S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4855
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 15, 2023
                                ___________
 
 Introduced  by  Sen.  CLEARE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Crime Victims,  Crime  and
   Correction
 
 AN  ACT  to  amend  the  correction  law and the tax law, in relation to
   adjusting the earnings of formerly incarcerated individuals  who  were
   unjustly convicted

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The correction law is amended by adding a new  section  188
 to read as follows:
   §  188.  ADJUSTMENT  OF  EARNINGS  OF INCARCERATED INDIVIDUALS; UNJUST
 CONVICTION. 1. (A) ANY INCARCERATED INDIVIDUAL WHO IS EMPLOYED  PURSUANT
 TO  THE  PROVISIONS  OF  THIS ARTICLE SHALL BE ENTITLED TO A RETROACTIVE
 ADJUSTMENT IN THEIR RATE OF COMPENSATION WHERE SUCH  INCARCERATED  INDI-
 VIDUAL IS SUBSEQUENTLY (I) PARDONED UPON THE GROUNDS OF INNOCENCE OF THE
 CRIME OR CRIMES FOR WHICH SUCH INCARCERATED INDIVIDUAL WAS SENTENCED AND
 WHICH  ARE  THE GROUNDS FOR THE FINE, RESTITUTION OR REPARATION; OR (II)
 SUCH INCARCERATED INDIVIDUAL'S JUDGMENT OF CONVICTION  WAS  REVERSED  OR
 VACATED,  AND THE ACCUSATORY INSTRUMENT DISMISSED OR, IF A NEW TRIAL WAS
 ORDERED, EITHER SUCH INCARCERATED INDIVIDUAL WAS FOUND NOT GUILTY AT THE
 NEW TRIAL OR SUCH DEFENDANT WAS NOT RETRIED AND THE  ACCUSATORY  INSTRU-
 MENT DISMISSED; PROVIDED THAT THE JUDGMENT OF CONVICTION WAS REVERSED OR
 VACATED,  AND  THE  ACCUSATORY  INSTRUMENT  WAS DISMISSED, ON ANY OF THE
 FOLLOWING GROUNDS: (1) PARAGRAPH (A), (B), (C), (E) OR (G)  OF  SUBDIVI-
 SION  ONE OF SECTION 440.10 OF THE CRIMINAL PROCEDURE LAW; OR (2) SUBDI-
 VISION ONE (WHERE BASED UPON GROUNDS SET FORTH IN  CLAUSE  ONE  OF  THIS
 SUBPARAGRAPH),  TWO, THREE (WHERE THE COUNT DISMISSED WAS THE SOLE BASIS
 FOR THE IMPRISONMENT COMPLAINED OF) OR FIVE OF  SECTION  470.20  OF  THE
 CRIMINAL  PROCEDURE LAW; OR (3) COMPARABLE PROVISIONS OF THE FORMER CODE
 OF CRIMINAL PROCEDURE OR SUBSEQUENT LAW; OR (4) THE STATUTE, OR APPLICA-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09600-01-3
 S. 4855                             2
              

 
 TION THEREOF, ON WHICH THE ACCUSATORY INSTRUMENT WAS BASED VIOLATED  THE
 CONSTITUTION OF THE UNITED STATES OR THE STATE OF NEW YORK.
   (B) SUCH COMPENSATION ADJUSTMENT SHALL BE THE GREATER OF:
   (I) THE CURRENT MINIMUM WAGE OF THE STATE;
   (II) THE CURRENT WAGE OR INDUSTRY STANDARD WAGE OF THE TRADE OR INDUS-
 TRY  THAT  SUCH  INCARCERATED  INDIVIDUAL  WAS  ACTIVELY  EMPLOYED IN OR
 TRAINED/CERTIFIED TO WORK IN; OR
   (III) THE WAGE EQUIVALENT OF THE INCARCERATED INDIVIDUAL'S  SALARY  AT
 THE TIME OF CONVICTION.
   2.  WITHIN  NINETY  DAYS FOLLOWING THE NOTICE OF ADJUDICATION FOR SUCH
 PARDON, REVERSAL OR VACATION PURSUANT TO SUBPARAGRAPHS (I) AND  (II)  OF
 PARAGRAPH  (A)  OF SUBDIVISION ONE OF THIS SECTION, THE DEPARTMENT SHALL
 NOTIFY SUCH FORMERLY INCARCERATED INDIVIDUAL OF THEIR RIGHT TO RECEIVE A
 COMPENSATION ADJUSTMENT PURSUANT TO THE PROVISIONS OF THIS SECTION.
   3. WITHIN NINETY DAYS OF PROVIDING NOTICE PURSUANT TO SUBDIVISION  TWO
 OF THIS SECTION, THE DEPARTMENT SHALL REMIT TO SUCH FORMERLY INCARCERAT-
 ED  INDIVIDUAL  ANY  MONEYS  OWED AS ADJUSTED COMPENSATION AS WELL AS AN
 ACCOUNTING, INCLUDING THE METHOD OF ACCOUNTING, FOR ALL SUCH MONEYS.
   4. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  ANY  MONEYS
 REMITTED   TO   A  FORMERLY  INCARCERATED  INDIVIDUAL  PURSUANT  TO  THE
 PROVISIONS OF THIS SECTION SHALL NOT DIMINISH OR IMPAIR ANY COMPENSATION
 OR AWARD WHICH MAY BE AVAILABLE TO SUCH FORMERLY INCARCERATED INDIVIDUAL
 PURSUANT TO THE PROVISIONS OF SECTION EIGHT-B OF  THE  COURT  OF  CLAIMS
 ACT.
   §  2.  Subsection  (i)  of  section  601  of the tax law is relettered
 subsection (j) and a new subsection (i) is added to read as follows:
   (I)  ADJUSTED  COMPENSATION  OF  FORMERLY  INCARCERATED   INDIVIDUALS.
 NOTWITHSTANDING  THE  PROVISIONS OF SUBSECTIONS (A), (B), (C) AND (D) OF
 THIS SECTION AND ANY OTHER PROVISION OF THIS ARTICLE, FOR TAXABLE  YEARS
 BEGINNING  AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, THE INCOME OF AN
 INDIVIDUAL RECEIVED PURSUANT TO THE PROVISIONS OF  SECTION  ONE  HUNDRED
 EIGHTY-EIGHT  OF  THE CORRECTION LAW SHALL BE EXEMPT FROM TAX UNDER THIS
 ARTICLE REGARDLESS OF WHETHER SUCH INCOME IS SUBJECT TO  FEDERAL  INCOME
 TAXATION.
   §  3.  This  act shall take effect on the thirtieth day after it shall
 have become a law.