Bill Text: NY A09509 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and repeals section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); makes technical corrections to various statutes impacting property taxes and repeals certain sections of law relating thereto (Part E); relates to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); relates to the statute of limitations for assessing tax on amended tax returns (Part H); provides for employee wage reporting consistency between the department of taxation and finance and the department of labor by adjusting certain reporting periods (Part I); relates to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments, exempting sales for resale from such taxes (Part J); relates to sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); relates to the definition of resident for tax purposes of the personal income tax (Part O); establishes that any reference to section 24 of the Internal revenue code shall be a reference to such section as it existed immediately prior to the enactment of Public Law-115-97 (Part P); extends the hire a veteran credit for an additional two years (Part Q); relates to the New York youth job program (Part R); relates to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); provides relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); relates to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); relates to adjusting the franchise payment; establishes an advisory committee to review the structure, operations and funding of equine drug testing and research (Part EE); relates to the sums of pertaining to simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and licenses for simulcast facilities (Part GG); relates to the commercial gaming revenue fund; and repeals subdivision 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); addresses changes made to the internal revenue code (Part JJ); relates to federal gross income and federal deductions allowed pursuant to the internal revenue code; and relates to the taxation of business corporations (Part KK); establishes the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; relates to credits for contributions to accounts in the charitable gifts trust fund; authorizes school districts, counties and New York city to establish charitable funds; and authorizes such localities to provide a credit against real property taxes for such contributions (Part LL); establishes the employer compensation expense program (Part MM); relates to the New York Jockey Injury Compensation Fund, Inc.; creates a separate account for the horsemen's organization for the purposes of collateral to secure workers' compensation insurance coverage (Part NN); relates to the disposition of net revenue (Part OO); relates to the state low income housing credit (Part PP); extends certain tax rates (Part QQ); relates to the credit for rehabilitation of historical properties (Part RR); relates to the personal income tax on residents of the city of New York (Part SS); relates to capital awards to vendor tracks (Part TT); relates to the disposition of certain proceeds collected by the commissioner of motor vehicles, the disposition of certain fees and assessments, and certain funds; repeals subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; repeals subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and repeals subdivision 4 of section 94 of the transportation law relating to certain fees collected by the commissioner of transportation (Part UU); relates to funding of capital and operating costs related to projects in the MTA New York city subway action plan (Part VV); utilizes reserves in the mortgage insurance fund for various housing purposes; authorizes the homeless housing and assistance corporation with the office of temporary and disability assistance to administer the sum of two million dollars; further authorizes the state of New York municipal bond bank agency to provide the sum not to exceed nine million dollars to the city of Albany; increases the number of supreme court justices in judicial districts 9, 10, 11, 12 and 13 (Part XX); increases the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); establishes a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); relates to funding local government entities from the urban development corporation (Part AAA); provides for the administration of certain funds and accounts related to the 2018-19 budget and authorizes certain payments and transfers; relates to payments, transfers and deposits; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; establishes the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; increases the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; increases the bonding limit for certain public protection facilities; authorizes certain payments and transfers, in relation to the effectiveness thereof; increases the amount of authorized matching capital grants; increases the amount of bonds authorized to be issued; authorizes the issuance of bonds in relation to grants made to voluntary agencies; and provides for the repeal of certain provisions upon expiration thereof (Part BBB); relates to contracts for excellence and the apportionment of public moneys; relates to the reporting of teacher diversity; relates to teaching tolerance; relates to reporting requirements of school level funding; relates to supplemental public excess cost aid; relates to total foundation aid; relates to building aid; relates to full day kindergarten aid; relates to academic enhancement aid; relates to high tax aid; relates to universal pre-kindergarten aid; relates to the statewide universal full-day pre-kindergarten program; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to reimbursements for the 2018-2019 school year; relates to withholding a portion of employment preparation education aid and relates to the effectiveness of provisions of law relating to funding a program for work force education conducted by the consortium for worker education in New York city; relates to employment preparation education programs; relates to the effectiveness of provisions of law relating to state aid to school districts and the appropriation of funds for the support of government; relates to the effectiveness of provisions of law relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions of law relating to conditional appointment of school district, charter school or BOCES employees; relates to the expiration of provisions of law relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; relates to the effectiveness of provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to the effectiveness of provisions relating to implementation of the No Child Left Behind Act of 2001; relates to the expiration to provisions relating to providing that standardized test scores shall not be included on a student's permanent record; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to sub-allocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to the support of public libraries; relates to certain apportionments; and relates to transportation aid (Part CCC); relates to the utilization of reserves in the mortgage insurance fund for various housing purposes (Part DDD); relates to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); relates to establishing the health care transformation fund (Subpart A); and authorizes the commissioner the health to redeploy excess reserves of certain not-for-profit managed care organizations (Subpart B) (Part FFF); extends expiration of payments to members of the assembly serving in a special capacity; extends provisions relating to the operation and administration of the assembly (Part GGG); establishes a compensation committee to determine the appropriate salaries for members of the legislature and certain state officials; repealer (Part HHH); amends chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishes the "Democracy Protection Act" relating to disclosure of the identities of political committees making certain expenditures for political communications (Part JJJ); establishes the New York City Rikers Island Jail Complex Replacement act; and provides for the repeal of such provisions (Part KKK); establishes the New York city public housing authority modernization investment act; repealer (Part LLL); enacts the "New York Penn Station redevelopment act" (Part MMM); relates to transportation services; establishes the New York city transportation assistance fund and the supplemental revenue transparency program; relates to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; establishes the metropolitan transportation sustainability advisory workgroup and provides for the repeal of such provision (Part NNN); relates to the minority and women-owned business enterprise program (Part OOO); establishes the "New York City housing authority emergency management act" and relates to the development and execution of a plan to remediate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); establishes the New York city BQE Design Build Act (Part QQQ); relates to union dues and the duty of fair representation (Part RRR); relates to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); relates to the possession of weapons by domestic violence offenders (Part TTT); and relates to the health care facility transformation program (Part UUU).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-03-30 - substituted by s7509c [A09509 Detail]
Download: New_York-2017-A09509-Introduced.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2018-2019 state fiscal year; makes the STAR income verification program mandatory; relates to the calculation of income for basic STAR purposes; repeals subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and repeals section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); makes technical corrections to various statutes impacting property taxes and repeals certain sections of law relating thereto (Part E); relates to assessment ceilings for local public utility mass real property, in relation to the effectiveness thereof (Part G); relates to the statute of limitations for assessing tax on amended tax returns (Part H); provides for employee wage reporting consistency between the department of taxation and finance and the department of labor by adjusting certain reporting periods (Part I); relates to sales and compensating use taxes imposed on food and beverages sold by restaurants and similar establishments, exempting sales for resale from such taxes (Part J); relates to sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); relates to the definition of resident for tax purposes of the personal income tax (Part O); establishes that any reference to section 24 of the Internal revenue code shall be a reference to such section as it existed immediately prior to the enactment of Public Law-115-97 (Part P); extends the hire a veteran credit for an additional two years (Part Q); relates to the New York youth job program (Part R); relates to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); provides relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); relates to extending the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); relates to adjusting the franchise payment; establishes an advisory committee to review the structure, operations and funding of equine drug testing and research (Part EE); relates to the sums of pertaining to simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and licenses for simulcast facilities (Part GG); relates to the commercial gaming revenue fund; and repeals subdivision 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); addresses changes made to the internal revenue code (Part JJ); relates to federal gross income and federal deductions allowed pursuant to the internal revenue code; and relates to the taxation of business corporations (Part KK); establishes the charitable gifts trust fund and the health charitable account, and the elementary and secondary education charitable account; relates to credits for contributions to accounts in the charitable gifts trust fund; authorizes school districts, counties and New York city to establish charitable funds; and authorizes such localities to provide a credit against real property taxes for such contributions (Part LL); establishes the employer compensation expense program (Part MM); relates to the New York Jockey Injury Compensation Fund, Inc.; creates a separate account for the horsemen's organization for the purposes of collateral to secure workers' compensation insurance coverage (Part NN); relates to the disposition of net revenue (Part OO); relates to the state low income housing credit (Part PP); extends certain tax rates (Part QQ); relates to the credit for rehabilitation of historical properties (Part RR); relates to the personal income tax on residents of the city of New York (Part SS); relates to capital awards to vendor tracks (Part TT); relates to the disposition of certain proceeds collected by the commissioner of motor vehicles, the disposition of certain fees and assessments, and certain funds; repeals subdivision 5 of section 317 of the vehicle and traffic law relating to certain assessments charged and collected by the commissioner of motor vehicles; repeals subdivision 6 of section 423-a of the vehicle and traffic law relating to funds collected by the department of motor vehicles from the sale of certain assets; and repeals subdivision 4 of section 94 of the transportation law relating to certain fees collected by the commissioner of transportation (Part UU); relates to funding of capital and operating costs related to projects in the MTA New York city subway action plan (Part VV); utilizes reserves in the mortgage insurance fund for various housing purposes; authorizes the homeless housing and assistance corporation with the office of temporary and disability assistance to administer the sum of two million dollars; further authorizes the state of New York municipal bond bank agency to provide the sum not to exceed nine million dollars to the city of Albany; increases the number of supreme court justices in judicial districts 9, 10, 11, 12 and 13 (Part XX); increases the standards of monthly need for aged, blind and disabled persons living in the community (Part YY); establishes a rental subsidy for public assistance recipients living with HIV/AIDS (Part ZZ); relates to funding local government entities from the urban development corporation (Part AAA); provides for the administration of certain funds and accounts related to the 2018-19 budget and authorizes certain payments and transfers; relates to payments, transfers and deposits; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the financing of the correctional facilities improvement fund and the youth facility improvement fund, in relation to the issuance of bonds; relates to housing program bonds and notes; establishes the dedicated highway and bridge trust fund, in relation to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; increases the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; increases the bonding limit for certain public protection facilities; authorizes certain payments and transfers, in relation to the effectiveness thereof; increases the amount of authorized matching capital grants; increases the amount of bonds authorized to be issued; authorizes the issuance of bonds in relation to grants made to voluntary agencies; and provides for the repeal of certain provisions upon expiration thereof (Part BBB); relates to contracts for excellence and the apportionment of public moneys; relates to the reporting of teacher diversity; relates to teaching tolerance; relates to reporting requirements of school level funding; relates to supplemental public excess cost aid; relates to total foundation aid; relates to building aid; relates to full day kindergarten aid; relates to academic enhancement aid; relates to high tax aid; relates to universal pre-kindergarten aid; relates to the statewide universal full-day pre-kindergarten program; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to reimbursements for the 2018-2019 school year; relates to withholding a portion of employment preparation education aid and relates to the effectiveness of provisions of law relating to funding a program for work force education conducted by the consortium for worker education in New York city; relates to employment preparation education programs; relates to the effectiveness of provisions of law relating to state aid to school districts and the appropriation of funds for the support of government; relates to the effectiveness of provisions of law relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions of law relating to conditional appointment of school district, charter school or BOCES employees; relates to the expiration of provisions of law relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets; relates to the effectiveness of provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to the effectiveness of provisions relating to implementation of the No Child Left Behind Act of 2001; relates to the expiration to provisions relating to providing that standardized test scores shall not be included on a student's permanent record; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to sub-allocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to the support of public libraries; relates to certain apportionments; and relates to transportation aid (Part CCC); relates to the utilization of reserves in the mortgage insurance fund for various housing purposes (Part DDD); relates to an online application system for taxpayers to submit claims for reimbursements of certain payments (Part EEE); relates to establishing the health care transformation fund (Subpart A); and authorizes the commissioner the health to redeploy excess reserves of certain not-for-profit managed care organizations (Subpart B) (Part FFF); extends expiration of payments to members of the assembly serving in a special capacity; extends provisions relating to the operation and administration of the assembly (Part GGG); establishes a compensation committee to determine the appropriate salaries for members of the legislature and certain state officials; repealer (Part HHH); amends chapter 59 of the laws of 2014, amending the tax law relating to a musical and theatrical production credit, in relation to extending the provisions thereof (Part III); establishes the "Democracy Protection Act" relating to disclosure of the identities of political committees making certain expenditures for political communications (Part JJJ); establishes the New York City Rikers Island Jail Complex Replacement act; and provides for the repeal of such provisions (Part KKK); establishes the New York city public housing authority modernization investment act; repealer (Part LLL); enacts the "New York Penn Station redevelopment act" (Part MMM); relates to transportation services; establishes the New York city transportation assistance fund and the supplemental revenue transparency program; relates to the installation of mobile bus lane photo devices on buses operating on certain rapid transit routes in the borough of Manhattan and the disposition of revenue from fines and penalties collected from the use of such stationary bus lane photo devices; establishes the metropolitan transportation sustainability advisory workgroup and provides for the repeal of such provision (Part NNN); relates to the minority and women-owned business enterprise program (Part OOO); establishes the "New York City housing authority emergency management act" and relates to the development and execution of a plan to remediate conditions affecting the health and safety of tenants of the New York city housing authority (Part PPP); establishes the New York city BQE Design Build Act (Part QQQ); relates to union dues and the duty of fair representation (Part RRR); relates to substantial equivalence for nonpublic elementary and secondary schools (Part SSS); relates to the possession of weapons by domestic violence offenders (Part TTT); and relates to the health care facility transformation program (Part UUU).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-03-30 - substituted by s7509c [A09509 Detail]
Download: New_York-2017-A09509-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 7509 A. 9509 SENATE - ASSEMBLY January 18, 2018 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the real property tax law, in relation to the annual growth in STAR benefits (Part A); to amend the real property tax law, in relation to making the STAR income verification program mandatory; to amend the tax law, in relation to the calculation of income for basic STAR purposes; to repeal subparagraphs (v) and (vi) of paragraph (b) of subdivision 4, paragraphs (b) and (c) of subdivision 5 and paragraph (c) of subdivision 6 of section 425 of the real property tax law relating to the school tax relief (STAR) exemption; and to repeal section 171-o of the tax law relating to income verification for a city with a population of one million or more (Part B); to amend the real property law, in relation to real property transfer reports (Part C); to amend the real property law, in relation to reports of manufac- tured housing park owners (Part D); to amend the general municipal law, the education law, the state finance law, the real property tax law and the tax law, in relation to making technical corrections to various statutes impacting property taxes; and to repeal subsection (bbb) of section 606 of the tax law, section 3-d of the general munic- ipal law and section 2023-b of the education law, relating thereto (Part E); to amend the real property tax law, in relation to taxable state land (Part F); to amend the real property tax law, in relation to assessment ceilings; and to amend chapter 475 of the laws of 2013, amending the real property tax law relating to assessment ceilings for local public utility mass real property, in relation to the effective- ness thereof (Part G); to amend the tax law and the administrative code of the city of New York, in relation to extending the statute of limitations for assessing tax on amended returns (Part H); to amend the tax law, in relation to providing for employee wage reporting consistency between the department of taxation and finance and the department of labor (Part I); to amend the tax law, in relation to sales and compensating use taxes imposed on food and beverages sold by EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-01-8S. 7509 2 A. 9509 restaurants and similar establishments (Part J); to amend the tax law, in relation to allowing sharing with the comptroller information regarding unwarranted fixed and final debt (Part K); to amend the social services law, in relation to the disclosure of certain informa- tion relating to a person receiving public assistance to the commis- sioner of taxation and finance (Part L); to amend the tax law, in relation to establishing a conditional tax on carried interest (Part M); 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 N); to amend the tax law and the adminis- trative code of the city of New York, in relation to the definition of resident for tax purposes of the personal income tax (Part O); to amend the tax law, in relation to the empire state child credit (Part P); to amend the tax law, in relation to extending the hire a veteran credit for an additional two years (Part Q); to amend the labor law and the tax law, in relation to enhancing the New York youth jobs program (Part R); to amend the tax law, in relation to the temporary deferral of certain tax credits (Part S); to amend the tax law, in relation to extending the real estate transfer tax statute of limita- tions for refunds from two to three years and providing for consistent joint liability treatment within the real estate transfer tax (Part T); to amend the tax law, in relation to the taxation of cigars (Part U); to amend the tax law and the administrative code of the city of New York, in relation to sales and use taxes on gas and electric service; and repealing section 1105-C of the tax law relating thereto (Part V); to amend the tax law, in relation to exempting from sales and use tax certain veterinary drugs and medicines and removing the refund/credit therefor (Part W); to amend the tax law, in relation to providing relief from sales tax liability for certain partners of a limited partnership and members of a limited liability company (Part X); to amend the tax law, in relation to exempting items of food and drink when sold from certain vending machines from the sales and compensating use tax (Part Y); to amend part A of chapter 61 of the laws of 2017, amending the tax law relating to the imposition of sales and compensating use taxes in certain counties, in relation to extend- ing the revenue distribution provisions for the additional rates of sales and use tax of Genesee, Monroe, Onondaga and Orange counties (Part Z); to amend the tax law, in relation to imposing an internet fairness conformity tax and requiring non-collecting sellers to provide specified information to New York purchasers and to the commissioner of taxation and finance (Part AA); to amend the tax law, in relation to imposing a health tax on vapor products (Part BB); to amend the tax law, in relation to the imposition of an opioid epidemic surcharge; and to amend the state finance law, in relation to estab- lishing the opioid prevention, treatment and recovery account (Part CC); to amend the tax law, in relation to establishing a healthcare insurance windfall profit fee (Part DD); to amend the racing, pari-mu- tuel wagering and breeding law, in relation to adjusting the franchise payment, and authorizing night races under certain circumstances; creating an equine drug testing advisory committee; and providing for the repeal of certain provisions upon the expiration thereof (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to providing funds for the aftercare of retired horses (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcastingS. 7509 3 A. 9509 of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part GG); to amend the state finance law, in relation to the commercial gaming revenue fund; and to repeal subdivi- sion 4 of section 97-nnnn of the state finance law relating to base year gaming revenue (Part HH); and to amend the tax law, in relation to commissions paid to the operator of a video lottery facility; to repeal certain provisions of such law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part II) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2018-2019 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through II. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 PART A 13 Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of 14 section 1306-a of the real property tax law, as amended by section 6 of 15 part N of chapter 58 of the laws of 2011, is amended to read as follows: 16 (i) The tax savings for each parcel receiving the exemption authorized 17 by section four hundred twenty-five of this chapter shall be computed by 18 subtracting the amount actually levied against the parcel from the 19 amount that would have been levied if not for the exemption, provided 20 however, that [beginning with] for the two thousand eleven-two thousand 21 twelve through two thousand seventeen-two thousand eighteen school 22 [year] years, the tax savings applicable to any "portion" (which as used 23 herein shall mean that part of an assessing unit located within a school 24 district) shall not exceed the tax savings applicable to that portion in 25 the prior school year multiplied by one hundred two percent, with the 26 result rounded to the nearest dollar; and provided further that begin- 27 ning with the two thousand eighteen-two thousand nineteen school year, 28 the tax savings applicable to any portion shall not exceed the tax 29 savings for the prior year. The tax savings attributable to the basic 30 and enhanced exemptions shall be calculated separately. It shall be the 31 responsibility of the commissioner to calculate tax savings limitations 32 for purposes of this subdivision. 33 § 2. This act shall take effect immediately.S. 7509 4 A. 9509 1 PART B 2 Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of 3 section 425 of the real property tax law, as amended by section 3 of 4 part E of chapter 83 of the laws of 2002, is amended to read as follows: 5 (ii) The term "income" as used herein shall mean the "adjusted gross 6 income" for federal income tax purposes as reported on the applicant's 7 federal or state income tax return for the applicable income tax year, 8 subject to any subsequent amendments or revisions, reduced by distrib- 9 utions, to the extent included in federal adjusted gross income, 10 received from an individual retirement account and an individual retire- 11 ment annuity; provided that if no such return was filed for the applica- 12 ble income tax year, "income" shall mean the adjusted gross income that 13 would have been so reported if such a return had been filed. Provided 14 further, that effective with exemption applications for final assessment 15 rolls to be completed in two thousand nineteen, where an income-eligi- 16 bility determination is wholly or partly based upon the income of one or 17 more individuals who did not file a return for the applicable income tax 18 year, then in order for the application to be considered complete, each 19 such individual must file a statement with the department showing the 20 source or sources of his or her income for that income tax year, and the 21 amount or amounts thereof, that would have been reported on such a 22 return if one had been filed. Such statement shall be filed at such 23 time, and in such form and manner, as may be prescribed by the depart- 24 ment, and shall be subject to the secrecy provisions of the tax law to 25 the same extent that a personal income tax return would be. The depart- 26 ment shall make such forms and instructions available for the filing of 27 such statements. 28 § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 29 425 of the real property tax law, as amended by chapter 451 of the laws 30 of 2015, is amended to read as follows: 31 (iv) (A) Effective with applications for the enhanced exemption on 32 final assessment rolls to be completed in two thousand [three] nineteen, 33 the application form shall indicate that [the] all owners of the proper- 34 ty and any owners' spouses residing on the premises [may authorize the35assessor to] must have their income eligibility verified annually [ther-36eafter] by the [state] department [of taxation and finance, in lieu of37furnishing copies of the applicable income tax return or returns with38the application. If the owners of the property and any owners' spouses39residing on the premises elect to participate in this program, which40shall be known as the STAR income verification program, they] and must 41 furnish their taxpayer identification numbers in order to facilitate 42 matching with records of the department. [Thereafter, their] The income 43 eligibility of such persons shall be verified annually by the 44 department, and the assessor shall not request income documentation from 45 them[, unless such department advises the assessor that they do not46satisfy the applicable income eligibility requirements, or that it is47unable to determine whether they satisfy those requirements]. All appli- 48 cants for the enhanced exemption and all assessing units shall be 49 required to participate in this program, which shall be known as the 50 STAR income verification program. 51 (B) Where the commissioner finds that the enhanced exemption should be 52 replaced with a basic exemption because the income limitation applicable 53 to the enhanced exemption has been exceeded, he or she shall provide the 54 property owners with notice and an opportunity to submit to the commis- 55 sioner evidence to the contrary. Where the commissioner finds that theS. 7509 5 A. 9509 1 enhanced exemption should be removed or denied without being replaced 2 with a basic exemption because the income limitation applicable to the 3 basic exemption has also been exceeded, he or she shall provide the 4 property owners with notice and an opportunity to submit to the commis- 5 sioner evidence to the contrary. In either case, if the owners fail to 6 respond to such notice within forty-five days from the mailing thereof, 7 or if their response does not show to the commissioner's satisfaction 8 that the property is eligible for the exemption claimed, the commission- 9 er shall direct the assessor or other person having custody or control 10 of the assessment roll or tax roll to either replace the enhanced 11 exemption with a basic exemption, or to remove or deny the enhanced 12 exemption without replacing it with a basic exemption, as appropriate. 13 The commissioner shall further direct such person to correct the roll 14 accordingly. Such a directive shall be binding upon the assessor or 15 other person having custody or control of the assessment roll or tax 16 roll, and shall be implemented by such person without the need for 17 further documentation or approval. 18 (C) Notwithstanding any provision of law to the contrary, neither an 19 assessor nor a board of assessment review has the authority to consider 20 an objection to the replacement or removal or denial of an exemption 21 pursuant to this subdivision, nor may such an action be reviewed in a 22 proceeding to review an assessment pursuant to title one or one-A of 23 article seven of this chapter. Such an action may only be challenged 24 before the department. If a taxpayer is dissatisfied with the depart- 25 ment's final determination, the taxpayer may appeal that determination 26 to the state board of real property tax services in a form and manner to 27 be prescribed by the commissioner. Such appeal shall be filed within 28 forty-five days from the issuance of the department's final determi- 29 nation. If dissatisfied with the state board's determination, the 30 taxpayer may seek judicial review thereof pursuant to article seventy- 31 eight of the civil practice law and rules. The taxpayer shall otherwise 32 have no right to challenge such final determination in a court action, 33 administrative proceeding or any other form of legal recourse against 34 the commissioner, the department, the state board of real property tax 35 services, the assessor or other person having custody or control of the 36 assessment roll or tax roll regarding such action. 37 § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of 38 section 425 of the real property tax law are REPEALED. 39 § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the 40 real property tax law are REPEALED. 41 § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- 42 ty tax law, as amended by section 5 of part E of chapter 83 of the laws 43 of 2002 and subparagraph (i) as further amended by subdivision (b) of 44 section 1 of part W of chapter 56 of the laws of 2010, is amended to 45 read as follows: 46 (d) Third party notice. (i) A senior citizen eligible for the enhanced 47 exemption may request that a notice be sent to an adult third party. 48 Such request shall be made on a form prescribed by the commissioner and 49 shall be submitted to the assessor of the assessing unit in which the 50 eligible taxpayer resides no later than sixty days before the first 51 taxable status date to which it is to apply. Such form shall provide a 52 section whereby the designated third party shall consent to such desig- 53 nation. Such request shall be effective upon receipt by the assessor. 54 The assessor shall maintain a list of all eligible property owners who 55 have requested notices pursuant to this paragraph and shall furnish a 56 copy of such list to the department upon request.S. 7509 6 A. 9509 1 (ii) [In the case of a senior citizen who has not elected to partic-2ipate in the STAR income verification program, a notice shall be sent to3the designated third party at least thirty days prior to each ensuing4taxable status date; provided that no such notice need be sent in the5first year if the request was not received by the assessor at least6sixty days before the applicable taxable status date. Such notice shall7read substantially as follows:8"On behalf of (identify senior citizen or citizens), you are advised9that his, her, or their renewal application for the enhanced STAR10exemption must be filed with the assessor no later than (enter date).11You are encouraged to remind him, her, or them of that fact, and to12offer assistance if needed, although you are under no legal obligation13to do so. Your cooperation and assistance are greatly appreciated."14(iii) In the case of a senior citizen who has elected to participate15in the STAR income verification program, a] A notice shall be sent to 16 the designated third party whenever the assessor or department sends a 17 notice to the senior citizen regarding the possible removal of the 18 enhanced STAR exemption. When the exemption is subject to removal 19 because the commissioner has determined that the income eligibility 20 requirement is not satisfied, such notice shall be sent to the third 21 party by the department. When the exemption is subject to removal 22 because the assessor has determined that any other eligibility require- 23 ment is not satisfied, such notice shall be sent to the third party by 24 the assessor. Such notice shall read substantially as follows: 25 "On behalf of (identify senior citizen or citizens), you are advised 26 that his, her, or their enhanced STAR exemption is at risk of being 27 removed. You are encouraged to make sure that he, she or they are aware 28 of that fact, and to offer assistance if needed, although you are under 29 no legal obligation to do so. Your cooperation and assistance are great- 30 ly appreciated." 31 [(iv)] (iii) The obligation to mail such notices shall cease if the 32 eligible taxpayer cancels the request or ceases to qualify for the 33 enhanced STAR exemption. 34 § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- 35 ty tax law is REPEALED. 36 § 7. Subdivision 9-b of section 425 of the real property tax law, as 37 added by section 8 of part E of chapter 83 of the laws of 2002 and para- 38 graph (b) as amended by chapter 742 of the laws of 2005 and further 39 amended by subdivision (b) of section 1 of part W of chapter 56 of the 40 laws of 2010, is amended to read as follows: 41 9-b. Duration of exemption; enhanced exemption. (a) [In the case of42persons who have elected to participate in the STAR income verification43program, the] The enhanced exemption, once granted, shall remain in 44 effect until discontinued in the manner provided in this section. 45 (b) [In the case of persons who have not elected to participate in the46STAR income verification program, the enhanced exemption shall apply for47a term of one year. To continue receiving such enhanced exemption, a48renewal application must be filed annually with the assessor on or49before the applicable taxable status date on a form prescribed by the50commissioner. Provided, however, that if a renewal application is not so51filed, the assessor shall discontinue the enhanced exemption but shall52grant the basic exemption, subject to the provisions of subdivision53eleven of this section.54(c) Whether or not the recipients of an enhanced STAR exemption have55elected to participate in the STAR income verification program, the] The 56 assessor [may review their] shall review the continued compliance ofS. 7509 7 A. 9509 1 recipients of the enhanced exemption with the applicable ownership and 2 residency requirements to the same extent as if they were receiving a 3 basic STAR exemption. 4 [(d) Notwithstanding the foregoing provisions of this subdivision, the5enhanced exemption shall be continued without a renewal application as6long as the property continues to be eligible for the senior citizens7exemption authorized by section four hundred sixty-seven of this title.] 8 § 8. Section 425 of the real property tax law is amended by adding a 9 new subdivision 14-a to read as follows: 10 14-a. Implementation of certain eligibility determinations. When a 11 taxpayer's eligibility for exemption under this section for a school 12 year is affected by a determination made in accordance with subparagraph 13 (iv) of paragraph (b) of subdivision four of this section or paragraph 14 (c) or (d) of subdivision fourteen of this section, and the determi- 15 nation is made after the school district taxes for that school year have 16 been levied, the provisions of this subdivision shall be applicable. 17 (a) If the determination restores or increases the taxpayer's 18 exemption for that school year, the commissioner is authorized to remit 19 the excess directly to the property owner upon receiving confirmation 20 that the taxpayer's original school tax bill has been paid in full. The 21 amounts payable by the commissioner under this paragraph shall be paid 22 from the account established for the payment of STAR benefits to late 23 registrants pursuant to subparagraph (iii) of paragraph (a) of subdivi- 24 sion fourteen of this section. When the commissioner implements the 25 determination in this manner, he or she shall so notify the assessor and 26 county director of real property tax services, but no correction shall 27 be made to the assessment roll or tax roll for that school year, and no 28 refund shall be issued by the school authorities to the property owner 29 or his or her agent for the excessive amount of school taxes paid for 30 that school year. 31 (b) If the determination removes, denies or decreases the taxpayer's 32 exemption for that school year, the commissioner is authorized to 33 collect the shortfall directly from the owners of the property, together 34 with interest, by utilizing any of the procedures for collection, levy, 35 and lien of personal income tax set forth in article twenty-two of the 36 tax law, and any other relevant procedures referenced within the 37 provisions of such article. When the commissioner implements the deter- 38 mination in this manner, he or she shall so notify the assessor and 39 county director of real property tax services, but no correction shall 40 be made to the assessment roll or tax roll for that school year, and no 41 corrected school tax bill shall be sent to the taxpayer for that school 42 year. 43 § 9. Section 171-o of the tax law is REPEALED. 44 § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 45 606 of the tax law, as amended by section 8 of part A of chapter 73 of 46 the laws of 2016, is amended to read as follows: 47 (B) "Affiliated income" shall mean for purposes of the basic STAR 48 credit, the combined income of all of the owners of the parcel who 49 resided primarily thereon as of December thirty-first of the taxable 50 year, and of any owners' spouses residing primarily thereon as of such 51 date, and for purposes of the enhanced STAR credit, the combined income 52 of all of the owners of the parcel as of December thirty-first of the 53 taxable year, and of any owners' spouses residing primarily thereon as 54 of such date; provided that for both purposes the income to be so 55 combined shall be the "adjusted gross income" for the taxable year as 56 reported for federal income tax purposes, or that would be reported asS. 7509 8 A. 9509 1 adjusted gross income if a federal income tax return were required to be 2 filed, reduced by distributions, to the extent included in federal 3 adjusted gross income, received from an individual retirement account 4 and an individual retirement annuity. For taxable years beginning on 5 and after January first, two thousand nineteen, where an income-eligi- 6 bility determination is wholly or partly based upon the income of one or 7 more individuals who did not file a return pursuant to section six 8 hundred fifty-one of this article for the applicable income tax year, 9 then in order to be eligible for the credit authorized by this 10 subsection, each such individual must file a statement with the depart- 11 ment showing the source or sources of his or her income for that income 12 tax year, and the amount or amounts thereof, that would have been 13 reported on such a return if one had been filed. Such statement shall be 14 filed at such time, and in such form and manner, as may be prescribed by 15 the department, and shall be subject to the provisions of section six 16 hundred ninety-seven of this article to the same extent that a return 17 would be. The department shall make such forms and instructions avail- 18 able for the filing of such statements. Provided further, that if the 19 qualified taxpayer was an owner of the property during the taxable year 20 but did not own it on December thirty-first of the taxable year, then 21 the determination as to whether the income of an individual should be 22 included in "affiliated income" shall be based upon the ownership and/or 23 residency status of that individual as of the first day of the month 24 during which the qualified taxpayer ceased to be an owner of the proper- 25 ty, rather than as of December thirty-first of the taxable year. 26 § 11. No application for an enhanced exemption on a final assessment 27 roll to be completed in 2019 may be approved if the applicants have not 28 enrolled in the STAR income verification program established by subpara- 29 graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real 30 property tax law as amended by section two of this act, regardless of 31 when the application was filed. The assessor shall notify such appli- 32 cants that participation in that program has become mandatory for all 33 applicants and that their applications cannot be approved unless they 34 enroll therein. The commissioner of taxation and finance shall provide 35 a form for assessors to use, at their option, when making this notifica- 36 tion. 37 § 12. This act shall take effect immediately. 38 PART C 39 Section 1. Subdivision 1-e of section 333 of the real property law is 40 amended by adding two new paragraphs ix and x to read as follows: 41 ix. Whenever there has been a transfer or acquisition of a share or 42 shares in a cooperative housing corporation, and such share or shares 43 come with a right to occupy a unit or apartment located in property 44 owned by such corporation, a transfer report must be filed by the trans- 45 feree or transferees directly with the department of taxation and 46 finance, regardless of whether a deed is prepared, delivered or 47 recorded, as set forth in this paragraph. The fee imposed by subdivision 48 three of this section shall not apply to transfer reports filed directly 49 with the department of taxation and finance pursuant to this paragraph. 50 Such report shall be in a form prescribed by the commissioner of taxa- 51 tion and finance, must contain the information required to be included 52 by this subdivision, and in addition, must specify the number of shares 53 being transferred or acquired. When a real estate transfer tax return is 54 filed with such commissioner pursuant to section fourteen hundred nineS. 7509 9 A. 9509 1 of the tax law in relation to such property, the report required by this 2 paragraph shall be filed concurrently therewith, but in no event shall 3 the report required by this paragraph be deemed to be a part of such 4 real estate transfer tax return. 5 x. Whenever there has been a transfer or acquisition of a controlling 6 interest in an entity with an interest in real property, a transfer 7 report must be filed by the transferee or transferees directly with the 8 department of taxation and finance, regardless of whether a deed is 9 prepared, delivered or recorded, as set forth in this paragraph. The fee 10 imposed by subdivision three of this section shall not apply to transfer 11 reports filed directly with the department of taxation and finance 12 pursuant to this paragraph. Such report shall be in a form prescribed by 13 the commissioner of taxation and finance, must contain the information 14 required to be included by this subdivision, and in addition, must spec- 15 ify the percentage of the ownership interest being transferred or 16 acquired. The transfer report shall indicate the percentage of the tran- 17 saction that is exempt from the real estate transfer tax as a mere 18 change in identity or form of ownership or organization where there is 19 no change in beneficial ownership pursuant to paragraph six of subdivi- 20 sion (b) of section fourteen hundred five of the tax law, if any. When 21 a real estate transfer tax return is filed with such commissioner pursu- 22 ant to section fourteen hundred nine of the tax law in relation to such 23 property, the report required by this paragraph shall be filed concur- 24 rently therewith, but in no event shall the report required by this 25 paragraph be deemed to be a part of such real estate transfer tax 26 return. For purposes of this paragraph, the terms "controlling interest" 27 and "interest in real property" shall have the same meaning as set forth 28 in section fourteen hundred one of the tax law, provided, however, that 29 the term "interest in real property" shall be limited to interests in 30 real property subject to real property tax assessment such as lands, 31 buildings, structures, and other improvements, and shall not include 32 development rights, air space, or air rights. 33 § 2. This act shall take effect January 1, 2019 and shall apply to 34 transfers and acquisitions occurring on and after such date. 35 PART D 36 Section 1. Subdivision v of section 233 of the real property law, as 37 amended by chapter 566 of the laws of 1996, is amended to read as 38 follows: 39 v. 1. On and after April first, nineteen hundred eighty-nine, the 40 commissioner of housing and community renewal shall have the power and 41 duty to enforce and ensure compliance with the provisions of this 42 section. However, the commissioner shall not have the power or duty to 43 enforce manufactured home park rules and regulations established under 44 subdivision f of this section. 45 2. On or before January first, nineteen hundred eighty-nine, each 46 manufactured home park owner or operator shall file a registration 47 statement with the commissioner and shall thereafter file an annual 48 registration statement on or before January first of each succeeding 49 year, up to and including two thousand eighteen. Thereafter, each manu- 50 factured home park owner or operator shall file quarterly registration 51 statements with the commissioner no later than twenty-one days after the 52 end of each calendar quarter. The commissioner, by regulation, shall 53 provide that such registration statement shall include [only] the names 54 of all persons owning an interest in the park, the names of all tenantsS. 7509 10 A. 9509 1 of the park, all services provided by the park owner to the tenants, and 2 such other information as the commissioner shall prescribe by regulation 3 after consultation with the commissioner of taxation and finance; 4 provided that in the case of a registration statement for the first 5 calendar quarter of a year, such statement shall also include a copy of 6 all current manufactured home park rules and regulations. The commis- 7 sioner shall provide the commissioner of taxation and finance with a 8 complete copy of each quarterly report no later than fifteen days after 9 the receipt thereof. 10 3. Whenever there shall be a violation of this section, an application 11 may be made by the commissioner of housing and community renewal in the 12 name of the people of the state of New York to a court or justice having 13 jurisdiction by a special proceeding to issue an injunction, and upon 14 notice to the defendant of not less than five days, to enjoin and 15 restrain the continuance of such violation; and if it shall appear to 16 the satisfaction of the court or justice that the defendant has, in 17 fact, violated this section, an injunction may be issued by such court 18 or justice, enjoining and restraining any further violation and with 19 respect to this subdivision, directing the filing of a registration 20 statement. In any such proceeding, the court may make allowances to the 21 commissioner of housing and community renewal of a sum not exceeding two 22 thousand dollars against each defendant, and direct restitution. When- 23 ever the court shall determine that a violation of this section has 24 occurred, the court may impose a civil penalty of not more than one 25 thousand five hundred dollars for each violation. Such penalty shall be 26 deposited in the manufactured home cooperative fund, created pursuant to 27 section fifty-nine-h of the private housing finance law. In connection 28 with any such proposed application, the commissioner of housing and 29 community renewal is authorized to take proof and make a determination 30 of the relevant facts and to issue subpoenas in accordance with the 31 civil practice law and rules. The provisions of this subdivision shall 32 not impair the rights granted under subdivision u of this section. 33 § 2. This act shall take effect immediately. 34 PART E 35 Section 1. Subsection (bbb) of section 606 of the tax law is REPEALED. 36 § 1-a. Section 3-d of the general municipal law is REPEALED. 37 § 1-b. Section 2023-b of the education law is REPEALED. 38 § 2. The general municipal law is amended by adding a new section 3-d 39 to read as follows: 40 § 3-d. Certification of compliance with tax levy limit. 1. Upon the 41 adoption of the budget of a local government unit, the chief executive 42 officer or budget officer of such local government unit shall certify to 43 the state comptroller and the commissioner of taxation and finance that 44 the budget so adopted does not exceed the tax levy limit prescribed in 45 section three-c of this article and, if the governing body of the local 46 government unit did enact a local law or approve a resolution to over- 47 ride the tax levy limit, that such local law or resolution was subse- 48 quently repealed. Such certification shall be made in a form and manner 49 prescribed by the state comptroller in consultation with the commission- 50 er of taxation and finance. 51 2. Notwithstanding any other law to the contrary, if such a certif- 52 ication has been made and the actual tax levy of the local government 53 unit exceeds the applicable tax levy limit, the excess amount shall be 54 placed in reserve and used in the manner prescribed by subdivision sixS. 7509 11 A. 9509 1 of section three-c of this article, even if a tax levy in excess of the 2 tax levy limit had been authorized for the applicable fiscal year by a 3 duly adopted local law or resolution. 4 3. Notwithstanding any provision of law to the contrary, every local 5 government unit shall report both its proposed budget and its adopted 6 budget to the office of the state comptroller at the time and in the 7 manner as he or she may prescribe, whether or not such budget has been 8 or will be certified as provided by this subdivision. 9 § 3. The education law is amended by adding a new section 2023-b to 10 read as follows: 11 § 2023-b. Certification of compliance with tax levy limit. 1. Upon 12 the adoption of the budget of an eligible school district, the chief 13 executive officer of such school district shall certify to the state 14 comptroller, the commissioner of taxation and finance and the commis- 15 sioner that the budget so adopted does not exceed the tax levy limit 16 prescribed by section two thousand twenty-three-a of this part. Such 17 certification shall be made in a form and manner prescribed by the state 18 comptroller in consultation with the commissioner of taxation and 19 finance and the commissioner. 20 2. If such a certification has been made and the actual tax levy of 21 the school district exceeds the applicable tax levy limit, the excess 22 amount shall be placed in reserve and used in the manner prescribed by 23 subdivision five of section two thousand twenty-three-a of this part, 24 even if a tax levy in excess of the tax levy limit had been duly author- 25 ized for the applicable fiscal year by the school district voters. 26 3. Notwithstanding any provision of law to the contrary, every school 27 district that is subject to the provisions of section two thousand twen- 28 ty-three-a of this part shall report both its proposed budget and its 29 adopted budget to the office of the state comptroller and the commis- 30 sioner at the time and in the manner as they may prescribe, whether or 31 not such budget has been or will be certified as provided by this subdi- 32 vision. 33 § 4. Subdivision 3 of section 97-rrr of the state finance law, as 34 amended by section 1 of part F of chapter 59 of the laws of 2015, is 35 amended to read as follows: 36 3. The monies in such fund shall be appropriated for school property 37 tax exemptions granted pursuant to the real property tax law and payable 38 pursuant to section thirty-six hundred nine-e of the education law[, and39for payments to the city of New York pursuant to section fifty-four-f of40this chapter]. 41 § 5. Section 925-b of the real property tax law, as amended by chapter 42 161 of the laws of 2006, is amended to read as follows: 43 § 925-b. Extension; certain persons sixty-five years of age or over. 44 Notwithstanding any contrary provision of this chapter, or any general, 45 special or local law, code or charter, the governing body of a municipal 46 corporation other than a county may, by resolution adopted prior to the 47 levy of any taxes on real property located within such municipal corpo- 48 ration, authorize an extension of no more than five business days for 49 the payment of taxes without interest or penalty to any resident of such 50 municipal corporation who has received an exemption pursuant to subdivi- 51 sion four of section four hundred twenty-five or four hundred sixty-sev- 52 en of this chapter, or a credit pursuant to subsection (eee) of section 53 six hundred six of the tax law, related to a principal residence located 54 within such municipal corporation. If such an extension is granted, and 55 any taxes are not paid by the final date so provided, those taxes shallS. 7509 12 A. 9509 1 be subject to the same interest and penalties that would have applied if 2 no extension had been granted. 3 § 6. Paragraph (d) of subdivision 1 of section 928-a of the real prop- 4 erty tax law is relettered paragraph (f) and two new paragraphs (d) and 5 (e) are added to read as follows: 6 (d) If the taxes of a city, town, village or school district are 7 collected by a county official, the county shall have the sole authority 8 to establish a partial payment program pursuant to this section with 9 respect to the taxes so collected. 10 (e) If the taxes of a city, town, village or school district are not 11 collected by a county official, but its tax bills are prepared by the 12 county, or its tax collection accounting software is provided by the 13 county, then before the city, town, village or school district may 14 implement a partial payment program pursuant to this section, it must 15 obtain written approval of the chief executive officer of the county or 16 the county director of real property tax services. 17 § 7. Subparagraph (B) of paragraph 7 of subsection (eee) of section 18 606 of the tax law, as amended by section 1 of part G of chapter 59 of 19 the laws of 2017, is amended to read as follows: 20 (B) Notwithstanding any provision of law to the contrary, the names 21 and addresses of individuals who have applied for or are receiving the 22 credit authorized by this subsection may be disclosed to assessors 23 [and], county directors of real property tax services, and municipal tax 24 collecting officers. In addition, where an agreement is in place between 25 the commissioner and the head of the tax department of another state, 26 such information may be disclosed to such official or his or her desig- 27 nees. Such information shall be considered confidential and shall not be 28 subject to further disclosure pursuant to the freedom of information law 29 or otherwise. 30 § 7-a. Paragraph (g) of subdivision 2 of section 425 of the real prop- 31 erty tax law, as added by section 1 of part B of chapter 389 of the laws 32 of 1997 and as further amended by subdivision (b) of section 1 of part W 33 of chapter 56 of the laws of 2010, is amended to read as follows: 34 (g) Computation and certification by commissioner. It shall be the 35 responsibility of the commissioner to compute the exempt amount for each 36 assessing unit in each county in the manner provided herein, and to 37 certify the same to the assessor of each assessing unit and to the coun- 38 ty director of real property tax services of each county. Such certif- 39 ication shall be made at least twenty days before the last date 40 prescribed by law for the filing of the tentative assessment roll. 41 Provided, however, that where school taxes are levied on a prior year 42 assessment roll, or on a final assessment roll that was filed more than 43 one year after the tentative roll was filed, such certification shall be 44 made no later than fifteen days after the publication of the data needed 45 to compute the base figure for the enhanced STAR exemption pursuant to 46 clause (A) of subparagraph (vi) of paragraph (b) of this subdivision, 47 and provided further, that upon receipt of such certification, the 48 assessor shall thereupon be authorized and directed to correct the 49 assessment roll to reflect the exempt amount so certified, or, if anoth- 50 er person has custody or control of the assessment roll, to direct that 51 person to make the appropriate corrections. 52 § 8. Paragraph 6 of subsection (eee) of section 606 of the tax law is 53 amended by adding a new subparagraph (A) to read as follows: 54 (A) A married couple may not receive a credit pursuant to this 55 subsection on more than one residence during any given taxable year, 56 unless living apart due to legal separation. Nor may a married coupleS. 7509 13 A. 9509 1 receive a credit pursuant to this subsection on one residence while 2 receiving an exemption pursuant to section four hundred twenty-five of 3 the real property tax law on another residence, unless living apart due 4 to legal separation. 5 § 9. This act shall take effect immediately; provided, however, that 6 section 3-d of the general municipal law, as added by section two of 7 this act, shall expire and be deemed repealed on the same date and in 8 the same manner as section 1 of part A of chapter 97 of the laws of 9 2011, expires and is deemed repealed, and provided that section 2023-b 10 of the education law, as added by section three of this act, shall 11 expire and be deemed repealed on the same date and in the same manner as 12 section 2 of part A of chapter 97 of the laws of 2011, expires and is 13 deemed repealed, and provided further that the amendments to paragraph 6 14 of subsection (eee) of section 606 of the tax law made by section eight 15 of this act shall take effect immediately and shall apply to taxable 16 years beginning on or after January 1, 2016. REPEAL NOTE: Section 606(bbb) of the Tax Law, section 3-d of the General Municipal Law and section 2023-b of the Education Law collec- tively constituted the enabling legislation for the tax freeze credit program. By the terms of those statutes, the tax freeze credit was only applicable to taxable years 2014, 2015 and 2016. Therefore, these provisions no longer serve a purpose, except for the reporting provisions, which facilitate the administration of the tax levy limit program and are being preserved in a reenacted section 3-d of the Gener- al Municipal Law and section 2023-b of the Education Law. 17 PART F 18 Section 1. Subdivision 1 of section 544 of the real property tax law, 19 as amended by chapter 18 of the laws of 2008, is amended and a new 20 subdivision 3 is added to read as follows: 21 1. The comptroller shall pay taxes levied on lands of the state in 22 each county pursuant to the foregoing sections of this title, out of 23 moneys appropriated by the legislature therefor, to the county treasurer 24 for appropriate distribution upon submission of a statement of such 25 taxes by him or her in such form and executed in such manner by the 26 county treasurer as may be required by the comptroller. Provided, howev- 27 er, that in the case of lands which are taxable pursuant to subdivision 28 (j) of section five hundred thirty-two of this title, the comptroller 29 shall pay such taxes. Such payment shall be requested, processed and 30 paid separately from all other taxes that are payable to the county 31 treasurer pursuant to this section. Provided further, that on and after 32 April first, two thousand eighteen, once taxes have been paid on a taxa- 33 ble parcel of state land pursuant to this subdivision, the amount of 34 taxes due and payable on that parcel thereafter shall be calculated by 35 the comptroller in accordance with the provisions of subdivision three 36 of this section. 37 3. Notwithstanding any provision of law to the contrary, on and after 38 April first, two thousand eighteen, once taxes have been paid on a taxa- 39 ble parcel of state land pursuant to subdivision one of this section, 40 the comptroller shall thereafter calculate the taxes due and payable on 41 that parcel as follows: 42 (a) In the case of a local government, the taxes so payable shall 43 equal the taxes that were payable on that parcel in the prior fiscal 44 year of the local government multiplied by the allowable levy growth 45 factor. As used in this paragraph, the terms "local government," "priorS. 7509 14 A. 9509 1 fiscal year" and "allowable levy growth factor" shall have the same 2 meanings as set forth in section three-c of the general municipal law, 3 provided that if such section is no longer in effect on the date such 4 taxes are paid, such terms shall be deemed to have the meanings set 5 forth in such section as it read on the last date on which it was in 6 effect. 7 (b) In the case of a school district, the taxes so payable shall equal 8 the taxes that were payable on that parcel in the prior school year of 9 the school district multiplied by the allowable levy growth factor. As 10 used in this paragraph, the terms "school district," "prior school year" 11 and "allowable levy growth factor" shall have the same meanings as set 12 forth in section two thousand twenty-three-a of the education law, 13 provided that if such section is no longer in effect on the date such 14 taxes are paid, such terms shall be deemed to have the meanings set 15 forth in such section as it read on the last date on which it was in 16 effect. 17 (c) On or before July first of each year, the comptroller shall calcu- 18 late the amounts of taxes that are due and payable on taxable state land 19 pursuant to this subdivision, and shall notify the commissioner of the 20 amounts so calculated. The commissioner shall thereupon transmit that 21 information to the affected local governments and school districts. The 22 taxes due on such lands shall be paid by the comptroller in the manner 23 provided by subdivision one of this section. 24 (d) The following provisions shall apply to state lands that are 25 subject to the provisions of this subdivision: 26 (i) Such lands shall not be included on the lists of taxable state 27 lands that must be supplied by the commissioner pursuant to section five 28 hundred forty of this title. 29 (ii) The assessments of such lands shall not be reported to the 30 commissioner pursuant to section five hundred forty-two of this title. 31 (iii) The assessments of such lands shall not be subject to the 32 approval of the commissioner pursuant to such section, and shall not be 33 taken into account in the calculation of the taxes due on such lands. 34 (iv) Such lands shall be entered on the exempt portion of the assess- 35 ment roll, notwithstanding the fact that they are taxable pursuant to 36 this title. Provided, that no such entry shall be made in the case of an 37 assessment adjustment made by the commissioner pursuant to paragraph (c) 38 of subdivision three of section five hundred forty-two of this title or 39 section 15-2115 of the environmental conservation law, or in the case of 40 state aid payable pursuant to section five hundred forty-five of this 41 title due to a reduction in the assessment of taxable state land. 42 (v) Such lands shall be disregarded when calculating state equaliza- 43 tion rates and tax rates. 44 (vi) When a school district receives payments of taxes on state lands 45 pursuant to this subdivision, any actual valuation computed for such 46 school district pursuant to paragraph c of subdivision one of section 47 thirty-six hundred two of the education law shall include the actual 48 valuation equivalent of those payments. The commissioner shall determine 49 such actual valuation equivalent by dividing the payment made, as 50 reported to such commissioner by the comptroller, by the school tax rate 51 that was applied to real property on that year's assessment roll or, if 52 applicable, the special apportionment rate determined pursuant to 53 section twelve hundred twenty-seven of this chapter and dividing such 54 result by the final state equalization rate for that roll. The actual 55 valuation equivalent shall be reported to the state comptroller and the 56 commissioner of education, and shall be used by the commissioner ofS. 7509 15 A. 9509 1 education in the determination of any state average that uses real prop- 2 erty taxes levied against and/or actual valuation based upon the corre- 3 sponding assessment roll. Each school district receiving payments of 4 taxes on state lands pursuant to this subdivision shall annually report 5 those payments to the commissioner of education, with a copy to the 6 commissioner, as a condition to receiving any aid pursuant to section 7 thirty-six hundred two of the education law. 8 (e) The provisions of this subdivision shall not apply to the payment 9 of state aid pursuant to section five hundred forty-five of this title 10 in relation to property that has become exempt from taxation due to its 11 acquisition by the state or an agency of the state. 12 § 2. This act shall take effect immediately. 13 PART G 14 Section 1. Section 4 of chapter 475 of the laws of 2013, amending the 15 real property tax law relating to assessment ceilings for local public 16 utility mass real property, is amended to read as follows: 17 § 4. This act shall take effect on the first of January of the second 18 calendar year commencing after this act shall have become a law and 19 shall apply to assessment rolls with taxable status dates on or after 20 such date; provided, however, that this act shall expire and be deemed 21 repealed [four] eight years after such effective date; and provided, 22 further, that no assessment of local public utility mass real property 23 appearing on the municipal assessment roll with a taxable status date 24 occurring in the first calendar year after this act shall have become a 25 law shall be less than ninety percent or more than one hundred ten 26 percent of the assessment of the same property on the date this act 27 shall have become a law. 28 § 2. Subdivision 3 of section 499-kkkk of the real property tax law, 29 as added by chapter 475 of the laws of 2013, is amended to read as 30 follows: 31 3. (a) For assessment rolls with taxable status dates in each of the 32 three calendar years including and following the year in which this 33 section shall take effect, the commissioner shall establish no assess- 34 ment ceiling that is less than ninety percent or more than one hundred 35 ten percent of the assessment of such local public utility mass real 36 property appearing on the municipal assessment roll with a taxable 37 status date occurring in the second preceding calendar year from when 38 this section shall take effect, except that the commissioner may estab- 39 lish assessment ceilings below the ninety percent level or above the one 40 hundred ten percent level to take into account any change in level of 41 assessment and/or to take into account any additions or retirements to 42 public utility mass real property or litigation affecting the value or 43 taxable status of the local public utility mass real property initiated 44 prior to the effective date of this section. 45 (b) For assessment rolls with taxable status dates in the years two 46 thousand eighteen, two thousand nineteen and two thousand twenty, the 47 commissioner shall establish no assessment ceiling that is below the 48 lower limit or above the upper limit specified in this paragraph, except 49 that the commissioner may establish assessment ceilings below such lower 50 limit or above such upper limit to take into account any change in level 51 of assessment and/or to take into account any additions or retirements 52 to public utility mass real property or litigation affecting the value 53 or taxable status of the local public utility mass real property initi- 54 ated prior to the effective date of this section.S. 7509 16 A. 9509 1 (i) For assessment rolls with taxable status dates in two thousand 2 eighteen, the assessment ceiling shall not be less than seventy-five 3 percent or more than one hundred twenty-five percent of the assessment 4 of such local public utility mass real property appearing on the munici- 5 pal assessment roll with a taxable status date occurring in the year two 6 thousand fourteen. 7 (ii) For assessment rolls with taxable status dates in two thousand 8 nineteen, the assessment ceiling shall not be less than fifty percent or 9 more than one hundred fifty percent of the assessment of such local 10 public utility mass real property appearing on the municipal assessment 11 roll with a taxable status date occurring in the year two thousand four- 12 teen. 13 (iii) For assessment rolls with taxable status dates in two thousand 14 twenty, the assessment ceiling shall not be less than twenty-five 15 percent or more than one hundred seventy-five percent of the assessment 16 of such local public utility mass real property appearing on the munici- 17 pal assessment roll with a taxable status date occurring in the year two 18 thousand fourteen. 19 § 3. This act shall take effect immediately, provided, however, that 20 the amendments to subdivision three of section 499-kkkk of the real 21 property tax law made by section two of this act shall not affect the 22 repeal of such section and shall be deemed to be repealed therewith. 23 PART H 24 Section 1. Subsection (c) of section 683 of the tax law is amended by 25 adding a new paragraph 12 to read as follows: 26 (12) Except as otherwise provided in paragraph three of this 27 subsection, or as otherwise provided in this section where a longer 28 period of time may apply, if a taxpayer files an amended return, an 29 assessment of tax (if not deemed to have been made upon the filing of 30 the amended return), including recovery of a previously paid refund, 31 attributable to a change or correction on the amended return from a 32 prior return may be made at any time within three years after such 33 amended return is filed. 34 § 2. Subsection (c) of section 1083 of the tax law is amended by 35 adding a new paragraph 12 to read as follows: 36 (12) Except as otherwise provided in paragraph three of this 37 subsection, or as otherwise provided in this section where a longer 38 period of time may apply, if a taxpayer files an amended return, an 39 assessment of tax (if not deemed to have been made upon the filing of 40 the amended return), including recovery of a previously paid refund, 41 attributable to a change or correction on the amended return from a 42 prior return may be made at any time within three years after such 43 amended return is filed. 44 § 3. Subdivision (c) of section 11-1783 of the administrative code of 45 the city of New York is amended by adding a new paragraph 9 to read as 46 follows: 47 (9) Except as otherwise provided in paragraph three of this subdivi- 48 sion, or as otherwise provided in this section where a longer period of 49 time may apply, if a taxpayer files an amended return, an assessment of 50 tax (if not deemed to have been made upon the filing of the amended 51 return), including recovery of a previously paid refund, attributable to 52 a change or correction on the amended return from a prior return may be 53 made at any time within three years after such amended return is filed.S. 7509 17 A. 9509 1 § 4. This act shall take effect immediately and shall apply to amended 2 returns filed on or after the effective date of this act. 3 PART I 4 Section 1. Paragraph 1 of subdivision (d) of section 658 of the tax 5 law, as amended by chapter 166 of the laws of 1991, is amended to read 6 as follows: 7 (1) The commissioner of taxation and finance may prescribe regulations 8 and instructions requiring returns of information to be made and filed 9 on or before February twenty-eighth of each year as to the payment or 10 crediting in any calendar year of amounts of six hundred dollars or more 11 to any taxpayer under this article. Such returns may be required of any 12 person, including lessees or mortgagors of real or personal property, 13 fiduciaries, employers, and all officers and employees of this state, or 14 of any municipal corporation or political subdivision of this state, 15 having the control, receipt, custody, disposal or payment of interest, 16 rents, salaries, wages, premiums, annuities, compensations, remunera- 17 tions, emoluments or other fixed or determinable gains, profits or 18 income, except interest coupons payable to bearer. Information required 19 to be furnished pursuant to paragraph four of subsection (a) of section 20 six hundred seventy-four on a quarterly combined withholding and wage 21 reporting return covering [the last] each calendar quarter of each year 22 and relating to tax withheld on wages paid by an employer to an employee 23 for [the full] each calendar [year] quarter, shall constitute the return 24 of information required to be made under this section with respect to 25 such wages. 26 § 2. Subparagraph (A) of paragraph 4 of subsection (a) of section 674 27 of the tax law, as amended by section 1 of subpart E of part VI of chap- 28 ter 57 of the laws of 2009, is amended to read as follows: 29 (A) All employers described in paragraph one of subsection (a) of 30 section six hundred seventy-one of this part, including those whose 31 wages paid are not sufficient to require the withholding of tax from the 32 wages of any of their employees, all employers required to provide the 33 wage reporting information for the employees described in subdivision 34 one of section one hundred seventy-one-a of this chapter, and all 35 employers liable for unemployment insurance contributions or for 36 payments in lieu of such contributions pursuant to article eighteen of 37 the labor law, shall file a quarterly combined withholding, wage report- 38 ing and unemployment insurance return detailing the preceding calendar 39 quarter's withholding tax transactions, such quarter's wage reporting 40 information, such quarter's withholding reconciliation information, such 41 quarter's unemployment insurance contributions, and such other related 42 information as the commissioner of taxation and finance or the commis- 43 sioner of labor, as applicable, may prescribe. [In addition, the return44covering the last calendar quarter of each year shall also include with-45holding reconciliation information for such calendar year.] Such returns 46 shall be filed no later than the last day of the month following the 47 last day of each calendar quarter. 48 § 3. Paragraph 3 of subsection (v) of section 685 of the tax law, as 49 amended by chapter 477 of the laws of 1998, is amended to read as 50 follows: 51 (3) Failure to provide complete and correct employee withholding 52 reconciliation information. In the case of a failure by an employer to 53 provide complete and correct [annual] quarterly withholding information 54 relating to individual employees on a quarterly combined withholding,S. 7509 18 A. 9509 1 wage reporting and unemployment insurance return covering [the last] 2 each calendar quarter of a year, such employer shall, unless it is shown 3 that such failure is due to reasonable cause and not due to willful 4 neglect, pay a penalty equal to the product of fifty dollars multiplied 5 by the number of employees for whom such information is incomplete or 6 incorrect; provided, however, that if the number of such employees 7 cannot be determined from the quarterly combined withholding, wage 8 reporting and unemployment insurance return, the commissioner may 9 utilize any information in the commissioner's possession in making such 10 determination. The total amount of the penalty imposed pursuant to this 11 paragraph on an employer for any such failure for [the last] each calen- 12 dar quarter of a year shall not exceed ten thousand dollars. 13 § 4. This act shall take effect immediately and shall apply to calen- 14 dar quarters beginning on or after January 1, 2019. 15 PART J 16 Section 1. Paragraph (i) of subdivision (d) of section 1105 of the tax 17 law, as amended by chapter 405 of the laws of 1971 and subparagraph 3 as 18 amended by section 1 of part DD of chapter 407 of the laws of 1999, is 19 amended to read as follows: 20 (i) The receipts from every sale, other than sales for resale, of 21 beer, wine or other alcoholic beverages or any other drink of any 22 nature, or from every sale, other than sales for resale, of food and 23 drink of any nature or of food alone, when sold in or by restaurants, 24 taverns or other establishments in this state, or by caterers, including 25 in the amount of such receipts any cover, minimum, entertainment or 26 other charge made to patrons or customers (except those receipts taxed 27 pursuant to subdivision (f) of this section): 28 (1) in all instances where the sale is for consumption on the premises 29 where sold; 30 (2) in those instances where the vendor or any person whose services 31 are arranged for by the vendor, after the delivery of the food or drink 32 by or on behalf of the vendor for consumption off the premises of the 33 vendor, serves or assists in serving, cooks, heats or provides other 34 services with respect to the food or drink; and 35 (3) in those instances where the sale is made through a vending 36 machine that is activated by use of coin, currency, credit card or debit 37 card (except the sale of drinks in a heated state made through such a 38 vending machine) or is for consumption off the premises of the vendor, 39 except where food (other than sandwiches) or drink or both are (A) sold 40 in an unheated state and, (B) are of a type commonly sold for consump- 41 tion off the premises and in the same form and condition, quantities and 42 packaging, in establishments which are food stores other than those 43 principally engaged in selling foods prepared and ready to be eaten. 44 § 2. This act shall take effect June 1, 2018 and shall apply to sales 45 made on and after such date. 46 PART K 47 Section 1. The tax law is amended by adding a new section 171-z to 48 read as follows: 49 § 171-z. Information sharing with the comptroller regarding unclaimed 50 funds. 1. Notwithstanding any other law, the commissioner is authorized 51 to release to the comptroller information regarding fixed and final 52 unwarranted debts of taxpayers for purposes of collecting unclaimedS. 7509 19 A. 9509 1 funds from the comptroller to satisfy fixed and final unwarranted debts 2 owed by taxpayers. For purposes of this section, the term "unwarranted 3 debt" shall mean past-due tax liabilities, including unpaid tax, inter- 4 est and penalty, that the commissioner is required by law to collect and 5 that have become fixed and final such that the taxpayer no longer has 6 any right to administrative or judicial review and a warrant has not 7 been filed; and the term "taxpayer" shall mean any individual, corpo- 8 ration, partnership, limited liability partnership or company, partner, 9 member, manager, sole proprietorship, estate, trust, fiduciary or enti- 10 ty, who or which has been identified as owing taxes to the state. This 11 section shall not be deemed to abrogate or limit in any way the powers 12 and authority of the comptroller to set off debts owed the state from 13 unclaimed funds, under the constitution of the state or any other law. 14 2. The comptroller shall keep all information he or she obtains from 15 the commissioner confidential, and any employee, agent or representative 16 of the comptroller is prohibited from disclosing any taxpayer informa- 17 tion received under this section to anyone other than the commissioner 18 or staff of the department or staff of the department of audit and 19 control for the purposes described in this section. 20 § 2. This act shall take effect immediately. 21 PART L 22 Section 1. Subdivision 2 of section 136 of the social services law, as 23 amended by section 24 of part B of chapter 436 of the laws of 1997, is 24 amended to read as follows: 25 2. All communications and information relating to a person receiving 26 public assistance or care obtained by any social services official, 27 service officer, or employee in the course of his or her work shall be 28 considered confidential and, except as otherwise provided in this 29 section, shall be disclosed only to the commissioner, or his or her 30 authorized representative, the commissioner of labor, or his or her 31 authorized representative, the commissioner of health, or his or her 32 authorized representative, the commissioner of taxation and finance, or 33 his or her authorized representative (other than the disclosure of 34 information that has been prohibited by federal law), the welfare 35 inspector general, or his or her authorized representative, the county 36 board of supervisors, city council, town board or other board or body 37 authorized and required to appropriate funds for public assistance and 38 care in and for such county, city or town or its authorized represen- 39 tative or, by authority of the county, city or town social services 40 official, to a person or agency considered entitled to such information. 41 Nothing herein shall preclude a social services official from report- 42 ing to an appropriate agency or official, including law enforcement 43 agencies or officials, known or suspected instances of physical or 44 mental injury, sexual abuse or exploitation, sexual contact with a minor 45 or negligent treatment or maltreatment of a child of which the official 46 becomes aware in the administration of public assistance and care nor 47 shall it preclude communication with the federal immigration and natur- 48 alization service regarding the immigration status of any individual. 49 § 2. This act shall take effect immediately. 50 PART M 51 Section 1. The tax law is amended by adding a new section 44 to read 52 as follows:S. 7509 20 A. 9509 1 § 44. Investment management services. (a) For purposes of this 2 section, the term "investment management services" to a partnership, S 3 corporation or entity includes (1) rendering investment advice regarding 4 the purchase or sale of securities as defined in paragraph two of 5 subsection (c) of section four hundred seventy-five of the internal 6 revenue code without regard to the last sentence thereof, real estate 7 held for rental or investment, interests in partnerships, commodities as 8 defined in paragraph two of subsection (e) of section four hundred 9 seventy-five of the internal revenue code, or options or derivative 10 contracts with respect to any of the foregoing; (2) managing, acquiring, 11 or disposing of any such asset; (3) arranging financing with respect to 12 the acquisition of any such asset; and (4) related activities in support 13 of any service described in paragraphs one, two, or three of this subdi- 14 vision. 15 (b) Special rule for partnerships and S corporations. Notwithstanding 16 any state or federal law to the contrary: 17 (1) where a partner performs investment management services for the 18 partnership, the partner will not be treated as a partner for purposes 19 of this chapter with respect to the amount of the partner's distributive 20 share of income, gain, loss and deduction, including any guaranteed 21 payments, that is in excess of the amount such distributive share would 22 have been if the partner had performed no investment management services 23 for the partnership. Instead, such excess amount shall be treated for 24 purposes of article nine-A of this chapter as a business receipt for 25 services and for purposes of article twenty-two of this chapter as 26 income attributable to a trade, business, profession or occupation. 27 Provided, however, the amount of the distributive share that would have 28 been determined if the partner performed no investment management 29 services shall not be less than zero. 30 (2) where a shareholder performs investment management services for 31 the S corporation, the shareholder will not be treated as a shareholder 32 for purposes of this chapter with respect to the amount of the share- 33 holder's pro rata share of income, gain, loss and deduction that is in 34 excess of the amount such pro rata share would have been if the share- 35 holder had performed no investment management services. Instead, such 36 excess amount shall be treated for purposes of article twenty-two of 37 this chapter as income attributable to a trade, business, profession or 38 occupation. Provided, however, the amount of the pro rata share that 39 would have been determined if the shareholder performed no services 40 shall not be less than zero. 41 (3) A partner or shareholder will not be deemed to be providing 42 investment management services under this section if at least eighty 43 percent of the average fair market value of the assets of the partner- 44 ship or S corporation during the taxable year consist of real estate 45 held for rental or investment. 46 (c) In addition to any other taxes or surcharges imposed pursuant to 47 article nine-A or twenty-two of this chapter, any corporation, partner 48 or shareholder providing investment management services shall be subject 49 to an additional tax, referred to as the "carried interest fairness 50 fee". Such carried interest fairness fee shall be equal to seventeen 51 percent of the excess amount determined pursuant to subdivision (b) of 52 this section; provided, however, (i) in the case of a corporation or 53 shareholder of an S corporation providing such investment management 54 services, such fee shall be equal to seventeen percent of the excess 55 amount apportioned to the state by applying the corporation's or S 56 corporation's apportionment factor determined under section two hundredS. 7509 21 A. 9509 1 ten-A of this chapter; (ii) in the case of a nonresident partner provid- 2 ing such investment management services, such fee shall be equal to 3 seventeen percent of the excess amount derived from New York sources as 4 determined under section six hundred thirty-two of this chapter. Such 5 carried interest fairness fee shall be administered in accordance with 6 article nine-A or twenty-two of this chapter, as applicable, until such 7 time as the commissioner of taxation and finance has notified the legis- 8 lative bill drafting commission that federal legislation has been 9 enacted that treats the provision of investment management services for 10 federal tax purposes substantially the same as provided in this section. 11 § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as 12 amended by section 5 of part T of chapter 59 of the laws of 2015, is 13 amended to read as follows: 14 (a) (i) The term "investment income" means income, including capital 15 gains in excess of capital losses, from investment capital, to the 16 extent included in computing entire net income, less, (A) in the 17 discretion of the commissioner, any interest deductions allowable in 18 computing entire net income which are directly or indirectly attribut- 19 able to investment capital or investment income, and (B) any net capital 20 gain included in federal taxable income that must be recharacterized as 21 a business receipt pursuant to section forty-four of this chapter; 22 provided, however, that in no case shall investment income exceed entire 23 net income. (ii) If the amount of interest deductions subtracted under 24 subparagraph (i) of this paragraph exceeds investment income, the excess 25 of such amount over investment income must be added back to entire net 26 income. (iii) If the taxpayer's investment income determined without 27 regard to the interest deductions subtracted under subparagraph (i) of 28 this paragraph comprises more than eight percent of the taxpayer's 29 entire net income, investment income determined without regard to such 30 interest deductions cannot exceed eight percent of the taxpayer's entire 31 net income. 32 § 3. Subsection (b) of section 617 of the tax law, as amended by chap- 33 ter 606 of the laws of 1984, is amended to read as follows: 34 (b) Character of items. [Each] Except as provided in section forty- 35 four of this chapter, each item of partnership and S corporation income, 36 gain, loss, or deduction shall have the same character for a partner or 37 shareholder under this article as for federal income tax purposes. Where 38 an item is not characterized for federal income tax purposes, it shall 39 have the same character for a partner or shareholder as if realized 40 directly from the source from which realized by the partnership or S 41 corporation or incurred in the same manner as incurred by the partner- 42 ship or S corporation. 43 § 4. Subsection (d) of section 631 of the tax law, as amended by chap- 44 ter 28 of the laws of 1987, is amended to read as follows: 45 (d) Purchase and sale for own account.-- A nonresident, other than a 46 dealer holding property primarily for sale to customers in the ordinary 47 course of his or her trade or business or a partner or shareholder 48 performing investment management services as described in section 49 forty-four of this chapter, shall not be deemed to carry on a business, 50 trade, profession or occupation in this state solely by reason of the 51 purchase and sale of property or the purchase, sale or writing of stock 52 option contracts, or both, for his own account. 53 § 5. The opening paragraph of subsection (b) of section 632 of the tax 54 law, as amended by chapter 28 of the laws of 1987, is amended to read as 55 follows:S. 7509 22 A. 9509 1 [In] Except as otherwise provided in section forty-four of this chap- 2 ter, in determining the sources of a nonresident partner's income, no 3 effect shall be given to a provision in the partnership agreement 4 which-- 5 § 6. For taxable years beginning on or after January 1, 2018 and 6 before January 1, 2019, (i) no addition to tax under subsection (c) of 7 section 685 or subsection (c) of section 1085 of the tax law shall be 8 imposed with respect to any underpayment attributable to the amendments 9 made by this act of any estimated taxes that are required to be paid 10 prior to the effective date of this act, provided that the taxpayer 11 timely made those payments; and (ii) the required installment of esti- 12 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of 13 subsection (c) of section 685 of the tax law, and the exception to addi- 14 tion for underpayment of estimated tax described in paragraph 1 or 2 of 15 subsection (d) of section 1085 of the tax law, in relation to the 16 preceding year's return, shall be calculated as if the amendments made 17 by this act had been in effect for that entire preceding year. 18 § 7. This act shall take effect upon the enactment into law by the 19 states of Connecticut, New Jersey, Massachusetts and Pennsylvania of 20 legislation having substantially the same effect as this act and the 21 enactments by such states have taken effect in each state and shall 22 apply for taxable years beginning on or after such date; provided, 23 however, if the states of Connecticut, New Jersey, Massachusetts and 24 Pennsylvania have already enacted such legislation, this act shall take 25 effect immediately and shall apply for taxable years beginning on or 26 after January 1, 2018; provided further that the commissioner of taxa- 27 tion and finance shall notify the legislative bill drafting commission 28 upon the enactment of such legislation by the states of Connecticut, New 29 Jersey, Massachusetts and Pennsylvania in order that such commission may 30 maintain an accurate and timely effective data base of the official text 31 of the laws of the state of New York in furtherance of effectuating the 32 provisions of section 44 of the legislative law and section 70-b of the 33 public officers law. 34 PART N 35 Section 1. Section 2016 of the tax law, as amended by chapter 401 of 36 the laws of 1987, is amended to read as follows: 37 § 2016. Judicial review. A decision of the tax appeals tribunal, which 38 is not subject to any further administrative review, shall finally and 39 irrevocably decide all the issues which were raised in proceedings 40 before the division of tax appeals upon which such decision is based 41 unless, within four months after notice of such decision is served by 42 the tax appeals tribunal upon every party to the proceeding before such 43 tribunal by certified mail or personal service, the petitioner who 44 commenced the proceeding [petitions] or the commissioner, or both, peti- 45 tion for judicial review in the manner provided by article seventy-eight 46 of the civil practice law and rules, except as otherwise provided in 47 this [section] chapter. Such service by certified mail shall be 48 complete upon deposit of such notice, enclosed in a post-paid properly 49 addressed wrapper, in a post office or official depository under the 50 exclusive care and custody of the United States postal service. [The] 51 Where the petitioner who commenced the proceeding before the division of 52 tax appeals files a petition for judicial review, the petition shall 53 designate the tax appeals tribunal and the commissioner [of taxation and54finance] as respondents in the proceeding for judicial review. WhereS. 7509 23 A. 9509 1 the commissioner files a petition for judicial review, the petition 2 shall designate the tax appeals tribunal and the petitioner who 3 commenced the proceeding before the division of tax appeals as respond- 4 ents in the proceeding for judicial review. The tax appeals tribunal 5 shall not participate in proceedings for judicial review of its deci- 6 sions and such proceedings for judicial review shall be commenced in the 7 appellate division of the supreme court, third department. In all other 8 respects the provisions and standards of article seventy-eight of the 9 civil practice law and rules shall apply. The record to be reviewed in 10 such proceedings for judicial review shall include the determination of 11 the administrative law judge, the decision of the tax appeals tribunal, 12 the stenographic transcript of the hearing before the administrative law 13 judge, the transcript of any oral proceedings before the tax appeals 14 tribunal and any exhibit or document submitted into evidence at any 15 proceeding in the division of tax appeals upon which such decision is 16 based. 17 § 2. This act shall take effect immediately and shall apply to deci- 18 sions and orders issued by the tax appeals tribunal on or after such 19 date. 20 PART O 21 Section 1. Subparagraph (B) of paragraph 1 of subsection (b) of 22 section 605 of the tax law, as amended by chapter 28 of the laws of 23 1987, is amended to read as follows: 24 (B) who [is not domiciled in this state but] maintains a permanent 25 place of abode in this state and spends in the aggregate more than one 26 hundred eighty-three days of the taxable year in this state, whether or 27 not domiciled in this state for any portion of the taxable year, unless 28 such individual is in active service in the armed forces of the United 29 States. 30 § 2. Paragraph 2 of subsection (a) of section 1305 of the tax law, as 31 amended by chapter 225 of the laws of 1977, is amended to read as 32 follows: 33 (2) who [is not domiciled in such city but] maintains a permanent 34 place of abode in such city and spends in the aggregate more than one 35 hundred eighty-three days of the taxable year in such city, whether or 36 not domiciled in this city for any portion of the taxable year, unless 37 such individual is in active service in the armed forces of the United 38 States. 39 § 3. Subparagraph (B) of paragraph 1 of subdivision (b) of section 40 11-1705 of the administrative code of the city of New York, as amended 41 by chapter 333 of the laws of 1987, is amended to read as follows: 42 (B) who [is not domiciled in this city but] maintains a permanent 43 place of abode in this city and spends in the aggregate more than one 44 hundred eighty-three days of the taxable year in this city, whether or 45 not domiciled in this city for any portion of the taxable year, unless 46 such individual is in active service in the armed forces of the United 47 States. 48 § 4. This act shall take effect immediately and shall apply to all 49 taxable years for which the statute of limitations for seeking a refund 50 or assessing additional tax is still open. 51 PART PS. 7509 24 A. 9509 1 Section 1. Paragraph (1) of subsection (c-1) of section 606 of the tax 2 law, as amended by section 1 of part L1 of chapter 109 of the laws of 3 2006, is amended to read as follows: 4 (1) A resident taxpayer shall be allowed a credit as provided herein 5 equal to the greater of one hundred dollars times the number of qualify- 6 ing children of the taxpayer or the applicable percentage of the child 7 tax credit allowed the taxpayer under section twenty-four of the inter- 8 nal revenue code for the same taxable year for each qualifying child. 9 Provided, however, in the case of a taxpayer whose federal adjusted 10 gross income exceeds the applicable threshold amount set forth by 11 section 24(b)(2) of the Internal Revenue Code, the credit shall only be 12 equal to the applicable percentage of the child tax credit allowed the 13 taxpayer under section 24 of the Internal Revenue Code for each qualify- 14 ing child. For the purposes of this subsection, a qualifying child shall 15 be a child who meets the definition of qualified child under section 16 24(c) of the internal revenue code and is at least four years of age. 17 The applicable percentage shall be thirty-three percent. For purposes 18 of this subsection, any reference to section 24 of the Internal Revenue 19 Code shall be a reference to such section as it existed immediately 20 prior to the enactment of Public Law 115-97. 21 § 2. This act shall take effect immediately and shall apply to taxable 22 years commencing on or after January 1, 2018. 23 PART Q 24 Section 1. Paragraphs (a) and (b) of subdivision 29 of section 210-B 25 of the tax law, as amended by section 1 of part I of chapter 60 of the 26 laws of 2016, are amended to read as follows: 27 (a) Allowance of credit. For taxable years beginning on or after Janu- 28 ary first, two thousand fifteen and before January first, two thousand 29 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 30 computed as provided in this subdivision, against the tax imposed by 31 this article, for hiring and employing, for not less than one year and 32 for not less than thirty-five hours each week, a qualified veteran with- 33 in the state. The taxpayer may claim the credit in the year in which 34 the qualified veteran completes one year of employment by the taxpayer. 35 If the taxpayer claims the credit allowed under this subdivision, the 36 taxpayer may not use the hiring of a qualified veteran that is the basis 37 for this credit in the basis of any other credit allowed under this 38 article. 39 (b) Qualified veteran. A qualified veteran is an individual: 40 (1) who served on active duty in the United States army, navy, air 41 force, marine corps, coast guard or the reserves thereof, or who served 42 in active military service of the United States as a member of the army 43 national guard, air national guard, New York guard or New York naval 44 militia; who was released from active duty by general or honorable 45 discharge after September eleventh, two thousand one; 46 (2) who commences employment by the qualified taxpayer on or after 47 January first, two thousand fourteen, and before January first, two 48 thousand [eighteen] twenty; and 49 (3) who certifies by signed affidavit, under penalty of perjury, that 50 he or she has not been employed for thirty-five or more hours during any 51 week in the one hundred eighty day period immediately prior to his or 52 her employment by the taxpayer.S. 7509 25 A. 9509 1 § 2. Paragraphs 1 and 2 of subsection (a-2) of section 606 of the tax 2 law, as amended by section 2 of part I of chapter 60 of the laws of 3 2016, are amended to read as follows: 4 (1) Allowance of credit. For taxable years beginning on or after Janu- 5 ary first, two thousand fifteen and before January first, two thousand 6 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 7 computed as provided in this subsection, against the tax imposed by this 8 article, for hiring and employing, for not less than one year and for 9 not less than thirty-five hours each week, a qualified veteran within 10 the state. The taxpayer may claim the credit in the year in which the 11 qualified veteran completes one year of employment by the taxpayer. If 12 the taxpayer claims the credit allowed under this subsection, the 13 taxpayer may not use the hiring of a qualified veteran that is the basis 14 for this credit in the basis of any other credit allowed under this 15 article. 16 (2) Qualified veteran. A qualified veteran is an individual: 17 (A) who served on active duty in the United States army, navy, air 18 force, marine corps, coast guard or the reserves thereof, or who served 19 in active military service of the United States as a member of the army 20 national guard, air national guard, New York guard or New York naval 21 militia; who was released from active duty by general or honorable 22 discharge after September eleventh, two thousand one; 23 (B) who commences employment by the qualified taxpayer on or after 24 January first, two thousand fourteen, and before January first, two 25 thousand [eighteen] twenty; and 26 (C) who certifies by signed affidavit, under penalty of perjury, that 27 he or she has not been employed for thirty-five or more hours during any 28 week in the one hundred eighty day period immediately prior to his or 29 her employment by the taxpayer. 30 § 3. Paragraphs 1 and 2 of subdivision (g-1) of section 1511 of the 31 tax law, as amended by section 3 of part I of chapter 60 of the laws of 32 2016, are amended to read as follows: 33 (1) Allowance of credit. For taxable years beginning on or after Janu- 34 ary first, two thousand fifteen and before January first, two thousand 35 [nineteen] twenty-one, a taxpayer shall be allowed a credit, to be 36 computed as provided in this subdivision, against the tax imposed by 37 this article, for hiring and employing, for not less than one year and 38 for not less than thirty-five hours each week, a qualified veteran with- 39 in the state. The taxpayer may claim the credit in the year in which 40 the qualified veteran completes one year of employment by the taxpayer. 41 If the taxpayer claims the credit allowed under this subdivision, the 42 taxpayer may not use the hiring of a qualified veteran that is the basis 43 for this credit in the basis of any other credit allowed under this 44 article. 45 (2) Qualified veteran. A qualified veteran is an individual: 46 (A) who served on active duty in the United States army, navy, air 47 force, marine corps, coast guard or the reserves thereof, or who served 48 in active military service of the United States as a member of the army 49 national guard, air national guard, New York guard or New York naval 50 militia; who was released from active duty by general or honorable 51 discharge after September eleventh, two thousand one; 52 (B) who commences employment by the qualified taxpayer on or after 53 January first, two thousand fourteen, and before January first, two 54 thousand [eighteen] twenty; and 55 (C) who certifies by signed affidavit, under penalty of perjury, that 56 he or she has not been employed for thirty-five or more hours during anyS. 7509 26 A. 9509 1 week in the one hundred eighty day period immediately prior to his or 2 her employment by the taxpayer. 3 § 4. This act shall take effect immediately. 4 PART R 5 Section 1. Subdivision (c) of section 25-a of the labor law, as 6 amended by section 1 of part AA of chapter 56 of the laws of 2015, is 7 amended to read as follows: 8 (c) A qualified employer shall be entitled to a tax credit equal to 9 (1) [five] seven hundred fifty dollars per month for up to six months 10 for each qualified employee the employer employs in a full-time job or 11 [two] three hundred [fifty] seventy-five dollars per month for up to six 12 months for each qualified employee the employer employs in a part-time 13 job of at least twenty hours per week or ten hours per week when the 14 qualified employee is enrolled in high school full-time, (2) [one thou-15sand] fifteen hundred dollars for each qualified employee who is 16 employed for at least an additional six consecutive months by the quali- 17 fied employer in a full-time job or [five] seven hundred fifty dollars 18 for each qualified employee who is employed for at least an additional 19 six consecutive months by the qualified employer in a part-time job of 20 at least twenty hours per week or ten hours per week when the qualified 21 employee is enrolled in high school full-time, and (3) an additional 22 [one thousand] fifteen hundred dollars for each qualified employee who 23 is employed for at least an additional year after the [first year of the24employee's employment] completion of the time periods and satisfaction 25 of the conditions set forth in paragraphs one and two of this subdivi- 26 sion by the qualified employer in a full-time job or [five] seven 27 hundred fifty dollars for each qualified employee who is employed for at 28 least an additional year after the [first year of the employee's employ-29ment] completion of the time periods and satisfaction of the conditions 30 set forth in paragraphs one and two of this subdivision by the qualified 31 employer in a part-time job of at least twenty hours per week or ten 32 hours per week when the qualified employee is enrolled in high school 33 full time. The tax credits shall be claimed by the qualified employer as 34 specified in subdivision thirty-six of section two hundred ten-B and 35 subsection (tt) of section six hundred six of the tax law. 36 § 2. Subdivisions (d), (e) and (f) of section 25-a of the labor law, 37 subdivisions (d) and (e) as amended by section 1 of subpart A of part N 38 of chapter 59 of the laws of 2017 and subdivision (f) as amended by 39 section 1 of part AA of chapter 56 of the laws of 2015, are amended to 40 read as follows: 41 (d) To participate in the program established under this section, an 42 employer must submit an application (in a form prescribed by the commis- 43 sioner) to the commissioner after January first, two thousand twelve but 44 no later than November thirtieth, two thousand twelve for program one, 45 after January first, two thousand fourteen but no later than November 46 thirtieth, two thousand fourteen for program two, after January first, 47 two thousand fifteen but no later than November thirtieth, two thousand 48 fifteen for program three, after January first, two thousand sixteen but 49 no later than November thirtieth, two thousand sixteen for program four, 50 after January first, two thousand seventeen but no later than November 51 thirtieth, two thousand seventeen for program five, after January first, 52 two thousand eighteen but no later than November thirtieth, two thousand 53 eighteen for program six, after January first, two thousand nineteen but 54 no later than November thirtieth, two thousand nineteen for programS. 7509 27 A. 9509 1 seven, after January first, two thousand twenty but no later than Novem- 2 ber thirtieth, two thousand twenty for program eight, after January 3 first, two thousand twenty-one but no later than November thirtieth, two 4 thousand twenty-one for program nine, and after January first, two thou- 5 sand twenty-two but no later than November thirtieth, two thousand twen- 6 ty-two for program ten. The qualified employees must start their employ- 7 ment on or after January first, two thousand twelve but no later than 8 December thirty-first, two thousand twelve for program one, on or after 9 January first, two thousand fourteen but no later than December thirty- 10 first, two thousand fourteen for program two, on or after January first, 11 two thousand fifteen but no later than December thirty-first, two thou- 12 sand fifteen for program three, on or after January first, two thousand 13 sixteen but no later than December thirty-first, two thousand sixteen 14 for program four, on or after January first, two thousand seventeen but 15 no later than December thirty-first, two thousand seventeen for program 16 five, on or after January first, two thousand eighteen but no later than 17 December thirty-first, two thousand eighteen for program six, on or 18 after January first, two thousand nineteen but no later than December 19 thirty-first, two thousand nineteen for program seven, on or after Janu- 20 ary first, two thousand twenty but no later than December thirty-first, 21 two thousand twenty for program eight, on or after January first, two 22 thousand twenty-one but no later than December thirty-first, two thou- 23 sand twenty-one for program nine, and on or after January first, two 24 thousand twenty-two but no later than December thirty-first, two thou- 25 sand twenty-two for program ten. [The commissioner shall establish26guidelines and criteria that specify requirements for employers to27participate in the program including criteria for certifying qualified28employees, ensuring that the process established will minimize any undue29delay in issuing the certificate of eligibility. Any regulations that30the commissioner determines are necessary may be adopted on an emergency31basis notwithstanding anything to the contrary in section two hundred32two of the state administrative procedure act. Such requirements may33include the types of industries that the employers are engaged in. The34commissioner may give preference to employers that are engaged in demand35occupations or industries, or in regional growth sectors, including but36not limited to those identified by the regional economic development37councils, such as clean energy, healthcare, advanced manufacturing and38conservation. In addition, the commissioner shall give preference to39employers who offer advancement and employee benefit packages to the40qualified individuals.] As part of such application, an employer must: 41 (1) agree to allow the department of taxation and finance to share its 42 tax information with the commissioner. However, any information shared 43 as a result of this agreement shall not be available for disclosure or 44 inspection under the state freedom of information law, and 45 (2) allow the commissioner and its agents and the department of taxa- 46 tion and finance and its agents access to any and all books and records 47 of employees the commissioner may require to monitor compliance. 48 (e) If, after reviewing the application submitted by an employer, the 49 commissioner determines that such employer is eligible to participate in 50 the program established under this section, the commissioner shall issue 51 the employer a preliminary certificate of eligibility that establishes 52 the employer as a qualified employer. The preliminary certificate of 53 eligibility shall specify the maximum amount of tax credit that the 54 employer [will] may be allowed to claim and the program year under which 55 it [can] may be claimed. The maximum amount of tax credit the employerS. 7509 28 A. 9509 1 is allowed to claim shall be computed as prescribed in subdivision (c) 2 of this section. 3 (f) The commissioner shall annually publish a report. Such report must 4 contain the names and addresses of any employer issued a preliminary 5 certificate of eligibility under this section, [and] the [maximum] 6 amount of New York youth works tax credit allowed to the qualified 7 employer as specified on [such] an annual final certificate of [eligi-8bility] tax credit and any other information as determined by the 9 commissioner. 10 § 3. Section 25-a of the labor law is amended by adding three new 11 subdivisions (e-1), (e-2) and (e-3) to read as follows: 12 (e-1)(1) To receive an annual final certificate of tax credit, the 13 qualified employer must annually submit, on or before January thirty- 14 first of the calendar year subsequent to the payment of wages paid to an 15 eligible employee, a report to the commissioner, in a form prescribed by 16 the commissioner. The report must demonstrate that the employer has 17 satisfied all eligibility requirements and provided all the information 18 necessary for the commissioner to compute an actual amount of credit 19 allowed. 20 (2) After reviewing the report and finding it sufficient, the commis- 21 sioner shall issue an annual final certificate of tax credit. Such 22 certificate shall include, in addition to any other information the 23 commissioner determines is necessary, the following information: 24 (i) The name and employer identification number of the qualified 25 employer; 26 (ii) The program year for the corresponding credit award; 27 (iii) The actual amount of credit to which the qualified employer is 28 entitled for that calendar year or the fiscal year in which the annual 29 final certificate is issued, which actual amount cannot exceed the 30 amount of credit listed on the preliminary certificate but may be less 31 than such amount; and 32 (iv) A unique certificate number identifying the annual final certif- 33 icate of tax credit. 34 (e-2) In determining the amount of credit for purposes of the annual 35 final certificate of tax credit, the portion of the credit described in 36 paragraph one of subdivision (c) of this section shall be allowed for 37 the calendar year in which the wages are paid to the qualified employee, 38 the portion of the credit described in paragraph two of subdivision (c) 39 of this section shall be allowed for the calendar year in which the 40 additional six consecutive month period ends, and the portion of the 41 credit described in paragraph three of subdivision (c) of this section 42 shall be allowed for the calendar year in which the additional year of 43 consecutive employment ends after the completion of the time periods and 44 satisfaction of the conditions set forth in paragraphs one and two of 45 subdivision (c) of this section. If the qualified employer's taxable 46 year is a calendar year, the employer shall be entitled to claim the 47 credit as calculated on the annual final certificate of tax credit on 48 the calendar year return for which the annual final certificate of tax 49 credit was issued. If the qualified employer's taxable year is a fiscal 50 year, the employer shall be entitled to claim the credit as calculated 51 on the annual final certificate of tax credit on the return for the 52 fiscal year that encompasses the date on which the annual final certif- 53 icate of tax credit is issued. 54 (e-3) The commissioner shall establish guidelines and criteria that 55 specify requirements for employers to participate in the program includ- 56 ing criteria for certifying qualified employees, and issuing the prelim-S. 7509 29 A. 9509 1 inary certificate of eligibility and annual final certificate of tax 2 credit. Any regulations that the commissioner determines are necessary 3 may be adopted on an emergency basis notwithstanding anything to the 4 contrary in section two hundred two of the state administrative proce- 5 dure act. Such requirements may include the types of industries that the 6 employers are engaged in. The commissioner may give preference to 7 employers that are engaged in demand occupations or industries, or in 8 regional growth sectors, including but not limited to those identified 9 by the regional economic development councils, such as clean energy, 10 healthcare, advanced manufacturing and conservation. In addition, the 11 commissioner shall give preference to employers who offer advancement 12 and employee benefit packages to the qualified individuals. 13 § 4. Paragraph (a) of subdivision 36 of section 210-B of the tax law, 14 as amended by section 2 of part AA of chapter 56 of the laws of 2015, is 15 amended to read as follows: 16 (a) A taxpayer that has been certified by the commissioner of labor as 17 a qualified employer pursuant to section twenty-five-a of the labor law 18 shall be allowed a credit against the tax imposed by this article equal 19 to (i) [five] seven hundred fifty dollars per month for up to six months 20 for each qualified employee the employer employs in a full-time job or 21 [two] three hundred [fifty] seventy-five dollars per month for up to six 22 months for each qualified employee the employer employs in a part-time 23 job of at least twenty hours per week or ten hours per week when the 24 qualified employee is enrolled in high school full-time, (ii) [one thou-25sand] fifteen hundred dollars for each qualified employee who is 26 employed for at least an additional six consecutive months by the quali- 27 fied employer in a full-time job or [five] seven hundred fifty dollars 28 for each qualified employee who is employed for at least an additional 29 six consecutive months by the qualified employer in a part-time job of 30 at least twenty hours per week or ten hours per week when the qualified 31 employee is enrolled in high school full-time, and (iii) an additional 32 [one thousand] fifteen hundred dollars for each qualified employee who 33 is employed for at least an additional year after the [first year of the34employee's employment] completion of the time periods and satisfaction 35 of the conditions set forth in subparagraphs (i) and (ii) of this para- 36 graph by the qualified employer in a full-time job or [five] seven 37 hundred fifty dollars for each qualified employee who is employed for at 38 least an additional year after the [first year of the employee's employ-39ment] completion of the time periods and satisfaction of the conditions 40 set forth in subparagraphs (i) and (ii) of this paragraph by the quali- 41 fied employer in a part-time job of at least twenty hours per week or 42 ten hours per week when the qualified employee is enrolled in high 43 school full-time. For purposes of this subdivision, the term "qualified 44 employee" shall have the same meaning as set forth in subdivision (b) of 45 section twenty-five-a of the labor law. The portion of the credit 46 described in subparagraph (i) of this paragraph shall be allowed for the 47 taxable year in which the wages are paid to the qualified employee, the 48 portion of the credit described in subparagraph (ii) of this paragraph 49 shall be allowed in the taxable year in which the additional six month 50 period ends, and the portion of the credit described in subparagraph 51 (iii) of this paragraph shall be allowed in the taxable year in which 52 the additional year after the first year of employment ends. 53 § 5. Paragraph (a) of subdivision 36 of section 210-B of the tax law, 54 as amended by section 4 of this act, is amended to read as follows: 55 (a) A taxpayer that has been certified by the commissioner of labor as 56 a qualified employer pursuant to section twenty-five-a of the labor lawS. 7509 30 A. 9509 1 and received an annual final certificate of tax credit from such commis- 2 sioner shall be allowed a credit against the tax imposed by this article 3 equal to [(i) seven hundred fifty dollars per month for up to six months4for each qualified employee the employer employs in a full-time job or5three hundred seventy-five dollars per month for up to six months for6each qualified employee the employer employs in a part-time job of at7least twenty hours per week or ten hours per week when the qualified8employee is enrolled in high school full-time, (ii) fifteen hundred9dollars for each qualified employee who is employed for at least an10additional six consecutive months by the qualified employer in a full-11time job or seven hundred fifty dollars for each qualified employee who12is employed for at least an additional six consecutive months by the13qualified employer in a part-time job of at least twenty hours per week14or ten hours per week when the qualified employee is enrolled in high15school full-time, and (iii) an additional fifteen hundred dollars for16each qualified employee who is employed for at least an additional year17after the completion of the time periods and satisfaction of the condi-18tions set forth in subparagraphs (i) and (ii) of this paragraph by the19qualified employer in a full-time job or seven hundred fifty dollars for20each qualified employee who is employed for at least an additional year21after the completion of the time periods and satisfaction of the condi-22tions set forth in subparagraphs (i) and (ii) of this paragraph by the23qualified employer in a part-time job of at least twenty hours per week24or ten hours per week when the qualified employee is enrolled in high25school full-time. For purposes of this subdivision, the term "qualified26employee" shall have the same meaning as set forth in subdivision (b) of27section twenty-five-a of the labor law. The portion of the credit28described in subparagraph (i) of this paragraph shall be allowed for the29taxable year in which the wages are paid to the qualified employee, the30portion of the credit described in subparagraph (ii) of this paragraph31shall be allowed in the taxable year in which the additional six month32period ends, and the portion of the credit described in subparagraph33(iii) of this paragraph shall be allowed in the taxable year in which34the additional year after the first year of employment ends] the amount 35 listed on the annual final certificate of tax credit issued by the 36 commissioner of labor pursuant to section twenty-five-a of the labor 37 law. If the qualified employer's taxable year is a calendar year, the 38 employer shall be entitled to claim the credit as calculated on the 39 annual final certificate of tax credit on the calendar year return for 40 which the annual final certificate of tax credit was issued. If the 41 qualified employer's taxable year is a fiscal year, the employer shall 42 be entitled to claim the credit as calculated on the annual final 43 certificate of tax credit on the return for the fiscal year that encom- 44 passes the date on which the annual final certificate of tax credit is 45 issued. For the purposes of this subdivision, the term "qualified 46 employee" shall have the same meaning as set forth in subdivision (b) of 47 section twenty-five-a of the labor law. 48 § 6. Paragraph (c) of subdivision 36 of section 210-B of the tax law, 49 as added by section 17 of part A of chapter 59 of the laws of 2014, is 50 amended to read as follows: 51 (c) The taxpayer [may] shall be required to attach to its tax return 52 its annual final certificate of [eligibility] tax credit issued by the 53 commissioner of labor pursuant to section twenty-five-a of the labor 54 law. In no event shall the taxpayer be allowed a credit greater than the 55 amount of the credit listed on the annual final certificate of [eligi-56bility] tax credit. Notwithstanding any provision of this chapter toS. 7509 31 A. 9509 1 the contrary, the commissioner and the commissioner's designees may 2 release the names and addresses of any taxpayer claiming this credit and 3 the amount of the credit earned by the taxpayer. Provided, however, if 4 a taxpayer claims this credit because it is a member of a limited 5 liability company or a partner in a partnership, only the amount of 6 credit earned by the entity and not the amount of credit claimed by the 7 taxpayer may be released. 8 § 7. Paragraph 1 of subsection (tt) of section 606 of the tax law, as 9 amended by section 3 of part AA of chapter 56 of the laws of 2015, is 10 amended to read as follows: 11 (1) A taxpayer that has been certified by the commissioner of labor as 12 a qualified employer pursuant to section twenty-five-a of the labor law 13 shall be allowed a credit against the tax imposed by this article equal 14 to (A) [five] seven hundred fifty dollars per month for up to six months 15 for each qualified employee the employer employs in a full-time job or 16 [two] three hundred [fifty] seventy-five dollars per month for up to six 17 months for each qualified employee the employer employs in a part-time 18 job of at least twenty hours per week or ten hours per week when the 19 qualified employee is enrolled in high school full-time, and (B) [one20thousand] fifteen hundred dollars for each qualified employee who is 21 employed for at least an additional six consecutive months by the quali- 22 fied employer in a full-time job or [five] seven hundred fifty dollars 23 for each qualified employee who is employed for at least an additional 24 six consecutive months by the qualified employer in a part-time job of 25 at least twenty hours per week or ten hours per week when the qualified 26 employee is enrolled in high school full-time, and (C) an additional 27 [one thousand] fifteen hundred dollars for each qualified employee who 28 is employed for at least an additional year after the [first year of the29employee's employment] completion of the time periods and satisfaction 30 of the conditions set forth in subparagraphs A and B of this subsection 31 by the qualified employer in a full-time job or [five] seven hundred 32 fifty dollars for each qualified employee who is employed for at least 33 an additional year after the [first year of the employee's employment] 34 completion of the time periods and satisfaction of the conditions set 35 forth in subparagraphs A and B of this subsection by the qualified 36 employer in a part-time job of at least twenty hours per week or ten 37 hours per week when the qualified employee is enrolled in high school 38 full-time. A taxpayer that is a partner in a partnership, member of a 39 limited liability company or shareholder in an S corporation that has 40 been certified by the commissioner of labor as a qualified employer 41 pursuant to section twenty-five-a of the labor law shall be allowed its 42 pro rata share of the credit earned by the partnership, limited liabil- 43 ity company or S corporation. For purposes of this subsection, the term 44 "qualified employee" shall have the same meaning as set forth in subdi- 45 vision (b) of section twenty-five-a of the labor law. The portion of the 46 credit described in subparagraph (A) of this paragraph shall be allowed 47 for the taxable year in which the wages are paid to the qualified 48 employee, the portion of the credit described in subparagraph (B) of 49 this paragraph shall be allowed in the taxable year in which the addi- 50 tional six month period ends, and the portion of the credit described in 51 subparagraph (C) of this paragraph shall be allowed in the taxable year 52 in which the additional year after the first year of employment ends. 53 § 8. Paragraph 1 of subsection (tt) of section 606 of the tax law, as 54 amended by section 7 of this act, is amended to read as follows: 55 (1) A taxpayer that has been certified by the commissioner of labor as 56 a qualified employer pursuant to section twenty-five-a of the labor lawS. 7509 32 A. 9509 1 and received an annual final certificate of tax credit from such commis- 2 sioner shall be allowed a credit against the tax imposed by this article 3 equal to [(A) seven hundred fifty dollars per month for up to six months4for each qualified employee the employer employs in a full-time job or5three hundred seventy-five dollars per month for up to six months for6each qualified employee the employer employs in a part-time job of at7least twenty hours per week or ten hours per week when the qualified8employee is enrolled in high school full-time, and (B) fifteen hundred9dollars for each qualified employee who is employed for at least an10additional six consecutive months by the qualified employer in a full-11time job or seven hundred fifty dollars for each qualified employee who12is employed for at least an additional six consecutive months by the13qualified employer in a part-time job of at least twenty hours per week14or ten hours per week when the qualified employee is enrolled in high15school full-time, and (C) an additional fifteen hundred dollars for each16qualified employee who is employed for at least an additional year after17the completion of the time periods and satisfaction of the conditions18set forth in subparagraphs A and B of this subsection by the qualified19employer in a full-time job or seven hundred fifty dollars for each20qualified employee who is employed for at least an additional year after21the completion of the time periods and satisfaction of the conditions22set forth in subparagraphs A and B of this subsection by the qualified23employer in a part-time job of at least twenty hours per week or ten24hours per week when the qualified employee is enrolled in high school25full-time] the amount listed on the annual final certificate of tax 26 credit issued by the commissioner of labor pursuant to section twenty- 27 five-a of the labor law. A taxpayer that is a partner in a partnership, 28 member of a limited liability company or shareholder in an S corporation 29 that has [been certified by] received its annual final certificate of 30 tax credit from the commissioner of labor as a qualified employer pursu- 31 ant to section twenty-five-a of the labor law shall be allowed its pro 32 rata share of the credit earned by the partnership, limited liability 33 company or S corporation. [For purposes of this subsection, the term34"qualified employee" shall have the same meaning as set forth in subdi-35vision (b) of section twenty-five-a of the labor law. The portion of the36credit described in subparagraph (A) of this paragraph shall be allowed37for the taxable year in which the wages are paid to the qualified38employee, the portion of the credit described in subparagraph (B) of39this paragraph shall be allowed in the taxable year in which the addi-40tional six month period ends, and the portion of the credit described in41subparagraph (C) of this paragraph shall be allowed in the taxable year42in which the additional year after the first year of employment ends.] 43 If the qualified employer's taxable year is a calendar year, the employ- 44 er shall be entitled to claim the credit as calculated on the annual 45 final certificate of tax credit on the calendar year return for which 46 the annual final certificate of tax credit was issued. If the qualified 47 employer's taxable year is a fiscal year, the employer shall be entitled 48 to claim the credit as calculated on the annual final certificate of tax 49 credit on the return for the fiscal year that encompasses the date on 50 which the annual final certificate of tax credit is issued. For the 51 purposes of this subsection, the term "qualified employee" shall have 52 the same meaning as set forth in subdivision (b) of section 53 twenty-five-a of the labor law. 54 § 9. Paragraph 3 of subsection (tt) of section 606 of the tax law, as 55 added by section 3 of part D of chapter 56 of the laws of 2011, is 56 amended to read as follows:S. 7509 33 A. 9509 1 (3) The taxpayer [may] shall be required to attach to its tax return 2 its annual final certificate of [eligibility] tax credit issued by the 3 commissioner of labor pursuant to section twenty-five-a of the labor 4 law. In no event shall the taxpayer be allowed a credit greater than the 5 amount of the credit listed on the annual final certificate of [eligi-6bility] tax credit. Notwithstanding any provision of this chapter to the 7 contrary, the commissioner and the commissioner's designees may release 8 the names and addresses of any taxpayer claiming this credit and the 9 amount of the credit earned by the taxpayer. Provided, however, if a 10 taxpayer claims this credit because it is a member of a limited liabil- 11 ity company, a partner in a partnership, or a shareholder in a subchap- 12 ter S corporation, only the amount of credit earned by the entity and 13 not the amount of credit claimed by the taxpayer may be released. 14 § 10. This act shall take effect immediately, provided however that 15 (i) section one of this act shall apply to tax years beginning on or 16 after January 1, 2018; (ii) sections four and seven of this act shall 17 apply to tax years beginning on or after January 1, 2018 and before 18 January 1, 2019; and (iii) sections two, three, five, six, eight, and 19 nine of this act shall take effect January 1, 2019 and shall apply to 20 tax years beginning on or after January 1, 2019. 21 PART S 22 Section 1. Section 33 of the tax law, as added by section 1 of part Y 23 of chapter 57 of the laws of 2010, is amended to read as follows: 24 § 33. Temporary deferral of certain tax credits. 1. (a) For taxable 25 years beginning on or after January first, two thousand [ten] eighteen 26 and before January first, two thousand [thirteen] twenty-one, the excess 27 over two million dollars of the total amount of the tax credits speci- 28 fied in subdivision three of this section that in each of those taxable 29 years would otherwise be used to reduce the taxpayer's tax liability to 30 the amount otherwise specified in this chapter or be refunded or credit- 31 ed as an overpayment will be deferred to and used or refunded in taxable 32 years beginning on or after January first, two thousand [thirteen] twen- 33 ty-one in accordance with the provisions of section thirty-four of this 34 article. Interest shall not be paid on the amounts of credit deferred. 35 (b) To determine the amount of each tax credit allowed for the taxable 36 year to be used, refunded or credited as an overpayment the taxpayer 37 shall multiply the amount of each credit subject to deferral that would 38 have been used, refunded or credited as an overpayment in the absence of 39 this section by a fraction, the numerator of which is two million 40 dollars, and the denominator of which is the total amount of the taxpay- 41 er's credits subject to deferral pursuant to subdivision three of this 42 section that would have been used, refunded or credited as an overpay- 43 ment for the taxable year in the absence of this section. The product is 44 the amount of such credit that is not subject to deferral and thus 45 allowed to be used, refunded or credited as an overpayment for the taxa- 46 ble year. 47 2. Taxpayers shall calculate and make any estimated tax payments 48 required to be made by taking into account the deferral of credits 49 required by this section. Taxpayers shall calculate any mandatory first 50 installment payments made on or after the effective date of this section 51 as if the deferral of credits required by this section had been in 52 effect for the taxable year upon which that installment is based. In 53 addition, for taxable years beginning on or after January first, two 54 thousand [ten] eighteen and before January first, two thousand [eleven]S. 7509 34 A. 9509 1 nineteen, (a) no addition to tax under subsection (c) of section six 2 hundred eighty-five of this chapter or subsection (c) of section one 3 thousand eighty-five of this chapter shall be imposed with respect to 4 any underpayment attributable to the deferral required by this section 5 of any estimated taxes that are required to be paid prior to the enact- 6 ment of this section, provided that the taxpayer timely made those 7 payments; and (b) the required installment of estimated tax described in 8 clause (ii) of subparagraph (B) of paragraph three of subsection (c) of 9 section six hundred eighty-five of this chapter, and the exception to 10 addition for underpayment of estimated tax described in paragraph one or 11 two of subsection (d) of section one thousand eighty-five of this chap- 12 ter, in relation to the preceding year's return, shall be calculated as 13 if the deferral required by this section had been in effect for that 14 entire preceding year. 15 3. (a) This section shall apply to the credits allowed under the 16 following provisions in article nine-a of this chapter and any applica- 17 ble counterpart provisions in articles nine, twenty-two, [thirty-two] 18 and thirty-three of this chapter: 19 Section [210(12)] 210-B(1) investment tax credit 20 Section [210(12-B)] 210-B(3) empire zone investment tax credit 21 Section [210(12-C)] 210-B(4) empire zone employment incentive credit 22 Section [210(12-D)] 210-B(2) employment incentive credit 23 Section [210(12-E)] 210-B(7) QETC employment credit 24 Section [210(12-F)] 210-B(8) QETC capital tax credit 25 [Section 210(12-G) QETC facilities, operations, and training credit] 26 Section [210(17)] 210-B(9) special additional mortgage recording tax 27 credit 28 [Section 210(19) empire zone wage tax credit29Section 210(20) empire zone capital tax credit] 30 Section [210(21-a)] 210-B(10) credit for servicing certain mortgages 31 Section [210(23)] 210-B(12) credit for employment of persons with 32 disabilities 33 Section [210(24)] 210-B(30) alternative fuels and electric vehicle 34 recharging property credit 35 Section [210(25)] 210-B(13) credit for purchase of an automated 36 external defibrillator 37 Section [210(27)] 210-B(5) QEZE credit for real property taxes 38 Section [210(28)] 210-B(6) QEZE tax reduction credit 39 Section [210(30)] 210-B(15) low income housing credit 40 Section [210(31)] 210-B(16) green building credit 41 Section [210(33)] 210-B(17) brownfield redevelopment tax credit 42 Section [210(34)] 210-B(18) remediated brownfield credit for real 43 property taxes for qualified sites 44 Section [210(35)] 210-B(19) environmental remediation insurance credit 45 Section [210(37)] 210-B(21) security training tax credit 46 [Section 210(37) credit for fuel cell electric generating equipment47expenditures] 48 Section [210(38)] 210-B(22) conservation easement tax credit 49 [Section 210(38) empire state commercial production credit] 50 Section [210(38)] 210-B(24) biofuel production credit 51 Section [210(39)] 210-B(25) clean heating fuel credit 52 Section [210(40)] 210-B(26) credit for rehabilitation of historic 53 properties 54 Section [210(40)] 210-B(38) credit for companies who provide transpor- 55 tation to individuals with disabilities 56 Section 210-B(11) agricultural property tax creditS. 7509 35 A. 9509 1 Section 210-B(35) economic transformation and facility redevelopment 2 credit 3 Section 210-B(39) alcoholic beverage production credit 4 Section 210-B(40) minimum wage reimbursement credit 5 Section 210-B(41) the tax-free NY area tax elimination credit 6 Section 210-B(43) real property tax credit for manufacturers 7 Section 210-B(44) the tax-free NY area excise tax on telecommunication 8 services credit 9 Section 210-B(47) musical and theatrical production credit 10 Section 210-B(48) workers with disabilities tax credit 11 Section 210-B(51) farm workforce retention credit 12 (b) This section shall also apply to the credits allowed by the 13 following sections: 14 [Section 186-a(9) power for jobs credit] 15 Section 606(g-1) solar energy system equipment credit 16 Section 606(pp) historic homeownership rehabilitation credit 17 Section 1511(k) credit for certain investments in certified capital 18 companies 19 § 2. Subdivisions 1 and 2 of section 34 of the tax law, as added by 20 section 2 of part Y of chapter 57 of the laws of 2010, are amended to 21 read as follows: 22 1. The amounts of nonrefundable credits that are deferred pursuant to 23 section thirty-three of this article in taxable years beginning on or 24 after January first, two thousand [ten] eighteen and before January 25 first, two thousand [thirteen] twenty-one shall be accumulated and 26 constitute the taxpayer's temporary deferral nonrefundable payout cred- 27 it. The taxpayer may first claim this credit in the taxable year begin- 28 ning on or after January first, two thousand [thirteen] twenty-one and 29 before January first, two thousand [fourteen] twenty-two. The taxpayer 30 shall be allowed to claim this credit until the accumulated amounts are 31 exhausted. The credit shall be allowed against the taxpayer's tax as 32 provided in the provisions referenced in paragraph (a) of subdivision 33 three of this section. 34 2. The amounts of refundable credits that are deferred pursuant to 35 section thirty-three of this article in taxable years beginning on or 36 after January first, two thousand [ten] eighteen and before January 37 first, two thousand [thirteen] twenty-one shall be accumulated and 38 constitute the taxpayer's temporary deferral refundable payout credit. 39 In the taxable year beginning on or after January first, two thousand 40 [thirteen] twenty-one and before January first, two thousand [fourteen] 41 twenty-two, the taxpayer shall be allowed to claim a credit equal to 42 fifty percent of the amount accumulated. In the taxable year beginning 43 on or after January first, two thousand [fourteen] twenty-two and before 44 January first, two thousand [fifteen] twenty-three, the taxpayer shall 45 be allowed to claim a credit equal to seventy-five percent of the 46 balance of the amount accumulated. In the taxable year beginning on or 47 after January first, two thousand [fifteen] twenty-three and before 48 January first, two thousand [sixteen] twenty-four, the taxpayer shall be 49 allowed to claim a credit equal to the remaining balance of the amount 50 accumulated. The credit shall be allowed against the taxpayer's tax as 51 provided in the provisions referenced in paragraph (b) of subdivision 52 three of this section. 53 § 3. This act shall take effect immediately. 54 PART TS. 7509 36 A. 9509 1 Section 1. Subdivision (a) of section 1412 of the tax law, as added by 2 chapter 61 of the laws of 1989, is amended to read as follows: 3 (a) A grantor or grantee claiming to have erroneously paid the tax 4 imposed by this article or some other person designated by such grantor 5 or grantee may file an application for refund within [two] three years 6 from the date of payment. Such application shall be filed with the 7 commissioner [of taxation and finance] on a form which he shall 8 prescribe. 9 § 2. Subdivision (b) of section 1402-a of the tax law, as added by 10 chapter 61 of the laws of 1989, is amended to read as follows: 11 (b) Notwithstanding the provisions of subdivision (a) of section four- 12 teen hundred four of this article, the additional tax imposed by this 13 section shall be paid by the grantee. If the grantee [is exempt from14such tax, the grantor shall have the duty to pay the tax] has failed to 15 pay the tax imposed by this article at the time required by section 16 fourteen hundred ten of this article or if the grantee is exempt from 17 such tax, the grantor shall have the duty to pay the tax. Where the 18 grantor has the duty to pay the tax because the grantee has failed to 19 pay, such tax shall be the joint and several liability of the grantor 20 and the grantee. 21 § 3. This act shall take effect immediately; provided, however, that 22 section two of this act shall apply to conveyances occurring on or after 23 the fifteenth day after this act shall have become a law. 24 PART U 25 Section 1. Subdivision 6 of section 470 of the tax law, as added by 26 chapter 61 of the laws of 1989, is amended to read as follows: 27 6. "Wholesale price." The [established] invoice price for which a 28 manufacturer or other person sells tobacco products to a distributor, 29 including the federal excise taxes paid by the manufacturer or other 30 person, before the allowance of any discount, trade allowance, rebate or 31 other reduction. 32 [In the absence of such an established price, a manufacturer's invoice33price of any tobacco product shall be presumptive evidence of the whole-34sale price of such tobacco product, and in its absence the price at35which such tobacco products were purchased shall be presumed to be the36wholesale price, unless evidence of a lower wholesale price shall be37established or any industry standard of markups relating to the purchase38price in relation to the wholesale price shall be established.] 39 § 2. This act shall take effect on September 1, 2018 and shall apply 40 to all tobacco products possessed in this state for sale on or after 41 such date. 42 PART V 43 Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of 44 section 1105 of the tax law, as amended by section 9 of part S of chap- 45 ter 85 of the laws of 2002, is amended to read as follows: 46 (A) gas, electricity, refrigeration and steam, and gas, electric, 47 refrigeration and steam service of whatever nature, including the trans- 48 portation, transmission or distribution of gas or electricity, even if 49 sold separately; 50 § 2. Section 1105-C of the tax law is REPEALED.S. 7509 37 A. 9509 1 § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 2 1210 of the tax law, as amended by section 2 of part WW of chapter 60 of 3 the laws of 2016, is amended to read as follows: 4 (xi) [shall provide that section eleven hundred five-C of this chapter5does not apply to such taxes, and] shall tax receipts from every sale, 6 other than sales for resale, of gas service or electric service of what- 7 ever nature, including the transportation, transmission or distribution 8 of gas or electricity, even if sold separately, at the rate set forth in 9 clause one of subparagraph (i) of the opening paragraph of this section; 10 § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- 11 trative code of the city of New York, as amended by chapter 200 of the 12 laws of 2009, is amended to read as follows: 13 (8) [makes inapplicable section eleven hundred five-C of the tax law,14and] imposes tax on receipts from every sale, other than sales for 15 resale, of gas service or electric service of whatever nature, including 16 the transportation, transmission or distribution of gas or electricity, 17 even if sold separately, at the rate set forth in subdivision (a) of 18 this section. 19 § 5. This act shall take effect immediately; provided however that 20 this act shall apply to sales made and services rendered on and after 21 June 1, 2018 whether or not such sales and services are rendered under a 22 prior contract. 23 PART W 24 Section 1. Subdivision (f) of section 1115 of the tax law, as amended 25 by chapter 205 of the laws of 1968, is amended to read as follows: 26 (f) (1) Services rendered by a veterinarian licensed and registered as 27 required by the education law which constitute the practice of veteri- 28 nary medicine as defined in said law, including hospitalization for 29 which no separate boarding charge is made, shall not be subject to tax 30 under paragraph (3) of subdivision (c) of section eleven hundred five, 31 but the exemption allowed by this subdivision shall not apply to other 32 services provided by a veterinarian to pets and other animals, includ- 33 ing, but not limited to, boarding, grooming and clipping. Articles of 34 tangible personal property designed for use in some manner relating to 35 domestic animals or poultry, when sold by such a veterinarian, shall not 36 be subject to tax under subdivision (a) of section eleven hundred five 37 or under section eleven hundred ten. However, the sale of any such arti- 38 cles of tangible personal property to a veterinarian shall not be deemed 39 a sale for resale within the meaning of [pargraph] paragraph (4) of 40 subdivision (b) of section eleven hundred one and shall not be exempt 41 from retail sales tax. 42 (2) Drugs or medicine sold to or used by a veterinarian for use in 43 rendering services that are exempt pursuant to paragraph one of this 44 subdivision to livestock or poultry used in the production for sale of 45 tangible personal property by farming, or sold to a person qualifying 46 for the exemption provided for in paragraph six of subdivision (a) of 47 this section for use by such person on such livestock or poultry. 48 § 2. Subdivision (a) of section 1119 of the tax law, as amended by 49 chapter 686 of the laws of 1986 and as further amended by section 15 of 50 part GG of chapter 63 of the laws of 2000, is amended to read as 51 follows: 52 (a) Subject to the conditions and limitations provided for herein, a 53 refund or credit shall be allowed for a tax paid pursuant to subdivision 54 (a) of section eleven hundred five or section eleven hundred ten (1) onS. 7509 38 A. 9509 1 the sale or use of tangible personal property if the purchaser or user, 2 in the performance of a contract, later incorporates that tangible 3 personal property into real property located outside this state, (2) on 4 the sale or use of tangible personal property purchased in bulk, or any 5 portion thereof, which is stored and not used by the purchaser or user 6 within this state if that property is subsequently reshipped by such 7 purchaser or user to a point outside this state for use outside this 8 state, (3) on the sale to or use by a contractor or subcontractor of 9 tangible personal property if that property is used by him solely in the 10 performance of a pre-existing lump sum or unit price construction 11 contract, (4) on the sale or use within this state of tangible personal 12 property, not purchased for resale, if the use of such property in this 13 state is restricted to fabricating such property (including incorporat- 14 ing it into or assembling it with other tangible personal property), 15 processing, printing or imprinting such property and such property is 16 then shipped to a point outside this state for use outside this state, 17 [(5) on the sale to or use by a veterinarian of drugs or medicine if18such drugs or medicine are used by such veterinarian in rendering19services, which are exempt pursuant to subdivision (f) of section eleven20hundred fifteen of this chapter, to livestock or poultry used in the21production for sale of tangible personal property by farming or if such22drugs or medicine are sold to a person qualifying for the exemption23provided for in paragraph (6) of subdivision (a) of section eleven24hundred fifteen of this chapter for use by such person on such livestock25or poultry,] or (6) on the sale of tangible personal property purchased 26 for use in constructing, expanding or rehabilitating industrial or 27 commercial real property (other than property used or to be used exclu- 28 sively by one or more registered vendors primarily engaged in the retail 29 sale of tangible personal property) located in an area designated as an 30 empire zone pursuant to article eighteen-B of the general municipal law, 31 but only to the extent that such property becomes an integral component 32 part of the real property. (For the purpose of clause (3) of the preced- 33 ing sentence, the term "pre-existing lump sum or unit price construction 34 contract" shall mean a contract for the construction of improvements to 35 real property under which the amount payable to the contractor or 36 subcontractor is fixed without regard to the costs incurred by him in 37 the performance thereof, and which (i) was irrevocably entered into 38 prior to the date of the enactment of this article or the enactment of a 39 law increasing the rate of tax imposed under this article, or (ii) 40 resulted from the acceptance by a governmental agency of a bid accompa- 41 nied by a bond or other performance guaranty which was irrevocably 42 submitted prior to such date.) Where the tax on the sale or use of such 43 tangible personal property has been paid to the vendor, to qualify for 44 such refund or credit, such tangible personal property must be incorpo- 45 rated into real property as required in clause (1) above, reshipped as 46 required in clause (2) above, used in the manner described in clauses 47 (3), (4)[, (5)] and (6) above within three years after the date such tax 48 was payable to the tax commission by the vendor pursuant to section 49 eleven hundred thirty-seven. Where the tax on the sale or use of such 50 tangible personal property was paid by the applicant for the credit or 51 refund directly to the tax commission, to qualify for such refund or 52 credit, such tangible personal property must be incorporated into real 53 property as required in clause (1) above, reshipped as required in 54 clause (2) above, used in the manner described in clauses (3), (4)[,55(5)] and (6) above within three years after the date such tax was paya- 56 ble to the tax commission by such applicant pursuant to this article. AnS. 7509 39 A. 9509 1 application for a refund or credit pursuant to this section must be 2 filed with such commission within the time provided by subdivision (a) 3 of section eleven hundred thirty-nine. Such application shall be in such 4 form as the tax commission may prescribe. Where an application for cred- 5 it has been filed, the applicant may immediately take such credit on the 6 return which is due coincident with or immediately subsequent to the 7 time that he files his application for credit. However, the taking of 8 the credit on the return shall be deemed to be part of the application 9 for credit and shall be subject to the provisions in respect to applica- 10 tions for credit in section eleven hundred thirty-nine as provided in 11 subdivision (e) of such section. With respect to a sale or use described 12 in clause (3) above where a pre-existing lump sum or unit price 13 construction contract was irrevocably entered into prior to the date of 14 the enactment of this article or the bid accompanied by the performance 15 guaranty was irrevocably submitted to the governmental agency prior to 16 such date, the purchaser or user shall be entitled to a refund or credit 17 only of the amount by which the tax on such sale or use imposed under 18 this article plus any tax imposed under the authority of article twen- 19 ty-nine exceeds the amount computed by applying against such sale or use 20 the local rate of tax, if any, in effect at the time such contract was 21 entered into or such bid was submitted. 22 In the case of the enactment of a law increasing the rate of tax 23 imposed by this article, the purchaser or user shall be entitled only to 24 a refund or credit of the amount by which the increased tax on such sale 25 or use imposed under this article plus any tax imposed under the author- 26 ity of article twenty-nine exceeds the amount computed by applying 27 against such sale or use the state and local rates of tax in effect at 28 the time such contract was entered into or such bid was submitted. 29 § 3. This act shall take effect June 1, 2018, and shall apply to sales 30 made and uses occurring on and after such date. 31 PART X 32 Section 1. Subdivision 1 of section 1131 of the tax law, as amended by 33 chapter 576 of the laws of 1994, is amended to read as follows: 34 (1) "Persons required to collect tax" or "person required to collect 35 any tax imposed by this article" shall include: every vendor of tangible 36 personal property or services; every recipient of amusement charges; and 37 every operator of a hotel. Said terms shall also include any officer, 38 director or employee of a corporation or of a dissolved corporation, any 39 employee of a partnership, any employee or manager of a limited liabil- 40 ity company, or any employee of an individual proprietorship who as such 41 officer, director, employee or manager is under a duty to act for such 42 corporation, partnership, limited liability company or individual 43 proprietorship in complying with any requirement of this article, or has 44 so acted; and any member of a partnership or limited liability company. 45 Provided, however, that any person who is a vendor solely by reason of 46 clause (D) or (E) of subparagraph (i) of paragraph (8) of subdivision 47 (b) of section eleven hundred one of this article shall not be a "person 48 required to collect any tax imposed by this article" until twenty days 49 after the date by which such person is required to file a certificate of 50 registration pursuant to section eleven hundred thirty-four of this 51 part. 52 § 2. Subdivision (a) of section 1133 of the tax law, as amended by 53 chapter 621 of the laws of 1967, is amended to read as follows:S. 7509 40 A. 9509 1 (a) (1) Except as otherwise provided in paragraph two of this subdivi- 2 sion and in section eleven hundred thirty-seven of this part, every 3 person required to collect any tax imposed by this article shall be 4 personally liable for the tax imposed, collected or required to be 5 collected under this article. Any such person shall have the same right 6 in respect to collecting the tax from his customer or in respect to 7 nonpayment of the tax by the customer as if the tax were a part of the 8 purchase price of the property or service, amusement charge or rent, as 9 the case may be, and payable at the same time; provided, however, that 10 the tax commission shall be joined as a party in any action or proceed- 11 ing brought to collect the tax. 12 (2) Notwithstanding any other provision of this article: (i) The 13 commissioner shall grant the relief described in subparagraph (iii) of 14 this paragraph to a limited partner of a limited partnership (but not a 15 partner of a limited liability partnership) or a member of a limited 16 liability company if such limited partner or member demonstrates to the 17 satisfaction of the commissioner that such limited partner's or member's 18 ownership interest and the percentage of the distributive share of the 19 profits and losses of such limited partnership or limited liability 20 company are each less than fifty percent, and such limited partner or 21 member was not under a duty to act for such limited partnership or 22 limited liability company in complying with any requirement of this 23 article. Provided, however, the commissioner may deny an application for 24 relief to any such limited partner or member who the commissioner finds 25 has acted on behalf of such limited partnership or limited liability 26 company in complying with any requirement of this article or has been 27 convicted of a crime provided in this chapter or who has a past-due 28 liability, as such term is defined in section one hundred seventy-one-v 29 of this chapter. 30 (ii) Such limited partner or member must submit an application for 31 relief, on a form prescribed by the commissioner, and the information 32 provided in such application must be true and complete in all material 33 respects. Providing materially false or fraudulent information on such 34 application shall disqualify such limited partner or member for the 35 relief described in subparagraph (iii) of this paragraph, shall void any 36 agreement with the commissioner with respect to such relief, and shall 37 result in such limited partner or member bearing strict liability for 38 the total amount of tax, interest and penalty owed by their respective 39 limited partnership or limited liability company pursuant to this subdi- 40 vision. 41 (iii) A limited partner of a limited partnership or member of a limit- 42 ed liability company, who meets the requirements set forth in this para- 43 graph and whose application for relief is approved by the commissioner, 44 shall be liable for the percentage of the original sales and use tax 45 liability of their respective limited partnership or limited liability 46 company that reflects such limited partner's or member's ownership 47 interest of distributive share of the profits and losses of such limited 48 partnership or limited liability company, whichever is higher. Such 49 original liability shall include any interest accrued thereon up to and 50 including the date of payment by such limited partner or member at the 51 underpayment rate set by the commissioner pursuant to section eleven 52 hundred forty-two of this part, and shall be reduced by the sum of any 53 payments made by (A) the limited partnership or limited liability compa- 54 ny; (B) any person required to collect tax not eligible for relief; and 55 (C) any person required to collect tax who was eligible for relief but 56 had not been approved for relief by the commissioner at the time suchS. 7509 41 A. 9509 1 payment was made. Provided, however, such limited partner or member 2 shall not be liable for any penalty owed by such limited partnership or 3 limited liability company or any other partner or member of such limited 4 partnership or limited liability company. Any payment made by a limited 5 partner or member pursuant to the provisions of this paragraph shall not 6 be credited against the liability of other limited partners or members 7 of their respective limited partnership or limited liability company who 8 are eligible for the same relief; provided, however that the sum of the 9 amounts owed by all of the persons required to collect tax of a limited 10 partnership or limited liability company shall not exceed the total 11 liability of such limited partnership or limited liability company. 12 § 3. This act shall take effect immediately. 13 PART Y 14 Section 1. Paragraph 1 of subdivision (a) of section 1115 of the tax 15 law, as amended by section 1 of part II of chapter 59 of the laws of 16 2014, is amended to read as follows: 17 (1) (A) Food, food products, beverages, dietary foods and health 18 supplements, sold for human consumption but not including (i) candy and 19 confectionery, (ii) fruit drinks which contain less than seventy percent 20 of natural fruit juice, (iii) soft drinks, sodas and beverages such as 21 are ordinarily dispensed at soda fountains or in connection therewith 22 (other than coffee, tea and cocoa) and (iv) beer, wine or other alcohol- 23 ic beverages, all of which shall be subject to the retail sales and 24 compensating use taxes, whether or not the item is sold in liquid form. 25 Nothing in this subparagraph shall be construed as exempting food or 26 drink from the tax imposed under subdivision (d) of section eleven 27 hundred five of this article. 28 [The] (B) Until May thirty first, two thousand twenty, the food and 29 drink excluded from the exemption provided by [this paragraph under30subparagraphs] clauses (i), (ii) and (iii) of subparagraph (A) of this 31 paragraph, and bottled water, shall be exempt under this [paragraph] 32 subparagraph when sold for one dollar and fifty cents or less through 33 any vending machine [activated by the use of] that accepts coin[,] or 34 currency[, credit card or debit card] only or when sold for two dollars 35 or less through any vending machine that accepts any form of payment 36 other than coin or currency, whether or not it also accepts coin or 37 currency. [With the exception of the provision in this paragraph provid-38ing for an exemption for certain food or drink sold for one dollar and39fifty cents or less through vending machines, nothing herein shall be40construed as exempting food or drink from the tax imposed under subdivi-41sion (d) of section eleven hundred five of this article.] 42 § 2. This act shall take effect June 1, 2018, and shall apply to sales 43 made and uses occurring on and after such date. 44 PART Z 45 Section 1. Section 2 of subpart R of part A of chapter 61 of the laws 46 of 2017, amending the tax law relating to extending the expiration of 47 the authorization to the county of Genesee to impose an additional one 48 percent of sales and compensating use taxes, is amended to read as 49 follows: 50 § 2. Notwithstanding any other provision of law to the contrary, the 51 one percent increase in sales and compensating use taxes authorized for 52 the county of Genesee until November 30, [2019] 2020 pursuant to clauseS. 7509 42 A. 9509 1 (20) of subparagraph (i) of the opening paragraph of section 1210 of the 2 tax law, as amended by section one of this act, shall be divided in the 3 same manner and proportion as the existing three percent sales and 4 compensating use taxes in such county are divided. 5 § 2. Section 2 of subpart Z of part A of chapter 61 of the laws of 6 2017, amending the tax law relating to the imposition of sales and 7 compensating use taxes by the county of Monroe, is amended to read as 8 follows: 9 § 2. Notwithstanding the provisions of subdivisions (b) and (c) of 10 section 1262 and section 1262-g of the tax law, net collections, as such 11 term is defined in section 1262 of the tax law, derived from the imposi- 12 tion of sales and compensating use taxes by the county of Monroe at the 13 additional rate of one percent as authorized pursuant to clause (25) of 14 subparagraph (i) of the opening paragraph of section 1210 of the tax 15 law, as amended by section one of this act, which are in addition to the 16 current net collections derived from the imposition of such taxes at the 17 three percent rate authorized by the opening paragraph of section 1210 18 of the tax law, shall be distributed and allocated as follows: for the 19 period of December 1, 2017 through November 30, [2019] 2020 in cash, 20 five percent to the school districts in the area of the county outside 21 the city of Rochester, three percent to the towns located within the 22 county, one and one-quarter percent to the villages located within the 23 county, and ninety and three-quarters percent to the city of Rochester 24 and county of Monroe. The amount of the ninety and three-quarters 25 percent to be distributed and allocated to the city of Rochester and 26 county of Monroe shall be distributed and allocated to each so that the 27 combined total distribution and allocation to each from the sales tax 28 revenues pursuant to sections 1262 and 1262-g of the tax law and this 29 section shall result in the same total amount being distributed and 30 allocated to the city of Rochester and county of Monroe. The amount so 31 distributed and allocated to the county shall be used for county 32 purposes. The foregoing cash payments to the school districts shall be 33 allocated on the basis of the enrolled public school pupils, thereof, as 34 such term is used in subdivision (b) of section 1262 of the tax law, 35 residing in the county of Monroe. The cash payments to the towns located 36 within the county of Monroe shall be allocated on the basis of the ratio 37 which the population of each town, exclusive of the population of any 38 village or portion thereof located within a town, bears to the total 39 population of the towns, exclusive of the population of the villages 40 located within such towns. The cash payments to the villages located 41 within the county shall be allocated on the basis of the ratio which the 42 population of each village bears to the total population of the villages 43 located within the county. The term population as used in this section 44 shall have the same meaning as used in subdivision (b) of section 1262 45 of the tax law. 46 § 3. Section 3 of subpart EE of part A of chapter 61 of the laws of 47 2017, amending the tax law relating to extending the authorization of 48 the county of Onondaga to impose an additional rate of sales and compen- 49 sating use taxes, is amended to read as follows: 50 § 3. Notwithstanding any contrary provision of law, net collections 51 from the additional one percent rate of sales and compensating use taxes 52 which may be imposed by the county of Onondaga during the period 53 commencing December 1, 2018 and ending November 30, [2019] 2020, pursu- 54 ant to the authority of section 1210 of the tax law, shall not be 55 subject to any revenue distribution agreement entered into under subdi- 56 vision (c) of section 1262 of the tax law, but shall be allocated andS. 7509 43 A. 9509 1 distributed or paid, at least quarterly, as follows: (i) 1.58% to the 2 county of Onondaga for any county purpose; (ii) 97.79% to the city of 3 Syracuse; and (iii) .63% to the school districts in accordance with 4 subdivision (a) of section 1262 of the tax law. 5 § 4. Section 2 of subpart GG of part A of chapter 61 of the laws of 6 2017, amending the tax law relating to extending the authority of the 7 county of Orange to impose an additional rate of sales and compensating 8 use taxes, is amended to read as follows: 9 § 2. Notwithstanding subdivision (c) of section 1262 of the tax law, 10 net collections from any additional rate of sales and compensating use 11 taxes which may be imposed by the county of Orange during the period 12 commencing December 1, 2017, and ending November 30, [2019] 2020, pursu- 13 ant to the authority of section 1210 of the tax law, shall be paid to 14 the county of Orange and shall be used by such county solely for county 15 purposes and shall not be subject to any revenue distribution agreement 16 entered into pursuant to the authority of subdivision (c) of section 17 1262 of the tax law. 18 § 5. This act shall take effect immediately and shall be deemed to 19 have been in full force and effect on June 29, 2017. 20 PART AA 21 Section 1. Section 1101 of the tax law is amended by adding a new 22 subdivision (e) to read as follows: 23 (e) When used in this article for the purposes of the taxes imposed 24 under subdivision (a) of section eleven hundred five and by section 25 eleven hundred ten of this article, the following terms shall mean: 26 (1) Marketplace provider. A person who, pursuant to an agreement with 27 a marketplace seller, facilitates sales of tangible personal property by 28 such marketplace seller or sellers. A person "facilitates a sale of 29 tangible personal property" for purposes of this paragraph when the 30 person meets both of the following conditions: (i) such person provides 31 the forum in which, or by means of which, the sale takes place or the 32 offer of sale is accepted, including a shop, store, booth, catalog, an 33 internet website, or similar forum; and (ii) such person or an affiliate 34 of such person collects the receipts paid by a customer to a marketplace 35 seller for a sale of tangible personal property, or contracts with a 36 third party to collect such receipts. For purposes of this paragraph, 37 two persons are affiliated if one person has an ownership interest of 38 more than five percent, whether direct or indirect, in the other, or 39 where an ownership interest of more than five percent, whether direct or 40 indirect, is held in each of such persons by another person or by a 41 group of other persons that are affiliated persons with respect to each 42 other. Notwithstanding anything in this paragraph, a person who facili- 43 tates sales exclusively by means of the internet is not a marketplace 44 provider for a sales tax quarter when such person can show that it has 45 facilitated less than one hundred million dollars of sales annually for 46 every calendar year after two thousand sixteen. 47 (2) Marketplace seller. Any person, whether or not such person is 48 required to obtain a certificate of authority under section eleven 49 hundred thirty-four of this article, who has an agreement with a market- 50 place provider under which the marketplace provider will facilitate 51 sales of tangible personal property by such person within the meaning of 52 paragraph one of this subdivision. 53 § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- 54 ter 576 of the laws of 1994, is amended to read as follows:S. 7509 44 A. 9509 1 (1) "Persons required to collect tax" or "person required to collect 2 any tax imposed by this article" shall include: every vendor of tangible 3 personal property or services; every recipient of amusement charges; 4 [and] every operator of a hotel, and every marketplace provider with 5 respect to sales of tangible personal property it facilitates as 6 described in paragraph one of subdivision (e) of section eleven hundred 7 one of this article. Said terms shall also include any officer, director 8 or employee of a corporation or of a dissolved corporation, any employee 9 of a partnership, any employee or manager of a limited liability compa- 10 ny, or any employee of an individual proprietorship who as such officer, 11 director, employee or manager is under a duty to act for such corpo- 12 ration, partnership, limited liability company or individual proprietor- 13 ship in complying with any requirement of this article; and any member 14 of a partnership or limited liability company. Provided, however, that 15 any person who is a vendor solely by reason of clause (D) or (E) of 16 subparagraph (i) of paragraph (8) of subdivision (b) of section eleven 17 hundred one shall not be a "person required to collect any tax imposed 18 by this article" until twenty days after the date by which such person 19 is required to file a certificate of registration pursuant to section 20 eleven hundred thirty-four of this part. 21 § 3. Section 1132 of the tax law is amended by adding a new subdivi- 22 sion (l) to read as follows: 23 (l)(1) A marketplace provider with respect to a sale of tangible 24 personal property it facilitates: (i) shall have all the obligations and 25 rights of a vendor under this article and article twenty-nine of this 26 chapter and under any regulations adopted pursuant thereto, including, 27 but not limited to, the duty to obtain a certificate of authority, to 28 collect tax, file returns, remit tax, and the right to accept a certif- 29 icate or other documentation from a customer substantiating an exemption 30 or exclusion from tax, the right to receive the refund authorized by 31 subdivision (e) of this section and the credit allowed by subdivision 32 (f) of section eleven hundred thirty-seven of this part subject to the 33 provisions of such subdivisions; and (ii) shall keep such records and 34 information and cooperate with the commissioner to ensure the proper 35 collection and remittance of tax imposed, collected or required to be 36 collected under this article and article twenty-nine of this chapter. 37 (2) A marketplace seller who is a vendor is relieved from the duty to 38 collect tax in regard to a particular sale of tangible personal property 39 subject to tax under subdivision (a) of section eleven hundred five of 40 this article and shall not include the receipts from such sale in its 41 taxable receipts for purposes of section eleven hundred thirty-six of 42 this part if, in regard to such sale: (i) the marketplace seller can 43 show that such sale was facilitated by a marketplace provider from whom 44 such seller has received in good faith a properly completed certificate 45 of collection in a form prescribed by the commissioner, certifying that 46 the marketplace provider is registered to collect sales tax and will 47 collect sales tax on all taxable sales of tangible personal property by 48 the marketplace seller facilitated by such marketplace provider, and 49 with such other information as the commissioner may prescribe; and (ii) 50 any failure of the marketplace provider to collect the proper amount of 51 tax in regard to such sale was not the result of such marketplace seller 52 providing the marketplace provider with incorrect information. This 53 provision shall be administered in a manner consistent with subparagraph 54 (i) of paragraph one of subdivision (c) of this section as if a certif- 55 icate of collection were a resale or exemption certificate for purposes 56 of such subparagraph, including with regard to the completeness of suchS. 7509 45 A. 9509 1 certificate of collection and the timing of its acceptance by the 2 marketplace seller. Provided that, with regard to any sales of tangible 3 personal property by a marketplace seller that are facilitated by a 4 marketplace provider who is affiliated with such marketplace seller 5 within the meaning of paragraph one of subdivision (e) of section eleven 6 hundred one of this article, the marketplace seller shall be deemed 7 liable as a person under a duty to act for such marketplace provider for 8 purposes of subdivision one of section eleven hundred thirty-one of this 9 part. 10 (3) The commissioner may, in his or her discretion: (i) develop a 11 standard provision, or approve a provision developed by a marketplace 12 provider, in which the marketplace provider obligates itself to collect 13 the tax on behalf of all the marketplace sellers for whom such market- 14 place provider facilitates sales of tangible personal property, with 15 respect to all sales that it facilitates for such sellers where delivery 16 occurs in the state; and (ii) provide by regulation or otherwise that 17 the inclusion of such provision in the publicly-available agreement 18 between the marketplace provider and marketplace seller will have the 19 same effect as a marketplace seller's acceptance of a certificate of 20 collection from such marketplace provider under paragraph two of this 21 subdivision. 22 § 4. Section 1133 of the tax law is amended by adding a new subdivi- 23 sion (f) to read as follows: 24 (f) A marketplace provider is relieved of liability under this section 25 for failure to collect the correct amount of tax to the extent that the 26 marketplace provider can show that the error was due to incorrect infor- 27 mation given to the marketplace provider by the marketplace seller. 28 Provided, however, this subdivision shall not apply if the marketplace 29 seller and the marketplace provider are affiliated within the meaning of 30 paragraph one of subdivision (e) of section eleven hundred one of this 31 article. 32 § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 33 amended by section 46 of part K of chapter 61 of the laws of 2011, is 34 amended to read as follows: 35 (4) The return of a vendor of tangible personal property or services 36 shall show such vendor's receipts from sales and the number of gallons 37 of any motor fuel or diesel motor fuel sold and also the aggregate value 38 of tangible personal property and services and number of gallons of such 39 fuels sold by the vendor, the use of which is subject to tax under this 40 article, and the amount of tax payable thereon pursuant to the 41 provisions of section eleven hundred thirty-seven of this part. The 42 return of a recipient of amusement charges shall show all such charges 43 and the amount of tax thereon, and the return of an operator required to 44 collect tax on rents shall show all rents received or charged and the 45 amount of tax thereon. The return of a marketplace seller shall exclude 46 the receipts from a sale of tangible personal property facilitated by a 47 marketplace provider if, in regard to such sale: (A) the marketplace 48 seller has timely received in good faith a properly completed certif- 49 icate of collection from the marketplace provider or the marketplace 50 provider has included a provision approved by the commissioner in the 51 publicly-available agreement between themselves and such marketplace 52 seller as described in subdivision (l) of section eleven hundred thir- 53 ty-two of this part, and (B) the information provided by the marketplace 54 seller to the marketplace provider about such tangible personal property 55 is accurate.S. 7509 46 A. 9509 1 § 6. Section 1142 of the tax law is amended by adding two new subdivi- 2 sions 15 and 16 to read as follows: 3 15. To publish a list on the department's website of marketplace 4 providers whose certificates of authority has been revoked and, if 5 necessary to protect sales tax revenue, provide by regulation or other- 6 wise that a marketplace seller who is a vendor will be relieved of the 7 duty to collect tax for sales of tangible personal property facilitated 8 by a marketplace provider only if, in addition to the conditions 9 prescribed by paragraph two of subdivision (l) of section eleven hundred 10 thirty-two of this part being met, such marketplace provider is not on 11 such list at the commencement of the quarterly period covered thereby. 12 16. To enforce the penalties imposed on non-collecting sellers and 13 non-collecting marketplace providers provided by subdivision (i) of 14 section eleven hundred forty-five of this part by commencing a proceed- 15 ing under article seventy-two of the civil practice law and rules. This 16 means enforcing such penalties is in addition to any other lawful means 17 the commissioner may use to enforce such penalties. The venue for such 18 proceeding shall be Albany county. 19 § 7. The tax law is amended by adding a new section 1135-a to read as 20 follows: 21 § 1135-a. Reporting requirements. (a) (1) The following definitions 22 apply to the taxes imposed by this article and pursuant to the authority 23 of article twenty-nine of this chapter: 24 (A) Non-collecting seller means a person who makes sales of tangible 25 personal property, the use of which is taxed by this article, but who is 26 not required to obtain a certificate of authority under section eleven 27 hundred thirty-four of this part and who does not collect tax or money 28 purportedly as tax imposed by this article in regard to tangible 29 personal property delivered to a location in this state. 30 (B) Non-collecting marketplace provider means a marketplace provider, 31 as defined by section eleven hundred one of this article, who is not 32 required to obtain a certificate of authority under section eleven 33 hundred thirty-four of this part and who does not collect tax or money 34 purportedly as tax imposed by this article in regard to tangible 35 personal property delivered to a location in this state. 36 (C) New York purchaser means any person who purchases tangible 37 personal property for delivery to a location in this state. 38 (D) Last known address of a New York purchaser means, for purposes of 39 this subdivision, subdivision sixteen of section eleven hundred forty- 40 two, and subdivision (i) of section eleven hundred forty-five of this 41 part, the purchaser's billing address or, if unknown, the purchaser's 42 shipping address. If no billing or shipping address is known, this term 43 shall mean the purchaser's last known e-mail address. 44 (2) The following requirements apply to a non-collecting seller: 45 (A) A non-collecting seller's records shall be made available to the 46 commissioner upon request. These records shall include, but are not 47 limited to, each New York purchaser's name and last known address as 48 defined by subparagraph (D) of paragraph one of this subdivision, and 49 the total of the non-collecting seller's receipts from the purchases of 50 the New York purchaser. 51 (B) Except as provided in paragraphs four and five of this subdivi- 52 sion, a non-collecting seller shall file an annual information return 53 with the commissioner. Such return shall include the total of the non- 54 collecting seller's receipts from purchases of tangible personal proper- 55 ty that was delivered to a location in this state for the calendar year 56 covered by the return, together with such other information the commis-S. 7509 47 A. 9509 1 sioner may prescribe. Such return shall be filed on or before January 2 thirty-first of each year and shall cover the prior calendar year, with 3 the first such return due on January thirty-first, two thousand twenty 4 for the calendar year two thousand nineteen. 5 (C) Except as provided in paragraphs four and five of this subdivi- 6 sion, a non-collecting seller shall provide an annual statement of 7 purchases to each New York purchaser for purchases of tangible personal 8 property delivered to a location in this state from such seller during 9 the calendar year covered by the statement. Such annual statement shall 10 include: (i) a statement that sales or use tax was not collected on the 11 purchaser's transactions in the prior calendar year and that the 12 purchaser may be required to remit such tax directly to the commission- 13 er; (ii) a list of transactions entered into during the prior calendar 14 year by such purchaser for delivery to a location into this state show- 15 ing, the date of each purchase, a general description of each item 16 purchased, and the amount paid for each item, including any shipping or 17 delivery charges; (iii) instructions for obtaining additional informa- 18 tion regarding whether and how to remit the sales or use tax to the 19 commissioner; and (iv) a statement that such sellers may be required to 20 annually report the aggregate dollar value of the purchaser's purchases 21 to the commissioner. Such statement shall be sent to each New York 22 purchaser on or before January thirty-first of each year, starting in 23 the year two thousand twenty, covering sales made in the prior calendar 24 year. Such statement shall be sent by mail in an envelope bearing the 25 statement "important tax information" to the New York purchaser's last 26 known address as defined by subparagraph (D) of paragraph one of this 27 subdivision, unless the purchaser's last known address is an e-mail 28 address, in which case the statement is to be sent by e-mail, the 29 subject line of which shall state "important tax information". 30 (D) Except as provided in paragraphs four and five of this subdivi- 31 sion, a non-collecting seller shall prominently display a notice on all 32 order forms, and upon each sales receipt or other memorandum of the 33 price, whether electronic or on paper, provided to a New York purchaser 34 making a purchase of tangible personal property to be delivered to a 35 location in this state, including any screen that summarizes the trans- 36 action prior to the completion of the sale. Such notice shall indicate 37 that neither New York state and local sales nor use tax is being 38 collected or remitted upon the transaction, and that the purchaser may 39 be required to remit such tax directly to the commissioner. 40 (3) A non-collecting seller shall keep records of the information 41 described in subparagraphs (A), (B) and (C) of paragraph two of this 42 subdivision, along with proof that it has provided purchasers with any 43 per-purchase notices or annual statements of purchases required. The 44 non-collecting seller shall keep such records for such periods and in 45 such manner as prescribed for records required to be maintained under 46 subdivisions (a) and (g) of section eleven hundred thirty-five of this 47 part, or as the commissioner may otherwise require by regulation. The 48 non-collecting seller shall make those records available for inspection 49 and examination at any time upon demand by the commissioner. 50 (4) The requirements in subparagraphs (B), (C) and (D) of paragraph 51 two of this subdivision do not apply to a non-collecting seller for any 52 calendar year in which the non-collecting seller's receipts from all New 53 York purchasers are less than five million dollars during the prior 54 calendar year. 55 (5) The requirements in subparagraphs (B), (C) and (D) of paragraph 56 two of this subdivision do not apply to a non-collecting seller inS. 7509 48 A. 9509 1 regard to a particular sale of tangible personal property subject to tax 2 under subdivision (a) of section eleven hundred five of this article if, 3 the non-collecting seller can show that such sale was facilitated by: 4 (A) a marketplace provider from whom such non-collecting seller has 5 received in good faith a properly completed certificate of collection as 6 described in paragraph two of subdivision (l) of section eleven hundred 7 thirty-two of this part; or (B) a non-collecting marketplace provider 8 who fulfilled the requirements of subparagraphs (B), (C) and (D) of 9 paragraph two of this subdivision on its behalf. 10 (b) (1) A non-collecting marketplace provider shall perform the 11 requirements in paragraph two of subdivision (a) of this section on 12 behalf of a non-collecting seller for all sales it facilitates for such 13 non-collecting seller. 14 (2) Non-collecting marketplace providers shall also provide notice to 15 all non-collecting sellers for whom they facilitate sales of tangible 16 personal property that is delivered to a location in this state, such 17 notice shall include the following information: 18 (A) such sellers may be required to obtain a certificate of authority 19 under section eleven hundred thirty-four of this part and collect the 20 taxes imposed by this article and pursuant to the authority of article 21 twenty-nine of this chapter, or, where such sellers are not required to 22 obtain a certificate and collect tax, that such sellers are required to 23 comply with the requirements of this paragraph; 24 (B) the non-collecting marketplace provider will provide each seller's 25 name, address and aggregate amount of sales delivered to a location in 26 this state to the commissioner upon request; and 27 (C) the non-collecting marketplace provider is reporting the informa- 28 tion and sending the notices required by subparagraphs (B), (C) and (D) 29 of paragraph two of subdivision (a) of this section on behalf of the 30 non-collecting seller for such sale if it was facilitated by such non- 31 collecting marketplace provider. 32 (c) The commissioner may, in their discretion, modify, without adding 33 to, the information otherwise required to be included in the information 34 return, annual statement of purchases, or per-purchase notice required 35 by this subdivision if other states impose similar requirements, in 36 order to facilitate the compliance of non-collecting sellers. 37 § 8. Subdivision (i) of section 1145 of the tax law, as added by 38 section 2 of subpart G of part V-1 of chapter 57 of the laws of 2009, is 39 amended to read as follows: 40 (i)(1) Every person required to file an information return by section 41 eleven hundred thirty-five-a or subdivision (i) of section eleven 42 hundred thirty-six of this part, or an annual statement or notice 43 required by section eleven hundred thirty-five-a of this part who [(A)] 44 fails to provide any of the information required [by paragraph one or45two of subdivision (i) of section eleven hundred thirty-six of this part46for a vendor, operator, or recipient] to be provided in such information 47 return or notice, or who fails to perform the requirements of paragraph 48 two of subdivision (b) of section eleven hundred thirty-five-a of this 49 part, or who fails to include any such information that is true and 50 correct [(whether or not such a report is filed) for a vendor, operator,51or recipient, or (B) fails to provide the information required by para-52graph four of subdivision (i) of section eleven hundred thirty-six of53this part to a vendor, operator, or recipient specified in paragraph54four of subdivision (i) of section eleven hundred thirty-six of this55part], will, in addition to any other penalty provided in this article 56 or otherwise imposed by law, be subject to a penalty of five hundredS. 7509 49 A. 9509 1 dollars for ten or fewer failures, and up to fifty dollars for each 2 additional failure. 3 (2) Every person failing to file an information return required by 4 section eleven hundred thirty-five-a or subdivision (i) of section elev- 5 en hundred thirty-six of this part or an annual statement or notice by 6 section eleven hundred thirty-five-a of this part within the time 7 required [by subdivision (i) of section eleven hundred thirty-six of8this part], will, in addition to any other penalty provided for in this 9 article or otherwise imposed by law, be subject to a penalty in an 10 amount not to exceed two thousand dollars for each such failure, 11 provided that the minimum penalty under this paragraph is five hundred 12 dollars. 13 (3) In no event will the penalty imposed by paragraph one of this 14 subdivision, or the aggregate of the penalties imposed under paragraphs 15 one and two of this subdivision, exceed ten thousand dollars for any 16 annual filing period [as described by paragraph three of subdivision (i)17of section eleven hundred thirty-six of this part]. 18 (4) If the commissioner determines that any of the failures that are 19 subject to penalty under this subdivision was entirely due to reasonable 20 cause and not due to willful neglect, the commissioner must remit the 21 penalty imposed under this subdivision. These penalties will be deter- 22 mined, assessed, collected, paid, disposed of and enforced in the same 23 manner as taxes imposed by this article and all the provisions of this 24 article relating thereto will be deemed also to refer to these penal- 25 ties. 26 § 9. Severability clause. If any clause, sentence, paragraph, subdivi- 27 sion, section, or part of this act shall be adjudged by any court of 28 competent jurisdiction to be invalid, such judgment shall not affect, 29 impair, or invalidate the remainder thereof, but shall be confined in 30 its operation to the clause, sentence, paragraph, subdivision, section, 31 or part thereof directly involved in the controversy in which such judg- 32 ment shall have been rendered. It is hereby declared to be the intent of 33 the legislature that this act would have been enacted even if such 34 invalid provision had not been included herein. 35 § 10. This act shall take effect immediately and shall apply to sales 36 made on or after September 1, 2018; provided, however, that the require- 37 ments in subparagraphs (B) and (C) of paragraph 2 of subdivision (a) of 38 section 1135-a as added by section two of this act shall apply to sales 39 made on or after January 1, 2019. 40 PART BB 41 Section 1. Subdivision 2 of section 470 of the tax law, as amended by 42 section 15 of part D of chapter 134 of the laws of 2010, is amended to 43 read as follows: 44 2. "Tobacco products." Any cigar, including [a] little [cigar] cigars, 45 vapor products, or tobacco, other than cigarettes, intended for consump- 46 tion by smoking, chewing, inhaling vapors or as snuff. 47 § 2. Subdivision 12 of section 470 of the tax law, as added by chapter 48 61 of the laws of 1989, is amended to read as follows: 49 12. "Distributor." Any person who imports or causes to be imported 50 into this state any tobacco product (in excess of fifty cigars [or], one 51 pound of tobacco or one hundred milliliters of vapor product) for sale, 52 or who manufactures any tobacco product in this state, and any person 53 within or without the state who is authorized by the commissioner ofS. 7509 50 A. 9509 1 taxation and finance to make returns and pay the tax on tobacco products 2 sold, shipped or delivered by him to any person in the state. 3 § 3. Section 470 of the tax law is amended by adding a new subdivision 4 20 to read as follows: 5 20. "Vapor product." Any noncombustible liquid or gel, regardless of 6 the presence of nicotine therein, that is manufactured into a finished 7 product for use in an electronic cigarette, electronic cigar, electronic 8 cigarillo, electronic pipe, vaping pen, hookah pen or other similar 9 device. "Vapor product" shall not include any product approved by the 10 United States food and drug administration as a drug or medical device, 11 or approved for use pursuant to section three thirty-three hundred 12 sixty-two of the public health law. 13 § 4. Paragraph (a) of subdivision 1 of section 471-b of the tax law, 14 as amended by section 18 of part D of chapter 134 of the laws of 2010, 15 is amended to read as follows: 16 (a) Such tax on tobacco products other than snuff [and], little cigars 17 and vapor products shall be at the rate of seventy-five percent of the 18 wholesale price, and is intended to be imposed only once upon the sale 19 of any tobacco products other than snuff [and], little cigars and vapor 20 products. 21 § 5. Subdivision 1 of section 471-b of the tax law is amended by 22 adding a new paragraph (d) to read as follows: 23 (d) Such tax on vapor products shall be at a rate of ten cents per 24 fluid milliliter, or part thereof, of the vapor product. All invoices 25 for vapor products issued by distributors and wholesalers must state the 26 amount of vapor product in milliliters. 27 § 6. Subdivision (a) of section 471-c of the tax law, as amended by 28 section 2 of part I-1 of chapter 57 of the laws of 2009, paragraphs (i) 29 and (ii) as amended by section 20 and paragraph (iii) as added by 30 section 21 of part D of chapter 134 of the laws of 2010, is amended to 31 read as follows: 32 (a) There is hereby imposed and shall be paid a tax on all tobacco 33 products used in the state by any person, except that no such tax shall 34 be imposed (1) if the tax provided in section four hundred seventy-one-b 35 of this article is paid, or (2) on the use of tobacco products which are 36 exempt from the tax imposed by said section, or (3) on the use of two 37 hundred fifty cigars or less, [or] five pounds or less of tobacco other 38 than roll-your-own tobacco, [or] thirty-six ounces or less of roll-your- 39 own tobacco or five hundred milliliters or less of vapor product brought 40 into the state on, or in the possession of, any person. 41 (i) Such tax on tobacco products other than snuff [and], little cigars 42 and vapor products shall be at the rate of seventy-five percent of the 43 wholesale price. 44 (ii) Such tax on snuff shall be at the rate of two dollars per ounce 45 and a proportionate rate on any fractional parts of an ounce, provided 46 that cans or packages of snuff with a net weight of less than one ounce 47 shall be taxed at the equivalent rate of cans or packages weighing one 48 ounce. Such tax shall be computed based on the net weight as listed by 49 the manufacturer. 50 (iii) Such tax on little cigars shall be at the same rate imposed on 51 cigarettes under this article and is intended to be imposed only once 52 upon the sale of any little cigars. 53 (iv) Such tax on vapor products shall be at a rate of ten cents per 54 fluid milliliter of the vapor product. All invoices for vapor products 55 issued by distributors and wholesalers must state the amount of vapor 56 product in milliliters.S. 7509 51 A. 9509 1 § 7. Subdivision 2 of section 474 of the tax law, as amended by chap- 2 ter 552 of the laws of 2008, is amended to read as follows: 3 2. Every person who shall possess or transport more than two hundred 4 fifty cigars, [or] more than five pounds of tobacco other than roll- 5 your-own tobacco, [or] more than thirty-six ounces of roll-your-own 6 tobacco or more than five hundred milliliters of vapor product upon the 7 public highways, roads or streets of the state, shall be required to 8 have in his actual possession invoices or delivery tickets for such 9 tobacco products. Such invoices or delivery tickets shall show the name 10 and address of the consignor or seller, the name and address of the 11 consignee or purchaser, the quantity and brands of the tobacco products 12 transported, and the name and address of the person who has or shall 13 assume the payment of the tax and the wholesale price or the tax paid or 14 payable. The absence of such invoices or delivery tickets shall be prima 15 facie evidence that such person is a dealer in tobacco products in this 16 state and subject to the requirements of this article. 17 § 8. Subdivision 3 of section 474 of the tax law, as added by chapter 18 61 of the laws of 1989, is amended to read as follows: 19 3. Every dealer or distributor or employee thereof, or other person 20 acting on behalf of a dealer or distributor, who shall possess or trans- 21 port more than fifty cigars [or], more than one pound of tobacco or more 22 than one hundred milliliters of vapor product upon the public highways, 23 roads or streets of the state, shall be required to have in his actual 24 possession invoices or delivery tickets for such tobacco products. Such 25 invoices or delivery tickets shall show the name and address of the 26 consignor or seller, the name and address of the consignee or purchaser, 27 the quantity and brands of the tobacco products transported, and the 28 name and address of the person who has or shall assume the payment of 29 the tax and the wholesale price or the tax paid or payable. The absence 30 of such invoices or delivery tickets shall be prima facie evidence that 31 the tax imposed by this article on tobacco products has not been paid 32 and is due and owing. 33 § 9. Subparagraph (i) of paragraph (b) of subdivision 1 of section 481 34 of the tax law, as amended by section 1 of part O of chapter 59 of the 35 laws of 2013, is amended to read as follows: 36 (i) In addition to any other penalty imposed by this article, the 37 commissioner may (A) impose a penalty of not more than six hundred 38 dollars for each two hundred cigarettes, or fraction thereof, in excess 39 of one thousand cigarettes in unstamped or unlawfully stamped packages 40 in the possession or under the control of any person or (B) impose a 41 penalty of not more than two hundred dollars for each ten unaffixed 42 false, altered or counterfeit cigarette tax stamps, imprints or 43 impressions, or fraction thereof, in the possession or under the control 44 of any person. In addition, the commissioner may impose a penalty of not 45 more than seventy-five dollars for each fifty cigars [or] one pound of 46 tobacco[,] or one hundred milliliters of vapor product, or fraction 47 thereof, in excess of two hundred fifty cigars [or], five pounds of 48 tobacco or five hundred milliliters of vapor product in the possession 49 or under the control of any person and a penalty of not more than one 50 hundred fifty dollars for each fifty cigars [or], pound of tobacco or 51 one hundred milliliters of vapor product, or fraction thereof, in excess 52 of five hundred cigars [or], ten pounds of tobacco or one thousand 53 milliliters of vapor product in the possession or under the control of 54 any person, with respect to which the tobacco products tax has not been 55 paid or assumed by a distributor or tobacco products dealer; provided, 56 however, that any such penalty imposed shall not exceed seven thousandS. 7509 52 A. 9509 1 five hundred dollars in the aggregate. The commissioner may impose a 2 penalty of not more than seventy-five dollars for each fifty cigars 3 [or], one pound of tobacco or one hundred milliliters of vapor product, 4 or fraction thereof, in excess of fifty cigars [or], one pound of tobac- 5 co or one hundred milliliters of vapor product in the possession or 6 under the control of any tobacco products dealer or distributor 7 appointed by the commissioner, and a penalty of not more than one 8 hundred fifty dollars for each fifty cigars [or], pound of tobacco, or 9 one hundred milliliters of vapor product, or fraction thereof, in excess 10 of two hundred fifty cigars [or], five pounds of tobacco or five hundred 11 milliliters of vapor product in the possession or under the control of 12 any such dealer or distributor, with respect to which the tobacco 13 products tax has not been paid or assumed by a distributor or a tobacco 14 products dealer; provided, however, that any such penalty imposed shall 15 not exceed fifteen thousand dollars in the aggregate. 16 § 10. Items (I) and (II) of clause (B) and items (I) and (II) of 17 clause (C) of subparagraph (ii) of paragraph (b) of subdivision 1 of 18 section 481 of the tax law, as added by chapter 262 of the laws of 2000, 19 are amended to read as follows: 20 (I) not less than twenty-five dollars but not more than one hundred 21 dollars for each fifty cigars [or], one pound of tobacco or one hundred 22 milliliters of vapor product, or fraction thereof, in excess of two 23 hundred fifty cigars [or], five pounds of tobacco or five hundred milli- 24 liters of vapor product knowingly in the possession or knowingly under 25 the control of any person, with respect to which the tobacco products 26 tax has not been paid or assumed by a distributor or tobacco products 27 dealer; and (II) not less than fifty dollars but not more than two 28 hundred dollars for each fifty cigars [or], pound of tobacco or one 29 hundred milliliters of vapor product, or fraction thereof, in excess of 30 five hundred cigars [or], ten pounds of tobacco or one thousand millili- 31 ters of vapor product knowingly in the possession or knowingly under the 32 control of any person, with respect to which the tobacco products tax 33 has not been paid or assumed by a distributor or tobacco products deal- 34 er; provided, however, that any such penalty imposed under this clause 35 shall not exceed ten thousand dollars in the aggregate. 36 (I) not less than twenty-five dollars but not more than one hundred 37 dollars for each fifty cigars [or], one pound of tobacco or one hundred 38 milliliters of vapor product, or fraction thereof, in excess of fifty 39 cigars [or], one pound of tobacco or one hundred milliliters of vapor 40 product knowingly in the possession or knowingly under the control of 41 any person, with respect to which the tobacco products tax has not been 42 paid or assumed by a distributor or tobacco products dealer; and (II) 43 not less than fifty dollars but not more than two hundred dollars for 44 each fifty cigars [or], pound of tobacco or one hundred milliliters of 45 vapor product, or fraction thereof, in excess of two hundred fifty 46 cigars [or], five pounds of tobacco or five hundred milliliters of vapor 47 product knowingly in the possession or knowingly under the control of 48 any person, with respect to which the tobacco products tax has not been 49 paid or assumed by a distributor or a tobacco products dealer; provided, 50 however, that any such penalty imposed under this clause shall not 51 exceed twenty thousand dollars in the aggregate. 52 § 11. Paragraph (a) of subdivision 2 of section 481 of the tax law, as 53 amended by chapter 552 of the laws of 2008, is amended to read as 54 follows: 55 (a) The possession within this state of more than four hundred ciga- 56 rettes in unstamped or unlawfully stamped packages [or], more than twoS. 7509 53 A. 9509 1 hundred fifty cigars, [or] more than five pounds of tobacco other than 2 roll-your-own tobacco, [or] more than thirty-six ounces of roll-your-own 3 tobacco by any person other than an agent or distributor, as the case 4 may be, or five hundred milliliters or more of vapor product at any one 5 time shall be presumptive evidence that such cigarettes or tobacco 6 products are subject to tax as provided by this article. 7 § 12. Subdivisions (a) and (h) of section 1814 of the tax law, as 8 amended by section 28 of subpart I of part V-1 of chapter 57 of the laws 9 of 2009, are amended to read as follows: 10 (a) Any person who willfully attempts in any manner to evade or defeat 11 the taxes imposed by article twenty of this chapter or payment thereof 12 on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars 13 or more, [or] (iii) four hundred forty pounds of tobacco or more, (iv) 14 forty-four thousand milliliters of vapor product or more or has previ- 15 ously been convicted two or more times of a violation of paragraph one 16 of this subdivision shall be guilty of a class E felony. 17 (h) (1) Any dealer, other than a distributor appointed by the commis- 18 sioner [of taxation and finance] under article twenty of this chapter, 19 who shall knowingly transport or have in his custody, possession or 20 under his control more than ten pounds of tobacco [or], more than five 21 hundred cigars or more than one thousand milliliters of vapor product 22 upon which the taxes imposed by article twenty of this chapter have not 23 been assumed or paid by a distributor appointed by the commissioner [of24taxation and finance] under article twenty of this chapter, or other 25 person treated as a distributor pursuant to section four hundred seven- 26 ty-one-d of this chapter, shall be guilty of a misdemeanor punishable by 27 a fine of not more than five thousand dollars or by a term of imprison- 28 ment not to exceed thirty days. 29 (2) Any person, other than a dealer or a distributor appointed by the 30 commissioner under article twenty of this chapter, who shall knowingly 31 transport or have in his custody, possession or under his control more 32 than fifteen pounds of tobacco [or], more than seven hundred fifty 33 cigars or more than fifteen hundred milliliters or more of vapor product 34 upon which the taxes imposed by article twenty of this chapter have not 35 been assumed or paid by a distributor appointed by the commissioner 36 under article twenty of this chapter, or other person treated as a 37 distributor pursuant to section four hundred seventy-one-d of this chap- 38 ter shall be guilty of a misdemeanor punishable by a fine of not more 39 than five thousand dollars or by a term of imprisonment not to exceed 40 thirty days. 41 (3) Any person, other than a distributor appointed by the commissioner 42 under article twenty of this chapter, who shall knowingly transport or 43 have in his custody, possession or under his control twenty-five hundred 44 or more cigars [or],fifty or more pounds of tobacco or five thousand 45 milliliters or more of vapor product upon which the taxes imposed by 46 article twenty of this chapter have not been assumed or paid by a 47 distributor appointed by the commissioner under article twenty of this 48 chapter, or other person treated as a distributor pursuant to section 49 four hundred seventy-one-d of this chapter shall be guilty of a misde- 50 meanor. Provided further, that any person who has twice been convicted 51 under this subdivision shall be guilty of a class E felony for any 52 subsequent violation of this section, regardless of the amount of tobac- 53 co products involved in such violation. 54 (4) For purposes of this subdivision, such person shall knowingly 55 transport or have in his custody, possession or under his control tobac- 56 co [or], cigars or vapor products on which such taxes have not beenS. 7509 54 A. 9509 1 assumed paid by a distributor appointed by the commissioner where such 2 person has knowledge of the requirement of the tax on tobacco products 3 and, where to his knowledge, such taxes have not been assumed or paid on 4 such tobacco products by a distributor appointed by the commissioner of 5 taxation and finance. 6 § 13. Subdivisions (a) and (b) of section 1814-a of the tax law, as 7 added by chapter 61 of the laws of 1989, are amended to read as follows: 8 (a) Any person who, while not appointed as a distributor of tobacco 9 products pursuant to the provisions of article twenty of this chapter, 10 imports or causes to be imported into the state more than fifty cigars 11 [or], more than one pound of tobacco[,] or more than one hundred milli- 12 liters of vapor product for sale within the state, or produces, manufac- 13 tures or compounds tobacco products within the state shall be guilty of 14 a misdemeanor punishable by a fine of not more than five thousand 15 dollars or by a term of imprisonment not to exceed thirty days. If, 16 within any ninety day period, one thousand or more cigars [or five17hundred], twenty pounds or more of tobacco or two thousand milliliters 18 or more of vapor product are imported or caused to be imported into the 19 state for sale within the state or are produced, manufactured or 20 compounded within the state by any person while not appointed as a 21 distributor of tobacco products, such person shall be guilty of a misde- 22 meanor. Provided further, that any person who has twice been convicted 23 under this section shall be guilty of a class E felony for any subse- 24 quent violation of this section, regardless of the amount of tobacco 25 products involved in such violation. 26 (b) For purposes of this section, the possession or transportation 27 within this state by any person, other than a tobacco products distribu- 28 tor appointed by the commissioner of taxation and finance, at any one 29 time of seven hundred fifty or more cigars [or], fifteen pounds or more 30 of tobacco or fifteen hundred milliliters or more of vapor product shall 31 be presumptive evidence that such tobacco products are possessed or 32 transported for the purpose of sale and are subject to the tax imposed 33 by section four hundred seventy-one-b of this chapter. With respect to 34 such possession or transportation, any provisions of article twenty of 35 this chapter providing for a time period during which the tax imposed by 36 such article may be paid shall not apply. 37 § 14. Subdivision (a) of section 1846-a of the tax law, as amended by 38 chapter 556 of the laws of 2011, is amended to read as follows: 39 (a) Whenever a police officer designated in section 1.20 of the crimi- 40 nal procedure law or a peace officer designated in subdivision four of 41 section 2.10 of such law, acting pursuant to his special duties, shall 42 discover any tobacco products in excess of five hundred cigars [or], ten 43 pounds of tobacco or one thousand milliliters of vapor product which are 44 being imported for sale in the state where the person importing or caus- 45 ing such tobacco products to be imported has not been appointed as a 46 distributor pursuant to section four hundred seventy-two of this chap- 47 ter, such police officer or peace officer is hereby authorized and 48 empowered forthwith to seize and take possession of such tobacco 49 products. Such tobacco products seized by a police officer or peace 50 officer shall be turned over to the commissioner. Such seized tobacco 51 products shall be forfeited to the state. All tobacco products forfeited 52 to the state shall be destroyed or used for law enforcement purposes, 53 except that tobacco products that violate, or are suspected of violat- 54 ing, federal trademark laws or import laws shall not be used for law 55 enforcement purposes. If the commissioner determines the tobacco 56 products may not be used for law enforcement purposes, the commissionerS. 7509 55 A. 9509 1 must, within a reasonable time thereafter, upon publication in the state 2 registry of a notice to such effect before the day of destruction, 3 destroy such forfeited tobacco products. The commissioner may, prior to 4 any destruction of tobacco products, permit the true holder of the 5 trademark rights in the tobacco products to inspect such forfeited 6 products in order to assist in any investigation regarding such tobacco 7 products. 8 § 15. Subdivision (b) of section 1847 of the tax law, as added by 9 chapter 61 of the laws of 1989, is amended to read as follows: 10 (b) Any peace officer designated in subdivision four of section 2.10 11 of the criminal procedure law, acting pursuant to his special duties, or 12 any police officer designated in section 1.20 of the criminal procedure 13 law may seize any vehicle or other means of transportation used to 14 import tobacco products in excess of five hundred cigars [or], ten 15 pounds of tobacco or one thousand milliliters of vapor product for sale 16 where the person importing or causing such tobacco products to be 17 imported has not been appointed a distributor pursuant to section four 18 hundred seventy-two of this chapter, other than a vehicle or other means 19 of transportation used by any person as a common carrier in transaction 20 of business as such common carrier, and such vehicle or other means of 21 transportation shall be subject to forfeiture as hereinafter in this 22 section provided. 23 § 16. This act shall take effect on the one hundred eightieth day 24 after it shall have become a law, and shall apply to vapor products that 25 first become subject to taxation under article 20 of the tax law on or 26 after such date. 27 PART CC 28 Section 1. The tax law is amended by adding a new article 20-C to read 29 as follows: 30 ARTICLE 20-C 31 OPIOID EPIDEMIC SURCHARGE 32 Section 492. Definitions. 33 493. Imposition of surcharge. 34 494. Returns to be secret. 35 § 492. Definitions. When used in this article, the following terms 36 shall have the following meanings: 37 1. "Opioid" shall mean an "opiate" as defined by subdivision twenty- 38 three of section thirty-three hundred two of the public health law, and 39 any natural, synthetic, or semisynthetic "narcotic drug" as defined by 40 subdivision twenty-two of such section, that has agonist, partial agon- 41 ist, or agonist/antagonist morphine-like activities or effects similar 42 to natural opium alkaloids and any derivative, congener, or combination 43 thereof, listed in schedules II-IV of section thirty-three hundred six 44 of the public health law. 45 2. "Unit" shall mean the dosage form of an opioid-containing drug 46 including, but not limited to, tablets, capsules, suppositories, topical 47 (transdermal), buccal or any other dosage form, such as weight or 48 volume. 49 3. "Unit strength" shall mean the amount of opioid in a unit, as meas- 50 ured by weight, volume, concentration or other metric. 51 4. "Morphine milligram equivalent conversion factor" shall mean that 52 reference standard of a particular opioid as it relates in potency to 53 morphine as determined by the commissioner of health.S. 7509 56 A. 9509 1 5. "Morphine milligram equivalent" shall mean a unit multiplied by its 2 unit strength multiplied by the morphine milligram equivalent conversion 3 factor of the opioid contained in such unit. 4 6. "Establishment" shall mean any person, firm, corporation or associ- 5 ation required to be registered with the education department pursuant 6 to section sixty-eight hundred eight or section sixty-eight hundred 7 eight-b of the education law, as well as any person, firm, corporation 8 or association that would be required to be registered with the educa- 9 tion department pursuant to such section sixty-eight hundred eight-b but 10 for the exception in subdivision two of such section. 11 7. "Invoice" shall mean the invoice, sales slip, memorandum of sale, 12 or other document evidencing a sale of an opioid. 13 § 493. Imposition of surcharge. 1. There is hereby imposed a surcharge 14 on the sale of any opioid of two cents per morphine milligram equivalent 15 sold. Such surcharge shall be imposed on the first sale of such opioid 16 in the state, except that such surcharge shall not apply when such sale 17 is to any program operated pursuant to article thirty-two of the mental 18 hygiene law. This surcharge shall be charged against, and be paid by, 19 the establishment making the first sale of such opioid in the state, and 20 shall not be added as a separate charge or line item on any invoice 21 given to the customer or otherwise passed down to the customer. However, 22 an establishment liable for the surcharge imposed by this article shall 23 clearly note on the invoice for the first sale of an opioid in the state 24 its liability for the surcharge, along with its name, address, and 25 taxpayer identification number. All sales of an opioid in this state 26 shall be presumed to be the first sale of such, and shall also be 27 presumed to be subject to the surcharge imposed by this article, unless 28 the contrary is established by the seller. 29 2. Every establishment liable for the surcharge imposed by this arti- 30 cle shall file with the commissioner a return, on forms prescribed by 31 the commissioner, indicating the total morphine milligram equivalent of 32 opioids it sold in the state, the total morphine milligram equivalent of 33 such opioids that are subject to the surcharge imposed by this article, 34 the amount of surcharge due thereon, and such further information as the 35 commissioner may require. Such returns shall be due on or before the 36 twentieth day of each month, and shall cover all opioid sales in the 37 state made in the month prior, except that the first return required to 38 be filed pursuant to this section shall be due on or before January 39 twentieth, two thousand nineteen and shall cover all opioid sales occur- 40 ring in the period between the effective date of this article and Decem- 41 ber thirty-first, two thousand eighteen. Every establishment required 42 to file a return under this section shall, at the time of filing such 43 return, pay to the commissioner the total amount of surcharge due for 44 the period covered by such return. If a return is not filed when due, 45 the surcharge shall be due on the day on which the return is required to 46 be filed. The commissioner may require that the returns and payments 47 required by this article be filed or paid electronically. 48 3. Establishments making sales of opioids in this state shall maintain 49 all invoices pertaining to such sales for six years after the return 50 reporting such sales is filed with the commissioner, unless the commis- 51 sioner provides for a different retention period by rule or regulation. 52 The establishment shall produce such records upon demand by the commis- 53 sioner. 54 4. Whenever the commissioner shall determine that any moneys received 55 under the provisions of this article were paid in error, he or she may 56 cause the same to be refunded, with interest, except that no interestS. 7509 57 A. 9509 1 shall be allowed or paid if the amount thereof would be less than one 2 dollar. Such interest shall be at the overpayment rate set by the 3 commissioner pursuant to subdivision twenty-sixth of section one hundred 4 seventy-one of this chapter, or if no rate is set, at the rate of six 5 percent per annum, from the date when the surcharge, penalty or interest 6 to be refunded was paid to a date preceding the date of the refund check 7 by not more than thirty days. Provided, however, that for the purposes 8 of this subdivision, any surcharge paid before the last day prescribed 9 for its payment shall be deemed to have been paid on such last day. Such 10 moneys received under the provisions of this article that the commis- 11 sioner shall determine were paid in error, may be refunded out of funds 12 in the custody of the comptroller to the credit of such surcharges 13 provided an application therefor is filed with the commissioner within 14 two years from the time the erroneous payment was made. 15 5. The provisions of article twenty-seven of this chapter shall apply 16 to the surcharge imposed by this article in the same manner and with the 17 same force and effect as if the language of such article had been incor- 18 porated in full into this section and had expressly referred to the 19 surcharge imposed by this article, except to the extent that any 20 provision of such article is either inconsistent with a provision of 21 this article or is not relevant to this article. 22 6. (a) The surcharges, interest, and penalties imposed by this article 23 and collected or received by the commissioner shall be deposited daily 24 with such responsible banks, banking houses or trust companies, as may 25 be designated by the state comptroller, to the credit of the opioid 26 prevention, treatment and recovery account established pursuant to 27 section ninety-seven-aaaaa of the state finance law. An account may be 28 established in one or more of such depositories. Such deposits will be 29 kept separate and apart from all other money in the possession of the 30 state comptroller. The state comptroller shall require adequate security 31 from all such depositories. Of the total revenue collected or received 32 under this article, the state comptroller shall retain such amount as 33 the commissioner may determine to be necessary for refunds under this 34 article. The commissioner is authorized and directed to deduct from the 35 amounts it receives under this article, before deposit into the trust 36 accounts designated by the state comptroller, a reasonable amount neces- 37 sary to effectuate refunds of appropriations of the department to reim- 38 burse the department for the costs incurred to administer, collect and 39 distribute the surcharge imposed by this article. 40 (b) On or before the twelfth and twenty-sixth day of each succeeding 41 month, after reserving such amount for such refunds and deducting such 42 amounts for such costs, as provided for in paragraph (a) of this subdi- 43 vision, the commissioner shall certify to the state comptroller the 44 amount of all revenues so received during the prior month because of the 45 surcharges, interest and penalties so imposed. The amount of revenues so 46 certified shall be paid over by the fifteenth and the final business day 47 of each succeeding month from such account into the opioid prevention, 48 treatment and recovery account established pursuant to section ninety- 49 seven-aaaaa of the state finance law. 50 7. The commissioners of education and health shall cooperate with the 51 commissioner in administering this surcharge, including sharing with the 52 commissioner pertinent information about establishments upon the request 53 of the commissioner. 54 § 494. Returns to be secret. 1. Except in accordance with proper judi- 55 cial order or as in this section or otherwise provided by law, it shall 56 be unlawful for the commissioner, any officer or employee of the depart-S. 7509 58 A. 9509 1 ment, or any officer or person who, pursuant to this section, is permit- 2 ted to inspect any return or report or to whom a copy, an abstract or a 3 portion of any return or report is furnished, or to whom any information 4 contained in any return or report is furnished, or any person engaged or 5 retained by such department on an independent contract basis or any 6 person who in any manner may acquire knowledge of the contents of a 7 return or report filed pursuant to this article to divulge or make known 8 in any manner the contents or any other information relating to the 9 business of an establishment contained in any return or report required 10 under this article. The officers charged with the custody of such 11 returns or reports shall not be required to produce any of them or 12 evidence of anything contained in them in any action or proceeding in 13 any court, except on behalf of the state, the state department of 14 health, the state department of education or the commissioner in an 15 action or proceeding under the provisions of this chapter or on behalf 16 of the state or the commissioner in any other action or proceeding 17 involving the collection of a tax due under this chapter to which the 18 state or the commissioner is a party or a claimant or on behalf of any 19 party to any action or proceeding under the provisions of this article, 20 when the returns or the reports or the facts shown thereby are directly 21 involved in such action or proceeding, in any of which events the court 22 may require the production of, and may admit in evidence so much of said 23 returns or reports or of the facts shown thereby as are pertinent to the 24 action or proceeding and no more. Nothing herein shall be construed to 25 prohibit the commissioner, in his or her discretion, from allowing the 26 inspection or delivery of a certified copy of any return or report filed 27 under this article, or from providing any information contained in any 28 such return or report, by or to a duly authorized officer or employee of 29 the state department of health or the state department of education; nor 30 to prohibit the inspection or delivery of a certified copy of any return 31 or report filed under this article, or the provision of any information 32 contained therein, by or to the attorney general or other legal repre- 33 sentatives of the state when an action shall have been recommended or 34 commenced pursuant to this chapter in which such returns or reports or 35 the facts shown thereby are directly involved; nor to prohibit the 36 commissioner from providing or certifying to the division of budget or 37 the comptroller the total number of returns or reports filed under this 38 article in any reporting period and the total collections received ther- 39 efrom; nor to prohibit the inspection of the returns or reports required 40 under this article by the comptroller or duly designated officer or 41 employee of the state department of audit and control, for purposes of 42 the audit of a refund of any surcharge paid by an establishment or other 43 person under this article; nor to prohibit the delivery to an establish- 44 ment, or a duly authorized representative of such establishment, a 45 certified copy of any return or report filed by such establishment 46 pursuant to this article, nor to prohibit the publication of statistics 47 so classified as to prevent the identification of particular returns or 48 reports and the items thereof. 49 2. (a) Any officer or employee of the state who willfully violates the 50 provisions of subdivision one of this section shall be dismissed from 51 office and be incapable of holding any public office in this state for a 52 period of five years thereafter. 53 (b) A violation of this article shall be considered a violation of 54 secrecy provisions under article thirty-seven of this chapter. 55 § 2. Section 1825 of the tax law, as amended by section 20 of part AAA 56 of chapter 59 of the laws of 2017, is amended to read as follows:S. 7509 59 A. 9509 1 § 1825. Violation of secrecy provisions of the tax law.--Any person 2 who violates the provisions of [subdivision (b) of section twenty-one,] 3 subdivision one of section two hundred two, subdivision eight of section 4 two hundred eleven, subdivision (a) of section three hundred fourteen, 5 subdivision one or two of section four hundred thirty-seven, section 6 four hundred eighty-seven, section four hundred ninety-four, subdivision 7 one or two of section five hundred fourteen, subsection (e) of section 8 six hundred ninety-seven, subsection (a) of section nine hundred nine- 9 ty-four, subdivision (a) of section eleven hundred forty-six, section 10 twelve hundred eighty-seven, section twelve hundred ninety-six, subdivi- 11 sion (a) of section fourteen hundred eighteen, subdivision (a) of 12 section fifteen hundred eighteen, subdivision (a) of section fifteen 13 hundred fifty-five of this chapter, and subdivision (e) of section 14 11-1797 of the administrative code of the city of New York shall be 15 guilty of a misdemeanor. 16 § 3. The state finance law is amended by adding a new section 97-aaaaa 17 to read as follows: 18 § 97-aaaaa. Opioid prevention, treatment and recovery account. 1. 19 There is hereby established in the joint custody of the state comp- 20 troller and the commissioner of taxation and finance an account of the 21 miscellaneous special revenue account to be known as the "opioid 22 prevention, treatment and recovery account". 23 2. Moneys in the opioid prevention, treatment and recovery account 24 shall be kept separate and shall not be commingled with any other moneys 25 in the custody of the state comptroller and the commissioner of taxation 26 and finance. 27 3. The opioid prevention, treatment and recovery account shall consist 28 of moneys appropriated for the purpose of such account, moneys trans- 29 ferred to such account pursuant to law, contributions consisting of 30 promises or grants of any money or property of any kind or value, or any 31 other thing of value, including grants or other financial assistance 32 from any agency of government and moneys required by the provisions of 33 this section or any other law to be paid into or credited to this 34 account. The account shall also consist of moneys received from any 35 litigation or enforcement actions initiated against opioid pharmaceu- 36 tical manufacturers, distributors and wholesalers. 37 4. Moneys of the opioid prevention, treatment and recovery account, 38 when allocated, shall be available, subject to the approval of the 39 director of the budget, to support programs operated by the New York 40 state office of alcoholism and substance abuse services or agencies 41 certified, authorized, approved or otherwise funded by the New York 42 state office of alcoholism and substance abuse services to provide 43 opioid treatment, recovery and prevention and education services; and to 44 provide support for the prescription monitoring program registry if 45 established. 46 5. At the request of the budget director, the state comptroller shall 47 transfer moneys to support the costs of opioid treatment, recovery, 48 prevention, education services, and other related programs, from the 49 opioid prevention, treatment and recovery account to any other fund of 50 the state. 51 6. Notwithstanding the provisions of any general or special law, no 52 moneys shall be available from the opioid prevention, treatment and 53 recovery account until a certificate of allocation and a schedule of 54 amounts to be available therefor shall have been issued by the director 55 of the budget, upon the recommendation of the commissioner of the office 56 of alcoholism and substance abuse services, and a copy of such certif-S. 7509 60 A. 9509 1 icate filed with the comptroller, the chairman of the senate finance 2 committee and the chairman of the assembly ways and means committee. 3 Such certificate may be amended from time to time by the director of the 4 budget, upon the recommendation of the commissioner of the office of 5 alcoholism and substance abuse services, and a copy of such amendment 6 shall be filed with the comptroller, the chairman of the senate finance 7 committee and the chairman of the assembly ways and means committee. 8 7. The moneys, when allocated, shall be paid out of the opioid 9 prevention, treatment and recovery account, pursuant to subdivision four 10 of this section, and subject to the approval of the director of the 11 budget, on the audit and warrant of the comptroller on vouchers certi- 12 fied or approved by (a) the commissioner of the office of alcoholism and 13 substance abuse services or his or her designee; or (b) the commissioner 14 of the department of health or his or her designee. 15 § 4. This act shall take effect July 1, 2018. 16 PART DD 17 Section 1. The tax law is amended by adding a new section 1521 to read 18 as follows: 19 § 1521. Healthcare insurance windfall profit fee. (a) In addition to 20 all taxes, surcharges, and fees imposed under this chapter, the insur- 21 ance law, the financial services law, and the public health law, there 22 is hereby imposed for each taxable year beginning after December thir- 23 ty-first, two thousand seventeen, a fourteen percent surcharge on the 24 net underwriting gain from the sale of health insurance written on risks 25 located or resident within this state of every corporation (1) author- 26 ized to transact an insurance business in this state, or (2) that is a 27 health maintenance organization required to obtain a certificate of 28 authority under article forty-four of the public health law. 29 (b) For purposes of this section, the term "health insurance" shall 30 mean comprehensive hospital and medical expense insurance including, 31 without limitation, comprehensive coverage issued by a health mainte- 32 nance organization, disability income insurance, accident insurance, 33 medicare supplement insurance, specified disease insurance, dental 34 insurance, vision insurance, stop-loss insurance, fixed indemnity insur- 35 ance, and hospital indemnity insurance. 36 (c)(1) For each taxable year, the "net underwriting gain from the sale 37 of health insurance written on risks located or resident within this 38 state" shall equal a corporation's gross receipts from the sale of 39 health insurance written on risks located or resident within New York 40 less the corporation's claims and administrative expenses related to the 41 gross receipts. The computation of "gross receipts from the sale of 42 health insurance written on risks located or resident within New York" 43 and "claims and administrative expenses related to gross receipts" shall 44 be made pursuant to the rules set forth in regulations to be promulgated 45 by the superintendent of financial services. 46 (2) For each taxable year, the "net underwriting gain from the opera- 47 tion of a managed care organization business regulated by the department 48 of health" shall equal a corporation's gross receipts from the operation 49 of a managed care organization business regulated by the department of 50 health less the corporation's claims and administrative expenses related 51 to such gross receipts. The computation of "gross receipts from the 52 operation of a managed care organization business regulated by the 53 department of health" and "claims and administrative expenses related toS. 7509 61 A. 9509 1 gross receipts" shall be made pursuant to the rules set forth in regu- 2 lations to be promulgated by the superintendent of financial services. 3 (d) Notwithstanding any law to the contrary, the surcharge imposed by 4 this section shall not be deductible by a corporation in determining its 5 liability for any other tax, surcharge, or fee imposed under any law. 6 (e) Notwithstanding any law to the contrary, the surcharge imposed by 7 this section shall not be considered by any corporation, and shall not 8 be deemed to be an expense, cost, or liability, for purposes of estab- 9 lishing or setting the rate to be charged for any health insurance poli- 10 cy. 11 (f) The surcharge imposed by this section shall be calculated by each 12 corporation on an annual basis without regard to the items of gain or 13 loss from any other period. 14 (g) (1) The superintendent of financial services shall have the power, 15 duty and responsibility to examine returns of a corporation filed with 16 him or her pursuant to this section and, together with any other infor- 17 mation within his or her possession or that may come into his or her 18 possession, to ascertain the correct amount of surcharge imposed under 19 this section of any corporation. For the purpose of ascertaining the 20 correctness of any such surcharge imposed under this section or for the 21 purpose of making an estimate of the surcharge liability under this 22 section of any corporation, the superintendent of financial services 23 shall have the power to examine or cause to have examined by any agent 24 or representative designated by him or her for that purpose, any books, 25 papers, records or memoranda bearing upon the matters required to be 26 included in the return. 27 (2) If the superintendent of financial services ascertains that the 28 amount of surcharge imposed under this section as shown on the return of 29 any corporation is less than the amount of surcharge disclosed by his or 30 her examination, he or she shall propose, in writing, to the commission- 31 er the issuance of a notice of deficiency for the amount due. If a 32 corporation fails to file a return with the superintendent of financial 33 services within the time required for the filing of such return (with 34 regard to any extension of time for the filing thereof), the superinten- 35 dent of financial services shall make an estimate of the amount of 36 surcharge due for the period in respect to which such corporation failed 37 to file the return. The estimate shall be made from any available infor- 38 mation which is in the possession or may come into the possession of the 39 superintendent of financial services and he or she shall propose, in 40 writing, to the commissioner the issuance of a notice of deficiency for 41 the amount of such estimated surcharge. Any proposal pursuant to this 42 paragraph shall set forth the basis thereof and the details of its 43 computation. 44 (3) The commissioner shall, on receipt of a proposal from the super- 45 intendent of financial services pursuant to paragraph two of this subdi- 46 vision, take appropriate action under this chapter for the assessment 47 and collection of the amount of surcharge, together with interest and 48 penalties, shown by such proposal to be due. The superintendent of 49 financial services shall be required to assist the commissioner in 50 defending the correctness of the amount assessed at any conference at 51 the bureau of conciliation and mediation services and at the division of 52 tax appeals. 53 (4) Subject to the consent of the superintendent of financial services 54 and notwithstanding any other provisions of law to the contrary, the 55 commissioner may delegate such other of his or her powers and duties 56 with respect to the administration and collection of the taxes imposedS. 7509 62 A. 9509 1 under this section to the superintendent of financial services, as the 2 commissioner finds necessary in order to facilitate such administration 3 and collection. 4 (5) The superintendent of financial services shall have the authority 5 to issue such rules and regulations that are necessary to implement the 6 provisions of this section. 7 (h) (1) Every corporation subject to the surcharge in subdivision (a) 8 of this section, shall annually, on or before the fifteenth day of the 9 third month following the close of its taxable year, transmit to the 10 superintendent of financial services a return in a form prescribed by 11 the superintendent of financial services setting forth such information 12 as such superintendent may prescribe and every corporation which ceases 13 to be subject to the surcharge imposed by this section shall transmit to 14 the superintendent of financial services a return on the date of such 15 cessation or at such other time as such superintendent may require 16 covering each year or period for which no return was theretofore filed. 17 A copy of each return required under this subdivision shall also be 18 transmitted to the commissioner at or before the times specified for 19 filing such returns with the commissioner. 20 (2) Every corporation shall also transmit such other returns and such 21 facts and information as the superintendent of financial services may 22 require in the administration of this section. 23 (3) The superintendent of financial services may grant a reasonable 24 extension of time for filing returns whenever good cause exists. An 25 automatic extension of four months for the filing of its return shall be 26 allowed any corporation, if within the time prescribed by paragraph one 27 of this subdivision, such corporation files with the superintendent of 28 financial services an application for extension in such form as the 29 superintendent of financial services may prescribe and pays on or before 30 the date of such filing the amount properly estimated as its surcharge. 31 (4) Every return shall have annexed thereto a certification by the 32 president, vice president, treasurer, assistant treasurer, chief 33 accounting officer or any other officer of the corporation duly author- 34 ized so to act to the effect that the statements contained therein are 35 true. The fact that an individual's name is signed on a certification of 36 the return shall be prima facie evidence that such individual is author- 37 ized to sign and certify the return on behalf of the corporation. 38 (5) Each corporation subject to the surcharge in subdivision (a) of 39 this section shall file a separate return for each year such corporation 40 is subject to the surcharge. 41 (6) In case it shall appear to the superintendent of financial 42 services that any agreement, understanding or arrangement exists between 43 the corporation and any other entity, person or firm whereby the activ- 44 ity, business, income or capital of the corporation is improperly or 45 inaccurately reflected, the superintendent of financial services is 46 authorized and empowered in his or her discretion and in such manner as 47 he or she may determine, to adjust items of income, deductions and capi- 48 tal so as equitably to determine the surcharge. Where (A) any corpo- 49 ration conducts its activity or business under any agreement, arrange- 50 ment or understanding in such manner as either directly or indirectly to 51 benefit its members or stockholders, or any of them, or any person or 52 persons directly or indirectly interested in such activity or business, 53 by entering into any transaction at more or less than a fair price 54 which, but for such agreement, arrangement or understanding, might have 55 been paid or received therefor, or (B) any corporation, a substantial 56 portion of whose capital stock is owned either directly or indirectly byS. 7509 63 A. 9509 1 another corporation, enters into any transaction with such other corpo- 2 ration on such terms as to create an improper gain or loss amount, the 3 superintendent of financial services may include in the corporation's 4 gain subject to the surcharge the fair amounts, which, but for such 5 agreement, arrangement or understanding, the corporation might have 6 derived from such transaction. 7 (i) (1) To the extent the surcharge imposed by this section shall not 8 have been previously paid, the surcharge, or the balance thereof, shall 9 be payable to the superintendent of financial services in full at the 10 time the corporation's return is required to be filed. 11 (2) If the corporation, within the time prescribed by subdivision (f) 12 of this section, shall have applied for an automatic extension of time 13 to file its annual return and shall have paid to the superintendent of 14 financial services on or before the date such application is filed an 15 amount properly estimated as provided by said subdivision, the only 16 amount payable in addition to the surcharge shall be interest at the 17 underpayment rate set by the commissioner pursuant to subsection (e) of 18 section one thousand ninety-six of this chapter or, if no rate is set, 19 at the rate of six percent per annum upon the amount by which the 20 surcharge, or portion thereof payable on or before the date the return 21 was required to be filed, exceeds the amount so paid. For the purposes 22 of the preceding sentence: 23 (A) an amount so paid shall be deemed properly estimated if it is 24 either (i) not less than ninety percent of the surcharge as finally 25 determined, or (ii) not less than the surcharge shown on the corpo- 26 ration's return for the preceding taxable year, if such preceding year 27 was a taxable year of twelve months; and 28 (B) the time when a return is required to be filed shall be determined 29 without regard to any extension of time for filing such return. 30 (3) The superintendent of financial services may grant a reasonable 31 extension of time for payment of any surcharge imposed by this section 32 under such conditions as he or she deems just and proper. 33 (j) All surcharges, interest and penalties collected or received by 34 the superintendent of financial services under this section shall be 35 deposited into the health care reform act (HCRA) resources fund pursuant 36 to section ninety-two-dd of the state finance law. 37 (k) The provisions of article twenty-seven of this chapter shall apply 38 to the provisions of this section in the same manner and with the same 39 force and effect as if the language of such article twenty-seven had 40 been incorporated in full into this article and had expressly referred 41 to the surcharge under this section, except to the extent that any such 42 provision is either inconsistent with a provision of this section or is 43 not relevant to this section. The superintendent of financial services 44 shall have the same power and authority that the commissioner has under 45 article twenty-seven of this chapter. 46 § 2. This act shall take effect immediately. 47 PART EE 48 Section 1. Subdivision 1 of Section 208 of the racing, pari-mutuel 49 wagering and breeding law, as amended by chapter 140 of the laws of 50 2008, is amended to read as follows: 51 1. In consideration of the franchise and in accordance with its fran- 52 chise agreement, the franchised corporation shall remit to the state, 53 each year, no later than April fifth, a franchise fee payment. The fran- 54 chise fee shall be calculated and equal to the lesser of paragraph (a)S. 7509 64 A. 9509 1 or (b) of this subdivision as follows: (a) adjusted net income, includ- 2 ing all sources of audited generally accepted accounting principles net 3 income as of December thirty-first (i) plus the amount of depreciation 4 and amortization for such year as set forth on the statement of cash 5 flows (ii) less the amount received by the franchised corporation for 6 capital expenditures and (iii) less principal payments made for the 7 repayment of debt; or (b) operating cash which is defined as cash avail- 8 able on December thirty-first (i) which excludes all restricted cash 9 accounts, segregated accounts as per audited financial statements and 10 cash on hand needed to fund the on-track pari-mutuel operations through 11 the vault, (ii) less [forty-five] ninety days of operating expenses 12 pursuant to generally accepted accounting principles which shall be an 13 average calculated by dividing the current year's annual budget by the 14 number of days in such year and multiplying that number by [forty-five] 15 ninety. 16 § 2. Section 203 of the racing, pari-mutuel wagering and breeding law, 17 as amended by chapter 18 of the laws of 2008, is amended to read as 18 follows: 19 § 203. Right to hold race meetings and races. 1. Any corporation 20 formed under the provisions of this article, if so claimed in its 21 certificate of organization, and if it shall comply with all the 22 provisions of this article, and any other corporation entitled to the 23 benefits and privileges of this article as hereinafter provided, shall 24 have the power and the right to hold one or more running race meetings 25 in each year, and to hold, maintain and conduct running races at such 26 meetings. At such running race meetings the corporation, or the owners 27 of horses engaged in such races, or others who are not participants in 28 the race, may contribute purses, prizes, premiums or stakes to be 29 contested for, but no person or persons other than the owner or owners 30 of a horse or horses contesting in a race shall have any pecuniary 31 interest in a purse, prize, premium or stake contested for in such race, 32 or be entitled to or receive any portion thereof after such race is 33 finished, and the whole of such purse, prize, premium or stake shall be 34 allotted in accordance with the terms and conditions of such race. Races 35 conducted by a franchised corporation shall be permitted only between 36 sunrise and sunset. 37 2. Notwithstanding any other provision of law to the contrary, a fran- 38 chised corporation shall be permitted to conduct races after sunset at 39 the Belmont Park racetrack, only on the main track in its current 40 configuration, only if such races conclude before half past ten o' clock 41 post meridian, and only if such races occur on Thursdays, Fridays or 42 Saturdays. The franchised corporation shall coordinate with a harness 43 racing association or corporation authorized to operate in Westchester 44 county to ensure that the starting times of all such races are stag- 45 gered. 46 3. A track first licensed after January first, nineteen hundred nine- 47 ty, shall not conduct the simulcasting of thoroughbred races within 48 district one, in accordance with article ten of this chapter on days 49 that a franchised corporation is not conducting a race meeting. In no 50 event shall thoroughbred races conducted by a track first licensed after 51 January first, nineteen hundred ninety be conducted after eight o'clock 52 post meridian. 53 § 3. An advisory committee shall be established by the governor 54 comprised of individuals with demonstrated interest in the performance 55 of thoroughbred and standardbred race horses to review the present 56 structure, operations and funding of equine drug testing and researchS. 7509 65 A. 9509 1 conducted pursuant to article nine of the racing, pari-mutuel wagering 2 and breeding law. Recommendations shall be delivered to the temporary 3 president of the Senate, speaker of the Assembly and Governor by Decem- 4 ber 1, 2018 regarding the future of such research, testing and funding. 5 Members of the board shall not be considered policymakers. 6 § 4. This act shall take effect immediately; provided, however, that 7 the amendments to section 203 of the racing, pari-mutuel wagering and 8 breeding law made by section two of this act shall expire and be deemed 9 repealed 4 years after the first night of racing conducted after sunset 10 pursuant to this act; provided that the New York Racing Association 11 shall notify the legislative bill drafting commission of the date of 12 such night of racing in order that the commission may maintain an accu- 13 rate and timely effective data base of the official text of the laws of 14 the state of New York in furtherance of effectuating the provisions of 15 section 44 of the legislative law and section 70-b of the public offi- 16 cers law. 17 PART FF 18 Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel 19 wagering and breeding law is amended by adding a new paragraph h to read 20 as follows: 21 h. An amount as shall be determined by the fund to support and promote 22 the ongoing care of retired horses, provided, however, that the fund 23 shall not be required to make any allocation for such purposes. 24 § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering 25 and breeding law is amended by adding a new paragraph j to read as 26 follows: 27 j. An amount as shall be determined by the fund to support and promote 28 the ongoing care of retired horses, provided, however, that the fund 29 shall not be required to make any allocation for such purposes. 30 § 3. This act shall take effect immediately. 31 PART GG 32 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 33 racing, pari-mutuel wagering and breeding law, as amended by section 1 34 of part OO of chapter 59 of the laws of 2017, is amended to read as 35 follows: 36 (a) Any racing association or corporation or regional off-track 37 betting corporation, authorized to conduct pari-mutuel wagering under 38 this chapter, desiring to display the simulcast of horse races on which 39 pari-mutuel betting shall be permitted in the manner and subject to the 40 conditions provided for in this article may apply to the commission for 41 a license so to do. Applications for licenses shall be in such form as 42 may be prescribed by the commission and shall contain such information 43 or other material or evidence as the commission may require. No license 44 shall be issued by the commission authorizing the simulcast transmission 45 of thoroughbred races from a track located in Suffolk county. The fee 46 for such licenses shall be five hundred dollars per simulcast facility 47 and for account wagering licensees that do not operate either a simul- 48 cast facility that is open to the public within the state of New York or 49 a licensed racetrack within the state, twenty thousand dollars per year 50 payable by the licensee to the commission for deposit into the general 51 fund. Except as provided in this section, the commission shall not 52 approve any application to conduct simulcasting into individual or groupS. 7509 66 A. 9509 1 residences, homes or other areas for the purposes of or in connection 2 with pari-mutuel wagering. The commission may approve simulcasting into 3 residences, homes or other areas to be conducted jointly by one or more 4 regional off-track betting corporations and one or more of the follow- 5 ing: a franchised corporation, thoroughbred racing corporation or a 6 harness racing corporation or association; provided (i) the simulcasting 7 consists only of those races on which pari-mutuel betting is authorized 8 by this chapter at one or more simulcast facilities for each of the 9 contracting off-track betting corporations which shall include wagers 10 made in accordance with section one thousand fifteen, one thousand 11 sixteen and one thousand seventeen of this article; provided further 12 that the contract provisions or other simulcast arrangements for such 13 simulcast facility shall be no less favorable than those in effect on 14 January first, two thousand five; (ii) that each off-track betting 15 corporation having within its geographic boundaries such residences, 16 homes or other areas technically capable of receiving the simulcast 17 signal shall be a contracting party; (iii) the distribution of revenues 18 shall be subject to contractual agreement of the parties except that 19 statutory payments to non-contracting parties, if any, may not be 20 reduced; provided, however, that nothing herein to the contrary shall 21 prevent a track from televising its races on an irregular basis primari- 22 ly for promotional or marketing purposes as found by the commission. For 23 purposes of this paragraph, the provisions of section one thousand thir- 24 teen of this article shall not apply. Any agreement authorizing an 25 in-home simulcasting experiment commencing prior to May fifteenth, nine- 26 teen hundred ninety-five, may, and all its terms, be extended until June 27 thirtieth, two thousand [eighteen] nineteen; provided, however, that any 28 party to such agreement may elect to terminate such agreement upon 29 conveying written notice to all other parties of such agreement at least 30 forty-five days prior to the effective date of the termination, via 31 registered mail. Any party to an agreement receiving such notice of an 32 intent to terminate, may request the commission to mediate between the 33 parties new terms and conditions in a replacement agreement between the 34 parties as will permit continuation of an in-home experiment until June 35 thirtieth, two thousand [eighteen] nineteen; and (iv) no in-home simul- 36 casting in the thoroughbred special betting district shall occur without 37 the approval of the regional thoroughbred track. 38 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 39 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 40 section 2 of part OO of chapter 59 of the laws of 2017, is amended to 41 read as follows: 42 (iii) Of the sums retained by a receiving track located in Westchester 43 county on races received from a franchised corporation, for the period 44 commencing January first, two thousand eight and continuing through June 45 thirtieth, two thousand [eighteen] nineteen, the amount used exclusively 46 for purses to be awarded at races conducted by such receiving track 47 shall be computed as follows: of the sums so retained, two and one-half 48 percent of the total pools. Such amount shall be increased or decreased 49 in the amount of fifty percent of the difference in total commissions 50 determined by comparing the total commissions available after July twen- 51 ty-first, nineteen hundred ninety-five to the total commissions that 52 would have been available to such track prior to July twenty-first, 53 nineteen hundred ninety-five. 54 § 3. The opening paragraph of subdivision 1 of section 1014 of the 55 racing, pari-mutuel wagering and breeding law, as amended by section 3S. 7509 67 A. 9509 1 of part OO of chapter 59 of the laws of 2017, is amended to read as 2 follows: 3 The provisions of this section shall govern the simulcasting of races 4 conducted at thoroughbred tracks located in another state or country on 5 any day during which a franchised corporation is conducting a race meet- 6 ing in Saratoga county at Saratoga thoroughbred racetrack until June 7 thirtieth, two thousand [eighteen] nineteen and on any day regardless of 8 whether or not a franchised corporation is conducting a race meeting in 9 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, 10 two thousand [eighteen] nineteen. On any day on which a franchised 11 corporation has not scheduled a racing program but a thoroughbred racing 12 corporation located within the state is conducting racing, every off- 13 track betting corporation branch office and every simulcasting facility 14 licensed in accordance with section one thousand seven (that have 15 entered into a written agreement with such facility's representative 16 horsemen's organization, as approved by the commission), one thousand 17 eight, or one thousand nine of this article shall be authorized to 18 accept wagers and display the live simulcast signal from thoroughbred 19 tracks located in another state or foreign country subject to the 20 following provisions: 21 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 22 and breeding law, as amended by section 4 of part OO of chapter 59 of 23 the laws of 2017, is amended to read as follows: 24 1. The provisions of this section shall govern the simulcasting of 25 races conducted at harness tracks located in another state or country 26 during the period July first, nineteen hundred ninety-four through June 27 thirtieth, two thousand [eighteen] nineteen. This section shall super- 28 sede all inconsistent provisions of this chapter. 29 § 5. The opening paragraph of subdivision 1 of section 1016 of the 30 racing, pari-mutuel wagering and breeding law, as amended by section 5 31 of part OO of chapter 59 of the laws of 2017, is amended to read as 32 follows: 33 The provisions of this section shall govern the simulcasting of races 34 conducted at thoroughbred tracks located in another state or country on 35 any day during which a franchised corporation is not conducting a race 36 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 37 thirtieth, two thousand [eighteen] nineteen. Every off-track betting 38 corporation branch office and every simulcasting facility licensed in 39 accordance with section one thousand seven that have entered into a 40 written agreement with such facility's representative horsemen's organ- 41 ization as approved by the commission, one thousand eight or one thou- 42 sand nine of this article shall be authorized to accept wagers and 43 display the live full-card simulcast signal of thoroughbred tracks 44 (which may include quarter horse or mixed meetings provided that all 45 such wagering on such races shall be construed to be thoroughbred races) 46 located in another state or foreign country, subject to the following 47 provisions; provided, however, no such written agreement shall be 48 required of a franchised corporation licensed in accordance with section 49 one thousand seven of this article: 50 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 51 wagering and breeding law, as amended by section 6 of part OO of chapter 52 59 of the laws of 2017, is amended to read as follows: 53 Notwithstanding any other provision of this chapter, for the period 54 July twenty-fifth, two thousand one through September eighth, two thou- 55 sand [seventeen] eighteen, when a franchised corporation is conducting a 56 race meeting within the state at Saratoga Race Course, every off-trackS. 7509 68 A. 9509 1 betting corporation branch office and every simulcasting facility 2 licensed in accordance with section one thousand seven (that has entered 3 into a written agreement with such facility's representative horsemen's 4 organization as approved by the commission), one thousand eight or one 5 thousand nine of this article shall be authorized to accept wagers and 6 display the live simulcast signal from thoroughbred tracks located in 7 another state, provided that such facility shall accept wagers on races 8 run at all in-state thoroughbred tracks which are conducting racing 9 programs subject to the following provisions; provided, however, no such 10 written agreement shall be required of a franchised corporation licensed 11 in accordance with section one thousand seven of this article. 12 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 13 racing, pari-mutuel wagering and breeding law and other laws relating to 14 simulcasting, as amended by section 7 of part OO of chapter 59 of the 15 laws of 2017, is amended to read as follows: 16 § 32. This act shall take effect immediately and the pari-mutuel tax 17 reductions in section six of this act shall expire and be deemed 18 repealed on July 1, [2018] 2019; provided, however, that nothing 19 contained herein shall be deemed to affect the application, qualifica- 20 tion, expiration, or repeal of any provision of law amended by any 21 section of this act, and such provisions shall be applied or qualified 22 or shall expire or be deemed repealed in the same manner, to the same 23 extent and on the same date as the case may be as otherwise provided by 24 law; provided further, however, that sections twenty-three and twenty- 25 five of this act shall remain in full force and effect only until May 1, 26 1997 and at such time shall be deemed to be repealed. 27 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 28 racing, pari-mutuel wagering and breeding law and other laws relating to 29 simulcasting and the imposition of certain taxes, as amended by section 30 8 of part OO of chapter 59 of the laws of 2017, is amended to read as 31 follows: 32 § 54. This act shall take effect immediately; provided, however, 33 sections three through twelve of this act shall take effect on January 34 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 35 ing law, as added by section thirty-eight of this act, shall expire and 36 be deemed repealed on July 1, [2018] 2019; and section eighteen of this 37 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 38 two of this act shall take effect as of the same date as chapter 772 of 39 the laws of 1989 took effect. 40 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 41 pari-mutuel wagering and breeding law, as amended by section 9 of part 42 OO of chapter 59 of the laws of 2017, is amended to read as follows: 43 (a) The franchised corporation authorized under this chapter to 44 conduct pari-mutuel betting at a race meeting or races run thereat shall 45 distribute all sums deposited in any pari-mutuel pool to the holders of 46 winning tickets therein, provided such tickets be presented for payment 47 before April first of the year following the year of their purchase, 48 less an amount which shall be established and retained by such fran- 49 chised corporation of between twelve to seventeen per centum of the 50 total deposits in pools resulting from on-track regular bets, and four- 51 teen to twenty-one per centum of the total deposits in pools resulting 52 from on-track multiple bets and fifteen to twenty-five per centum of the 53 total deposits in pools resulting from on-track exotic bets and fifteen 54 to thirty-six per centum of the total deposits in pools resulting from 55 on-track super exotic bets, plus the breaks. The retention rate to be 56 established is subject to the prior approval of the gaming commission.S. 7509 69 A. 9509 1 Such rate may not be changed more than once per calendar quarter to be 2 effective on the first day of the calendar quarter. "Exotic bets" and 3 "multiple bets" shall have the meanings set forth in section five 4 hundred nineteen of this chapter. "Super exotic bets" shall have the 5 meaning set forth in section three hundred one of this chapter. For 6 purposes of this section, a "pick six bet" shall mean a single bet or 7 wager on the outcomes of six races. The breaks are hereby defined as the 8 odd cents over any multiple of five for payoffs greater than one dollar 9 five cents but less than five dollars, over any multiple of ten for 10 payoffs greater than five dollars but less than twenty-five dollars, 11 over any multiple of twenty-five for payoffs greater than twenty-five 12 dollars but less than two hundred fifty dollars, or over any multiple of 13 fifty for payoffs over two hundred fifty dollars. Out of the amount so 14 retained there shall be paid by such franchised corporation to the 15 commissioner of taxation and finance, as a reasonable tax by the state 16 for the privilege of conducting pari-mutuel betting on the races run at 17 the race meetings held by such franchised corporation, the following 18 percentages of the total pool for regular and multiple bets five per 19 centum of regular bets and four per centum of multiple bets plus twenty 20 per centum of the breaks; for exotic wagers seven and one-half per 21 centum plus twenty per centum of the breaks, and for super exotic bets 22 seven and one-half per centum plus fifty per centum of the breaks. For 23 the period June first, nineteen hundred ninety-five through September 24 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be 25 three per centum and such tax on multiple wagers shall be two and one- 26 half per centum, plus twenty per centum of the breaks. For the period 27 September tenth, nineteen hundred ninety-nine through March thirty- 28 first, two thousand one, such tax on all wagers shall be two and six- 29 tenths per centum and for the period April first, two thousand one 30 through December thirty-first, two thousand [eighteen] nineteen, such 31 tax on all wagers shall be one and six-tenths per centum, plus, in each 32 such period, twenty per centum of the breaks. Payment to the New York 33 state thoroughbred breeding and development fund by such franchised 34 corporation shall be one-half of one per centum of total daily on-track 35 pari-mutuel pools resulting from regular, multiple and exotic bets and 36 three per centum of super exotic bets provided, however, that for the 37 period September tenth, nineteen hundred ninety-nine through March thir- 38 ty-first, two thousand one, such payment shall be six-tenths of one per 39 centum of regular, multiple and exotic pools and for the period April 40 first, two thousand one through December thirty-first, two thousand 41 [eighteen] nineteen, such payment shall be seven-tenths of one per 42 centum of such pools. 43 § 10. This act shall take effect immediately. 44 PART HH 45 Section 1. Subdivision 4 of section 97-nnnn of the state finance law 46 is REPEALED. 47 § 2. Subdivisions 5 and 6 of section 97-nnnn of the state finance law 48 are renumbered subdivisions 4 and 5. 49 § 3. This act shall take effect April 1, 2018. 50 PART IIS. 7509 70 A. 9509 1 Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision 2 b of section 1612 of the tax law are REPEALED and a new subparagraph 3 (ii) is added to read as follows: 4 (ii) less a vendor's fee the amount of which is to be paid for serving 5 as a lottery agent to the track operator of a vendor track or the opera- 6 tor of any other video lottery gaming facility authorized pursuant to 7 section sixteen hundred seventeen-a of this article: 8 (A) when a vendor track is located within development zone one as 9 defined by section thirteen hundred ten of the racing, pari-mutuel 10 wagering and breeding law, at a rate of thirty-nine and one-half percent 11 of the total revenue wagered at the vendor track after payout for prizes 12 pursuant to this chapter; 13 (B) when a vendor track is located within development zone two as 14 defined by section thirteen hundred ten of the racing, pari-mutuel 15 wagering and breeding law, at a rate of forty-three and one-half percent 16 of the total revenue wagered at the vendor track after payout for prizes 17 pursuant to this chapter; provided, however, at a vendor track located 18 within fifteen miles of a destination resort gaming facility authorized 19 pursuant to article thirteen of the racing, pari-mutuel wagering and 20 breeding law or that is located more than fifteen miles but within fifty 21 miles of a Native American class III gaming facility as defined in 25 22 U.S.C. § 2703 (8) shall receive a vendor fee at a rate of fifty-one 23 percent of the total revenue wagered at the vendor track after payout 24 for prizes pursuant to this chapter; and that at a vendor track located 25 within fifteen miles of a Native American class III gaming facility as 26 defined in 25 U.S.C. § 2703 (8) shall receive a vendor fee at a rate of 27 fifty-six percent of the total revenue wagered at the vendor track after 28 payout for prizes pursuant to this chapter; 29 (C) when a video lottery facility is operated at Aqueduct racetrack, 30 at a rate of forty-seven percent of the total revenue wagered at the 31 video lottery gaming facility after payout for prizes pursuant to this 32 chapter; provided, however, upon the earlier of the designation of one 33 thousand video lottery devices as hosted pursuant to paragraph four of 34 subdivision a of section sixteen hundred seventeen-a of this article or 35 April first, two thousand nineteen, such rate shall be fifty percent of 36 the total revenue wagered at the video lottery gaming facility after 37 payout for prizes pursuant to this chapter; 38 (D) when a video lottery gaming facility is located in either Nassau 39 or Suffolk counties and is operated by a corporation established pursu- 40 ant to section five hundred two of the racing, pari-mutuel wagering and 41 breeding law, at a rate of forty-five percent of the total revenue 42 wagered at the video lottery gaming facility after payout for prizes 43 pursuant to this chapter; 44 (E) notwithstanding any provision of law to the contrary, when a 45 vendor track is located within region one or two of development zone 46 two, as such zone is defined in section thirteen hundred ten of the 47 racing, pari-mutuel wagering and breeding law, or is located within 48 region six of such development zone two and is located within Ontario 49 county, such vendor track shall be entitled to receive an additional 50 commission. The additional commission received by the vendor track shall 51 be the adjusted commission calculated pursuant to subclause (II) of this 52 clause; provided, however, the additional commission shall not exceed an 53 amount calculated pursuant to subclause (I) of this clause. 54 (I) The maximum additional commission payable for any fiscal year 55 shall be an amount equal to the base vendor fee less the adjusted 56 current vendor fee. The adjusted current vendor fee is calculated as theS. 7509 71 A. 9509 1 vendor fee that the facility would have received during the current 2 fiscal year under the payment schedule established by this paragraph as 3 it existed on March thirty-first, two thousand seventeen. The base 4 vendor fee is calculated as the vendor fee that the facility received 5 during the twelve-month period immediately preceding the opening of a 6 gaming facility in the same region as the vendor track. For the purposes 7 of this calculation, a vendor fee shall exclude any distributions 8 required by paragraph two of this subdivision. For the purposes of this 9 clause, Seneca and Wayne counties shall be deemed to be located within 10 region six of development zone two. 11 (II) The adjusted commission is a percentage of the total revenue 12 wagered at the vendor track after payout for prizes pursuant to this 13 chapter. That percentage is calculated by subtracting the effective tax 14 rate on all gross gaming revenue paid by a gaming facility within the 15 same region as the vendor track from the education percentage. The 16 education percentage is ninety percent less the percentage of the vendor 17 track's vendor fee. For purposes of this clause, Seneca and Wayne coun- 18 ties shall be deemed to be located within region six of development zone 19 two. 20 (III) The additional commission paid pursuant to this subparagraph 21 shall commence with the state fiscal year ending on March thirty-first, 22 two thousand eighteen and shall be paid to a vendor track no later than 23 sixty days after the close of the fiscal year. The additional commission 24 authorized by this clause shall only be applied to revenue wagered at a 25 vendor track while a gaming facility in the same region as that vendor 26 track is open and operating pursuant to an operation certificate issued 27 pursuant to section thirteen hundred thirty-one of the racing, pari-mu- 28 tuel wagering and breeding law. 29 (F) Notwithstanding any provision of law to the contrary, any opera- 30 tors of a vendor track or the operators of any other video lottery 31 gaming facility eligible to receive a capital award as of December thir- 32 ty-first, two thousand seventeen shall deposit from their vendor fee 33 into a segregated account an amount equal to four percent of the first 34 sixty-two million five hundred thousand dollars of revenue wagered at 35 the vendor track after payout for prizes pursuant to this chapter to be 36 used exclusively for capital investments, except for Aqueduct, which 37 shall deposit into a segregated account an amount equal to one percent 38 of all revenue wagered at the video lottery gaming facility after payout 39 for prizes pursuant to this chapter until the earlier of the designation 40 of one thousand video lottery devices as hosted pursuant to paragraph 41 four of subdivision a of section sixteen hundred seventeen-a of this 42 article or April first, two thousand nineteen, when at such time four 43 percent of all revenue wagered at the video lottery gaming facility 44 after payout for prizes pursuant to this chapter shall be deposited into 45 a segregated account for capital investments. Vendor tracks and video 46 lottery gaming facilities shall be permitted to withdraw funds for 47 projects approved by the commission to improve the facilities of the 48 vendor track or video lottery gaming facility which enhance or maintain 49 the video lottery gaming facility including, but not limited to hotels, 50 other lodging facilities, entertainment facilities, retail facilities, 51 dining facilities, events arenas, parking garages and other improvements 52 and amenities customary to a gaming facility, provided, however, the 53 vendor tracks and video lottery gaming facilities shall be permitted to 54 withdraw funds for unreimbursed capital awards approved prior to the 55 effective date of this subparagraph. Any proceeds from the divestiture 56 of any assets acquired through these capital funds or any prior capitalS. 7509 72 A. 9509 1 award must be deposited into this segregated account, provided that if 2 the vendor track or video lottery gaming facility ceases use of such 3 asset for gaming purposes or transfers the asset to a related party, 4 such vendor track or video lottery gaming facility shall deposit an 5 amount equal to the fair market value of that asset into the account. In 6 the event a vendor track or video lottery gaming facility ceases gaming 7 operations, any balance in the account along with an amount equal to the 8 value of all remaining assets acquired through this fund or prior capi- 9 tal awards shall be returned to the state for deposit into the state 10 lottery fund for education aid, except for Aqueduct, which shall return 11 to the state for deposit into the state lottery fund for education aid 12 all amounts in excess of the amount needed to fund a project pursuant to 13 an agreement with the operator to construct an expansion of the facili- 14 ty, hotel, and convention and exhibition space requiring a minimum capi- 15 tal investment of three hundred million dollars and any subsequent 16 amendments to such agreement. The comptroller or his legally authorized 17 representative is authorized to audit any and all expenditures made out 18 of these segregated capital accounts. Notwithstanding the preceding, a 19 vendor track located in Ontario county may withdraw up to two million 20 dollars from this account for the purpose of constructing a turf course 21 at the vendor track. 22 (G) Notwithstanding any provision of law to the contrary, free play 23 allowance credits authorized by the division pursuant to subdivision f 24 of section sixteen hundred seventeen-a of this article shall not be 25 included in the calculation of the total amount wagered on video lottery 26 games, the total amount wagered after payout of prizes, the vendor fees 27 payable to the operators of video lottery gaming facilities, fees paya- 28 ble to the division's video lottery gaming equipment contractors, or 29 racing support payments. 30 (H) Notwithstanding any provision of law to the contrary, the operator 31 of a vendor track or the operator of any other video lottery gaming 32 facility shall fund a marketing and promotion program out of the 33 vendor's fee. Each operator shall submit an annual marketing plan for 34 the review and approval of the commission and any other required docu- 35 ments detailing promotional activities as prescribed by the commission. 36 The commission shall have the right to reject any advertisement or 37 promotion that does not properly represent the mission or interests of 38 the lottery or its programs. 39 (I) Notwithstanding clause (F) of this subparagraph, the commission 40 shall be able to authorize a vendor track located within Oneida county, 41 within fifteen miles of a Native American class III gaming facility, and 42 who has maintained at least ninety percent of full-time equivalent 43 employees as they employed in the year two thousand sixteen, to withdraw 44 funds from the segregated account established in clause (F) of this 45 subparagraph up to an amount equal to four percent of the total revenue 46 wagered at the vendor track after payout for prizes pursuant to this 47 chapter each year, for operations. 48 § 2. This act shall take effect immediately; provided, however, clause 49 (I) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 50 of the tax law as added by section one of this act shall expire and be 51 deemed repealed June 29, 2019. 52 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 53 sion, section or part of this act shall be adjudged by any court of 54 competent jurisdiction to be invalid, such judgment shall not affect, 55 impair, or invalidate the remainder thereof, but shall be confined in 56 its operation to the clause, sentence, paragraph, subdivision, sectionS. 7509 73 A. 9509 1 or part thereof directly involved in the controversy in which such judg- 2 ment shall have been rendered. It is hereby declared to be the intent of 3 the legislature that this act would have been enacted even if such 4 invalid provisions had not been included herein. 5 § 3. This act shall take effect immediately, provided, however, that 6 the applicable effective date of Parts A through II of this act shall be 7 as specifically set forth in the last section of such Parts.
