STATE OF NEW YORK
        ________________________________________________________________________

                                          5344

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      March 7, 2023
                                       ___________

        Introduced  by  M.  of  A.  CUNNINGHAM,  DILAN,  GIBBS  -- read once and
          referred to the Committee on 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:

     1    Section  1.  The correction law is amended by adding a new section 188
     2  to read as follows:
     3    § 188. Adjustment of  earnings  of  incarcerated  individuals;  unjust
     4  conviction.  1. (a) Any incarcerated individual who is employed pursuant
     5  to the provisions of this article shall be  entitled  to  a  retroactive
     6  adjustment  in  their rate of compensation where such incarcerated indi-
     7  vidual is subsequently (i) pardoned upon the grounds of innocence of the
     8  crime or crimes for which such incarcerated individual was sentenced and
     9  which are the grounds for the fine, restitution or reparation;  or  (ii)
    10  such  incarcerated  individual's  judgment of conviction was reversed or
    11  vacated, and the accusatory instrument dismissed or, if a new trial  was
    12  ordered, either such incarcerated individual was found not guilty at the
    13  new  trial  or such defendant was not retried and the accusatory instru-
    14  ment dismissed; provided that the judgment of conviction was reversed or
    15  vacated, and the accusatory instrument was  dismissed,  on  any  of  the
    16  following  grounds:  (1) paragraph (a), (b), (c), (e) or (g) of subdivi-
    17  sion one of section 440.10 of the criminal procedure law; or (2)  subdi-
    18  vision  one  (where  based  upon grounds set forth in clause one of this
    19  subparagraph), two, three (where the count dismissed was the sole  basis
    20  for  the  imprisonment  complained  of) or five of section 470.20 of the
    21  criminal procedure law; or (3) comparable provisions of the former  code
    22  of criminal procedure or subsequent law; or (4) the statute, or applica-
    23  tion  thereof, on which the accusatory instrument was based violated the
    24  constitution of the United States or the state of New York.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09600-01-3

        A. 5344                             2

     1    (b) Such compensation adjustment shall be the greater of:
     2    (i) the current minimum wage of the state;
     3    (ii) the current wage or industry standard wage of the trade or indus-
     4  try  that  such  incarcerated  individual  was  actively  employed in or
     5  trained/certified to work in; or
     6    (iii) the wage equivalent of the incarcerated individual's  salary  at
     7  the time of conviction.
     8    2.  Within  ninety  days following the notice of adjudication for such
     9  pardon, reversal or vacation pursuant to subparagraphs (i) and  (ii)  of
    10  paragraph  (a)  of subdivision one of this section, the department shall
    11  notify such formerly incarcerated individual of their right to receive a
    12  compensation adjustment pursuant to the provisions of this section.
    13    3. Within ninety days of providing notice pursuant to subdivision  two
    14  of this section, the department shall remit to such formerly incarcerat-
    15  ed  individual  any  moneys  owed as adjusted compensation as well as an
    16  accounting, including the method of accounting, for all such moneys.
    17    4. Notwithstanding any provision of law to the  contrary,  any  moneys
    18  remitted   to   a  formerly  incarcerated  individual  pursuant  to  the
    19  provisions of this section shall not diminish or impair any compensation
    20  or award which may be available to such formerly incarcerated individual
    21  pursuant to the provisions of section eight-b of  the  court  of  claims
    22  act.
    23    §  2.  Subsection  (i)  of  section  601  of the tax law is relettered
    24  subsection (j) and a new subsection (i) is added to read as follows:
    25    (i)  Adjusted  compensation  of  formerly  incarcerated   individuals.
    26  Notwithstanding  the  provisions of subsections (a), (b), (c) and (d) of
    27  this section and any other provision of this article, for taxable  years
    28  beginning  after the effective date of this subsection, the income of an
    29  individual received pursuant to the provisions of  section  one  hundred
    30  eighty-eight  of  the correction law shall be exempt from tax under this
    31  article regardless of whether such income is subject to  federal  income
    32  taxation.
    33    §  3.  This  act shall take effect on the thirtieth day after it shall
    34  have become a law.