) IF A REFUND IS MADE OR A CREDIT IS ALLOWED IN AN AMOUNT OF ONE
HUNDRED THOUSAND DOLLARS OR MORE (I) WITHIN SIX MONTHS AFTER THE LAST
DATE PRESCRIBED OR PERMITTED BY EXTENSION OF TIME FOR FILING A RETURN ON
WHICH THE REFUND OR CREDIT WAS CLAIMED OR WITHIN SIX MONTHS AFTER THE
RETURN WAS FILED, WHICHEVER IS LATER, OR (II) WITHIN SIX MONTHS AFTER AN
APPLICATION FOR REFUND OR CREDIT IS FILED ON WHICH THAT REFUND OR CREDIT
WAS CLAIMED, OR (III) WITHIN SIX MONTHS AFTER THE LAST DATE PRESCRIBED
OR PERMITTED BY EXTENSION OF TIME FOR FILING AN APPLICATION FOR REFUND
OR CREDIT ON WHICH THAT REFUND OR CREDIT WAS CLAIMED, NO INTEREST WILL
BE ALLOWED OR PAID ON THAT REFUND OR CREDIT.
§ 2. This act shall take effect immediately and shall apply to refund
or credit claims submitted on or after March 1, 2022.
PART L
Section 1. Subparagraph (i) of the opening paragraph of section 1210
of the tax law is REPEALED and a new subparagraph (i) is added to read
as follows:
(I) WITH RESPECT TO A CITY OF ONE MILLION OR MORE AND THE FOLLOWING
COUNTIES: (1) ANY SUCH CITY HAVING A POPULATION OF ONE MILLION OR MORE
IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDI-
NANCES OR RESOLUTIONS IMPOSING SUCH TAXES IN ANY SUCH CITY, AT THE RATE
OF FOUR AND ONE-HALF PERCENT;
(2) THE FOLLOWING COUNTIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION
(A) OF THIS SECTION AT THE RATE OF THREE PERCENT AS AUTHORIZED ABOVE IN
THIS PARAGRAPH ARE HEREBY FURTHER AUTHORIZED AND EMPOWERED TO ADOPT AND
AMEND LOCAL LAWS, ORDINANCES, OR RESOLUTIONS IMPOSING SUCH TAXES AT
ADDITIONAL RATES, IN QUARTER PERCENT INCREMENTS, NOT TO EXCEED THE
FOLLOWING RATES, WHICH RATES ARE ADDITIONAL TO THE THREE PERCENT RATE
AUTHORIZED ABOVE IN THIS PARAGRAPH:
(A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CAYUGA, CHAUTAUQUA,
CHEMUNG, CHENANGO, CLINTON, COLUMBIA, CORTLAND, DELAWARE, DUTCHESS,
ESSEX, FRANKLIN, FULTON, GENESEE, GREENE, HAMILTON, JEFFERSON, LEWIS,
LIVINGSTON, MADISON, MONROE, MONTGOMERY, NIAGARA, ONONDAGA, ONTARIO,
ORANGE, ORLEANS, OSWEGO, OTSEGO, PUTNAM, RENSSELAER, ROCKLAND, ST.
LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER, SENECA, STEUBEN,
S. 2509--A 162 A. 3009--A
SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON, WAYNE, WESTCHES-
TER, WYOMING, YATES;
(B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU, SUFFOLK;
(C) ONE AND ONE-HALF PERCENT - ALLEGANY;
(D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA.
PROVIDED, HOWEVER, THAT (I) THE COUNTY OF ROCKLAND MAY IMPOSE ADDI-
TIONAL RATES OF FIVE-EIGHTHS PERCENT AND THREE-EIGHTHS PERCENT, IN LIEU
OF IMPOSING SUCH ADDITIONAL RATE IN QUARTER PERCENT INCREMENTS; (II) THE
COUNTY OF ONTARIO MAY IMPOSE ADDITIONAL RATES OF ONE-EIGHTH PERCENT AND
THREE-EIGHTHS PERCENT, IN LIEU OF IMPOSING SUCH ADDITIONAL RATE IN QUAR-
TER PERCENT INCREMENTS; (III) THREE-QUARTERS PERCENT OF THE ADDITIONAL
RATE AUTHORIZED TO BE IMPOSED BY THE COUNTY OF NASSAU SHALL BE SUBJECT
TO THE LIMITATION SET FORTH IN SECTION TWELVE HUNDRED SIXTY-TWO-E OF
THIS ARTICLE.
§ 2. Subparagraph (ii) of the opening paragraph of section 1210 of the
tax law is REPEALED and a new subparagraph (ii) is added to read as
follows:
(II) THE FOLLOWING CITIES THAT IMPOSE TAXES DESCRIBED IN SUBDIVISION
(A) OF THIS SECTION AT THE RATE OF ONE AND ONE-HALF PERCENT OR HIGHER AS
AUTHORIZED ABOVE IN THIS PARAGRAPH FOR SUCH CITIES ARE HEREBY FURTHER
AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS, ORDINANCES, OR
RESOLUTIONS IMPOSING SUCH TAXES AT ADDITIONAL RATES, IN QUARTER PERCENT
INCREMENTS, NOT TO EXCEED THE FOLLOWING RATES, WHICH RATES ARE ADDI-
TIONAL TO THE ONE AND ONE-HALF PERCENT OR HIGHER RATES AUTHORIZED ABOVE
IN THIS PARAGRAPH:
(1) ONE PERCENT - MOUNT VERNON; NEW ROCHELLE; OSWEGO; WHITE PLAINS;
(2) ONE AND ONE QUARTER PERCENT - NONE;
(3) ONE AND ONE-HALF PERCENT - YONKERS.
§ 3. Subparagraphs (iii) and (iv) of the opening paragraph of section
1210 of the tax law are REPEALED and a new subparagraph (iii) is added
to read as follows:
(III) THE MAXIMUM RATE REFERRED TO IN SECTION TWELVE HUNDRED TWENTY-
FOUR OF THIS ARTICLE SHALL BE CALCULATED WITHOUT REFERENCE TO THE ADDI-
TIONAL RATES AUTHORIZED FOR COUNTIES, OTHER THAN THE COUNTIES OF CAYUGA,
CORTLAND, FULTON, MADISON, AND OTSEGO, IN CLAUSE TWO OF SUBPARAGRAPH (I)
AND THE CITIES IN SUBPARAGRAPH (II) OF THIS PARAGRAPH.
§ 4. Section 1210 of the tax law is amended by adding a new subdivi-
sion (p) to read as follows:
(P) NOTWITHSTANDING ANY PROVISION OF THIS SECTION OR OTHER LAW TO THE
CONTRARY, A COUNTY AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OR RATES OF
SALES AND COMPENSATING USE TAXES BY CLAUSE TWO OF SUBPARAGRAPH (I) OF
THE OPENING PARAGRAPH OF THIS SECTION, OR A CITY, OTHER THAN THE CITY OF
MOUNT VERNON, AUTHORIZED TO IMPOSE AN ADDITIONAL RATE OF SUCH TAXES BY
SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH, MAY ADOPT A LOCAL LAW,
ORDINANCE OR RESOLUTION BY A MAJORITY VOTE OF ITS GOVERNING BODY IMPOS-
ING SUCH RATE OR RATES FOR A PERIOD NOT TO EXCEED TWO YEARS, AND ANY
SUCH PERIOD MUST END ON NOVEMBER THIRTIETH OF AN ODD-NUMBERED YEAR.
NOTWITHSTANDING THE PRECEDING SENTENCE, THE CITY OF WHITE PLAINS IS
AUTHORIZED TO EXCEED SUCH TWO-YEAR LIMITATION TO IMPOSE THE TAX AUTHOR-
IZED BY SUBPARAGRAPH (II) OF SUCH OPENING PARAGRAPH FOR THE PERIOD
COMMENCING ON SEPTEMBER FIRST, TWO THOUSAND TWENTY-ONE AND ENDING ON
NOVEMBER THIRTIETH, TWO THOUSAND TWENTY-THREE. ANY SUCH LOCAL LAW, ORDI-
NANCE, OR RESOLUTION SHALL ALSO BE SUBJECT TO THE PROVISIONS OF SUBDIVI-
SIONS (D) AND (E) OF THIS SECTION.
§ 5. Section 1210-E of the tax law is REPEALED.
S. 2509--A 163 A. 3009--A
§ 6. Subdivisions (d), (e), (f), (g), (h), (i), (j), (k), (l), (m),
(n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (z-1),
(aa), (bb), (cc), (dd), (ee), (ff), (gg), (hh), (ii) and (jj) of section
1224 of the tax law are REPEALED.
§ 7. Section 1224 of the tax law is amended by adding three new subdi-
visions (d), (e), and (f) to read as follows:
(D) FOR PURPOSES OF THIS SECTION, THE TERM "PRIOR RIGHT" SHALL MEAN
THE PREFERENTIAL RIGHT TO IMPOSE ANY TAX DESCRIBED IN SECTIONS TWELVE
HUNDRED TWO AND TWELVE HUNDRED THREE, OR TWELVE HUNDRED TEN AND TWELVE
HUNDRED ELEVEN, OF THIS ARTICLE AND THEREBY TO PREEMPT SUCH TAX AND TO
PRECLUDE ANOTHER MUNICIPAL CORPORATION FROM IMPOSING OR CONTINUING THE
IMPOSITION OF SUCH TAX TO THE EXTENT THAT SUCH RIGHT IS EXERCISED.
HOWEVER, THE RIGHT OF PREEMPTION SHALL ONLY APPLY WITHIN THE TERRITORIAL
LIMITS OF THE TAXING JURISDICTION HAVING THE RIGHT OF PREEMPTION.
(E) EACH OF THE FOLLOWING COUNTIES AND CITIES SHALL HAVE THE SOLE
RIGHT TO IMPOSE THE FOLLOWING ADDITIONAL RATE OF SALES AND COMPENSATING
USE TAXES IN EXCESS OF THREE PERCENT THAT SUCH COUNTY OR CITY IS AUTHOR-
IZED TO IMPOSE PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OR SUBPARA-
GRAPH (II) OF THE OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF
THIS ARTICLE. SUCH ADDITIONAL RATES OF TAX SHALL NOT BE SUBJECT TO
PREEMPTION.
(1) COUNTIES:
(A) ONE PERCENT - ALBANY, BROOME, CATTARAUGUS, CHAUTAUQUA, CHEMUNG,
CHENANGO, CLINTON, COLUMBIA, DELAWARE, DUTCHESS, ESSEX, FRANKLIN, GENE-
SEE, GREENE, HAMILTON, JEFFERSON, LEWIS, LIVINGSTON, MONROE, MONTGOMERY,
NIAGARA, ONONDAGA, ONTARIO, ORANGE, ORLEANS, OSWEGO, PUTNAM, RENSSELAER,
ROCKLAND, ST. LAWRENCE, SARATOGA, SCHENECTADY, SCHOHARIE, SCHUYLER,
SENECA, STEUBEN, SULLIVAN, TIOGA, TOMPKINS, ULSTER, WARREN, WASHINGTON,
WAYNE, WESTCHESTER, WYOMING, YATES;
(B) ONE AND ONE-QUARTER PERCENT - HERKIMER, NASSAU, SUFFOLK;
(C) ONE AND ONE-HALF PERCENT - ALLEGANY;
(D) ONE AND THREE-QUARTERS PERCENT - ERIE, ONEIDA;
PROVIDED, HOWEVER THAT THE COUNTY OF WESTCHESTER SHALL HAVE THE SOLE
RIGHT TO IMPOSE THE ADDITIONAL ONE PERCENT RATE OF TAX AUTHORIZED BY
CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION
TWELVE HUNDRED TEN OF THIS ARTICLE IN THE AREA OF SUCH COUNTY OUTSIDE
THE CITIES OF MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS AND YONKERS.
(2) CITIES:
(A) ONE-QUARTER OF ONE PERCENT - ROME;
(B) ONE-HALF OF ONE PERCENT - NONE;
(C) THREE-QUARTERS OF ONE PERCENT - NONE;
(D) ONE PERCENT - MOUNT VERNON, NEW ROCHELLE, WHITE PLAINS;
(E) ONE AND ONE QUARTER PERCENT - NONE;
(F) ONE AND ONE-HALF PERCENT - YONKERS.
(F) EACH OF THE FOLLOWING CITIES IS AUTHORIZED TO PREEMPT THE TAXES
IMPOSED BY THE COUNTY IN WHICH IT IS LOCATED PURSUANT TO THE AUTHORITY
OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, TO THE EXTENT OF ONE-HALF
THE MAXIMUM AGGREGATE RATE AUTHORIZED UNDER SECTION TWELVE HUNDRED TEN
OF THIS ARTICLE, INCLUDING THE ADDITIONAL RATE THAT THE COUNTY IN WHICH
SUCH CITY IS LOCATED IS AUTHORIZED TO IMPOSE: AUBURN, IN CAYUGA COUNTY;
CORTLAND, IN CORTLAND COUNTY; GLOVERSVILLE AND JOHNSTOWN, IN FULTON
COUNTY; ONEIDA, IN MADISON COUNTY; ONEONTA, IN OTSEGO COUNTY. AS OF THE
DATE THIS SUBDIVISION TAKES EFFECT, ANY SUCH PREEMPTION BY SUCH A CITY
IN EFFECT ON SUCH DATE SHALL CONTINUE IN FULL FORCE AND EFFECT UNTIL THE
EFFECTIVE DATE OF A LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED OR
AMENDED BY THE CITY TO CHANGE SUCH PREEMPTION. ANY PREEMPTION BY SUCH A
S. 2509--A 164 A. 3009--A
CITY PURSUANT TO THIS SUBDIVISION THAT TAKES EFFECT AFTER THE EFFECTIVE
DATE OF THIS SUBDIVISION SHALL BE SUBJECT TO THE NOTICE REQUIREMENTS IN
SECTION TWELVE HUNDRED TWENTY-THREE OF THIS SUBPART AND TO THE OTHER
REQUIREMENTS OF THIS ARTICLE.
§ 8. Section 1262-g of the tax law, as amended by section 2 of item DD
of subpart C of part XXX of chapter 58 of the laws of 2020, is amended
to read as follows:
§ 1262-g. Oneida county allocation and distribution of net collections
from the additional [one percent rate] RATES of sales and compensating
use taxes. Notwithstanding any contrary provision of law, (A) if the
county of Oneida imposes sales and compensating use taxes at a rate
which is one percent additional to the three percent rate authorized by
section twelve hundred ten of this article, as authorized by such
section, [(a)] (I) where a city in such county imposes tax pursuant to
the authority of subdivision (a) of such section twelve hundred ten,
such county shall allocate, distribute and pay in cash quarterly to such
city one-half of the net collections attributable to such additional one
percent rate of the county's taxes collected in such city's boundaries;
[(b)] (II) where a city in such county does not impose tax pursuant to
the authority of such subdivision (a) of such section twelve hundred
ten, such county shall allocate, distribute and pay in cash quarterly to
such city not so imposing tax a portion of the net collections attribut-
able to one-half of the county's additional one percent rate of tax
calculated on the basis of the ratio which such city's population bears
to the county's total population, such populations as determined in
accordance with the latest decennial federal census or special popu-
lation census taken pursuant to section twenty of the general municipal
law completed and published prior to the end of the quarter for which
the allocation is made, which special census must include the entire
area of the county; [and (c)] provided, however, that such county shall
dedicate the first one million five hundred thousand dollars of net
collections attributable to such additional one percent rate of tax
received by such county after the county receives in the aggregate eigh-
teen million five hundred thousand dollars of net collections from such
additional one percent rate of tax [imposed for any of the periods:
September first, two thousand twelve through August thirty-first, two
thousand thirteen; September first, two thousand thirteen through August
thirty-first, two thousand fourteen; and September first, two thousand
fourteen through August thirty-first, two thousand fifteen; September
first, two thousand fifteen through August thirty-first, two thousand
sixteen; and September first, two thousand sixteen through August thir-
ty-first, two thousand seventeen; September first, two thousand seven-
teen through August thirty-first, two thousand eighteen; September
first, two thousand eighteen through August thirty-first, two thousand
twenty; and September first, two thousand twenty through August thirty-
first, two thousand twenty-three,] to an allocation on a per capita
basis, utilizing figures from the latest decennial federal census or
special population census taken pursuant to section twenty of the gener-
al municipal law, completed and published prior to the end of the year
for which such allocation is made, which special census must include the
entire area of such county, to be allocated and distributed among the
towns of Oneida county by appropriation of its board of legislators;
provided, further, that nothing herein shall require such board of
legislators to make any such appropriation until it has been notified by
any town by appropriate resolution and, in any case where there is a
village wholly or partly located within a town, a resolution of every
S. 2509--A 165 A. 3009--A
such village, embodying the agreement of such town and village or
villages upon the amount of such appropriation to be distributed to such
village or villages out of the allocation to the town or towns in which
it is located.
(B) IF THE COUNTY OF ONEIDA IMPOSES SALES AND COMPENSATING USE TAXES
AT A RATE WHICH IS ONE AND THREE-QUARTERS PERCENT ADDITIONAL TO THE
THREE PERCENT RATE AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS
ARTICLE, AS AUTHORIZED PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE
OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET
COLLECTIONS ATTRIBUTABLE TO THE ADDITIONAL THREE-QUARTERS PERCENT OF
SUCH ADDITIONAL RATE SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION
AGREEMENT ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSU-
ANT TO THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED
SIXTY-TWO OF THIS PART.
§ 9. The opening paragraph of section 1262-r of the tax law, as added
by chapter 37 of the laws of 2006, is amended to read as follows:
(1) NOTWITHSTANDING ANY CONTRARY PROVISION OF LAW, IF THE COUNTY OF
ONTARIO IMPOSES THE ADDITIONAL ONE-EIGHTH OF ONE PERCENT AND THE ADDI-
TIONAL THREE-EIGHTHS OF ONE PERCENT RATES OF TAX AUTHORIZED PURSUANT TO
CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF SECTION
TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM THE SUCH ADDI-
TIONAL THREE-EIGHTHS OF ONE PERCENT RATE OF SUCH TAXES SHALL BE SET
ASIDE FOR COUNTY PURPOSES AND SHALL NOT BE SUBJECT TO ANY AGREEMENT
ENTERED INTO BY THE COUNTY AND THE CITIES IN THE COUNTY PURSUANT TO THE
AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF THIS
PART OR THIS SECTION.
(2) Notwithstanding the provisions of subdivision (c) of section
twelve hundred sixty-two of this part to the contrary, if the cities of
Canandaigua and Geneva in the county of Ontario do not impose sales and
compensating use taxes pursuant to the authority of section twelve
hundred ten of this article and such cities and county enter into an
agreement pursuant to the authority of subdivision (c) of section twelve
hundred sixty-two of this part to be effective March first, two thousand
six, such agreement may provide that:
§ 10. The tax law is amended by adding a new section 1262-v to read as
follows:
§ 1262-V. DISPOSITION OF NET COLLECTIONS FROM THE ADDITIONAL RATE OF
SALES AND COMPENSATING USE TAX IN CLINTON COUNTY. NOTWITHSTANDING ANY
CONTRARY PROVISION OF LAW, IF THE COUNTY OF CLINTON IMPOSES THE ADDI-
TIONAL ONE PERCENT RATE OF SALES AND COMPENSATING USE TAXES AUTHORIZED
PURSUANT TO CLAUSE TWO OF SUBPARAGRAPH (I) OF THE OPENING PARAGRAPH OF
SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, NET COLLECTIONS FROM SUCH
ADDITIONAL RATE SHALL BE PAID TO THE COUNTY AND THE COUNTY SHALL SET
ASIDE SUCH NET COLLECTIONS AND USE THEM SOLELY FOR COUNTY PURPOSES. SUCH
NET COLLECTIONS SHALL NOT BE SUBJECT TO ANY REVENUE DISTRIBUTION AGREE-
MENT ENTERED INTO BY THE COUNTY AND THE CITY IN THE COUNTY PURSUANT TO
THE AUTHORITY OF SUBDIVISION (C) OF SECTION TWELVE HUNDRED SIXTY-TWO OF
THIS PART.
§ 11. Section 1262-s of the tax law, as amended by section 3 of item U
of subpart C of part XXX of chapter 58 of the laws of 2020, is amended
to read as follows:
§ 1262-s. Disposition of net collections from the additional one-quar-
ter of one percent rate of sales and compensating use taxes in the coun-
ty of Herkimer. Notwithstanding any contrary provision of law, if the
county of Herkimer imposes [the additional] SALES AND COMPENSATING USE
TAX AT A RATE THAT IS ONE AND one-quarter [of one] percent [rate of
S. 2509--A 166 A. 3009--A
sales and compensating use taxes] ADDITIONAL TO THE THREE PERCENT RATE
AUTHORIZED BY SECTION TWELVE HUNDRED TEN OF THIS ARTICLE, AS authorized
by [section twelve hundred ten-E] CLAUSE TWO OF SUBPARAGRAPH (I) OF THE
OPENING PARAGRAPH OF SECTION TWELVE HUNDRED TEN of this article [for all
or any portion of the period beginning December first, two thousand
seven and ending November thirtieth, two thousand twenty-three], the
county shall use all net collections [from such] ATTRIBUTABLE TO THE
additional one-quarter [of one] percent OF SUCH ADDITIONAL rate to pay
the county's expenses for the construction of additional correctional
facilities. The net collections from [the] SUCH ADDITIONAL ONE-QUARTER
PERCENT OF SUCH additional rate [imposed pursuant to section twelve
hundred ten-E of this article] shall be deposited in a special fund to
be created by such county separate and apart from any other funds and
accounts of the county. Any and all remaining net collections from such
additional tax, after the expenses of such construction are paid, shall
be deposited by the county of Herkimer in the general fund of such coun-
ty for any county purpose.
§ 12. The tax law is amended by adding a new section 1265 to read as
follows:
§ 1265. REFERENCES TO CERTAIN PROVISIONS AUTHORIZING ADDITIONAL RATES
OR TO EXPIRATIONS OF A PERIOD. NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY: (A) ANY REFERENCE IN ANY SECTION OF THIS CHAPTER OR OTHER
LAW, OR IN ANY LOCAL LAW, ORDINANCE, OR RESOLUTION ADOPTED PURSUANT TO
THE AUTHORITY OF THIS ARTICLE, TO NET COLLECTIONS OR REVENUES FROM A TAX
IMPOSED BY A COUNTY OR CITY PURSUANT TO THE AUTHORITY OF A CLAUSE, OR TO
A SUBCLAUSE OF A CLAUSE, OF SUBPARAGRAPH (I) OR (II) OF THE OPENING
PARAGRAPH OF SECTION TWELVE HUNDRED TEN OF THIS ARTICLE REPEALED BY
SECTION ONE OR TWO OF THE CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE
THAT ADDED THIS SECTION OR PURSUANT TO SECTION TWELVE HUNDRED TEN-E OF
THIS ARTICLE REPEALED BY SECTION FIVE OF SUCH CHAPTER SHALL BE DEEMED TO
BE A REFERENCE TO NET COLLECTIONS OR REVENUES FROM A TAX IMPOSED BY THAT
COUNTY OR CITY PURSUANT TO THE AUTHORITY OF THE EQUIVALENT PROVISION OF
CLAUSE TWO OF SUBPARAGRAPH (I) OR TO SUBPARAGRAPH (II) OF THE OPENING
PARAGRAPH OF SUCH SECTION TWELVE HUNDRED TEN AS ADDED BY SUCH SECTION
ONE OR TWO OF SUCH CHAPTER OF THE LAWS OF TWO THOUSAND TWENTY-ONE; (B)
ANY REFERENCE IN THIS CHAPTER OR IN ANY OTHER LAW RELATING TO THE EXPI-
RATION OF A PROVISION CONCERNING THE DISTRIBUTION OF REVENUE FROM THE
TAXES AUTHORIZED TO BE IMPOSED BY THE OPENING PARAGRAPH OF SECTION
TWELVE HUNDRED TEN OF THIS ARTICLE SHALL BE DISREGARDED, AND SUCH
PROVISION SHALL CONTINUE IN EFFECT UNLESS LATER AMENDED OR REPEALED.
§ 13. This act shall take effect immediately.
PART M
Section 1. Subdivision (jj) of section 1115 of the tax law, as amended
by section 1 of part V of chapter 59 of the laws of 2019, is amended to
read as follows:
(jj) Tangible personal property or services otherwise taxable under
this article sold to a related person shall not be subject to the taxes
imposed by section eleven hundred five of this article or the compensat-
ing use tax imposed under section eleven hundred ten of this article
where the purchaser can show that the following conditions have been met
to the extent they are applicable: (1)(i) the vendor and the purchaser
are referenced as either a "covered company" as described in section
243.2(f) or a "material entity" as described in section 243.2(l) of the
Code of Federal Regulations in a resolution plan that has been submitted
S. 2509--A 167 A. 3009--A
to an agency of the United States for the purpose of satisfying subpara-
graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (the "Act") or any
successor law, or (ii) the vendor and the purchaser are separate legal
entities pursuant to a divestiture directed pursuant to subparagraph 5
of paragraph (d) of section one hundred sixty-five of such act or any
successor law; (2) the sale would not have occurred between such related
entities were it not for such resolution plan or divestiture; and (3) in
acquiring such property or services, the vendor did not claim an
exemption from the tax imposed by this state or another state based on
the vendor's intent to resell such services or property. A person is
related to another person for purposes of this subdivision if the person
bears a relationship to such person described in section two hundred
sixty-seven of the internal revenue code. The exemption provided by this
subdivision shall not apply to sales made, services rendered, or uses
occurring after June thirtieth, two thousand [twenty-one] TWENTY-FOUR,
except with respect to sales made, services rendered, or uses occurring
pursuant to binding contracts entered into on or before such date; but
in no case shall such exemption apply after June thirtieth, two thousand
[twenty-four] TWENTY-SEVEN.
§ 2. This act shall take effect immediately.
PART N
Section 1. Subparagraph (vi) of paragraph 1 of subdivision (a) of
section 1134 of the tax law, as amended by section 160 of part A of
chapter 389 of the laws of 1997, is amended to read as follows:
(vi) every person described in subparagraph (i), (ii), (iii), (iv) or
(v) of this paragraph or every person who is a vendor solely by reason
of clause (D), (E) or (F) of subparagraph (i) of paragraph eight of
subdivision (b) of section eleven hundred one of this article who or
which has had its certificate of authority revoked under paragraph four
of this subdivision, shall file with the commissioner a certificate of
registration, in a form prescribed by the commissioner, at least twenty
days prior to commencing business or opening a new place of business or
such purchasing, selling or taking of possession or payment, whichever
comes first. Every person who is a vendor solely by reason of clause (D)
of subparagraph (i) of paragraph eight of subdivision (b) of section
eleven hundred one of this article shall file with the commissioner a
certificate of registration, in a form prescribed by such commissioner,
within thirty days after the day on which the cumulative total number of
occasions that such person came into the state to deliver property or
services, for the immediately preceding four quarterly periods ending on
the last day of February, May, August and November, exceeds twelve.
Every person who is a vendor solely by reason of clause (E) of subpara-
graph (i) of paragraph eight of subdivision (b) of section eleven
hundred one of this article shall file with the commissioner a certif-
icate of registration, in a form prescribed by such commissioner, within
thirty days after the day on which the cumulative total, for the imme-
diately preceding four quarterly periods ending on the last day of
February, May, August and November, of such person's gross receipts from
sales of property delivered in this state exceeds [three] FIVE hundred
thousand dollars and number of such sales exceeds one hundred. Every
person who is a vendor solely by reason of clause (F) of subparagraph
(i) of paragraph eight of subdivision (b) of section eleven hundred one
of this article shall file with the commissioner a certificate of regis-
S. 2509--A 168 A. 3009--A
tration, in a form prescribed by such commissioner, within thirty days
after the day on which tangible personal property in which such person
retains an ownership interest is brought into this state by the person
to whom such property is sold, where the person to whom such property is
sold becomes or is a resident or uses such property in any manner in
carrying on in this state any employment, trade, business or profession.
Information with respect to the notice requirements of a purchaser,
transferee or assignee and such person's liability pursuant to the
provisions of subdivision (c) of section eleven hundred forty-one of
this chapter shall be included in or accompany the certificate of regis-
tration form furnished the applicant. The commissioner shall also
include with such information furnished to each applicant general infor-
mation about the tax imposed under this article including information on
records to be kept, returns and payments, notification requirements and
forms. Such certificate of registration may be amended in accordance
with rules promulgated by the commissioner.
§ 2. This act shall take effect immediately.
PART O
Section 1. Subdivision (a) of section 1401 of the tax law, as amended
by chapter 576 of the laws of 1994, is amended to read as follows:
(a) (1) "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 unin-
corporated enterprise owned or conducted by two or more persons.
(2) "PERSON" SHALL INCLUDE ANY INDIVIDUAL, CORPORATION, PARTNERSHIP OR
LIMITED LIABILITY COMPANY OR AN OFFICER OR EMPLOYEE OF ANY CORPORATION
(INCLUDING A DISSOLVED CORPORATION), OR A MEMBER OR EMPLOYEE OF ANY
PARTNERSHIP, OR A MEMBER, MANAGER OR EMPLOYEE OF A LIMITED LIABILITY
COMPANY, WHO AS SUCH OFFICER, EMPLOYEE, MANAGER OR MEMBER IS UNDER A
DUTY TO ACT FOR SUCH CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY
OR INDIVIDUAL PROPRIETORSHIP IN COMPLYING WITH ANY REQUIREMENT OF THIS
ARTICLE, OR HAS SO ACTED.
§ 2. Subdivision (a) of section 1404 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
(a) The real estate transfer tax IMPOSED PURSUANT TO SECTION FOURTEEN
HUNDRED TWO OF THIS ARTICLE shall be paid by the grantor AND SUCH TAX
SHALL NOT BE PAYABLE, DIRECTLY OR INDIRECTLY, BY THE GRANTEE EXCEPT AS
PROVIDED IN A CONTRACT BETWEEN GRANTOR AND GRANTEE OR AS OTHERWISE
PROVIDED IN THIS SECTION. If the grantor has failed to pay the tax
imposed by this article at the time required by section fourteen hundred
ten of this article or if the grantor is exempt from such tax, the gran-
tee shall have the duty to pay the tax. Where the grantee has the duty
to pay the tax because the grantor has failed to pay, such tax shall be
the joint and several liability of the grantor and the grantee; PROVIDED
THAT IN THE EVENT OF SUCH FAILURE, THE GRANTEE SHALL HAVE A CAUSE OF
ACTION AGAINST THE GRANTOR FOR RECOVERY OF PAYMENT OF SUCH TAX, INTEREST
AND PENALTIES BY THE GRANTEE. IN THE CASE OF A CONVEYANCE OF RESIDEN-
TIAL REAL PROPERTY AS DEFINED IN SUBDIVISION (A) OF SECTION FOURTEEN
HUNDRED TWO-A OF THIS ARTICLE, IF THE TAX IMPOSED BY THIS ARTICLE IS
PAID BY THE GRANTEE PURSUANT TO A CONTRACT BETWEEN THE GRANTOR AND THE
GRANTEE, THE AMOUNT OF SUCH TAX SHALL BE EXCLUDED FROM THE CALCULATION
OF CONSIDERATION SUBJECT TO TAX UNDER THIS ARTICLE.
S. 2509--A 169 A. 3009--A
§ 3. Subdivision (a) of section 1409 of the tax law, as amended
§ 3. Subdivision (a) of section 1409 of the tax law, as amended by
chapter 297 of the laws of 2019, is amended to read as follows:
(a) (1) A joint return shall be filed by both the grantor and the
grantee for each conveyance whether or not a tax is due thereon other
than a conveyance of an easement or license to a public utility as
defined in subdivision two of section one hundred eighty-six-a of this
chapter or to a public utility which is a provider of telecommunication
services as defined in subdivision one of section one hundred eighty-
six-e of this chapter, where the consideration is two dollars or less
and is clearly stated as actual consideration in the instrument of
conveyance.
(2) When the grantor or grantee of a deed for A BUILDING USED AS resi-
dential real property containing [one- to four-] UP TO FOUR family
dwelling units is a limited liability company, the joint return shall
not be accepted for filing unless it is accompanied by a document which
identifies the names and business addresses of all members, managers,
and any other authorized persons, if any, of such limited liability
company and the names and business addresses or, if none, the business
addresses of all shareholders, directors, officers, members, managers
and partners of any limited liability company or other business entity
that are to be the members, managers or authorized persons, if any, of
such limited liability company. The identification of such names and
addresses shall not be deemed an unwarranted invasion of personal priva-
cy pursuant to article six of the public officers law. If any such
member, manager or authorized person of the limited liability company is
itself a limited liability company or other business entity OTHER THAN A
PUBLICLY TRADED ENTITY, A REIT, A UPREIT, OR A MUTUAL FUND, the names
and addresses of the shareholders, directors, officers, members, manag-
ers and partners of the limited liability company or other business
entity shall also be disclosed until full disclosure of ultimate owner-
ship by natural persons is achieved. For purposes of this subdivision,
the terms "members", "managers", "authorized person", "limited liability
company" and "other business entity" shall have the same meaning as
those terms are defined in section one hundred two of the limited
liability company law.
(3) The return shall be filed with the recording officer before the
instrument effecting the conveyance may be recorded. However, if the tax
is paid to the commissioner pursuant to section fourteen hundred ten of
this article, the return shall be filed with such commissioner at the
time the tax is paid. In that instance, a receipt evidencing the filing
of the return and the payment of tax shall be filed with the recording
officer before the instrument effecting the conveyance may be recorded.
The recording officer shall handle such receipt in the same manner as a
return filed with the recording officer.
§ 4. Subdivision (h) of section 1418 of the tax law, as added by
section 7 of part X of chapter 56 of the laws of 2010 and as further
amended by subdivision (c) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
(h) Notwithstanding the provisions of subdivision (a) of this section,
the commissioner may furnish information relating to real property
transfers obtained or derived from returns filed pursuant to this arti-
cle in relation to the real estate transfer tax, to the extent that such
information is also required to be reported to the commissioner by
section three hundred thirty-three of the real property law and section
five hundred seventy-four of the real property tax law and the rules
S. 2509--A 170 A. 3009--A
adopted thereunder, provided such information was collected through a
combined process established pursuant to an agreement entered into with
the commissioner pursuant to paragraph viii of subdivision one-e of
section three hundred thirty-three of the real property law. The commis-
sioner may redisclose such information to the extent authorized by
section five hundred seventy-four of the real property tax law. THE
COMMISSIONER MAY ALSO DISCLOSE ANY INFORMATION REPORTED PURSUANT TO
PARAGRAPH TWO OF SUBDIVISION (A) OF SECTION FOURTEEN HUNDRED NINE OF
THIS ARTICLE.
§ 5. This act shall take effect immediately; provided however that
sections one and two of this act shall take effect July 1, 2021, and
shall apply to conveyances occurring on or after such date other than
conveyances that are made pursuant to binding written contracts entered
into on or before April 1, 2021, provided that the date of execution of
such contract is confirmed by independent evidence, such as the record-
ing of the contract, payment of a deposit or other facts and circum-
stances as determined by the commissioner of taxation and finance.
PART P
Section 1. Section 480-a of the tax law is amended by adding a new
subdivision 6 to read as follows:
6. (A) NO RETAIL DEALER WHO HAS ITS RETAIL DEALER REGISTRATION
CANCELLED, SUSPENDED OR REVOKED PURSUANT TO THIS SECTION OR HAS BEEN
FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS PURSUANT TO PARA-
GRAPH (J) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED EIGHTY OF THIS
ARTICLE SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN ANY PLACE OF
BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE IN THIS STATE
BEGINNING ON THE TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCA-
TION, OR FORBIDDANCE AND CONTINUING FOR THE DURATION OF THE SAME;
PROVIDED HOWEVER, SUCH RETAIL DEALER SHALL NOT BE PROHIBITED BEFORE THE
TENTH DAY AFTER SUCH CANCELLATION, SUSPENSION, REVOCATION, OR FORBID-
DANCE FROM SELLING OR TRANSFERRING ITS INVENTORY OF LAWFULLY STAMPED
CIGARETTES OR TOBACCO PRODUCTS ON WHICH THE TAXES IMPOSED BY THIS ARTI-
CLE HAVE BEEN ASSUMED OR PAID TO A PROPERLY REGISTERED RETAIL DEALER
WHOSE REGISTRATION IS NOT CANCELLED, SUSPENDED, OR REVOKED OR WHO HAS
NOT BEEN FORBIDDEN FROM SELLING CIGARETTES OR TOBACCO PRODUCTS.
(B) NO RETAIL DEALER SHALL POSSESS CIGARETTES OR TOBACCO PRODUCTS IN
ANY PLACE OF BUSINESS, CART, STAND, TRUCK OR OTHER MERCHANDISING DEVICE
IN THIS STATE UNLESS IT HAS OBTAINED A VALID RETAIL DEALER REGISTRATION
FROM THE COMMISSIONER.
(C) THE POSSESSION OF CIGARETTES OR TOBACCO PRODUCTS IN VIOLATION OF
PARAGRAPH (A) OR (B) OF THIS SUBDIVISION SHALL BE PRESUMPTIVE EVIDENCE
THAT SUCH CIGARETTES OR TOBACCO PRODUCTS ARE BEING SOLD IN VIOLATION OF
THIS SECTION AND SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE AND, IN
ADDITION TO ANY OTHER APPLICABLE PENALTIES, SHALL BE SUBJECT TO THE
PENALTIES AUTHORIZED BY SUBDIVISION THREE OF THIS SECTION.
§ 2. Subparagraph (A) of paragraph (4) of subdivision (a) of section
eleven hundred thirty-four of the tax law, as amended by chapter 59 of
the laws of 2020, is amended to read as follows: (A) Where a person who
holds a certificate of authority (i) willfully fails to file a report or
return required by this article, (ii) willfully files, causes to be
filed, gives or causes to be given a report, return, certificate or
affidavit required under this article which is false, (iii) willfully
fails to comply with the provisions of paragraph two or three of subdi-
vision (e) of section eleven hundred thirty-seven of this article, (iv)
S. 2509--A 171 A. 3009--A
willfully fails to prepay, collect, truthfully account for or pay over
any tax imposed under this article or pursuant to the authority of arti-
cle twenty-nine of this chapter, (v) fails to obtain a bond pursuant to
paragraph two of subdivision (e) of section eleven hundred thirty-seven
of this part, or fails to comply with a notice issued by the commission-
er pursuant to paragraph three of such subdivision, (vi) has been
convicted of a crime provided for in this chapter, [or] (vii) where such
person, or any person affiliated with such person as such term is
defined in subdivision twenty-one of section four hundred seventy of
this chapter, has had a retail dealer registration issued pursuant to
section four hundred eighty-a of this chapter revoked pursuant to
subparagraph (iii) of paragraph (a) of subdivision four of such section
four hundred eighty-a, OR (VIII) HAS NOT OBTAINED A VALID RETAIL DEALER
REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER AND
SUCH PERSON POSSESSES OR SELLS UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES
OF CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, the
commissioner may revoke or suspend such certificate of authority and all
duplicates thereof. Provided, however, that the commissioner may revoke
or suspend a certificate of authority based on (A) the grounds set forth
in clause (vi) of this subparagraph only where the conviction referred
to occurred not more than one year prior to the date of revocation or
suspension; and provided further that where the commissioner revokes or
suspends a certificate of authority based on the grounds set forth in
clause (vii) of this subparagraph, such suspension or revocation shall
continue for as long as the revocation of the retail dealer registration
pursuant to section four hundred eighty-a of this chapter remains in
effect, OR (B) THE GROUNDS SET FORTH IN CLAUSE (VIII) OF THIS SUBPARA-
GRAPH, SUCH SUSPENSION OR REVOCATION SHALL BE FOR A PERIOD OF FIVE
YEARS.
§ 3. Subparagraph (B) of paragraph (4) of subdivision (a) of section
eleven hundred thirty-four of the tax law, as amended by chapter 59 of
the laws of 2020, is amended to read as follows:
(B) Where a person files a certificate of registration for a certif-
icate of authority under this subdivision and in considering such appli-
cation the commissioner ascertains that (i) any tax imposed under this
chapter or any related statute, as defined in section eighteen hundred
of this chapter, has been finally determined to be due from such person
and has not been paid in full, (ii) a tax due under this article or any
law, ordinance or resolution enacted pursuant to the authority of arti-
cle twenty-nine of this chapter has been finally determined to be due
from an officer, director, partner or employee of such person, and,
where such person is a limited liability company, also a member or
manager of such person, in the officer's, director's, partner's,
member's, manager's or employee's capacity as a person required to
collect tax on behalf of such person or another person and has not been
paid, (iii) such person has been convicted of a crime provided for in
this chapter within one year from the date on which such certificate of
registration is filed, (iv) an officer, director, partner or employee of
such person, and, where such person is a limited liability company, also
a member or manager of such person, which officer, director, partner,
member, manager or employee is a person required to collect tax on
behalf of such person filing a certificate of registration has in the
officer's, director's, partner's, member's, manager's or employee's
capacity as a person required to collect tax on behalf of such person or
of another person been convicted of a crime provided for in this chapter
within one year from the date on which such certificate of registration
S. 2509--A 172 A. 3009--A
is filed, (v) a shareholder owning more than fifty percent of the number
of shares of stock of such person (where such person is a corporation)
entitling the holder thereof to vote for the election of directors or
trustees, who owned more than fifty percent of the number of such shares
of another person (where such other person is a corporation) at the time
any tax imposed under this chapter or any related statute as defined in
section eighteen hundred of this chapter was finally determined to be
due and where such tax has not been paid in full, or at the time such
other person was convicted of a crime provided for in this chapter with-
in one year from the date on which such certificate of registration is
filed, (vi) a certificate of authority issued to such person has been
revoked or suspended pursuant to subparagraph (A) of this paragraph
within one year from the date on which such certificate of registration
is filed, [or] (vii) a retail dealer registration issued pursuant to
section four hundred eighty-a of this chapter to such person, or to any
person affiliated with such person as such term is defined in subdivi-
sion twenty-one of section four hundred seventy of this chapter, has
been revoked pursuant to subparagraph (iii) of paragraph (a) of subdivi-
sion four of such section four hundred eighty-a, where such revocation
remains in effect, OR (VIII) SUCH PERSON HAS NOT OBTAINED A VALID RETAIL
DEALER REGISTRATION UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS CHAPTER
AND HAS POSSESSED OR SOLD UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES OF
CIGARETTES THREE OR MORE TIMES WITHIN A PERIOD OF FIVE YEARS, the
commissioner may refuse to issue a certificate of authority; PROVIDED
HOWEVER THAT UNDER THE CIRCUMSTANCES DESCRIBED IN CLAUSE (VIII) OF THIS
SUBPARAGRAPH, SUCH PERSON SHALL NOT BE ELIGIBLE TO SUBMIT A CERTIFICATE
OF REGISTRATION FOR A CERTIFICATE OF AUTHORITY UNTIL FIVE YEARS AFTER
ITS LAST POSSESSION OR SALE OF UNSTAMPED OR UNLAWFULLY STAMPED PACKAGES
OF CIGARETTES WITHIN SUCH FIVE YEAR PERIOD.
§ 4. Any retail dealer who, prior to the effective date of this act,
had its retail dealer registration cancelled, suspended, or revoked
pursuant to section four hundred eighty-a of the tax law or was forbid-
den from selling cigarettes or tobacco products pursuant to paragraph
(j) of subdivision one of section four hundred eighty of the tax law and
such cancellation, suspension, revocation, or forbiddance remains in
effect as of the effective date of this act, shall be prohibited from
possessing cigarettes and tobacco products beginning on the tenth day
after the effective date of this act and continuing for as long as such
cancellation, suspension, revocation, or forbiddance shall remain in
effect; provided however, such retail dealer shall not be prohibited
before the tenth day after the effective date of this act from selling
or transferring its inventory of lawfully stamped cigarettes or tobacco
products on which the taxes imposed by this article have been assumed or
paid to a properly registered retail dealer whose registration is not
cancelled, suspended, or revoked or who has not been forbidden from
selling cigarettes or tobacco products.
§ 5. This act shall take effect immediately.
PART Q
Section 1. Subdivision 1 of section 429 of the tax law, as amended by
chapter 433 of the laws of 1978, is amended to read as follows:
1. Every distributor, noncommercial importer or other person shall, on
or before the twentieth day of each month, file with the department of
taxation and finance a return, on forms to be prescribed by the [tax
commission] COMMISSIONER and furnished by such department, stating sepa-
S. 2509--A 173 A. 3009--A
rately the number of gallons, or lesser quantity, of beers, and the
number of liters, or lesser quantity, of wines and liquors sold or used
by such distributor, noncommercial importer or other person in this
state during the preceding calendar month, except that the [tax commis-
sion] COMMISSIONER may, if [it] HE OR SHE deems it necessary [in order]
to [insure] FACILITATE the EFFICIENT REPORTING AND payment of the tax
imposed by this article, require returns to be made at such times and
covering such periods as [it] HE OR SHE may deem necessary. Such return
shall contain such further information as the [tax commission] COMMIS-
SIONER shall require. The fact that the name of the distributor, noncom-
mercial importer or other person is signed to a filed return shall be
prima facie evidence for all purposes that the return was actually
signed by such distributor, noncommercial importer or other person.
§ 2. Section 505 of the tax law, as amended by section 2 of part E of
chapter 60 of the laws of 2007, is amended to read as follows:
§ 505. Returns. Every carrier subject to this article and every carri-
er to whom a certificate of registration was issued shall file on or
before the last day of each month a return for the preceding calendar
month where a carrier's total tax liability under this article for the
preceding calendar year exceeded [four] TWELVE thousand dollars. Where a
carrier's total tax liability under this article for the preceding
calendar year did not exceed [four] TWELVE thousand dollars or where a
carrier was not subject to such tax in the preceding calendar year,
returns shall be filed quarterly, on or before the last day of the
calendar month following each of the calendar quarters: January through
March, April through June, July through September and October through
December. Provided, however, if the commissioner consents thereto in
writing, any carrier may file a return on or before the thirtieth day
after the close of any different period, if the carrier's books are
regularly kept on a periodic basis other than a calendar month or quar-
ter. The commissioner may permit the filing of returns on an annual
basis, provided the carrier was subject to the tax under this article
during the entire preceding calendar year and the carrier's total tax
liability under this article for such year did not exceed [two hundred
fifty] TWELVE HUNDRED dollars. Such annual returns shall be filed on or
before January thirty-first of the succeeding calendar year. Returns
shall be filed with the commissioner on forms to be furnished by such
commissioner for such purpose and shall contain such data, information
or matter as the commissioner may require to be included therein. The
fact that a carrier's name is signed to a filed return shall be prima
facie evidence for all purposes that the return was actually signed by
such carrier. The commissioner may grant a reasonable extension of time
for filing returns whenever good cause exists and may waive the filing
of returns if a carrier is not subject to the tax imposed by this arti-
cle for the period covered by the return. Every return shall have
annexed thereto a certification to the effect that the statements
contained therein are true.
§ 3. This act shall take effect immediately; provided, however, that
section two of this act shall apply to tax returns for taxable periods
beginning on or after January 1, 2022.
PART R
Section 1. Section 1280 of the tax law is amended by adding a new
subdivision (v) to read as follows:
S. 2509--A 174 A. 3009--A
(V) "TECHNOLOGY SERVICE PROVIDER" OR "TSP" MEANS A PERSON THAT ACTS BY
EMPLOYMENT, CONTRACT OR OTHERWISE ON BEHALF OF ONE OR MORE TAXICAB
OWNERS OR HAIL VEHICLE OWNERS TO COLLECT THE TRIP RECORD FOR A TAXICAB
TRIP OR HAIL VEHICLE TRIP.
§ 2. Subdivision (b) of section 1283 of the tax law, as amended by
chapter 9 of the laws of 2012, is amended to read as follows:
(b) (1) If the taxicab owner has designated an agent, then the agent
shall be jointly liable with the taxicab owner for the tax on trips
occurring during the period that such designation is in effect. Even if
the TLC has specified that the taxicab owner's agent cannot operate as
an agent, that agent shall be jointly liable with the taxicab owner if
the agent has acted for the taxicab owner. During the period that a
taxicab owner's designation of an agent is in effect, the agent shall
file the returns required by this article and pay any tax due with such
return, but the taxicab owner shall not be relieved of liability for
tax, penalty or interest due under this article, or for the filing of
returns required to be filed, unless the agent has timely filed accurate
returns and timely paid the tax required to be paid under this article.
If a taxicab owner has designated an agent, then the agent must perform
any act this article requires the taxicab owner to perform, but the
failure of such agent to perform any such act shall not relieve the
taxicab owner from the obligation to perform such act or from any
liability that may arise from failure to perform the act.
(2) (A) NOTWITHSTANDING THE FOREGOING, A TSP THAT COLLECTS THE TRIP
RECORD AND THE TRIP FARE ON BEHALF OF A TAXICAB OWNER OR A HAIL VEHICLE
OWNER SHALL BE JOINTLY LIABLE WITH THE TAXICAB OWNER OR HAIL VEHICLE
OWNER FOR THE TAX DUE ON SUCH TRIPS. FOR ANY PERIOD THAT THE TSP
COLLECTS TRIP RECORDS ON BEHALF OF A TAXICAB OWNER OR HAIL VEHICLE
OWNER, THE TSP SHALL FILE RETURNS REPORTING ALL TRIP RECORDS AND, AFTER
RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH
SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE TAXES DUE ON
ALL FARES COLLECTED BY THE TSP.
(B) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN SUBPARAGRAPH (A) OF
THIS PARAGRAPH, SHALL ALSO REMIT THE TAXES DUE ON ANY TAXICAB TRIP OR
HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT DID NOT
COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY SUCH
TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY PROCEEDS TO
THE TAXICAB OWNER OR HAIL VEHICLE OWNER. IF THE TSP FAILS TO COMPLY
WITH THE REQUIREMENTS OF THIS SUBPARAGRAPH, SUCH TSP SHALL BE LIABLE FOR
THE TAXES DUE ON SUCH TRIPS UP TO THE AMOUNT IT RELEASED TO THE TAXICAB
OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON BEHALF OF SUCH TAXICAB
OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXICAB OWNER, HAIL VEHICLE
OWNER OR THEIR AGENTS SHALL NOT BE RELIEVED OF ANY LIABILITY FOR THE
TAX, PENALTY OR INTEREST DUE UNDER THIS ARTICLE, OR FOR FILING OF
RETURNS REQUIRED TO BE FILED, UNLESS THE TSP HAS TIMELY FILED ACCURATE
RETURNS AND TIMELY PAID THE TAX REQUIRED TO BE PAID UNDER THIS ARTICLE.
§ 3. Subdivision (a) of section 1299-B of the tax law, as added by
section 2 of part NNN of chapter 59 of the laws of 2018, is amended to
read as follows:
(a) Notwithstanding any provision of law to the contrary, any person
that dispatches a motor vehicle by any means that provides transporta-
tion that is subject to a surcharge imposed by this article, including
transportation network companies as defined in article forty-four-B of
the vehicle and traffic law, shall be liable for the surcharge imposed
by this article, except that in the case of taxicab trips and HAIL vehi-
cle trips that are also subject to tax pursuant to article twenty-nine-A
S. 2509--A 175 A. 3009--A
of this chapter[, only the taxicab owner or HAIL base liable for that
tax shall be the person liable for the surcharge imposed by this arti-
cle]: (1) THE TSP SHALL BE LIABLE FOR THE SURCHARGE IMPOSED BY THIS
ARTICLE FOR ALL TRIPS FOR WHICH THE TSP COLLECTED THE TRIP RECORD AND
THE SURCHARGE, AND SHALL BE RESPONSIBLE FOR FILING RETURNS; AND, AFTER
RETAINING ANY FEES TO WHICH IT IS ENTITLED PURSUANT TO A CONTRACT WITH
SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, SHALL REMIT THE SURCHARGES ON
SUCH TRIPS TO THE DEPARTMENT.
(2) THE TSP, AFTER RETAINING THE FEES DESCRIBED IN PARAGRAPH ONE OF
THIS SUBDIVISION, SHALL ALSO REMIT THE SURCHARGES DUE ON ANY TAXICAB
TRIP OR HAIL VEHICLE TRIP FOR WHICH IT MAINTAINED THE TRIP RECORD BUT
DID NOT COLLECT THE FARE, FROM ANY FARES IT COLLECTED ON BEHALF OF ANY
SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER, BEFORE IT RELEASES ANY
PROCEEDS TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER. WHENEVER THE TSP
FAILS TO COMPLY WITH THE REQUIREMENTS OF THE PRECEDING SENTENCE, THE TSP
SHALL BE LIABLE FOR THE SURCHARGES DUE ON SUCH TRIPS UP TO THE AMOUNT IT
RELEASED TO THE TAXICAB OWNER OR HAIL VEHICLE OWNER, OR ANY PERSON ON
BEHALF OF SUCH TAXICAB OWNER OR HAIL VEHICLE OWNER. HOWEVER, THE TAXI-
CAB OWNER OR HAIL BASE SHALL BE JOINTLY AND SEVERALLY LIABLE WITH THE
TSP FOR SUCH SURCHARGES. For purposes of this section, the terms "taxi-
cab trips," "HAIL vehicle trips," "taxicab owner," [and] "HAIL base",
AND "TSP" shall have the same meaning as they do in section twelve
hundred eighty of this chapter.
§ 4. Section 1299-F of the tax law is amended by adding a new subdivi-
sion (e) to read as follows:
(E) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, PERMIT THE PROPER OFFI-
CER OF THE TAXI AND LIMOUSINE COMMISSION OF THE CITY OF NEW YORK (TLC)
OR THE DULY AUTHORIZED REPRESENTATIVE OF 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 TAX LIABILITY UNDER
THIS ARTICLE; BUT SUCH PERMISSION SHALL BE GRANTED OR SUCH INFORMATION
FURNISHED ONLY IF THE TLC SHALL HAVE FURNISHED THE COMMISSIONER WITH ALL
INFORMATION REQUESTED BY THE COMMISSIONER PURSUANT TO THIS ARTICLE AND
SHALL HAVE PERMITTED THE COMMISSIONER OR THE COMMISSIONER'S AUTHORIZED
REPRESENTATIVE TO MAKE ANY INSPECTION OF ANY RECORDS OR REPORTS CONCERN-
ING FOR-HIRE TRANSPORTATION TRIPS SUBJECT TO THE SURCHARGE IMPOSED BY
THIS ARTICLE, AND ANY PERSONS REQUIRED TO COLLECT SUCH SURCHARGE, FILED
WITH OR POSSESSED BY THE TLC THAT THE COMMISSIONER MAY HAVE REQUESTED
FROM THE TLC. PROVIDED, FURTHER, THAT THE COMMISSIONER MAY DISCLOSE TO
THE TLC WHETHER OR NOT A PERSON LIABLE FOR THE SURCHARGE IMPOSED BY THIS
ARTICLE HAS PAID ALL OF THE SURCHARGES DUE UNDER THIS ARTICLE AS OF ANY
GIVEN DATE.
§ 5. This act shall take effect immediately and shall apply to trips
occurring on or after July 1, 2021.
PART S
Section 1. Paragraph 1 of subdivision (g) of section 32 of the tax
law, as added by section 2 of part VV of chapter 59 of the laws of 2009,
is amended to read as follows:
(1) If a tax return preparer or facilitator is required to register or
re-register with the department pursuant to paragraph one or three of
subdivision (b) of this section, as applicable, and fails to do so in
S. 2509--A 176 A. 3009--A
accordance with the terms of this section, then the tax return preparer
[of] OR facilitator must pay a penalty of [two] FIVE hundred [fifty]
dollars FOR THE FIRST DAY OF NON-COMPLIANCE AND TWO HUNDRED DOLLARS FOR
EACH SUBSEQUENT DAY OF NON-COMPLIANCE THEREAFTER. THE MAXIMUM PENALTY
THAT MAY BE IMPOSED UNDER THIS PARAGRAPH ON ANY TAX RETURN PREPARER OR
FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN THOUSAND
DOLLARS. [Provided, however, that if the tax return preparer or facili-
tator complies with the registration requirements of this section within
ninety calendar days after notification of assessment of this penalty is
sent by the department, then this penalty must be abated. If the tax
return preparer or facilitator continues to fail to register or re-re-
gister after the ninety calendar day period, the tax return preparer or
facilitator must pay an additional penalty of five hundred dollars if
the failure is for not more than one month, with an additional five
hundred dollars for each additional month or fraction thereof during
which the failure continues. Once the ninety calendar days specified in
this paragraph have expired, the] THE penalty can be waived only for
good cause shown by the tax return preparer or facilitator.
§ 2. Paragraph 2 of subdivision (g) of section 32 of the tax law, as
added by section 2 of part VV of chapter 59 of the laws of 2009, is
amended to read as follows:
(2) If a commercial tax return preparer fails to pay the fee as
required in paragraph one of subdivision (c) of this section, for a
calendar year, then the commercial tax return preparer must pay a penal-
ty of fifty dollars for each return the commercial tax return preparer
has filed with the department in that calendar year. [Provided however,
that if the commercial tax return preparer complies with the payment
requirements of paragraph one of subdivision (c) of this section, within
ninety calendar days after notification of the assessment of this penal-
ty is sent by the department, then this penalty must be abated.] The
maximum penalty that may be imposed under this paragraph on any commer-
cial tax return preparer during any calendar year must not exceed [five]
TEN thousand dollars. [Once the ninety calendar days specified in this
paragraph have expired, the] THE penalty can be waived only for good
cause shown by the commercial tax return preparer.
§ 3. Section 32 of the tax law is amended by adding a new subdivision
(h) to read as follows:
(H) (1) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND
CONSPICUOUSLY DISPLAY A COPY OF THEIR REGISTRATION CERTIFICATE ISSUED
PURSUANT TO THIS SECTION, FOR THE CURRENT REGISTRATION PERIOD, AT THEIR
PLACE OF BUSINESS AND AT ANY OTHER LOCATION WHERE THEY PROVIDE TAX
RETURN PREPARATION AND/OR FACILITATION SERVICES, IN AN AREA WHERE
TAXPAYERS USING THEIR SERVICES ARE ABLE TO SEE AND REVIEW SUCH REGISTRA-
TION CERTIFICATE.
(2) TAX RETURN PREPARERS AND FACILITATORS MUST PROMINENTLY AND
CONSPICUOUSLY DISPLAY AT THEIR PLACE OF BUSINESS AND AT ANY OTHER
LOCATION WHERE THEY PROVIDE TAX RETURN PREPARATION AND/OR FACILITATION
SERVICES THE FOLLOWING DOCUMENTS:
(A) A CURRENT PRICE LIST, IN AT LEAST FOURTEEN-POINT TYPE, THAT
INCLUDES, BUT IS NOT LIMITED TO, A LIST OF ALL SERVICES OFFERED BY THE
TAX RETURN PREPARER AND/OR FACILITATOR; THE MINIMUM FEE CHARGED FOR EACH
SERVICE, INCLUDING THE FEE CHARGED FOR EACH TYPE OF FEDERAL OR NEW YORK
STATE TAX RETURN TO BE PREPARED AND FACILITATION SERVICE TO BE PROVIDED;
AND A LIST OF EACH FACTOR THAT MAY INCREASE A STATED FEE AND THE SPECIF-
IC ADDITIONAL FEES OR RANGE OF POSSIBLE ADDITIONAL FEES WHEN EACH FACTOR
APPLIES; AND
S. 2509--A 177 A. 3009--A
(B) A COPY OF THE MOST RECENT CONSUMER BILL OF RIGHTS REGARDING TAX
PREPARERS PUBLISHED BY THE DEPARTMENT PURSUANT TO SECTION THREE HUNDRED
SEVENTY-TWO OF THE GENERAL BUSINESS LAW.
(3) A TAX RETURN PREPARER OR FACILITATOR WHO FAILS TO COMPLY WITH ANY
OF THE REQUIREMENTS OF THIS SUBDIVISION MUST PAY A PENALTY OF FIVE
HUNDRED DOLLARS FOR THE FIRST DAY OF NON-COMPLIANCE AND TWO HUNDRED
DOLLARS FOR EACH SUBSEQUENT DAY OF NON-COMPLIANCE THEREAFTER. THE MAXI-
MUM PENALTY THAT MAY BE IMPOSED UNDER THIS SUBDIVISION ON ANY TAX RETURN
PREPARER OR FACILITATOR DURING ANY CALENDAR YEAR MUST NOT EXCEED TEN
THOUSAND DOLLARS. THE PENALTY CAN BE WAIVED ONLY FOR GOOD CAUSE SHOWN BY
THE TAX RETURN PREPARER OR FACILITATOR.
§ 4. Subdivision (g) of section 32 of the tax law, as added by section
2 of part VV of chapter 59 of the laws of 2009, is relettered subdivi-
sion (i).
§ 5. This act shall take effect immediately; provided, however, that
paragraph (3) of subdivision (h) of section 32 of the tax law, as added
by section three of this act, shall take effect January 1, 2022.
PART T
Section 1. Section 2016 of the tax law, as amended by chapter 401 of
the laws of 1987, is amended to read as follows:
§ 2016. Judicial review. A decision of the tax appeals tribunal, which
is not subject to any further administrative review, shall finally and
irrevocably decide all the issues which were raised in proceedings
before the division of tax appeals upon which such decision is based
unless, within four months after notice of such decision is served by
the tax appeals tribunal upon every party to the proceeding before such
tribunal by certified mail or personal service, the petitioner who
commenced the proceeding [petitions] OR THE COMMISSIONER, OR BOTH, PETI-
TION for judicial review in the manner provided by article seventy-eight
of the civil practice law and rules, except as otherwise provided in
this [section] CHAPTER. Such service by certified mail shall be
complete upon deposit of such notice, enclosed in a post-paid properly
addressed wrapper, in a post office or official depository under the
exclusive care and custody of the United States postal service. [The]
WHERE THE petitioner WHO COMMENCED THE PROCEEDING BEFORE THE DIVISION OF
TAX APPEALS FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION shall
designate the tax appeals tribunal and the commissioner [of taxation and
finance] as respondents in the proceeding for judicial review. WHERE
THE COMMISSIONER FILES A PETITION FOR JUDICIAL REVIEW, THE PETITION
SHALL DESIGNATE THE TAX APPEALS TRIBUNAL AND THE PETITIONER WHO
COMMENCED THE PROCEEDING BEFORE THE DIVISION OF TAX APPEALS AS RESPOND-
ENTS IN THE PROCEEDING FOR JUDICIAL REVIEW. The tax appeals tribunal
shall not participate in proceedings for judicial review of its deci-
sions and such proceedings for judicial review shall be commenced in the
appellate division of the supreme court, third department. In all other
respects the provisions and standards of article seventy-eight of the
civil practice law and rules shall apply. The record to be reviewed in
such proceedings for judicial review shall include the determination of
the administrative law judge, the decision of the tax appeals tribunal,
the stenographic transcript of the hearing before the administrative law
judge, the transcript of any oral proceedings before the tax appeals
tribunal and any exhibit or document submitted into evidence at any
proceeding in the division of tax appeals upon which such decision is
based.
S. 2509--A 178 A. 3009--A
§ 2. This act shall take effect immediately and shall apply to deci-
sions and orders issued by the tax appeals tribunal on or after such
date.
PART U
Section 1. Paragraphs i and v of subdivision 1-e of section 333 of the
real property law, as amended by section 5 of part X of chapter 56 of
the laws of 2010 and as further amended by subdivision (d) of section 1
of part W of chapter 56 of the laws of 2010, are amended to read as
follows:
i. A recording officer shall not record or accept for [record] RECORD-
ING any conveyance of real property affecting land in New York state
unless accompanied by ONE OF THE FOLLOWING:
(1) A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE
PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF
THE TAX LAW; OR
(2) a transfer report form prescribed by the commissioner of taxation
and finance [or in lieu thereof, confirmation from the commissioner that
the required data has been reported to it pursuant to paragraph vii of
this subdivision], and the fee prescribed pursuant to subdivision three
of this section.
v. (1) The provisions of this subdivision shall not operate to invali-
date any conveyance of real property where one or more of the items
designated as subparagraphs one through eight of paragraph ii of this
subdivision, have not been reported or which has been erroneously
reported, nor affect the record contrary to the provisions of this
subdivision, nor impair any title founded on such conveyance or record.
[Such]
(2) SUBJECT TO THE PROVISIONS OF SECTION FOURTEEN HUNDRED TWENTY-THREE
OF THE TAX LAW, SUCH form shall contain an affirmation as to the accura-
cy of the contents made both by the transferor or transferors and by the
transferee or transferees. Provided, however, that if the conveyance of
real property occurs as a result of a taking by eminent domain, tax
foreclosure, or other involuntary proceeding such affirmation may be
made only by either the condemnor, tax district, or other party to whom
the property has been conveyed, or by that party's attorney. The affir-
mations required by this paragraph shall be made in the form and manner
prescribed by the commissioner, provided that notwithstanding any
provision of law to the contrary, affirmants may be allowed, but shall
not be required, to sign such affirmations electronically.
§ 2. Paragraphs vii and viii of subdivision 1-e of section 333 of the
real property law are REPEALED.
§ 3. Subdivision 3 of section 333 of the real property law, as amended
by section 2 of part JJ of chapter 56 of the laws of 2009 and as further
amended by subdivision (d) of section 1 of part W of chapter 56 of the
laws of 2010, is amended to read as follows:
3. [The] (I) WHEN A recording officer [of every county and the city of
New York] IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPA-
NIED BY A RECEIPT ISSUED BY THE COMMISSIONER OF TAXATION AND FINANCE
PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF
THE TAX LAW, SUCH RECORDING OFFICER SHALL BE RELIEVED OF THE RESPONSI-
BILITY TO COLLECT THE FEE DESCRIBED BY THIS SUBDIVISION. HE OR SHE
SHALL NONETHELESS BE ENTITLED TO THE PORTION OF SUCH FEE THAT HE OR SHE
WOULD OTHERWISE HAVE DEDUCTED PURSUANT TO THIS SUBDIVISION, AS PROVIDED
S. 2509--A 179 A. 3009--A
BY SUBDIVISION (B) OF SECTION FOURTEEN HUNDRED TWENTY-THREE OF THE TAX
LAW.
(II) WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR
RECORDING THAT IS NOT ACCOMPANIED BY SUCH A RECEIPT, HE OR SHE shall
impose a fee of two hundred fifty dollars, or in the case of a transfer
involving qualifying residential or farm property as defined by para-
graph iv of subdivision one-e of this section, a fee of one hundred
twenty-five dollars, for every real property transfer reporting form
submitted for recording as required under SUBPARAGRAPH TWO OF PARAGRAPH
I OF subdivision one-e of this section. In the city of New York, the
recording officer shall impose a fee of one hundred dollars for each
real property transfer tax form filed in accordance with chapter twen-
ty-one of title eleven of the administrative code of the city of New
York, except where a real property transfer reporting form is also
submitted for recording for the transfer as required under SUBPARAGRAPH
TWO OF PARAGRAPH I OF subdivision one-e of this section. The recording
officer shall deduct nine dollars from such fee and remit the remainder
of the revenue collected to the commissioner of taxation and finance
every month for deposit into the general fund. The amount duly deducted
by the recording officer shall be retained by the county or by the city
of New York.
§ 4. Subsection (d) of section 663 of the tax law, as amended by
section 1 of part P of chapter 686 of the laws of 2003, is amended to
read as follows:
(d) A recording officer shall not record or accept for [record]
RECORDING any deed unless ONE OF THE FOLLOWING CONDITIONS IS SATISFIED:
(1) IT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMISSIONER INDICAT-
ING THAT THE ESTIMATED TAX REQUIRED BY THIS SECTION HAS BEEN PAID TO THE
COMMISSIONER EITHER ELECTRONICALLY OR AS OTHERWISE PRESCRIBED BY HIM OR
HER;
(2) IT IS accompanied by a form prescribed by the commissioner pursu-
ant to subsection (b) of this section and the payment of any estimated
tax shown as payable on such form[,]; or [unless]
(3) such RECEIPT OR form includes a certification by the transferor
that this section is inapplicable to the sale or transfer.
§ 5. Subdivision (c) of section 1407 of the tax law, as amended by
chapter 61 of the laws of 1989, is amended to read as follows:
(c) [Every] 1. WHEN A recording officer designated to act as such
agent IS PRESENTED WITH A CONVEYANCE FOR RECORDING THAT IS ACCOMPANIED
BY A RECEIPT ISSUED BY THE COMMISSIONER PURSUANT TO SUBDIVISION (C) OF
SECTION FOURTEEN HUNDRED TWENTY-THREE OF THIS ARTICLE, SUCH RECORDING
OFFICER SHALL BE RELIEVED OF THE RESPONSIBILITY TO COLLECT THE REAL
ESTATE TRANSFER TAX THEREON. HE OR SHE SHALL NONETHELESS BE ENTITLED TO
THE PORTION OF SUCH TAX THAT HE OR SHE WOULD OTHERWISE HAVE RETAINED
PURSUANT TO THIS SUBDIVISION, AS PROVIDED BY SUBDIVISION (B) OF SECTION
FOURTEEN HUNDRED TWENTY-THREE OF THE TAX LAW.
2. WHEN A RECORDING OFFICER IS PRESENTED WITH A CONVEYANCE FOR RECORD-
ING THAT IS NOT ACCOMPANIED BY A RECEIPT DESCRIBED IN PARAGRAPH ONE OF
THIS SUBDIVISION, HE OR SHE SHALL COLLECT THE APPLICABLE REAL ESTATE
TRANSFER TAX AND shall retain, from the real estate transfer tax which
he OR SHE collects, the sum of one dollar for each of the first five
thousand conveyances accepted for recording and for which he OR SHE has
issued a documentary stamp or metering machine stamp or upon which
instrument effecting the conveyance he OR SHE has noted payment of the
tax or that no tax is due, pursuant to any other method for payment of
the tax provided for in the regulations of the commissioner of taxation
S. 2509--A 180 A. 3009--A
and finance, during each annual period commencing on the first day of
August and ending on the next succeeding thirty-first day of July and
seventy-five cents for each conveyance in excess of five thousand
accepted for recording and for which he OR SHE has issued such a stamp
or upon which instrument effecting the conveyance he OR SHE has noted
payment of the tax or that no tax is due, pursuant to such other method,
during such annual period. Such fee shall be payable even though the
stamp issued or such notation shows that no tax is due. Such a fee paid
to the register of the city of New York shall belong to the city of New
York and such a fee paid to a recording officer of a county outside such
city shall belong to such officer's county. With respect to any other
agents designated to act pursuant to subdivision (a) of this section,
the commissioner of taxation and finance shall have the power to
provide, at his OR HER discretion, for payment of a fee to such agent,
in such manner and amount and subject to such limitations as he OR SHE
may determine, but any such fee for any annual period shall not be
greater than the sum of one dollar for each of the first five thousand
conveyances for which such agent has issued a documentary stamp or
metering machine stamp or upon which instrument effecting the conveyance
he OR SHE has noted payment of the tax or that no tax is due, pursuant
to any other method for payment of the tax provided for in the regu-
lations of the commissioner of taxation and finance, during such annual
period and seventy-five cents for each conveyance in excess of five
thousand for which such agent has issued such a stamp or upon which
instrument effecting the conveyance such agent has noted payment of the
tax or that no tax is due, pursuant to such other method, during such
annual period.
§ 6. Subdivision (b) of 1409 of the tax law, as added by chapter 61 of
the laws of 1989, is amended to read as follows:
(b) [The] SUBJECT TO THE PROVISIONS OF SECTION FOURTEEN HUNDRED TWEN-
TY-THREE OF THIS ARTICLE, THE return shall be signed by both the grantor
and the grantee. Where a conveyance has more than one grantor or more
than one grantee, the return shall be signed by all of such grantors and
grantees. Where any or all of the grantors or any or all of the grantees
have failed to sign a return, it shall be accepted as a return if signed
by any one of the grantors or by any one of the grantees. Provided,
however, those not signing the return shall not be relieved of any
liability for the tax imposed by this article and the period of limita-
tions for assessment of tax or of additional tax shall not apply to any
such party.
§ 7. Subdivision (b) of section 1410 of the tax law, as added by chap-
ter 61 of the laws of 1989, is amended to read as follows:
(b) A recording officer shall not record an instrument effecting a
conveyance unless ONE OF THE FOLLOWING CONDITIONS IS SATISFIED:
(1) THE INSTRUMENT IS ACCOMPANIED BY A RECEIPT ISSUED BY THE COMMIS-
SIONER PURSUANT TO SUBDIVISION (C) OF SECTION FOURTEEN HUNDRED TWENTY-
THREE OF THIS ARTICLE; OR
(2) the return required by section fourteen hundred nine of this arti-
cle has been filed and the real estate transfer tax due, if any, shall
have been paid as provided in this section.
§ 8. The tax law is amended by adding a new section 1423 to read as
follows:
§ 1423. MODERNIZATION OF REAL PROPERTY TRANSFER REPORTING. (A)
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE COMMISSIONER
IS HEREBY AUTHORIZED TO IMPLEMENT A SYSTEM FOR THE ELECTRONIC COLLECTION
OF DATA RELATING TO TRANSFERS OF REAL PROPERTY. IN CONNECTION THEREWITH,
S. 2509--A 181 A. 3009--A
THE COMMISSIONER MAY COMBINE THE TWO FORMS REFERRED TO IN PARAGRAPH ONE
OF THIS SUBDIVISION INTO A CONSOLIDATED REAL PROPERTY TRANSFER FORM TO
BE FILED WITH HIM OR HER ELECTRONICALLY; PROVIDED:
(1) THE TWO FORMS THAT MAY BE SO COMBINED ARE THE REAL ESTATE TRANSFER
TAX RETURN REQUIRED BY SECTION FOURTEEN HUNDRED NINE OF THIS ARTICLE,
AND THE REAL PROPERTY TRANSFER REPORT REQUIRED BY SUBDIVISION ONE-E OF
SECTION THREE HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW. HOWEVER,
THE COMMISSIONER SHALL CONTINUE TO MAINTAIN BOTH SUCH RETURN AND SUCH
REPORT AS SEPARATE FORMS, SO THAT A PARTY WHO PREFERS NOT TO FILE A
CONSOLIDATED REAL PROPERTY TRANSFER FORM WITH THE COMMISSIONER ELECTRON-
ICALLY SHALL HAVE THE OPTION OF FILING BOTH SUCH RETURN AND SUCH REPORT
WITH THE RECORDING OFFICER, AS OTHERWISE PROVIDED BY LAW. UNDER NO
CIRCUMSTANCES SHALL A CONSOLIDATED REAL PROPERTY TRANSFER FORM BE FILED
WITH, OR ACCEPTED BY, THE RECORDING OFFICER.
(2) NOTWITHSTANDING THE PROVISIONS OF SECTION FOURTEEN HUNDRED EIGH-
TEEN OF THIS ARTICLE, ANY INFORMATION APPEARING ON A CONSOLIDATED REAL
PROPERTY TRANSFER FORM THAT IS REQUIRED TO BE INCLUDED ON THE REAL PROP-
ERTY TRANSFER REPORT REQUIRED BY SUBDIVISION ONE-E OF SECTION THREE
HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW SHALL BE SUBJECT TO PUBLIC
DISCLOSURE.
(3) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS ELECTRONICALLY
SUBMITTED TO THE DEPARTMENT BY EITHER THE GRANTOR OR GRANTEE OR A DULY
AUTHORIZED AGENT THEREOF, THE ACT OF SUBMITTING SUCH FORM SHALL BE
DEEMED TO BE THE SIGNING OF THE RETURN AS REQUIRED BY PARAGRAPH (V) OF
SUBDIVISION ONE-E OF THE REAL PROPERTY LAW OR SUBDIVISION (B) OF SECTION
FOURTEEN HUNDRED NINE OF THIS ARTICLE, AND THE REQUIREMENT THAT ALL THE
GRANTORS AND GRANTEES SHALL SIGN THE RETURN SHALL NOT APPLY. HOWEVER,
THE FACT THAT A GRANTOR OR GRANTEE HAS NOT ELECTRONICALLY SUBMITTED THE
FORM SHALL NOT RELIEVE THAT GRANTOR OR GRANTEE OF ANY LIABILITY FOR THE
TAX IMPOSED BY THIS ARTICLE.
(B) WHEN A CONSOLIDATED REAL PROPERTY TRANSFER FORM IS FILED WITH THE
COMMISSIONER ELECTRONICALLY PURSUANT TO THIS SECTION, THE REAL ESTATE
TRANSFER TAX IMPOSED UNDER THIS ARTICLE, AND THE FEE THAT WOULD OTHER-
WISE BE RETAINED BY THE RECORDING OFFICER PURSUANT TO SUBDIVISION THREE
OF SECTION THREE HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW, SHALL BE
PAID TO THE COMMISSIONER THEREWITH. THE COMMISSIONER SHALL RETAIN ON
BEHALF OF THE RECORDING OFFICER THE PORTION OF SUCH TAX THAT WOULD
OTHERWISE HAVE BEEN RETAINED BY THE RECORDING OFFICER PURSUANT TO SUBDI-
VISION (C) OF SECTION FOURTEEN HUNDRED SEVEN OF THIS ARTICLE, AND THE
PORTION OF SUCH FEE THAT WOULD OTHERWISE HAVE BEEN RETAINED BY THE
RECORDING OFFICER PURSUANT TO SUBDIVISION THREE OF SECTION THREE HUNDRED
THIRTY-THREE OF THE REAL PROPERTY LAW. THE MONEYS SO RETAINED BY THE
COMMISSIONER ON BEHALF OF THE RECORDING OFFICER, HEREINAFTER REFERRED TO
AS THE RECORDING OFFICER'S FEES, SHALL BE DEPOSITED DAILY WITH SUCH
RESPONSIBLE BANKS, BANKING HOUSES, OR TRUST COMPANIES AS MAY BE DESIG-
NATED BY THE STATE COMPTROLLER. OF THE RECORDING OFFICER'S FEES SO
DEPOSITED, THE COMPTROLLER SHALL RETAIN IN THE COMPTROLLER'S HANDS SUCH
AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR REFUNDS OR
REIMBURSEMENTS OF SUCH FEES COLLECTED OR RECEIVED PURSUANT TO THIS
SECTION, OUT OF WHICH THE COMPTROLLER SHALL PAY ANY REFUNDS OR
REIMBURSEMENTS OF SUCH FEES TO WHICH PERSONS SHALL BE ENTITLED UNDER THE
PROVISIONS OF THIS SECTION. THE COMPTROLLER, AFTER RESERVING SUCH REFUND
AND REIMBURSEMENT FUND SHALL, ON OR BEFORE THE TWELFTH DAY OF EACH
MONTH, PAY TO THE APPROPRIATE RECORDING OFFICERS AN AMOUNT EQUAL TO THE
RECORDING OFFICER'S FEES RESERVED ON THEIR BEHALF. PROVIDED, HOWEVER,
THAT THE COMMISSIONER IS AUTHORIZED TO REQUEST THAT THE COMPTROLLER
S. 2509--A 182 A. 3009--A
REFRAIN FROM MAKING SUCH A PAYMENT OF SUCH FEES TO A RECORDING OFFICER
UNTIL THE COMMISSIONER HAS CERTIFIED TO THE COMPTROLLER THAT THE RECORD-
ING OFFICER HAS SUPPLIED THE COMMISSIONER WITH THE LIBER AND PAGE
NUMBERS OF THE RECORDED INSTRUMENTS THAT GAVE RISE TO SUCH FEES.
(C) THE SYSTEM FOR THE ELECTRONIC SUBMISSION OF CONSOLIDATED REAL
PROPERTY TRANSFER FORMS SHALL BE DESIGNED SO THAT UPON THE SUCCESSFUL
ELECTRONIC FILING OF SUCH A FORM AND THE PAYMENT OF THE ASSOCIATED TAXES
AND FEES, THE PARTY SUBMITTING THE SAME SHALL BE PROVIDED WITH AN ELEC-
TRONIC RECEIPT IN A FORM PRESCRIBED BY THE COMMISSIONER THAT CONFIRMS
SUCH FILING AND PAYMENT. SUCH PARTY MAY FILE A PRINTED COPY OF SUCH
RECEIPT WITH THE RECORDING OFFICER WHEN OFFERING THE ASSOCIATED INSTRU-
MENT FOR RECORDING, IN LIEU OF SUBMITTING TO THE RECORDING OFFICER THE
RETURN, REPORT, TAX AND FEE THAT WOULD OTHERWISE HAVE BEEN REQUIRED
UNDER THIS ARTICLE AND SUBDIVISIONS ONE-E AND THREE OF SECTION THREE
HUNDRED THIRTY-THREE OF THE REAL PROPERTY LAW. THE RECORDING OFFICER
SHALL RETAIN SUCH RECEIPT FOR A MINIMUM OF THREE YEARS, UNLESS OTHERWISE
DIRECTED BY THE COMMISSIONER, AND SHALL PROVIDE A COPY THEREOF TO THE
COMMISSIONER FOR INSPECTION UPON HIS OR HER REQUEST.
(D) UPON RECORDING THE INSTRUMENT TO WHICH THE CONSOLIDATED REAL PROP-
ERTY TRANSFER FORM PERTAINS, THE RECORDING OFFICER SHALL PROVIDE THE
COMMISSIONER WITH THE LIBER AND PAGE THEREOF AT SUCH TIME AND IN SUCH
MANNER AS THE COMMISSIONER SHALL PRESCRIBE.
(E) THE PROVISIONS OF THIS SECTION SHALL NOT BE APPLICABLE WITHIN A
CITY OR COUNTY THAT HAS IMPLEMENTED ITS OWN ELECTRONIC SYSTEM FOR THE
RECORDING OF DEEDS, THE FILING OF THE REAL ESTATE TRANSFER TAX RETURNS
AND THE REAL PROPERTY TRANSFER REPORTS PRESCRIBED BY THE COMMISSIONER,
AND THE PAYMENT OF THE ASSOCIATED TAXES AND FEES, UNLESS SUCH CITY OR
COUNTY SHALL NOTIFY THE COMMISSIONER THAT SUCH JURISDICTION WILL FOLLOW
THE SYSTEM AUTHORIZED PURSUANT TO THIS SECTION TO BE USED THEREIN, IN
WRITING.
§ 9. This act shall take effect immediately.
PART V
Section 1. This Part enacts into law components of legislation relat-
ing to the administration of the STAR program authorized by section 425
of the real property tax law and subsection (eee) of section 606 of the
tax law. Each component is wholly contained within a Subpart identified
as Subparts A through E. 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 refer-
ence to a section "of this act", when used in connection with that
particular component, shall be deemed to mean and refer to the corre-
sponding section of the Subpart in which it is found. Section three of
this Part sets forth the general effective date of this Part.
SUBPART A
Section 1. Paragraphs (a) and (b) of subdivision 16 of section 425 of
the real property tax law, as amended by section 5 of part A of chapter
73 of the laws of 2016, are amended to read as follows:
(a) Beginning with assessment rolls used to levy school district taxes
for the two thousand sixteen--two thousand seventeen school year, no
application for an exemption under this section may be approved unless
at least one of the applicants held title to the property on the taxable
S. 2509--A 183 A. 3009--A
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 that
assessment roll. IN ADDITION, BEGINNING WITH ASSESSMENT ROLLS USED TO
LEVY SCHOOL DISTRICT TAXES FOR THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND
TWENTY-TWO SCHOOL YEAR, NO APPLICATION FOR A NEW ENHANCED EXEMPTION
UNDER SUBDIVISION FOUR OF THIS SECTION MAY BE APPROVED. In the event
that an application is submitted to the assessor that cannot be approved
due to this restriction, the assessor shall notify the applicant that he
or she is required by law to deny the application, but that, in lieu of
a STAR exemption, the applicant may claim the personal income tax credit
authorized by subsection (eee) of section six hundred six of the tax law
if eligible, and that the applicant may contact the department of taxa-
tion and finance for further information. The commissioner shall
provide a form for assessors to use, at their option, when making this
notification. No STAR exemption may be granted on the basis of an appli-
cation that is not approvable due to this restriction.
(b) Where property received an exemption pursuant to this section on
an assessment roll used to levy school district taxes for the two thou-
sand fifteen--two thousand sixteen school year, and at least one of its
owners held title to the property on the taxable status date of such
assessment roll, the exemption shall continue to be granted on subse-
quent assessment rolls without regard to the provisions of this subdivi-
sion as long as all applicable requirements of this section are satis-
fied. In addition, such exemption shall be subject to modification as
follows:
(i) A basic STAR exemption shall be changed to an enhanced STAR
exemption ON AN ASSESSMENT ROLL USED TO LEVY SCHOOL DISTRICT TAXES FOR A
SCHOOL YEAR PRIOR TO THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-
TWO SCHOOL YEAR if the owners and spouses primarily residing on the
property file a timely application showing that their ages and incomes
meet the requirements of subdivision four of this section. BEGINNING
WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT TAXES FOR THE TWO
THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-TWO SCHOOL YEAR, NO APPLICATION
FOR A NEW ENHANCED EXEMPTION UNDER THIS SECTION MAY APPROVED. IN THE
EVENT THAT AN APPLICATION IS SUBMITTED TO THE ASSESSOR THAT CANNOT BE
APPROVED DUE TO THIS RESTRICTION, THE ASSESSOR SHALL NOTIFY THE APPLI-
CANT THAT HE OR SHE IS REQUIRED BY LAW TO DENY THE APPLICATION, BUT THAT
THE APPLICANT MAY APPLY FOR AN ENHANCED STAR CREDIT PURSUANT TO PARA-
GRAPH FOUR OF SUBSECTION (EEE) OF SECTION SIX HUNDRED SIX OF THE TAX LAW
IF ELIGIBLE, AND THAT THE APPLICANT MAY CONTACT THE DEPARTMENT OF TAXA-
TION AND FINANCE FOR INFORMATION ON HOW TO APPLY FOR THE CREDIT. THE
ASSESSOR SHALL FURTHER NOTIFY THE APPLICANT THAT IF HE OR SHE DOES NOT
WISH TO SWITCH TO THE CREDIT, HE OR SHE MAY CONTINUE RECEIVING THE BASIC
STAR EXEMPTION AS LONG AS THE ELIGIBILITY REQUIREMENTS FOR THAT
EXEMPTION CONTINUE TO BE SATISFIED. THE COMMISSIONER SHALL PROVIDE A
FORM FOR ASSESSORS TO USE, AT THEIR OPTION, WHEN MAKING THIS NOTIFICA-
TION. NO ENHANCED STAR EXEMPTION MAY BE GRANTED ON THE BASIS OF AN
APPLICATION THAT IS NOT APPROVABLE DUE TO THIS RESTRICTION. NOTHING
CONTAINED HEREIN SHALL BE CONSTRUED TO PRECLUDE THE RESTORATION OF A
PREVIOUSLY-GRANTED ENHANCED STAR EXEMPTION PURSUANT TO SUBPARAGRAPHS
(II) OR (III) OF THIS PARAGRAPH.
(ii) An enhanced STAR exemption shall be changed to a basic STAR
exemption if the combined income of the owners and spouses primarily
residing on the property increases above the limit set by subdivision
four of this section, subject to the provisions of subparagraph (iii) of
S. 2509--A 184 A. 3009--A
this paragraph, provided that if their combined income falls below the
limit set by subdivision four of this section in the future, AND THEY
HAVE NOT SWITCHED TO THE STAR CREDIT, their enhanced STAR exemption may
be resumed upon timely application.
(iii) A STAR exemption shall be discontinued if the combined income of
the owners and spouses primarily residing on the property increases
above the limit set by subdivision three of this section, provided that
if their income falls below such limit in the future, AND THEY HAVE NOT
SWITCHED TO THE STAR CREDIT, their STAR exemption may be resumed upon
timely application.
(iv) A STAR exemption shall be permanently discontinued if the owners
fail to satisfy the applicable residency or ownership requirement, or
both.
§ 2. This act shall take effect immediately.
SUBPART B
Section 1. Subparagraph (i) of paragraph (c) of subdivision 17 of
section 425 of the real property tax law, as added by section 2 of part
G of chapter 39 of the laws of 2019, is amended to read as follows:
(i) A STAR credit switch may be deferred if the application for the
credit is submitted after a cutoff date set by the commissioner. When
setting a cutoff date, the commissioner shall take into account the time
required to ensure that the STAR exemptions of all STAR credit appli-
cants in the assessing unit will be removed before school tax bills are
prepared. The commissioner shall specify the applicable cutoff dates
after taking into account local assessment calendars, provided that
different cutoff dates may be set for municipalities with different
assessment calendars, and provided further that any such cutoff date may
be no earlier than the [fifteenth] SIXTY-FIRST day prior to the date on
which the applicable final assessment roll is required by law to be
completed and filed.
§ 2. This act shall take effect immediately.
SUBPART C
Section 1. Subsection (c) of section 651 of the tax law, as amended by
section 3 of part QQ of chapter 59 of the laws of 2019, is amended to
read as follows:
(c) Decedents. The return for any deceased individual shall be made
and filed by his OR HER executor, administrator, or other person charged
with his OR HER property. If a final return of a decedent is for a frac-
tional part of a year, the due date of such return shall be the
fifteenth day of the fourth month following the close of the twelve-
month period which began with the first day of such fractional part of
the year. Notwithstanding any provision of law to the contrary, when a
return has been filed for a decedent, the commissioner may disclose the
decedent's name, address, and the date of death to the director of real
property tax services of the county AND TO THE ASSESSOR OF THE ASSESSING
UNIT in which the address reported on such return is located.
§ 2. This act shall take effect immediately.
SUBPART D
S. 2509--A 185 A. 3009--A
Section 1. Paragraphs (b) and (c) of subdivision 2 of section 200-a of
the real property tax law, as amended by section 2 of part J of chapter
57 of the laws of 2013, are amended to read as follows:
(b) The power to hear and determine reviews relating to determinations
made by county equalization agencies, as provided by sections eight
hundred sixteen and eight hundred eighteen of this chapter[; and
(c) The power to hear and determine reviews relating to determinations
of STAR eligibility made by the department of taxation and finance as
provided by section four hundred twenty five of this chapter].
§ 2. Subdivision 3 of section 200-a of the real property tax law, as
added by section 7 of part W of chapter 56 of the laws of 2010, is
amended to read as follows:
3. The provisions of section five hundred twenty-five of this chapter
shall apply so far as practicable to a hearing conducted by the board of
real property tax services pursuant to SECTIONS EIGHT HUNDRED SIXTEEN
AND EIGHT HUNDRED EIGHTEEN OF this chapter.
§ 3. Paragraph (a-2) of subdivision 6 of section 425 of the real prop-
erty tax law, as amended by section 1 of part TT of chapter 59 of the
laws of 2019, is amended to read as follows:
(a-2) Notwithstanding any provision of law to the contrary, where an
application for the "enhanced" STAR exemption authorized by subdivision
four of this section has not been filed on or before the taxable status
date, and the owner believes that good cause existed for the failure to
file the application by that date, the owner may, no later than the last
day for paying school taxes without incurring interest or penalty,
submit a written request to the commissioner asking him or her to extend
the filing deadline and grant the exemption. Such request shall contain
an explanation of why the deadline was missed, and shall be accompanied
by an application, reflecting the facts and circumstances as they
existed on the taxable status date. After consulting with the assessor,
the commissioner may extend the filing deadline and grant the exemption
if the commissioner is satisfied that (i) good cause existed for the
failure to file the application by the taxable status date, and that
(ii) the applicant is otherwise entitled to the exemption. The commis-
sioner shall mail notice of his or her determination to such owner and
the assessor. If the determination states that the commissioner has
granted 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 school district authorities
shall be authorized and directed to take account of the fact that the
commissioner has granted the exemption by correcting the applicant's tax
bill and/or issuing a refund accordingly] DETERMINATION SHALL BE IMPLE-
MENTED IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION.
§ 4. Clauses (C) and (D) of subparagraph (iv) of paragraph (b) of
subdivision 4 of section 425 of the real property tax law are REPEALED
and a new clause (C) is added to read as follows:
(C) IF THE COMMISSIONER DETERMINES THAT THE ENHANCED EXEMPTION SHOULD
BE REPLACED WITH A BASIC EXEMPTION BECAUSE THE PROPERTY IS ONLY ELIGIBLE
FOR A BASIC EXEMPTION, OR DETERMINES THAT THE ENHANCED EXEMPTION SHOULD
BE REMOVED OR DENIED WITHOUT BEING REPLACED WITH A BASIC EXEMPTION
BECAUSE THE PROPERTY IS NOT ELIGIBLE FOR EITHER EXEMPTION, HIS OR HER
DETERMINATION SHALL BE IMPLEMENTED IN THE MANNER PROVIDED BY SUBDIVISION
FIFTEEN OF THIS SECTION.
S. 2509--A 186 A. 3009--A
§ 5. Paragraphs (c) and (d) of subdivision 14 of section 425 of the
real property tax law are REPEALED and a new paragraph (c) is added to
read as follows:
(C) IF THE COMMISSIONER DETERMINES THAT A STAR EXEMPTION SHOULD BE
REMOVED OR DENIED FOR ONE OR MORE OF THE REASONS SPECIFIED IN PARAGRAPH
(B) OF THIS SUBDIVISION, HIS OR HER DETERMINATION SHALL BE IMPLEMENTED
IN THE MANNER PROVIDED BY SUBDIVISION FIFTEEN OF THIS SECTION.
§ 6. Subdivisions 14-a, 15 and 15-a of section 425 of the real proper-
ty tax law are REPEALED and a new subdivision 15 is added to read as
follows:
15. REVIEW BY COMMISSIONER. (A) WHEN THE COMMISSIONER DETERMINES
PURSUANT TO THIS SECTION THAT A STAR EXEMPTION SHOULD BE GRANTED, DENIED
OR MODIFIED, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF
THE ASSESSMENT ROLL OR TAX ROLL SHALL BE AUTHORIZED AND DIRECTED UPON
RECEIPT OF THE COMMISSIONER'S DETERMINATION TO CORRECT SUCH ROLL ACCORD-
INGLY. SUCH CORRECTION SHALL BE MADE WITHOUT REGARD TO THE PROVISIONS
OF TITLE THREE OF ARTICLE FIVE OF THIS CHAPTER OR ANY COMPARABLE LAWS
GOVERNING THE CORRECTION OF ERRORS ON ASSESSMENT ROLLS AND TAX ROLLS,
AND SHALL BE MADE WITHOUT REQUESTING ADDITIONAL DOCUMENTATION OR THE
APPROVAL OF ANY OTHER PARTY. IN ADDITION:
(B) IF THE COMMISSIONER'S DETERMINATION DIRECTS THE GRANTING OF A STAR
EXEMPTION TO A PROPERTY OWNER, OR IS OTHERWISE FAVORABLE TO THE PROPERTY
OWNER:
(I) THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE
ASSESSMENT ROLL OR TAX ROLL SHALL ATTEMPT TO IMPLEMENT THE COMMISSION-
ER'S DETERMINATION PRIOR TO THE LEVY OF SCHOOL TAXES IF POSSIBLE. IF
THE CORRECTION IS NOT MADE BEFORE SCHOOL TAXES ARE LEVIED, THE SCHOOL
DISTRICT AUTHORITIES SHALL BE AUTHORIZED AND DIRECTED TO IMPLEMENT THE
COMMISSIONER'S DETERMINATION BY CORRECTING THE PROPERTY OWNER'S SCHOOL
TAX BILL OR BY PROVIDING THE PROPERTY OWNER WITH A CREDIT FOR THE AMOUNT
AT ISSUE; PROVIDED THAT IF THE SCHOOL TAX BILL HAS ALREADY BEEN PAID,
THE SCHOOL DISTRICT AUTHORITIES SHALL IMPLEMENT THE COMMISSIONER'S
DETERMINATION BY ISSUING A REFUND OF THE AMOUNT AT ISSUE. FOR PURPOSES
OF THIS SUBDIVISION, THE "AMOUNT AT ISSUE" MEANS THE ADDITIONAL TAX
SAVINGS THAT WOULD HAVE APPEARED ON THE PROPERTY OWNER'S SCHOOL TAX BILL
IF THE COMMISSIONER'S DETERMINATION HAD BEEN IMPLEMENTED PRIOR TO THE
SCHOOL TAX LEVY.
(II) ALTERNATIVELY, THE COMMISSIONER IS AUTHORIZED IN HIS OR HER
DISCRETION TO REMIT DIRECTLY TO THE PROPERTY OWNER OR OWNERS THE AMOUNT
AT ISSUE. WHEN THE COMMISSIONER DOES SO, HE OR SHE SHALL SO NOTIFY THE
ASSESSOR AND COUNTY DIRECTOR OF REAL PROPERTY TAX SERVICES. IN SUCH
CASES, NO CORRECTION SHALL BE MADE TO THE ASSESSMENT ROLL OR TAX ROLL
FOR THAT SCHOOL YEAR, AND NO CREDIT OR REFUND SHALL BE PROVIDED 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.
(C) IF THE COMMISSIONER'S DETERMINATION DIRECTS THE DENIAL OF A STAR
EXEMPTION TO A PROPERTY OWNER, OR IS OTHERWISE UNFAVORABLE TO THE PROP-
ERTY OWNER:
(I) THE COMMISSIONER SHALL MAIL THE PROPERTY OWNER NOTICE OF HIS OR
HER DETERMINATION AND AN OPPORTUNITY TO BE HEARD THEREON. IF THE OWNER
FAILS TO RESPOND TO SUCH NOTICE WITHIN FORTY-FIVE DAYS FROM THE MAILING
THEREOF, THE COMMISSIONER'S DETERMINATION SHALL STAND AND NO FURTHER
REVIEW SHALL BE AVAILABLE. IF THE OWNER RESPONDS TO SUCH NOTICE WITHIN
THE FORTY-FIVE DAY PERIOD, THE COMMISSIONER SHALL REVIEW THE RESPONSE
AND ANY DOCUMENTATION PROVIDED IN SUPPORT THEREOF AND SHALL NOTIFY THE
OWNER OF HIS OR HER FINAL DETERMINATION. IF DISSATISFIED WITH THE
S. 2509--A 187 A. 3009--A
COMMISSIONER'S FINAL DETERMINATION, THE OWNER MAY SEEK JUDICIAL REVIEW
THEREOF PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND
RULES. THE PROPERTY OWNER 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 DEPART-
MENT, THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OR CONTROL OF THE
ASSESSMENT ROLL OR TAX ROLL REGARDING SUCH ACTION.
(II) 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 DENIAL OR REDUCTION 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 DEPART-
MENT IN THE MANNER DESCRIBED IN THIS PARAGRAPH.
(III) IF A STAR EXEMPTION SHOULD APPEAR ON A PROPERTY OWNER'S SCHOOL
TAX BILL DESPITE THE FACT THAT THE COMMISSIONER HAD DETERMINED THE PROP-
ERTY OWNER TO BE INELIGIBLE FOR THAT EXEMPTION, THE COMMISSIONER IS
AUTHORIZED TO RECOVER THE AMOUNT AT ISSUE DIRECTLY FROM THE OWNERS OF
THE PROPERTY 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.
§ 7. Section 171-u of the tax law, as added by section 2 of part FF of
chapter 57 of the laws of 2010, and subdivision 5 as added by section 7
of part N of chapter 58 of the laws of 2011, is amended to read as
follows:
§ 171-u. Verification of income eligibility for basic STAR exemption.
(1) [On or after August fifteenth of each year, beginning in two thou-
sand ten, the commissioner shall procure a report or reports identifying
all parcels receiving the basic STAR exemption authorized by section
four hundred twenty-five of the real property tax law. The commissioner
is authorized to develop procedures necessary to ascertain to the best
of his or her ability whether the parcels satisfy the income eligibility
requirements for such exemption. Such determination shall be based upon
the affiliated income of the parcel for the applicable income tax year,
as defined by paragraph (b-1) of subdivision three of section four
hundred twenty-five of the real property tax law.
(2) The commissioner shall further develop procedures by which each
assessor shall be notified of his or her findings, stating in each case
either that the parcel does or does not meet the income eligibility
standard prescribed by law, or that the income-eligibility of such
parcel cannot be ascertained, whichever is appropriate. The commissioner
shall provide no other information about the income of any person to an
assessor. Such reports shall be furnished to assessors prior to the
applicable taxable status date or as soon thereafter as is possible.
(3) Upon receiving such a report, the assessor shall grant the
exemption to those parcels which the commissioner determined to be
income-eligible (assuming the assessor finds that the remaining eligi-
bility requirements continue to be satisfied), shall deny the exemption
to those which the commissioner determined not to be income-eligible,
and shall solicit income documentation from the owners of those parcels
S. 2509--A 188 A. 3009--A
as to which the commissioner was unable to make a determination. Where
the assessor denies the exemption based upon the commissioner's report,
a notice of denial shall be mailed as provided by paragraph (b) of
subdivision six of section four hundred twenty-five of the real property
tax law, giving the findings of such department as a reason for such
denial.
(4) Where a STAR exemption has been improperly granted on a final
assessment roll to a property where the affiliated income exceeds the
limitations established by paragraph (b-1) of subdivision three of
section four hundred twenty-five of the real property tax law, the
improperly granted exemption shall be corrected in the manner provided
by subdivision twelve of section four hundred twenty-five of the real
property tax law.
(5)] THE COMMISSIONER SHALL VERIFY THE INCOME ELIGIBILITY OF RECIPI-
ENTS OF THE BASIC STAR EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW IN THE MANNER PROVIDED THEREIN.
(2)(a) Notwithstanding any provision of law to the contrary, the
commissioner may adopt rules prescribing a uniform statewide system of
parcel identification numbers applicable to all "assessing units", as
that term is defined by section one hundred two of the real property tax
law, provided that no such rule shall apply to an assessment roll with a
taxable status date occurring prior to January first, two thousand thir-
teen.
(b) Notwithstanding the foregoing provisions of this subdivision, the
commissioner may, at his or her discretion, adopt rules that are appli-
cable only to "special assessing units," as that term is defined by
section eighteen hundred one of the real property tax law, which
prescribe an alternative system of parcel identification numbers solely
for such special assessing units.
§ 8. This act shall take effect immediately.
SUBPART E
Section 1. Paragraph 2 of subdivision w of section 233 of the real
property law is REPEALED.
§ 2. Paragraph 3 of subdivision w of section 233 of the real property
law, as amended by section 18 of part B of chapter 389 of the laws of
1997, is amended to read as follows:
3. A manufactured home park owner or operator providing a reduction in
rent as required by paragraph one [or two] of this subdivision may
retain, in consideration for record keeping expenses, two percent of the
amount of such reduction.
§ 3. The opening paragraph of paragraph 3-a of subdivision w of
section 233 of the real property law, as added by chapter 405 of the
laws of 2001, is amended to read as follows:
Any reduction required to be provided pursuant to paragraph one [or
two] of this subdivision shall be provided as follows:
§ 4. Paragraph (l) of subdivision 2 of section 425 of the real proper-
ty tax law is amended by adding a new subparagraph (iv) to read as
follows:
(IV) BEGINNING WITH ASSESSMENT ROLLS USED TO LEVY SCHOOL DISTRICT
TAXES FOR THE TWO THOUSAND TWENTY-TWO--TWO THOUSAND TWENTY-THREE SCHOOL
YEAR, NO EXEMPTION SHALL BE GRANTED PURSUANT TO THIS SECTION TO A MOBILE
HOME THAT IS DESCRIBED IN THIS PARAGRAPH. OWNERS OF SUCH PROPERTY MAY
CLAIM THE CREDIT AUTHORIZED BY SUBSECTION (EEE) OF SECTION SIX HUNDRED
SIX OF THE TAX LAW IN THE MANNER PRESCRIBED THEREIN.
S. 2509--A 189 A. 3009--A
§ 5. Subparagraph (B) of paragraph 6 of subsection (eee) of section
606 of the tax law is amended by adding a new clause (iii) to read as
follows:
(III) BEGINNING WITH THE TWO THOUSAND TWENTY-TWO TAXABLE YEAR, TO
RECEIVE THE CREDIT AUTHORIZED BY THIS SUBSECTION, AN OWNER OF A MOBILE
HOME DESCRIBED BY CLAUSE (I) OF THIS SUBPARAGRAPH SHALL REGISTER FOR
SUCH CREDIT IN THE MANNER PRESCRIBED BY THE COMMISSIONER.
§ 6. This act shall take effect immediately; provided, however, that
the amendments to subdivision w of section 233 of the real property law
made by sections one, two and three of this act shall be applicable
beginning with assessment rolls used to levy school district taxes for
the 2022--2023 school year.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section, item, subpart 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, subdivi-
sion, section, item, subpart or part thereof directly involved in the
controversy in which such judgment shall have been rendered. It is here-
by declared to be the intent of the legislature that this act would have
been enacted even if such invalid provisions had not been included here-
in.
§ 3. This act shall take effect immediately, provided, however, that
the applicable effective date of Subparts A through E of this act shall
be as specifically set forth in the last section of such Subparts.
PART W
Section 1. Section 200 of the real property tax law, as amended by
section 4-a of part W of chapter 56 of the laws of 2010, is amended to
read as follows:
§ 200. State board. There is hereby created in the department of taxa-
tion and finance a separate and independent state board of real property
tax services, to consist of five members to be appointed by the gover-
nor, by and with the advice and consent of the senate. Of those five
members appointed by the governor, one such person shall be an individ-
ual actively engaged in the commercial production for sale of agricul-
tural crops, livestock and livestock products of an average gross sales
value of ten thousand dollars or more. Said individual shall be
appointed in the first instance to a term of eight years upon expiration
of an existing term. Said initial term shall commence on the first day
of January next succeeding the year in which the existing term shall
expire. The governor shall designate one of the members as the chairman
of the board, who shall serve as chairman at the pleasure of the gover-
nor. A MAJORITY OF THE DULY APPOINTED MEMBERS SHALL CONSTITUTE A QUORUM
AND NOT LESS THAN A MAJORITY OF SUCH MEMBERS CONCURRING MAY TRANSACT
ANY BUSINESS, PERFORM ANY DUTY OR EXERCISE ANY POWER OF THE BOARD. The
members of the board shall be appointed for terms of eight years,
commencing on the first day of January next following the year in which
the term of his predecessor expired, except that the terms of the
members first appointed shall expire as follows: one on December thir-
ty-first, nineteen hundred sixty-one, one on December thirty-first,
nineteen hundred sixty-three, one on December thirty-first, nineteen
hundred sixty-five, one on December thirty-first, nineteen hundred
sixty-seven, and one on December thirty-first, nineteen hundred eighty-
two. Vacancies occurring otherwise than by expiration of term shall be
S. 2509--A 190 A. 3009--A
filled for the unexpired term. All members shall receive necessary
expenses incurred in the performance of their duties.
§ 2. Section 307 of the real property tax law is REPEALED.
§ 3. Subdivision 4 of section 483 of the real property tax law, as
amended by chapter 72 of the laws of 1979 and as further amended by
subdivision (b) of section 1 of part W of chapter 56 of the laws of
2010, and as renumbered by chapter 797 of the laws of 1992, is amended
to read as follows:
4. Such exemption from taxation shall be granted only upon an applica-
tion by the owner of the building or structure on a form prescribed by
the commissioner. The applicant shall furnish such information as [such
board] THE COMMISSIONER shall require. Such application shall be filed
with the assessor of the city, town, village or county having the power
to assess property for taxation on or before the appropriate taxable
status date of such city, town, village or county and within one year
from the date of completion of such construction or reconstruction.
§ 4. Subdivision 3 of section 489-n of the real property tax law, as
added by chapter 86 of the laws of 1963 and as further amended by subdi-
vision (b) of section 1 of part W of chapter 56 of the laws of 2010, is
amended to read as follows:
3. The commissioner shall meet at the time and place specified in such
notice to hear complaints in relation to the tentative determination of
the railroad ceiling. The provisions of section five hundred twelve of
this chapter shall apply so far as may be practicable to a hearing under
this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED
TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED.
§ 5. Subdivision 3 of section 489-kk of the real property tax law, as
added by chapter 920 of the laws of 1977 and as further amended by
subdivision (b) of section 1 of part W of chapter 56 of the laws of
2010, is amended to read as follows:
3. The commissioner shall meet at the time and place specified in such
notice to hear complaints in relation to the tentative determination of
the railroad ceiling. The provisions of section five hundred twelve of
this chapter shall apply so far as may be practicable to a hearing under
this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED
TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED.
§ 6. The real property tax law is amended by adding a new section 497
to read as follows:
§ 497. CONSTRUCTION OF CERTAIN LOCAL OPTION PROVISIONS IN EXEMPTION
STATUTES. 1. POPULATION RESTRICTIONS. WHEN AN EXEMPTION STATUTE MAKES
ONE OR MORE OPTIONS AVAILABLE TO MUNICIPAL CORPORATIONS HAVING A POPU-
LATION WITHIN A SPECIFIED RANGE, AND THE GOVERNING BODY OF A MUNICIPAL
CORPORATION ADOPTS A LOCAL LAW OR RESOLUTION EXERCISING SUCH AN OPTION
WHILE ITS POPULATION IS WITHIN THE SPECIFIED RANGE, A SUBSEQUENT CHANGE
IN THE POPULATION OF THE MUNICIPAL CORPORATION THAT PLACES IT OUTSIDE
THE SPECIFIED RANGE SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION INEF-
FECTIVE OR INVALID, NOR SHALL IT IMPAIR THE ABILITY OF THE GOVERNING
BODY TO AMEND OR REPEAL SUCH LOCAL LAW OR RESOLUTION TO THE SAME EXTENT
AS IF ITS POPULATION WERE STILL WITHIN THE SPECIFIED RANGE. PROVIDED,
HOWEVER, THAT THIS SUBDIVISION SHALL NOT APPLY TO ANY EXEMPTION STATUTE
THAT EXPRESSLY PROVIDES THAT A LOCAL LAW OR RESOLUTION ADOPTED THERE-
UNDER SHALL BECOME INEFFECTIVE OR INVALID IF THE POPULATION OF THE
MUNICIPAL CORPORATION SUBSEQUENTLY EXPERIENCES A CHANGE THAT PLACES IT
OUTSIDE THE SPECIFIED RANGE.
2. FILING PROVISIONS. WHEN AN EXEMPTION STATUTE MAKES ONE OR MORE
OPTIONS AVAILABLE TO SOME OR ALL MUNICIPAL CORPORATIONS, AND FURTHER
S. 2509--A 191 A. 3009--A
PROVIDES THAT A MUNICIPAL CORPORATION ADOPTING A LOCAL LAW OR RESOLUTION
EXERCISING SUCH AN OPTION SHALL FILE A COPY THEREOF WITH ONE OR MORE
STATE AGENCIES OTHER THAN THE DEPARTMENT OF STATE, BUT IF SUCH STATUTE
DOES NOT EXPRESSLY PROVIDE THAT A LOCAL LAW OR RESOLUTION EXERCISING
SUCH AN OPTION SHALL NOT TAKE EFFECT UNTIL A COPY THEREOF IS FILED WITH
THE SPECIFIED STATE AGENCY OR AGENCIES, THEN A FAILURE TO COMPLY WITH
SUCH FILING PROVISION SHALL NOT RENDER SUCH LOCAL LAW OR RESOLUTION
INEFFECTIVE OR INVALID.
§ 7. Subdivision 3 of section 499-oooo of the real property tax law,
as added by chapter 475 of the laws of 2013, is amended to read as
follows:
3. The commissioner or his or her designee shall meet at the time and
place specified in such notice set forth in subdivision one of this
section to hear complaints in relation to the tentative determination of
the assessment ceiling. The provisions of section five hundred twelve of
this chapter shall apply so far as may be practicable to a hearing under
this section. NOTHING CONTAINED IN THIS SUBDIVISION SHALL BE CONSTRUED
TO REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED.
§ 8. Section 612 of the real property tax law, 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:
§ 612. Hearing of complaints. The commissioner or a duly authorized
representative thereof shall meet at the time and place specified in the
notice required by section six hundred eight of this chapter to hear
complaints in relation to assessments of special franchises. The
provisions of section five hundred twelve of this chapter shall apply so
far as practicable to the hearing of complaints pursuant to this
section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO
REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED.
§ 9. Section 1208 of the real property tax law, as amended by chapter
385 of the laws of 1990 and as further amended by subdivision (b) of
section 1 of part W of chapter 56 of the laws of 2010, is amended to
read as follows:
§ 1208. Hearing of complaints. The commissioner or a duly authorized
representative thereof shall meet at the time and place specified in the
notice required by section twelve hundred four of this chapter to hear
complaints in relation to equalization rates, class ratios or class
equalization rates. The provisions of section five hundred twenty-five
of this chapter shall apply so far as practicable to a hearing under
this section. NOTHING CONTAINED IN THIS SECTION SHALL BE CONSTRUED TO
REQUIRE A HEARING TO BE CONDUCTED WHEN NO COMPLAINTS HAVE BEEN FILED.
§ 10. This act shall take effect immediately; provided, however, that
notwithstanding the provisions of subdivision 2 of section 497 of the
real property tax law as added by section six of this act, the decision
issued by the Appellate Division, Third Department on April 16, 2020, in
the Matter of Laertes Solar, LLC v Assessor of the Town of Harford,
cited as 182 A.D.3d 826, 122 N.Y.S.3d 427, and 2020 NY Slip Op 02302,
motion for leave to appeal dismissed in part and otherwise denied by the
Court of Appeals on November 19, 2020, shall remain binding upon the
parties thereto; and provided further that the amendments made to
section 489-oooo of the real property tax law made by section seven of
this act shall not affect the repeal of such section and shall be deemed
to be repealed therewith.
PART X
S. 2509--A 192 A. 3009--A
Section 1. Subdivisions 5, 7 and 9 of section 487 of the real property
tax law, subdivision 5 as amended by chapter 325 of the laws of 2018,
subdivision 7 as amended by chapter 515 and subdivision 9 as added by
chapter 608 of the laws of 2002, and paragraph (a) of subdivision 9 as
amended by chapter 344 of the laws of 2014, are amended to read as
follows:
5. The exemption granted pursuant to this section shall only be appli-
cable to (a) solar or wind energy systems or farm waste energy systems
which are (i) existing or constructed prior to July first, nineteen
hundred eighty-eight or (ii) constructed subsequent to January first,
nineteen hundred ninety-one and prior to January first, two thousand
[twenty-five] THIRTY, and (b) micro-hydroelectric energy systems, fuel
cell electric generating systems, micro-combined heat and power generat-
ing equipment systems, electric energy storage equipment or electric
energy storage system, or fuel-flexible linear generator electric gener-
ating system which are constructed subsequent to January first, two
thousand eighteen and prior to January first, two thousand [twenty-five]
THIRTY.
7. If the assessor is satisfied that the applicant is entitled to an
exemption pursuant to this section, he or she shall approve the applica-
tion and enter the taxable assessed value of the parcel for which an
exemption has been granted pursuant to this section on the assessment
roll with the taxable property, with the amount of the exemption SET
FORTH IN A SEPARATE COLUMN as computed pursuant to subdivision two of
this section in a separate column. In the event that real property
granted an exemption pursuant to this section ceases to be used primari-
ly for eligible purposes, the exemption granted pursuant to this section
shall cease.
9. (a) A county, city, town, village or school district, except a
school district under article fifty-two of the education law, that has
not acted to remove the exemption under this section may require the
owner of a property which includes a solar or wind energy system which
meets the requirements of subdivision four of this section, to enter
into a contract for payments in lieu of taxes. Such contract may require
annual payments in an amount not to exceed the amounts which would
otherwise be payable but for the exemption under this section. If the
owner or developer of such a system provides written notification to a
taxing jurisdiction of its intent to construct such a system, then in
order to require the owner or developer of such system to enter into a
contract for payments in lieu of taxes, such taxing jurisdiction must
notify such owner or developer IN WRITING of its intent to require a
contract for payments in lieu of taxes within sixty days of receiving
the written notification. WRITTEN NOTIFICATION TO A TAXING JURISDICTION
FOR THIS PURPOSE SHALL INCLUDE A HARD COPY LETTER SENT TO THE HIGHEST-
RANKING OFFICIAL OF THE TAXING JURISDICTION. SUCH LETTER SHALL EXPLICIT-
LY REFERENCE SUBDIVISION NINE OF SECTION FOUR HUNDRED EIGHTY-SEVEN OF
THE REAL PROPERTY TAX LAW, AND CLEARLY STATE THAT, UNLESS THE TAXING
JURISDICTION RESPONDS WITHIN SIXTY DAYS IN WRITING WITH ITS INTENT TO
REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES, SUCH PROJECT SHALL NOT
BE OBLIGATED TO MAKE SUCH PAYMENTS.
(b) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, SHOULD A TAXING
JURISDICTION ADOPT A LAW OR RESOLUTION AT ANY TIME WITHIN OR PRIOR TO
THE SIXTY DAY WINDOW, INDICATING THE TAXING JURISDICTION'S ONGOING
INTENT TO REQUIRE A CONTRACT FOR PAYMENTS IN LIEU OF TAXES FOR SUCH
SYSTEMS, SUCH LAW OR RESOLUTION SHALL BE CONSIDERED NOTIFICATION TO
OWNERS OR DEVELOPERS AND NO FURTHER ACTION IS REQUIRED ON THE PART OF
S. 2509--A 193 A. 3009--A
THE TAXING JURISDICTION, PROVIDED THAT SUCH LAW OR RESOLUTION REMAINS IN
EFFECT THROUGH THE END OF THE SIXTY DAY NOTIFICATION PERIOD.
[The] (C) ANY payment in lieu of a tax agreement shall not operate for
a period of more than fifteen years, commencing in each instance from
the date on which the benefits of such exemption first become available
and effective.
§ 2. Subdivision 1 of section 575-a of the real property tax law, as
added by section 1 of subpart F of part J of chapter 59 of the laws of
2019, is amended to read as follows:
1. Every corporation, company, association, joint stock association,
partnership and person, their lessees, trustees or receivers appointed
by any court whatsoever, owning, operating or managing any electric
generating facility in the state shall annually file with the commis-
sioner, by April thirtieth, a report showing the inventory, revenue, and
expenses associated therewith for the most recent fiscal year, AND, IN
THE CASE OF SOLAR AND WIND ENERGY SYSTEMS, SUCH OTHER INFORMATION AS THE
COMMISSIONER MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE
OF AN APPRAISAL MODEL AND DISCOUNT RATE AS REQUIRED PURSUANT TO SECTION
575-B OF THIS CHAPTER. Such report shall be in the form and manner
prescribed by the commissioner.
§ 3. The real property tax law is amended by adding a new section
575-b to read as follows:
§ 575-B. SOLAR OR WIND ENERGY SYSTEMS. 1. THE ASSESSED VALUE FOR SOLAR
OR WIND ENERGY SYSTEMS, AS DEFINED IN SECTION FOUR HUNDRED EIGHTY-SEVEN
OF THIS CHAPTER, SHALL BE DETERMINED BY A DISCOUNTED CASH FLOW APPROACH
THAT INCLUDES:
(A) AN APPRAISAL MODEL IDENTIFIED AND PUBLISHED BY THE NEW YORK STATE
DEPARTMENT OF TAXATION AND FINANCE, IN CONSULTATION WITH THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, WITHIN ONE HUNDRED
EIGHTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, AND PERIODICALLY
THEREAFTER AS APPROPRIATE; AND
(B) A SOLAR OR WIND ENERGY SYSTEM DISCOUNT RATE PUBLISHED ANNUALLY BY
THE NEW YORK STATE DEPARTMENT OF TAXATION AND FINANCE.
2. THE REPORTS REQUIRED BY SECTION FIVE HUNDRED SEVENTY-FIVE-A OF THIS
TITLE SHALL BE DESIGNED TO ELICIT SUCH INFORMATION AS THE COMMISSIONER
MAY REASONABLY REQUIRE FOR THE DEVELOPMENT AND MAINTENANCE OF AN
APPRAISAL MODEL AND DISCOUNT RATE.
3. THE PROVISIONS OF THIS SECTION SHALL ONLY APPLY TO SOLAR OR WIND
ENERGY SYSTEMS WITH A NAMEPLATE CAPACITY EQUAL TO OR GREATER THAN ONE
MEGAWATT.
§ 4. The third undesignated paragraph of section 852 of the general
municipal law, as amended by chapter 630 of the laws of 1977, is amended
to read as follows:
It is hereby further declared to be the policy of this state to
protect and promote the health of the inhabitants of this state and to
increase trade through promoting the development of facilities to
provide recreation for the citizens of the state and to attract tourists
from other states AND TO PROMOTE THE DEVELOPMENT OF RENEWABLE ENERGY
PROJECTS TO SUPPORT THE STATE'S RENEWABLE ENERGY GOALS AS MAY BE ESTAB-
LISHED OR AMENDED FROM TIME TO TIME.
§ 5. Subdivision 4 of section 854 of the general municipal law, as
amended by section 6 of part J of chapter 59 of the laws of 2013, is
amended and a new subdivision 21 is added to read as follows:
(4) "Project" - shall mean any land, any building or other improve-
ment, and all real and personal properties located within the state of
New York and within or outside or partially within and partially outside
S. 2509--A 194 A. 3009--A
the municipality for whose benefit the agency was created, including,
but not limited to, machinery, equipment and other facilities deemed
necessary or desirable in connection therewith, or incidental thereto,
whether or not now in existence or under construction, which shall be
suitable for manufacturing, warehousing, research, commercial, RENEWABLE
ENERGY or industrial purposes or other economically sound purposes iden-
tified and called for to implement a state designated urban cultural
park management plan as provided in title G of the parks, recreation and
historic preservation law and which may include or mean an industrial
pollution control facility, a recreation facility, educational or
cultural facility, a horse racing facility, a railroad facility, A
RENEWABLE ENERGY PROJECT or an automobile racing facility, provided,
however, no agency shall use its funds or provide financial assistance
in respect of any project wholly or partially outside the municipality
for whose benefit the agency was created without the prior consent ther-
eto by the governing body or bodies of all the other municipalities in
which a part or parts of the project is, or is to be, located, and such
portion of the project located outside such municipality for whose bene-
fit the agency was created shall be contiguous with the portion of the
project inside such municipality.
(21) "RENEWABLE ENERGY PROJECT" SHALL MEAN ANY PROJECT AND ASSOCIATED
REAL PROPERTY ON WHICH THE PROJECT IS SITUATED, THAT UTILIZES ANY SYSTEM
OR EQUIPMENT AS SET FORTH IN SECTION FOUR HUNDRED EIGHTY-SEVEN OF THE
REAL PROPERTY TAX LAW OR AS DEFINED PURSUANT TO PARAGRAPH B OF SUBDIVI-
SION ONE OF SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW AS ADDED BY
CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN.
§ 6. The opening paragraph of section 858 of the general municipal
law, as amended by chapter 478 of the laws of 2011, is amended to read
as follows:
The purposes of the agency shall be to promote, develop, encourage and
assist in the acquiring, constructing, reconstructing, improving, main-
taining, equipping and furnishing industrial, manufacturing, warehous-
ing, commercial, research, RENEWABLE ENERGY and recreation facilities
including industrial pollution control facilities, educational or
cultural facilities, railroad facilities, horse racing facilities, auto-
mobile racing facilities, RENEWABLE ENERGY PROJECTS and continuing care
retirement communities, provided, however, that, of agencies governed by
this article, only agencies created for the benefit of a county and the
agency created for the benefit of the city of New York shall be author-
ized to provide financial assistance in any respect to a continuing care
retirement community, and thereby advance the job opportunities, health,
general prosperity and economic welfare of the people of the state of
New York and to improve their recreation opportunities, prosperity and
standard of living; and to carry out the aforesaid purposes, each agency
shall have the following powers:
§ 7. Paragraph (b) of subdivision 5 of section 859-a of the general
municipal law, as added by chapter 563 of the laws of 2015, is amended
to read as follows:
(b) a written cost-benefit analysis by the agency that identifies the
extent to which a project will create or retain permanent, private
sector jobs; the estimated value of any tax exemptions to be provided;
the amount of private sector investment generated or likely to be gener-
ated by the proposed project; THE CONTRIBUTION OF THE PROJECT TO THE
STATE'S RENEWABLE ENERGY GOALS AND EMISSION REDUCTION TARGETS AS SET
FORTH IN THE STATE ENERGY PLAN ADOPTED PURSUANT TO SECTION 6-104 OF THE
ENERGY LAW; the likelihood of accomplishing the proposed project in a
S. 2509--A 195 A. 3009--A
timely fashion; and the extent to which the proposed project will
provide additional sources of revenue for municipalities and school
districts; and any other public benefits that might occur as a result of
the project;
§ 8. This act shall take effect immediately.
PART Y
Section 1. Legislative intent. Article 1 Section 9 of the New York
State Constitution was recently amended and provides "casino gambling at
no more than seven facilities as authorized and prescribed by the legis-
lature shall hereafter be authorized or allowed within this state." It
is the sense of the legislature that this provision is not contravened
by a statute which authorizes the acceptance of a wager by an individual
who is betting by virtual or electronic means; provided that it meets
other safeguards ensuring that the plain text of this provision is
honored in such structure. Sports wagering is now legal online in 14
states, including the bordering states of New Jersey and Pennsylvania,
while it is only permitted in person in New York at four upstate commer-
cial gaming facilities and Native American Class III gaming facilities.
An industry study found that nearly 20 percent of New Jersey's online
sports wagering revenue comes from New York residents, costing the state
millions of dollars in lost tax revenue.
§ 2. Section 1367 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 7 to read as follows:
7. (A) A LICENSED GAMING FACILITY OPERATING A SPORTS POOL PURSUANT TO
SUBDIVISION THREE OF THIS SECTION MAY OFFER MOBILE SPORTS WAGERING WHEN
CONDUCTED IN CONFORMANCE WITH SECTION ONE THOUSAND THREE HUNDRED SIXTY-
SEVEN-A OF THIS TITLE.
(B) NOTWITHSTANDING SECTION ONE THOUSAND THREE HUNDRED FIFTY-ONE OF
THIS ARTICLE, MOBILE SPORTS WAGERING REVENUE SHALL BE EXCLUDED FROM
GROSS GAMING REVENUE AND SHALL BE SEPARATELY MAINTAINED AND RETURNED TO
THE STATE FOR DEPOSIT INTO THE STATE LOTTERY FUND FOR EDUCATION AID, ON
A SCHEDULE DETERMINED BY THE COMMISSION.
§ 3. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 1367-a to read as follows:
§ 1367-A. MOBILE SPORTS WAGERING. MOBILE SPORTS WAGERING SHALL BE
PERMITTED BY THE COMMISSION THROUGH A PLATFORM PROVIDER OR PROVIDERS
SELECTED PURSUANT TO A COMPETITIVE BIDDING PROCESS CONDUCTED BY THE
COMMISSION. THE WINNING PLATFORM PROVIDER OR PROVIDERS SHALL USE THE
TECHNOLOGY NECESSARY TO ENSURE ALL BETTORS ARE PHYSICALLY WITHIN
APPROVED LOCATIONS WITHIN THE STATE AND ENSURE THE NECESSARY SAFEGUARDS
AGAINST ABUSES AND ADDICTIONS ARE IN PLACE. ANY SUCH CONTRACTS ENTERED
BY THE COMMISSION ARE SUBJECT TO APPLICABLE STATE LAWS, REGULATIONS AND
PRACTICES.
§ 4. Subdivision 1 of section 1351 of the racing, pari-mutuel wagering
and breeding law, as added by chapter 174 of the laws of 2013, is
amended to read as follows:
1. (A) For a gaming facility in zone two, there is hereby imposed a
tax on gross gaming revenues. The amount of such tax imposed shall be
as follows[; provided, however, should a licensee have agreed within its
application to supplement the tax with a binding supplemental fee
payment exceeding the aforementioned tax rate, such tax and supplemental
fee shall apply for a gaming facility]:
S. 2509--A 196 A. 3009--A
[(a)] (1) in region two, forty-five percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
[(b)] (2) in region one, thirty-nine percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
[(c)] (3) in region five, thirty-seven percent of gross gaming revenue
from slot machines and ten percent of gross gaming revenue from all
other sources.
(B) (1) NOTWITHSTANDING THE RATES IN PARAGRAPH (A) OF THIS SUBDIVI-
SION, A GAMING FACILITY MAY PETITION THE COMMISSION TO LOWER THEIR SLOT
TAX RATE TO NO LOWER THAN TWENTY-FIVE PERCENT. THE COMMISSION SHALL
EVALUATE THE PETITION USING THE FOLLOWING CRITERIA:
(I) THE ABILITY OF THE LICENSEE TO SATISFY THE LICENSE CRITERION OF
FINANCIAL STABILITY ABSENT THE TAX RATE REDUCTION;
(II) A COMPLETE EXAMINATION OF ALL FINANCIAL PROJECTIONS, AS WELL AS
GAMING REVENUES GENERATED FOR THE PRIOR ANNUAL PERIOD;
(III) THE LICENSEE'S INTENDED USE OF THE FUNDS RESULTING FROM A TAX
ADJUSTMENT;
(IV) THE INABILITY OF THE OPERATOR TO REMAIN COMPETITIVE UNDER THE
CURRENT TAX STRUCTURE;
(V) POSITIONS ADVANCED BY OTHER GAMING OPERATORS IN THE STATE IN
RESPONSE TO THE PETITION;
(VI) THE IMPACT ON THE COMPETITIVE LANDSCAPE;
(VII) OTHER ECONOMIC FACTORS SUCH AS EMPLOYMENT AND THE POTENTIAL
IMPACT UPON OTHER BUSINESSES IN THE REGION; AND
(VIII) THE PUBLIC INTEREST TO BE SERVED BY A TAX ADJUSTMENT, INCLUDING
THE IMPACT UPON THE STATE IN THE EVENT THE OPERATOR IS UNABLE TO REMAIN
FINANCIALLY VIABLE.
(2) THE COMMISSION SHALL REPORT THEIR RECOMMENDATION TO THE DIRECTOR
OF THE DIVISION OF BUDGET WHO WILL MAKE A FINAL DETERMINATION.
§ 5. This act shall take effect immediately; provided, however, that
section four of this act shall take effect sixty days after mobile
sports wagering commences and shall expire and be deemed repealed one
year after such date.
PART Z
Section 1. The gaming commission shall issue a request for information
for the purpose of soliciting interest regarding the three unawarded
gaming facility licenses authorized by the state constitution. Such
request shall seek information from parties interested in developing
and/or operating such gaming facilities which shall inform the commis-
sion for the purposes of determining: the appropriate size and scope of
development, the value of the gaming facility license, and the process
that should be used in award consideration.
§ 2. This act shall take effect immediately.
PART AA
Section 1. Paragraph 1 of subdivision a of section 1612 of the tax
law, as amended by chapter 174 of the laws of 2013, is amended to read
as follows:
(1) sixty percent of the total amount for which tickets have been sold
for [a lawful lottery] THE QUICK DRAW game [introduced on or after the
effective date of this paragraph,] subject to [the following provisions:
S. 2509--A 197 A. 3009--A
(A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
(i) if the licensee does not hold a license issued pursuant to the
alcoholic beverage control law to sell alcoholic beverages for consump-
tion on the premises, then the premises must have a minimum square
footage greater than two thousand five hundred square feet;
(ii) notwithstanding the foregoing provisions, television equipment
that automatically displays the results of such drawings may be
installed and used without regard to the square footage if such premises
are used as:
(I) a commercial bowling establishment, or
(II) a facility authorized under the racing, pari-mutuel wagering and
breeding law to accept pari-mutuel wagers;
(B) the] rules for the operation of such game [shall be] as prescribed
by regulations promulgated and adopted by the [division, provided howev-
er, that such rules shall provide that no person under the age of twen-
ty-one may participate in such games on the premises of a licensee who
holds a license issued pursuant to the alcoholic beverage control law to
sell alcoholic beverages for consumption on the premises; and, provided,
further, that such regulations may be revised on an emergency basis not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph] COMMIS-
SION; or
§ 2. This act shall take effect immediately.
PART BB
Section 1. Paragraphs 4 and 5 of subdivision a of section 1612 of the
tax law, as amended by chapter 174 of the laws of 2013, are amended to
read as follows:
(4) fifty percent of the total amount for which tickets have been sold
for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete
games in which the participants select no more than three or four of
their own numbers to match with three or four numbers drawn by the
[division] COMMISSION for purposes of determining winners of such games,
(B) "Pick 10", [offered no more than once daily,] in which participants
select from a specified field of numbers a subset of ten numbers to
match against a subset of numbers to be drawn by the [division] COMMIS-
SION from such field of numbers for the purpose of determining winners
of such game, (C) "Take 5", [offered no more than once daily,] in which
participants select from a specified field of numbers a subset of five
numbers to match against a subset of five numbers to be drawn by the
[division] COMMISSION from such field of numbers for purposes of deter-
mining winners of such game; or
(5) forty percent of the total amount for which tickets have been sold
for: (A) "Lotto", [offered no more than once daily,] a discrete game in
which all participants select a specific subset of numbers to match a
specific subset of numbers, as prescribed by rules and regulations
promulgated and adopted by the [division] COMMISSION, from a larger
specific field of numbers, as also prescribed by such rules and regu-
lations and (B) with the exception of the game described in paragraph
one of this subdivision, such other state-operated lottery games [which]
THAT the [division] COMMISSION may introduce, [offered no more than once
daily,] commencing on or after forty-five days following the official
publication of the rules and regulations for such game.
§ 2. This act shall take effect immediately.
S. 2509--A 198 A. 3009--A
PART CC
Section 1. Sections 1368, 1369, 1370 and 1371 of the racing, pari-mu-
tuel wagering and breeding law are renumbered sections 130, 131, 132 and
133.
§ 2. Title 9 of article 13 of the racing, pari-mutuel wagering and
breeding law is REPEALED.
§ 3. Section 130 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 174 of the laws of 2013 and as renumbered by section
one of this act, is amended to read as follows:
§ 130. [Establishment of the] THE office of gaming inspector general.
[There is hereby created within the commission the office of gaming
inspector general. The head of the office shall be the gaming inspector
general who shall be appointed by the governor by and with the advice
and consent of the senate. The inspector general shall serve at the
pleasure of the governor. The inspector general shall report directly to
the governor. The person appointed as inspector general shall, upon his
or her appointment, have not less than ten years professional experience
in law, investigation, or auditing. The inspector general shall be
compensated within the limits of funds available therefor, provided,
however, such salary shall be no less than the salaries of certain state
officers holding the positions indicated in paragraph (a) of subdivision
one of section one hundred sixty-nine of the executive law.] THE DUTIES
AND RESPONSIBILITIES OF THE FORMER OFFICE OF THE GAMING INSPECTOR GENER-
AL ARE TRANSFERRED TO AND ENCOMPASSED BY THE OFFICE OF THE STATE INSPEC-
TOR GENERAL AS EXPRESSLY REFERENCED IN ARTICLE FOUR-A OF THE EXECUTIVE
LAW.
§ 4. Section 131 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 174 of the laws of 2013 and as renumbered by section
one of this act, is amended to read as follows:
§ 131. [State gaming] GAMING inspector general; functions and duties.
The [state] gaming inspector general shall have the following duties and
responsibilities:
1. receive and investigate complaints from any source, or upon his or
her own initiative, concerning allegations of corruption, fraud, crimi-
nal activity, conflicts of interest or abuse in the commission;
2. [inform the commission members of such allegations and the progress
of investigations related thereto, unless special circumstances require
confidentiality;
3.] determine with respect to such allegations whether disciplinary
action, civil or criminal prosecution, or further investigation by an
appropriate federal, state or local agency is warranted, and to assist
in such investigations;
[4.] 3. prepare and release to the public written reports of such
investigations, 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 confidentiality of ongoing investigations;
[5.] 4. review and examine periodically the policies and procedures of
the commission with regard to the prevention and detection of
corruption, fraud, criminal activity, conflicts of interest or abuse;
[6.] 5. recommend remedial action to prevent or eliminate corruption,
fraud, criminal activity, conflicts of interest or abuse in the commis-
sion; and
[7.] 6. establish programs for training commission officers and
employees [regarding] IN REGARD TO the prevention and elimination of
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corruption, fraud, criminal activity, conflicts of interest or abuse in
the commission.
§ 5. Section 132 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 174 of the laws of 2013 and as renumbered by section
one of this act, is amended to read as follows:
§ 132. Powers. The [state] gaming inspector general shall have the
power to:
1. subpoena and enforce the attendance of witnesses;
2. administer oaths or affirmations and examine witnesses under oath;
3. require the production of any books and papers deemed relevant or
material to any investigation, examination or review;
4. notwithstanding any law to the contrary, examine and copy or remove
documents or records of any kind prepared, maintained or held by the
commission;
5. require any commission officer or employee to answer questions
concerning any matter related to the performance of his or her official
duties. NO STATEMENT OR OTHER EVIDENCE DERIVED THEREFROM MAY BE USED
AGAINST SUCH OFFICER OR EMPLOYEE IN ANY SUBSEQUENT CRIMINAL PROSECUTION
OTHER THAN FOR PERJURY OR CONTEMPT ARISING FROM SUCH TESTIMONY. The
refusal of any officer or employee to answer questions shall be cause
for removal from office or employment or other appropriate penalty;
6. monitor the implementation by the commission of any recommendations
made by the state inspector general; and
7. perform any other functions that are necessary or appropriate to
fulfill the duties and responsibilities of the office.
§ 6. Section 133 of the racing, pari-mutuel wagering and breeding law,
as added by chapter 174 of the laws of 2013 and as renumbered by section
one of this act, is amended to read as follows:
§ 133. Responsibilities of the commission and its officers and employ-
ees. 1. Every commission officer or employee shall report promptly to
the [state] gaming inspector general any information concerning
corruption, fraud, criminal activity, conflicts of interest or abuse by
another state officer or employee relating to his or her office or
employment, or by a person having business dealings with the commission
relating to those dealings. The knowing failure of any officer or
employee to so report shall be cause for removal from office or employ-
ment or other appropriate penalty under this article. Any officer or
employee who acts pursuant to this subdivision by reporting to the
[state] gaming inspector general or other appropriate law enforcement
official improper governmental action as defined in section seventy-
five-b of the civil service law shall not be subject to dismissal,
discipline or other adverse personnel action.
2. The commission chair shall advise the governor within ninety days
of the issuance of a report by the [state] gaming inspector general as
to the remedial action that the commission has taken in response to any
recommendation for such action contained in such report.
§ 7. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 134 to read as follows:
§ 134. TRANSFER OF EMPLOYEES. UPON THE TRANSFER OF FUNCTIONS,
POWERS, DUTIES AND OBLIGATIONS TO THE OFFICE OF THE STATE INSPECTOR
GENERAL PURSUANT TO THIS ARTICLE, PROVISION SHALL BE MADE FOR THE
TRANSFER OF ALL GAMING INSPECTOR GENERAL EMPLOYEES FROM WITHIN THE
GAMING COMMISSION INTO THE OFFICE OF THE STATE INSPECTOR GENERAL.
EMPLOYEES SO TRANSFERRED SHALL BE TRANSFERRED WITHOUT FURTHER EXAM-
INATION OR QUALIFICATION TO THE SAME OR SIMILAR TITLES, SHALL
REMAIN IN THE SAME COLLECTIVE BARGAINING UNITS AND SHALL RETAIN THEIR
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RESPECTIVE CIVIL SERVICE CLASSIFICATIONS, STATUS AND RIGHTS PURSUANT TO
THEIR COLLECTIVE BARGAINING UNITS AND COLLECTIVE BARGAINING AGREE-
MENTS.
§ 8. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 135 to read as follows:
§ 135. TRANSFER OF RECORDS. ALL BOOKS, PAPERS, RECORDS AND PROPERTY OF
THE GAMING INSPECTOR GENERAL WITHIN THE GAMING COMMISSION WITH RESPECT
TO THE FUNCTIONS, POWERS, DUTIES AND OBLIGATIONS TRANSFERRED BY
SECTION ONE HUNDRED THIRTY OF THIS ARTICLE, ARE TO BE DELIVERED TO THE
APPROPRIATE SUCCESSOR OFFICES WITHIN THE OFFICE OF THE STATE INSPECTOR
GENERAL, AT SUCH PLACE AND TIME, AND IN SUCH MANNER AS THE OFFICE OF
THE STATE INSPECTOR GENERAL MAY REQUIRE.
§ 9. This act shall take effect on the sixtieth day after it shall
have become a law.
PART DD
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 Z of chapter 59 of the laws of 2020, 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
S. 2509--A 201 A. 3009--A
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 [twenty-one] TWENTY-TWO; 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 [twenty-one] TWENTY-TWO; and (iv) no in-home
simulcasting 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 separately
amended by chapter 243 and section 2 of part Z of chapter 59 of the laws
of 2020, 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 [twenty-one] TWENTY-TWO, the amount used exclu-
sively 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 twenty-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 separately amended by
section 3 of part Z of chapter 59 and chapter 243 of the laws of 2020,
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 [twenty-one] TWENTY-TWO and on any day regard-
less of whether or not a franchised corporation is conducting a race
meeting in Saratoga county at Saratoga thoroughbred racetrack after June
thirtieth, two thousand [twenty-one] TWENTY-TWO. On any day on which a
franchised corporation has not scheduled a racing program but a
thoroughbred racing corporation located within the state is conducting
racing, each off-track betting corporation branch office and each simul-
casting facility licensed in accordance with section one thousand seven
(that has entered into a written agreement with such facility's repre-
sentative 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
S. 2509--A 202 A. 3009--A
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 Z of chapter 59 of the
laws of 2020, 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 [twenty-one] TWENTY-TWO. This section shall
supersede 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 Z of chapter 59 of the laws of 2020, 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 [twenty-one] TWENTY-TWO. Every off-track
betting corporation branch office and every simulcasting facility
licensed in accordance with section one thousand seven that have entered
into a written agreement with such facility's representative horsemen's
organization as approved by the commission, one thousand eight or one
thousand nine of this article shall be authorized to accept wagers and
display the live 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 Z of chapter
59 of the laws of 2020, 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 [twenty] TWENTY-ONE, 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 Z of chapter 59 of the
laws of 2020, 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, [2021] 2022; provided, however, that nothing
S. 2509--A 203 A. 3009--A
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 Z of chapter 59 of the laws of 2020, 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, [2021] 2022; 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 separately amended by section
9 of part Z of chapter 59 and chapter 243 of the laws of 2020, 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 are presented for payment
before April first of the year following the year of their purchase,
less an amount that shall be established and retained by such franchised
corporation of between twelve to seventeen percent of the total deposits
in pools resulting from on-track regular bets, and fourteen to twenty-
one percent of the total deposits in pools resulting from on-track
multiple bets and fifteen to twenty-five percent of the total deposits
in pools resulting from on-track exotic bets and fifteen to thirty-six
percent 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 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
S. 2509--A 204 A. 3009--A
percentages of the total pool for regular and multiple bets five percent
of regular bets and four percent of multiple bets plus twenty percent of
the breaks; for exotic wagers seven and one-half percent plus twenty
percent of the breaks, and for super exotic bets seven and one-half
percent plus fifty percent of the breaks.
For the period April first, two thousand one through December thirty-
first, two thousand [twenty-one] TWENTY-TWO, such tax on all wagers
shall be one and six-tenths percent, plus, in each such period, twenty
percent of the breaks. Payment to the New York state thoroughbred breed-
ing and development fund by such franchised corporation shall be one-
half of one percent of total daily on-track pari-mutuel pools resulting
from regular, multiple and exotic bets and three percent of super exotic
bets and for the period April first, two thousand one through December
thirty-first, two thousand [twenty-one] TWENTY-TWO, such payment shall
be seven-tenths of one percent of regular, multiple and exotic pools.
§ 10. This act shall take effect immediately.
PART EE
Section 1. Section 19 of part W-1 of chapter 109 of the laws of 2006
amending the tax law and other laws relating to providing exemptions,
reimbursements and credits from various taxes for certain alternative
fuels, as amended by section 1 of part U of chapter 60 of the laws of
2016, is amended to read as follows:
§ 19. This act shall take effect immediately; provided, however, that
sections one through thirteen of this act shall take effect September 1,
2006 and shall be deemed repealed on September 1, [2021] 2026 and such
repeal shall apply in accordance with the applicable transitional
provisions of sections 1106 and 1217 of the tax law, and shall apply to
sales made, fuel compounded or manufactured, and uses occurring on or
after such date, and with respect to sections seven through eleven of
this act, in accordance with applicable transitional provisions of
sections 1106 and 1217 of the tax law; provided, however, that the
commissioner of taxation and finance shall be authorized on and after
the date this act shall have become a law to adopt and amend any rules
or regulations and to take any steps necessary to implement the
provisions of this act; provided further that sections fourteen through
sixteen of this act shall take effect immediately and shall apply to
taxable years beginning on or after January 1, 2006.
§ 2. This act shall take effect immediately.
PART FF
Section 1. Subsection (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 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 dollars. For taxable years beginning on or after January first,
two thousand eighteen and before January first, two thousand 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
hundred dollars. For taxable years beginning on or after January first,
two thousand nineteen and before January first, two thousand twenty, the
S. 2509--A 205 A. 3009--A
amount of the credit allowed under this section shall be equal to the
product of the total number of eligible farm employees and five 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
dollars. For taxable years beginning on or after January first, two
thousand twenty-one and before January first, two thousand [twenty-two]
TWENTY-FIVE, 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.
§ 2. Section 5 of part RR of chapter 60 of the laws of 2016 amending
the tax law relating to creating a farm workforce retention credit is
amended to read as follows:
§ 5. This act shall take effect immediately and shall apply only to
taxable years beginning on or after January 1, 2017 and before January
1, [2022] 2025.
§ 3. This act shall take effect immediately.
PART GG
Section 1. 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] TWELVE 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 eligi-
ble low-income building for each year of the credit period.
§ 2. Subdivision 4 of section 22 of the public housing law, as amended
by section one of this act, 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 [twelve] TWENTY 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 eligi-
ble low-income building for each year of the credit period.
§ 3. Subdivision 4 of section 22 of the public housing law, as amended
by section two of this act, 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 [twenty] TWENTY-EIGHT 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 for each year of the credit period.
§ 4. Subdivision 4 of section 22 of the public housing law, as amended
by section three of this act, 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 [twenty-eight] THIRTY-SIX million
dollars. The limitation provided by this subdivision applies only to
allocation of the aggregate dollar amount of credit by the commissioner,
S. 2509--A 206 A. 3009--A
and does not apply to allowance to a taxpayer of the credit with respect
to an eligible low-income building for each year of the credit period.
§ 5. Subdivision 4 of section 22 of the public housing law, as amended
by section four of this act, 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 [thirty-six] FORTY-FOUR 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 for each year of the credit period.
§ 6. This act shall take effect immediately; provided, however,
section two of this act shall take effect April 1, 2022; section three
of this act shall take effect April 1, 2023; section four of this act
shall take effect April 1, 2024; and section five of this act shall take
effect April 1, 2025.
PART HH
Section 1. Section 5 of part HH of chapter 59 of the laws of 2014,
amending the tax law relating to a musical and theatrical production
credit, as amended by section 1 of part III of chapter 59 of the laws of
2018, is amended to read as follows:
§ 5. This act shall take effect immediately, provided that section two
of this act shall take effect on January 1, 2015, and shall apply to
taxable years beginning on or after January 1, 2015, with respect to
"qualified production expenditures" and "transportation expenditures"
paid or incurred on or after such effective date, regardless of whether
the production of the qualified musical or theatrical production
commenced before such date, provided further that this act shall expire
and be deemed repealed [8 years after such date] JANUARY 1, 2026.
§ 2. Paragraph 1 of subdivision (e) of section 24-a of the tax law, as
added by section 1 of part HH of chapter 59 of the laws of 2014, is
amended to read as follows:
(1) The aggregate amount of tax credits allowed under this section,
subdivision forty-seven of section two hundred ten-B and subsection (u)
of section six hundred six of this chapter in any calendar year shall be
[four] EIGHT million dollars. Such aggregate amount of credits shall be
allocated by the department of economic development among taxpayers in
order of priority based upon the date of filing an application for allo-
cation of musical and theatrical production credit with such department.
If the total amount of allocated credits applied for in any particular
year exceeds the aggregate amount of tax credits allowed for such year
under this section, such excess shall be treated as having been applied
for on the first day of the subsequent year.
§ 3. This act shall take effect immediately, provided, however, that
the amendments to section 24-a of the tax law made by section two of
this act shall not affect the expiration and repeal of such section and
shall be deemed to expire and repeal therewith.
PART II
Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi-
vision 29 of section 210-B of the tax law, as amended by section 1 of
part B of chapter 59 of the laws of 2020, are amended to read as
follows:
S. 2509--A 207 A. 3009--A
(a) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-two] TWENTY-FOUR, a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which
the qualified veteran completes one year of employment by the taxpayer.
If the taxpayer claims the credit allowed under this subdivision, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any other credit allowed under this
article.
(2) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-one] TWENTY-THREE; and
§ 2. Paragraph 1 and subparagraph (B) of paragraph 2 of subsection
(a-2) of section 606 of the tax law, as amended by section 2 of part B
of chapter 59 of the laws of 2020, are amended to read as follows:
(1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-two] TWENTY-FOUR, a taxpayer shall be allowed a credit, to be
computed as provided in this subsection, against the tax imposed by this
article, for hiring and employing, for not less than one year and for
not less than thirty-five hours each week, a qualified veteran within
the state. The taxpayer may claim the credit in the year in which the
qualified veteran completes one year of employment by the taxpayer. If
the taxpayer claims the credit allowed under this subsection, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any other credit allowed under this
article.
(B) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-one] TWENTY-THREE; and
§ 3. Paragraph 1 and subparagraph (B) of paragraph 2 of subdivision
(g-1) of section 1511 of the tax law, as amended by section 3 of part B
of chapter 59 of the laws of 2020, are amended to read as follows:
(1) Allowance of credit. For taxable years beginning on or after Janu-
ary first, two thousand fifteen and before January first, two thousand
[twenty-two] TWENTY-FOUR, a taxpayer shall be allowed a credit, to be
computed as provided in this subdivision, against the tax imposed by
this article, for hiring and employing, for not less than one year and
for not less than thirty-five hours each week, a qualified veteran with-
in the state. The taxpayer may claim the credit in the year in which
the qualified veteran completes one year of employment by the taxpayer.
If the taxpayer claims the credit allowed under this subdivision, the
taxpayer may not use the hiring of a qualified veteran that is the basis
for this credit in the basis of any other credit allowed under this
article.
(B) who commences employment by the qualified taxpayer on or after
January first, two thousand fourteen, and before January first, two
thousand [twenty-one] TWENTY-THREE; and
§ 4. This act shall take effect immediately.
PART JJ
S. 2509--A 208 A. 3009--A
Section 1. Section 12 of part V of chapter 61 of the laws of 2011,
amending the economic development law, the tax law and the real property
tax law, relating to establishing the economic transformation and facil-
ity redevelopment program and providing tax benefits under that program,
is amended to read as follows:
§ 12. This act shall take effect immediately and shall expire and be
deemed repealed December 31, [2021] 2031.
§ 2. Paragraph (a) of subdivision 11 of section 400 of the economic
development law, as amended by section 1 of part GG of chapter 58 of the
laws of 2020, is amended to read as follows:
(a) a correctional facility, as defined in paragraph (a) of subdivi-
sion four of section two of the correction law, that has been selected
by the governor of the state of New York for closure after April first,
two thousand eleven but no later than March thirty-first, two thousand
[twenty-one] TWENTY-SIX; or
§ 3. This act shall take effect immediately; provided, however, that
the amendments to section 400 of the economic development law made by
section two of this act shall not affect the repeal of such section and
shall be deemed repealed therewith.
PART KK
Section 1. The opening paragraph of section 1310 of the general busi-
ness law, as added by section 2 of part X of chapter 55 of the laws of
2018, is amended to read as follows:
Except as otherwise provided in this article, the program shall be
implemented, and enrollment of employees shall begin[, within twenty-
four months after the effective date of this article] NO LATER THAN
DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-ONE. The provisions of this
section shall be in force after the board opens the program for enroll-
ment.
§ 2. Section 1315 of the general business law, as added by section 2
of part X of chapter 55 of the laws of 2018, is amended to read as
follows:
§ 1315. Delayed implementation. The board may delay the implementation
of the program an additional twelve months beyond the [twenty-four
months] DATE established in section thirteen hundred ten of this article
if the board determines that further delay is necessary to address
legal, financial or other programmatic concerns impacting the viability
of the program. The board shall provide reasonable notice of such delay
to the governor, the commissioner, the speaker of the assembly, the
temporary president of the senate, the chair of the assembly ways and
means committee, the chair of the senate finance committee, the chair of
the assembly labor committee, and the chair of the senate labor commit-
tee.
§ 3. This act shall take effect immediately.
PART LL
Section 1. For the period from and after March 1, 2020 until such time
as the licensee and the video lottery gaming facility that are each
subject to subdivision 2 of section 1355 of the racing, pari-mutuel
wagering and breeding law, as added by the Upstate New York Gaming
Economic Development Act of 2013, as amended, have each been continuous-
ly operating without any restrictions related to Covid-19 for at least
six full and consecutive calendar months, the payments to the relevant
S. 2509--A 209 A. 3009--A
horsemen and breeders required by subdivision 2 of section 1355 of the
racing, pari-mutuel wagering and breeding law, as added by the Upstate
New York Gaming Economic Development Act of 2013, as amended, shall not
accrue and shall be permanently waived and forgiven. The accrual and
obligation to make payments under such subdivision 2 of such section
1355 shall recommence at such time as the licensee and the video lottery
gaming facility that are each subject to such subdivision 2 of such
section 1355 have each been continuously operating without any
restrictions related to Covid-19 for at least six full and consecutive
calendar months. Payments to the relevant horsemen and breeders for the
period beginning January 1, 2020 through February 28, 2020 shall be
payable in six equal monthly installments of $106,407 per month over a
six-month period beginning with the first month after the licensee has
been continuously operating without any restrictions related to Covid-19
for at least six full and consecutive calendar months.
§ 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 LL of this act shall be
as specifically set forth in the last section of such Parts.