Bill Text: NY S01509 | 2019-2020 | General Assembly | Amended
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 2019-2020 state fiscal year; relates to the effectiveness of provisions relating to mandatory electronic filing of tax documents (Part A); relates to amending the employee training incentive program (Part B); relates to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C); modifies the adjusted basis for property used to determine whether a manufacturer is a qualified New York manufacturer (Part D); extends the workers with disabilities tax credit program (Part E); includes qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts in a decedent's New York gross estate (Part F); requires marketplace providers to collect sales tax; establishes the New York central business district trust fund (Part G); eliminates the reduced sales and use tax rates with respect to certain gas and electric service (Part H); requires the commissioner of taxation and finance to examine the accuracy of locally stated assessments before determining the tentative equalization rate (Part I); authorizes agreements for assessment review services (Subpart B); relates to the training of assessors and county directors of real property tax services (Subpart C); provides certain notifications electronically (Subpart D); relates to the valuation and taxable status dates of special franchise property (Subpart E); relates to reporting requirements of power plants (Subpart F)(Part J); repeals section 3-d of the general municipal law, relating to certification of compliance with tax levy limit (Part K); creates an employer-provided child care credit (Part L); includes gambling winnings in excess of five thousand dollars in New York source income and requires withholding of taxes of such winnings (Part M); relates to the farm workforce retention credit (Part N); relates to updating tax preparer penalties; relates to the effectiveness of certain transactions and related information and to the voluntary compliance initiative; and repeals certain provisions of the tax law relating to tax preparer penalties (Part O); extends the top personal income tax rate for five years (Part P); extends for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); relates to extending the clean heating fuel credit for three years (Part R); relates to extending provisions relating to standards for electronic tax administration to December 31, 2019 (Part S); eliminates licensing fees for certain cooperative and rural electric corporations (Part T); relates to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); exempts from sales and use tax certain tangible personal property or services (Part V); establishes a recovery tax credit program for certified employers for employing individuals with a substance use disorder in recovery from a substance abuse disorder in part-time and full-time positions in the state (Part W); relates to excluding from entire net income certain contributions to the capital of a corporation (Part X); makes technical changes to provisions of law related to the taxation of certain businesses (Part Z); grants a permanent tax exemption to a property owner whose property includes certain renewable energy systems (Part AA); permits the commission, by resolution, to waive for good cause pre-employment restrictions for certain prospective employees, provided the commission states the reasons for waiving such restrictions in such resolution (Part BB); relates to the appointees to the thoroughbred breeding and development fund (Subpart B); relates to the acquisition of funds for the Harry M. Zweig memorial fund (Subpart C); and relates to the prize payment amounts and revenue distributions of lottery game sales and the use of unclaimed prize funds (Subpart D)(Part DD); relates to commissions paid to the operator of a video lottery facility; authorizes additional commission in certain regions at a rate equal to a percentage of revenue wagered at the vendor track after payout for prizes; permits certain funds to be used for capital investments (Part EE); permits certain deductions of promotional credits by gaming facilities (Part FF); amends the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); extends provisions relating to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distribution of wagers (Part HH); relates to the date of delivery of recommendations from the advisory committee relating to the structure, operations and funding of equine drug testing and research, and the removal of equine lab testing provider restrictions (Part JJ); sets limits on the determination of STAR tax savings (Part LL); relates to cooperative housing corporation information returns (Part MM); relates to making a technical correction to the enhanced real property tax circuit breaker credit (Part NN); relates to mobile home reporting requirements to the commissioner of taxation and finance (Part OO); provides for annual verification of enhanced STAR exemption eligibility (Part PP); authorizes the disclosure of certain information to assessors (Part QQ); imposes an income limit for STAR benefits for properties with a parcel affiliated income of no greater than two hundred fifty thousand dollars (Part RR); clarifies certain notices on school tax bills (Part SS); makes the STAR program more accessible to taxpayers (Part TT); imposes a supplemental tax on vapor products; requires a certificate of registration in order to sell vapor products; and adds revenue from the supplement tax on vapor products to the healthcare reform act resource fund (Part UU); imposes a special tax on passenger care rentals outside of the metropolitan commuter transportation district (Part WW); imposes a tax on opioids; relates to the applicability of the opioid stewardship act (Part XX); relates to the definition of covered employee for purposes of employer compensation expenses (Part YY); allows the New York Jockey Injury Compensation Fund, Inc. to use up to two million dollars to pay for annual costs in two thousand nineteen (Part ZZ); modifies the empire state commercial production credit (Part AAA); relates to the taxation of trusts and estates (Part BBB); exempts certain items of food and drink when sold from certain vending machines from the sales and compensating use tax; raises the maximum allowable amount when such items are purchased from vending machines that accept any payment other than coin or currency, whether or not it also accepts coin and currency (Part CCC); relates to disclosure on a bill, memorandum, receipt or other state of the price, amusement charge or rent paid or payable and the collection of such taxes (Part DDD); relates to enforcement of delinquent tax liabilities by means of suspension of drivers' licenses (Part EEE); exempts tangible personal property that becomes a component part of a monument (Part FFF); makes a chapter amendment to subpart K of part II of the state public protection and general government budget for the 2019-2020 state fiscal year; relates to the arrest or booking photographs of an individual (Part GGG); increases the number of correctional facilities which the governor is authorized to close (Part HHH); relates to limousine safety; increases fees for safety requirement violations; authorizes the commissioner of motor vehicles to direct any police officer to secure possession of the number plates of any vehicle which fails to meet certain safety requirements and return such plates to the commissioner of motor vehicles; provides that where the operation of any motor vehicle while under suspension results in the serious physical injury or death of any driver, passenger or pedestrian, such operation shall constitute a class E felony; makes it a misdemeanor to knowingly remove or alter a federal motor vehicle safety standard certification label; provides that the commissioner of motor vehicles shall not register any altered motor vehicle that fails to comply with certain certification requirements established by Part 567 of the code of federal regulations; requires the mandatory reporting by inspectors at an official inspection station of motor vehicles which have been altered to add seating beyond that provided by the original manufacturer; prohibits any "stretch limousine" having seating for ten or more passengers including the driver, to make a U turn on any public highway or private road open to public motor vehicle traffic; makes related provisions (Part III); relates to the issuance of securing orders and makes conforming changes related thereto; defines release under non-monetary conditions; relates to electronic monitoring; requires a rehearing after five days in custody for certain principals (Part JJJ); relates to time limits for a speedy trial; increases requirements for courts and the prosecution regarding the prosecution's readiness for trial (Part KKK); establishes new criminal discovery rules (Part LLL); provides that certain resentencing by operation of law shall be without prejudice to individuals who seek further relief, and modifies grounds for a motion to vacate judgment (Part MMM); relates to making the tax cap permanent on school district and local government tax levies (Part NNN); relates to real estate transfer taxes (Part OOO); relates to base level grants for per capita state aid for the support of local government (Part PPP); relates to amending provisions directing a study relating to staffing enhancement and patient safety (Part QQQ); grants the commissioner of transportation the authority to enter into agreements with fiber optic utilities for use and occupancy of the state right of way and provides for the repeal of such provisions upon expiration thereof (Part RRR); extends the empire state film production credit and empire state film post production credit to additional years (Part SSS); provides for the administration of certain funds and accounts related to the 2019-20 budget, authorizing certain payments and transfers; relates to reductions in enacted appropriations; relates to the issuance of certain bonds or notes; relates to the mental hygiene facilities improvement fund income account; and relates to the mental health services fund; and provides for the repeal of certain provisions upon expiration thereof (Part TTT); relates to the findings and determinations made by the compensation committee (Part UUU); relates to the powers of the members of the commission on judicial and executive compensation (Part VVV); extends the effectiveness of provisions under the infrastructure investment act, and extends the effectiveness of provisions under the transformational economic development infrastructure and revitalization projects act (Part WWW); establishes a public campaign financing and election commission to examine, evaluate and make recommendations for new laws with respect to how the state should implement a system of public campaign financing for state legislative and statewide public offices (Part XXX); relates to contracts for excellence and the apportionment of public moneys; relates to universal prekindergarten aid; authorizes boards of education to enter into piggyback contracts, supplemental basic tuition for charter schools, supplemental public excess cost aid; relates to universal pre-kindergarten school bus transportation; relates to academic enhancement aid, high tax aid, state aid adjustments; relates to moneys apportioned, when and how payable, the teachers of tomorrow teacher recruitment and retention program, class sizes for special classes containing certain students with disabilities; relates to waivers from duties; relates to annual teacher and principal evaluations; amends chapter 756 of the laws of 1992, relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursements for the 2019-2020 school year; amends chapter 756 of the laws of 1992, relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to withholding a portion of employment preparation education aid and in relation to the effectiveness thereof; relates to employment preparation education programs; amends chapter 82 of the laws of 1995, amending the education law and certain other laws relating to state aid to school districts and the appropriation of funds for the support of government, in relation to the effectiveness thereof; amends chapter 147 of the laws of 2001, amending the education law relating to conditional appointment of school district, charter school or BOCES employees, in relation to the effectiveness thereof; amends chapter 425 of the laws of 2002, amending the education law relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school, in relation to the effectiveness thereof; amends chapter 101 of the laws of 2003, amending the education law relating to implementation of the No Child Left Behind Act of 2001, in relation to the effectiveness thereof; amends chapter 91 of the laws of 2002, amending the education law and other laws relating to reorganization of the New York city school construction authority, board of education and community boards, in relation to the effectiveness thereof; amends the education law, in relation to candidates for community superintendent and establishing a task force on community district education councils; amends chapter 345 of the laws of 2009 amending the education law and other laws relating to the New York city board of education, chancellor, community councils, and community superintendents, in relation to the effectiveness thereof; extends provisions relating to contracts for the transportation of school children; extends provisions relating to census reporting; relates to school bus driver training, special apportionment for salary expenses and public pension accruals, to the city school district of the city of Rochester, total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2019-2020 school year; relates to the support of public libraries; relates to project costs for buildings of public libraries located in economically distressed communities; extends provisions relating to the public library grant program; amends chapter 121 of the laws of 1996 relating to authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to the max apportionment for salary expenses; extends provisions relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions relating to BOCES intermediate districts; relates to building condition surveys; relates to building aid for testing and filtering of potable water systems for lead contamination; relates to building aid for periodic inspections of public school buildings; relates to retirement contribution reserve funds; and repeals certain provisions of the education law and a chapter of the laws of 2019 amending the education law relating to teacher evaluations (Part YYY); establishes a central business district tolling program in the city of New York; establishes the central business district tolling lockbox fund; and relates to the confidentiality of certain public records (Subpart A); allows the assignment, transfer, sharing or consolidating of powers, functions or activities of the metropolitan transportation authority; establishes an independent forensic audit and the major construction review unit (Subpart B); relates to various procurement processes of the metropolitan transportation authority including the resolution process for contracts (Subpart C); relates to implementing transit performance metrics (Subpart D); relates to submission of a twenty-year capital needs assessment (Subpart E); relates to a central business district toll credit (Subpart F)(Part ZZZ); and relates to voting by members of the New York state public authorities control board (Part AAAA).
Spectrum: Committee Bill
Status: (Passed) 2019-04-12 - SIGNED CHAP.59 [S01509 Detail]
Download: New_York-2019-S01509-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2019-2020 state fiscal year; relates to the effectiveness of provisions relating to mandatory electronic filing of tax documents (Part A); relates to amending the employee training incentive program (Part B); relates to including in the apportionment fraction receipts constituting net global intangible low-taxed income (Part C); modifies the adjusted basis for property used to determine whether a manufacturer is a qualified New York manufacturer (Part D); extends the workers with disabilities tax credit program (Part E); includes qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts in a decedent's New York gross estate (Part F); requires marketplace providers to collect sales tax; establishes the New York central business district trust fund (Part G); eliminates the reduced sales and use tax rates with respect to certain gas and electric service (Part H); requires the commissioner of taxation and finance to examine the accuracy of locally stated assessments before determining the tentative equalization rate (Part I); authorizes agreements for assessment review services (Subpart B); relates to the training of assessors and county directors of real property tax services (Subpart C); provides certain notifications electronically (Subpart D); relates to the valuation and taxable status dates of special franchise property (Subpart E); relates to reporting requirements of power plants (Subpart F)(Part J); repeals section 3-d of the general municipal law, relating to certification of compliance with tax levy limit (Part K); creates an employer-provided child care credit (Part L); includes gambling winnings in excess of five thousand dollars in New York source income and requires withholding of taxes of such winnings (Part M); relates to the farm workforce retention credit (Part N); relates to updating tax preparer penalties; relates to the effectiveness of certain transactions and related information and to the voluntary compliance initiative; and repeals certain provisions of the tax law relating to tax preparer penalties (Part O); extends the top personal income tax rate for five years (Part P); extends for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); relates to extending the clean heating fuel credit for three years (Part R); relates to extending provisions relating to standards for electronic tax administration to December 31, 2019 (Part S); eliminates licensing fees for certain cooperative and rural electric corporations (Part T); relates to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); exempts from sales and use tax certain tangible personal property or services (Part V); establishes a recovery tax credit program for certified employers for employing individuals with a substance use disorder in recovery from a substance abuse disorder in part-time and full-time positions in the state (Part W); relates to excluding from entire net income certain contributions to the capital of a corporation (Part X); makes technical changes to provisions of law related to the taxation of certain businesses (Part Z); grants a permanent tax exemption to a property owner whose property includes certain renewable energy systems (Part AA); permits the commission, by resolution, to waive for good cause pre-employment restrictions for certain prospective employees, provided the commission states the reasons for waiving such restrictions in such resolution (Part BB); relates to the appointees to the thoroughbred breeding and development fund (Subpart B); relates to the acquisition of funds for the Harry M. Zweig memorial fund (Subpart C); and relates to the prize payment amounts and revenue distributions of lottery game sales and the use of unclaimed prize funds (Subpart D)(Part DD); relates to commissions paid to the operator of a video lottery facility; authorizes additional commission in certain regions at a rate equal to a percentage of revenue wagered at the vendor track after payout for prizes; permits certain funds to be used for capital investments (Part EE); permits certain deductions of promotional credits by gaming facilities (Part FF); amends the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); extends provisions relating to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distribution of wagers (Part HH); relates to the date of delivery of recommendations from the advisory committee relating to the structure, operations and funding of equine drug testing and research, and the removal of equine lab testing provider restrictions (Part JJ); sets limits on the determination of STAR tax savings (Part LL); relates to cooperative housing corporation information returns (Part MM); relates to making a technical correction to the enhanced real property tax circuit breaker credit (Part NN); relates to mobile home reporting requirements to the commissioner of taxation and finance (Part OO); provides for annual verification of enhanced STAR exemption eligibility (Part PP); authorizes the disclosure of certain information to assessors (Part QQ); imposes an income limit for STAR benefits for properties with a parcel affiliated income of no greater than two hundred fifty thousand dollars (Part RR); clarifies certain notices on school tax bills (Part SS); makes the STAR program more accessible to taxpayers (Part TT); imposes a supplemental tax on vapor products; requires a certificate of registration in order to sell vapor products; and adds revenue from the supplement tax on vapor products to the healthcare reform act resource fund (Part UU); imposes a special tax on passenger care rentals outside of the metropolitan commuter transportation district (Part WW); imposes a tax on opioids; relates to the applicability of the opioid stewardship act (Part XX); relates to the definition of covered employee for purposes of employer compensation expenses (Part YY); allows the New York Jockey Injury Compensation Fund, Inc. to use up to two million dollars to pay for annual costs in two thousand nineteen (Part ZZ); modifies the empire state commercial production credit (Part AAA); relates to the taxation of trusts and estates (Part BBB); exempts certain items of food and drink when sold from certain vending machines from the sales and compensating use tax; raises the maximum allowable amount when such items are purchased from vending machines that accept any payment other than coin or currency, whether or not it also accepts coin and currency (Part CCC); relates to disclosure on a bill, memorandum, receipt or other state of the price, amusement charge or rent paid or payable and the collection of such taxes (Part DDD); relates to enforcement of delinquent tax liabilities by means of suspension of drivers' licenses (Part EEE); exempts tangible personal property that becomes a component part of a monument (Part FFF); makes a chapter amendment to subpart K of part II of the state public protection and general government budget for the 2019-2020 state fiscal year; relates to the arrest or booking photographs of an individual (Part GGG); increases the number of correctional facilities which the governor is authorized to close (Part HHH); relates to limousine safety; increases fees for safety requirement violations; authorizes the commissioner of motor vehicles to direct any police officer to secure possession of the number plates of any vehicle which fails to meet certain safety requirements and return such plates to the commissioner of motor vehicles; provides that where the operation of any motor vehicle while under suspension results in the serious physical injury or death of any driver, passenger or pedestrian, such operation shall constitute a class E felony; makes it a misdemeanor to knowingly remove or alter a federal motor vehicle safety standard certification label; provides that the commissioner of motor vehicles shall not register any altered motor vehicle that fails to comply with certain certification requirements established by Part 567 of the code of federal regulations; requires the mandatory reporting by inspectors at an official inspection station of motor vehicles which have been altered to add seating beyond that provided by the original manufacturer; prohibits any "stretch limousine" having seating for ten or more passengers including the driver, to make a U turn on any public highway or private road open to public motor vehicle traffic; makes related provisions (Part III); relates to the issuance of securing orders and makes conforming changes related thereto; defines release under non-monetary conditions; relates to electronic monitoring; requires a rehearing after five days in custody for certain principals (Part JJJ); relates to time limits for a speedy trial; increases requirements for courts and the prosecution regarding the prosecution's readiness for trial (Part KKK); establishes new criminal discovery rules (Part LLL); provides that certain resentencing by operation of law shall be without prejudice to individuals who seek further relief, and modifies grounds for a motion to vacate judgment (Part MMM); relates to making the tax cap permanent on school district and local government tax levies (Part NNN); relates to real estate transfer taxes (Part OOO); relates to base level grants for per capita state aid for the support of local government (Part PPP); relates to amending provisions directing a study relating to staffing enhancement and patient safety (Part QQQ); grants the commissioner of transportation the authority to enter into agreements with fiber optic utilities for use and occupancy of the state right of way and provides for the repeal of such provisions upon expiration thereof (Part RRR); extends the empire state film production credit and empire state film post production credit to additional years (Part SSS); provides for the administration of certain funds and accounts related to the 2019-20 budget, authorizing certain payments and transfers; relates to reductions in enacted appropriations; relates to the issuance of certain bonds or notes; relates to the mental hygiene facilities improvement fund income account; and relates to the mental health services fund; and provides for the repeal of certain provisions upon expiration thereof (Part TTT); relates to the findings and determinations made by the compensation committee (Part UUU); relates to the powers of the members of the commission on judicial and executive compensation (Part VVV); extends the effectiveness of provisions under the infrastructure investment act, and extends the effectiveness of provisions under the transformational economic development infrastructure and revitalization projects act (Part WWW); establishes a public campaign financing and election commission to examine, evaluate and make recommendations for new laws with respect to how the state should implement a system of public campaign financing for state legislative and statewide public offices (Part XXX); relates to contracts for excellence and the apportionment of public moneys; relates to universal prekindergarten aid; authorizes boards of education to enter into piggyback contracts, supplemental basic tuition for charter schools, supplemental public excess cost aid; relates to universal pre-kindergarten school bus transportation; relates to academic enhancement aid, high tax aid, state aid adjustments; relates to moneys apportioned, when and how payable, the teachers of tomorrow teacher recruitment and retention program, class sizes for special classes containing certain students with disabilities; relates to waivers from duties; relates to annual teacher and principal evaluations; amends chapter 756 of the laws of 1992, relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursements for the 2019-2020 school year; amends chapter 756 of the laws of 1992, relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to withholding a portion of employment preparation education aid and in relation to the effectiveness thereof; relates to employment preparation education programs; amends chapter 82 of the laws of 1995, amending the education law and certain other laws relating to state aid to school districts and the appropriation of funds for the support of government, in relation to the effectiveness thereof; amends chapter 147 of the laws of 2001, amending the education law relating to conditional appointment of school district, charter school or BOCES employees, in relation to the effectiveness thereof; amends chapter 425 of the laws of 2002, amending the education law relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school, in relation to the effectiveness thereof; amends chapter 101 of the laws of 2003, amending the education law relating to implementation of the No Child Left Behind Act of 2001, in relation to the effectiveness thereof; amends chapter 91 of the laws of 2002, amending the education law and other laws relating to reorganization of the New York city school construction authority, board of education and community boards, in relation to the effectiveness thereof; amends the education law, in relation to candidates for community superintendent and establishing a task force on community district education councils; amends chapter 345 of the laws of 2009 amending the education law and other laws relating to the New York city board of education, chancellor, community councils, and community superintendents, in relation to the effectiveness thereof; extends provisions relating to contracts for the transportation of school children; extends provisions relating to census reporting; relates to school bus driver training, special apportionment for salary expenses and public pension accruals, to the city school district of the city of Rochester, total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2019-2020 school year; relates to the support of public libraries; relates to project costs for buildings of public libraries located in economically distressed communities; extends provisions relating to the public library grant program; amends chapter 121 of the laws of 1996 relating to authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to the max apportionment for salary expenses; extends provisions relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district; relates to the effectiveness of provisions relating to BOCES intermediate districts; relates to building condition surveys; relates to building aid for testing and filtering of potable water systems for lead contamination; relates to building aid for periodic inspections of public school buildings; relates to retirement contribution reserve funds; and repeals certain provisions of the education law and a chapter of the laws of 2019 amending the education law relating to teacher evaluations (Part YYY); establishes a central business district tolling program in the city of New York; establishes the central business district tolling lockbox fund; and relates to the confidentiality of certain public records (Subpart A); allows the assignment, transfer, sharing or consolidating of powers, functions or activities of the metropolitan transportation authority; establishes an independent forensic audit and the major construction review unit (Subpart B); relates to various procurement processes of the metropolitan transportation authority including the resolution process for contracts (Subpart C); relates to implementing transit performance metrics (Subpart D); relates to submission of a twenty-year capital needs assessment (Subpart E); relates to a central business district toll credit (Subpart F)(Part ZZZ); and relates to voting by members of the New York state public authorities control board (Part AAAA).
Spectrum: Committee Bill
Status: (Passed) 2019-04-12 - SIGNED CHAP.59 [S01509 Detail]
Download: New_York-2019-S01509-Amended.html
STATE OF NEW YORK ________________________________________________________________________ S. 1509--A A. 2009--A SENATE - ASSEMBLY January 18, 2019 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend part U of chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing stand- ards for electronic tax administration, in relation to making perma- nent provisions relating to mandatory electronic filing of tax docu- ments; and repealing certain provisions of the tax law and the administrative code of the city of New York relating thereto (Part A); to amend the economic development law, in relation to the employee training incentive program (Part B); to amend the tax law and the administrative code of the city of New York, in relation to including in the apportionment fraction receipts constituting net global intan- gible low-taxed income (Part C); to amend the tax law and the adminis- trative code of the city of New York, in relation to the adjusted basis for property used to determine whether a manufacturer is a qual- ified New York manufacturer (Part D); to amend part MM of chapter 59 of the laws of 2014 amending the labor law and the tax law relating to the creation of the workers with disabilities tax credit program, in relation to extending the effectiveness thereof (Part E); to amend the tax law in relation to the inclusion in a decedent's New York gross estate any qualified terminable interest property for which a prior deduction was allowed and certain pre-death gifts (Part F); to amend the tax law, in relation to requiring marketplace providers to collect sales tax (Part G); to amend the tax law, in relation to eliminating the reduced tax rates under the sales and use tax with respect to certain gas and electric service; and to repeal certain provisions of the tax law and the administrative code of the city of New York related thereto (Part H); to amend the real property tax law, in relation to the determination and use of state equalization rates EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-02-9S. 1509--A 2 A. 2009--A (Part I); to amend the real property tax law and local finance law, in relation to local option disaster assessment relief (Subpart A); to amend the real property tax law, in relation to authorizing agreements for assessment review services (Subpart B); to amend the real property tax law, in relation to the training of assessors and county directors of real property tax services (Subpart C); to amend the real property tax law, in relation to providing certain notifications electronically (Subpart D); to amend the real property tax law, in relation to the valuation and taxable status dates of special franchise property (Subpart E); and to amend the real property tax law, in relation to the reporting requirements of power plants (Subpart F) (Part J); to repeal section 3-d of the general municipal law, relating to certif- ication of compliance with tax levy limit (Part K); to amend the tax law, in relation to creating an employer-provided child care credit (Part L); to amend the tax law, in relation to including gambling winnings in New York source income and requiring withholding thereon (Part M); to amend the tax law, in relation to the farm workforce retention credit (Part N); to amend the tax law, in relation to updat- ing tax preparer penalties; to amend part N of chapter 61 of the laws of 2005, amending the tax law relating to certain transactions and related information and relating to the voluntary compliance initi- ative, in relation to eliminating the expiration thereof; and to repeal certain provisions of the tax law, relating to tax preparer penalties (Part O); to amend the tax law, in relation to extending the top personal income tax rate for five years (Part P); to amend the tax law and the administrative code of the city of New York, in relation to extending for five years the limitations on itemized deductions for individuals with incomes over one million dollars (Part Q); to amend the tax law, in relation to extending the clean heating fuel credit for three years (Part R); to repeal subdivision (e) of section 23 of part U of chapter 61 of the laws of 2011 amending the real property tax law and other laws relating to establishing standards for elec- tronic tax administration (Part S); to amend the cooperative corpo- rations law and the rural electric cooperative law, in relation to eliminating certain license fees (Part T); to amend the tax law, in relation to a credit for the rehabilitation of historic properties for state owned property leased to private entities (Part U); to amend the tax law, in relation to exempting from sales and use tax certain tangible personal property or services (Part V); to amend the mental hygiene law and the tax law, in relation to the creation and adminis- tration of a tax credit for employment of eligible individuals in recovery from a substance use disorder (Part W); to amend the tax law and the administrative code of the city of New York, in relation to excluding from entire net income certain contributions to the capital of a corporation (Part X); to amend the tax law, in relation to estab- lishing a conditional tax on carried interest (Part Y); to amend the tax law, the administrative code of the city of New York, and chapter 369 of the laws of 2018 amending the tax law relating to unrelated business taxable income of a taxpayer, in relation to making technical corrections thereto (Part Z); to amend the real property tax law, in relation to tax exemptions for energy systems (Part AA); to amend the racing, pari-mutuel wagering and breeding law, in relation to employ- ees of the state gaming commission (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the thoroughbred and standardbred breeding funds (Part CC); to amend the racing, pari- mutuel wagering and breeding law, in relation to the office of theS. 1509--A 3 A. 2009--A gaming inspector general; and to repeal title 9 of article 13 of the racing, pari-mutuel wagering and breeding law relating to the gaming inspector general (Subpart A); to amend the racing, pari-mutuel wager- ing and breeding law, in relation to appointees to the thoroughbred breeding and development fund (Subpart B); to amend the public offi- cers law and the racing, pari-mutuel wagering and breeding law, in relation to the Harry M. Zweig memorial fund (Subpart C); and to amend the tax law, in relation to the prize payment amounts and revenue distributions of lottery game sales, and use of unclaimed prize funds (Subpart D)(Part DD); 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 EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to the deductibility of promotional credits (Part FF); to amend the racing, pari-mutuel wagering and breeding law, in relation to the operations of off-track betting corporations (Part GG); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of- state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part HH); to amend the racing, pari-mutuel wagering and breeding law, in relation to equine drug testing standards (Part II); to amend part EE of chap- ter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment estab- lishing an advisory committee to review the structure, operations and funding of equine drug testing and research, in relation to the date of delivery for recommendations; and to amend the racing, pari-mutuel wagering and breeding law, in relation to the advisory committee on equine drug testing, and equine lab testing provider restrictions removal (Part JJ); to amend the racing, pari-mutuel wagering and breeding law, in relation to state gaming commission occupational licenses (Part KK); to amend the real property tax law and the tax law, in relation to the determination of STAR tax savings (Part LL); to amend the tax law, in relation to cooperative housing corporation information returns (Part MM); to amend the tax law, in relation to making a technical correction to the enhanced real property tax circuit breaker credit (Part NN); to amend the tax law, in relation to mobile home reporting requirements (Part OO); to amend the real prop- erty tax law and the tax law, in relation to eligibility for STAR exemptions and credits (Part PP); to amend the real property tax law and the tax law, in relation to authorizing the disclosure of certain information to assessors (Part QQ); to amend the real property tax law and the tax law, in relation to the income limits for STAR benefits (Part RR); to amend the real property tax law, in relation to clarify- ing certain notices on school tax bills (Part SS); to amend the real property tax law and the tax law, in relation to making the STAR program more accessible to taxpayers (Part TT); to amend the public health law, in relation to increasing the purchasing age for tobaccoS. 1509--A 4 A. 2009--A products and electronic cigarettes from eighteen to twenty-one; prohibiting sales of tobacco products and electronic cigarettes in all pharmacies; prohibiting the acceptance of price reduction instruments for both tobacco products and electronic cigarettes; prohibiting the display of tobacco products or electronic cigarettes in stores; clari- fying that the department of health has the authority to promulgate regulations that restrict the sale or distribution of electronic ciga- rettes or electronic liquids that have a characterizing flavor, and the use of names for characterizing flavors; prohibiting smoking inside and on the grounds of all hospitals licensed or operated by the office of mental health; taxing electronic liquid; and requiring that electronic cigarettes be sold only through licensed vapor products retailers; to amend the general business law, in relation to the pack- aging of vapor products; to amend the tax law, in relation to imposing a supplemental tax on vapor products; to amend the state finance law, in relation to adding revenues from the supplemental tax on vapor products to the health care reform act resource fund; and repealing paragraph (e) of subdivison 1 of section 1399-cc of the public health law relating to the definitions of nicotine, electronic liquid and e-liquid (Part UU); relating to constituting a new chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons authorized to cultivate, process, distribute and sell cannabis and the use of cannabis by persons aged twenty-one or older; to amend the public health law, in relation to the description of cannabis; to amend the vehicle and traffic law, in relation to making technical changes regarding the definition of cannabis; to amend the penal law, in relation to the qualification of certain offenses involving canna- bis and to exempt certain persons from prosecution for the use, consumption, display, production or distribution of cannabis; to amend the tax law, in relation to providing for the levying taxes on canna- bis; to amend the criminal procedure law, the civil practice law and rules, the general business law, the state finance law, the executive law, the penal law and the vehicle and traffic law, in relation to making conforming changes; to repeal sections 221.10 and 221.30 of the penal law relating to the criminal possession and sale of cannabis; to amend chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal para- graph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; and making an appropriation therefor (Part VV); to amend the tax law, in relation to imposing a special tax on passenger car rentals outside of the metropolitan commuter transportation district (Part WW); and to amend the tax law in relation to imposing a tax on Opioids (Part XX) 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 2019-2020 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through XX. The effective date for each particularS. 1509--A 5 A. 2009--A 1 provision contained within such Part is set forth in the last section of 2 such Part. Any provision in any section contained within a Part, 3 including the effective date of the Part, which makes reference to a 4 section "of this act", when used in connection with that particular 5 component, shall be deemed to mean and refer to the corresponding 6 section of the Part in which it is found. Section three of this act sets 7 forth the general effective date of this act. 8 PART A 9 Section 1. Paragraph 10 of subsection (g) of section 658 of the tax 10 law is REPEALED. 11 § 2. Paragraph 10 of subdivision (g) of section 11-1758 of the admin- 12 istrative code of the city of New York is REPEALED. 13 § 3. Paragraph 5 of subsection (u) of section 685 of the tax law is 14 REPEALED. 15 § 4. Paragraph 5 of subdivision (t) of section 11-1785 of the adminis- 16 trative code of the city of New York is REPEALED. 17 § 5. Section 23 of part U of chapter 61 of the laws of 2011, amending 18 the real property tax law and other laws relating to establishing stand- 19 ards for electronic tax administration, as amended by section 5 of part 20 G of chapter 60 of the laws of 2016, is amended to read as follows: 21 § 23. This act shall take effect immediately; provided, however, that: 22 (a) the amendments to section 29 of the tax law made by section thir- 23 teen of this act shall apply to tax documents filed or required to be 24 filed on or after the sixtieth day after which this act shall have 25 become a law [and shall expire and be deemed repealed December 31,262019], provided however that the amendments to paragraph 4 of subdivi- 27 sion (a) of section 29 of the tax law and paragraph 2 of subdivision (e) 28 of section 29 of the tax law made by section thirteen of this act with 29 regard to individual taxpayers shall take effect September 15, 2011 but 30 only if the commissioner of taxation and finance has reported in the 31 report required by section seventeen-b of this act that the percentage 32 of individual taxpayers electronically filing their 2010 income tax 33 returns is less than eighty-five percent; provided that the commissioner 34 of taxation and finance shall notify the legislative bill drafting 35 commission of the date of the issuance of such report in order that the 36 commission may maintain an accurate and timely effective data base of 37 the official text of the laws of the state of New York in furtherance of 38 effectuating the provisions of section 44 of the legislative law and 39 section 70-b of the public officers law; 40 (b) sections fourteen, fifteen, sixteen and seventeen of this act 41 shall take effect September 15, 2011 but only if the commissioner of 42 taxation and finance has reported in the report required by section 43 seventeen-b of this act that the percentage of individual taxpayers 44 electronically filing their 2010 income tax returns is less than eight- 45 y-five percent; and 46 (c) sections fourteen-a and fifteen-a of this act shall take effect 47 September 15, 2011 and expire and be deemed repealed December 31, 2012 48 but shall take effect only if the commissioner of taxation and finance 49 has reported in the report required by section seventeen-b of this act 50 that the percentage of individual taxpayers electronically filing their 51 2010 income tax returns is eighty-five percent or greater[;52(d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this53act shall take effect January 1, 2020 but only if the commissioner of54taxation and finance has reported in the report required by sectionS. 1509--A 6 A. 2009--A 1seventeen-b of this act that the percentage of individual taxpayers2electronically filing their 2010 income tax returns is less than eight-3y-five percent; and4(e) sections twenty-one and twenty-one-a of this act shall expire and5be deemed repealed December 31, 2019]. 6 § 6. This act shall take effect immediately. 7 PART B 8 Section 1. Subdivision 3 of section 441 of the economic development 9 law, as amended by section 1 of part L of chapter 59 of the laws of 10 2017, is amended to read as follows: 11 3. "Eligible training" means (a) training provided by the business 12 entity or an approved provider that is: 13 (i) to upgrade, retrain or improve the productivity of employees; 14 (ii) provided to employees in connection with a significant capital 15 investment by a participating business entity; 16 (iii) determined by the commissioner to satisfy a business need on the 17 part of a participating business entity; 18 (iv) not designed to train or upgrade skills as required by a federal 19 or state entity; 20 (v) not training the completion of which may result in the awarding of 21 a license or certificate required by law in order to perform a job func- 22 tion; and 23 (vi) not culturally focused training; or 24 (b) an internship program in advanced technology [or], life sciences, 25 software development or clean energy approved by the commissioner and 26 provided by the business entity or an approved provider, on or after 27 August first, two thousand fifteen, to provide employment and experience 28 opportunities for current students, recent graduates, and recent members 29 of the armed forces. 30 § 2. Paragraph (b) of subdivision 1 of section 442 of the economic 31 development law, as amended by section 2 of part L of chapter 59 of the 32 laws of 2017, is amended to read as follows: 33 (b) The business entity must demonstrate that it is conducting eligi- 34 ble training or obtaining eligible training from an approved provider; 35 § 3. Paragraph (a) of subdivision 2 of section 443 of the economic 36 development law, as added by section 1 of part O of chapter 59 of the 37 laws of 2015, is amended to read as follows: 38 (a) provide such documentation as the commissioner may require in 39 order for the commissioner to determine that the business entity intends 40 to conduct eligible training or procure eligible training for its 41 employees from an approved provider; 42 § 4. This act shall take effect immediately. 43 PART C 44 Section 1. Section 210-A of the tax law is amended by adding a new 45 subdivision 5-a to read as follows: 46 5-a. Net global intangible low-taxed income. Notwithstanding any 47 other provision of this section, net global intangible low-taxed income 48 shall be included in the apportionment fraction as provided in this 49 subdivision. Receipts constituting net global intangible low-taxed 50 income shall not be included in the numerator of the apportionment frac- 51 tion. Receipts constituting net global intangible low-taxed income shall 52 be included in the denominator of the apportionment fraction. ForS. 1509--A 7 A. 2009--A 1 purposes of this subdivision, the term "net global intangible low-taxed 2 income" means the amount required to be included in the taxpayer's 3 federal gross income pursuant to subsection (a) of section 951A of the 4 internal revenue code less the amount of the deduction allowed under 5 clause (i) of section 250(a)(1)(B) of such code. 6 § 2. Section 11-654.2 of the administrative code of the city of New 7 York is amended by adding a new subdivision 5-a to read as follows: 8 5-a. Notwithstanding any other provision of this section, net global 9 intangible low-taxed income shall be included in the receipts fraction 10 as provided in this subdivision. Receipts constituting net global 11 intangible low-taxed income shall not be included in the numerator of 12 the receipts fraction. Receipts constituting net global intangible low- 13 taxed income shall be included in the denominator of the receipts frac- 14 tion. For purposes of this subdivision, the term "net global intangible 15 low-taxed income" means the amount required to be included in the 16 taxpayer's federal gross income pursuant to subsection (a) of section 17 951A of the internal revenue code less the amount of the deduction 18 allowed under clause (i) of section 250(a)(1)(B) of such code. 19 § 3. Subparagraph (2) of paragraph (a) of subdivision (3) of section 20 11-604 of the administrative code of the city of New York is amended by 21 adding a new clause (E) to read as follows: 22 (E) notwithstanding any other provision of this paragraph, net global 23 intangible low-taxed income shall be included in the receipts fraction 24 as provided in this clause. Receipts constituting net global intangible 25 low-taxed income shall not be included in the numerator of the receipts 26 fraction. Receipts constituting net global intangible low-taxed income 27 shall be included in the denominator of the receipts fraction. For 28 purposes of this clause, the term "net global intangible low-taxed 29 income" means the amount that would have been required to be included in 30 the taxpayer's federal gross income pursuant to subsection (a) of 31 section 951A of the internal revenue code less the amount of the 32 deduction that would have been allowed under clause (i) of section 33 250(a)(1)(B) of such code if the taxpayer had not made an election under 34 subchapter s of chapter one of the internal revenue code. 35 § 4. This act shall take effect immediately and shall apply to taxable 36 years beginning on or after January 1, 2018. 37 PART D 38 Section 1. Subparagraph (vi) of paragraph (a) of subdivision 1 of 39 section 210 of the tax law, as amended by section 11 of part T of chap- 40 ter 59 of the laws of 2015, is amended to read as follows: 41 (vi) for taxable years beginning on or after January first, two thou- 42 sand fourteen, the amount prescribed by this paragraph for a taxpayer 43 [which] that is a qualified New York manufacturer, shall be computed at 44 the rate of zero percent of the taxpayer's business income base. The 45 term "manufacturer" shall mean a taxpayer [which] that during the taxa- 46 ble year is principally engaged in the production of goods by manufac- 47 turing, processing, assembling, refining, mining, extracting, farming, 48 agriculture, horticulture, floriculture, viticulture or commercial fish- 49 ing. However, the generation and distribution of electricity, the 50 distribution of natural gas, and the production of steam associated with 51 the generation of electricity shall not be qualifying activities for a 52 manufacturer under this subparagraph. Moreover, in the case of a 53 combined report, the combined group shall be considered a "manufacturer" 54 for purposes of this subparagraph only if the combined group during theS. 1509--A 8 A. 2009--A 1 taxable year is principally engaged in the activities set forth in this 2 paragraph, or any combination thereof. A taxpayer or, in the case of a 3 combined report, a combined group shall be "principally engaged" in 4 activities described above if, during the taxable year, more than fifty 5 percent of the gross receipts of the taxpayer or combined group, respec- 6 tively, are derived from receipts from the sale of goods produced by 7 such activities. In computing a combined group's gross receipts, inter- 8 corporate receipts shall be eliminated. A "qualified New York manufac- 9 turer" is a manufacturer [which] that has property in New York [which] 10 that is described in clause (A) of subparagraph (i) of paragraph (b) of 11 subdivision one of section two hundred ten-B of this article and either 12 (I) the adjusted basis of such property for [federal income] New York 13 state tax purposes at the close of the taxable year is at least one 14 million dollars or (II) all of its real and personal property is located 15 in New York. A taxpayer or, in the case of a combined report, a combined 16 group, that does not satisfy the principally engaged test may be a qual- 17 ified New York manufacturer if the taxpayer or the combined group 18 employs during the taxable year at least two thousand five hundred 19 employees in manufacturing in New York and the taxpayer or the combined 20 group has property in the state used in manufacturing, the adjusted 21 basis of which for [federal income] New York state tax purposes at the 22 close of the taxable year is at least one hundred million dollars. 23 § 2. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 24 of the tax law, as amended by section 18 of part T of chapter 59 of the 25 laws of 2015, is amended to read as follows: 26 (2) For purposes of subparagraph one of this paragraph, the term 27 "manufacturer" shall mean a taxpayer [which] that during the taxable 28 year is principally engaged in the production of goods by manufacturing, 29 processing, assembling, refining, mining, extracting, farming, agricul- 30 ture, horticulture, floriculture, viticulture or commercial fishing. 31 Moreover, for purposes of computing the capital base in a combined 32 report, the combined group shall be considered a "manufacturer" for 33 purposes of this subparagraph only if the combined group during the 34 taxable year is principally engaged in the activities set forth in this 35 subparagraph, or any combination thereof. A taxpayer or, in the case of 36 a combined report, a combined group shall be "principally engaged" in 37 activities described above if, during the taxable year, more than fifty 38 percent of the gross receipts of the taxpayer or combined group, respec- 39 tively, are derived from receipts from the sale of goods produced by 40 such activities. In computing a combined group's gross receipts, inter- 41 corporate receipts shall be eliminated. A "qualified New York manufac- 42 turer" is a manufacturer that has property in New York that is described 43 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of 44 section two hundred ten-B of this article and either (i) the adjusted 45 basis of that property for [federal income] New York state tax purposes 46 at the close of the taxable year is at least one million dollars or (ii) 47 all of its real and personal property is located in New York. In addi- 48 tion, a "qualified New York manufacturer" means a taxpayer that is 49 defined as a qualified emerging technology company under paragraph (c) 50 of subdivision one of section thirty-one hundred two-e of the public 51 authorities law regardless of the ten million dollar limitation 52 expressed in subparagraph one of such paragraph. A taxpayer or, in the 53 case of a combined report, a combined group, that does not satisfy the 54 principally engaged test may be a qualified New York manufacturer if the 55 taxpayer or the combined group employs during the taxable year at least 56 two thousand five hundred employees in manufacturing in New York and theS. 1509--A 9 A. 2009--A 1 taxpayer or the combined group has property in the state used in manu- 2 facturing, the adjusted basis of which for [federal income] New York 3 state tax purposes at the close of the taxable year is at least one 4 hundred million dollars. 5 § 3. Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1 6 of section 11-654 of the administrative code of the city of New York, as 7 added by section 1 of part D of chapter 60 of the laws of 2015, is 8 amended to read as follows: 9 (ii) A "qualified New York manufacturing corporation" is a manufactur- 10 ing corporation that has property in the state [which] that is described 11 in subparagraph five of this paragraph and either (A) the adjusted basis 12 of such property for [federal income] New York state tax purposes at the 13 close of the taxable year is at least one million dollars or (B) more 14 than fifty [percentum] percent of its real and personal property is 15 located in the state. 16 § 4. This act shall take effect immediately and shall apply to taxable 17 years beginning on or after January 1, 2018. 18 PART E 19 Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 20 amending the labor law and the tax law relating to the creation of the 21 workers with disabilities tax credit program is amended to read as 22 follows: 23 § 5. This act shall take effect January 1, 2015, and shall apply to 24 taxable years beginning on and after that date; provided, however, that 25 this act shall expire and be deemed repealed January 1, [2020] 2023. 26 § 2. This act shall take effect immediately. 27 PART F 28 Section 1. Paragraph 3 of subsection (a) of section 954 of the tax 29 law, as amended by section 2 of part BB of chapter 59 of the laws of 30 2015, is amended to read as follows: 31 (3) Increased by the amount of any taxable gift under section 2503 of 32 the internal revenue code not otherwise included in the decedent's 33 federal gross estate, made during the three year period ending on the 34 decedent's date of death, but not including any gift made: (A) when the 35 decedent was not a resident of New York state; or (B) before April 36 first, two thousand fourteen; or (C) that is real or tangible personal 37 property having an actual situs outside New York state at the time the 38 gift was made. Provided, however that this paragraph shall not apply to 39 the estate of a [decendent] decedent dying on or after January first, 40 two thousand [nineteen] twenty-six. 41 § 2. Subsection (a) of section 954 of the tax law is amended by adding 42 a new paragraph 4 to read as follows: 43 (4) Increased by the value of any property not otherwise already 44 included in the decedent's federal gross estate in which the decedent 45 had a qualifying income interest for life if a deduction was allowed on 46 the return of the tax imposed by this article with respect to the trans- 47 fer of such property to the decedent by reason of the application of 48 paragraph (7) of subsection (b) of section 2056 of the internal revenue 49 code, as made applicable to the tax imposed by this article by section 50 nine hundred ninety-nine-a of this article, whether or not a federal 51 estate tax return was required to be filed by the estate of the trans- 52 ferring spouse.S. 1509--A 10 A. 2009--A 1 § 3. Subsection (c) of section 955 of the tax law, as added by section 2 4 of part X of chapter 59 of the laws of 2014, is amended to read as 3 follows: 4 (c) Qualified terminable interest property election.-- Except as 5 otherwise provided in this subsection, the election referred to in para- 6 graph (7) of subsection (b) of section 2056 of the internal revenue code 7 shall not be allowed under this article unless such election was made 8 with respect to the federal estate tax return required to be filed under 9 the provisions of the internal revenue code. If such election was made 10 for the purposes of the federal estate tax, then such election must also 11 be made by the executor on the return of the tax imposed by this arti- 12 cle. Where no federal estate tax return is required to be filed, the 13 executor [may] must make the election referred to in such paragraph (7) 14 with respect to the tax imposed by this article on the return of the tax 15 imposed by this article. Any election made under this subsection shall 16 be irrevocable. 17 § 4. This act shall take effect immediately; provided however that 18 section one of this act shall apply to estates of decedents dying on or 19 after January 1, 2019 and sections two and three of this act shall apply 20 to estates of decedents dying on or after April 1, 2019. 21 PART G 22 Section 1. Section 1101 of the tax law is amended by adding a new 23 subdivision (e) to read as follows: 24 (e) When used in this article for the purposes of the taxes imposed 25 under subdivision (a) of section eleven hundred five of this article and 26 by section eleven hundred ten of this article, the following terms shall 27 mean: 28 (1) Marketplace provider. A person who, pursuant to an agreement with 29 a marketplace seller, facilitates sales of tangible personal property by 30 such marketplace seller or sellers. A person "facilitates a sale of 31 tangible personal property" for purposes of this paragraph when the 32 person meets both of the following conditions: (A) such person provides 33 the forum in which, or by means of which, the sale takes place or the 34 offer of sale is accepted, including a shop, store, or booth, an inter- 35 net website, catalog, or similar forum; and (B) such person or an affil- 36 iate of such person collects the receipts paid by a customer to a 37 marketplace seller for a sale of tangible personal property, or 38 contracts with a third party to collect such receipts. For purposes of 39 this paragraph, a "sale of tangible personal property" shall not include 40 the rental of a passenger car as described in section eleven hundred 41 sixty of this chapter but shall include a lease described in subdivision 42 (i) of section eleven hundred eleven of this article. For purposes of 43 this paragraph, persons are affiliated if one person has an ownership 44 interest of more than five percent, whether direct or indirect, in 45 another, or where an ownership interest of more than five percent, 46 whether direct or indirect, is held in each of such persons by another 47 person or by a group of other persons that are affiliated persons with 48 respect to each other. 49 (2) Marketplace seller. Any person, whether or not such person is 50 required to obtain a certificate of authority under section eleven 51 hundred thirty-four of this article, who has an agreement with a market- 52 place provider under which the marketplace provider will facilitate 53 sales of tangible personal property by such person within the meaning of 54 paragraph one of this subdivision.S. 1509--A 11 A. 2009--A 1 § 2. Subdivision 1 of section 1131 of the tax law, as amended by 2 section 1 of part X of chapter 59 of the laws of 2018, is amended to 3 read as follows: 4 (1) "Persons required to collect tax" or "person required to collect 5 any tax imposed by this article" shall include: every vendor of tangible 6 personal property or services; every recipient of amusement charges; 7 [and] every operator of a hotel; and every marketplace provider with 8 respect to sales of tangible personal property it facilitates as 9 described in paragraph one of subdivision (e) of section eleven hundred 10 one of this article. Said terms shall also include any officer, director 11 or employee of a corporation or of a dissolved corporation, any employee 12 of a partnership, any employee or manager of a limited liability compa- 13 ny, or any employee of an individual proprietorship who as such officer, 14 director, employee or manager is under a duty to act for such corpo- 15 ration, partnership, limited liability company or individual proprietor- 16 ship in complying with any requirement of this article, or has so acted; 17 and any member of a partnership or limited liability company. Provided, 18 however, that any person who is a vendor solely by reason of clause (D) 19 or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of 20 section eleven hundred one of this article shall not be a "person 21 required to collect any tax imposed by this article" until twenty days 22 after the date by which such person is required to file a certificate of 23 registration pursuant to section eleven hundred thirty-four of this 24 part. 25 § 3. Section 1132 of the tax law is amended by adding a new subdivi- 26 sion (l) to read as follows: 27 (l)(1) A marketplace provider with respect to a sale of tangible 28 personal property it facilitates: (A) shall have all the obligations and 29 rights of a vendor under this article and article twenty-nine of this 30 chapter and under any regulations adopted pursuant thereto, including, 31 but not limited to, the duty to obtain a certificate of authority, to 32 collect tax, file returns, remit tax, and the right to accept a certif- 33 icate or other documentation from a customer substantiating an exemption 34 or exclusion from tax, the right to receive the refund authorized by 35 subdivision (e) of this section and the credit allowed by subdivision 36 (f) of section eleven hundred thirty-seven of this part subject to the 37 provisions of such subdivisions; and (B) shall keep such records and 38 information and cooperate with the commissioner to ensure the proper 39 collection and remittance of tax imposed, collected or required to be 40 collected under this article and article twenty-nine of this chapter. 41 (2) A marketplace seller who is a vendor is relieved from the duty to 42 collect tax in regard to a particular sale of tangible personal property 43 subject to tax under subdivision (a) of section eleven hundred five of 44 this article and shall not include the receipts from such sale in its 45 taxable receipts for purposes of section eleven hundred thirty-six of 46 this part if, in regard to such sale: (A) the marketplace seller can 47 show that such sale was facilitated by a marketplace provider from whom 48 such seller has received in good faith a properly completed certificate 49 of collection in a form prescribed by the commissioner, certifying that 50 the marketplace provider is registered to collect sales tax and will 51 collect sales tax on all taxable sales of tangible personal property by 52 the marketplace seller facilitated by the marketplace provider, and with 53 such other information as the commissioner may prescribe; and (B) any 54 failure of the marketplace provider to collect the proper amount of tax 55 in regard to such sale was not the result of such marketplace seller 56 providing the marketplace provider with incorrect information. ThisS. 1509--A 12 A. 2009--A 1 provision shall be administered in a manner consistent with subparagraph 2 (i) of paragraph one of subdivision (c) of this section as if a certif- 3 icate of collection were a resale or exemption certificate for purposes 4 of such subparagraph, including with regard to the completeness of such 5 certificate of collection and the timing of its acceptance by the 6 marketplace seller. Provided that, with regard to any sales of tangible 7 personal property by a marketplace seller that are facilitated by a 8 marketplace provider who is affiliated with such marketplace seller 9 within the meaning of paragraph one of subdivision (e) of section eleven 10 hundred one of this article, the marketplace seller shall be deemed 11 liable as a person under a duty to act for such marketplace provider for 12 purposes of subdivision one of section eleven hundred thirty-one of this 13 part. 14 (3) The commissioner may, in his or her discretion: (A) develop a 15 standard provision, or approve a provision developed by a marketplace 16 provider, in which the marketplace provider obligates itself to collect 17 the tax on behalf of all the marketplace sellers for whom the market- 18 place provider facilitates sales of tangible personal property, with 19 respect to all sales that it facilitates for such sellers where delivery 20 occurs in the state; and (B) provide by regulation or otherwise that the 21 inclusion of such provision in the publicly-available agreement between 22 the marketplace provider and marketplace seller will have the same 23 effect as a marketplace seller's acceptance of a certificate of 24 collection from such marketplace provider under paragraph two of this 25 subdivision. 26 § 4. Section 1133 of the tax law is amended by adding a new subdivi- 27 sion (f) to read as follows: 28 (f) A marketplace provider is relieved of liability under this section 29 for failure to collect the correct amount of tax to the extent that the 30 marketplace provider can show that the error was due to incorrect infor- 31 mation given to the marketplace provider by the marketplace seller. 32 Provided, however, this subdivision shall not apply if the marketplace 33 seller and marketplace provider are affiliated within the meaning of 34 paragraph one of subdivision (e) of section eleven hundred one of this 35 article. 36 § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 37 amended by section 46 of part K of chapter 61 of the laws of 2011, is 38 amended to read as follows: 39 (4) The return of a vendor of tangible personal property or services 40 shall show such vendor's receipts from sales and the number of gallons 41 of any motor fuel or diesel motor fuel sold and also the aggregate value 42 of tangible personal property and services and number of gallons of such 43 fuels sold by the vendor, the use of which is subject to tax under this 44 article, and the amount of tax payable thereon pursuant to the 45 provisions of section eleven hundred thirty-seven of this part. The 46 return of a recipient of amusement charges shall show all such charges 47 and the amount of tax thereon, and the return of an operator required to 48 collect tax on rents shall show all rents received or charged and the 49 amount of tax thereon. The return of a marketplace seller shall exclude 50 the receipts from a sale of tangible personal property facilitated by a 51 marketplace provider if, in regard to such sale: (A) the marketplace 52 seller has timely received in good faith a properly completed certif- 53 icate of collection from the marketplace provider or the marketplace 54 provider has included a provision approved by the commissioner in the 55 publicly-available agreement between the marketplace provider and the 56 marketplace seller as described in subdivision one of section elevenS. 1509--A 13 A. 2009--A 1 hundred thirty-two of this part, and (B) the information provided by the 2 marketplace seller to the marketplace provider about such tangible 3 personal property is accurate. 4 § 6. Section 1142 of the tax law is amended by adding a new subdivi- 5 sion 15 to read as follows: 6 (15) To publish a list on the department's website of marketplace 7 providers whose certificates of authority have been revoked and, if 8 necessary to protect sales tax revenue, provide by regulation or other- 9 wise that a marketplace seller who is a vendor will be relieved of the 10 duty to collect tax for sales of tangible personal property facilitated 11 by a marketplace provider only if, in addition to the conditions 12 prescribed by paragraph two of subdivision (l) of section eleven hundred 13 thirty-two of this part being met, such marketplace provider is not on 14 such list at the commencement of the quarterly period covered thereby. 15 § 7. This act shall take effect immediately and shall apply to sales 16 made on or after September 1, 2019. 17 PART H 18 Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of 19 section 1105 of the tax law, as amended by section 9 of part S of chap- 20 ter 85 of the laws of 2002, is amended to read as follows: 21 (A) gas, electricity, refrigeration and steam, and gas, electric, 22 refrigeration and steam service of whatever nature, including the trans- 23 portation, transmission or distribution of gas or electricity, even if 24 sold separately; 25 § 2. Section 1105-C of the tax law is REPEALED. 26 § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 27 1210 of the tax law is REPEALED. 28 § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- 29 trative code of the city of New York is REPEALED. 30 § 5. This act shall take effect June 1, 2019, and shall apply to sales 31 made and services rendered on and after that date, whether or not under 32 a prior contract. 33 PART I 34 Section 1. Subdivision 3 of section 1204 of the real property tax law, 35 as added by chapter 115 of the laws of 2018, is amended to read as 36 follows: 37 3. Where the tentative equalization rate is not within plus or minus 38 five [percentage points] percent of the locally stated level of assess- 39 ment, the assessor shall provide notice in writing to the local govern- 40 ing body of any affected town, city, village, county and school district 41 of the difference between the locally stated level of assessment and the 42 tentative equalization rate. Such notice shall be made within ten days 43 of the receipt of the tentative equalization rate, or within ten days of 44 the filing of the tentative assessment roll, whichever is later, and 45 shall provide the difference in the indicated total full value estimates 46 of the locally stated level of assessment and the tentative equalization 47 rate for the taxable property within each affected town, city, village, 48 county and school district, where applicable. 49 § 2. The real property tax law is amended by adding a new section 1211 50 to read as follows: 51 § 1211. Confirmation by commissioner of the locally stated level of 52 assessment. Notwithstanding the foregoing provisions of this title,S. 1509--A 14 A. 2009--A 1 before the commissioner determines a tentative equalization rate for a 2 city, town or village, he or she shall examine the accuracy of the 3 locally stated level of assessment appearing on the tentative assessment 4 roll. If the commissioner confirms the locally stated level of assess- 5 ment, then as soon thereafter as is practicable, he or she shall estab- 6 lish and certify such locally stated level of assessment as the final 7 equalization rate for such city, town or village in the manner provided 8 by sections twelve hundred ten and twelve hundred twelve of this title. 9 The provisions of sections twelve hundred four, twelve hundred six and 10 twelve hundred eight of this title shall not apply in such cases, unless 11 the commissioner finds that the final assessment roll differs from the 12 tentative assessment roll to an extent that renders the locally stated 13 level of assessment inaccurate, and rescinds the final equalization rate 14 on that basis. 15 § 3. Paragraph (d) of subdivision 1 of section 1314 of the real prop- 16 erty tax law, as amended by chapter 158 of the laws of 2002, is amended 17 to read as follows: 18 (d) (i) Such district superintendent shall also determine what propor- 19 tion of any tax to be levied in such school district for school purposes 20 during the current school year shall be levied upon each part of a city 21 or town included in such school district by dividing the sum of the full 22 valuation of real property in such part of a city or town by the total 23 of all such full valuations of real property in such school district. 24 Provided, however, that prior to the levy of taxes, the governing body 25 of the school district may adopt a resolution directing such proportions 26 to be based upon the average full valuation of real property in each 27 such city or town over either a three-year period, consisting of the 28 current school year and the two prior school years, or over a five-year 29 period, consisting of the current school year and the four prior school 30 years. Once such a resolution has been adopted, the proportions for 31 ensuing school years shall continue to be based upon the average full 32 valuation of real property in each such city or town over the selected 33 period, unless the resolution provides otherwise or is repealed. 34 (ii) Such proportions shall be expressed in the nearest exact ten 35 thousandths and the school authorities of such school district shall 36 levy such a proportion of any tax to be raised in the school district 37 during the current school year upon each part of a city or town included 38 in such school district as shall have been determined by the district 39 superintendent. A new proportion shall be determined for each school 40 year thereafter by the district superintendent in accordance with the 41 provisions of this section by the use of the latest state equalization 42 rates. In any such school district that is not within the jurisdiction 43 of a district superintendent of schools, the duties which would other- 44 wise be performed by the district superintendent under the provisions of 45 this section, shall be performed by the school authorities of such 46 district. 47 § 4. This act shall take effect immediately. 48 PART J 49 Section 1. This Part enacts into law major components of legislation 50 relating to the improvement of the administration of real property taxa- 51 tion in accordance with the real property tax law and other laws relat- 52 ing thereto. Each component is wholly contained within a Subpart identi- 53 fied as Subparts A through F. The effective date for each particular 54 provision contained within such Subpart is set forth in the last sectionS. 1509--A 15 A. 2009--A 1 of such Subpart. Any provision in any section contained within a 2 Subpart, including the effective date of the Subpart, which makes a 3 reference to a section "of this act", when used in connection with that 4 particular component, shall be deemed to mean and refer to the corre- 5 sponding section of the Subpart in which it is found. Section three of 6 this Part sets forth the general effective date of this Part. 7 SUBPART A 8 Section 1. The real property tax law is amended by adding a new 9 section 497 to read as follows: 10 § 497. Assessment relief in state disaster emergencies. 1. Notwith- 11 standing any provision of law to the contrary, during a state disaster 12 emergency as defined by section twenty of the executive law, an eligible 13 municipality may exercise the provisions of this section if its govern- 14 ing body, by the sixtieth day following the date upon which the governor 15 declares a state disaster emergency, passes a local law or ordinance, or 16 in the case of a school district a resolution, adopting the provisions 17 of this section. An eligible municipality may provide assessment relief 18 for real property that is impacted by the disaster that led to the 19 declaration of the state disaster emergency, and that is located within 20 such municipality, as provided in subparagraphs (i), (ii), (iii) or (iv) 21 of paragraph (a) of subdivision three of this section only if its 22 governing body specifically elects to do so as part of such local law, 23 ordinance or resolution. A copy of any such local law, ordinance or 24 resolution shall be filed with the commissioner within ten days after 25 the adoption thereof. 26 2. Definitions. For the purposes of this section, the following terms 27 shall have the following meanings: 28 a. "Eligible county" shall mean a county, other than a county wholly 29 contained within a city, specifically referenced within a declaration by 30 the governor of a state disaster emergency. 31 b. "Eligible municipality" shall mean a municipal corporation, as 32 defined by subdivision ten of section one hundred two of this chapter, 33 that is either: (i) an eligible county; or (ii) a city, town, village, 34 special district, or school district that is wholly or partly contained 35 within an eligible county. 36 c. "Impacted tax roll" shall mean the final assessment roll that 37 satisfies both of the following conditions: (a) the roll is based upon a 38 taxable status date occurring prior to a disaster that is the subject of 39 a declaration by the governor of a state disaster emergency; and (b) 40 taxes levied upon that roll by or on behalf of a participating munici- 41 pality are payable without interest on or after the date of the disas- 42 ter. 43 d. "Participating municipality" shall mean an eligible municipality 44 that has passed a local law, ordinance, or resolution to provide assess- 45 ment relief to property owners within such eligible municipality pursu- 46 ant to the provisions of this section. 47 e. "Total assessed value" shall mean the total assessed value of the 48 parcel prior to any and all exemption adjustments. 49 f. "Improved value" shall mean the market value of the real property 50 improvements excluding the land. 51 g. "Property" shall mean "real property", "property" or "land" as 52 defined under paragraphs (a) through (g) of subdivision twelve of 53 section one hundred two of this chapter.S. 1509--A 16 A. 2009--A 1 3. Assessment relief for disaster victims in an eligible county. (a) 2 Notwithstanding any provision of law to the contrary, where real proper- 3 ty is impacted by a disaster that led to the declaration of a state 4 disaster emergency, and such property is located within a participating 5 municipality, assessment relief shall be granted as follows: 6 (i) If a participating municipality has elected to provide assessment 7 relief for real property that lost at least ten percent but less than 8 twenty percent of its improved value due to a disaster, the assessed 9 value attributable to the improvements shall be reduced by fifteen 10 percent for purposes of the participating municipality on the impacted 11 tax roll. 12 (ii) If a participating municipality has elected to provide assessment 13 relief for real property that lost at least twenty percent but less than 14 thirty percent of its improved value due to a disaster, the assessed 15 value attributable to the improvements shall be reduced by twenty-five 16 percent for purposes of the participating municipality on the impacted 17 tax roll. 18 (iii) If a participating municipality has elected to provide assess- 19 ment relief for real property that lost at least thirty percent but less 20 than forty percent of its improved value due to a disaster, the assessed 21 value attributable to the improvements shall be reduced by thirty-five 22 percent for purposes of the participating municipality on the impacted 23 tax roll. 24 (iv) If a participating municipality has elected to provide assessment 25 relief for real property that lost at least forty percent but less than 26 fifty percent of its improved value due to a disaster, the assessed 27 value attributable to the improvements shall be reduced by forty-five 28 percent for purposes of the participating municipality on the impacted 29 tax roll. 30 (v) If the property lost at least fifty but less than sixty percent of 31 its improved value due to a disaster, the assessed value attributable to 32 the improvements shall be reduced by fifty-five percent for purposes of 33 the participating municipality on the impacted tax roll. 34 (vi) If the property lost at least sixty but less than seventy percent 35 of its improved value due to a disaster, the assessed value attributable 36 to the improvements shall be reduced by sixty-five percent for purposes 37 of the participating municipality on the impacted tax roll. 38 (vii) If the property lost at least seventy but less than eighty 39 percent of its improved value due to a disaster, the assessed value 40 attributable to the improvements shall be reduced by seventy-five 41 percent for purposes of the participating municipality on the impacted 42 tax roll. 43 (viii) If the property lost at least eighty but less than ninety 44 percent of its improved value due to a disaster, the assessed value 45 attributable to the improvements shall be reduced by eighty-five percent 46 for purposes of the participating municipality on the impacted tax roll. 47 (ix) If the property lost at least ninety but less than one hundred 48 percent of its improved value due to a disaster, the assessed value 49 attributable to the improvements shall be reduced by ninety-five percent 50 for purposes of the participating municipality on the impacted tax roll. 51 (x) If the property lost one hundred percent of its improved value due 52 to a disaster, the assessed value attributable to the improvements shall 53 be reduced by one hundred percent for purposes of the participating 54 municipality on the impacted tax roll. 55 (xi) The percentage loss in improved value for this purpose shall be 56 adopted by the assessor from a written finding of the Federal EmergencyS. 1509--A 17 A. 2009--A 1 Management Agency or, where no such finding exists, shall be determined 2 by the assessor in the manner provided by this section, subject to 3 review by the board of assessment review. 4 (xii) Where the assessed value of a property is reduced pursuant to 5 this section, the difference between the property's assessed value and 6 its reduced assessed value shall be exempt from taxation. No reduction 7 in assessed value shall be granted pursuant to this section except as 8 specified above for such counties. No reduction in assessed value shall 9 be granted pursuant to this section for purposes of any county, city, 10 town, village or school district that has not adopted the provisions of 11 this section. 12 (b) To receive such relief pursuant to this section, a property owner 13 in a participating municipality shall submit a written request to the 14 assessor on a form prescribed by the commissioner within one hundred 15 twenty days following the date upon which the state disaster emergency 16 was declared by the governor, provided, however, that such one hundred 17 twenty day period may be extended to a total of up to one hundred eighty 18 days by a local law, ordinance or resolution adopted by the governing 19 body of the assessing unit. A copy of any such local law, ordinance or 20 resolution shall be filed with the commissioner. Such request shall 21 attach any and all determinations by the Federal Emergency Management 22 Agency, and any and all reports by an insurance adjuster, shall describe 23 in reasonable detail the damage caused to the property by the disaster 24 and the condition of the property following the disaster, and shall be 25 accompanied by supporting documentation, if available. 26 (c) Upon receiving such a request, the assessor shall adopt the find- 27 ing by the Federal Emergency Management Agency or, if such finding does 28 not exist, the assessor shall make a finding as to whether the property 29 lost at least fifty percent of its improved value or, if a participating 30 municipality has elected to provide assessment relief for real property 31 that lost a lesser percentage of improved value such lesser percentage 32 of its improved value, as a result of a disaster. The assessor shall 33 thereafter adopt or classify the percentage loss of improved value with- 34 in one of the following ranges: 35 (i) At least ten percent but less than twenty percent, provided that 36 this range shall only be applicable if a participating municipality has 37 elected to provide assessment relief for losses within this range, 38 (ii) At least twenty percent but less than thirty percent, provided 39 that this range shall only be applicable if a participating municipality 40 has elected to provide assessment relief for losses within this range, 41 (iii) At least thirty percent but less than forty percent, provided 42 that this range shall only be applicable if a participating municipality 43 has elected to provide assessment relief for losses within this range, 44 (iv) At least forty percent but less than fifty percent, provided that 45 this range shall only be applicable if a participating municipality has 46 elected to provide assessment relief for losses within this range, 47 (v) At least fifty percent but less than sixty percent, 48 (vi) At least sixty percent but less than seventy percent, 49 (vii) At least seventy percent but less than eighty percent, 50 (viii) At least eighty percent but less than ninety percent, 51 (ix) At least ninety percent but less than one hundred percent, or 52 (x) One hundred percent. 53 (d) On or before the thirtieth day after the last date for the filing 54 of requests for relief pursuant to this section, the assessor shall mail 55 written notice of such findings to the property owner and participating 56 municipality. The notice shall indicate that if the property owner isS. 1509--A 18 A. 2009--A 1 dissatisfied with these findings, he or she may file a complaint with 2 the board of assessment review up until the date specified in such 3 notice, which date shall be the twenty-first day after the last date for 4 the mailing of such notices. If any complaints are so filed, such board 5 shall reconvene upon ten days written notice to the property owner and 6 assessor to hear and determine the complaint, and shall mail written 7 notice of its determination to the assessor and property owner within 8 fifteen days of such hearing. The provisions of article five of this 9 chapter shall govern the review process to the extent practicable. For 10 the purposes of this section only, the applicant may commence, within 11 thirty days of mailing of a written determination, a proceeding under 12 title one of article seven of this chapter or, if applicable, under 13 title one-A of article seven of this chapter. Sections seven hundred 14 twenty-seven and seven hundred thirty-nine of this chapter shall not 15 apply. 16 (e) Where property has lost at least fifty percent of its improved 17 value or, if a participating municipality has elected to provide assess- 18 ment relief for real property that lost a lesser percentage of improved 19 value such lesser percentage, due to a disaster, the assessed value 20 attributable to the improvements on the property on the impacted assess- 21 ment roll shall be reduced by the appropriate percentage specified in 22 paragraph (a) of this subdivision, provided that any exemptions that the 23 property may be receiving shall be adjusted as necessary to account for 24 such reduction in the total assessed value. To the extent the total 25 assessed value of the property originally appearing on such roll exceeds 26 the amount to which it should be reduced pursuant to this section, the 27 excess shall be considered an error in essential fact as defined by 28 subdivision three of section five hundred fifty of this chapter. The 29 assessor shall thereupon be authorized and directed to correct the 30 assessment roll accordingly or, if another person has custody or control 31 of the assessment roll, to direct such person to make the appropriate 32 corrections. If the correction is made after taxes are levied but before 33 such taxes are paid, the collecting officer shall be authorized and 34 directed to correct the applicant's tax bill accordingly. If the 35 correction is made after taxes are paid, the authorities of each partic- 36 ipating municipal corporation shall be authorized and directed to issue 37 a refund in the amount of the excess taxes paid with regard to such 38 participating municipal corporation. 39 (f) The rights contained in this section shall not otherwise diminish 40 any other legally available right of any property owner or party who may 41 otherwise lawfully challenge the valuation or assessment of any real 42 property or improvements thereon. All remaining rights hereby remain 43 and shall be available to the party to whom such rights would otherwise 44 be available notwithstanding this section. 45 4. School districts held harmless. Each school district that is wholly 46 or partially contained within an eligible county shall be held harmless 47 by the state for any reduction in state aid that would have been paid as 48 tax savings pursuant to section thirteen hundred six-a of this chapter 49 incurred due to the provisions of this section. 50 5. Bonds authorized. Serial bonds and, in advance of such, bond antic- 51 ipation notes are hereby authorized pursuant to subdivision thirty- 52 three-e of paragraph a of section 11.00 of the local finance law, 53 provided, however, that any federal community development block grant 54 funding received by such participating municipality, in relation to loss 55 of property tax funding, shall first be used to defease, upon maturity, 56 the interest and principal of any such bond or note so outstanding.S. 1509--A 19 A. 2009--A 1 § 2. Paragraph a of section 11.00 of the local finance law is amended 2 by adding a new subdivision 33-e to read as follows: 3 33-e. Real property tax refunds and credits. Payments of exemptions, 4 refunds, or credits for real property tax, sewer and water rents, rates 5 and charges and all other real property taxes to be made by a munici- 6 pality, school district or district corporation as a result of providing 7 assessment relief in a state disaster emergency pursuant to section four 8 hundred ninety-seven of the real property tax law, ten years. 9 § 3. This act shall take effect immediately. 10 SUBPART B 11 Section 1. Paragraph (b) of subdivision 1 of section 523 of the real 12 property tax law, as amended by chapter 223 of the laws of 1987, is 13 amended to read as follows: 14 (b) The board of assessment review shall consist of not less than 15 three nor more than five members appointed by the legislative body of 16 the local government or village or as provided by subdivision five of 17 section fifteen hundred thirty-seven of this chapter, if applicable. 18 Members shall have a knowledge of property values in the local govern- 19 ment or village. Neither the assessor nor any member of his or her staff 20 may be appointed to the board of assessment review. A majority of such 21 board shall consist of members who are not officers or employees of the 22 local government or village. 23 § 2. Subdivision 1 of section 1537 of the real property tax law, as 24 added by chapter 512 of the laws of 1993, is amended and a new subdivi- 25 sion 5 is added to read as follows: 26 1. (a) An assessing unit and a county shall have the power to enter 27 into, amend, cancel and terminate an agreement for appraisal services, 28 exemption services, [or] assessment services, or assessment review 29 services, in the manner provided by this section. Such an agreement 30 shall be considered an agreement for the provision of a "joint service" 31 for purposes of article five-G of the general municipal law, notwith- 32 standing the fact that the county would not have the power to perform 33 such services in the absence of such an agreement. 34 (b) Any such agreement shall be approved by both the assessing unit 35 and the county, by a majority vote of the voting strength of each 36 governing body. 37 (c) In the case of an assessing unit, no such agreement shall be 38 submitted to the governing body for approval unless at least forty-five 39 days prior to such submission, the governing body shall have adopted a 40 resolution, subject to a permissive referendum, authorizing the assess- 41 ing unit to negotiate such an agreement with the county; provided, 42 however, that such prior authorization shall not be required for an 43 agreement to amend, cancel or terminate an existing agreement pursuant 44 to this section. 45 5. An agreement between an assessing unit and a county for assessment 46 review services shall provide for the members of the board of assessment 47 review of the assessing unit to be appointed by the legislative body of 48 the county upon the recommendation of the county director of the real 49 property tax services. Each member so appointed shall be a resident of 50 the county but need not be a resident of the assessing unit. The board 51 of assessment review as so constituted shall have the authority to 52 receive, review and resolve petitions for assessment review filed in 53 such assessing unit, and for the corrections of errors therein, to the 54 full extent set forth in article five of this chapter.S. 1509--A 20 A. 2009--A 1 § 3. Subdivision 1 of section 1408 of the real property tax law, as 2 amended by chapter 473 of the laws of 1984, is amended to read as 3 follows: 4 1. At the time and place and during the hours specified in the notice 5 given pursuant to section fourteen hundred six of this chapter, the 6 board of review shall meet to hear complaints relating to assessments 7 brought before it. The board of trustees and assessors, or a committee 8 of such board constituting at least a majority thereof and the assessors 9 or a board of assessment review constituted pursuant to section five 10 hundred twenty-three of this chapter, or as provided by subdivision five 11 of section fifteen hundred thirty-seven of this chapter, if applicable, 12 shall constitute the board of review. 13 § 4. This act shall take effect immediately. 14 SUBPART C 15 Section 1. Subdivision 4 of section 318 of the real property tax law, 16 as amended by chapter 527 of the laws of 1997 and as further amended by 17 subdivision (b) of section 1 of part W of chapter 56 of the laws of 18 2010, is amended to read as follows: 19 4. Notwithstanding the provisions of this subdivision or any other 20 law, the travel and other actual and necessary expenses incurred by an 21 appointed or elected assessor, or by a person appointed assessor for a 22 forthcoming term, or by an assessor-elect prior to the commencement of 23 his or her term, in satisfactorily completing courses of training as 24 required by this title or as approved by the commissioner, including 25 continuing education courses prescribed by the commissioner which are 26 satisfactorily completed by any elected assessor, shall be a state 27 charge upon audit by the comptroller. Travel and other actual and neces- 28 sary expenses incurred by an acting assessor who has been exercising the 29 powers and duties of the assessor for a period of at least six months, 30 in attending training courses no earlier than twelve months prior to the 31 date when courses of training and education are required, shall also be 32 a state charge upon audit by the comptroller. Candidates for certif- 33 ication as eligible for the position of assessor, other than assessors 34 or assessors-elect, shall be charged for the cost of training materials 35 and shall be responsible for all other costs incurred by them in 36 connection with such training. Notwithstanding the foregoing provisions 37 of this subdivision, if the provider of a training course has asked the 38 commissioner to approve the course for credit only, so that attendees 39 who successfully complete the course would be entitled to receive credit 40 without having their expenses reimbursed by the state, and the commis- 41 sioner has agreed to do so, the travel and other actual and necessary 42 expenses incurred by such attendees shall not be a state charge. 43 § 2. Paragraph f of subdivision 3 of section 1530 of the real property 44 tax law, as amended by chapter 361 of the laws of 1986 and as further 45 amended by subdivision (b) of section 1 of part W of chapter 56 of the 46 laws of 2010, is amended to read as follows: 47 f. Expenses in attending training courses. Notwithstanding the 48 provisions of any other law, the travel and other actual and necessary 49 expenses incurred by a director or a person appointed director for a 50 forthcoming term in attending courses of training as required by this 51 subdivision or as approved by the commissioner shall be a state charge 52 upon audit by the comptroller. Notwithstanding the foregoing provisions 53 of this paragraph, if the provider of a training course has asked the 54 commissioner to approve the course for credit only, so that attendeesS. 1509--A 21 A. 2009--A 1 who successfully complete the course would be entitled to receive credit 2 without having their expenses reimbursed by the state, and the commis- 3 sioner has agreed to do so, the travel and other actual and necessary 4 expenses incurred by such attendees shall not be a state charge. 5 § 3. This act shall take effect immediately. 6 SUBPART D 7 Section 1. Section 104 of the real property tax law, as added by 8 section 1 of part U of chapter 61 of the laws of 2011, is amended to 9 read as follows: 10 § 104. Electronic real property tax administration. 1. Notwithstanding 11 any provision of law to the contrary, the commissioner is hereby author- 12 ized to establish standards for electronic real property tax adminis- 13 tration (E-RPT). Such standards shall set forth the terms and conditions 14 under which the various tasks associated with real property tax adminis- 15 tration may be executed electronically, dispensing with the need for 16 paper documents. Such tasks shall include any or all of the following: 17 (a) The filing of exemption applications; 18 (b) The filing of petitions for administrative review of assessments; 19 (c) The filing of petitions for judicial review of assessments; 20 (d) The filing of applications for administrative corrections of 21 errors; 22 (e) The issuance of statements of taxes; 23 (f) The payment of taxes, subject to the provisions of sections five 24 and five-b of the general municipal law; 25 (g) The provision of receipts for the payment of taxes; 26 (h) The issuance of taxpayer notices required by law, including 27 sections five hundred eight, five hundred ten, five hundred ten-a, five 28 hundred eleven, five hundred twenty-five and five hundred fifty-one-a 29 through five hundred fifty-six-b of this chapter; and 30 (i) The furnishing of notices and certificates under this chapter 31 relating to state equalization rates, residential assessment ratios, 32 special franchise assessments, railroad ceilings, taxable state lands, 33 advisory appraisals, and the certification of assessors and county 34 directors or real property tax services, subject to the provisions of 35 subdivision five of this section. 36 2. Such standards shall be developed after consultation with local 37 government officials, the office of court administration in the case of 38 standards relating to petitions for judicial review of assessments, and 39 the office of the state comptroller in the case of standards relating to 40 payments or taxes and the issuance of receipts therefor. 41 3. (a) Taxpayers shall not be required to accept notices, statements 42 of taxes, receipts for the payment of taxes, or other documents elec- 43 tronically unless they have so elected. Taxpayers who have not so 44 elected shall be sent such communications in the manner otherwise 45 provided by law. 46 (b) [Assessors and other municipal officials shall not be required to47accept and respond to communications from the commissioner electron-48ically.49(c)] The governing board of any municipal corporation may, by local 50 law, ordinance or resolution, determine that it is in the public inter- 51 est for such municipal corporation to provide electronic real property 52 tax administration. Upon adoption of such local law, ordinance or resol- 53 ution, such municipal corporation shall comply with standards set forth 54 by the commissioner.S. 1509--A 22 A. 2009--A 1 [(d)] (c) The standards prescribed by the commissioner pursuant to 2 this section relating to communications with taxpayers shall provide for 3 the collection of electronic contact information, such as e-mail 4 addresses and/or social network usernames, from taxpayers who have 5 elected to receive electronic communications in accordance with the 6 provisions of this section. Such information shall be exempt from public 7 disclosure in accordance with section eighty-nine of the public officers 8 law. 9 4. When a document has been transmitted electronically in accordance 10 with the provisions of this section and the standards adopted by the 11 commissioner hereunder, it shall be deemed to satisfy the applicable 12 legal requirements to the same extent as if it had been mailed via the 13 United States postal service. 14 5. (a) On and after January first, two thousand twenty, whenever the 15 commissioner is obliged by law to mail a notice of the determination of 16 a tentative state equalization rate, tentative special franchise assess- 17 ment, tentative assessment ceiling or other tentative determination of 18 the commissioner that is subject to administrative review, the commis- 19 sioner shall be authorized to furnish the required notice by e-mail, or 20 by causing it to be posted on the department's website, or both, at his 21 or her discretion. When providing notice of a tentative determination 22 by causing it to be posted on the department's website, the commissioner 23 also shall e-mail the parties required by law to receive such notice, to 24 inform them that the notice of tentative determination has been posted 25 on the website. Such notice of tentative determination shall not be 26 deemed complete unless such emails have been sent. Notwithstanding any 27 provision of law to the contrary, the commissioner shall not be required 28 to furnish such notices by postal mail, except as provided by paragraphs 29 (d) and (e) of this subdivision. 30 (b) When providing notice of a tentative determination by e-mail or 31 posting pursuant to this subdivision, the commissioner shall specify an 32 e-mail address to which complaints regarding such tentative determi- 33 nation may be sent. A complaint that is sent to the commissioner by 34 e-mail to the specified e-mail address by the date prescribed by law for 35 the mailing of such complaints shall be deemed valid to the same extent 36 as if it had been sent by postal mail. 37 (c) When a final determination is made in such a matter, notice of the 38 final determination and any certificate relating thereto shall be 39 furnished by e-mail or by a website posting, or both at the commission- 40 er's discretion, and need not be provided by postal mail, except as 41 provided by paragraphs (d) and (e) of this subdivision. When providing 42 notice of a final determination by website posting, the commissioner 43 also shall e-mail the parties required by law to receive such notice, to 44 inform them that the notice of final determination has been posted on 45 the website. Such notice of final determination shall not be deemed 46 complete unless such emails have been sent. 47 (d) If an assessor has advised the commissioner in writing that he or 48 she prefers to receive the notices described in this subdivision by 49 postal mail, the commissioner shall thereafter send such notices to that 50 assessor by postal mail, and need not send such notices to that assessor 51 by e-mail. The commissioner shall prescribe a form that assessors may 52 use to advise the commissioner of their preference for postal mail. 53 (e) If the commissioner learns that an e-mail address to which a 54 notice has been sent pursuant to this subdivision is not valid, and the 55 commissioner cannot find a valid e-mail address for that party, the 56 commissioner shall resend the notice to the party by postal mail. If theS. 1509--A 23 A. 2009--A 1 commissioner does not have a valid e-mail address for the party at the 2 time the notice is initially required to be sent, the commissioner shall 3 send the notice to that party by postal mail. 4 (f) On or before November thirtieth, two thousand nineteen, the 5 commissioner shall send a notice by postal mail to assessors, to chief 6 executive officers of assessing units, and to owners of special fran- 7 chise property and railroad property, informing them of the provisions 8 of this section. The notice to be sent to assessors shall include a 9 copy of the form prescribed pursuant to paragraph (d) of this subdivi- 10 sion. 11 (g) As used in this subdivision, the term "postal mail" shall mean 12 mail that is physically delivered to the addressee by the United States 13 postal service. 14 § 2. This act shall take effect immediately. 15 SUBPART E 16 Section 1. Subdivision 4 of section 302 of the real property tax law, 17 as amended by chapter 348 of the laws of 2007, is amended to read as 18 follows: 19 4. The taxable status of a special franchise shall be determined on 20 the basis of its value and its ownership as of the first day of [July] 21 January of the year preceding the year in which the assessment roll on 22 which such property is to be assessed is completed and filed in the 23 office of the city or town clerk, except that taxable status of such 24 properties shall be determined on the basis of ownership as of the first 25 day of [July] January of the second year preceding the date required by 26 law for the filing of the final assessment roll for purposes of all 27 village assessment rolls. 28 § 2. Subdivision 2 of section 606 of the real property tax law, as 29 amended by chapter 743 of the laws of 2005 and as further amended by 30 subdivision (b) of section 1 of part W of chapter 56 of the laws of 31 2010, is amended to read as follows: 32 2. In any assessing unit which has completed a revaluation since nine- 33 teen hundred fifty-three or which does not contain property that was 34 assessed in nineteen hundred fifty-three, the commissioner shall deter- 35 mine the full value of such special franchise as of the [valuation date36of the assessing unit] taxable status date specified by subdivision four 37 of section three hundred two of this chapter. Such full value shall be 38 determined by the commissioner for purposes of sections six hundred 39 eight, six hundred fourteen and six hundred sixteen of this article. 40 These full values shall be entered on the assessment roll at the level 41 of assessment, which shall be the uniform percentage of value, as 42 required by section five hundred two of this chapter, appearing on the 43 tentative assessment roll upon which the assessment is entered. Whenever 44 a final state equalization rate, or, in the case of a special assessing 45 unit, a class equalization rate, is established that is different from a 46 level of assessment applied pursuant to this paragraph, any public offi- 47 cial having custody of that assessment roll is hereby authorized and 48 directed to recompute these assessments to reflect that equalization 49 rate, provided such final rate is established by the commissioner at 50 least ten days prior to the date for levy of taxes against those assess- 51 ments. 52 § 3. This act shall take effect January 1, 2020. 53 SUBPART FS. 1509--A 24 A. 2009--A 1 Section 1. The real property tax law is amended by adding a new 2 section 575-a to read as follows: 3 § 575-a. Electric generating facility annual reports. 1. Every corpo- 4 ration, company, association, joint stock association, partnership and 5 person, their lessees, trustees or receivers appointed by any court 6 whatsoever, owning, operating or managing any electric generating facil- 7 ity in the state shall annually file with the commissioner, by April 8 thirtieth, a report showing the inventory, revenue, and expenses associ- 9 ated therewith for the most recent fiscal year. Such report shall be in 10 the form and manner prescribed by the commissioner. 11 2. When used in this section, "electric generating facility" shall 12 mean any facility that generates electricity for sale, directly or indi- 13 rectly, to the public, including the land upon which the facility is 14 located, any equipment used in such generation, and equipment leading 15 from the facility to the interconnection with the electric transmission 16 system, but shall not include: 17 (a) any equipment in the electric transmission system; and 18 (b) any electric generating equipment owned or operated by a residen- 19 tial customer of an electric generating facility, including the land 20 upon which the equipment is located, when located and used at his or her 21 residence. 22 3. Every electric generating facility owner, operator, or manager 23 failing to make the report required by this section, or failing to make 24 any report required by the commissioner pursuant to this section within 25 the time specified by it, shall forfeit to the people of the state the 26 sum of ten thousand dollars for every such failure and the additional 27 sum of one thousand dollars for each day that such failure continues. 28 § 2. This act shall take effect January 1, 2020. 29 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 30 sion, section or subpart of this act shall be adjudged by any court of 31 competent jurisdiction to be invalid, such judgment shall not affect, 32 impair, or invalidate the remainder thereof, but shall be confined in 33 its operation to the clause, sentence, paragraph, subdivision, section 34 or subpart thereof directly involved in the controversy in which such 35 judgment shall have been rendered. It is hereby declared to be the 36 intent of the legislature that this act would have been enacted even if 37 such invalid provisions had not been included herein. 38 § 3. This act shall take effect immediately provided, however, that 39 the applicable effective date of Subparts A through F of this Part shall 40 be as specifically set forth in the last section of such Subparts. 41 PART K 42 Section 1. Section 3-d of the general municipal law, as added by 43 section 2 of part E of chapter 59 of the laws of 2018, is REPEALED. 44 § 2. This act shall take effect immediately and shall be deemed to 45 have been in full force and effect on and after April 12, 2018. 46 PART L 47 Section 1. The tax law is amended by adding a new section 44 to read 48 as follows: 49 § 44. Employer-provided child care credit. (a) General. A taxpayer 50 subject to tax under article nine-A, twenty-two, or thirty-three of this 51 chapter shall be allowed a credit against such tax in an amount equal to 52 the portion of the credit that is allowed to the taxpayer under sectionS. 1509--A 25 A. 2009--A 1 45F of the internal revenue code that is attributable to (i) qualified 2 child care expenditures paid or incurred with respect to a qualified 3 child care facility with a situs in the state, and to (ii) qualified 4 child care resource and referral expenditures paid or incurred with 5 respect to the taxpayer's employees working in the state. The credit 6 allowable under this subdivision for any taxable year shall not exceed 7 one hundred fifty thousand dollars. If the entity operating the quali- 8 fied child care facility is a partnership or a New York S corporation, 9 then such cap shall be applied at the entity level, so the aggregate 10 credit allowed to all the partners or shareholders of such entity in a 11 taxable year does not exceed one hundred fifty thousand dollars. 12 (b) Credit recapture. If there is a cessation of operation or change 13 in ownership, as defined by section 45F of the internal revenue code 14 relating to a qualified child care facility with a situs in the state, 15 the taxpayer shall add back the applicable recapture percentage of the 16 credit allowed under this section in accordance with the recapture 17 provisions of section 45F of the internal revenue code, but the recap- 18 ture amount shall be limited to the credit allowed under this section. 19 (c) Reporting requirements. A taxpayer that has claimed a credit under 20 this section shall notify the commissioner of any cessation of opera- 21 tion, change in ownership, or agreement to assume recapture liability as 22 such terms are defined by section 45F of the internal revenue code, in 23 the form and manner prescribed by the commissioner. 24 (d) Definitions. The terms "qualified child care expenditures", "qual- 25 ified child care facility", "qualified child care resource and referral 26 expenditure", "cessation of operation", "change of ownership", and 27 "applicable recapture percentage" shall have the same meanings as in 28 section 45F of the internal revenue code. 29 (e) Cross-references. For application of the credit provided for in 30 this section, see the following provisions of this chapter: 31 (1) article 9-A: section 210-B, subdivision 53; 32 (2) article 22: section 606(i), subsections (i) and (jjj); 33 (3) article 33: section 1511, subdivision (dd). 34 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 35 sion 53 to read as follows: 36 53. Employer-provided child care credit. (a) Allowance of credit. A 37 taxpayer shall be allowed a credit, to be computed as provided in 38 section forty-four of this chapter, against the tax imposed by this 39 article. 40 (b) Application of credit. The credit allowed under this subdivision 41 for any taxable year may not reduce the tax due for such year to less 42 than the amount prescribed in paragraph (d) of subdivision one of 43 section two hundred ten of this article. However, if the amount of the 44 credit allowed under this subdivision for any taxable year reduces the 45 tax to such amount or if the taxpayer otherwise pays tax based on the 46 fixed dollar minimum amount, any amount of credit thus not deductible in 47 such taxable year will be treated as an overpayment of tax to be credit- 48 ed or refunded in accordance with the provisions of section one thousand 49 eighty-six of this chapter. Provided, however, the provisions of 50 subsection (c) of section one thousand eighty-eight of this chapter 51 notwithstanding, no interest shall be paid thereon. 52 (c) Credit recapture. For provisions requiring recapture of credit, 53 see section forty-four of this chapter. 54 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 55 of the tax law is amended by adding a new clause (xliv) to read as 56 follows:S. 1509--A 26 A. 2009--A 1 (xliv) Employer-provided child Amount of credit under subdivision 2 care credit (jjj) fifty-three of section two hundred 3 ten-B 4 § 4. Section 606 of the tax law is amended by adding a new subsection 5 (jjj) to read as follows: 6 (jjj) Employer-provided child care credit. (1) Allowance of credit. A 7 taxpayer shall be allowed a credit, to be computed as provided in 8 section forty-four of this chapter, against the tax imposed by this 9 article. 10 (2) Application of credit. If the amount of the credit allowed under 11 this subsection for any taxable year exceeds the taxpayer's tax for such 12 year, the excess will be treated as an overpayment of tax to be credited 13 or refunded in accordance with the provisions of section six hundred 14 eighty-six of this article, provided, however, that no interest will be 15 paid thereon. 16 (3) Credit recapture. For provisions requiring recapture of credit, 17 see section forty-four of this chapter. 18 § 5. Section 1511 of the tax law is amended by adding a new subdivi- 19 sion (dd) to read as follows: 20 (dd) Employer-provided child care credit. (1) Allowance of credit. A 21 taxpayer shall be allowed a credit, to be computed as provided in 22 section forty-four of this chapter, against the tax imposed by this 23 article. 24 (2) Application of credit. The credit allowed under this subdivision 25 shall not reduce the tax due for such year to be less than the minimum 26 fixed by paragraph four of subdivision (a) of section fifteen hundred 27 two or section fifteen hundred two-a of this article, whichever is 28 applicable. However, if the amount of the credit allowed under this 29 subdivision for any taxable year reduces the taxpayer's tax to such 30 amount, any amount of credit thus not deductible will be treated as an 31 overpayment of tax to be credited or refunded in accordance with the 32 provisions of section one thousand eighty-six of this chapter. 33 Provided, however, the provisions of subsection (c) of one thousand 34 eighty-eight of this chapter notwithstanding, no interest shall be paid 35 thereon. 36 (3) Credit recapture. For provisions requiring recapture of credit, 37 see section forty-four of this chapter 38 § 6. This act shall take effect immediately and apply to years begin- 39 ning on or after January 1, 2020. 40 PART M 41 Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law 42 is amended by adding a new subparagraph (D-1) to read as follows: 43 (D-1) gambling winnings in excess of five thousand dollars from wager- 44 ing transactions within the state; or 45 § 2. Paragraph 2 of subsection (b) of section 671 of the tax law is 46 amended by adding a new subparagraph (E) to read as follows: 47 (E) Any gambling winnings from a wagering transaction within this 48 state, if the proceeds from the wager are subject to withholding under 49 section three thousand four hundred two of the internal revenue code. 50 § 3. This act shall take effect immediately and shall apply to taxable 51 years beginning on or after January 1, 2019; provided, however that the 52 amendments to subsection (b) of section 671 of the tax law made by 53 section two of this act shall not affect the expiration of such 54 subsection and shall be deemed to expire therewith.S. 1509--A 27 A. 2009--A 1 PART N 2 Section 1. Subdivision (c) of section 42 of the tax law, as added by 3 section 1 of part RR of chapter 60 of the laws of 2016, is amended to 4 read as follows: 5 (c) For purposes of this [subdivision] section, the term "eligible 6 farmer" means a taxpayer whose federal gross income from farming as 7 defined in subsection (n) of section six hundred six of this chapter for 8 the taxable year is at least two-thirds of excess federal gross income. 9 Excess federal gross income means the amount of federal gross income 10 from all sources for the taxable year in excess of thirty thousand 11 dollars. For [the] purposes of this [subdivision] section, payments from 12 the state's farmland protection program, administered by the department 13 of agriculture and markets, shall be included as federal gross income 14 from farming for otherwise eligible farmers. 15 § 2. Section 42 of the tax law is amended by adding a new subdivision 16 (d-1) to read as follows: 17 (d-1) Special rules. If more than fifty percent of such eligible farm- 18 er's federal gross income from farming is from the sale of wine from a 19 licensed farm winery as provided for in article six of the alcoholic 20 beverage control law, or from the sale of cider from a licensed farm 21 cidery as provided for in section fifty-eight-c of the alcoholic bever- 22 age control law, then an eligible farm employee of such eligible farmer 23 shall be included for purposes of calculating the amount of credit 24 allowed under this section only if such eligible farm employee is 25 employed by such eligible farmer on qualified agricultural property as 26 defined in paragraph four of subsection (n) of section six hundred six 27 of this chapter. 28 § 3. This act shall take effect immediately and shall apply to taxable 29 years beginning on or after January 1, 2019. 30 PART O 31 Section 1. Section 12 of part N of chapter 61 of the laws of 2005, 32 amending the tax law relating to certain transactions and related infor- 33 mation and relating to the voluntary compliance initiative, as amended 34 by section 1 of part M of chapter 60 of the laws of 2016, is amended to 35 read as follows: 36 § 12. This act shall take effect immediately; provided, however, that 37 (i) section one of this act shall apply to all disclosure statements 38 described in paragraph 1 of subdivision (a) of section 25 of the tax 39 law, as added by section one of this act, that were required to be filed 40 with the internal revenue service at any time with respect to "listed 41 transactions" as described in such paragraph 1, and shall apply to all 42 disclosure statements described in paragraph 1 of subdivision (a) of 43 section 25 of the tax law, as added by section one of this act, that 44 were required to be filed with the internal revenue service with respect 45 to "reportable transactions" as described in such paragraph 1, other 46 than "listed transactions", in which a taxpayer participated during any 47 taxable year for which the statute of limitations for assessment has not 48 expired as of the date this act shall take effect, and shall apply to 49 returns or statements described in such paragraph 1 required to be filed 50 by taxpayers (or persons as described in such paragraph) with the 51 commissioner of taxation and finance on or after the sixtieth day after 52 this act shall have become a law; andS. 1509--A 28 A. 2009--A 1 (ii) sections two through four and seven through nine of this act 2 shall apply to any tax liability for which the statute of limitations on 3 assessment has not expired as of the date this act shall take effect[;4and5(iii) provided, further, that the provisions of this act, except6section five of this act, shall expire and be deemed repealed July 1,72019; provided, that, such expiration and repeal shall not affect any8requirement imposed pursuant to this act]. 9 § 2. Subsection (aa) of section 685 of the tax law is REPEALED and a 10 new subsection (aa) is added to read as follows: 11 (aa) Tax preparer penalty.-- (1) If a tax return preparer takes a 12 position on any income tax return or credit claim form that either 13 understates the tax liability or increases the claim for a refund, and 14 the preparer knew, or reasonably should have known, that said position 15 was not proper, and such position was not adequately disclosed on the 16 return or in a statement attached to the return, such income tax prepar- 17 er shall pay a penalty of between one hundred and one thousand dollars. 18 (2) If a tax return preparer takes a position on any income tax return 19 or credit claim form that either understates the tax liability or 20 increases the claim for a refund and the understatement of the tax 21 liability or the increased claim for refund is due to the preparer's 22 reckless or intentional disregard of the law, rules or regulations, such 23 preparer shall pay a penalty of between five hundred and five thousand 24 dollars. The amount of the penalty payable by any person by reason of 25 this paragraph shall be reduced by the amount of the penalty paid by 26 such person by reason of paragraph one of this subsection. 27 (3) For purposes of this subsection, the term "understatement of tax 28 liability" means any understatement of the net amount payable with 29 respect to any tax imposed under this article or any overstatement of 30 the net amount creditable or refundable with respect to any such tax. 31 (4) For purposes of this subsection, the term "tax return prepared" 32 shall have the same meaning as defined in paragraph five of subsection 33 (g) of section six hundred fifty-eight of this article. 34 (5) This subsection shall not apply if the penalty under subsection 35 (r) of this section is imposed on the tax return preparer with respect 36 to such understatement. 37 § 3. Subsection (u) of section 685 of the tax law is amended by adding 38 three new paragraphs (1), (2), and (6) to read as follows: 39 (1) Failure to sign return or claim for refund. If a tax return 40 preparer who is required pursuant to paragraph one of subsection (g) of 41 section six hundred fifty-eight of this article to sign a return or 42 claim for refund fails to comply with such requirement with respect to 43 such return or claim for refund, the tax return preparer shall be 44 subject to a penalty of two hundred fifty dollars for each such failure 45 to sign, unless it is shown that such failure is due to reasonable cause 46 and not due to willful neglect. The maximum penalty imposed under this 47 paragraph on any tax return preparer with respect to returns filed 48 during any calendar year by the tax return preparer must not exceed ten 49 thousand dollars. Provided, however, that if a tax return preparer has 50 been penalized under this paragraph for a preceding calendar year and 51 again fails to sign his or her name on any return that requires the tax 52 return preparer's signature during a subsequent calendar year, then the 53 penalty under this paragraph for each failure will be five hundred 54 dollars, and no annual cap will apply. This paragraph shall not apply if 55 the penalty under paragraph three of subsection (g) of section thirty-S. 1509--A 29 A. 2009--A 1 two of this chapter is imposed on the tax return preparer with respect 2 to such return or claim for refund. 3 (2) Failure to furnish identifying number. If a tax return preparer 4 fails to include any identifying number required to be included on any 5 return or claim for refund pursuant to paragraph two of subsection (g) 6 of section six hundred fifty-eight of this article, the tax return 7 preparer shall be subject to a penalty of one hundred dollars for each 8 such failure, unless it is shown that such failure is due to reasonable 9 cause and not willful neglect. The maximum penalty imposed under this 10 paragraph on any tax return preparer with respect to returns filed 11 during any calendar year must not exceed two thousand five hundred 12 dollars; provided, however, that if a tax return preparer has been 13 penalized under this paragraph for a preceding calendar year and again 14 fails to include the identifying number on one or more returns during a 15 subsequent calendar year, then the penalty under this paragraph for each 16 failure will be two hundred fifty dollars, and no annual cap will apply. 17 this paragraph shall not apply if the penalty under paragraph four of 18 subsection (g) of section thirty-two of this chapter is imposed on the 19 tax return preparer with respect to such return or claim for refund. 20 (6) For purposes of this subsection, the term "tax return preparer" 21 shall have the same meaning as defined in paragraph five of subsection 22 (g) of section six hundred fifty-eight of this article. 23 § 4. This act shall take effect immediately; provided, however, that 24 the amendments to subsection (u) of section 685 of the tax law made by 25 section three of this act shall apply to tax documents filed or required 26 to be filed for taxable years beginning on or after January 1, 2019. 27 PART P 28 Section 1. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph 29 (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as 30 added by section 1 of part R of chapter 59 of the laws of 2017, are 31 amended to read as follows: 32 (iii) For taxable years beginning in two thousand twenty the following 33 rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $17,150 4% of the New York taxable income 36 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 37 $17,150 38 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 39 $23,600 40 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 41 $27,900 42 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over 43 $43,000 44 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over 45 $161,550 46 Over $323,200 but not over $19,674 plus 6.85% of excess 47 $2,155,350 $323,200 over 48 Over $2,155,350 $145,177 plus 8.82% of excess over 49 $2,155,350 50 (iv) For taxable years beginning in two thousand twenty-one the 51 following rates shall apply: 52 If the New York taxable income is: The tax is: 53 Not over $17,150 4% of the New York taxable income 54 Over $17,150 but not over $23,600 $686 plus 4.5% of excess overS. 1509--A 30 A. 2009--A 1 $17,150 2 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 3 $23,600 4 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 5 $27,900 6 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 7 $43,000 8 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 9 $161,550 10 Over $323,200 but not over $19,403 plus 6.85% of excess 11 $2,155,350 over $323,200 12 Over $2,155,350 $144,905 plus 8.82% of excess over 13 $2,155,350 14 (v) For taxable years beginning in two thousand twenty-two the follow- 15 ing rates shall apply: 16 If the New York taxable income is: The tax is: 17 Not over $17,150 4% of the New York taxable income 18 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 19 $17,150 20 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 21 $23,600 22 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 23 $27,900 24 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 25 $161,550 26 Over $323,200 but not over $2,155,350 $19,124 plus 27 6.85% of excess over $323,200 28 Over $2,155,350 $144,626 plus 8.82% of excess over 29 $2,155,350 30 (vi) For taxable years beginning in two thousand twenty-three the 31 following rates shall apply: 32 If the New York taxable income is: The tax is: 33 Not over $17,150 4% of the New York taxable income 34 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 35 $17,150 36 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 37 $23,600 38 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 39 $27,900 40 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 41 $161,550 42 Over $323,200 but not over $18,834 plus 6.85% of 43 $2,155,350 excess over $323,200 44 Over $2,155,350 $144,336 plus 8.82% of excess over 45 $2,155,350 46 (vii) For taxable years beginning in two thousand twenty-four the 47 following rates shall apply: 48 If the New York taxable income is: The tax is: 49 Not over $17,150 4% of the New York taxable income 50 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 51 $17,150 52 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 53 $23,600 54 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over 55 $27,900 56 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess overS. 1509--A 31 A. 2009--A 1 $161,550 2 Over $323,200 but not over $18,544 plus 6.85% of 3 $2,155,350 excess over $323,200 4 Over $2,155,350 $144,047 plus 8.82% of excess over 5 $2,155,350 6 § 2. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of 7 paragraph 1 of subsection (b) of section 601 of the tax law, as added by 8 section 2 of part R of chapter 59 of the laws of 2017, are amended to 9 read as follows: 10 (iii) For taxable years beginning in two thousand twenty the following 11 rates shall apply: 12 If the New York taxable income is: The tax is: 13 Not over $12,800 4% of the New York taxable income 14 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 15 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 16 $17,650 17 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 18 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 19 $32,200 20 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 21 $107,650 22 Over $269,300 but not over $16,524 plus 6.85% of 23 $1,616,450 excess over $269,300 24 Over $1,616,450 $108,804 plus 8.82% of excess over 25 $1,616,450 26 (iv) For taxable years beginning in two thousand twenty-one the 27 following rates shall apply: 28 If the New York taxable income is: The tax is: 29 Not over $12,800 4% of the New York taxable income 30 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 31 $12,800 32 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 33 $17,650 34 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 35 $20,900 36 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 37 $32,200 38 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 39 $107,650 40 Over $269,300 but not over $16,304 plus 6.85% of 41 $1,616,450 excess over $269,300 42 Over $1,616,450 $108,584 plus 8.82% of excess over 43 $1,616,450 44 (v) For taxable years beginning in two thousand twenty-two the follow- 45 ing rates shall apply: 46 If the New York taxable income is: The tax is: 47 Not over $12,800 4% of the New York taxable income 48 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 49 $12,800 50 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 51 $17,650 52 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 53 $20,900 54 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 55 $107,650 56 Over $269,300 but not over $16,079 plus 6.85% of excessS. 1509--A 32 A. 2009--A 1 $1,616,450 over $269,300 2 Over $1,616,450 $108,359 plus 8.82% of excess over 3 $1,616,450 4 (vi) For taxable years beginning in two thousand twenty-three the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $12,800 4% of the New York taxable income 8 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 9 $12,800 10 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 11 $17,650 12 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 13 $20,900 14 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 15 $107,650 16 Over $269,300 but not over $15,845 plus 6.85% of excess 17 $1,616,450 over $269,300 18 Over $1,616,450 $108,125 plus 8.82% of excess over 19 $1,616,450 20 (vii) For taxable years beginning in two thousand twenty-four the 21 following rates shall apply: 22 If the New York taxable income is: The tax is: 23 Not over $12,800 4% of the New York taxable income 24 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 25 $12,800 26 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 27 $17,650 28 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 29 $20,900 30 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 31 $107,650 32 Over $269,300 but not over $15,612 plus 6.85% of excess 33 $1,616,450 over $269,300 34 Over $1,616,450 $107,892 plus 8.82% of excess over 35 $1,616,450 36 § 3. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of 37 paragraph 1 of subsection (c) of section 601 of the tax law, as added by 38 section 3 of part R of chapter 59 of the laws of 2017, is amended to 39 read as follows: 40 (iii) For taxable years beginning in two thousand twenty the following 41 rates shall apply: 42 If the New York taxable income is: The tax is: 43 Not over $8,500 4% of the New York taxable income 44 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 45 $8,500 46 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 47 $11,700 48 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 49 $13,900 50 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 51 $21,400 52 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 53 $80,650 54 Over $215,400 but not over $13,288 plus 6.85% of excess 55 $1,077,550 over $215,400 56 Over $1,077,550 $72,345 plus 8.82% of excess overS. 1509--A 33 A. 2009--A 1 $1,077,550 2 (iv) For taxable years beginning in two thousand twenty-one the 3 following rates shall apply: 4 If the New York taxable income is: The tax is: 5 Not over $8,500 4% of the New York taxable income 6 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 7 $8,500 8 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 9 $11,700 10 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 11 $13,900 12 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 13 $21,400 14 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 15 $80,650 16 Over $215,400 but not over $13,109 plus 6.85% of excess 17 $1,077,550 over $215,400 18 Over $1,077,550 $72,166 plus 8.82% of excess over 19 $1,077,550 20 (v) For taxable years beginning in two thousand twenty-two the follow- 21 ing rates shall apply: 22 If the New York taxable income is: The tax is: 23 Not over $8,500 4% of the New York taxable income 24 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 25 $8,500 26 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 27 $11,700 28 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 29 $13,900 30 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 31 $80,650 32 Over $215,400 but not over $12,926 plus 6.85% of excess 33 $1,077,550 over $215,400 34 Over $1,077,550 $71,984 plus 8.82% of excess over 35 $1,077,550 36 (vi) For taxable years beginning in two thousand twenty-three the 37 following rates shall apply: 38 If the New York taxable income is: The tax is: 39 Not over $8,500 4% of the New York taxable income 40 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 41 $8,500 42 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 43 $11,700 44 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 45 $13,900 46 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 47 $80,650 48 Over $215,400 but not over $12,738 plus 6.85% of excess 49 $1,077,550 over $215,400 50 Over $1,077,550 $71,796 plus 8.82% of excess over 51 $1,077,550 52 (vii) For taxable years beginning in two thousand twenty-four the 53 following rates shall apply: 54 If the New York taxable income is: The tax is: 55 Not over $8,500 4% of the New York taxable income 56 Over $8,500 but not over $11,700 $340 plus 4.5% of excess overS. 1509--A 34 A. 2009--A 1 $8,500 2 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 3 $11,700 4 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 5 $13,900 6 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 7 $80,650 8 Over $215,400 but not over $12,550 plus 6.85% of excess 9 $1,077,550 over $215,400 10 Over $1,077,550 $71,608 plus 8.82% of excess over 11 $1,077,550 12 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 13 601 of the tax law, as amended by section 4 of part R of chapter 59 of 14 the laws of 2017, is amended to read as follows: 15 (D) The tax table benefit is the difference between (i) the amount of 16 taxable income set forth in the tax table in paragraph one of subsection 17 (a) of this section not subject to the 8.82 percent rate of tax for the 18 taxable year multiplied by such rate and (ii) the dollar denominated tax 19 for such amount of taxable income set forth in the tax table applicable 20 to the taxable year in paragraph one of subsection (a) of this section 21 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 22 of this paragraph. The fraction for this subparagraph is computed as 23 follows: the numerator is the lesser of fifty thousand dollars or the 24 excess of New York adjusted gross income for the taxable year over two 25 million dollars and the denominator is fifty thousand dollars. This 26 subparagraph shall apply only to taxable years beginning on or after 27 January first, two thousand twelve and before January first, two thou- 28 sand [twenty] twenty-five. 29 § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 30 601 of the tax law, as amended by section 5 of part R of chapter 59 of 31 the laws of 2017, is amended to read as follows: 32 (C) The tax table benefit is the difference between (i) the amount of 33 taxable income set forth in the tax table in paragraph one of subsection 34 (b) of this section not subject to the 8.82 percent rate of tax for the 35 taxable year multiplied by such rate and (ii) the dollar denominated tax 36 for such amount of taxable income set forth in the tax table applicable 37 to the taxable year in paragraph one of subsection (b) of this section 38 less the sum of the tax table benefits in subparagraphs (A) and (B) of 39 this paragraph. The fraction for this subparagraph is computed as 40 follows: the numerator is the lesser of fifty thousand dollars or the 41 excess of New York adjusted gross income for the taxable year over one 42 million five hundred thousand dollars and the denominator is fifty thou- 43 sand dollars. This subparagraph shall apply only to taxable years begin- 44 ning on or after January first, two thousand twelve and before January 45 first, two thousand [twenty] twenty-five. 46 § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 47 601 of the tax law, as amended by section 6 of part R of chapter 59 of 48 the laws of 2017, is amended to read as follows: 49 (C) The tax table benefit is the difference between (i) the amount of 50 taxable income set forth in the tax table in paragraph one of subsection 51 (c) of this section not subject to the 8.82 percent rate of tax for the 52 taxable year multiplied by such rate and (ii) the dollar denominated tax 53 for such amount of taxable income set forth in the tax table applicable 54 to the taxable year in paragraph one of subsection (c) of this section 55 less the sum of the tax table benefits in subparagraphs (A) and (B) of 56 this paragraph. The fraction for this subparagraph is computed asS. 1509--A 35 A. 2009--A 1 follows: the numerator is the lesser of fifty thousand dollars or the 2 excess of New York adjusted gross income for the taxable year over one 3 million dollars and the denominator is fifty thousand dollars. This 4 subparagraph shall apply only to taxable years beginning on or after 5 January first, two thousand twelve and before January first, two thou- 6 sand [twenty] twenty-five. 7 § 7. This act shall take effect immediately. 8 PART Q 9 Section 1. Subsection (g) of section 615 of the tax law, as amended by 10 section 1 of part S of chapter 59 of the laws of 2017, is amended to 11 read as follows: 12 (g) Notwithstanding subsection (a) of this section, the New York item- 13 ized deduction for charitable contributions shall be the amount allowed 14 under section one hundred seventy of the internal revenue code, as modi- 15 fied by paragraph nine of subsection (c) of this section and as limited 16 by this subsection. (1) With respect to an individual whose New York 17 adjusted gross income is over one million dollars and no more than ten 18 million dollars, the New York itemized deduction shall be an amount 19 equal to fifty percent of any charitable contribution deduction allowed 20 under section one hundred seventy of the internal revenue code for taxa- 21 ble years beginning after two thousand nine and before two thousand 22 [twenty] twenty-five. With respect to an individual whose New York 23 adjusted gross income is over one million dollars, the New York itemized 24 deduction shall be an amount equal to fifty percent of any charitable 25 contribution deduction allowed under section one hundred seventy of the 26 internal revenue code for taxable years beginning in two thousand nine 27 or after two thousand [nineteen] twenty-four. 28 (2) With respect to an individual whose New York adjusted gross income 29 is over ten million dollars, the New York itemized deduction shall be an 30 amount equal to twenty-five percent of any charitable contribution 31 deduction allowed under section one hundred seventy of the internal 32 revenue code for taxable years beginning after two thousand nine and 33 ending before two thousand [twenty] twenty-five. 34 § 2. Subdivision (g) of section 11-1715 of the administrative code of 35 the city of New York, as amended by section 2 of part S of chapter 59 of 36 the laws of 2017, is amended to read as follows: 37 (g) Notwithstanding subdivision (a) of this section, the city itemized 38 deduction for charitable contributions shall be the amount allowed under 39 section one hundred seventy of the internal revenue code, as limited by 40 this subdivision. (1) With respect to an individual whose New York 41 adjusted gross income is over one million dollars but no more than ten 42 million dollars, the New York itemized deduction shall be an amount 43 equal to fifty percent of any charitable contribution deduction allowed 44 under section one hundred seventy of the internal revenue code for taxa- 45 ble years beginning after two thousand nine and before two thousand 46 [twenty] twenty-five. With respect to an individual whose New York 47 adjusted gross income is over one million dollars, the New York itemized 48 deduction shall be an amount equal to fifty percent of any charitable 49 contribution deduction allowed under section one hundred seventy of the 50 internal revenue code for taxable years beginning in two thousand nine 51 or after two thousand [nineteen] twenty-four. 52 (2) With respect to an individual whose New York adjusted gross income 53 is over ten million dollars, the New York itemized deduction shall be an 54 amount equal to twenty-five percent of any charitable contributionS. 1509--A 36 A. 2009--A 1 deduction allowed under section one hundred seventy of the internal 2 revenue code for taxable years beginning after two thousand nine and 3 ending before two thousand [twenty] twenty-five. 4 § 3. This act shall take effect immediately and shall apply to taxable 5 years beginning on or after January 1, 2018. 6 PART R 7 Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax 8 law, as amended by chapter 315 of the laws of 2017, is amended to read 9 as follows: 10 (a) General. A taxpayer shall be allowed a credit against the tax 11 imposed by this article. Such credit, to be computed as hereinafter 12 provided, shall be allowed for bioheating fuel, used for space heating 13 or hot water production for residential purposes within this state 14 purchased before January first, two thousand [twenty] twenty-three. Such 15 credit shall be $0.01 per percent of biodiesel per gallon of bioheating 16 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. 17 Provided, however, that on or after January first, two thousand seven- 18 teen, this credit shall not apply to bioheating fuel that is less than 19 six percent biodiesel per gallon of bioheating fuel. 20 § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as 21 amended by chapter 315 of the laws of 2017, is amended to read as 22 follows: 23 (1) A taxpayer shall be allowed a credit against the tax imposed by 24 this article. Such credit, to be computed as hereinafter provided, shall 25 be allowed for bioheating fuel, used for space heating or hot water 26 production for residential purposes within this state and purchased on 27 or after July first, two thousand six and before July first, two thou- 28 sand seven and on or after January first, two thousand eight and before 29 January first, two thousand [twenty] twenty-three. Such credit shall be 30 $0.01 per percent of biodiesel per gallon of bioheating fuel, not to 31 exceed twenty cents per gallon, purchased by such taxpayer. Provided, 32 however, that on or after January first, two thousand seventeen, this 33 credit shall not apply to bioheating fuel that is less than six percent 34 biodiesel per gallon of bioheating fuel. 35 § 3. This act shall take effect immediately. 36 PART S 37 Section 1. Subdivision (e) of section 23 of the part U of chapter 61 38 of the laws of 2011, amending the real property tax law and other laws 39 relating to establishing standards for electronic tax administration is 40 REPEALED. 41 § 2. This act shall take effect immediately. 42 PART T 43 Section 1. Subdivision 3 of section 77 of the cooperative corporations 44 law, as amended by chapter 429 of the laws of 1992, is amended to read 45 as follows: 46 3. Such annual fee shall be paid for each calendar year on the 47 fifteenth day of March next succeeding the close of such calendar year 48 but shall not be payable after January first, two thousand twenty; 49 provided, however, that cooperative corporations described in subdivi- 50 sions one or two of this section shall continue to not be subject to theS. 1509--A 37 A. 2009--A 1 franchise, license, and corporation taxes referenced in such subdivi- 2 sions or, in the case of cooperative cooperations described in subdivi- 3 sion two of this section, the tax imposed under section one-hundred 4 eighty-six-a of the tax law. 5 § 2. Section 66 of the rural electric cooperative law, as amended by 6 chapter 888 of the laws of 1983, is amended to read as follows: 7 § 66. License fee in lieu of all franchise, excise, income, corpo- 8 ration and sales and compensating use taxes. Each cooperative and 9 foreign corporation doing business in this state pursuant to this chap- 10 ter shall pay annually, on or before the first day of July, to the state 11 tax commission, a fee of ten dollars, but shall be exempt from all other 12 franchise, excise, income, corporation and sales and compensating use 13 taxes whatsoever. The exemption from the sales and compensating use 14 taxes provided by this section shall not apply to the taxes imposed 15 pursuant to section eleven hundred seven or eleven hundred eight of the 16 tax law. Nothing contained in this section shall be deemed to exempt 17 such corporations from collecting and paying over sales and compensating 18 use taxes on retail sales of tangible personal property and services 19 made by such corporations to purchasers required to pay such taxes 20 imposed pursuant to article twenty-eight or authorized pursuant to the 21 authority of article twenty-nine of the tax law. Such annual fee shall 22 not be payable after January first, two thousand twenty. 23 § 3. This act shall take effect immediately. 24 PART U 25 Section 1. Paragraph (e) of subdivision 26 of section 210-B of the tax 26 law, as amended by section 2 of part RR of chapter 59 of the laws of 27 2018, is amended to read as follows: 28 (e) [To] Except in the case of a qualified rehabilitation project 29 undertaken within a state park, state historic site, or other land owned 30 by the state, that is under the jurisdiction of the office of parks, 31 recreation and historic preservation, to be eligible for the credit 32 allowable under this subdivision, the rehabilitation project shall be in 33 whole or in part located within a census tract which is identified as 34 being at or below one hundred percent of the state median family income 35 as calculated as of April first of each year using the most recent five 36 year estimate from the American community survey published by the United 37 States Census bureau. If there is a change in the most recent five year 38 estimate, a census tract that qualified for eligibility under this 39 program before information about the change was released will remain 40 eligible for a credit under this subdivision for an additional two 41 calendar years. 42 § 2. Paragraph 5 of subsection (oo) of section 606 of the tax law, as 43 amended by section 1 of part RR of chapter 59 of the laws of 2018, is 44 amended to read as follows: 45 (5) [To] Except in the case of a qualified rehabilitation project 46 undertaken within a state park, state historic site, or other land owned 47 by the state, that is under the jurisdiction of the office of parks, 48 recreation and historic preservation, to be eligible for the credit 49 allowable under this subsection the rehabilitation project shall be in 50 whole or in part located within a census tract which is identified as 51 being at or below one hundred percent of the state median family income 52 as calculated as of April first of each year using the most recent five 53 year estimate from the American community survey published by the United 54 States Census bureau. If there is a change in the most recent five yearS. 1509--A 38 A. 2009--A 1 estimate, a census tract that qualified for eligibility under this 2 program before information about the change was released will remain 3 eligible for a credit under this subsection for an additional two calen- 4 dar years. 5 § 3. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as 6 amended by section 3 of part RR of chapter 59 of the laws of 2018, is 7 amended to read as follows: 8 (5) [To] Except in the case of a qualified rehabilitation project 9 undertaken within a state park, state historic site, or other land owned 10 by the state, that is under the jurisdiction of the office of parks, 11 recreation and historic preservation, to be eligible for the credit 12 allowable under this subdivision, the rehabilitation project shall be in 13 whole or in part located within a census tract which is identified as 14 being at or below one hundred percent of the state median family income 15 as calculated as of April first of each year using the most recent five 16 year estimate from the American community survey published by the United 17 States Census bureau. If there is a change in the most recent five year 18 estimate, a census tract that qualified for eligibility under this 19 program before information about the change was released will remain 20 eligible for a credit under this subdivision for an additional two 21 calendar years. 22 § 4. This act shall take effect immediately and apply to taxable years 23 beginning on and after January 1, 2020. 24 PART V 25 Section 1. Subdivision (jj) of section 1115 of the tax law, as added 26 by section 1 of part UU of chapter 59 of the laws of 2015, is amended to 27 read as follows: 28 (jj) Tangible personal property or services otherwise taxable under 29 this article sold to a related person shall not be subject to the taxes 30 imposed by section eleven hundred five of this article or the compensat- 31 ing use tax imposed under section eleven hundred ten of this article 32 where the purchaser can show that the following conditions have been met 33 to the extent they are applicable: (1)(i) the vendor and the purchaser 34 are referenced as either a "covered company" as described in section 35 243.2(f) or a "material entity" as described in section 243.2(l) of the 36 Code of Federal Regulations in a resolution plan that has been submitted 37 to an agency of the United States for the purpose of satisfying subpara- 38 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 39 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 40 successor law, or (ii) the vendor and the purchaser are separate legal 41 entities pursuant to a divestiture directed pursuant to subparagraph 5 42 of paragraph (d) of section one hundred sixty-five of such act or any 43 successor law; (2) the sale would not have occurred between such related 44 entities were it not for such resolution plan or divestiture; and (3) in 45 acquiring such property or services, the vendor did not claim an 46 exemption from the tax imposed by this state or another state based on 47 the vendor's intent to resell such services or property. A person is 48 related to another person for purposes of this subdivision if the person 49 bears a relationship to such person described in section two hundred 50 sixty-seven of the internal revenue code. The exemption provided by this 51 subdivision shall not apply to sales made, services rendered, or uses 52 occurring after June thirtieth, two thousand [nineteen] twenty-one, 53 except with respect to sales made, services rendered, or uses occurring 54 pursuant to binding contracts entered into on or before such date; butS. 1509--A 39 A. 2009--A 1 in no case shall such exemption apply after June thirtieth, two thousand 2 twenty-four. 3 § 2. This act shall take effect immediately. 4 PART W 5 Section 1. The mental hygiene law is amended by adding a new section 6 32.38 to read as follows: 7 § 32.38 Power to administer the recovery tax credit program. 8 (a) Authorization. The commissioner is authorized to establish and 9 administer the recovery tax credit program to provide tax incentives to 10 certified employers for employing eligible individuals in recovery from 11 a substance use disorder in part-time and full-time positions in the 12 state. The commissioner is authorized to allocate up to two million 13 dollars of tax credits annually for the recovery tax credit program 14 beginning in the year two thousand twenty. 15 (b) Definitions. 1. The term "certified employer" means an employer 16 that has received a certificate of tax credit from the commissioner 17 after the commissioner has determined that the employer: 18 (i) provides a recovery supportive environment evidenced by a formal 19 working relationship with a local recovery community organization to 20 provide support for employers including any necessary assistance in the 21 hiring process of eligible individuals in recovery from a substance use 22 disorder and training for employers or supervisors; and 23 (ii) fulfills the eligibility criteria set forth in this section and 24 by the commissioner to participate in the recovery tax credit program 25 established in this section. 26 2. The term "eligible individual" means an individual with a substance 27 use disorder as that term is defined in section 1.03 of this chapter who 28 is in a state of wellness where there is an abatement of signs and symp- 29 toms that characterize active addiction and has demonstrated to the 30 qualified employer's satisfaction that he or she has completed a course 31 of treatment for such substance use disorder. 32 (c) Application and approval process. 1. To participate in the program 33 established by this section, an employer must, in a form prescribed by 34 the commissioner, apply annually to the office by January fifteenth to 35 claim credit based on eligible individuals employed during the preceding 36 calendar year. As part of such application, an employer must: 37 (i) Agree to allow the department of taxation and finance to share its 38 tax information with the office of alcoholism and substance abuse 39 services. However, any information shared because of this agreement 40 shall not be available for disclosure or inspection under the state 41 freedom of information law. 42 (ii) Allow the office of alcoholism and substance abuse services and 43 its agents access to all books and records the department may require to 44 monitor compliance with program eligibility requirements. 45 (iii) Demonstrate that the employer has satisfied program eligibility 46 requirements and provided all the information necessary, including the 47 number of hours worked by any eligible individual, for the commissioner 48 to compute an actual amount of credit allowed. 49 2. (i) After reviewing the application and finding it sufficient, the 50 commissioner shall issue a certificate of tax credit by March thirty- 51 first. Such certificate shall include, but not be limited to, the name 52 and employer identification number of the certified employer, the amount 53 of credit that the certified employer may claim, and any other informa- 54 tion the commissioner of taxation and finance determines is necessary.S. 1509--A 40 A. 2009--A 1 (ii) In determining the amount of credit that any employer may claim, 2 the commissioner shall review all claims submitted for credit by employ- 3 ers and, to the extent that the total amount claimed by employers 4 exceeds the amount allocated for the program in that calendar year, 5 shall issue credits on a pro-rata basis corresponding to each claimant's 6 share of the total claimed amount. 7 (d) Eligibility. A certified employer shall be entitled to a tax cred- 8 it equal to the product of one dollar and the number of hours worked by 9 each eligible individual during such individual's period of eligibility. 10 The credit shall not be allowed unless the eligible individual has 11 worked in state for a minimum of five hundred hours for the certified 12 employer, and the credit cannot exceed two thousand dollars per eligible 13 individual employed by the certified employer in the state. The period 14 of eligibility for each such employee starts on the day the employee is 15 hired and ends on December thirty-first of the immediately succeeding 16 calendar year or the last day of the employee's employment by the certi- 17 fied employer, whichever comes first. If an employee has worked in 18 excess of five hundred hours between the date of hiring and December 19 thirty-first of that year, an employer can elect to compute and claim a 20 credit for such employee in that year based on the hours worked by 21 December thirty-first. Alternatively, the employer may elect to include 22 such individual in the computation of the credit in the year immediately 23 succeeding the year in which the employee was hired. In such case, the 24 credit shall be computed on the basis of all hours worked by such eligi- 25 ble individual from the date of hire to the earlier of the last day of 26 employment or December thirty-first of the succeeding year. However, in 27 no event may an employee generate credit for hours worked in excess of 28 two thousand hours. An employer may claim credit only once with respect 29 to any eligible individual and may not aggregate hours of two or more 30 employees to reach the minimum number of hours. 31 (e) Duties of the commissioner. The commissioner shall annually 32 provide to the commissioner of the department of taxation and finance 33 information about the program including, but not limited to, the number 34 of certified employers then participating in the program, unique identi- 35 fying information for each certified employer, the number of eligible 36 individuals employed by each certified employer, unique identifying 37 information for each eligible individual employed by the certified 38 employers, the number of hours worked by such eligible individuals, the 39 total dollar amount of claims for credit, and the dollar amount of cred- 40 it granted to each certified employer. 41 (f) Certified employer's taxable year. If the certified employer's 42 taxable year is a calendar year, the employer shall be entitled to claim 43 the credit as shown on the certificate of tax credit on the calendar 44 year return for which the certificate of tax credit was issued. If the 45 certified employer's taxable year is a fiscal year, the employer shall 46 be entitled to claim the credit as shown on the certificate of tax cred- 47 it on the return for the fiscal year that includes the last day of the 48 calendar year covered by the certificate of tax credit. 49 (g) Cross references. For application of the credit provided for in 50 this section, see the following provisions of the tax law: 51 1. Article 9-A: Section 210-B, subdivision 53. 52 2. Article 22: Section 606, subsection (jjj). 53 3. Article 33: Section 1511, subdivision (dd). 54 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 55 sion 53 to read as follows:S. 1509--A 41 A. 2009--A 1 53. Recovery tax credit. (a) Allowance of credit. A taxpayer that is a 2 certified employer pursuant to section 32.38 of the mental hygiene law 3 that has received a certificate of tax credit from the commissioner of 4 the office of alcoholism and substance abuse services shall be allowed a 5 credit against the tax imposed by this article equal to the amount shown 6 on such certificate of tax credit. A taxpayer that is a partner in a 7 partnership or member of a limited liability company that has been 8 certified by the commissioner of the office of alcoholism and substance 9 abuse services as a qualified employer pursuant to section 32.38 of the 10 mental hygiene law shall be allowed its pro rata share of the credit 11 earned by the partnership or limited liability company. 12 (b) Application of credit. The credit allowed under this subdivision 13 for any taxable year may not reduce the tax due for that year to less 14 than the amount prescribed in paragraph (d) of subdivision one of 15 section two hundred ten of this article. However, if the amount of the 16 credit allowed under this subdivision for any taxable year reduces the 17 tax to that amount or if the taxpayer otherwise pays tax based on the 18 fixed dollar minimum amount, any amount of credit not deductible in that 19 taxable year will be treated as an overpayment of tax to be credited or 20 refunded in accordance with the provisions of section one thousand 21 eighty-six of this chapter. Provided, however, no interest will be paid 22 thereon. 23 (c) Tax return requirement. The taxpayer shall be required to attach 24 to its tax return, in the form prescribed by the commissioner, proof of 25 receipt of its certificate of tax credit issued by the commissioner of 26 the office of alcoholism and substance abuse services pursuant to 27 section 32.38 of the mental hygiene law. 28 § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 29 of the tax law is amended by adding a new clause (xliv) to read as 30 follows: 31 (xliv) Recovery tax credit under Amount of credit under 32 subsection (jjj) subdivision fifty-three of 33 section two hundred ten-B 34 § 4. Section 606 of the tax law is amended by adding a new subsection 35 (jjj) to read as follows: 36 (jjj) Recovery tax credit. (1) Allowance of credit. A taxpayer that is 37 a qualified employer pursuant to section 32.38 of the mental hygiene law 38 that has received a certificate of tax credit from the commissioner of 39 the office of alcoholism and substance abuse services shall be allowed a 40 credit against the tax imposed by this article equal to the amount shown 41 on such certificate of tax credit. A taxpayer that is a partner in a 42 partnership, member of a limited liability company or shareholder in an 43 S corporation that has been certified by the commissioner of the office 44 of alcoholism and substance abuse services as a qualified employer 45 pursuant to section 32.38 of the mental hygiene law shall be allowed its 46 pro rata share of the credit earned by the partnership, limited liabil- 47 ity company or S corporation. 48 (2) Overpayment. If the amount of the credit allowed under this 49 subsection for any taxable year exceeds the taxpayer's tax for the taxa- 50 ble year, the excess shall be treated as an overpayment of tax to be 51 credited or refunded in accordance with the provisions of section six 52 hundred eighty-six of this article, provided, however, no interest will 53 be paid thereon.S. 1509--A 42 A. 2009--A 1 (3) Tax return requirement. The taxpayer shall be required to attach 2 to its tax return, in the form prescribed by the commissioner, proof of 3 receipt of its certificate of tax credit issued by the commissioner of 4 the office of alcoholism and substance abuse services pursuant to 5 section 32.38 of the mental hygiene law. 6 § 5. Section 1511 of the tax law is amended by adding a new subdivi- 7 sion (dd) to read as follows: 8 (dd) Recovery tax credit. (1) Allowance of credit. A taxpayer that is 9 a qualified employer pursuant to section 32.38 of the mental hygiene law 10 that has received a certificate of tax credit from the commissioner of 11 the office of alcoholism and substance abuse services shall be allowed a 12 credit against the tax imposed by this article equal to the amount shown 13 on such certificate of tax credit. A taxpayer that is a partner in a 14 partnership or member of a limited liability company that has been 15 certified by the commissioner of the office of alcoholism and substance 16 abuse services as a qualified employer pursuant to section 32.38 of the 17 mental hygiene law shall be allowed its pro rata share of the credit 18 earned by the partnership or limited liability company. 19 (2) Application of credit. The credit allowed under this subdivision 20 for any taxable year shall not reduce the tax due for such year to less 21 than the minimum tax fixed by paragraph four of subdivision (a) of 22 section fifteen hundred two of this article or by section fifteen 23 hundred two-a of this article, whichever is applicable. However, if the 24 amount of credit allowed under this subdivision for any taxable year 25 reduces the tax to such amount, then any amount of credit thus not 26 deductible in such taxable year shall be treated as an overpayment of 27 tax to be credited or refunded in accordance with the provisions of 28 section one thousand eighty-six of this chapter. Provided, however, the 29 provisions of subsection (c) of section one thousand eighty-eight of 30 this chapter notwithstanding, no interest shall be paid thereon. 31 (3) Tax return requirement. The taxpayer shall be required to attach 32 to its tax return in the form prescribed by the commissioner, proof of 33 receipt of its certificate of tax credit issued by the commissioner of 34 the office of alcoholism and substance abuse services pursuant to 35 section 32.38 of the mental hygiene law. 36 § 6. This act shall take effect immediately and shall apply to taxable 37 years beginning on and after January 1, 2020 and shall apply to those 38 eligible individuals hired after this act shall take effect. 39 PART X 40 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax 41 law is amended by adding a new subparagraph 20 to read as follows: 42 (20) Any amount excepted, for purposes of subsection (a) of section 43 one hundred eighteen of the internal revenue code, from the term 44 "contribution to the capital of the taxpayer" by paragraph two of 45 subsection (b) of section one hundred eighteen of the internal revenue 46 code. 47 § 2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 48 amended by adding a new subparagraph (T) to read as follows: 49 (T) Any amount excepted, for purposes of subsection (a) of section one 50 hundred eighteen of the internal revenue code, from the term "contrib- 51 ution to the capital of the taxpayer" by paragraph two of subsection (b) 52 of section one hundred eighteen of the internal revenue code.S. 1509--A 43 A. 2009--A 1 § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- 2 trative code of the city of New York is amended by adding a new subpara- 3 graph 14 to read as follows: 4 (14) any amount excepted, for purposes of subsection (a) of section 5 one hundred eighteen of the internal revenue code, from the term 6 "contribution to the capital of the taxpayer" by paragraph two of 7 subsection (b) of section one hundred eighteen of the internal revenue 8 code. 9 § 4. This act shall take effect immediately and shall apply to taxable 10 years beginning on or after January 1, 2018. 11 PART Y 12 Section 1. The tax law is amended by adding a new section 44 to read 13 as follows: 14 § 44. Investment management services. (a) For purposes of this 15 section, the term "investment management services" to a partnership, S 16 corporation or entity includes (1) rendering investment advice regarding 17 the purchase or sale of securities as defined in paragraph two of 18 subsection (c) of section four hundred seventy-five of the internal 19 revenue code without regard to the last sentence thereof, real estate 20 held for rental or investment, interests in partnerships, commodities as 21 defined in paragraph two of subsection (e) of section four hundred 22 seventy-five of the internal revenue code, or options or derivative 23 contracts with respect to any of the foregoing; (2) managing, acquiring, 24 or disposing of any such asset; (3) arranging financing with respect to 25 the acquisition of any such asset; and (4) related activities in support 26 of any service described in paragraphs one, two, or three of this subdi- 27 vision. 28 (b) Special rule for partnerships and S corporations. Notwithstanding 29 any state or federal law to the contrary: 30 (1) where a partner performs investment management services for the 31 partnership, the partner will not be treated as a partner for purposes 32 of this chapter with respect to the amount of the partner's distributive 33 share of income, gain, loss and deduction, including any guaranteed 34 payments, that is in excess of the amount such distributive share would 35 have been if the partner had performed no investment management services 36 for the partnership. Instead, such excess amount shall be treated for 37 purposes of article nine-A of this chapter as a business receipt for 38 services and for purposes of article twenty-two of this chapter as 39 income attributable to a trade, business, profession or occupation. 40 Provided, however, the amount of the distributive share that would have 41 been determined if the partner performed no investment management 42 services shall not be less than zero. 43 (2) where a shareholder performs investment management services for 44 the S corporation, the shareholder will not be treated as a shareholder 45 for purposes of this chapter with respect to the amount of the share- 46 holder's pro rata share of income, gain, loss and deduction that is in 47 excess of the amount such pro rata share would have been if the share- 48 holder had performed no investment management services. Instead, such 49 excess amount shall be treated for purposes of article twenty-two of 50 this chapter as income attributable to a trade, business, profession or 51 occupation. Provided, however, the amount of the pro rata share that 52 would have been determined if the shareholder performed no services 53 shall not be less than zero.S. 1509--A 44 A. 2009--A 1 (3) A partner or shareholder will not be deemed to be providing 2 investment management services under this section if at least eighty 3 percent of the average fair market value of the assets of the partner- 4 ship or S corporation during the taxable year consist of real estate 5 held for rental or investment. 6 (c) In addition to any other taxes or surcharges imposed pursuant to 7 article nine-A or twenty-two of this chapter, any corporation, partner 8 or shareholder providing investment management services shall be subject 9 to an additional tax, referred to as the "carried interest fairness 10 fee". Such carried interest fairness fee shall be equal to seventeen 11 percent of the excess amount determined pursuant to subdivision (b) of 12 this section; provided, however, (i) in the case of a corporation or 13 shareholder of an S corporation providing such investment management 14 services, such fee shall be equal to seventeen percent of the excess 15 amount apportioned to the state by applying the corporation's or S 16 corporation's apportionment factor determined under section two hundred 17 ten-A of this chapter; (ii) in the case of a nonresident partner provid- 18 ing such investment management services, such fee shall be equal to 19 seventeen percent of the excess amount derived from New York sources as 20 determined under section six hundred thirty-two of this chapter. Such 21 carried interest fairness fee shall be administered in accordance with 22 article nine-A or twenty-two of this chapter, as applicable, until such 23 time as the commissioner of taxation and finance has notified the legis- 24 lative bill drafting commission that federal legislation has been 25 enacted that treats the provision of investment management services for 26 federal tax purposes substantially the same as provided in this section. 27 § 2. Paragraph (a) of subdivision 6 of section 208 of the tax law, as 28 amended by section 5 of part T of chapter 59 of the laws of 2015, is 29 amended to read as follows: 30 (a) (i) The term "investment income" means income, including capital 31 gains in excess of capital losses, from investment capital, to the 32 extent included in computing entire net income, less, (A) in the 33 discretion of the commissioner, any interest deductions allowable in 34 computing entire net income which are directly or indirectly attribut- 35 able to investment capital or investment income, and (B) any net capital 36 gain included in federal taxable income that must be recharacterized as 37 a business receipt pursuant to section forty-four of this chapter; 38 provided, however, that in no case shall investment income exceed entire 39 net income. (ii) If the amount of interest deductions subtracted under 40 subparagraph (i) of this paragraph exceeds investment income, the excess 41 of such amount over investment income must be added back to entire net 42 income. (iii) If the taxpayer's investment income determined without 43 regard to the interest deductions subtracted under subparagraph (i) of 44 this paragraph comprises more than eight percent of the taxpayer's 45 entire net income, investment income determined without regard to such 46 interest deductions cannot exceed eight percent of the taxpayer's entire 47 net income. 48 § 3. Subsection (b) of section 617 of the tax law, as amended by chap- 49 ter 606 of the laws of 1984, is amended to read as follows: 50 (b) Character of items. [Each] Except as provided in section forty- 51 four of this chapter, each item of partnership and S corporation income, 52 gain, loss, or deduction shall have the same character for a partner or 53 shareholder under this article as for federal income tax purposes. Where 54 an item is not characterized for federal income tax purposes, it shall 55 have the same character for a partner or shareholder as if realized 56 directly from the source from which realized by the partnership or SS. 1509--A 45 A. 2009--A 1 corporation or incurred in the same manner as incurred by the partner- 2 ship or S corporation. 3 § 4. Subsection (d) of section 631 of the tax law, as amended by chap- 4 ter 28 of the laws of 1987, is amended to read as follows: 5 (d) Purchase and sale for own account.-- A nonresident, other than a 6 dealer holding property primarily for sale to customers in the ordinary 7 course of his or her trade or business or a partner or shareholder 8 performing investment management services as described in section 9 forty-four of this chapter, shall not be deemed to carry on a business, 10 trade, profession or occupation in this state solely by reason of the 11 purchase and sale of property or the purchase, sale or writing of stock 12 option contracts, or both, for his own account. 13 § 5. The opening paragraph of subsection (b) of section 632 of the tax 14 law, as amended by chapter 28 of the laws of 1987, is amended to read as 15 follows: 16 [In] Except as otherwise provided in section forty-four of this chap- 17 ter, in determining the sources of a nonresident partner's income, no 18 effect shall be given to a provision in the partnership agreement 19 which-- 20 § 6. For taxable years beginning on or after January 1, 2019 and 21 before January 1, 2020, (i) no addition to tax under subsection (c) of 22 section 685 or subsection (c) of section 1085 of the tax law shall be 23 imposed with respect to any underpayment attributable to the amendments 24 made by this act of any estimated taxes that are required to be paid 25 prior to the effective date of this act, provided that the taxpayer 26 timely made those payments; and (ii) the required installment of esti- 27 mated tax described in clause (ii) of subparagraph (B) of paragraph 3 of 28 subsection (c) of section 685 of the tax law, and the exception to addi- 29 tion for underpayment of estimated tax described in paragraph 1 or 2 of 30 subsection (d) of section 1085 of the tax law, in relation to the 31 preceding year's return, shall be calculated as if the amendments made 32 by this act had been in effect for that entire preceding year. 33 § 7. This act shall take effect upon the enactment into law by the 34 states of Connecticut, New Jersey, Massachusetts and Pennsylvania of 35 legislation having substantially the same effect as this act and the 36 enactments by such states have taken effect in each state and shall 37 apply for taxable years beginning on or after such date; provided, 38 however, if the states of Connecticut, New Jersey, Massachusetts and 39 Pennsylvania have already enacted such legislation, this act shall take 40 effect immediately and shall apply for taxable years beginning on or 41 after January 1, 2019; provided further that the commissioner of taxa- 42 tion and finance shall notify the legislative bill drafting commission 43 upon the enactment of such legislation by the states of Connecticut, New 44 Jersey, Massachusetts and Pennsylvania in order that such commission may 45 maintain an accurate and timely effective data base of the official text 46 of the laws of the state of New York in furtherance of effectuating the 47 provisions of section 44 of the legislative law and section 70-b of the 48 public officers law. 49 PART Z 50 Section 1. Paragraph 3 of subdivision (a) and paragraphs 2 and 5 of 51 subdivision (c) of section 43 of the tax law, as added by section 7 of 52 part K of chapter 59 of the laws of 2017, are amended to read as 53 follows:S. 1509--A 46 A. 2009--A 1 (3) The total amount of credit allowable to a qualified life sciences 2 company, or, if the life sciences company is properly included or 3 required to be included in a combined report, to the combined group, 4 taken in the aggregate, shall not exceed five hundred thousand dollars 5 in any taxable year. If the [life sciences company] taxpayer is a part- 6 ner in a partnership that is a life sciences company or a shareholder of 7 a New York S corporation that is a life sciences company, then the total 8 amount of credit allowable shall be applied at the entity level, so that 9 the total amount of credit allowable to all the partners or shareholders 10 of each such entity, taken in the aggregate, does not exceed five 11 hundred thousand dollars in any taxable year. 12 (2) "New business" means any business that qualifies as a new business 13 under either paragraph (f) of subdivision one of section two hundred 14 ten-B or paragraph ten of subsection [one] (a) of section six hundred 15 six of this chapter. 16 (5) "Related person" means a related person as defined in subparagraph 17 [(c)] (C) of paragraph three of subsection (b) of section 465 of the 18 internal revenue code. For this purpose, a "related person" shall 19 include an entity that would have qualified as a "related person" if it 20 had not been dissolved, liquidated, merged with another entity or other- 21 wise ceased to exist or operate. 22 § 2. Subdivision 5 of section 209 of the tax law, as amended by 23 section 5 of part A of chapter 59 of the laws of 2014, is amended to 24 read as follows: 25 5. For any taxable year of a real estate investment trust as defined 26 in section eight hundred fifty-six of the internal revenue code in which 27 such trust is subject to federal income taxation under section eight 28 hundred fifty-seven of such code, such trust shall be subject to a tax 29 computed under either paragraph (a) or (d) of subdivision one of section 30 two hundred ten of this chapter, whichever is greater, and shall not be 31 subject to any tax under article thirty-three of this chapter except for 32 a captive REIT required to file a combined return under subdivision (f) 33 of section fifteen hundred fifteen of this chapter. In the case of such 34 a real estate investment trust, including a captive REIT as defined in 35 section two of this chapter, the term "entire net income" means "real 36 estate investment trust taxable income" as defined in paragraph two of 37 subdivision (b) of section eight hundred fifty-seven (as modified by 38 section eight hundred fifty-eight) of the internal revenue code [plus39the amount taxable under paragraph three of subdivision (b) of section40eight hundred fifty-seven of such code], subject to the modifications 41 required by subdivision nine of section two hundred eight of this arti- 42 cle. 43 § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as 44 amended by chapter 760 of the laws of 1992, is amended to read as 45 follows: 46 (a) Except in accordance with proper judicial order or as otherwise 47 provided by law, it shall be unlawful for any tax commissioner, any 48 officer or employee of the department [of taxation and finance], or any 49 person who, pursuant to this section, is permitted to inspect any 50 report, or to whom any information contained in any report is furnished, 51 or any person engaged or retained by such department on an independent 52 contract basis, or any person who in any manner may acquire knowledge of 53 the contents of a report filed pursuant to this article, to divulge or 54 make known in any manner the amount of income or any particulars set 55 forth or disclosed in any report under this article. The officers 56 charged with the custody of such reports shall not be required toS. 1509--A 47 A. 2009--A 1 produce any of them or evidence of anything contained in them in any 2 action or proceeding in any court, except on behalf of the state or the 3 commissioner in an action or proceeding under the provisions of this 4 chapter or in any other action or proceeding involving the collection of 5 a tax due under this chapter to which the state or the commissioner is a 6 party or a claimant, or on behalf of any party to any action or proceed- 7 ing under the provisions of this article when the reports or facts shown 8 thereby are directly involved in such action or proceeding, in any of 9 which events the court may require the production of, and may admit in 10 evidence, so much of said reports or of the facts shown thereby as are 11 pertinent to the action or proceeding, and no more. The commissioner 12 may, nevertheless, publish a copy or a summary of any determination or 13 decision rendered after the formal hearing provided for in section one 14 thousand eighty-nine of this chapter. Nothing herein shall be construed 15 to prohibit the delivery to a corporation or its duly authorized repre- 16 sentative of a copy of any report filed by it, nor to prohibit the 17 publication of statistics so classified as to prevent the identification 18 of particular reports and the items thereof; or the publication of 19 delinquent lists showing the names of taxpayers who have failed to pay 20 their taxes at the time and in the manner provided by section two 21 hundred thirteen of this chapter together with any relevant information 22 which in the opinion of the commissioner may assist in the collection of 23 such delinquent taxes; or the inspection by the attorney general or 24 other legal representatives of the state of the report of any corpo- 25 ration which shall bring action to set aside or review the tax based 26 thereon, or against which an action or proceeding under this chapter has 27 been recommended by the commissioner of taxation and finance or the 28 attorney general or has been instituted; or the inspection of the 29 reports of any corporation by the comptroller or duly designated officer 30 or employee of the state department of audit and control, for purposes 31 of the audit of a refund of any tax paid by such corporation under this 32 article[; and nothing in this chapter shall be construed to prohibit the33publication of the issuer's allocation percentage of any corporation, as34such term "issuer's allocation percentage" is defined in subparagraph35one of paragraph (b) of subdivision three of section two hundred ten of36this article]. 37 § 4. Subdivision (a) of section 213-b of the tax law, as amended by 38 section 10 of part Q of chapter 60 of the laws of 2016, is amended to 39 read as follows: 40 (a) First installments for certain taxpayers.--In privilege periods of 41 twelve months ending at any time during the calendar year nineteen 42 hundred seventy and thereafter, every taxpayer subject to the tax 43 imposed by section two hundred nine of this chapter must pay with the 44 report required to be filed for the preceding privilege period, or with 45 an application for extension of the time for filing the report, for 46 taxable years beginning before January first, two thousand sixteen, and 47 must pay on or before the fifteenth day of the third month of such priv- 48 ilege periods, for taxable years beginning on or after January first, 49 two thousand sixteen, an amount equal to (i) twenty-five percent of the 50 second preceding year's tax if the second preceding year's tax exceeded 51 one thousand dollars but was equal to or less than one hundred thousand 52 dollars, or (ii) forty percent of the second preceding year's tax if the 53 second preceding year's tax exceeded one hundred thousand dollars. If 54 the second preceding year's tax under section two hundred nine of this 55 chapter exceeded one thousand dollars and the taxpayer is subject to the 56 tax surcharge imposed by section two hundred nine-B of this chapter, theS. 1509--A 48 A. 2009--A 1 taxpayer must also pay with the tax surcharge report required to be 2 filed for the second preceding privilege period, or with an application 3 for extension of the time for filing the report, for taxable years 4 beginning before January first, two thousand sixteen, and must pay on or 5 before the fifteenth day of the third month of such privilege periods, 6 for taxable years beginning on or after January first, two thousand 7 sixteen, an amount equal to (i) twenty-five percent of the tax surcharge 8 imposed for the second preceding year if the second preceding year's tax 9 was equal to or less than one hundred thousand dollars, or (ii) forty 10 percent of the tax surcharge imposed for the second preceding year if 11 the second preceding year's tax exceeded one hundred thousand dollars. 12 Provided, however, that every taxpayer that is [an] a New York S corpo- 13 ration must pay with the report required to be filed for the preceding 14 privilege period, or with an application for extension of the time for 15 filing the report, an amount equal to (i) twenty-five percent of the 16 preceding year's tax if the preceding year's tax exceeded one thousand 17 dollars but was equal to or less than one hundred thousand dollars, or 18 (ii) forty percent of the preceding year's tax if the preceding year's 19 tax exceeded one hundred thousand dollars. [If the preceding year's tax20under section two hundred nine of this article exceeded one thousand21dollars and such taxpayer that is an S corporation is subject to the tax22surcharge imposed by section two hundred nine-B of this article, the23taxpayer must also pay with the tax surcharge report required to be24filed for the preceding privilege period, or with an application for25extension of the time for filing the report, an amount equal to (i)26twenty-five percent of the tax surcharge imposed for the preceding year27if the preceding year's tax was equal equal to or less than one hundred28thousand dollars, or (ii) forty percent of the tax surcharge imposed for29the preceding year if the preceding year's tax exceeded one hundred30thousand dollars.] 31 § 5. Subdivision (e) of section 213-b of the tax law, as amended by 32 chapter 166 of the laws of 1991, the subdivision heading as amended by 33 section 10-b of part Q of chapter 60 of the laws of 2016, is amended to 34 read as follows: 35 (e) Interest on certain installments based on the second preceding 36 year's tax.--Notwithstanding the provisions of section one thousand 37 eighty-eight of this chapter or of section sixteen of the state finance 38 law, if an amount paid pursuant to subdivision (a) exceeds the tax or 39 tax surcharge, respectively, shown on the report required to be filed by 40 the taxpayer for the privilege period during which the amount was paid, 41 interest shall be allowed and paid on the amount by which the amount so 42 paid pursuant to such subdivision exceeds such tax or tax surcharge. In 43 the case of amounts so paid pursuant to subdivision (a), such interest 44 shall be allowed and paid at the overpayment rate set by the commission- 45 er of taxation and finance pursuant to section one thousand ninety-six 46 of this chapter, or if no rate is set, at the rate of six per centum per 47 annum from the date of payment of the amount so paid pursuant to such 48 subdivision to the fifteenth day of the [third] fourth month following 49 the close of the taxable year, provided, however, that no interest shall 50 be allowed or paid under this subdivision if the amount thereof is less 51 than one dollar or if such interest becomes payable solely because of a 52 carryback of a net operating loss in a subsequent privilege period. 53 § 6. Subdivision (a) of section 1503 of the tax law, as amended by 54 chapter 817 of the laws of 1987, is amended to read as follows: 55 (a) The entire net income of a taxpayer shall be its total net income 56 from all sources which shall be presumably the same as the life insur-S. 1509--A 49 A. 2009--A 1 ance company taxable income (which shall include, in the case of a stock 2 life insurance company [which] that has a balance, as determined as of 3 the close of such company's last taxable year beginning before January 4 first, two thousand eighteen, in an existing policyholders surplus 5 account, as such term is defined in section 815 of the internal revenue 6 code as such section was in effect for taxable years beginning before 7 January first, two thousand eighteen, the amount of [direct and indirect8distributions during the taxable year to shareholders from such account] 9 one-eighth of such balance), taxable income of a partnership or taxable 10 income, but not alternative minimum taxable income, as the case may be, 11 which the taxpayer is required to report to the United States treasury 12 department, for the taxable year or, in the case of a corporation exempt 13 from federal income tax (other than the tax on unrelated business taxa- 14 ble income imposed under section 511 of the internal revenue code) but 15 not exempt from tax under section fifteen hundred one, the taxable 16 income which such taxpayer would have been required to report but for 17 such exemption, except as hereinafter provided. 18 § 7. Paragraphs (a) and (b) of subdivision 4 of section 11-676 of the 19 administrative code of the city of New York are amended to read as 20 follows: 21 (a) The tax shown on the return of the taxpayer for the preceding 22 taxable year or the second preceding taxable year, as applicable with 23 respect to the taxpayer's declaration of estimated tax, if a return 24 showing a liability for tax was filed by the taxpayer for [the] such 25 preceding or second preceding taxable year and such preceding or second 26 preceding year was a taxable year of twelve months, or 27 (b) An amount equal to the tax computed at the rates applicable to the 28 taxable year, but otherwise on the basis of the facts shown on the 29 return of the taxpayer for, and the law applicable to, the preceding 30 taxable year or the second preceding taxable year, as applicable with 31 respect to the taxpayer's declaration of estimated tax, or 32 § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law 33 relating to unrelated business taxable income of a taxpayer, is amended 34 to read as follows: 35 § 2. This act shall take effect immediately and shall apply to [taxa-36ble years beginning] amounts paid or incurred on and after January 1, 37 2018. 38 § 9. Paragraph (b) of subdivision (8) of section 11-602 of the admin- 39 istrative code of the city of New York is amended by adding a new 40 subparagraph (20) to read as follows: 41 (20) the amount of any federal deduction that would have been allowed 42 pursuant to section 250(a)(1)(A) of the internal revenue code if the 43 taxpayer had not made an election under subchapter s of chapter one of 44 the internal revenue code. 45 § 10. Clause (i) of subparagraph (1) of paragraph (b) of subdivision 46 (3) of section 11-604 of the administrative code of the city of New York 47 is amended to read as follows: 48 (i) In the case of an issuer or obligor subject to tax under this 49 subchapter, subchapter three-A or subchapter four of this chapter, or 50 subject to tax as a utility corporation under chapter eleven of this 51 title, the issuer's allocation percentage shall be the percentage of the 52 appropriate measure (as defined hereinafter) which is required to be 53 allocated within the city on the report or reports, if any, required of 54 the issuer or obligor under this title for the preceding year. The 55 appropriate measure referred to in the preceding sentence shall be: in 56 the case of an issuer or obligor subject to this subchapter or subchap-S. 1509--A 50 A. 2009--A 1 ter three-A, entire capital; in the case of an issuer or obligor subject 2 to subchapter four of this chapter, issued capital stock; in the case of 3 an issuer or obligor subject to chapter eleven of this title as a utili- 4 ty corporation, gross income. 5 § 11. This act shall take effect immediately, provided, however, that: 6 (i) section one of this act shall be deemed to have been in full force 7 and effect on and after the effective date of part K of chapter 59 of 8 the laws of 2017; 9 (ii) sections two and six of this act shall be deemed to have been in 10 full force and effect on and after the effective date of part KK of 11 chapter 59 of the laws of 2018; provided, however, that section six of 12 this act shall apply to taxable years beginning on or after January 1, 13 2018 through taxable years beginning on or before January 1, 2025; 14 (iii) section three of this act shall be deemed to have been in full 15 force and effect on and after the effective date of part A of chapter 59 16 of the laws of 2014; 17 (iv) sections four, five, and seven of this act shall be deemed to 18 have been in full force and effect on and after the effective date of 19 part Q of chapter 60 of the laws of 2016; 20 (v) section eight of this act shall be deemed to have been in full 21 force and effect on and after the effective date of chapter 369 of the 22 laws of 2018; 23 (vi) section nine of this act shall apply to taxable years beginning 24 on and after January 1, 2018. 25 PART AA 26 Section 1. Section 487 of the real property tax law is amended by 27 adding a new subdivision 10 to read as follows: 28 10. Notwithstanding the foregoing provisions of this section, on or 29 after April first, two thousand nineteen, real property that comprises 30 or includes a solar or wind energy system, farm waste energy system, 31 microhydroelectric energy system, fuel cell electric generating system, 32 microcombined heat and power generating equipment system, electric ener- 33 gy storage system, or fuel-flexible linear generator as such terms are 34 defined in paragraphs (b), (f), (h), (j), (l), (n), and (o) of subdivi- 35 sion one of this section (hereinafter, individually or collectively, 36 "energy system"), shall be exempt from any taxation, special ad valorem 37 levies, and special assessments to the extent provided in section four 38 hundred ninety of this article, and the owner of such property shall not 39 be subject to any requirement to enter into a contract for payments in 40 lieu of taxes in accordance with subdivision nine of this section, if: 41 (a) the energy system is installed on real property that is owned or 42 controlled by the state of New York, a department or agency thereof, or 43 a state authority as that term is defined by subdivision one of section 44 two of the public authorities law; and (b) the state of New York, a 45 department or agency thereof, or a state authority as that term is 46 defined by subdivision one of section two of the public authorities law 47 has agreed to purchase the energy produced by such energy system or the 48 environmental credits or attributes created by virtue of the energy 49 system's operation, in accordance with a written agreement with the 50 owner or operator of such energy system. Such exemption shall be granted 51 only upon application by the owner of the real property on a form 52 prescribed by the commissioner, which application shall be filed with 53 the assessor of the appropriate county, city, town or village on or 54 before the taxable status date of such county, city, town or village.S. 1509--A 51 A. 2009--A 1 § 2. Section 490 of the real property tax law, as amended by chapter 2 87 of the laws of 2001, is amended to read as follows: 3 § 490. Exemption from special ad valorem levies and special assess- 4 ments. Real property exempt from taxation pursuant to subdivision two 5 of section four hundred, subdivision one of section four hundred four, 6 subdivision one of section four hundred six, sections four hundred 7 eight, four hundred ten, four hundred ten-a, four hundred ten-b, four 8 hundred eighteen, four hundred twenty-a, four hundred twenty-b, four 9 hundred twenty-two, four hundred twenty-six, four hundred twenty-seven, 10 four hundred twenty-eight, four hundred thirty, four hundred thirty-two, 11 four hundred thirty-four, four hundred thirty-six, four hundred thirty- 12 eight, four hundred fifty, four hundred fifty-two, four hundred fifty- 13 four, four hundred fifty-six, four hundred sixty-four, four hundred 14 seventy-two, four hundred seventy-four, [and] four hundred eighty-five 15 and subdivision ten of section four hundred eighty-seven of this chapter 16 shall also be exempt from special ad valorem levies and special assess- 17 ments against real property located outside cities and villages for a 18 special improvement or service or a special district improvement or 19 service and special ad valorem levies and special assessments imposed by 20 a county improvement district or district corporation except (1) those 21 levied to pay for the costs, including interest and incidental and 22 preliminary costs, of the acquisition, installation, construction, 23 reconstruction and enlargement of or additions to the following improve- 24 ments, including original equipment, furnishings, machinery or appara- 25 tus, and the replacements thereof: water supply and distribution 26 systems; sewer systems (either sanitary or surface drainage or both, 27 including purification, treatment or disposal plants or buildings); 28 waterways and drainage improvements; street, highway, road and parkway 29 improvements (including sidewalks, curbs, gutters, drainage, landscap- 30 ing, grading or improving the right of way) and (2) special assessments 31 payable in installments on an indebtedness including interest contracted 32 prior to July first, nineteen hundred fifty-three, pursuant to section 33 two hundred forty-two of the town law or pursuant to any other compara- 34 ble provision of law. 35 § 3. This act shall take effect immediately. 36 PART BB 37 Section 1. Subdivision 1 of section 107 of the racing, pari-mutuel 38 wagering and breeding law, as added by section 1 of part A of chapter 60 39 of the laws of 2012, is amended as follows: 40 1. No person shall be appointed to or employed by the commission if, 41 during the period commencing three years prior to appointment or employ- 42 ment, [said] such person held any direct or indirect interest in, or 43 employment by, any corporation, association or person engaged in gaming 44 activity within the state. Prior to appointment or employment, each 45 member, officer or employee of the commission shall swear or affirm that 46 he or she possesses no interest in any corporation or association hold- 47 ing a franchise, license, registration, certificate or permit issued by 48 the commission. Thereafter, no member or officer of the commission shall 49 hold any direct interest in or be employed by any applicant for or by 50 any corporation, association or person holding a license, registration, 51 franchise, certificate or permit issued by the commission for a period 52 of four years commencing on the date his or her membership with the 53 commission terminates. Further, no employee of the commission may 54 acquire any direct or indirect interest in, or accept employment with,S. 1509--A 52 A. 2009--A 1 any applicant for or any person holding a license, registration, fran- 2 chise, certificate or permit issued by the commission for a period of 3 two years commencing at the termination of employment with the commis- 4 sion. The commission may, by resolution adopted at a properly noticed 5 public meeting, waive for good cause any of its pre-employment 6 restrictions for a prospective employee. 7 § 2. This act shall take effect immediately. 8 PART CC 9 Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel 10 wagering and breeding law is amended by adding a new paragraph h to read 11 as follows: 12 h. An amount as shall be determined by the fund to support and promote 13 the ongoing care of retired horses, provided, however, that the fund 14 shall not be required to make any allocation for such purposes. 15 § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering 16 and breeding law is amended by adding a new paragraph j to read as 17 follows: 18 j. An amount as shall be determined by the fund to support and promote 19 the ongoing care of retired horses, provided, however, that the fund 20 shall not be required to make any allocation for such purposes. 21 § 3. This act shall take effect immediately. 22 PART DD 23 Section 1. This Part enacts into law legislation relating to the 24 office of gaming inspector general, the thoroughbred breeding and devel- 25 opment fund, the Harry M. Zweig memorial fund and prize payment amounts 26 and revenue distributions of lottery game sales. Each component is whol- 27 ly contained within a Subpart identified as Subparts A through D. The 28 effective date for each particular provision contained within such 29 Subpart is set forth in the last section of such Subpart. Any provision 30 in any section contained within a Subpart, including the effective date 31 of the Subpart, which makes a reference to a section "of this act", when 32 used in connection with that particular component, shall be deemed to 33 mean and refer to the corresponding section of the Subpart in which it 34 is found. Section three of this Part sets forth the general effective 35 date of this Part. 36 SUBPART A 37 Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu- 38 tuel wagering and breeding law are renumbered sections 130, 131, 132, 39 and 133. 40 § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and 41 breeding law is REPEALED. 42 § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, 43 as added by chapter 174 of the laws of 2013 and as renumbered by section 44 one of this act, is amended to read as follows: 45 § 130. Establishment of the office of gaming inspector general. There 46 is hereby created within the commission the office of gaming inspector 47 general. The head of the office shall be the gaming inspector general 48 who shall be appointed by the governor by and with the advice and 49 consent of the senate. The gaming inspector general shall serve at the 50 pleasure of the governor. The gaming inspector general shall reportS. 1509--A 53 A. 2009--A 1 directly to the governor. The person appointed as gaming inspector 2 general shall, upon his or her appointment, have not less than ten years 3 professional experience in law, investigation, or auditing. The gaming 4 inspector general shall be compensated within the limits of funds avail- 5 able therefor, provided, however, such salary shall be no less than the 6 salaries of certain state officers holding the positions indicated in 7 paragraph (a) of subdivision one of section one hundred sixty-nine of 8 the executive law. 9 § 4. The section heading, opening paragraph and subdivision 7 of 10 section 131 of the racing, pari-mutuel wagering and breeding law, as 11 added by chapter 174 of the laws of 2013 and such section as renumbered 12 by section one of this act, are amended to read as follows: 13 [State gaming] Gaming inspector general; functions and duties. The 14 [state] gaming inspector general shall have the following duties and 15 responsibilities: 16 7. establish programs for training commission officers and employees 17 [regarding] in regard to the prevention and elimination of corruption, 18 fraud, criminal activity, conflicts of interest or abuse in the commis- 19 sion. 20 § 5. The opening paragraph of section 132 of the racing, pari-mutuel 21 wagering and breeding law, as added by chapter 174 of the laws of 2013 22 and such section as renumbered by section one of this act, is amended to 23 read as follows: 24 The [state] gaming inspector general shall have the power to: 25 § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, 26 as added by chapter 174 of the laws of 2013 and as renumbered by section 27 one of this act, is amended to read as follows: 28 § 133. Responsibilities of the commission and its officers and employ- 29 ees. 1. Every commission officer or employee shall report promptly to 30 the [state] gaming inspector general any information concerning 31 corruption, fraud, criminal activity, conflicts of interest or abuse by 32 another state officer or employee relating to his or her office or 33 employment, or by a person having business dealings with the commission 34 relating to those dealings. The knowing failure of any officer or 35 employee to so report shall be cause for removal from office or employ- 36 ment or other appropriate penalty under this article. Any officer or 37 employee who acts pursuant to this subdivision by reporting to the 38 [state] gaming inspector general or other appropriate law enforcement 39 official improper governmental action as defined in section seventy- 40 five-b of the civil service law shall not be subject to dismissal, 41 discipline or other adverse personnel action. 42 2. The commission chair shall advise the governor within ninety days 43 of the issuance of a report by the [state] gaming inspector general as 44 to the remedial action that the commission has taken in response to any 45 recommendation for such action contained in such report. 46 § 7. This act shall take effect immediately. 47 SUBPART B 48 Section 1. Subdivision 1 of section 252 of the racing, pari-mutuel 49 wagering and breeding law, as amended by section 11 of part A of chapter 50 60 of the laws of 2012, is amended to read as follows: 51 1. A corporation to be known as the New York state thoroughbred breed- 52 ing and development fund corporation is hereby created. Such corporation 53 shall be a body corporate and politic constituting a public benefit 54 corporation. It shall be administered by a board of directors consistingS. 1509--A 54 A. 2009--A 1 of the chair of the state gaming commission or his or her designee, the 2 commissioner of agriculture and markets, three members of the state 3 gaming commission or other bona fide residents of the state who have a 4 cogent interest in the thoroughbred breeding industry in the state as 5 designated by the governor and six members appointed by the governor, 6 all of whom are experienced or have been actively engaged in the breed- 7 ing of thoroughbred horses in New York state, one, the president or the 8 executive director of the statewide thoroughbred breeders association 9 representing the majority of breeders of registered thoroughbreds in New 10 York state, one upon the recommendation of the majority leader of the 11 senate, one upon the recommendation of the speaker of the assembly, one 12 upon the recommendation of the minority leader of the senate, and one 13 upon the recommendation of the minority leader of the assembly. Two of 14 the appointed members shall initially serve for a two year term, two of 15 the appointed members shall initially serve for a three year term and 16 two of the appointed members shall initially serve for a four year term. 17 All successors appointed members shall serve for a four year term. All 18 members shall continue in office until their successors have been 19 appointed and qualified. The governor shall designate the chair from 20 among the sitting members who shall serve as such at the pleasure of the 21 governor. 22 § 2. This act shall take effect immediately. 23 SUBPART C 24 Section 1. Subdivision 1 of section 17 of the public officers law is 25 amended by adding a new paragraph (aa) to read as follows: 26 (aa) For the purposes of this section, the term "employee" shall 27 include the members of the Harry M. Zweig memorial fund for equine 28 research committee. 29 § 2. Section 703 of the racing, pari-mutuel wagering and breeding law 30 is amended by adding a new subdivision 3 to read as follows: 31 3. Notwithstanding the provisions of section eleven of the state 32 finance law and any other inconsistent provision of law, the fund may 33 acquire property by the acceptance of conditional gifts, grants, devises 34 or bequests given in furtherance of the mission of the fund. 35 § 3. This act shall take effect immediately. 36 SUBPART D 37 Section 1. Paragraph 2 of subdivision a of section 1612 of the tax 38 law, as amended by chapter 174 of the laws of 2013, is amended to read 39 as follows: 40 (2) [sixty-five] sixty-four and one-fourth percent of the total amount 41 for which tickets have been sold for the "Instant Cash" game in which 42 the participant purchases a preprinted ticket on which dollar amounts or 43 symbols are concealed on the face or the back of such ticket, provided 44 however up to five new games may be offered during the fiscal year, 45 [seventy-five] seventy-four and one-fourth percent of the total amount 46 for which tickets have been sold for such five games in which the 47 participant purchases a preprinted ticket on which dollar amounts or 48 symbols are concealed on the face or the back of such ticket; or 49 § 2. The opening paragraph of paragraph 1 of subdivision b of section 50 1612 of the tax law, as amended by chapter 174 of the laws of 2013, is 51 amended to read as follows:S. 1509--A 55 A. 2009--A 1 Notwithstanding section one hundred twenty-one of the state finance 2 law, on or before the twentieth day of each month, the [division] 3 commission shall pay into the state treasury, to the credit of the state 4 lottery fund created by section ninety-two-c of the state finance law, 5 not less than forty-five percent of the total amount for which tickets 6 have been sold for games defined in paragraph five of subdivision a of 7 this section during the preceeding month, not less than [forty-five] 8 thirty-five percent of the total amount for which tickets have be sold 9 for games defined in paragraph four of subdivision a of this section 10 during the preceding month, not less than [thirty-five] thirty percent 11 of the total amount for which tickets have been sold for games defined 12 in paragraph three of subdivision a of this section during the preceding 13 month, not less than twenty and three-fourths percent of the total 14 amount for which tickets have been sold for games defined in paragraph 15 two of subdivision a of this section during the preceding month, 16 provided however that for games with a prize payout of [seventy-five] 17 seventy-four and one-fourth percent of the total amount for which tick- 18 ets have been sold, the [division] commission shall pay not less than 19 ten and three-fourths percent of sales into the state treasury and not 20 less than twenty-five percent of the total amount for which tickets have 21 been sold for games defined in paragraph one of subdivision a of this 22 section during the preceding month; and the balance of the total revenue 23 after payout for prizes for games known as "video lottery gaming," 24 including any joint, multi-jurisdiction, and out-of-state video lottery 25 gaming, 26 § 3. Subdivision a of section 1614 of the tax law, as amended by chap- 27 ter 170 of the laws of 1994, is amended to read as follows: 28 a. No prize claim shall be valid if submitted to the [division] 29 commission following the expiration of a one-year time period from the 30 date of the drawing or from the close of the game in which a prize was 31 won, and the person otherwise entitled to such prize shall forfeit any 32 claim or entitlement to such prize moneys. Unclaimed prize money, plus 33 interest earned thereon, shall be retained in the lottery prize account 34 to be used for payment of special [lotto] or supplemental [lotto] prizes 35 offered pursuant to the plan or plans specified in this article, [or] 36 and for promotional purposes to supplement [other] games on an occa- 37 sional basis [not to exceed sixteen weeks within any twelve month period38pursuant to the plan or plans specified in this article]. 39 In the event that the director proposes to change any plan for the use 40 of unclaimed prize funds or in the event the director intends to use 41 funds in a game other than the game from which such unclaimed prize 42 funds were derived, the director of the budget, the chairperson of the 43 senate finance committee, and the chairperson of the assembly ways and 44 means committee shall be notified in writing separately detailing the 45 proposed changes to any plan prior to the implementation of the changes. 46 § 4. This act shall take effect immediately. 47 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 48 sion, section or subpart of this act shall be adjudged by any court of 49 competent jurisdiction to be invalid, such judgment shall not affect, 50 impair, or invalidate the remainder thereof, but shall be confined in 51 its operation to the clause, sentence, paragraph, subdivision, section 52 or subpart thereof directly involved in the controversy in which such 53 judgment shall have been rendered. It is hereby declared to be the 54 intent of the legislature that this act would have been enacted even if 55 such invalid provisions had not been included herein.S. 1509--A 56 A. 2009--A 1 § 3. This act shall take effect immediately provided, however, that 2 the applicable effective date of Subparts A through D of this Part shall 3 be as specifically set forth in the last section of such Subparts. 4 PART EE 5 Section 1. Subparagraphs (ii) and (iii) of paragraph 1 of subdivision 6 b of section 1612 of the tax law are REPEALED and two new subparagraphs 7 (ii) and (iii) are added to read as follows: 8 (ii) less a vendor's fee the amount of which is to be paid for serving 9 as a lottery agent to the track operator of a vendor track or the opera- 10 tor of any other video lottery gaming facility authorized pursuant to 11 section sixteen hundred seventeen-a of this article. The amount of the 12 vendor's fee shall be calculated as follows: 13 (A) when a vendor track is located within development zone one as 14 defined by section thirteen hundred ten of the racing, pari-mutuel 15 wagering and breeding law, at a rate of thirty-nine and one-half percent 16 of the total revenue wagered at the vendor track after payout for prizes 17 pursuant to this chapter; 18 (B) when a vendor track is located within zone two as defined by 19 section thirteen hundred ten of the racing, pari-mutuel wagering and 20 breeding law, the rate of the total revenue wagered at the vendor track 21 after payout for prizes pursuant to this chapter shall be as follows: 22 (1) forty-three and one-half percent for a vendor track located more 23 than fifteen miles but less than fifty miles from a destination resort 24 gaming facility authorized pursuant to article thirteen of the racing, 25 pari-mutuel wagering and breeding law; 26 (2) forty-nine percent for a vendor tack located within fifteen miles 27 of a destination resort gaming facility authorized pursuant to article 28 thirteen of the racing, pari-mutuel wagering and breeding law; 29 (3) fifty-one percent for vendor track located more than fifteen miles 30 but less than fifty miles from a Native American class III gaming facil- 31 ity as defined in 25 U.S.C. §2703(8); 32 (4) fifty-six percent for a vendor track located within fifteen miles 33 of a Native American class III gaming facility as defined in 25 U.S.C 34 §2703(8); 35 (B-1) Notwithstanding subparagraph (B) of this paragraph, for the 36 period commencing on April first, two thousand nineteen and ending on 37 March thirty-first, two thousand twenty, for a vendor track that is 38 located within Ontario County, such vendor fee shall be thirty-seven and 39 one-half percent of the total revenue wagered at the vendor track after 40 payout for prizes pursuant to this chapter; 41 (B-2) Notwithstanding subparagraph (B) of this paragraph, for the 42 period commencing on April first, two thousand nineteen and ending on 43 March thirty-first two thousand twenty, for a vendor track that is 44 located within Saratoga County, such vendor fee shall be thirty-nine and 45 one-half percent of the total revenue wagered at the vendor track after 46 payout for prizes pursuant to this chapter; 47 (C) when a video lottery facility is located at Aqueduct racetrack, at 48 a rate of fifty percent of the total revenue wagered at the video 49 lottery gaming facility after payout for prizes pursuant to this chap- 50 ter; 51 (D) when a video lottery gaming facility is located in either Nassau 52 or Suffolk counties and is operated by a corporation established pursu- 53 ant to section five hundred two of the racing, pari-mutuel wagering and 54 breeding law, at a rate of forty-five percent of the total revenueS. 1509--A 57 A. 2009--A 1 wagered at the video lottery gaming facility after payout for prizes 2 pursuant to this chapter. 3 (iii) less any additional vendor's fees. Additional vendor's fees 4 shall be calculated as follows: 5 (A) For a vendor track that is located within Sullivan County, within 6 development zone two as defined by section thirteen hundred ten of the 7 racing, pari-mutuel wagering and breeding law, such additional vendor 8 fee shall be fifteen and one-tenth percent of the total revenue wagered 9 at the vendor track after payout for prizes pursuant to this chapter; 10 (B) For a vendor track that is located within Ontario County, within 11 development zone two as defined by section thirteen hundred ten of the 12 racing, pari-mutuel wagering and breeding law, such additional vendor 13 fee shall be ten percent of the total revenue wagered at the vendor 14 track after payout for prizes pursuant to this chapter; 15 (C) For a vendor track that is located within Saratoga County, within 16 development zone two as defined by section thirteen hundred ten of the 17 racing, pari-mutuel wagering and breeding law, such additional vendor 18 fee shall be ten percent of the total revenue wagered at the vendor 19 track after payout for prizes pursuant to this chapter; 20 (D) for a vendor track that is located within Oneida county, within 21 fifteen miles of a Native American class III gaming facility, such addi- 22 tional vendor fee shall be six and four-tenths percent of the total 23 revenue wagered at the vendor after payout for prizes pursuant to this 24 chapter. The vendor track shall forfeit this additional vendor fee for 25 any time period that the vendor track does not maintain at least ninety 26 percent of full-time equivalent employees as they employed in the year 27 two thousand sixteen. 28 § 2. Subdivision b of section 1612 of the tax law is amended by adding 29 three new paragraphs 1-a, 1-b, and 1-c to read as follows: 30 1-a. (i) Notwithstanding any provision of law to the contrary, any 31 operators of a vendor track or the operators of any other video lottery 32 gaming facility eligible to receive a capital award as of December thir- 33 ty-first, two thousand eighteen shall deposit from their vendor fee into 34 a segregated account an amount equal to four percent of the first 35 sixty-two million five hundred thousand dollars of revenue wagered at 36 the vendor track after payout for prizes pursuant to this chapter to be 37 used exclusively for capital investments, except for Aqueduct, which 38 shall deposit into a segregated account an amount equal to one percent 39 of all revenue wagered at the video lottery gaming facility after payout 40 for prizes pursuant to this chapter until the earlier of the designation 41 of one thousand video lottery devices as hosted pursuant to paragraph 42 four of subdivision a of section sixteen hundred seventeen-a of this 43 article or April first, two thousand nineteen, when at such time four 44 percent of all revenue wagered at the video lottery gaming facility 45 after payout for prizes pursuant to this chapter shall be deposited into 46 a segregated account for capital investments. 47 (ii) Vendor tracks and video lottery gaming facilities shall be 48 permitted to withdraw funds for projects approved by the commission to 49 improve the facilities of the vendor track or video lottery gaming 50 facility which enhance or maintain the video lottery gaming facility 51 including, but not limited to hotels, other lodging facilities, enter- 52 tainment facilities, retail facilities, dining facilities, events 53 arenas, parking garages and other improvements and amenities customary 54 to a gaming facility, provided, however, the vendor tracks and video 55 lottery gaming facilities shall be permitted to withdraw funds for unre-S. 1509--A 58 A. 2009--A 1 imbursed capital awards approved prior to the effective date of this 2 subparagraph. 3 (iii) Any proceeds from the divestiture of any assets acquired through 4 these capital funds or any prior capital award must be deposited into 5 this segregated account, provided that if the vendor track or video 6 lottery gaming facility ceases use of such asset for gaming purposes or 7 transfers the asset to a related party, such vendor track or video 8 lottery gaming facility shall deposit an amount equal to the fair market 9 value of that asset into the account. 10 (iv) In the event a vendor track or video lottery gaming facility 11 ceases gaming operations, any balance in the account along with an 12 amount equal to the value of all remaining assets acquired through this 13 fund or prior capital awards shall be returned to the state for deposit 14 into the state lottery fund for education aid, except for Aqueduct, 15 which shall return to the state for deposit into the state lottery fund 16 for education aid all amounts in excess of the amount needed to fund a 17 project pursuant to an agreement with the operator to construct an 18 expansion of the facility, hotel, and convention and exhibition space 19 requiring a minimum capital investment of three hundred million dollars 20 and any subsequent amendments to such agreement. 21 (v) The comptroller or his legally authorized representative is 22 authorized to audit any and all expenditures made out of these segre- 23 gated capital accounts. 24 (vi) Notwithstanding subparagraphs (i) through (v) of this paragraph, 25 a vendor track located in Ontario county may withdraw up to two million 26 dollars from this account for the purpose of constructing a turf course 27 at the vendor track. 28 (vii) Any balance remaining in the capital award account of a vendor 29 track or operator or any other video lottery gaming facility as of March 30 thirty-first, two thousand nineteen shall be transferred for deposit 31 into a segregated account established by this subparagraph. 32 1-b. Notwithstanding any provision of law to the contrary, free play 33 allowance credits authorized by the division pursuant to subdivision i 34 of section sixteen hundred seventeen-a of this article shall not be 35 included in the calculation of the total amount wagered on video lottery 36 games, the total amount wagered after payout of prizes, the vendor fees 37 payable to the operators of video lottery gaming facilities, fees paya- 38 ble to the division's video lottery gaming equipment contractors, or 39 racing support payments. 40 1-c. Notwithstanding any provision of law to the contrary, the opera- 41 tor of a vendor track or the operator of any other video lottery gaming 42 facility shall fund a marketing and promotion program out of the 43 vendor's fee. Each operator shall submit an annual marketing plan for 44 the review and approval of the commission and any other required docu- 45 ments detailing promotional activities as prescribed by the commission. 46 The commission shall have the right to reject any advertisement or 47 promotion that does not properly represent the mission or interests of 48 the lottery or its programs. 49 § 3. This act shall take effect immediately; provided, however, claus- 50 es (A), (B) and (C) of subparagraph (iii) of paragraph 1 of subdivision 51 b of section 1612 of the tax law as added by section one of this act 52 shall take effect April 1, 2020 and shall expire and be deemed repealed 53 on March 31, 2023; and provided, however, clause (D) of subparagraph 54 (iii) of paragraph 1 of subdivision b of section 1612 of the tax law as 55 added by section one of this act shall take effect June 30, 2019 and 56 shall expire and be deemed repealed March 31, 2023.S. 1509--A 59 A. 2009--A 1 PART FF 2 Section 1. Subdivision 25 of section 1301 of the racing, pari-mutuel 3 wagering and breeding law, as added by chapter 174 of the laws of 2013, 4 is amended to read as follows: 5 25. "Gross gaming revenue". The total of all sums actually received by 6 a gaming facility licensee from gaming operations less the total of all 7 sums paid out as winnings to patrons; provided, however, that the total 8 of all sums paid out as winnings to patrons shall not include the cash 9 equivalent value of any merchandise or thing of value included in a 10 jackpot or payout[; provided further, that the issuance to or wagering11by patrons of a gaming facility of any promotional gaming credit shall12not be taxable for the purposes of determining gross revenue]. 13 § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law 14 is amended by adding a new subdivision 2 to read as follows: 15 2. Permissible deductions. (a) A gaming facility may deduct from gross 16 gaming revenue the amount of approved promotional gaming credits issued 17 to and wagered by patrons of such gaming facility. The amount of 18 approved promotional credits shall be calculated as follows: 19 (1) for the period commencing on April first, two thousand eighteen 20 and ending on March thirty-first, two thousand twenty, an aggregate 21 maximum amount equal to nineteen percent of the base taxable gross 22 gaming revenue amount during the specified period; 23 (2) for the period commencing on April first, two thousand twenty and 24 ending on March thirty-first, two thousand twenty-three, a maximum 25 amount equal to nineteen percent of the base taxable gross gaming reven- 26 ue amount for each fiscal year during the specified period; and 27 (3) for the period commencing on April first, two thousand twenty- 28 three and thereafter, a maximum amount equal to fifteen percent of the 29 base taxable gross gaming revenue amount for each fiscal year during the 30 specified period. 31 (b) For purposes of paragraph (a) of this subdivision, "base taxable 32 gross gaming revenue amount" means that portion of gross gaming revenue 33 not attributable to deductible promotional credit. 34 (c) Any tax due on promotional credits deducted during the fiscal year 35 in excess of the allowable deduction shall be paid within thirty days 36 from the end of the fiscal year. 37 (d) Only promotional credits that are issued pursuant to a written 38 plan approved by the commission as designed to increase revenue at the 39 facility may be eligible for such deduction. The commission, in conjunc- 40 tion with the director of the budget, may suspend approval of any plan 41 whenever they jointly determine that the use of the promotional credits 42 under such plan is not effective in increasing the amount of revenue 43 earned. 44 § 3. This act shall take effect immediately. 45 PART GG 46 Section 1. Subdivision 12 of section 502 of the racing, pari-mutuel 47 wagering and breeding law is amended to read as follows: 48 12. a. The board of directors shall hold an annual meeting and meet 49 not less than quarterly. 50 b. Each board member shall receive, not less than seven days in 51 advance of a meeting, documentation necessary to ensure knowledgeable 52 and engaged participation. Such documentation shall include material 53 relevant to each agenda item including background information ofS. 1509--A 60 A. 2009--A 1 discussion items, resolutions to be considered and associated documents, 2 a monthly financial statement which shall include an updated cash flow 3 statement and aged payable listing of industry payables, financial 4 statements, management reports, committee reports and compliance items. 5 c. Staff of the corporation shall annually submit to the board for 6 approval a financial plan accompanied by expenditure, revenue and cash 7 flow projections. The plan shall contain projection of revenues and 8 expenditures based on reasonable and appropriate assumptions and methods 9 of estimations, and shall provide that operations will be conducted 10 within the cash resources available. The financial plan shall also 11 include information regarding projected employment levels, collective 12 bargaining agreements and other actions relating to employee costs, 13 capital construction and such other matters as the board may direct. 14 d. Staff of the corporation shall prepare and submit to the board on a 15 quarterly basis a report of summarized budget data depicting overall 16 trends, by major category within funds, of actual revenues and budget 17 expenditures for the entire budget rather than individual line items, as 18 well as updated quarterly cash flow projections of receipts and 19 disbursements. Such reports shall compare revenue estimates and appro- 20 priations as set forth in such budget and in the quarterly revenue and 21 expenditure projections submitted therewith, with the actual revenues 22 and expenditures made to date. Such reports shall also compare actual 23 receipts and disbursements with the estimates contained in the cash flow 24 projections, together with variances and their explanation. All quarter- 25 ly reports shall be accompanied by recommendations from the president 26 setting forth any remedial action necessary to resolve any unfavorable 27 budget variance including the overestimation of revenues and the under- 28 estimation of appropriations. These reports shall be completed within 29 thirty days after the end of each quarter and shall be submitted to the 30 board by the corporation comptroller. 31 e. Revenue estimates and the financial plan shall be regularly reexam- 32 ined by the board and staff and shall provide a modified financial plan 33 in such detail and within such time periods as the board may require. In 34 the event of reductions in such revenue estimates, the board shall 35 consider and approve such adjustments in revenue estimates and 36 reductions in total expenditures as may be necessary to conform to such 37 revised revenue estimates or aggregate expenditure limitations. 38 § 2. Section 503 of the racing, pari-mutuel wagering and breeding law 39 is amended by adding a new subdivision 15 to read as follows: 40 15. Notwithstanding any inconsistent provision of law, a regional 41 off-track betting corporation may, pursuant to a written plan and agree- 42 ment with another regional off-track betting corporation approved by the 43 commission, assume the off-track betting operations authorized by arti- 44 cle five-A of this chapter of the other regional off-track betting 45 corporation. During the duration of any such agreement, the regions of 46 any regional off-track betting corporations, as defined by section five 47 hundred nineteen of this chapter shall be deemed combined, provided, 48 however, the combining of such regions shall not impact the authori- 49 zation of a regional off-track betting corporation relinquishing off- 50 track betting operations to be incorporated, exercise other powers, or 51 to conduct any other activities permitted or authorized by law. 52 § 3. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager- 53 ing and breeding law, is amended by adding a new paragraph (c) to read 54 as follows: 55 (c) The board may authorize a special demonstration project to be 56 located in any facility licensed pursuant to article thirteen of thisS. 1509--A 61 A. 2009--A 1 chapter. Notwithstanding the provisions of paragraph (a) of subdivision 2 five of this section, an admission fee shall not be required for a 3 demonstration project authorized in this paragraph. Provided however, on 4 any day when a regional harness track conducts a live race meeting, a 5 demonstration facility within that region shall predominantly display 6 the live video of such regional harness track. 7 § 4. This act shall take effect immediately. 8 PART HH 9 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 10 racing, pari-mutuel wagering and breeding law, as amended by section 1 11 of part GG of chapter 59 of the laws of 2018, is amended to read as 12 follows: 13 (a) Any racing association or corporation or regional off-track 14 betting corporation, authorized to conduct pari-mutuel wagering under 15 this chapter, desiring to display the simulcast of horse races on which 16 pari-mutuel betting shall be permitted in the manner and subject to the 17 conditions provided for in this article may apply to the commission for 18 a license so to do. Applications for licenses shall be in such form as 19 may be prescribed by the commission and shall contain such information 20 or other material or evidence as the commission may require. No license 21 shall be issued by the commission authorizing the simulcast transmission 22 of thoroughbred races from a track located in Suffolk county. The fee 23 for such licenses shall be five hundred dollars per simulcast facility 24 and for account wagering licensees that do not operate either a simul- 25 cast facility that is open to the public within the state of New York or 26 a licensed racetrack within the state, twenty thousand dollars per year 27 payable by the licensee to the commission for deposit into the general 28 fund. Except as provided in this section, the commission shall not 29 approve any application to conduct simulcasting into individual or group 30 residences, homes or other areas for the purposes of or in connection 31 with pari-mutuel wagering. The commission may approve simulcasting into 32 residences, homes or other areas to be conducted jointly by one or more 33 regional off-track betting corporations and one or more of the follow- 34 ing: a franchised corporation, thoroughbred racing corporation or a 35 harness racing corporation or association; provided (i) the simulcasting 36 consists only of those races on which pari-mutuel betting is authorized 37 by this chapter at one or more simulcast facilities for each of the 38 contracting off-track betting corporations which shall include wagers 39 made in accordance with section one thousand fifteen, one thousand 40 sixteen and one thousand seventeen of this article; provided further 41 that the contract provisions or other simulcast arrangements for such 42 simulcast facility shall be no less favorable than those in effect on 43 January first, two thousand five; (ii) that each off-track betting 44 corporation having within its geographic boundaries such residences, 45 homes or other areas technically capable of receiving the simulcast 46 signal shall be a contracting party; (iii) the distribution of revenues 47 shall be subject to contractual agreement of the parties except that 48 statutory payments to non-contracting parties, if any, may not be 49 reduced; provided, however, that nothing herein to the contrary shall 50 prevent a track from televising its races on an irregular basis primari- 51 ly for promotional or marketing purposes as found by the commission. For 52 purposes of this paragraph, the provisions of section one thousand thir- 53 teen of this article shall not apply. Any agreement authorizing an 54 in-home simulcasting experiment commencing prior to May fifteenth, nine-S. 1509--A 62 A. 2009--A 1 teen hundred ninety-five, may, and all its terms, be extended until June 2 thirtieth, two thousand [nineteen] twenty-four; provided, however, that 3 any party to such agreement may elect to terminate such agreement upon 4 conveying written notice to all other parties of such agreement at least 5 forty-five days prior to the effective date of the termination, via 6 registered mail. Any party to an agreement receiving such notice of an 7 intent to terminate, may request the commission to mediate between the 8 parties new terms and conditions in a replacement agreement between the 9 parties as will permit continuation of an in-home experiment until June 10 thirtieth, two thousand [nineteen] twenty-four; and (iv) no in-home 11 simulcasting in the thoroughbred special betting district shall occur 12 without the approval of the regional thoroughbred track. 13 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 14 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 15 section 2 of part GG of chapter 59 of the laws of 2018, is amended to 16 read as follows: 17 (iii) Of the sums retained by a receiving track located in Westchester 18 county on races received from a franchised corporation, for the period 19 commencing January first, two thousand eight and continuing through June 20 thirtieth, two thousand [nineteen] twenty-four, the amount used exclu- 21 sively for purses to be awarded at races conducted by such receiving 22 track shall be computed as follows: of the sums so retained, two and 23 one-half percent of the total pools. Such amount shall be increased or 24 decreased in the amount of fifty percent of the difference in total 25 commissions determined by comparing the total commissions available 26 after July twenty-first, nineteen hundred ninety-five to the total 27 commissions that would have been available to such track prior to July 28 twenty-first, nineteen hundred ninety-five. 29 § 3. The opening paragraph of subdivision 1 of section 1014 of the 30 racing, pari-mutuel wagering and breeding law, as amended by section 3 31 of part GG of chapter 59 of the laws of 2018, 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 conducting a race meet- 36 ing in Saratoga county at Saratoga thoroughbred racetrack until June 37 thirtieth, two thousand [nineteen] twenty-four and on any day regardless 38 of whether or not a franchised corporation is conducting a race meeting 39 in Saratoga county at Saratoga thoroughbred racetrack after June thirti- 40 eth, two thousand [nineteen] twenty-four. On any day on which a fran- 41 chised corporation has not scheduled a racing program but a thoroughbred 42 racing corporation located within the state is conducting racing, every 43 off-track betting corporation branch office and every simulcasting 44 facility licensed in accordance with section one thousand seven (that 45 [have] has entered into a written agreement with such facility's repre- 46 sentative horsemen's organization, as approved by the commission), one 47 thousand eight, or one thousand nine of this article shall be authorized 48 to accept wagers and display the live simulcast signal from thoroughbred 49 tracks located in another state or foreign country subject to the 50 following provisions: 51 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 52 and breeding law, as amended by section 4 of part GG of chapter 59 of 53 the laws of 2018, is amended to read as follows: 54 1. The provisions of this section shall govern the simulcasting of 55 races conducted at harness tracks located in another state or country 56 during the period July first, nineteen hundred ninety-four through JuneS. 1509--A 63 A. 2009--A 1 thirtieth, two thousand [nineteen] twenty-four. This section shall 2 supersede all inconsistent provisions of this chapter. 3 § 5. The opening paragraph of subdivision 1 of section 1016 of the 4 racing, pari-mutuel wagering and breeding law, as amended by section 5 5 of part GG of chapter 59 of the laws of 2018, is amended to read as 6 follows: 7 The provisions of this section shall govern the simulcasting of races 8 conducted at thoroughbred tracks located in another state or country on 9 any day during which a franchised corporation is not conducting a race 10 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 11 thirtieth, two thousand [nineteen] twenty-four. Every off-track betting 12 corporation branch office and every simulcasting facility licensed in 13 accordance with section one thousand seven that have entered into a 14 written agreement with such facility's representative horsemen's organ- 15 ization as approved by the commission, one thousand eight or one thou- 16 sand nine of this article shall be authorized to accept wagers and 17 display the live full-card simulcast signal of thoroughbred tracks 18 (which may include quarter horse or mixed meetings provided that all 19 such wagering on such races shall be construed to be thoroughbred races) 20 located in another state or foreign country, subject to the following 21 provisions; provided, however, no such written agreement shall be 22 required of a franchised corporation licensed in accordance with section 23 one thousand seven of this article: 24 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 25 wagering and breeding law, as amended by section 6 of part GG of chapter 26 59 of the laws of 2018, is amended to read as follows: 27 Notwithstanding any other provision of this chapter, for the period 28 July twenty-fifth, two thousand one through September eighth, two thou- 29 sand [eighteen] twenty-three, when a franchised corporation is conduct- 30 ing a race meeting within the state at Saratoga Race Course, every off- 31 track betting corporation branch office and every simulcasting facility 32 licensed in accordance with section one thousand seven (that has entered 33 into a written agreement with such facility's representative horsemen's 34 organization as approved by the commission), one thousand eight or one 35 thousand nine of this article shall be authorized to accept wagers and 36 display the live simulcast signal from thoroughbred tracks located in 37 another state, provided that such facility shall accept wagers on races 38 run at all in-state thoroughbred tracks which are conducting racing 39 programs subject to the following provisions; provided, however, no such 40 written agreement shall be required of a franchised corporation licensed 41 in accordance with section one thousand seven of this article. 42 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 43 racing, pari-mutuel wagering and breeding law and other laws relating to 44 simulcasting, as amended by section 7 of part GG of chapter 59 of the 45 laws of 2018, is amended to read as follows: 46 § 32. This act shall take effect immediately and the pari-mutuel tax 47 reductions in section six of this act shall expire and be deemed 48 repealed on July 1, [2019] 2024; provided, however, that nothing 49 contained herein shall be deemed to affect the application, qualifica- 50 tion, expiration, or repeal of any provision of law amended by any 51 section of this act, and such provisions shall be applied or qualified 52 or shall expire or be deemed repealed in the same manner, to the same 53 extent and on the same date as the case may be as otherwise provided by 54 law; provided further, however, that sections twenty-three and twenty- 55 five of this act shall remain in full force and effect only until May 1, 56 1997 and at such time shall be deemed to be repealed.S. 1509--A 64 A. 2009--A 1 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 2 racing, pari-mutuel wagering and breeding law and other laws relating to 3 simulcasting and the imposition of certain taxes, as amended by section 4 8 of part GG of chapter 59 of the laws of 2018, is amended to read as 5 follows: 6 § 54. This act shall take effect immediately; provided, however, 7 sections three through twelve of this act shall take effect on January 8 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 9 ing law, as added by section thirty-eight of this act, shall expire and 10 be deemed repealed on July 1, [2019] 2024; and section eighteen of this 11 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 12 two of this act shall take effect as of the same date as chapter 772 of 13 the laws of 1989 took effect. 14 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 15 pari-mutuel wagering and breeding law, as amended by section 9 of part 16 GG of chapter 59 of the laws of 2018, is amended to read as follows: 17 (a) The franchised corporation authorized under this chapter to 18 conduct pari-mutuel betting at a race meeting or races run thereat shall 19 distribute all sums deposited in any pari-mutuel pool to the holders of 20 winning tickets therein, provided such tickets be presented for payment 21 before April first of the year following the year of their purchase, 22 less an amount which shall be established and retained by such fran- 23 chised corporation of between twelve to seventeen per centum of the 24 total deposits in pools resulting from on-track regular bets, and four- 25 teen to twenty-one per centum of the total deposits in pools resulting 26 from on-track multiple bets and fifteen to twenty-five per centum of the 27 total deposits in pools resulting from on-track exotic bets and fifteen 28 to thirty-six per centum of the total deposits in pools resulting from 29 on-track super exotic bets, plus the breaks. The retention rate to be 30 established is subject to the prior approval of the gaming commission. 31 Such rate may not be changed more than once per calendar quarter to be 32 effective on the first day of the calendar quarter. "Exotic bets" and 33 "multiple bets" shall have the meanings set forth in section five 34 hundred nineteen of this chapter. "Super exotic bets" shall have the 35 meaning set forth in section three hundred one of this chapter. For 36 purposes of this section, a "pick six bet" shall mean a single bet or 37 wager on the outcomes of six races. The breaks are hereby defined as the 38 odd cents over any multiple of five for payoffs greater than one dollar 39 five cents but less than five dollars, over any multiple of ten for 40 payoffs greater than five dollars but less than twenty-five dollars, 41 over any multiple of twenty-five for payoffs greater than twenty-five 42 dollars but less than two hundred fifty dollars, or over any multiple of 43 fifty for payoffs over two hundred fifty dollars. Out of the amount so 44 retained there shall be paid by such franchised corporation to the 45 commissioner of taxation and finance, as a reasonable tax by the state 46 for the privilege of conducting pari-mutuel betting on the races run at 47 the race meetings held by such franchised corporation, the following 48 percentages of the total pool for regular and multiple bets five per 49 centum of regular bets and four per centum of multiple bets plus twenty 50 per centum of the breaks; for exotic wagers seven and one-half per 51 centum plus twenty per centum of the breaks, and for super exotic bets 52 seven and one-half per centum plus fifty per centum of the breaks. 53 For the period June first, nineteen hundred ninety-five through 54 September ninth, nineteen hundred ninety-nine, such tax on regular 55 wagers shall be three per centum and such tax on multiple wagers shall 56 be two and one-half per centum, plus twenty per centum of the breaks.S. 1509--A 65 A. 2009--A 1 For the period September tenth, nineteen hundred ninety-nine through 2 March thirty-first, two thousand one, such tax on all wagers shall be 3 two and six-tenths per centum and for the period April first, two thou- 4 sand one through December thirty-first, two thousand [nineteen] twenty- 5 four, such tax on all wagers shall be one and six-tenths per centum, 6 plus, in each such period, twenty per centum of the breaks. Payment to 7 the New York state thoroughbred breeding and development fund by such 8 franchised corporation shall be one-half of one per centum of total 9 daily on-track pari-mutuel pools resulting from regular, multiple and 10 exotic bets and three per centum of super exotic bets provided, however, 11 that for the period September tenth, nineteen hundred ninety-nine 12 through March thirty-first, two thousand one, such payment shall be 13 six-tenths of one per centum of regular, multiple and exotic pools and 14 for the period April first, two thousand one through December thirty- 15 first, two thousand [nineteen] twenty-four, such payment shall be 16 seven-tenths of one per centum of such pools. 17 § 10. This act shall take effect immediately. 18 PART II 19 Section 1. The racing, pari-mutuel wagering and breeding law is 20 amended by adding a new article XI-A to read as follows: 21 ARTICLE XI-A 22 INTERSTATE COMPACT ON ANTI-DOPING 23 AND DRUG TESTING STANDARDS 24 Section 1113. Purposes. 25 1114. Definitions. 26 1115. Composition and meetings of compact commission. 27 1116. Operation of compact commission. 28 1117. General powers and duties. 29 1118. Other powers and duties. 30 1119. Compact rule making. 31 1120. Status and relationship to member states. 32 1121. Rights and responsibilities of member states. 33 1122. Enforcement of compact. 34 1123. Legal actions against compact. 35 1124. Restrictions on authority. 36 1125. Construction, savings and severability. 37 § 1113. Purposes. The purposes of the compact are: 38 a. To enable member states to act jointly and cooperatively to create 39 more uniform, effective, and efficient breed specific rules and regu- 40 lations relating to the permitted and prohibited use of drugs and medi- 41 cations for the health and welfare of the horse and the integrity of 42 racing, and testing for such substances, in or affecting a member state; 43 and 44 b. To authorize the New York state gaming commission to participate in 45 the compact. 46 § 1114. Definitions. For the purposes of this article, the following 47 terms shall have the following meanings: 48 a. "Compact commission" means the organization of delegates from the 49 member states that is authorized and empowered by the compact to carry 50 out the purposes of the compact; 51 b. "Compact rule" means a rule or regulation adopted by a member state 52 regulating the permitted and prohibited use of drugs and medications for 53 the health and welfare of the horse and the integrity of racing, andS. 1509--A 66 A. 2009--A 1 testing for such substances, in live pari-mutuel horse racing that 2 occurs in or affects such states; 3 c. "Delegate" means the chairperson of the member state racing commis- 4 sion or similar regulatory body in a state, or such person's designee, 5 who represents the member state, as a voting member of the compact 6 commission and anyone who is serving as such person's alternate; 7 d. "Equine drug rule" means a rule or regulation that relates to the 8 administration of drugs, medications, or other substances to a horse 9 that may participate in live horse racing with pari-mutuel wagering 10 including, but not limited to, the regulation of the permissible use of 11 such substances to ensure the integrity of racing and the health, safety 12 and welfare of race horses, appropriate sanctions for rule violations, 13 and quality laboratory testing programs to detect such substances in the 14 bodily system of a race horse; 15 e. "Live racing" means live horse racing with pari-mutuel wagering; 16 f. "Member state" means each state that has enacted the compact; 17 g. "National industry stakeholder" means a non-governmental organiza- 18 tion that from a national perspective significantly represents one or 19 more categories of participants in live racing and pari-mutuel wagering; 20 h. "Participants in live racing" means all persons who participate in, 21 operate, provide industry services for, or are involved with live racing 22 with pari-mutuel wagering; 23 i. "State" means each of the several states of the United States, the 24 District of Columbia, the Commonwealth of Puerto Rico, and each territo- 25 ry or possession of the United States; and 26 j. "State racing commission" means the state racing commission, or its 27 equivalent, in each member state. Where a member state has more than 28 one, it shall mean all such racing commissions, or their equivalents. 29 § 1115. Composition and meetings of compact commission. The member 30 states shall create and participate in a compact commission as follows: 31 a. The compact shall come into force when enacted by any two eligible 32 states, and shall thereafter become effective as to any other member 33 state that enacts the compact. Any state that has adopted or authorized 34 pari-mutuel wagering or live horse racing shall be eligible to become a 35 party to the compact. A compact rule shall not become effective in a new 36 member state based merely upon it entering the compact. 37 b. The member states hereby create the interstate anti-doping and drug 38 testing standards compact commission, a body corporate and an interstate 39 governmental entity of the member states, to coordinate the rule making 40 actions of each member state racing commission through a compact commis- 41 sion. 42 c. The compact commission shall consist of one delegate, the chair- 43 person of the state racing commission or such person's designee, from 44 each member state. When a delegate is not present to perform any duty in 45 the compact commission, a designated alternate may serve. The person who 46 represents a member state in the compact commission shall serve and 47 perform such duties without compensation or remuneration; provided, that 48 subject to the availability of budgeted funds, each may be reimbursed 49 for ordinary and necessary costs and expenses. The designation of a 50 delegate, including the alternate, shall be effective when written 51 notice has been provided to the compact commission. The delegate, 52 including the alternate, must be a member or employee of the state 53 racing commission. 54 d. The compact delegate from each state shall participate as an agent 55 of the state racing commission. Each delegate shall have the assistanceS. 1509--A 67 A. 2009--A 1 of the state racing commission in regard to all decision making and 2 actions of the state in and through the compact commission. 3 e. Each member state, by its delegate, shall be entitled to one vote 4 in the compact commission. A majority vote of the total number of deleg- 5 ates shall be required to propose a compact rule, receive and distribute 6 any funds, and to adopt, amend, or rescind the by-laws. A compact rule 7 shall take effect in and for each member state when adopted by a super 8 majority vote of eighty percent of the total number of member states. 9 Other compact actions shall require a majority vote of the delegates who 10 are meeting. 11 f. Meetings and votes of the compact commission may be conducted in 12 person or by telephone or other electronic communication. Meetings may 13 be called by the chairperson of the compact commission or by any two 14 delegates. Reasonable notice of each meeting shall be provided to all 15 delegates serving in the compact commission. 16 g. No action may be taken at a compact commission meeting unless there 17 is a quorum, which is either a majority of the delegates in the compact 18 commission, or where applicable, all the delegates from any member 19 states who propose or are voting affirmatively to adopt a compact rule. 20 h. Once effective, the compact shall continue in force and remain 21 binding according to its terms upon each member state; provided that, a 22 member state may withdraw from the compact by repealing the statute that 23 enacted the compact into law. The racing commission of a withdrawing 24 state shall give written notice of such withdrawal to the compact chair- 25 person, who shall notify the member state racing commissions. A with- 26 drawing state shall remain responsible for any unfulfilled obligations 27 and liabilities. The effective date of withdrawal from the compact shall 28 be the effective date of the repeal. 29 § 1116. Operation of compact commission. The compact commission is 30 hereby granted, so that it may be an effective means to pursue and 31 achieve the purposes of each member state in the compact, the power and 32 duty: 33 a. to adopt, amend, and rescind by-laws to govern its conduct, as may 34 be necessary or appropriate to carry out the purposes of the compact; to 35 publish them in a convenient form; and to file a copy of them with the 36 state racing commission of each member state; 37 b. to elect annually from among the delegates, including alternates, a 38 chairperson, vice-chairperson, and treasurer with such authority and 39 duties as may be specified in the by-laws; 40 c. to establish and appoint committees which it deems necessary for 41 the carrying out of its functions, including advisory committees which 42 shall be comprised of national industry stakeholders and organizations 43 and such other persons as may be designated in accordance with the 44 by-laws, to obtain their timely and meaningful input into the compact 45 rule making processes; 46 d. to establish an executive committee, with membership established in 47 the by-laws, which shall oversee the day-to-day activities of compact 48 administration and management by the executive director and staff; hire 49 and fire as may be necessary after consultation with the compact commis- 50 sion; administer and enforce compliance with the provisions, by-laws, 51 and rules of the compact; and perform such other duties as the by-laws 52 may establish; 53 e. to create, appoint, and abolish all those offices, employments, and 54 positions, including an executive director, useful to fulfill its 55 purposes;S. 1509--A 68 A. 2009--A 1 f. to delegate day-to-day management and administration of its duties, 2 as needed, to an executive director and support staff; and 3 g. to adopt an annual budget sufficient to provide for the payment of 4 the reasonable expenses of its establishment, organization, and ongoing 5 activities; provided, that the budget shall be funded by only voluntary 6 contributions. 7 § 1117. General powers and duties. To allow each member state, as and 8 when it chooses, to achieve the purpose of the compact through joint and 9 cooperative action, the member states are hereby granted the power and 10 duty, by and through the compact commission: 11 a. to act jointly and cooperatively to create a more equitable and 12 uniform pari-mutuel racing and wagering interstate regulatory framework 13 by the adoption of standardized rules for the permitted and prohibited 14 use of drugs and medications for the health, and welfare of the horse 15 and the integrity of racing, including rules governing the use of drugs 16 and medications and drug testing; 17 b. to collaborate with national industry stakeholders and industry 18 organizations, including the Association of Racing Commissioners Inter- 19 national, Inc. and the Racing Medication and Testing Consortium, in the 20 design and implementation of compact rules in a manner that serves the 21 best interests of racing; and 22 c. to propose and adopt breed specific compact equine drugs and medi- 23 cations rules for the health, and welfare of the horse, including rules 24 governing the permitted and prohibited use of drugs and medications and 25 drug testing, which shall have the force and effect of state rules or 26 regulations in the member states, to govern live pari-mutuel horse 27 racing. 28 § 1118. Other powers and duties. The compact commission may exercise 29 such incidental powers and duties as may be necessary and proper for it 30 to function in a useful manner, including but not limited to the power 31 and duty: 32 a. to enter into contracts and agreements with governmental agencies 33 and other persons, including officers and employees of a member state, 34 to provide personal services for its activities and such other services 35 as may be necessary; 36 b. to borrow, accept, and contract for the services of personnel from 37 any state, federal, or other governmental agency, or from any other 38 person or entity; 39 c. to receive information from and to provide information to each 40 member state racing commission, including its officers and staff, on 41 such terms and conditions as may be established in the by-laws; 42 d. to acquire, hold, and dispose of any real or personal property by 43 gift, grant, purchase, lease, license, and similar means and to receive 44 additional funds through gifts, grants, and appropriations; 45 e. when authorized by a compact rule, to conduct hearings and render 46 reports and advisory decisions and orders; and 47 f. to establish in the by-laws the requirements that shall describe 48 and govern its duties to conduct open or public meetings and to provide 49 public access to compact records and information. 50 § 1119. Compact rule making. In the exercise of its rule making 51 authority, the compact commission shall: 52 a. engage in formal rule making pursuant to a process that substan- 53 tially conforms to the Model State Administrative Procedure Act of 1981 54 as amended, as may be appropriate to the actions and operations of the 55 compact commission;S. 1509--A 69 A. 2009--A 1 b. gather information and engage in discussions with advisory commit- 2 tees, national industry stakeholders, and others, including an opportu- 3 nity for industry organizations to submit input to member state racing 4 commissions on the state level, to foster, promote and conduct a colla- 5 borative approach in the design and advancement of compact rules in a 6 manner that serves the best interests of racing and as established in 7 the by-laws; 8 c. direct the publication in each member state of each equine drug 9 rule proposed by the compact commission, conduct a review of public 10 comments received by each member state racing commission and the compact 11 commission in response to the publication of its rule making proposals, 12 consult with national industry stakeholders and participants in live 13 racing with regard to such process and any revisions to the compact rule 14 proposal, and meet upon the completion of the public comment period to 15 conduct a vote on the adoption of the proposed compact rule as a state 16 rule in the member states; and 17 d. have a standing committee that reviews at least quarterly the 18 participation in and value of compact rules and, when it determines that 19 a revision is appropriate or when requested to by any member state, 20 submits a revising proposed compact rule. To the extent a revision would 21 only add or remove a member state or states from where a compact rule 22 has been adopted, the vote required by this section shall be required of 23 only such state or states. The standing committee shall gather informa- 24 tion and engage in discussions with national industry stakeholders, who 25 may also directly recommend a compact rule proposal or revision to the 26 compact committee. 27 § 1120. Status and relationship to member states. a. The compact 28 commission, as an interstate governmental entity, shall be exempt from 29 all taxation in and by the member states. 30 b. The compact commission shall not pledge the credit of any member 31 state except by and with the appropriate legal authority of that state. 32 c. Each member state shall reimburse or otherwise pay the expenses of 33 its delegate, including any alternate, in the compact commission. 34 d. No member state, except as provided in section eleven hundred twen- 35 ty-three of this article, shall be held liable for the debts or other 36 financial obligations incurred by the compact commission. 37 e. No member state shall have, while it participates in the compact 38 commission, any claim to or ownership of any property held by or vested 39 in the compact commission or to any compact commission funds held pursu- 40 ant to the compact except for state license or other fees or moneys 41 collected by the compact commission as its agent. 42 f. The compact dissolves upon the date of the withdrawal of the member 43 state that reduces membership in the compact to one state. Upon dissol- 44 ution, the compact becomes null and void and shall be of no further 45 force or effect, although equine drug rules adopted through the compact 46 shall remain state rules in each member state that had adopted them, and 47 the business and affairs of the compact shall be concluded and any 48 surplus funds shall be distributed to the former member states in 49 accordance with the by-laws. 50 § 1121. Rights and responsibilities of member states. a. Each member 51 state in the compact shall accept the decisions, duly applicable to it, 52 of the compact commission in regard to compact rules and rule making. 53 b. The compact shall not be construed to diminish or limit the powers 54 and responsibilities of the member state racing commission or similar 55 regulatory body, or to invalidate any action it has previously taken, 56 except to the extent it has, by its compact delegate, expressed itsS. 1509--A 70 A. 2009--A 1 consent to a specific rule or other action of the compact commission. 2 The compact delegate from each state shall serve as the agent of the 3 state racing commission and shall possess substantial knowledge and 4 experience as a regulator or participant in the horse racing industry. 5 § 1122. Enforcement of compact. a. The compact commission shall have 6 standing to intervene in any legal action that pertains to the subject 7 matter of the compact and might affect its powers, duties, or actions. 8 b. The courts and executive in each member state shall enforce the 9 compact and take all actions necessary and appropriate to effectuate its 10 purposes and intent. Compact provisions, by-laws, and rules shall be 11 received by all judges, departments, agencies, bodies, and officers of 12 each member state and its political subdivisions as evidence of them. 13 § 1123. Legal actions against compact. a. Any person may commence a 14 claim, action, or proceeding against the compact commission in state 15 court for damages. The compact commission shall have the benefit of the 16 same limits of liability, defenses, rights to indemnity and defense by 17 the state, and other legal rights and defenses for non-compact matters 18 of the state racing commission in the state. All legal rights and 19 defenses that arise from the compact shall also be available to the 20 compact commission. 21 b. A compact delegate, alternate, or other member or employee of a 22 state racing commission who undertakes compact activities or duties does 23 so in the course of business of their state racing commission, and shall 24 have the benefit of the same limits of liability, defenses, rights to 25 indemnity and defense by the state, and other legal rights and defenses 26 for non-compact matters of state employees in their state. The executive 27 director and other employees of the compact commission shall have the 28 benefit of these same legal rights and defenses of state employees in 29 the member state in which they are primarily employed. All legal rights 30 and defenses that arise from the compact shall also be available to 31 them. 32 c. Each member state shall be liable for and pay judgments filed 33 against the compact commission to the extent related to its partic- 34 ipation in the compact. Where liability arises from action undertaken 35 jointly with other member states, the liability shall be divided equally 36 among the states for whom the applicable action or omission of the exec- 37 utive director or other employees of the compact commission was under- 38 taken; and no member state shall contribute to or pay, or be jointly or 39 severally or otherwise liable for, any part of any judgment beyond its 40 share as determined in accordance with this section. 41 § 1124. Restrictions on authority. a. New York substantive state laws 42 applicable to pari-mutuel horse racing and wagering shall remain in full 43 force and effect. 44 b. Compact rules shall not preclude subsequent rulemaking in New York 45 state on the same or related matter. The most recently adopted rule 46 shall thereby become the governing law. 47 c. New York state shall not participate in or apply this interstate 48 compact to any aspect of standardbred racing. 49 § 1125. Construction, savings and severability. a. The compact shall 50 be liberally construed so as to effectuate its purposes. The provisions 51 of the compact shall be severable and if any phrase, clause, sentence, 52 or provision of the compact is declared to be contrary to the constitu- 53 tion of the United States or of any member state, or the applicability 54 of the compact to any government, agency, person, or circumstance is 55 held invalid, the validity of the remainder of the compact and its 56 applicability to any government, agency, person, or circumstance shallS. 1509--A 71 A. 2009--A 1 not be affected. If all or some portion of the compact is held to be 2 contrary to the constitution of any member state, the compact shall 3 remain in full force and effect as to the remaining member states and in 4 full force and effect as to the state affected as to all severable 5 matters. 6 b. In the event of any allegation, finding, or ruling against the 7 compact or its procedures or actions, provided that a member state has 8 followed the compact's stated procedures, any rule it purported to adopt 9 using the procedures of this statute shall constitute a duly adopted and 10 valid state rule. 11 § 2. This act shall take effect immediately. 12 PART JJ 13 Section 1. Section 2 of part EE of chapter 59 of the laws of 2018, 14 amending the racing, pari-mutuel wagering and breeding law, relating to 15 adjusting the franchise payment establishing an advisory committee to 16 review the structure, operations and funding of equine drug testing and 17 research, is amended to read as follows: 18 § 2. An advisory committee shall be established within the New York 19 gaming commission comprised of individuals with demonstrated interest in 20 the performance of thoroughbred and standardbred race horses to review 21 the present structure, operations and funding of equine drug testing and 22 research conducted pursuant to article nine of the racing, pari-mutuel 23 wagering and breeding law. Members of the committee, who shall be 24 appointed by the governor, shall include but not be limited to a desig- 25 nee at the recommendation of each licensed or franchised thoroughbred 26 and standardbred racetrack, a designee at the recommendation of each 27 operating regional off-track betting corporation, a designee at the 28 recommendation of each recognized horsemen's organization at licensed or 29 franchised thoroughbred and standardbred racetracks, a designee at the 30 recommendation of both Morrisville State College and the Cornell Univer- 31 sity School of Veterinary Medicine, and two designees each at the recom- 32 mendation of the speaker of the assembly and temporary president of the 33 senate. The governor shall designate the chair from among the members 34 who shall serve as such at the pleasure of the governor. State agencies 35 shall cooperate with and assist the committee in the fulfillment of its 36 duties and may render informational, non-personnel services to the 37 committee within their respective functions as the committee may reason- 38 ably request. Recommendations shall be delivered to the temporary presi- 39 dent of the senate, speaker of the assembly and governor by December 1, 40 [2018] 2019 regarding the future of such research, testing and funding. 41 Members of the board shall not be considered policymakers. 42 § 2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering 43 and breeding law, as amended by chapter 15 of the laws of 2010, is 44 amended to read as follows: 45 1. In order to assure the public's confidence and continue the high 46 degree of integrity in racing at the pari-mutuel betting tracks, equine 47 drug testing at race meetings shall be conducted by a [state college48within this state with an approved equine science program] suitable 49 laboratory, as the gaming commission may determine in its discretion. 50 The [state racing and wagering board] gaming commission shall promulgate 51 any rules and regulations necessary to implement the provisions of this 52 section, including administrative penalties of loss of purse money, 53 fines, or denial, suspension[,] or revocation of a license for racing 54 drugged horses.S. 1509--A 72 A. 2009--A 1 § 3. This act shall take effect immediately. 2 PART KK 3 Section 1. The racing, pari-mutuel wagering and breeding law is 4 amended by adding a new section 104-a to read as follows: 5 § 104-a. Registration to engage in gaming activity. Notwithstanding 6 any provision of law to the contrary, the commission may require any 7 person, corporation or association intending to engage in any gaming 8 activity regulated by the commission to submit a primary registration to 9 the commission. 10 1. For the purposes of this section, when a person is required to 11 submit a registration, any and all licenses, registrations, certif- 12 icates, permits or approvals issued to such person as required under 13 this chapter or under article thirty-four of the tax law shall be 14 considered sub-registrations or sub-licenses to the aforementioned 15 registration. No individual shall engage in any gaming activity without 16 a valid sub-registration or sub-license authorizing such activity. 17 2. The primary registration to engage in gaming activities shall sole- 18 ly be an informational return containing such information the commission 19 deems applicable to all sub-registrations or sub-licenses. The commis- 20 sion shall require separate applications for all sub-registrations or 21 sub-licenses containing all supplemental information that the commission 22 deems necessary. 23 All commission determinations shall be made on an applicant's sub-re- 24 gistration or sub-license and not on the primary registration. Any 25 information obtained for or contained in the primary registration and 26 all associated sub-registrations or sub-licenses may be used in any 27 subsequent licensing and registration determinations. 28 3. Pursuant to the commission's authority granted by subdivisions 29 thirteen and fourteen of section one hundred four of this article, the 30 commission may require a background investigation and a criminal history 31 record search for any primary or sub-registration or sub-license sought. 32 The commission shall have the right to request new information upon 33 submission of any new sub-registration or sub-license application. 34 For the purposes of this section, upon an initial sub-registration or 35 sub-license application and any subsequent sub-applications as may be 36 required by the commission, each applicant shall submit to the commis- 37 sion the applicant's name, address, fingerprints and written consent for 38 criminal history information as defined in paragraph (c) of subdivision 39 one of section eight hundred forty-five-b of the executive law, to be 40 performed. The commission is hereby authorized to exchange fingerprint 41 data with and receive criminal history record information from the state 42 division of criminal justice services and the federal bureau of investi- 43 gation consistent with applicable state and federal laws, rules and 44 regulations. The applicant shall pay the fee for such criminal history 45 information as established pursuant to article thirty-five of the execu- 46 tive law. The state division of criminal justice services shall promptly 47 notify the commission in the event a current or prospective licensee, 48 who was the subject of such criminal history information pursuant to 49 this section, is arrested for a crime or offense in this state after the 50 date the check was performed. 51 4. Primary registrations shall expire five years from the date of 52 submission, provided, however, any sub-registration or sub-license shall 53 continue through its expiration. Notwithstanding this provision, the 54 commission may suspend any sub-registration or sub-license that has anS. 1509--A 73 A. 2009--A 1 expired primary registration until such primary registration is renewed. 2 The commission shall establish a schedule to register any individual or 3 entity who possessed a sub-registration or sub-license prior to the 4 implementation of this section. 5 5. The commission shall promulgate rules and regulations to implement 6 the provisions of this section and ensure that all licensing and regis- 7 tration requirements of this chapter and article thirty-four of the tax 8 law are adequately addressed in the implementation. 9 § 2. Section 1301 of the racing, pari-mutuel wagering and breeding law 10 is amended by adding a new subdivision 31-a to read as follows: 11 31-a. "Non-gaming employee". Any natural person, not otherwise 12 included in the definition of casino key employee or gaming employee, 13 who is employed by a gaming facility licensee, or a holding or interme- 14 diary company of a gaming facility licensee, and performs services and 15 duties upon the premises of a gaming facility, whose duties do not 16 relate to the operation of gaming activities, and who is not regularly 17 required to work in restricted areas such that registration of a non- 18 gaming employee is appropriate. 19 § 3. Paragraph (c) of subdivision 1 of section 1318 of the racing, 20 pari-mutuel wagering and breeding law, as added by chapter 174 of the 21 laws of 2013, is amended to read as follows: 22 (c) the conviction of the applicant, or of any person required to be 23 qualified under this article as a condition of a license, of any offense 24 in any jurisdiction which is or would be a [felony or other] crime 25 involving public integrity, embezzlement, theft, fraud, [or] perjury, 26 represents a significant threat to public safety, or would otherwise 27 pose a threat to the effective regulation of casino gaming; 28 § 4. Subdivision 4 of section 1322 of the racing, pari-mutuel wagering 29 and breeding law, as added by chapter 174 of the laws of 2013, is 30 amended to read as follows: 31 4. All applicants, licensees, registrants, and any other person who 32 shall be qualified pursuant to this article shall have the continuing 33 duty to provide any assistance or information required by the commis- 34 sion, and to cooperate in any inquiry, investigation or hearing 35 conducted by the commission. If, upon issuance of a formal request to 36 answer or produce information, evidence or testimony, any applicant, 37 licensee, registrant, or any other person who shall be qualified pursu- 38 ant to this article refuses to comply, the application, license, regis- 39 tration or qualification of such person may be suspended, denied or 40 revoked. 41 § 5. Subdivision 3 of section 1323 of the racing, pari-mutuel wagering 42 and breeding law, as added by chapter 174 of the laws of 2013, is 43 amended to read as follows: 44 3. The commission shall deny a casino key employee license to any 45 applicant who is disqualified on the basis of the criteria contained in 46 section [one thousand three] thirteen hundred eighteen of this [title] 47 article, subject to notice and hearing. Provided that, no casino key 48 employee license shall be denied or revoked on the basis of a conviction 49 of any of the offenses enumerated in this article as disqualification 50 criteria or the commission of any act or acts which would constitute any 51 offense under section thirteen hundred eighteen of this article, 52 provided that the applicant has affirmatively demonstrated the appli- 53 cant's rehabilitation, pursuant to article twenty-three-A of the 54 correction law.S. 1509--A 74 A. 2009--A 1 § 6. Subdivision 4 of section 1323 of the racing, pari-mutuel wagering 2 and breeding law, as added by chapter 174 of the laws of 2013, is 3 amended to read as follows: 4 4. Upon [receipt of such criminal history information] determination 5 that an applicant is disqualified on the basis of the applicant's crimi- 6 nal history, the commission shall provide such applicant with a copy of 7 such criminal history information, together with a copy of article twen- 8 ty-three-A of the correction law, and inform such applicant of his or 9 her right to seek correction of any incorrect information contained in 10 such criminal history information pursuant to regulations and procedures 11 established by the division of criminal justice services. Except as 12 otherwise provided by law, such criminal history information shall be 13 confidential and any person who willfully permits the release of such 14 confidential criminal history information to persons not permitted to 15 receive such information shall be guilty of a misdemeanor. 16 § 7. Section 1324 of the racing, pari-mutuel wagering and breeding 17 law, as added by chapter 174 of the laws of 2013, is amended to read as 18 follows: 19 § 1324. Gaming and non-gaming employee registration. 1. No person may 20 commence employment as a gaming or non-gaming employee unless such 21 person has a valid registration [on file with the] issued by the commis- 22 sion, which registration shall be prepared and filed in accordance with 23 the regulations promulgated hereunder. 24 2. A gaming or non-gaming employee registrant shall produce such 25 information as the commission by regulation may require. [Subsequent to26the registration of a gaming employee, the executive director may] The 27 commission may deny, revoke, suspend, limit, or otherwise restrict the 28 registration upon a finding that the registrant is disqualified on the 29 basis of the criteria contained in section [one thousand three] thirteen 30 hundred eighteen of this [title] article. If a gaming or non-gaming 31 employee registrant has not been employed in any position within a 32 gaming facility for a period of three years, the registration of that 33 gaming or non-gaming employee shall lapse. 34 3. No gaming or non-gaming employee registration shall be denied or 35 revoked on the basis of a [misdemeanor] conviction of any of the 36 offenses enumerated in this article as disqualification criteria or the 37 commission of any act or acts which would constitute any offense under 38 section [one thousand three] thirteen hundred eighteen of this [title] 39 article, provided that the registrant has affirmatively demonstrated the 40 registrant's rehabilitation, pursuant to article twenty-three-A of the 41 correction law. 42 4. For the purposes of this section, each gaming or non-gaming regis- 43 trant shall submit to the commission the registrant's name, address, 44 fingerprints and written consent for a criminal history information to 45 be performed. The commission is hereby authorized to exchange finger- 46 print data with and receive criminal history information as defined in 47 paragraph (c) of subdivision one of section eight hundred forty-five-b 48 of the executive law from the state division of criminal justice 49 services and the federal bureau of investigation consistent with appli- 50 cable state and federal laws, rules and regulations. The registrant 51 shall pay the fee for such criminal history information as established 52 pursuant to article thirty-five of the executive law. The state division 53 of criminal justice services shall promptly notify the commission in the 54 event a current or prospective licensee or registrant, who was the 55 subject of a criminal history information pursuant to this section, isS. 1509--A 75 A. 2009--A 1 arrested for a crime or offense in this state after the date the check 2 was performed. 3 5. Upon [receipt of such criminal history information] determination 4 that an applicant is disqualified on the basis of the applicant's crimi- 5 nal history, the [Commission] commission shall provide such applicant 6 with a copy of such criminal history information, together with a copy 7 of article twenty-three-A of the correction law, and inform such appli- 8 cant of his or her right to seek correction of any incorrect information 9 contained in such criminal history information pursuant to regulations 10 and procedures established by the division of criminal justice services. 11 Except as otherwise provided by law, such criminal history information 12 shall be confidential and any person who willfully permits the release 13 of such confidential criminal history information to persons not permit- 14 ted to receive such information shall be guilty of a misdemeanor. 15 6. Each applicant for a gaming registration shall produce such infor- 16 mation, documentation and assurances as may be required to establish by 17 clear and convincing evidence the applicant's good character, honesty 18 and integrity. Such information shall include data pertaining to charac- 19 ter, reputation, criminal history information and prior associations 20 with gaming operations in any capacity, position, or employment in a 21 jurisdiction that permits such activity. 22 § 8. Section 1325 of the racing, pari-mutuel wagering and breeding 23 law, as added by chapter 174 of the laws of 2013, is amended to read as 24 follows: 25 § 1325. Approval, denial and renewal of employee licenses and regis- 26 trations. 1. Upon the filing of an application for a casino key employee 27 license or gaming employee registration required by this article and 28 after submission of such supplemental information as the commission may 29 require, the commission shall conduct or cause to be conducted such 30 investigation into the qualification of the applicant, and the commis- 31 sion shall conduct such hearings concerning the qualification of the 32 applicant, in accordance with its regulations, as may be necessary to 33 determine qualification for such license or registration. Upon the 34 filing of an application for a non-gaming employee registration, and 35 after submission of such supplemental information as the commission may 36 require, the commission may, in its discretion, conduct or cause to be 37 conducted an investigation into the qualification of such applicant. 38 2. After such investigation, the commission may either deny the appli- 39 cation or grant a license or registration to an applicant whom it deter- 40 mines to be qualified to hold such license or registration. The granting 41 of any such license or registration shall apply only to the job title 42 included in the application and to its associated duties. The commission 43 may, upon request and at its sole discretion, allow transfer of the 44 license or registration to another job title upon determination that the 45 original application would have been satisfactory had it been submitted 46 for the new title. 47 3. The commission shall have the authority to deny any application 48 pursuant to the provisions of this article following notice and opportu- 49 nity for hearing. 50 4. When the commission grants [an application] a license or registra- 51 tion, the commission may limit or place such restrictions thereupon as 52 it may deem necessary in the public interest. 53 5. After an application for a casino key employee license is submit- 54 ted, final action of the commission shall be taken within ninety days 55 after completion of all hearings and investigations and the receipt of 56 all information required by the commission.S. 1509--A 76 A. 2009--A 1 6. Licenses and registrations of casino key employees and gaming and 2 non-gaming employees issued pursuant to this article shall remain valid 3 for five years unless suspended, revoked or voided pursuant to law. Such 4 licenses and registrations may be renewed by the holder thereof upon 5 application, on a form prescribed by the commission, and payment of the 6 applicable fee. Notwithstanding the [forgoing] foregoing, if a gaming or 7 non-gaming employee registrant has not been employed in any position 8 within a gaming facility for a period of three years, the registration 9 of that gaming or non-gaming employee shall lapse. 10 7. Subsequent to the issuance of a license or registration, the 11 commission may suspend, revoke, or limit the license or registration 12 upon a finding that an applicant is no longer qualified to hold such 13 license or registration in accordance with this article, or as it may 14 deem necessary to protect the public interest, following notice and an 15 opportunity for a hearing. The commission may temporarily suspend a 16 license or registration pending any investigation, prosecution, or hear- 17 ing if it is deemed necessary to do so to protect the integrity of 18 gaming activities. 19 8. The commission shall establish by regulation appropriate fees to be 20 paid upon the filing of the required applications. Such fees shall be 21 deposited into the commercial gaming revenue fund. 22 § 9. Subdivision 3 of section 1326 of the racing, pari-mutuel wagering 23 and breeding law, as added by chapter 174 of the laws of 2013, is 24 amended to read as follows: 25 3. Vendors providing goods and services to gaming facility licensees 26 or applicants ancillary to gaming, including vendors with access to the 27 player database or sensitive player information, vendors with heightened 28 security access or information, and junket enterprises shall be required 29 to be licensed as an ancillary casino vendor enterprise and shall comply 30 with the standards for casino vendor license applicants. The commission 31 may also require any vendor regularly conducting over two hundred fifty 32 thousand dollars of business with a gaming licensee or applicant within 33 a twelve-month period or one hundred thousand dollars of business within 34 a three-month period to be licensed as an ancillary gaming vendor. 35 § 10. Subdivision 4 of section 1326 of the racing, pari-mutuel wager- 36 ing and breeding law, as added by chapter 174 of the laws of 2013, is 37 amended to read as follows: 38 4. Each casino vendor enterprise required to be licensed pursuant to 39 subdivision one of this section, as well as its owners; management and 40 supervisory personnel[; and employees if such employees have responsi-41bility for services to a gaming facility applicant or licensee,] must 42 qualify under the standards, except residency, established for quali- 43 fication of a casino key employee under this article. Employees of such 44 vendors that have responsibility for services to a gaming facility 45 applicant or licensee must qualify under the standards established for 46 qualification of a gaming employee registration under this article. 47 Each ancillary casino vendor enterprise required to be licensed pursu- 48 ant to subdivision three of this section, as well as its owners; manage- 49 ment; supervisory personnel and employees that have responsibility for 50 services to a gaming facility applicant or licensee must qualify under 51 the standards established for qualification of a gaming employee regis- 52 tration under this article. 53 § 11. Subdivision 5 of section 1326 of the racing, pari-mutuel wager- 54 ing and breeding law, as added by chapter 174 of the laws of 2013, is 55 amended to read as follows:S. 1509--A 77 A. 2009--A 1 5. Any vendor that offers goods or services to a gaming facility 2 applicant or licensee in excess of twenty-five thousand dollars within a 3 twelve-month period that is not included in subdivision one [or], two or 4 three of this section including, but not limited to site contractors and 5 subcontractors, shopkeepers located within the facility, gaming schools 6 that possess slot machines for the purpose of instruction, [and any7non-supervisory employee of a junket enterprise licensed under subdivi-8sion three of this section] vending machine providers, linen suppliers, 9 garbage handlers, maintenance companies, limousine services, and food 10 purveyors, shall be required to register with the commission in accord- 11 ance with the regulations promulgated under this article. 12 Prior to conducting business with any vendor not included in subdivi- 13 sion one or two of this section, which is providing business worth less 14 than the thresholds provided in this subdivision, a gaming facility 15 applicant or licensee shall notify the commission of the intended trans- 16 action, along with any history of transactions with such vendor, to 17 allow for verification that the licensing requirements of this section 18 do not apply. 19 All employees of a vendor registered pursuant to this section that 20 provide services upon the premises of a gaming facility are required to 21 be registered as and meet the standards of a non-gaming employee. 22 Notwithstanding the provisions aforementioned, the executive director 23 may, consistent with the public interest and the policies of this arti- 24 cle, direct that individual vendors registered pursuant to this subdivi- 25 sion be required to apply for either a casino vendor enterprise license 26 pursuant to subdivision one of this section, or an ancillary vendor 27 industry enterprise license pursuant to subdivision three of this 28 section, as directed by the commission. The executive director may also 29 order that any enterprise licensed as or required to be licensed as an 30 ancillary casino vendor enterprise pursuant to subdivision three of this 31 section be required to apply for a casino vendor enterprise license 32 pursuant to subdivision one of this section. The executive director may 33 also, in his or her discretion, order that an independent software 34 contractor not otherwise required to be registered be either registered 35 as a vendor pursuant to this subdivision or be licensed pursuant to 36 either subdivision one or three of this section. 37 [Each ancillary casino vendor enterprise required to be licensed38pursuant to subdivision three of this section, as well as its owners,39management and supervisory personnel, and employees if such employees40have responsibility for services to a gaming facility applicant or41licensee, shall establish their good character, honesty and integrity by42clear and convincing evidence and shall provide such financial informa-43tion as may be required by the commission. Any enterprise required to be44licensed as an ancillary casino vendor enterprise pursuant to this45section shall be permitted to transact business with a gaming facility46licensee upon filing of the appropriate vendor registration form and47application for such licensure.] 48 § 12. Subdivision 6 of section 1326 of the racing, pari-mutuel wager- 49 ing and breeding law, as added by chapter 174 of the laws of 2013, is 50 amended to read as follows: 51 6. Any applicant, licensee or qualifier of a casino vendor enterprise 52 license or of an ancillary casino vendor enterprise license under subdi- 53 vision one of this section, and any vendor registrant under subdivision 54 five of this section shall be disqualified in accordance with the crite- 55 ria contained in section [one thousand three] thirteen hundred eighteen 56 of this article, except that no such [ancillary casino vendor enterpriseS. 1509--A 78 A. 2009--A 1license under subdivision three of this section or vendor registration2under subdivision five of this section] applicant, licensee or qualifier 3 shall be denied or revoked if such [vendor registrant] applicant, licen- 4 see or qualifier can affirmatively demonstrate rehabilitation pursuant 5 to article twenty-three-A of the correction law. 6 § 13. Section 1326 of the racing, pari-mutuel wagering and breeding 7 law is amended by adding a new subdivision 11 to read as follows: 8 11. Notwithstanding the preceding subdivisions, the executive director 9 may, in his or her discretion, waive any of the requirements of this 10 section when a gaming facility applicant or licensee can demonstrate 11 that the business relationship with any individual vendor will be limit- 12 ed in scope and duration and that the public interest and the policies 13 of this article would not be diminished by such waiver. In requesting 14 such waiver, the gaming facility applicant or licensee shall provide any 15 and all information needed to make such determination and any and all 16 information needed as a condition of such waiver. The executive director 17 may revoke any such waiver at any time upon a determination that the 18 circumstances upon which such waiver was granted have changed. 19 § 14. This act shall take effect immediately. 20 PART LL 21 Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of 22 section 1306-a of the real property tax law, as amended by section 6 of 23 part N of chapter 58 of the laws of 2011, is amended to read as follows: 24 (i) The tax savings for each parcel receiving the exemption authorized 25 by section four hundred twenty-five of this chapter shall be computed by 26 subtracting the amount actually levied against the parcel from the 27 amount that would have been levied if not for the exemption, provided 28 however, that [beginning with] for the two thousand eleven-two thousand 29 twelve through two thousand eighteen-two thousand nineteen school [year] 30 years, the tax savings applicable to any "portion" (which as used herein 31 shall mean that part of an assessing unit located within a school 32 district) shall not exceed the tax savings applicable to that portion in 33 the prior school year multiplied by one hundred two percent, with the 34 result rounded to the nearest dollar; and provided further that begin- 35 ning with the two thousand nineteen-two thousand twenty school year: (A) 36 for purposes of the exemption authorized by section four hundred twen- 37 ty-five of this chapter, the tax savings applicable to any portion shall 38 not exceed the tax savings for the prior year, and (B) for purposes of 39 the credit authorized by subsection (eee) of section six hundred six of 40 the tax law, the tax savings applicable to any portion shall not exceed 41 the tax savings applicable to that portion in the prior school year 42 multiplied by one hundred two percent, with the result rounded to the 43 nearest dollar. The tax savings attributable to the basic and enhanced 44 exemptions shall be calculated separately. It shall be the responsibil- 45 ity of the commissioner to calculate tax savings limitations for 46 purposes of this subdivision. 47 § 2. Subparagraph (G) of paragraph 1 of subsection (eee) of section 48 606 of the tax law, as amended by section 8 of part A of chapter 73 of 49 the laws of 2016, is amended to read as follows: 50 (G) "STAR tax savings" means the tax savings attributable to the STAR 51 exemption within a portion of a school district, as determined by the 52 commissioner pursuant to subdivision two of section thirteen hundred 53 six-a of the real property tax law for purposes of the credit authorized 54 by this subsection.S. 1509--A 79 A. 2009--A 1 § 3. This act shall take effect immediately. 2 PART MM 3 Section 1. Section 1405-B of the tax law is amended by adding a new 4 subdivision (c) to read as follows: 5 (c) The information contained within information returns filed under 6 subdivision (b) of this section may be provided by the commissioner to 7 local assessors for use in real property tax administration, and such 8 information shall not be subject to the secrecy provisions set forth in 9 section fourteen hundred eighteen of this chapter, provided, however, 10 that the commissioner shall not disclose social security numbers or 11 employer identification numbers. 12 § 2. This act shall take effect January 1, 2020. 13 PART NN 14 Section 1. Paragraph 3 of subsection (e-1) of section 606 of the tax 15 law, as added by section 2 of part K of chapter 59 of the laws of 2014, 16 is amended as follows: 17 (3) Determination of credit. For taxable years after two thousand 18 thirteen [and prior to two thousand sixteen], the amount of the credit 19 allowable under this subsection shall be determined as follows: 20 If household gross income Excess real property The credit amount is 21 for the taxable year is: taxes are the excess the following 22 of real property tax percentage of excess 23 equivalent or the property taxes: 24 excess of qualifying 25 real property taxes 26 over the following 27 percentage of 28 household gross 29 income: 30 Less than $100,000 4 4.5 31 $100,000 to less than 5 3.0 32 $150,000 33 $150,000 to less than 6 1.5 34 $200,000 35 Notwithstanding the foregoing provisions, the maximum credit deter- 36 mined under this subparagraph may not exceed five hundred dollars. 37 § 2. This act shall take effect immediately and shall apply to taxable 38 years beginning on and after January 1, 2016; provided, however, that 39 the amendments to subsection (e-1) of section 606 of the tax law made by 40 section one of this act shall not affect the repeal of such subsection 41 and shall be deemed to be repealed therewith. 42 PART OO 43 Section 1. Subdivision v of section 233 of the real property law, as 44 amended by chapter 566 of the laws of 1996, is amended to read as 45 follows: 46 v. 1. On and after April first, nineteen hundred eighty-nine, the 47 commissioner of housing and community renewal shall have the power and 48 duty to enforce and ensure compliance with the provisions of this 49 section. However, the commissioner shall not have the power or duty toS. 1509--A 80 A. 2009--A 1 enforce manufactured home park rules and regulations established under 2 subdivision f of this section. 3 2. On or before January first, nineteen hundred eighty-nine, each 4 manufactured home park owner or operator shall file a registration 5 statement with the commissioner and shall thereafter file an annual 6 registration statement on or before January first of each succeeding 7 year. The commissioner, by regulation, shall provide that such registra- 8 tion statement shall include only the names of all persons owning an 9 interest in the park, the names of all tenants of the park, all services 10 provided by the park owner to the tenants and a copy of all current 11 manufactured home park rules and regulations. The reporting of such 12 information to the commissioner of taxation and finance pursuant to 13 subparagraph (B) of paragraph six of subsection (eee) of section six 14 hundred six of the tax law shall be deemed to satisfy the requirements 15 of this paragraph. 16 3. Whenever there shall be a violation of this section, an application 17 may be made by the commissioner of housing and community renewal in the 18 name of the people of the state of New York to a court or justice having 19 jurisdiction by a special proceeding to issue an injunction, and upon 20 notice to the defendant of not less than five days, to enjoin and 21 restrain the continuance of such violation; and if it shall appear to 22 the satisfaction of the court or justice that the defendant has, in 23 fact, violated this section, an injunction may be issued by such court 24 or justice, enjoining and restraining any further violation and with 25 respect to this subdivision, directing the filing of a registration 26 statement. In any such proceeding, the court may make allowances to the 27 commissioner of housing and community renewal of a sum not exceeding two 28 thousand dollars against each defendant, and direct restitution. When- 29 ever the court shall determine that a violation of this section has 30 occurred, the court may impose a civil penalty of not more than one 31 thousand five hundred dollars for each violation. Such penalty shall be 32 deposited in the manufactured home cooperative fund, created pursuant to 33 section fifty-nine-h of the private housing finance law. In connection 34 with any such proposed application, the commissioner of housing and 35 community renewal is authorized to take proof and make a determination 36 of the relevant facts and to issue subpoenas in accordance with the 37 civil practice law and rules. The provisions of this subdivision shall 38 not impair the rights granted under subdivision u of this section. 39 § 2. Subparagraph (B) of paragraph 6 of subsection (eee) of section 40 606 of the tax law, as amended by section 8 of part A of chapter 73 of 41 the laws of 2016, is amended to read as follows: 42 (B) (i) In the case of property consisting of a mobile home that is 43 described in paragraph (1) of subdivision two of section four hundred 44 twenty-five of the real property tax law, the amount of the credit 45 allowable with respect to such mobile home shall be equal to the basic 46 STAR tax savings for the school district portion, or the enhanced STAR 47 tax savings for the school district portion, whichever is applicable, 48 that would be applied to a separately assessed parcel in the school 49 district portion with a taxable assessed value equal to twenty thousand 50 dollars multiplied by the latest state equalization rate or special 51 equalization rate for the assessing unit in which the mobile home is 52 located. Provided, however, that if the commissioner is in possession of 53 information, including but not limited to assessment records, that 54 demonstrates to the commissioner's satisfaction that the taxpayer's 55 mobile home is worth more than twenty thousand dollars, or if the 56 taxpayer provides the commissioner with such information, the taxpayer'sS. 1509--A 81 A. 2009--A 1 credit shall be increased accordingly, but in no case shall the credit 2 exceed the basic STAR tax savings or enhanced STAR tax savings, whichev- 3 er is applicable, for the school district portion. 4 (ii) The commissioner may implement an electronic system for the 5 reporting of information by owners and operators of manufactured home 6 parks, as defined by section two hundred thirty-three of the real prop- 7 erty law. Upon the implementation of such a system, each such owner and 8 operator shall file quarterly electronic statements with the commission- 9 er no later than twenty-one days after the end of each calendar quarter. 10 Such statement shall require reporting of names of all persons owning an 11 interest in the park, the services provided by the park owner to the 12 tenants, the names and addresses of all tenants of the park, whether the 13 tenant leases or owns the home, and such additional information as the 14 commissioner may deem necessary for the proper administration of the 15 STAR exemption established pursuant to section four hundred twenty-five 16 of the real property tax law and the STAR credit and any other property 17 tax-based credit established pursuant to this section. In the case of a 18 registration statement for the first calendar quarter of a year, such 19 statement shall also include a copy of all current manufactured home 20 park rules and regulations. The commissioner shall provide the commis- 21 sioner of housing and community renewal with the information contained 22 in each quarterly report no later than thirty days after the receipt 23 thereof. 24 § 3. This act shall take effect immediately. 25 PART PP 26 Section 1. Subparagraph (iv) of paragraph (b) of subdivision 4 of 27 section 425 of the real property tax law, as amended by section 2 of 28 part B of chapter 59 of the laws of 2018, is amended to read as follows: 29 (iv) (A) Effective with applications for the enhanced exemption on 30 final assessment rolls to be completed in two thousand nineteen, the 31 application form shall indicate that all owners of the property and any 32 owners' spouses residing on the premises must have their income eligi- 33 bility verified annually by the department and must furnish their 34 taxpayer identification numbers in order to facilitate matching with 35 records of the department. The income eligibility of such persons shall 36 be verified annually by the department, and the assessor shall not 37 request income documentation from them. All applicants for the enhanced 38 exemption and all assessing units shall be required to participate in 39 this program, which shall be known as the STAR income verification 40 program. 41 (B) Effective with final assessment rolls to be completed in two thou- 42 sand twenty, the commissioner shall also annually verify the eligibility 43 of such persons for the enhanced exemption on the basis of age and resi- 44 dency as well as income. 45 (C) Where the commissioner finds that the enhanced exemption should be 46 replaced with a basic exemption because [the income limitation applica-47ble to the enhanced exemption has been exceeded] the property is only 48 eligible for a basic exemption, he or she shall provide the property 49 owners with notice and an opportunity to submit to the commissioner 50 evidence to the contrary. Where the commissioner finds that the enhanced 51 exemption should be removed or denied without being replaced with a 52 basic exemption because [the income limitation applicable to the basic53exemption has also been exceeded] the property is not eligible for 54 either exemption, he or she shall provide the property owners withS. 1509--A 82 A. 2009--A 1 notice and an opportunity to submit to the commissioner evidence to the 2 contrary. In either case, if the owners fail to respond to such notice 3 within forty-five days from the mailing thereof, or if their response 4 does not show to the commissioner's satisfaction that the property is 5 eligible for the exemption claimed, the commissioner shall direct the 6 assessor or other person having custody or control of the assessment 7 roll or tax roll to either replace the enhanced exemption with a basic 8 exemption, or to remove or deny the enhanced exemption without replacing 9 it with a basic exemption, as appropriate. The commissioner shall 10 further direct such person to correct the roll accordingly. Such a 11 directive shall be binding upon the assessor or other person having 12 custody or control of the assessment roll or tax roll, and shall be 13 implemented by such person without the need for further documentation or 14 approval. 15 [(C)] (D) Notwithstanding any provision of law to the contrary, 16 neither an assessor nor a board of assessment review has the authority 17 to consider an objection to the replacement or removal or denial of an 18 exemption pursuant to this subdivision, nor may such an action be 19 reviewed in a proceeding to review an assessment pursuant to title one 20 or one-A of article seven of this chapter. Such an action may only be 21 challenged before the department. If a taxpayer is dissatisfied with the 22 department's final determination, the taxpayer may appeal that determi- 23 nation to the state board of real property tax services in a form and 24 manner to be prescribed by the commissioner. Such appeal shall be filed 25 within forty-five days from the issuance of the department's final 26 determination. If dissatisfied with the state board's determination, the 27 taxpayer may seek judicial review thereof pursuant to article seventy- 28 eight of the civil practice law and rules. The taxpayer shall otherwise 29 have no right to challenge such final determination in a court action, 30 administrative proceeding or any other form of legal recourse against 31 the commissioner, the department, the state board of real property tax 32 services, the assessor or other person having custody or control of the 33 assessment roll or tax roll regarding such action. 34 § 2. Paragraph (c) of subdivision 13 of section 425 of the real prop- 35 erty tax law, as amended by section 1 of part J of chapter 57 of the 36 laws of 2013, is amended, and a new paragraph (f) is added to read as 37 follows: 38 (c) Additional consequences. A penalty tax may be imposed pursuant to 39 this subdivision whether or not the improper exemption has been revoked 40 in the manner provided by this section. In addition, a person or persons 41 who are found to have made a material misstatement shall be disqualified 42 from further exemption pursuant to this section, and from the credit 43 authorized by subsection (eee) of section six hundred six of the tax 44 law, for a period of [five years if such misstatement appears on an45application filed prior to October first, two thousand thirteen, and] 46 six years [if such misstatement appears on an application filed there-47after]. In addition, such person or persons may be subject to prose- 48 cution pursuant to the penal law. 49 (f) Assessor notification. The assessor shall inform the commissioner 50 whenever a person or persons is found to have made a material misstate- 51 ment on an application for the exemption authorized by this section. 52 § 3. Paragraph (13) of subsection (eee) of section 606 of the tax law 53 is amended by adding a new subparagraph (E) to read as follows: 54 (E) A taxpayer who is found to have made a material misstatement on an 55 application for the credit authorized by this section shall be disquali- 56 fied from receiving such credit for six years. As used herein, the termS. 1509--A 83 A. 2009--A 1 "material misstatement" shall have the same meaning as set forth in 2 paragraph (a) of subdivision thirteen of section four hundred twenty- 3 five of the real property tax law. 4 § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section 5 606 of the tax law, as amended by section 8 of part A of chapter 73 of 6 the laws of 2016, is amended to read as follows: 7 (E) If the commissioner determines after issuing an advance payment 8 that it was issued in an excessive amount or to an ineligible or incor- 9 rect party, the commissioner shall be empowered to utilize any of the 10 procedures for collection, levy and lien of personal income tax set 11 forth in this article, any other relevant procedures referenced within 12 the provisions of this article, and any other law as may be applicable, 13 to recoup the improperly issued amount; provided that in the event such 14 party was determined to be ineligible on the basis that his or her 15 primary residence received the STAR exemption in the associated fiscal 16 year, the improperly issued credit amount shall be deemed a clerical 17 error and shall be paid upon notice and demand without the issuance of a 18 notice of deficiency and shall be assessed, collected and paid in the 19 same manner as taxes. 20 § 5. This act shall take effect immediately. 21 PART QQ 22 Section 1. Section 425 of the real property tax law is amended by 23 adding a new subdivision 17 to read as follows: 24 17. Certain disclosures authorized. (a) Notwithstanding any provision 25 of law to the contrary, when the commissioner has determined that the 26 owner or owners of a parcel of real property are ineligible for either 27 the STAR exemption authorized by this section or the STAR credit author- 28 ized by subsection (eee) of section six hundred six of the tax law, the 29 commissioner may disclose the names of such owner or owners to the 30 assessor of the assessing unit in which the property is located. In 31 addition: 32 (i) Where the commissioner has found that the STAR exemption or credit 33 could not be granted because the income of the owner or owners is above 34 the applicable limit, the commissioner may so advise the assessor, but 35 shall not disclose the amount of income of any such owner or owners. 36 (ii) Where the commissioner has found that the STAR exemption or cred- 37 it could not be granted because the property is not the primary resi- 38 dence of one or more of the owners thereof, or that the owner's spouse 39 is receiving a STAR exemption or STAR credit on another residence or a 40 comparable benefit on a residence in another state, the commissioner may 41 so advise the assessor. The commissioner may further advise the assessor 42 of the facts supporting that determination, including the location or 43 locations of the property owner's other residence or residences, if any. 44 (iii) Where the commissioner has found that the enhanced STAR 45 exemption or credit could not be granted because the owner or owners do 46 not meet the applicable age requirement, the commissioner may so advise 47 the assessor, and may further advise the assessor of their birth dates 48 if known. 49 (iv) Where the commissioner has found that the enhanced STAR exemption 50 or credit could not be granted because the owner or owners failed to 51 enroll in the income verification program or failed to submit the income 52 worksheet required thereunder, the commissioner may so advise the asses- 53 sor.S. 1509--A 84 A. 2009--A 1 (b) Information disclosed to an assessor pursuant to this subdivision 2 shall be used only for purposes of real property tax administration. It 3 shall be deemed confidential otherwise, and shall not be subject to the 4 provisions of article six of the public officers law. 5 § 2. Section 467 of the real property tax law is amended by adding a 6 new subdivision 11 to read as follows: 7 11. (a) Notwithstanding any provision of law to the contrary, upon the 8 request of an assessor, the commissioner may disclose to the assessor 9 the names and addresses of the owners of property in that assessor's 10 assessing unit who are receiving the enhanced STAR exemption or enhanced 11 STAR credit and whose federal adjusted gross income is less than the 12 uppermost amount specified by subparagraph three of paragraph (b) of 13 subdivision one of this section (represented therein as M + $8,400). 14 Such amount shall be determined without regard to any local options that 15 the municipal corporation may or may not have exercised in relation to 16 increasing or decreasing the maximum income eligibility level authorized 17 by this section, provided that the amount so determined for a city with 18 a population of one million or more shall take into account the distinct 19 maximum income eligibility level established for such city by paragraph 20 (a) of subdivision three of this section. In no case shall the commis- 21 sioner disclose to an assessor the amount of an owner's federal adjusted 22 gross income. 23 (b) The assessor may use the information contained in such a report to 24 contact those owners who are not already receiving the exemption author- 25 ized by this section and to suggest that they consider applying for it. 26 Provided, however, that nothing contained herein shall be construed as 27 enabling any person or persons to qualify for the exemption authorized 28 by this section on the basis of their federal adjusted gross income, 29 rather than on the basis of their income as determined pursuant to the 30 provisions of paragraph (a) of subdivision three of this section. 31 (c) Information disclosed to an assessor pursuant to this subdivision 32 shall be used only for purposes of real property tax administration. It 33 shall be deemed confidential otherwise, and shall not be subject to the 34 provisions of article six of the public officers law. 35 § 3. Section 1532 of the real property tax law is amended by adding a 36 new subdivision 5 to read as follows: 37 5. Information regarding decedents provided by the commissioner to a 38 county director of real property tax services pursuant to subsection (c) 39 of section six hundred fifty-one of the tax law shall be used only for 40 purposes of real property tax administration. The contents of the report 41 may be shared with the assessor and tax collecting officer of the munic- 42 ipal corporation in which the decedent's former residence is located, 43 and with the enforcing officer if such residence is subject to delin- 44 quent taxes. The information shall be deemed confidential otherwise, and 45 shall not be subject to the provisions of article six of the public 46 officers law. 47 § 4. Subsection (c) of section 651 of the tax law, as amended by chap- 48 ter 783 of the laws of 1962, is amended to read as follows: 49 (c) Decedents. The return for any deceased individual shall be made 50 and filed by his executor, administrator, or other person charged with 51 his property. If a final return of a decedent is for a fractional part 52 of a year, the due date of such return shall be the fifteenth day of the 53 fourth month following the close of the twelve-month period which began 54 with the first day of such fractional part of the year. Notwithstanding 55 any provision of law to the contrary, when a return has been filed for a 56 decedent, the commissioner may disclose the decedent's name, address,S. 1509--A 85 A. 2009--A 1 and the date of death to the director of real property tax services of 2 the county in which the address reported on such return is located. 3 § 5. This act shall take effect immediately. 4 PART RR 5 Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real 6 property tax law, as added by section 1 of part FF of chapter 57 of the 7 laws of 2010, is amended to read as follows: 8 (b-1) Income. For final assessment rolls to be used for the levy of 9 taxes for the two thousand eleven-two thousand twelve through two thou- 10 sand eighteen-two thousand nineteen school [year and thereafter] years, 11 the parcel's affiliated income may be no greater than five hundred thou- 12 sand dollars, as determined by the commissioner [of taxation and13finance] pursuant to subdivision fourteen of this section or section one 14 hundred seventy-one-u of the tax law, in order to be eligible for the 15 basic exemption authorized by this section. Beginning with the two thou- 16 sand nineteen-two thousand twenty school year, for purposes of the 17 exemption authorized by this section, the parcel's affiliated income may 18 be no greater than two hundred fifty thousand dollars, as so determined. 19 As used herein, the term "affiliated income" shall mean the combined 20 income of all of the owners of the parcel who resided primarily thereon 21 on the applicable taxable status date, and of any owners' spouses resid- 22 ing primarily thereon. For exemptions on final assessment rolls to be 23 used for the levy of taxes for the two thousand eleven-two thousand 24 twelve school year, affiliated income shall be determined based upon the 25 parties' incomes for the income tax year ending in two thousand nine. In 26 each subsequent school year, the applicable income tax year shall be 27 advanced by one year. The term "income" as used herein shall have the 28 same meaning as in subdivision four of this section. 29 § 2. Subparagraph (A) of paragraph 3 of subsection (eee) of section 30 606 of the tax law, as added by section 8 of part A of chapter 73 of the 31 laws of 2016, is amended to read as follows: 32 (A) Beginning with taxable years after two thousand fifteen, a basic 33 STAR credit shall be available to a qualified taxpayer if the affiliated 34 income of the parcel that serves as the taxpayer's primary residence is 35 less than or equal to five hundred thousand dollars. The income limit 36 established for the basic STAR exemption by paragraph (b-1) of subdivi- 37 sion three of section four hundred twenty-five of the real property tax 38 law shall not be taken into account when determining eligibility for the 39 basic STAR credit. 40 § 3. This act shall take effect immediately. 41 PART SS 42 Section 1. Subdivision 6 of section 1306-a of the real property tax 43 law, as amended by section 3 of part TT of chapter 59 of the laws of 44 2017, is amended to read as follows: 45 6. When the commissioner determines, at least twenty days prior to the 46 levy of school district taxes, that an advance credit of the personal 47 income tax credit authorized by subsection (eee) of section six hundred 48 six of the tax law will be provided to the owners of a parcel in that 49 school district, he or she shall so notify the assessor, the county 50 director of real property tax services, and the authorities of the 51 school district, who shall cause a statement to be placed on the tax 52 bill for the parcel in substantially the following form: "An estimatedS. 1509--A 86 A. 2009--A 1 STAR check has been or will be mailed to you [upon issuance] by the NYS 2 Tax Department. Any overpayment or underpayment can be reconciled on 3 your next tax return or STAR credit check." 4 Notwithstanding any provision of law to the contrary, in the event 5 that the parcel in question had been granted a STAR exemption on the 6 assessment roll upon which school district taxes are to be levied, such 7 exemption shall be deemed null and void, shall be removed from the 8 assessment roll, and shall be disregarded when the parcel's tax liabil- 9 ity is determined. The assessor or other local official or officials 10 having custody and control of the data file used to generate school 11 district tax rolls and tax bills shall be authorized and directed to 12 change such file as necessary to enable the school district authorities 13 to discharge the duties imposed upon them by this subdivision. 14 § 2. This act shall take effect immediately. 15 PART TT 16 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real 17 property tax law, as added by section 1 of part D of chapter 60 of the 18 laws of 2016, is amended to read as follows: 19 (a-2) Notwithstanding any provision of law to the contrary, where [a20renewal] an application for the "enhanced" STAR exemption authorized by 21 subdivision four of this section has not been filed on or before the 22 taxable status date, and the owner believes that good cause existed for 23 the failure to file the [renewal] application by that date, the owner 24 may, no later than the last day for paying school taxes without incur- 25 ring interest or penalty, submit a written request to the commissioner 26 asking him or her to extend the filing deadline and grant the exemption. 27 Such request shall contain an explanation of why the deadline was 28 missed, and shall be accompanied by [a renewal] an application, reflect- 29 ing the facts and circumstances as they existed on the taxable status 30 date. After consulting with the assessor, the commissioner may extend 31 the filing deadline and grant the exemption if the commissioner is 32 satisfied that (i) good cause existed for the failure to file the 33 [renewal] application by the taxable status date, and that (ii) the 34 applicant is otherwise entitled to the exemption. The commissioner shall 35 mail notice of his or her determination to such owner and the assessor. 36 If the determination states that the commissioner has granted the 37 exemption, the assessor shall thereupon be authorized and directed to 38 correct the assessment roll accordingly, or, if another person has 39 custody or control of the assessment roll, to direct that person to make 40 the appropriate corrections. If the correction is not made before school 41 taxes are levied, the [failure to take the exemption into account in the42computation of the tax shall be deemed a "clerical error" for purposes43of title three of article five of this chapter, and shall be corrected44accordingly] school district authorities shall be authorized and 45 directed to take account of the fact that the commissioner has granted 46 the exemption by correcting the applicant's tax bill and/or issuing a 47 refund accordingly. 48 § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper- 49 ty tax law, as added by section 3 of part A of chapter 60 of the laws of 50 2016, is amended to read as follows: 51 (d) If the applicant is renouncing a STAR exemption in order to quali- 52 fy for the personal income tax credit authorized by subsection (eee) of 53 section six hundred six of the tax law, and no other exemptions are 54 being renounced on the same application, or if the applicant is renounc-S. 1509--A 87 A. 2009--A 1 ing a STAR exemption before school taxes have been levied on the assess- 2 ment roll upon which that exemption appears, no processing fee shall be 3 applicable. 4 § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper- 5 ty tax law, as amended by section 3 of part A of chapter 60 of the laws 6 of 2016, is amended to read as follows: 7 (a) For each assessment roll on which the renounced exemption appears, 8 the assessed value that was exempted shall be multiplied by the tax rate 9 or rates that were applied to that assessment roll, or in the case of a 10 renounced STAR exemption, the tax savings calculated pursuant to subdi- 11 vision two of section thirteen hundred six-a of this chapter. Interest 12 shall then be added to each such product at the rate prescribed by 13 section nine hundred twenty-four-a of this chapter or such other law as 14 may be applicable for each month or portion thereon since the levy of 15 taxes upon such assessment roll. 16 § 4. Paragraph 5 of subsection (eee) of section 606 of the tax law, as 17 amended by section 8 of part A of chapter 73 of the laws of 2016, is 18 amended to read as follows: 19 (5) Disqualification. A taxpayer shall not qualify for the credit 20 authorized by this subsection if the parcel that serves as the taxpay- 21 er's primary residence received the STAR exemption on the assessment 22 roll upon which school district taxes for the associated fiscal year 23 [where] were levied. Provided, however, that the taxpayer may remove 24 this disqualification by renouncing the exemption [and making any25required payments] by December thirty-first of the taxable year, as 26 provided by subdivision sixteen of section four hundred twenty-five of 27 the real property tax law, and making any required payments within the 28 time frame prescribed by section four hundred ninety-six of the real 29 property tax law. 30 § 5. This act shall take effect immediately. 31 PART UU 32 Section 1. The article heading of article 13-F of the public health 33 law, as amended by chapter 448 of the laws of 2012, is amended to read 34 as follows: 35 REGULATION OF TOBACCO PRODUCTS, 36 VAPOR PRODUCTS, ELECTRONIC CIGARETTES, 37 HERBAL CIGARETTES AND SMOKING 38 PARAPHERNALIA; DISTRIBUTION TO [MINORS] PERSONS UNDER THE 39 AGE OF TWENTY-ONE 40 § 2. Subdivisions 1 and 4 of section 1399-aa of the public health law, 41 subdivision 1 as amended by chapter 13 of the laws of 2003, and subdivi- 42 sion 4 as added by chapter 799 of the laws of 1992, are amended and six 43 new subdivisions 14, 15, 16, 17, 18 and 19 are added to read as follows: 44 1. "Enforcement officer" means the enforcement officer designated 45 pursuant to article thirteen-E of this chapter to enforce such article 46 and hold hearings pursuant thereto; provided that in a city with a popu- 47 lation of more than one million it shall also mean an officer or employ- 48 ee or any agency of such city that is authorized to enforce any local 49 law of such city related to the regulation of the sale of tobacco 50 products to [minors] persons under the age of twenty-one. 51 4. "Private club" means an organization with no more than an insignif- 52 icant portion of its membership comprised of people under the age of 53 [eighteen] twenty-one years that regularly receives dues and/or payments 54 from its members for the use of space, facilities and services.S. 1509--A 88 A. 2009--A 1 14. "Price reduction instrument" means any coupon, voucher, rebate, 2 card, paper, note, form, statement, ticket, image, or other issue, 3 whether in paper, digital, or any other form, used for commercial 4 purposes to receive an article, product, service, or accommodation with- 5 out charge or at a discounted price. 6 15. "Dealer" means a dealer, as defined in section four hundred seven- 7 ty of the tax law or a vapor products dealer as defined in section elev- 8 en hundred eighty of the tax law. 9 16. "Vapor product" means any noncombustible liquid or gel, regardless 10 of the presence of nicotine therein, that is manufactured into a 11 finished product for use in an electronic cigarette, electronic cigar, 12 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 13 similar device. "Vapor product" shall not include any product approved 14 by the United States food and drug administration as a drug or medical 15 device, or manufactured and dispensed pursuant to title five-A of arti- 16 cle thirty-three of the public health law. 17 17. "Tobacco and vapor products menu" means a booklet, pamphlet, or 18 other listing of tobacco products, herbal cigarettes, vapor products, 19 and electronic cigarettes offered for sale by the dealer and the price 20 of such products. The tobacco and vapor products menu may contain 21 pictures of and advertisements for tobacco products, herbal cigarettes, 22 vapor products and electronic cigarettes. 23 18. "Menu cover page" means the front cover of a tobacco and vapor 24 products menu or, if there is no front cover, the first page of a tobac- 25 co and vapor products menu. 26 19. "Characterizing flavor" means a distinguishable taste or aroma, 27 other than the taste or aroma of tobacco or menthol, imparted either 28 prior to or during consumption of a tobacco product, electronic ciga- 29 rettes and vapor products or component thereof, including, but not 30 limited to, tastes or aromas relating to any fruit, chocolate, vanilla, 31 honey, candy, cocoa, dessert, alcoholic beverage, herb or spice. 32 § 3. Section 1399-bb of the public health law, as amended by chapter 33 508 of the laws of 2000, the section heading and subdivisions 4 and 5 as 34 amended by chapter 4 of the laws of 2018 and subdivision 2 as amended by 35 chapter 13 of the laws of 2003, is amended to read as follows: 36 § 1399-bb. Distribution of tobacco products, vapor products, electron- 37 ic cigarettes or herbal cigarettes without charge. 1. No person engaged 38 in the business of selling or otherwise distributing tobacco products, 39 vapor products, electronic cigarettes or herbal cigarettes for commer- 40 cial purposes, or any agent or employee of such person, shall knowingly, 41 in furtherance of such business: 42 (a) distribute without charge any tobacco products or herbal ciga- 43 rettes to any individual, provided that the distribution of a package 44 containing tobacco products or herbal cigarettes in violation of this 45 subdivision shall constitute a single violation without regard to the 46 number of items in the package; or 47 (b) distribute [coupons] price reduction instruments which are redeem- 48 able for tobacco products [or], herbal cigarettes, vapor products, or 49 electronic cigarettes to any individual, provided that this subdivision 50 shall not apply to coupons contained in newspapers, magazines or other 51 types of publications, coupons obtained through the purchase of tobacco 52 products [or], herbal cigarettes, vapor products, or electronic ciga- 53 rettes or obtained at locations which sell tobacco products [or], herbal 54 cigarettes, vapor products, or electronic cigarettes provided that such 55 distribution is confined to a designated area or to coupons sent through 56 the mail.S. 1509--A 89 A. 2009--A 1 1-a. No person engaged in the business of selling or otherwise 2 distributing tobacco products, herbal cigarettes, vapor products, or 3 electronic cigarettes for commercial purposes, or any agent or employee 4 of such person, shall knowingly, in furtherance of such business: 5 (a) honor or accept a price reduction instrument in any transaction 6 related to the sale of tobacco products, herbal cigarettes, vapor 7 products, or electronic cigarettes to a consumer; 8 (b) sell or offer for sale tobacco products, herbal cigarettes, vapor 9 products, or electronic cigarettes to a consumer through any multi-pack- 10 age discount or otherwise provide to a consumer any tobacco products, 11 herbal cigarettes, vapor products, electronic cigarettes for less than 12 the listed price in exchange for the purchase of any other tobacco 13 products, herbal cigarettes, vapor products, or electronic cigarettes by 14 the consumer; 15 (c) sell, offer for sale, or otherwise provide any product other than 16 tobacco products, herbal cigarettes, vapor products, or electronic ciga- 17 rettes to a consumer for less than the listed price in exchange for the 18 purchase of tobacco products, herbal cigarettes, vapor products, or 19 electronic cigarettes by the consumer; or 20 (d) sell, offer for sale, or otherwise provide tobacco products, 21 herbal cigarettes, vapor products, or electronic cigarettes to a consum- 22 er for less than the listed price. 23 2. The prohibitions contained in subdivision one of this section shall 24 not apply to the following locations: 25 (a) private social functions when seating arrangements are under the 26 control of the sponsor of the function and not the owner, operator, 27 manager or person in charge of such indoor area; 28 (b) conventions and trade shows; provided that the distribution is 29 confined to designated areas generally accessible only to persons over 30 the age of [eighteen] twenty-one; 31 (c) events sponsored by tobacco [or], herbal cigarette, vapor 32 products, or electronic cigarette manufacturers provided that the 33 distribution is confined to designated areas generally accessible only 34 to persons over the age of [eighteen] twenty-one; 35 (d) bars as defined in subdivision one of section thirteen hundred 36 ninety-nine-n of this chapter; 37 (e) tobacco businesses as defined in subdivision eight of section 38 thirteen hundred ninety-nine-aa of this article; 39 (f) factories as defined in subdivision nine of section thirteen 40 hundred ninety-nine-aa of this article and construction sites; provided 41 that the distribution is confined to designated areas generally accessi- 42 ble only to persons over the age of [eighteen] twenty-one. 43 3. No person shall distribute tobacco products [or], herbal 44 cigarettes, vapor products, or electronic cigarettes at the locations 45 set forth in paragraphs (b), (c) and (f) of subdivision two of this 46 section unless such person gives five days written notice to the 47 enforcement officer. 48 4. No person engaged in the business of selling or otherwise distrib- 49 uting vapor products or electronic cigarettes for commercial purposes, 50 or any agent or employee of such person, shall knowingly, in furtherance 51 of such business, distribute without charge any vapor products or elec- 52 tronic cigarettes to any individual under [eighteen] twenty-one years of 53 age. 54 5. The distribution of tobacco products or herbal cigarettes pursuant 55 to subdivision two of this section or the distribution without charge of 56 vapor products or electronic cigarettes shall be made only to an indi-S. 1509--A 90 A. 2009--A 1 vidual who demonstrates, through (a) a driver's license or [other photo-2graphic] non-driver's identification card issued by [a government entity3or educational institution] the commissioner of motor vehicles, the 4 federal government, any United States territory, commonwealth or 5 possession, the District of Columbia, a state government within the 6 United States or a provincial government of the dominion of Canada, or 7 (b) a valid passport issued by the United States government or any other 8 country, or (c) an identification card issued by the armed forces of the 9 United States, indicating that the individual is at least [eighteen] 10 twenty-one years of age. Such identification need not be required of any 11 individual who reasonably appears to be at least [twenty-five] thirty 12 years of age; provided, however, that such appearance shall not consti- 13 tute a defense in any proceeding alleging the sale of a tobacco product, 14 vapor product, electronic cigarette or herbal cigarette or the distrib- 15 ution without charge of vapor products or electronic cigarettes to an 16 individual under twenty-one years of age. 17 § 4. The opening paragraph of section 1399-cc of the public health 18 law, as amended by chapter 542 of the laws of 2014, is amended to read 19 as follows: 20 Sale of tobacco products, herbal cigarettes, [liquid nicotine] vapor 21 products, electronic cigarettes, shisha, rolling papers or smoking 22 paraphernalia to [minors] persons under the age of twenty-one is prohib- 23 ited. 24 § 5. Paragraph (e) of subdivision 1 of section 1399-cc of the public 25 health law is REPEALED. 26 § 6. Subdivisions 2, 3, 4 and 7 of section 1399-cc of the public 27 health law, as amended by chapter 542 of the laws of 2014, are amended 28 to read as follows: 29 2. Any person operating a place of business wherein tobacco products, 30 herbal cigarettes, [liquid nicotine] vapor products, shisha or electron- 31 ic cigarettes, are sold or offered for sale is prohibited from selling 32 such products, herbal cigarettes, [liquid nicotine] vapor products, 33 shisha, electronic cigarettes or smoking paraphernalia to individuals 34 under [eighteen] twenty-one years of age, and shall post in a conspicu- 35 ous place a sign upon which there shall be imprinted the following 36 statement, "SALE OF CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBAC- 37 CO, SHISHA OR OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICO-38TINE] VAPOR PRODUCTS, ELECTRONIC CIGARETTES, ROLLING PAPERS OR SMOKING 39 PARAPHERNALIA, TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS 40 PROHIBITED BY LAW." Such sign shall be printed on a white card in red 41 letters at least one-half inch in height. 42 3. Sale of tobacco products, herbal cigarettes, [liquid nicotine] 43 vapor products, shisha or electronic cigarettes in such places, other 44 than by a vending machine, shall be made only to an individual who 45 demonstrates, through (a) a valid driver's license or non-driver's iden- 46 tification card issued by the commissioner of motor vehicles, the feder- 47 al government, any United States territory, commonwealth or possession, 48 the District of Columbia, a state government within the United States or 49 a provincial government of the dominion of Canada, or (b) a valid pass- 50 port issued by the United States government or any other country, or (c) 51 an identification card issued by the armed forces of the United States, 52 indicating that the individual is at least [eighteen] twenty-one years 53 of age. Such identification need not be required of any individual who 54 reasonably appears to be at least [twenty-five] thirty years of age, 55 provided, however, that such appearance shall not constitute a defense 56 in any proceeding alleging the sale of a tobacco product, herbal ciga-S. 1509--A 91 A. 2009--A 1 rettes, [liquid nicotine] vapor products, shisha or electronic ciga- 2 rettes to an individual under [eighteen] twenty-one years of age. 3 4. (a) Any person operating a place of business wherein tobacco 4 products, herbal cigarettes, [liquid nicotine] vapor products, shisha or 5 electronic cigarettes are sold or offered for sale may perform a trans- 6 action scan as a precondition for such purchases. 7 (b) In any instance where the information deciphered by the trans- 8 action scan fails to match the information printed on the driver's 9 license or non-driver identification card, or if the transaction scan 10 indicates that the information is false or fraudulent, the attempted 11 transaction shall be denied. 12 (c) In any proceeding pursuant to section thirteen hundred ninety- 13 nine-ee of this article, it shall be an affirmative defense that such 14 person had produced a driver's license or non-driver identification card 15 apparently issued by a governmental entity, successfully completed that 16 transaction scan, and that the tobacco product, herbal cigarettes or 17 [liquid nicotine] vapor products had been sold, delivered or given to 18 such person in reasonable reliance upon such identification and trans- 19 action scan. In evaluating the applicability of such affirmative defense 20 the commissioner shall take into consideration any written policy 21 adopted and implemented by the seller to effectuate the provisions of 22 this chapter. Use of a transaction scan shall not excuse any person 23 operating a place of business wherein tobacco products, herbal ciga- 24 rettes, [liquid nicotine] vapor products, shisha or electronic ciga- 25 rettes are sold, or the agent or employee of such person, from the exer- 26 cise of reasonable diligence otherwise required by this chapter. 27 Notwithstanding the above provisions, any such affirmative defense shall 28 not be applicable in any civil or criminal proceeding, or in any other 29 forum. 30 7. (a) No person operating a place of business wherein tobacco 31 products, herbal cigarettes, [liquid nicotine] vapor products, shisha or 32 electronic cigarettes are sold or offered for sale shall sell, permit to 33 be sold, offer for sale or display for sale any tobacco product, herbal 34 cigarettes, [liquid nicotine] vapor products, shisha or electronic ciga- 35 rettes in any manner, unless such products and cigarettes are stored for 36 sale [(a)] (i) behind a counter in an area accessible only to the 37 personnel of such business, or [(b)] (ii) in a locked container; 38 provided, however, such restriction shall not apply to tobacco busi- 39 nesses, as defined in subdivision eight of section thirteen hundred 40 ninety-nine-aa of this article, and to places to which admission is 41 restricted to persons [eighteen] twenty-one years of age or older. 42 (b) In addition to the requirements set forth in paragraph (a) of this 43 subdivision, no dealer shall permit the display of any tobacco product, 44 herbal cigarette, vapor product, or electronic cigarette in a manner 45 that permits a consumer to view any such item prior to purchase. Except 46 as provided for in paragraph (c) of this subdivision is not violated if: 47 (i) at the direct request of a customer at least twenty-one years of 48 age, such a customer handles the item, packaged or otherwise, to inspect 49 the product prior to purchase; or 50 (ii) such items are temporarily visible during restocking, the sale of 51 such items, or the carriage of such items into or out of the premises. 52 (c) No dealer shall display or permit the display of any tobacco prod- 53 uct, herbal cigarette, vapor product, or electronic cigarette for any 54 longer than necessary to complete the purposes identified in subpara- 55 graphs (i) and (ii) of paragraph (b) of this subdivision.S. 1509--A 92 A. 2009--A 1 (d) No dealer shall store any tobacco and vapor products menu in a 2 location where it is visible to customers or accessible to customers 3 without the assistance of the dealer. The menu shall also contain menu 4 cover page that shall prevent the inadvertent viewing of promotional or 5 other material contained within the tobacco and vapor products menu. 6 (e) No dealer shall provide any tobacco and vapor products menu or any 7 tobacco product, herbal cigarette, vapor product, or electronic ciga- 8 rette to any individual who has not demonstrated, through identification 9 which meets the requirements of subdivision three of this section, that 10 the individual is at least twenty-one years of age. Such identification 11 need not be required of any individual who reasonably appears to be over 12 the age of thirty, provided, however, that such appearance shall not 13 constitute a defense in any proceeding alleging the sale of such item to 14 an individual under twenty-one years of age. It shall be an affirmative 15 defense to a violation of this paragraph that the dealer successfully 16 performed a transaction scan of an individual's identification and that 17 a tobacco and vapor products menu, tobacco product, herbal cigarette, 18 vapor product, or electronic cigarette was provided to such individual 19 in reasonable reliance upon such identification and transaction scan. 20 (f) After a customer has completed viewing a tobacco and vapor 21 products menu, the dealer shall immediately return the tobacco and vapor 22 products menu to its storage location. 23 (g) Unless required otherwise by regulation of the department, the 24 menu cover page of the tobacco and vapor products menu shall be blank or 25 contain only the words "Tobacco and Vapor Products Menu" and shall not 26 contain any advertising or other promotional material. 27 (h) The commissioner may issue rules and regulations governing the use 28 of the tobacco and vapor products menu and menu cover page. 29 (i) Paragraphs (a) through (g) of this subdivision shall not apply to 30 a place of business to which admission is restricted solely to persons 31 twenty-one years of age or older. 32 (j) Nothing herein shall be construed to restrict the authority of any 33 county, city, town, or village to enact, adopt, promulgate and enforce 34 additional local laws, ordinances, regulations or other measures which 35 are in addition to or more stringent than either of the provisions of 36 this article. 37 § 7. Section 1399-dd of the public health law, as amended by chapter 38 448 of the laws of 2012, is amended to read as follows: 39 § 1399-dd. Sale of tobacco products, herbal cigarettes, vapor 40 products, or electronic cigarettes in vending machines. No person, firm, 41 partnership, company or corporation shall operate a vending machine 42 which dispenses tobacco products, herbal cigarettes, vapor products, or 43 electronic cigarettes unless such machine is located: (a) in a bar as 44 defined in subdivision one of section thirteen hundred ninety-nine-n of 45 this chapter, or the bar area of a food service establishment with a 46 valid, on-premises full liquor license; (b) in a private club; (c) in a 47 tobacco business as defined in subdivision eight of section thirteen 48 hundred ninety-nine-aa of this article; or (d) in a place of employment 49 which has an insignificant portion of its regular workforce comprised of 50 people under the age of [eighteen] twenty-one years and only in such 51 locations that are not accessible to the general public; provided, 52 however, that in such locations the vending machine is located in plain 53 view and under the direct supervision and control of the person in 54 charge of the location or his or her designated agent or employee. 55 § 8. Section 1399-ee of the public health law, as amended by chapter 56 162 of the laws of 2002, is amended to read as follows:S. 1509--A 93 A. 2009--A 1 § 1399-ee. Hearings; penalties. 1. Hearings with respect to violation 2 of this article shall be conducted in the same manner as hearings 3 conducted under article thirteen-E of this chapter. 4 2. If the enforcement officer determines after a hearing that a 5 violation of this article has occurred, he or she shall impose a civil 6 penalty of a minimum of three hundred dollars, but not to exceed one 7 thousand dollars for a first violation, and a minimum of five hundred 8 dollars, but not to exceed one thousand five hundred dollars for each 9 subsequent violation, unless a different penalty is otherwise provided 10 in this article. The enforcement officer shall advise the [retail] deal- 11 er that upon the accumulation of three or more points pursuant to this 12 section the [department] commissioner of taxation and finance shall 13 suspend the dealer's registration. If the enforcement officer determines 14 after a hearing that a [retail] dealer was selling tobacco products, 15 vapor products, or electronic cigarettes while their registration was 16 suspended or permanently revoked pursuant to subdivision three or four 17 of this section, he or she shall impose a civil penalty of twenty-five 18 hundred dollars. 19 3. (a) Imposition of points. If the enforcement officer determines, 20 after a hearing, that the [retail] dealer violated subdivision [one] two 21 of section thirteen hundred ninety-nine-cc of this article with respect 22 to a prohibited sale to a [minor] person under the age of twenty-one, he 23 or she shall, in addition to imposing any other penalty required or 24 permitted pursuant to this section, assign two points to the [retail] 25 dealer's record where the individual who committed the violation did not 26 hold a certificate of completion from a state certified tobacco sales 27 training program and one point where the [retail] dealer demonstrates 28 that the person who committed the violation held a certificate of 29 completion from a state certified tobacco sales training program. 30 (b) Revocation. If the enforcement officer determines, after a hear- 31 ing, that a [retail] dealer has violated this article four times within 32 a three year time frame he or she shall, in addition to imposing any 33 other penalty required or permitted by this section, direct the commis- 34 sioner of taxation and finance to revoke the dealer's registration for 35 one year. 36 (c) Duration of points. Points assigned to a [retail] dealer's record 37 shall be assessed for a period of thirty-six months beginning on the 38 first day of the month following the assignment of points. 39 (d) Reinspection. Any [retail] dealer who is assigned points pursuant 40 to paragraph (a) of this subdivision shall be reinspected at least two 41 times a year by the enforcement officer until points assessed are 42 removed from the [retail] dealer's record. 43 (e) Suspension. If the department determines that a [retail] dealer 44 has accumulated three points or more, the department shall direct the 45 commissioner of taxation and finance to suspend such dealer's registra- 46 tion for six months. The three points serving as the basis for a suspen- 47 sion shall be erased upon the completion of the six month penalty. 48 (f) Surcharge. A fifty dollar surcharge to be assessed for every 49 violation will be made available to enforcement officers and shall be 50 used solely for compliance checks to be conducted to determine compli- 51 ance with this section. 52 4. (a) If the enforcement officer determines, after a hearing, that a 53 [retail] dealer has violated this article while their registration was 54 suspended pursuant to subdivision three of this section, he or she 55 shall, in addition to imposing any other penalty required or permitted 56 by this section, direct the commissioner of taxation and finance toS. 1509--A 94 A. 2009--A 1 permanently revoke the dealer's registration and not permit the dealer 2 to obtain a new registration. 3 (b) If the enforcement officer determines, after a hearing, that a 4 vending machine operator has violated this article three times within a 5 two year period, or four or more times cumulatively he or she shall, in 6 addition to imposing any other penalty required or permitted by this 7 section, direct the commissioner of taxation and finance to suspend the 8 vendor's registration for one year and not permit the vendor to obtain a 9 new registration for such period. 10 5. The department shall publish a notification of the name and address 11 of any [retailer] dealer violating the provisions of this section and 12 indicate the number of times the dealer has violated the provisions of 13 this section. The notification shall be published in a newspaper of 14 general circulation in the locality in which the [retailer] dealer is 15 located. 16 6. (a) In any proceeding pursuant to subdivision three of this section 17 to assign points to a [retail] dealer's record, the [retail] dealer 18 shall be assigned one point instead of two points where the [retail] 19 dealer demonstrates that the person who committed the violation of 20 section thirteen hundred ninety-nine-cc of this article held a valid 21 certificate of completion from a state certified tobacco sales training 22 program. 23 (b) A state certified tobacco sales training program shall include 24 instruction in the following elements: 25 (1) the health effects of tobacco use, especially at a young age; 26 (2) the legal purchase age and the additional requirements of section 27 thirteen hundred ninety-nine-cc of this article; 28 (3) legal forms of identification and the key features thereof; 29 (4) reliance upon legal forms of identification and the right to 30 refuse sales when acting in good faith; 31 (5) means of identifying fraudulent identification of attempted under- 32 age purchasers; 33 (6) techniques used to refuse a sale; 34 (7) the penalties arising out of unlawful sales to underage individ- 35 uals; and 36 (8) the significant disciplinary action or loss of employment that may 37 be imposed by the [retail] dealer for a violation of the law or a devi- 38 ation from the policies of the [retail] dealer in respect to compliance 39 with such law. 40 (c) A tobacco sales training program may be given and administered by 41 a [retail] dealer duly registered under section four hundred eighty-a of 42 the tax law which operates five or more registered locations, by a trade 43 association whose members are registered as [retail] dealers, by 44 national and regional franchisors who have granted at least five fran- 45 chises in the state to persons who are registered as such [retail] deal- 46 ers by a cooperative corporation with five or more members who are 47 registered as [retail] dealers and are operating in this state, and by a 48 wholesaler supplying fifty or more [retail] dealers. A person or entity 49 administering such training program shall issue certificates of 50 completion to persons successfully completing such a training program. 51 Such certificates shall be prima facie evidence of the completion of 52 such a training program by the person named therein. 53 (d) A certificate of completion may be issued for a period of three 54 years, however such certificate shall be invalidated by a change in 55 employment.S. 1509--A 95 A. 2009--A 1 (e) Entities authorized pursuant to paragraph (c) of this subdivision 2 to give and administer a tobacco sales training program may submit a 3 proposed curriculum, a facsimile of any training aids and materials, and 4 a list of training locations to the department for review. Training aids 5 may include the use of video, computer based instruction, printed mate- 6 rials and other formats deemed acceptable to the department. The depart- 7 ment shall certify programs which provide instruction in the elements 8 set forth in paragraph (b) of this subdivision in a clear and meaningful 9 fashion. Programs approved by the department shall be certified for a 10 period of three years at which time an entity may reapply for certif- 11 ication. A non-refundable fee in the amount of three hundred dollars 12 shall be paid to the department with each application. 13 § 9. Section 1399-hh of the public health law, as added by chapter 433 14 of the laws of 1997, is amended to read as follows: 15 § 1399-hh. Tobacco vapor product and electronic cigarette enforcement. 16 The commissioner shall develop, plan and implement a comprehensive 17 program to reduce the prevalence of tobacco vapor product and electronic 18 cigarette use, particularly among persons less than [eighteen] twenty- 19 one years of age. This program shall include, but not be limited to, 20 support for enforcement of article thirteen-F of this chapter. 21 1. An enforcement officer, as defined in section thirteen hundred 22 ninety-nine-t of this chapter, may annually, on such dates as shall be 23 fixed by the commissioner, submit an application for such monies as are 24 made available for such purpose. Such application shall be in such form 25 as prescribed by the commissioner and shall include, but not be limited 26 to, plans regarding random spot checks, including the number and types 27 of compliance checks that will be conducted, and other activities to 28 determine compliance with this article. Each such plan shall include an 29 agreement to report to the commissioner: the names and addresses of 30 [tobacco retailers and vendors] dealers determined to be unlicensed, if 31 any; the number of complaints filed against licensed [tobacco retail32outlets] dealers; and the names of [tobacco retailers and vendors] deal- 33 ers who have paid fines, or have been otherwise penalized, due to 34 enforcement actions. 35 2. The commissioner shall distribute such monies as are made avail- 36 able for such purpose to enforcement officers and, in so doing, consider 37 the number of retail locations registered to sell tobacco products with- 38 in the jurisdiction of the enforcement officer and the level of proposed 39 activities. 40 3. Monies made available to enforcement officers pursuant to this 41 section shall only be used for local tobacco, herbal cigarette, vapor 42 products and electronic cigarette enforcement activities approved by the 43 commissioner. 44 § 10. Paragraph (b) of subdivision 2 of section 1399-ll of the public 45 health law, as added by chapter 518 of the laws of 2000, is amended to 46 read as follows: 47 (b) Any person operating a tobacco business wherein bidis is sold or 48 offered for sale is prohibited from selling such bidis to individuals 49 under [eighteen] twenty-one years of age, and shall post in a conspicu- 50 ous place a sign upon which there shall be imprinted the following 51 statement, "SALE OF BIDIS TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS 52 OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white 53 card in red letters at least one-half inch in height. 54 § 11. Subdivision 1 and paragraph (b) of subdivision 2 of section 55 1399-mm of the public health law, as added by chapter 549 of the laws of 56 2003, are amended to read as follows:S. 1509--A 96 A. 2009--A 1 1. No person shall knowingly sell or provide gutka to any other person 2 under [eighteen] twenty-one years of age. No other provision of law 3 authorizing the sale of tobacco products, other than subdivision two of 4 this section, shall authorize the sale of gutka. Any person who 5 violates the provisions of this subdivision shall be subject to a civil 6 penalty of not more than five hundred dollars. 7 (b) Any person operating a tobacco business wherein gutka is sold or 8 offered for sale is prohibited from selling such gutka to individuals 9 under [eighteen] twenty-one years of age, and shall post in a conspicu- 10 ous place a sign upon which there shall be imprinted the following 11 statement, "SALE OF GUTKA TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS 12 OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white 13 card in red letters at least one-half inch in height. 14 § 12. The public health law is amended by adding a new section 15 1399-mm-1 to read as follows: 16 § 1399-mm-1. Sale in pharmacies. No tobacco products, herbal ciga- 17 rettes, vapor products, or electronic cigarettes shall be sold in a 18 pharmacy or in a retail establishment that contains a pharmacy operated 19 as a department as defined in paragraph f of subdivision two of section 20 sixty-eight hundred eight of the education law. 21 § 13. The public health law is amended by adding a new section 22 1399-mm-2 to read as follows: 23 § 1399-mm-2. Electronic cigarette and vapor products; characterizing 24 flavors. The commissioner is authorized to promulgate regulations 25 governing the sale and distribution of electronic cigarettes or vapor 26 products. Such regulations may, to the extent deemed necessary for the 27 protection of public health, prohibit or restrict: (i) the selling, 28 offering for sale, possessing with intent to sell or offering for sale, 29 or distributing of refills, cartridges, or other components of electron- 30 ic cigarettes or vapor products that imparts a characterizing flavor; or 31 (ii) the use of trademarks, names or descriptions of characterizing 32 flavors that are clearly intended to appeal to minors. 33 § 14. Paragraph n of subdivision 1 of section 1399-o of the public 34 health law, as amended by chapter 335 of the laws of 2017, is amended to 35 read as follows: 36 n. general hospitals and residential health care facilities as defined 37 in article twenty-eight of this chapter, hospitals and residential 38 facilities licensed by or operated by the office of mental health pursu- 39 ant to the mental hygiene law, and other health care facilities licensed 40 by the state in which persons reside; provided, however, that the 41 provisions of this subdivision shall not prohibit smoking [and vaping] 42 by patients in separate enclosed rooms of residential health care facil- 43 ities, adult care facilities established or certified under title two of 44 article seven of the social services law, [community mental health resi-45dences established under section 41.44 of the mental hygiene law,] or 46 facilities where day treatment programs are provided, which are desig- 47 nated as smoking [and vaping] rooms for patients of such facilities or 48 programs; 49 § 15. Subdivision 2 of section 1399-o of the public health law is 50 amended by adding a new paragraph c to read as follows: 51 c. on the grounds of hospitals licensed by or operated by the office 52 of mental health pursuant to the mental hygiene law. 53 § 16. Section 399-gg of the general business law, as added by chapter 54 542 of the laws of 2014, is amended to read as follows: 55 § 399-gg. Packaging of [electronic liquid] vapor products. 1. No 56 person, firm or corporation shall sell or offer for sale any [electronicS. 1509--A 97 A. 2009--A 1liquid] vapor products, as defined in [paragraph (e) of] subdivision 2 [one] sixteen of section [thirteen hundred ninety-nine-cc] thirteen 3 hundred ninety-nine-aa of the public health law, unless the [electronic4liquid] vapor products is sold or offered for sale in a child resistant 5 bottle which is designed to prevent accidental exposure of children to 6 [electronic liquids] vapor products. 7 2. Any violation of this section shall be punishable by a civil penal- 8 ty not to exceed one thousand dollars. 9 § 17. The tax law is amended by adding a new article 28-C to read as 10 follows: 11 ARTICLE 28-C 12 SUPPLEMENTAL TAX ON VAPOR PRODUCTS 13 Section 1180. Definitions. 14 1181. Imposition of tax. 15 1182. Imposition of compensating use tax. 16 1183. Vapor products dealer registration and renewal. 17 1184. Administrative provisions. 18 1185. Criminal penalties. 19 1186. Deposit and disposition of revenue. 20 § 1180. Definitions. For the purposes of the taxes imposed by this 21 article, the following terms shall mean: 22 (a) "Vapor product" means any noncombustible liquid or gel, regardless 23 of the presence of nicotine therein, that is manufactured in to a 24 finished product for use in an electronic cigarette, electronic cigar, 25 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 26 similar device. "Vapor product" shall not include any product approved 27 by the United States food and drug administration as a drug or medical 28 device, or manufactured and dispensed pursuant to title five-A of arti- 29 cle thirty-three of the public health law. 30 (b) "Vapor products dealer" means a person licensed by the commission- 31 er to sell vapor products in this state. 32 § 1181. Imposition of Tax. In addition to any other tax imposed by 33 this chapter or other law, there is hereby imposed a tax of twenty 34 percent on receipts from the retail sale of vapor products sold in this 35 state. The tax is imposed on the purchaser and collected by the vapor 36 products dealer as defined in subdivision (b) of section eleven hundred 37 eighty of this article, in trust for and on account of the state. 38 § 1182. Imposition of compensating use tax. (a) Except to the extent 39 that vapor products have already been or will be subject to the tax 40 imposed by section eleven hundred eighty-one of this article, or are 41 otherwise exempt under this article, there is hereby imposed a use tax 42 on every use within the state of vapor products: (1) purchased at 43 retail; and (2) manufactured or processed by the user if items of the 44 same kind are sold by him or her in the regular course of his or her 45 business. 46 (b) For purposes of paragraph one of subdivision (a) of this section, 47 the tax shall be at the rate of twenty percent of the consideration 48 given or contracted to be given for such vapor product purchased at 49 retail. For purposes of paragraph two of subdivision (a) of this 50 section, the tax shall be at the rate of twenty percent of the price at 51 which such items of the same kind of vapor product are offered for sale 52 by the user, and the mere storage, keeping, retention or withdrawal from 53 storage of such vapor product by the person that manufactured or proc-S. 1509--A 98 A. 2009--A 1 essed such vapor product shall not be deemed a taxable use by him or 2 her. 3 (c) The tax due pursuant to this section shall be paid and reported no 4 later than twenty days after such use on a form prescribed by the 5 commissioner. 6 § 1183. Vapor products dealer registration and renewal. (a) Every 7 person who intends to sell vapor products in this state must receive 8 from the commissioner a certificate of registration prior to engaging in 9 business. Such person must electronically submit a properly completed 10 application for a certificate of registration for each location at which 11 vapor products will be sold in this state, on a form prescribed by the 12 commissioner, and shall be accompanied by a non-refundable application 13 fee of three hundred dollars. 14 (b) A vapor products dealer certificate of registration shall be 15 valid for the calendar year for which it is issued unless earlier 16 suspended or revoked. Upon the expiration of the term stated on the 17 certificate of registration, such certificate shall be null and void. A 18 certificate of registration shall not be assignable or transferable and 19 shall be destroyed immediately upon the vapor products dealer ceasing to 20 do business as specified in such certificate or in the event that such 21 business never commenced. 22 (c) Every vapor product dealer shall publicly display a vapor products 23 dealer certificate of registration in each place of business in this 24 state where vapor products are sold at retail. A vapor products dealer 25 who has no regular place of business shall publicly display such valid 26 certificate on each of its carts, stands, trucks or other merchandising 27 devices through which it sells vapor products. 28 (d) (1) The commissioner shall refuse to issue a certificate of regis- 29 tration to any applicant who does not possess a valid certificate of 30 authority under section eleven hundred thirty-four of this chapter. In 31 addition, the commissioner may refuse to issue a certificate of regis- 32 tration, or suspend, cancel or revoke a certificate of registration 33 issued to any person who: (A) has a past-due liability as that term is 34 defined in section one hundred seventy-one-v of this chapter; (B) has 35 had a certificate of registration under this article or any license or 36 registration provided for in this chapter revoked within one year from 37 the date on which such application was filed; (C) has been convicted of 38 a crime provided for in this chapter within one year from the date on 39 which such application was filed; (D) willfully fails to file a report 40 or return required by this article; (E) willfully files, causes to be 41 filed, gives or causes to be given a report, return, certificate or 42 affidavit required by this article which is false; (F) willfully fails 43 to collect or truthfully account for or pay over any tax imposed by this 44 article; or (G) whose place of business is at the same premises as that 45 of a person whose vapor products dealer registration has been revoked 46 and where such revocation is still in effect, unless the applicant or 47 vapor products dealer provides the commissioner with adequate documenta- 48 tion demonstrating that such applicant or vapor products dealer acquired 49 the premises or business through an arm's length transaction as defined 50 in paragraph (e) of subdivision one of section four hundred eighty-a of 51 this chapter. 52 (2) In addition to the grounds provided in paragraph one of this 53 subdivision, the commissioner shall refuse to issue a certificate of 54 registration and shall cancel or suspend a certificate of registration 55 as directed by an enforcement officer pursuant to article thirteen-F of 56 the public health law. Notwithstanding any provision of law to theS. 1509--A 99 A. 2009--A 1 contrary, an applicant whose application for a certificate of registra- 2 tion is refused or a vapor products dealer whose registration is 3 cancelled or suspended under this paragraph shall have no right to a 4 hearing under this chapter and shall have no right to commence a court 5 action or proceeding or to any other legal recourse against the commis- 6 sioner with respect to such refusal, suspension or cancellation; 7 provided, however, that nothing herein shall be construed to deny a 8 vapor products dealer a hearing under article thirteen-F of the public 9 health law or to prohibit vapor products dealers from commencing a court 10 action or proceeding against an enforcement officer as defined in 11 section thirteen hundred ninety-nine-aa of the public health law. 12 (e) If a vapor products dealer is suspended, cancelled or revoked and 13 such vapor products dealer sells vapor products through more than one 14 place of business in this state, the vapor products dealer's certificate 15 of registration issued to that place of business, cart, stand, truck or 16 other merchandising device, where such violation occurred, shall be 17 suspended, revoked or cancelled. Provided, however, upon a vapor 18 products dealer's third suspension, cancellation or revocation within a 19 five-year period for any one or more businesses owned or operated by the 20 vapor products dealer, such suspension, cancellation, or revocation of 21 the vapor products dealer's certificate of registration shall apply to 22 all places of business where he or she sells vapor products in this 23 state. 24 (f) Every holder of a certificate of registration must notify the 25 commissioner of changes to any of the information stated on the certif- 26 icate or changes to any information contained in the application for the 27 certificate of registration. Such notification must be made on or before 28 the last day of the month in which a change occurs and must be made 29 electronically on a form prescribed by the commissioner. 30 (g) Every vapor products dealer who holds a certificate of registra- 31 tion under this article shall be required to reapply for a certificate 32 of registration for the following calendar year on or before the twenti- 33 eth day of September and such reapplication shall be subject to the same 34 requirements and conditions, including grounds for refusal, as an 35 initial registration under this article, including but not limited to 36 the payment of the three hundred dollar application fee for each retail 37 location. 38 (h) In addition to any other penalty imposed by this chapter, any 39 vapor products dealer who violates the provisions of this section, (1) 40 for a first violation is liable for a civil fine not less than five 41 thousand dollars but not to exceed twenty-five thousand dollars and such 42 certificate of registration may be suspended for a period of not more 43 than six months; and (2) for a second or subsequent violation within 44 three years following a prior violation of this section, is liable for a 45 civil fine not less than ten thousand dollars but not to exceed thirty- 46 five thousand dollars and such certificate of registration may be 47 suspended for a period of up to thirty-six months; or (3) for a third 48 violation within a period of five years, its vapor products certificate 49 or certificates of registration issued to each place of business owned 50 or operated by the vapor products dealer in this state, shall be revoked 51 for a period of up to five years. 52 § 1184. Administrative provisions. (a) Except as otherwise provided 53 for in this article, the taxes imposed by this article shall be adminis- 54 tered and collected in a like manner as and jointly with the taxes 55 imposed by sections eleven hundred five and eleven hundred ten of this 56 chapter. In addition, except as otherwise provided in this article, allS. 1509--A 100 A. 2009--A 1 of the provisions of article twenty-eight of this chapter (except 2 sections eleven hundred seven, eleven hundred eight, eleven hundred 3 nine, and eleven hundred forty-eight) relating to or applicable to the 4 administration, collection and review of the taxes imposed by such 5 sections eleven hundred five and eleven hundred ten, including, but not 6 limited to, the provisions relating to definitions, returns, exemptions, 7 penalties, tax secrecy, personal liability for the tax, and collection 8 of tax from the customer, shall apply to the taxes imposed by this arti- 9 cle so far as such provisions can be made applicable to the taxes 10 imposed by this article with such limitations as set forth in this arti- 11 cle and such modifications as may be necessary in order to adapt such 12 language to the taxes so imposed. Such provisions shall apply with the 13 same force and effect as if the language of those provisions had been 14 set forth in full in this article except to the extent that any 15 provision is either inconsistent with a provision of this article or is 16 not relevant to the taxes imposed by this article. 17 (b) Notwithstanding the provisions of subdivision (a) of this section, 18 the exemptions provided in paragraph ten of subdivision (a) of section 19 eleven hundred fifteen of this chapter, and the provisions of section 20 eleven hundred sixteen, except those provided in paragraphs one, two, 21 three and six of subdivision (a) of such section, shall not apply to the 22 taxes imposed by this article. 23 (c) Notwithstanding the provisions of this section or section eleven 24 hundred forty-six of this chapter, the commissioner may, in his or her 25 discretion, permit the commissioner of health or his or her authorized 26 representative to inspect any return related to the tax imposed by this 27 article and may furnish to the commissioner of health any such return 28 or supply him or her with information concerning an item contained in 29 any such return, or disclosed by any investigation of a liability under 30 this article. 31 § 1185. Criminal penalties. The criminal penalties in sections eigh- 32 teen hundred one through eighteen hundred seven and eighteen hundred 33 seventeen of this chapter shall apply to this article with the same 34 force and effect as if the language of those provisions had been set 35 forth in full in this article except to the extent that any provision is 36 either inconsistent with a provision of this article or is not relevant 37 to the taxes imposed by this article. 38 § 1186. Deposit and disposition of revenue. The taxes, interest, and 39 penalties imposed by this article and collected or received by the 40 commissioner shall be deposited daily with such responsible banks, bank- 41 ing houses or trust companies, as may be designated by the comptroller, 42 to the credit of the comptroller in trust for the tobacco control and 43 insurance initiatives pool established by section ninety-two-dd of the 44 state finance law and distributed by the commissioner of health in 45 accordance with section twenty-eight hundred seven-v of the public 46 health law. Such deposits will be kept separate and apart from all other 47 money in the possession of the comptroller. The comptroller shall 48 require adequate security from all such depositories. Of the total 49 revenue collected or received under this article, the comptroller shall 50 retain such amount as the commissioner may determine to be necessary for 51 refunds under this article. Provided, however that the commissioner is 52 authorized and directed to deduct from the amounts he or she receives 53 from the registration fees under section eleven hundred eighty-three of 54 this article, before deposit into the tobacco control and insurance 55 initiatives pool, a reasonable amount necessary to effectuate refunds of 56 appropriations of the department to reimburse the department for theS. 1509--A 101 A. 2009--A 1 costs incurred to administer, collect and distribute the taxes imposed 2 by this article. 3 § 18. Subsection (a) of section 92-dd of the state finance law, as 4 amended by section 3 of part T of chapter 61 of the laws of 2011, is 5 amended to read as follows: 6 (a) On and after April first, two thousand five, such fund shall 7 consist of the revenues heretofore and hereafter collected or required 8 to be deposited pursuant to paragraph (a) of subdivision eighteen of 9 section twenty-eight hundred seven-c, and sections twenty-eight hundred 10 seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t 11 of the public health law, subdivision (b) of section four hundred eight- 12 y-two and section eleven hundred eighty-six of the tax law and required 13 to be credited to the tobacco control and insurance initiatives pool, 14 subparagraph (O) of paragraph four of subsection (j) of section four 15 thousand three hundred one of the insurance law, section twenty-seven of 16 part A of chapter one of the laws of two thousand two and all other 17 moneys credited or transferred thereto from any other fund or source 18 pursuant to law. 19 § 19. Severability clause. If any clause, sentence, paragraph, subdi- 20 vision, section or part of this act shall be adjudged by any court of 21 competent jurisdiction to be invalid, such judgment shall not affect, 22 impair, or invalidate the remainder thereof, but shall be confined in 23 its operation to the clause, sentence, paragraph, subdivision, section 24 or part thereof directly involved in the controversy in which such judg- 25 ment shall have been rendered. It is hereby declared to be the intent of 26 the legislature that this act would have been enacted even if such 27 invalid provisions had not been included herein. 28 § 20. This act shall take effect on the one hundred eightieth day 29 after it shall have become a law; provided, however that section seven- 30 teen of this act shall take effect on the first day of a quarterly peri- 31 od described in subdivision (b) of section 1136 of the tax law next 32 commencing at least one hundred eighty days after this act shall become 33 a law, and shall apply to sales and uses of vapor products on or after 34 such date. 35 PART VV 36 Section 1. This act shall be known and may be cited as the "Cannabis 37 Regulation and Taxation Act". 38 § 2. A new chapter 7-A of the consolidated laws is added, to read as 39 follows: 40 CHAPTER 7-A OF THE CONSOLIDATED LAWS 41 CANNABIS LAW 42 ARTICLE 1 43 SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER; 44 DEFINITIONS 45 Section 1. Short title. 46 2. Policy of state and purpose of chapter. 47 3. Definitions. 48 § 1. Short Title. This chapter shall be known and may be cited and 49 referred to as the "cannabis law". 50 § 2. Policy of state and purpose of chapter. It is hereby declared as 51 policy of the state of New York that it is necessary to properly regu-S. 1509--A 102 A. 2009--A 1 late and control the cultivation, processing, manufacture, wholesale, 2 and retail production, distribution, transportation, and sale of canna- 3 bis, cannabis products, medical cannabis, and hemp cannabis within the 4 state of New York, for the purposes of fostering and promoting temper- 5 ance in their consumption, to properly protect the public health, safe- 6 ty, and welfare, and to promote social equality. It is hereby declared 7 that such policy will best be carried out by empowering the state office 8 of cannabis management and its executive director, to determine whether 9 public convenience and advantage will be promoted by the issuance of 10 registrations, licenses and/or permits granting the privilege to 11 produce, distribute, transport, sell, or traffic in cannabis, medical 12 cannabis, or hemp cannabis, to increase or decrease in the number there- 13 of and the location of premises registered, licensed, or permitted 14 thereby, subject only to the right of judicial review hereinafter 15 provided for. It is the purpose of this chapter to carry out that policy 16 in the public interest. The restrictions, regulations, and provisions 17 contained in this chapter are enacted by the legislature for the 18 protection of the health, safety, and welfare of the people of the 19 state. 20 § 3. Definitions. Whenever used in this chapter, unless otherwise 21 expressly stated or unless the context or subject matter requires a 22 different meaning, the following terms shall have the representative 23 meanings hereinafter set forth or indicated: 24 1. "Applicant" means a for-profit entity or not-for-profit corporation 25 and includes: board members, officers, managers, owners, partners, prin- 26 cipal stakeholders and members who submit an application to become a 27 registered organization, licensee or permittee. 28 2. "Bona fide cannabis retailer association" shall mean an association 29 of retailers holding licenses under this chapter, organized under the 30 non-profit or not-for-profit laws of this state. 31 3. "Cannabis" means all parts of the plant of the genus cannabis, 32 whether growing or not; the seeds thereof; the resin extracted from any 33 part of the plant; and every compound, manufacture, salt, derivative, 34 mixture, or preparation of the plant, its seeds or resin. 35 4. "Concentrated cannabis" means: (a) the separated resin, whether 36 crude or purified, obtained from a plant of the genus cannabis; or (b) a 37 material, preparation, mixture, compound or other substance which 38 contains more than three percent by weight of delta-9 tetrahydrocannabi- 39 nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 40 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering 41 system. 42 5. "Cannabis consumer" means a person, twenty-one years of age or 43 older, who purchases cannabis or cannabis products for personal use by 44 persons twenty-one years of age or older, but not for resale to others. 45 6. "Adult-use cannabis processor" means a person licensed by the 46 office to purchase cannabis and concentrated cannabis from cannabis 47 cultivators, to process cannabis, concentrated cannabis, and cannabis 48 infused products, package and label cannabis, concentrated cannabis and 49 cannabis infused products for sale in retail outlets, and sell cannabis, 50 concentrated cannabis and cannabis infused products at wholesale to 51 licensed adult-use cannabis distributors. 52 7. "Cannabis product" or "adult-use cannabis" means cannabis, concen- 53 trated cannabis, and cannabis-infused products for use by a cannabis 54 consumer. 55 8. "Adult-use cannabis retail dispenser" means a person licensed by 56 the executive director to purchase cannabis, concentrated cannabis, andS. 1509--A 103 A. 2009--A 1 cannabis-infused products from cannabis processors and cannabis distrib- 2 utors, and sell cannabis, concentrated cannabis and cannabis-infused 3 products in a retail outlet. 4 9. "Certified medical use" means the acquisition, possession, use, or 5 transportation of medical cannabis by a certified patient, or the acqui- 6 sition, possession, delivery, transportation or administration of 7 medical cannabis by a designated caregiver or designated caregiver 8 facility, for use as part of the treatment of the patient's serious 9 condition, as authorized in a certification under this chapter including 10 enabling the patient to tolerate treatment for the serious condition. 11 10. "Caring for" means treating a patient, in the course of which the 12 practitioner has completed a full assessment of the patient's medical 13 history and current medical condition. 14 11. "Certified patient" means a patient who is a resident of New York 15 state or receiving care and treatment in New York state as determined by 16 the executive director in regulation, and is certified under section 17 thirty of this chapter. 18 12. "Certification" means a certification, made under this chapter. 19 13. "Cultivation" shall include, the planting, growing, cloning, 20 harvesting, drying, curing, grading and trimming of cannabis, or such 21 other cultivation related processes as determined by the executive 22 director in regulation. 23 14. "Executive director" means the executive director of the office of 24 cannabis management. 25 15. "Convicted" and "conviction" include and mean a finding of guilt 26 resulting from a plea of guilty, the decision of a court or magistrate 27 or the verdict of a jury, irrespective of the pronouncement of judgment 28 or the suspension thereof. 29 16. "Designated caregiver" means an individual designated by a certi- 30 fied patient in a registry application. A certified patient may desig- 31 nate up to five designated caregivers. 32 17. "Designated caregiver facility" means a general hospital or resi- 33 dential health care facility operating pursuant to article twenty-eight 34 of the public health law; an adult care facility operating pursuant to 35 title two of article seven of the social services law; a community 36 mental health residence established pursuant to section 41.44 of the 37 mental hygiene Law; a hospital operating pursuant to section 7.17 of the 38 mental hygiene law; a mental hygiene facility operating pursuant to 39 article thirty-one of the mental hygiene law; an inpatient or residen- 40 tial treatment program certified pursuant to article thirty-two of the 41 mental hygiene law; a residential facility for the care and treatment of 42 persons with developmental disabilities operating pursuant to article 43 sixteen of the mental hygiene law; a residential treatment facility for 44 children and youth operating pursuant to article thirty-one of the 45 mental hygiene law; a private or public school; research institution 46 with an internal review board; or any other facility as determined by 47 the executive director in regulation; that registers with the office of 48 cannabis management to assist one or more certified patients with the 49 acquisition, possession, delivery, transportation or administration of 50 medical cannabis. 51 18. "Felony" means any criminal offense classified as a felony under 52 the laws of this state or any criminal offense committed in any other 53 state, district, or territory of the United States and classified as a 54 felony therein which if committed within this state, would constitute a 55 felony in this state.S. 1509--A 104 A. 2009--A 1 19. "Form of medical cannabis" means characteristics of the medical 2 cannabis recommended or limited for a particular certified patient, 3 including the method of consumption and any particular strain, variety, 4 and quantity or percentage of cannabis or particular active ingredient. 5 20. "Government agency" means any office, division, board, bureau, 6 commission, office, agency, authority or public corporation of the state 7 or federal government or a county, city, town or village government 8 within the state. 9 21. "Industrial hemp" means the plant Cannabis sativa L. and any part 10 of such plant, including the seeds thereof and all derivatives, 11 extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 12 whether growing or not, with a delta-9 tetrahydrocannabinol concen- 13 tration of not more than three-tenths of one percent on a dry weight 14 basis, used or intended for an industrial purpose or those food and/or 15 food ingredients that are generally recognized as safe, as further 16 defined and regulated in the agriculture and markets law. 17 22. "Hemp cannabis" means the plant Cannabis sativa L. and any part of 18 such plant, including the seeds thereof and all derivatives, extracts, 19 cannabinoids, isomers, acids, salts, and salts of isomers, whether grow- 20 ing or not, with a delta-9 tetrahydrocannabinol concentration of not 21 more than an amount determined by the office in regulation, used or 22 intended for human or animal consumption or use for its cannabinoid 23 content, as determined by the executive director in regulation. Hemp 24 cannabis excludes industrial hemp used or intended exclusively for an 25 industrial purpose and those food and/or food ingredients that are 26 generally recognized as safe, as governed by the Agriculture and Markets 27 Law, and shall not be regulated as "hemp" or "hemp cannabis" within the 28 meaning of this section. 29 23. "Cannabinoid grower" means a person licensed by the office, and in 30 compliance with article twenty-nine of the agriculture and markets law, 31 to acquire, possess, cultivate, and sell hemp cannabis for its cannabi- 32 noid content. 33 24. "Cannabinoid extractor" means a person licensed by the office to 34 acquire, possess, extract and manufacture hemp cannabis from licensed 35 cannabinoid growers for the manufacture and sale of hemp cannabis 36 products marketed for cannabinoid content and used or intended for human 37 or animal consumption or use. 38 25. "Individual dose" means a single measure of raw cannabis, medical 39 cannabis or non-infused concentrate or medical concentrate. 40 26. "Labor peace agreement" means an agreement between an entity and a 41 labor organization that, at a minimum, protects the state's proprietary 42 interests by prohibiting labor organizations and members from engaging 43 in picketing, work stoppages, boycotts, and any other economic interfer- 44 ence with the registered organization or licensee's business. 45 27. "License" means a license issued pursuant to this chapter. 46 28. "Medical cannabis" means cannabis as defined in subdivision three 47 of this section, intended for a certified medical use, as determined by 48 the executive director in consultation with the commissioner of health. 49 30. "Office" or "office of cannabis management" means the New York 50 state office of cannabis management. 51 31. "Permit" means a permit issued pursuant to this chapter. 52 32. "Permittee" means any person to whom a permit has been issued 53 pursuant to this chapter. 54 33. "Person" means individual, institution, corporation, government or 55 governmental subdivision or agency, business trust, estate, trust, part- 56 nership or association, or any other legal entity.S. 1509--A 105 A. 2009--A 1 34. "Practitioner" means a practitioner who: (i) is authorized to 2 prescribe controlled substances within the state, (ii) by training or 3 experience is qualified to treat a serious condition as defined in 4 subdivision forty-four of this section; and (iii) completes, at a mini- 5 mum, a two-hour course as determined by the executive director in regu- 6 lation; provided however, the executive director may revoke a practi- 7 tioner's ability to certify patients for cause. 8 35. "Processing" includes, blending, extracting, infusing, packaging, 9 labeling, branding and otherwise making or preparing cannabis products, 10 or such other related processes as determined by the executive director 11 in regulation. Processing shall not include the cultivation of cannabis. 12 36. "Public place" means a public place as defined in regulation by 13 the executive director. 14 37. "Registered organization" means an organization registered under 15 article three of this chapter. 16 38. "Registry application" means an application properly completed and 17 filed with the office of cannabis management by a certified patient 18 under article three of this chapter. 19 39. "Registry identification card" means a document that identifies a 20 certified patient or designated caregiver, as provided under section 21 thirty-two of this chapter. 22 40. "Retail sale" or "sale at retail" means a sale to a consumer or to 23 any person for any purpose other than for resale. 24 41. "Retailer" means any person who sells at retail any cannabis prod- 25 uct, the sale of which a license is required under the provisions of 26 this chapter. 27 42. "Sale" means any transfer, exchange or barter in any manner or by 28 any means whatsoever, and includes and means all sales made by any 29 person, whether principal, proprietor, agent, servant or employee of any 30 cannabis product. 31 43. "To sell" includes to solicit or receive an order for, to keep or 32 expose for sale, and to keep with intent to sell and shall include the 33 transportation or delivery of any cannabis product in the state. 34 44. "Serious condition" means having one of the following severe 35 debilitating or life-threatening conditions: cancer, positive status for 36 human immunodeficiency virus or acquired immune deficiency syndrome, 37 amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, 38 damage to the nervous tissue of the spinal cord with objective neurolog- 39 ical indication of intractable spasticity, epilepsy, inflammatory bowel 40 disease, neuropathies, Huntington's disease, post-traumatic stress 41 disorder, pain that degrades health and functional capability where the 42 use of medical cannabis is an alternative to opioid use, substance use 43 disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri- 44 tis, autism, any condition authorized as part of a cannabis research 45 license, or any other condition as added by the executive director. 46 45. "Traffic in" includes to cultivate, process, manufacture, distrib- 47 ute or sell any cannabis, cannabis product, medical cannabis or hemp at 48 wholesale or retail. 49 46. "Terminally ill" means an individual has a medical prognosis that 50 the individual's life expectancy is approximately one year or less if 51 the illness runs its normal course. 52 47. "Wholesale sale" or "sale at wholesale" means a sale to any person 53 for purposes of resale. 54 48. "Distributor" means any person who sells at wholesale any cannabis 55 product, except medical cannabis, for the sale of which a license is 56 required under the provisions of this chapter.S. 1509--A 106 A. 2009--A 1 49. "Warehouse" means and includes a place in which cannabis products 2 are housed or stored. 3 ARTICLE 2 4 NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT 5 Section 9. Establishment of an office of cannabis management. 6 10. Executive director. 7 11. Executive director's authority. 8 12. Rulemaking authority. 9 13. State cannabis advisory board. 10 14. Disposition of moneys received for license fees. 11 15. Legal presumptions. 12 16. Violations of cannabis laws or regulations; penalties and 13 injunctions. 14 17. Formal hearings; notice and procedure. 15 18. Ethics, transparency and accountability. 16 19. Public health management campaign. 17 § 9. Establishment of an office of cannabis management. Pursuant to a 18 chapter of the laws of two thousand nineteen which added this chapter, 19 there is hereby established, within the division of alcoholic beverage 20 control, an independent office of cannabis management, which shall have 21 exclusive jurisdiction to exercise the powers and duties provided by 22 this chapter. The office shall exercise its authority by and through an 23 executive director. 24 § 10. Executive director. The executive director of the state office 25 of cannabis management shall receive an annual salary not to exceed an 26 amount appropriated therefor by the legislature and his or her expenses 27 actually and necessarily incurred in the performance of his official 28 duties, unless otherwise provided by the legislature. 29 § 11. Functions, powers and duties of the office and executive direc- 30 tor. The office of cannabis management, by and through its executive 31 director, shall have the following powers and duties: 32 1. To issue or refuse to issue any registration, license or permit 33 provided for in this chapter. 34 2. To limit, or not to limit, in the executive director's discretion, 35 the number of registrations, licenses and permits of each class to be 36 issued within the state or any political subdivision thereof, and in 37 connection therewith to prohibit the acceptance of applications for such 38 classes which have been so limited. 39 3. To revoke, cancel or suspend for cause any registration, license, 40 or permit issued under this chapter and/or to impose a civil penalty for 41 cause against any holder of a registration, license, or permit issued 42 pursuant to this chapter. Any civil penalty so imposed shall be in addi- 43 tion to and separate and apart from the terms and provisions of the bond 44 required pursuant to section thirty-six of this chapter. 45 4. To fix by rule the standards of cultivation and processing of 46 medical cannabis, adult use cannabis and hemp cannabis, including but 47 not limited to, the ability to regulate potency and the types of 48 products which may be manufactured and/or processed, in order to ensure 49 the health and safety of the public and the use of proper ingredients 50 and methods in the manufacture of all cannabis and hemp cannabis to be 51 sold or consumed in the state. 52 5. To hold hearings, subpoena witnesses, compel their attendance, 53 administer oaths, to examine any person under oath and in connection 54 therewith to require the production of any books or records relative toS. 1509--A 107 A. 2009--A 1 the inquiry. A subpoena issued under this section shall be regulated by 2 the civil practice law and rules. 3 6. To limit or prohibit, at any time of public emergency and without 4 previous notice or advertisement, the cultivation, processing, distrib- 5 ution or sale of any or all cannabis products, medical cannabis or hemp 6 cannabis, for and during the period of such emergency. 7 7. To appoint any necessary directors, deputies, counsels, assistants, 8 investigators, and other employees within the limits provided by appro- 9 priation. Investigators so employed by the office shall be deemed to be 10 peace officers for the purpose of enforcing the provisions of the canna- 11 bis control law or judgements or orders obtained for violation thereof, 12 with all the powers set forth in section 2.20 of the criminal procedure 13 law. 14 8. To remove any employee of the office for cause, after giving such 15 employee a copy of the charges against him or her in writing, and an 16 opportunity to be heard thereon. Any action taken under this subdivision 17 shall be subject to and in accordance with the civil service law. 18 9. To inspect or provide for the inspection at any time of any prem- 19 ises where cannabis or hemp cannabis is cultivated, processed, stored, 20 distributed or sold. 21 10. To prescribe forms of applications for registrations, licenses and 22 permits under this chapter and of all reports deemed necessary by the 23 office. 24 11. To delegate the powers provided in this section to such other 25 officers or employees or other state agencies as may be deemed appropri- 26 ate by the executive director. 27 12. To appoint such advisory groups and committees as the executive 28 director deems necessary to provide assistance to the office to carry 29 out the purposes and objectives of this chapter. 30 13. To exercise the powers and perform the duties in relation to the 31 administration of the office as are necessary but not specifically vest- 32 ed by this chapter, including but not limited to budgetary and fiscal 33 matters. 34 14. To develop and establish minimum criteria for certifying employees 35 to work in the cannabis industry, including the establishment of a 36 cannabis workers certification program. 37 15. To enter into contracts, memoranda of understanding, and agree- 38 ments as deemed appropriate by the executive director to effectuate the 39 policy and purpose of this chapter. 40 16. To issue and administer low interest or zero-interest loans to 41 qualified social equity applicants provided the office has sufficient 42 funds available for such purposes. 43 17. If the executive director finds that public health, safety, or 44 welfare imperatively requires emergency action, and incorporates a find- 45 ing to that effect in an order, summary suspension of a license may be 46 ordered, effective on the date specified in such order or upon service 47 of a certified copy of such order on the licensee, whichever shall be 48 later, pending proceedings for revocation or other action. These 49 proceedings shall be promptly instituted and determined. In addition, 50 the executive director may order the administrative seizure of product, 51 issue a stop order, or take any other action necessary to effectuate and 52 enforce the policy and purpose of this chapter. 53 18. To issue regulations, declaratory rulings, guidance and industry 54 advisories. 55 § 12. Rulemaking authority. 1. The office shall perform such acts, 56 prescribe such forms and propose such rules, regulations and orders asS. 1509--A 108 A. 2009--A 1 it may deem necessary or proper to fully effectuate the provisions of 2 this chapter. 3 2. The office shall have the power to promulgate any and all necessary 4 rules and regulations governing the production, processing, transporta- 5 tion, distribution, and sale of medical cannabis, recreational cannabis, 6 and hemp cannabis, including but not limited to the registration of 7 organizations authorized to traffic in medical cannabis, the licensing 8 and/or permitting of adult-use cannabis cultivators, processors, cooper- 9 atives, distributors, and retail dispensaries, and the licensing of 10 cannabinoid growers and extractors, including, but not limited to: 11 (a) prescribing forms and establishing application, reinstatement, and 12 renewal fees; 13 (b) the qualifications and selection criteria for registration, 14 licensing, or permitting; 15 (c) the books and records to be created and maintained by registered 16 organizations, licensees, and permittees, including the reports to be 17 made thereon to the office, and inspection of any and all books and 18 records maintained by any registered organization, licensee, or permitee 19 and on the premise of any registered organization, licensee, or permit- 20 tee; 21 (d) methods of producing, processing, and packaging cannabis, medical 22 cannabis, cannabis-infused products, concentrated cannabis, and hemp 23 cannabis; conditions of sanitation, and standards of ingredients, quali- 24 ty, and identity of cannabis products cultivated, processed, packaged, 25 or sold by registered organizations and licensees; 26 (e) security requirements for adult-use cannabis retail dispensaries 27 and premises where cannabis products, medical cannabis, and hemp canna- 28 bis, are cultivated, produced, processed, or stored, and safety proto- 29 cols for registered organizations, licensees and their employees; and 30 (f) hearing procedures and additional causes for cancellation, revoca- 31 tion, and/or civil penalties against any person registered, licensed, or 32 permitted by the authority. 33 3. The office shall promulgate rules and regulations that are calcu- 34 lated to: 35 (a) prevent the distribution of adult-use cannabis to persons under 36 twenty-one years of age; 37 (b) prevent the revenue from the sale of cannabis from going to crimi- 38 nal enterprises, gangs, and cartels; 39 (c) prevent the diversion of cannabis from this state to other states; 40 (d) prevent cannabis activity that is legal under state law from being 41 used as a cover or pretext for the trafficking of other illegal drugs or 42 other illegal activity; 43 (e) prevent violence and the use of firearms in the cultivation and 44 distribution of cannabis; 45 (f) prevent drugged driving and the exacerbation of other adverse 46 public health consequences associated with the use of cannabis; 47 (g) prevent the growing of cannabis on public lands and the attendant 48 public safety and environmental dangers posed by cannabis production on 49 public lands; and 50 (h) prevent the possession and use of cannabis on federal property. 51 4. The office, in consultation with the department of agriculture and 52 markets and the department of environmental conservation, shall promul- 53 gate necessary rules and regulations governing the safe production of 54 cannabis, including environmental and energy standards and restrictions 55 on the use of pesticides.S. 1509--A 109 A. 2009--A 1 § 13. State cannabis advisory board. 1. The executive director shall 2 have the authority to establish within the office a state cannabis advi- 3 sory board, which may advise the office on cannabis cultivation, proc- 4 essing, distribution, transport, testing and sale and consider all 5 matters submitted to it by the executive director. 6 2. The executive director of the office shall serve as the chairperson 7 of the board. The vice chairperson shall be elected from among the 8 members of the board by the members of such board, and shall represent 9 the board in the absence of the chairperson at all official board func- 10 tions. 11 3. The members of the board shall receive no compensation for their 12 services but shall be allowed their actual and necessary expenses 13 incurred in the performance of their duties as board members. 14 4. The executive director shall be authorized to promulgate regu- 15 lations establishing the number of members on the board, the term of the 16 board members and any other terms or conditions regarding the state 17 cannabis advisory board. 18 § 14. Disposition of moneys received for license fees. The office 19 shall establish a scale of application, licensing, and renewal fees, 20 based upon the cost of enforcing this chapter and the size of the canna- 21 bis business being licensed, as follows: 22 1. The office shall charge each registered organization, licensee and 23 permittee a registration, licensure or permit fee, and renewal fee, as 24 applicable. The fees may vary depending upon the nature and scope of 25 the different registration, licensure and permit activities. 26 2. The total fees assessed pursuant to this chapter shall be set at an 27 amount that will generate sufficient total revenue to, at a minimum, 28 fully cover the total costs of administering this chapter. 29 3. All registration and licensure fees shall be set on a scaled basis 30 by the office, dependent on the size of the business. 31 4. The office shall deposit all fees collected in the New York state 32 cannabis revenue fund established pursuant to section ninety-nine-ff of 33 the state finance law. 34 § 15. Legal presumptions. The action, proceedings, authority, and 35 orders of the office in enforcing the provisions of the cannabis law and 36 applying them to specific cases shall at all times be regarded as in 37 their nature judicial, and shall be treated as prima facie just and 38 legal. 39 § 16. Violations of cannabis laws or regulations; penalties and 40 injunctions. 1. A person who willfully violates any provision of this 41 chapter, or any regulation lawfully made or established by any public 42 officer under authority of this chapter, the punishment for violating 43 which is not otherwise prescribed by this chapter or any other law, is 44 punishable by imprisonment not exceeding one year, or by a fine not 45 exceeding five thousand dollars or by both. 46 2. Any person who violates, disobeys or disregards any term or 47 provision of this chapter or of any lawful notice, order or regulation 48 pursuant thereto for which a civil penalty is not otherwise expressly 49 prescribed by law, shall be liable to the people of the state for a 50 civil penalty of not to exceed five thousand dollars for every such 51 violation. 52 3. The penalty provided for in subdivision one of this section may be 53 recovered by an action brought by the executive director in any court of 54 competent jurisdiction.S. 1509--A 110 A. 2009--A 1 4. Nothing in this section shall be construed to alter or repeal any 2 existing provision of law declaring such violations to be misdemeanors 3 or felonies or prescribing the penalty therefor. 4 5. Such civil penalty may be released or compromised by the executive 5 director before the matter has been referred to the attorney general, 6 and where such matter has been referred to the attorney general, any 7 such penalty may be released or compromised and any action commenced to 8 recover the same may be settled and discontinued by the attorney general 9 with the consent of the executive director. 10 6. It shall be the duty of the attorney general upon the request of 11 the executive director to bring an action for an injunction against any 12 person who violates, disobeys or disregards any term or provision of 13 this chapter or of any lawful notice, order or regulation pursuant ther- 14 eto; provided, however, that the executive director shall furnish the 15 attorney general with such material, evidentiary matter or proof as may 16 be requested by the attorney general for the prosecution of such an 17 action. 18 7. It is the purpose of this section to provide additional and cumula- 19 tive remedies, and nothing herein contained shall abridge or alter 20 rights of action or remedies now or hereafter existing, nor shall any 21 provision of this section, nor any action done by virtue of this 22 section, be construed as estopping the state, persons or municipalities 23 in the exercising of their respective rights. 24 § 17. Formal hearings; notice and procedure. 1. The executive direc- 25 tor, or any person designated by him or her for this purpose, may issue 26 subpoenas and administer oaths in connection with any hearing or inves- 27 tigation under or pursuant to this chapter, and it shall be the duty of 28 the executive director and any persons designated by him or her for such 29 purpose to issue subpoenas at the request of and upon behalf of the 30 respondent. 31 2. The executive director and those designated by him or her shall not 32 be bound by the laws of evidence in the conduct of hearing proceedings, 33 but the determination shall be founded upon sufficient evidence to 34 sustain it. 35 3. Notice of hearing shall be served at least fifteen days prior to 36 the date of the hearing, provided that, whenever because of danger to 37 the public health, safety or welfare it appears prejudicial to the 38 interests of the people of the state to delay action for fifteen days, 39 the executive director may serve the respondent with an order requiring 40 certain action or the cessation of certain activities immediately or 41 within a specified period of less than fifteen days. 42 4. Service of notice of hearing or order shall be made by personal 43 service or by registered or certified mail. Where service, whether by 44 personal service or by registered or certified mail, is made upon an 45 incompetent, partnership, or corporation, it shall be made upon the 46 person or persons designated to receive personal service by article 47 three of the civil practice law and rules. 48 5. At a hearing, the respondent may appear personally, shall have the 49 right of counsel, and may cross-examine witnesses against him or her and 50 produce evidence and witnesses in his or her behalf. 51 6. Following a hearing, the executive director may make appropriate 52 determinations and issue a final order in accordance therewith. 53 7. The executive director may adopt, amend and repeal administrative 54 rules and regulations governing the procedures to be followed with 55 respect to hearings, such rules to be consistent with the policy andS. 1509--A 111 A. 2009--A 1 purpose of this chapter and the effective and fair enforcement of its 2 provisions. 3 8. The provisions of this section shall be applicable to all hearings 4 held pursuant to this chapter, except where other provisions of this 5 chapter applicable thereto are inconsistent therewith, in which event 6 such other provisions shall apply. 7 § 18. Ethics, transparency and accountability. No member of the 8 office or any officer, deputy, assistant, inspector or employee thereof 9 shall have any interest, direct or indirect, either proprietary or by 10 means of any loan, mortgage or lien, or in any other manner, in or on 11 any premises where cannabis, medical cannabis or hemp is cultivated, 12 processed, distributed or sold; nor shall he or she have any interest, 13 direct or indirect, in any business wholly or partially devoted to the 14 cultivation, processing, distribution, sale, transportation or storage 15 of cannabis, medical cannabis or hemp, or own any stock in any corpo- 16 ration which has any interest, proprietary or otherwise, direct or indi- 17 rect, in any premises where cannabis, medical cannabis or hemp is culti- 18 vated, processed, distributed or sold, or in any business wholly or 19 partially devoted to the cultivation, processing, distribution, sale, 20 transportation or storage of cannabis, medical cannabis or hemp, or 21 receive any commission or profit whatsoever, direct or indirect, from 22 any person applying for or receiving any license or permit provided for 23 in this chapter, or hold any other elected or appointed public office in 24 the state or in any political subdivision. Anyone who violates any of 25 the provisions of this section shall be removed or shall divulge him or 26 herself of such direct or indirect interests. 27 § 19. Public health campaign. The office, in consultation with the 28 commissioners of the department of health, office of alcoholism and 29 substance abuse services and office of mental health, shall develop and 30 implement a comprehensive public health campaign regarding adult-use 31 cannabis. 32 ARTICLE 3 33 MEDICAL CANNABIS 34 Section 30. Certification of patients. 35 31. Lawful medical use. 36 32. Registry identification cards. 37 33. Registration as a designated caregiver facility. 38 34. Registered organizations. 39 35. Registering of registered organizations. 40 36. Expedited registration of registered organizations. 41 37. Reports of registered organizations. 42 38. Evaluation; research programs; report by office. 43 39. Cannabis research license. 44 40. Registered organizations and adult-use cannabis. 45 41. Home cultivation of medical cannabis. 46 42. Relation to other laws. 47 43. Protections for the medical use of cannabis. 48 44. Regulations. 49 45. Suspend; terminate. 50 46. Pricing. 51 47. Severability. 52 § 30. Certification of patients. 1. A patient certification may only 53 be issued if:S. 1509--A 112 A. 2009--A 1 (a) the patient has a serious condition, which shall be specified in 2 the patient's health care record; 3 (b) the practitioner by training or experience is qualified to treat 4 the serious condition; 5 (c) the patient is under the practitioner's continuing care for the 6 serious condition; and 7 (d) in the practitioner's professional opinion and review of past 8 treatments, the patient is likely to receive therapeutic or palliative 9 benefit from the primary or adjunctive treatment with medical use of 10 cannabis for the serious condition. 11 2. The certification shall include: (a) the name, date of birth and 12 address of the patient; (b) a statement that the patient has a serious 13 condition and the patient is under the practitioner's care for the seri- 14 ous condition; (c) a statement attesting that all requirements of subdi- 15 vision one of this section have been satisfied; (d) the date; and (e) 16 the name, address, telephone number, and the signature of the certifying 17 practitioner. The executive director may require by regulation that the 18 certification shall be on a form provided by the office. The practition- 19 er may state in the certification that, in the practitioner's profes- 20 sional opinion, the patient would benefit from medical cannabis only 21 until a specified date. The practitioner may state in the certification 22 that, in the practitioner's professional opinion, the patient is termi- 23 nally ill and that the certification shall not expire until the patient 24 dies. 25 3. In making a certification, the practitioner may consider the form 26 of medical cannabis the patient should consume, including the method of 27 consumption and any particular strain, variety, and quantity or percent- 28 age of cannabis or particular active ingredient, and appropriate dosage. 29 The practitioner may state in the certification any recommendation or 30 limitation the practitioner makes, in his or her professional opinion, 31 concerning the appropriate form or forms of medical cannabis and dosage. 32 4. Every practitioner shall consult the prescription monitoring 33 program registry prior to making or issuing a certification, for the 34 purpose of reviewing a patient's controlled substance history. For 35 purposes of this section, a practitioner may authorize a designee to 36 consult the prescription monitoring program registry on his or her 37 behalf, provided that such designation is in accordance with section 38 thirty-three hundred forty-three-a of the public health law. 39 5. The practitioner shall give the certification to the certified 40 patient, and place a copy in the patient's health care record. 41 6. No practitioner shall issue a certification under this section for 42 himself or herself. 43 7. A registry identification card based on a certification shall 44 expire one year after the date the certification is signed by the prac- 45 titioner. 46 8. (a) If the practitioner states in the certification that, in the 47 practitioner's professional opinion, the patient would benefit from 48 medical cannabis only until a specified earlier date, then the registry 49 identification card shall expire on that date; (b) if the practitioner 50 states in the certification that in the practitioner's professional 51 opinion the patient is terminally ill and that the certification shall 52 not expire until the patient dies, then the registry identification card 53 shall state that the patient is terminally ill and that the registration 54 card shall not expire until the patient dies; (c) if the practitioner 55 re-issues the certification to terminate the certification on an earlier 56 date, then the registry identification card shall expire on that dateS. 1509--A 113 A. 2009--A 1 and shall be promptly destroyed by the certified patient; (d) if the 2 certification so provides, the registry identification card shall state 3 any recommendation or limitation by the practitioner as to the form or 4 forms of medical cannabis or dosage for the certified patient; and (e) 5 the executive director shall make regulations to implement this subdivi- 6 sion. 7 § 31. Lawful medical use. The possession, acquisition, use, delivery, 8 transfer, transportation, or administration of medical cannabis by a 9 certified patient, designated caregiver or designated caregiver facili- 10 ty, for certified medical use, shall be lawful under this article 11 provided that: 12 (a) the cannabis that may be possessed by a certified patient shall 13 not exceed a sixty-day supply of the dosage as determined by the practi- 14 tioner, consistent with any guidance and regulations issued by the exec- 15 utive director, provided that during the last seven days of any sixty- 16 day period, the certified patient may also possess up to such amount for 17 the next sixty-day period; 18 (b) the cannabis that may be possessed by designated caregivers does 19 not exceed the quantities referred to in paragraph (a) of this subdivi- 20 sion for each certified patient for whom the caregiver possesses a valid 21 registry identification card, up to five certified patients; 22 (c) the cannabis that may be possessed by designated caregiver facili- 23 ties does not exceed the quantities referred to in paragraph (a) of this 24 subdivision for each certified patient under the care or treatment of 25 the facility; 26 (d) the form or forms of medical cannabis that may be possessed by the 27 certified patient, designated caregiver or designated caregiver facility 28 pursuant to a certification shall be in compliance with any recommenda- 29 tion or limitation by the practitioner as to the form or forms of 30 medical cannabis or dosage for the certified patient in the certif- 31 ication; and 32 (e) the medical cannabis shall be kept in the original package in 33 which it was dispensed under this article, except for the portion 34 removed for immediate consumption for certified medical use by the 35 certified patient. 36 § 32. Registry identification cards. 1. Upon approval of the certif- 37 ication, the office shall issue registry identification cards for certi- 38 fied patients and designated caregivers. A registry identification card 39 shall expire as provided in this article or as otherwise provided in 40 this section. The office shall begin issuing registry identification 41 cards as soon as practicable after the certifications required by this 42 chapter are granted. The office may specify a form for a registry appli- 43 cation, in which case the office shall provide the form on request, 44 reproductions of the form may be used, and the form shall be available 45 for downloading from the office's website. 46 2. To obtain, amend or renew a registry identification card, a certi- 47 fied patient or designated caregiver shall file a registry application 48 with the office, unless otherwise exempted by the executive director in 49 regulation. The registry application or renewal application shall 50 include: 51 (a) in the case of a certified patient: 52 (i) the patient's certification, a new written certification shall be 53 provided with a renewal application; 54 (ii) the name, address, and date of birth of the patient; 55 (iii) the date of the certification;S. 1509--A 114 A. 2009--A 1 (iv) if the patient has a registry identification card based on a 2 current valid certification, the registry identification number and 3 expiration date of that registry identification card; 4 (v) the specified date until which the patient would benefit from 5 medical cannabis, if the certification states such a date; 6 (vi) the name, address, and telephone number of the certifying practi- 7 tioner; 8 (vii) any recommendation or limitation by the practitioner as to the 9 form or forms of medical cannabis or dosage for the certified patient; 10 (viii) if the certified patient designates a designated caregiver, the 11 name, address, and date of birth of the designated caregiver, and other 12 individual identifying information required by the office; and 13 (ix) other individual identifying information required by the office; 14 (b) in the case of a designated caregiver: 15 (i) the name, address, and date of birth of the designated caregiver; 16 (ii) if the designated caregiver has a registry identification card, 17 the registry identification number and expiration date of that registry 18 identification card; and 19 (iii) other individual identifying information required by the office; 20 (c) a statement that a false statement made in the application is 21 punishable under section 210.45 of the penal law; 22 (d) the date of the application and the signature of the certified 23 patient or designated caregiver, as the case may be; 24 (e) any other requirements determined by the executive director. 25 3. Where a certified patient is under the age of eighteen or otherwise 26 incapable of consent: 27 (a) The application for a registry identification card shall be made 28 by an appropriate person over eighteen years of age. The application 29 shall state facts demonstrating that the person is appropriate. 30 (b) The designated caregiver shall be: (i) a parent or legal guardian 31 of the certified patient; (ii) a person designated by a parent or legal 32 guardian; (iii) a designated caregiver facility; or (iv) an appropriate 33 person approved by the office upon a sufficient showing that no parent 34 or legal guardian is appropriate or available. 35 4. No person may be a designated caregiver if the person is under 36 twenty-one years of age unless a sufficient showing is made to the 37 office that the person should be permitted to serve as a designated 38 caregiver. The requirements for such a showing shall be determined by 39 the executive director. 40 5. No person may be a designated caregiver for more than five certi- 41 fied patients at one time. 42 6. If a certified patient wishes to change or terminate his or her 43 designated caregiver, for whatever reason, the certified patient shall 44 notify the office as soon as practicable. The office shall issue a 45 notification to the designated caregiver that their registration card is 46 invalid and must be promptly destroyed. The newly designated caregiver 47 must comply with all requirements set forth in this section. 48 7. If the certification so provides, the registry identification card 49 shall contain any recommendation or limitation by the practitioner as to 50 the form or forms of medical cannabis or dosage for the certified 51 patient. 52 8. The office shall issue separate registry identification cards for 53 certified patients and designated caregivers as soon as reasonably prac- 54 ticable after receiving a complete application under this section, 55 unless it determines that the application is incomplete or factually 56 inaccurate, in which case it shall promptly notify the applicant.S. 1509--A 115 A. 2009--A 1 9. If the application of a certified patient designates an individual 2 as a designated caregiver who is not authorized to be a designated care- 3 giver, that portion of the application shall be denied by the office but 4 that shall not affect the approval of the balance of the application. 5 10. A registry identification card shall: 6 (a) contain the name of the certified patient or the designated care- 7 giver as the case may be; 8 (b) contain the date of issuance and expiration date of the registry 9 identification card; 10 (c) contain a registry identification number for the certified patient 11 or designated caregiver, as the case may be and a registry identifica- 12 tion number; 13 (d) contain a photograph of the individual to whom the registry iden- 14 tification card is being issued, which shall be obtained by the office 15 in a manner specified by the executive director in regulations; 16 provided, however, that if the office requires certified patients to 17 submit photographs for this purpose, there shall be a reasonable accom- 18 modation of certified patients who are confined to their homes due to 19 their medical conditions and may therefore have difficulty procuring 20 photographs; 21 (e) be a secure document as determined by the office; 22 (f) plainly state any recommendation or limitation by the practitioner 23 as to the form or forms of medical cannabis or dosage for the certified 24 patient; and 25 (g) any other requirements determined by the executive director. 26 11. A certified patient or designated caregiver who has been issued a 27 registry identification card shall notify the office of any change in 28 his or her name or address or, with respect to the patient, if he or she 29 ceases to have the serious condition noted on the certification within 30 ten days of such change. The certified patient's or designated 31 caregiver's registry identification card shall be deemed invalid and 32 shall be promptly destroyed. 33 12. If a certified patient or designated caregiver loses his or her 34 registry identification card, he or she shall notify the office within 35 ten days of losing the card. The office shall issue a new registry iden- 36 tification card as soon as practicable, which may contain a new registry 37 identification number, to the certified patient or designated caregiver, 38 as the case may be. 39 13. The office shall maintain a confidential list of the persons to 40 whom it has issued registry identification cards. Individual identifying 41 information obtained by the office under this article shall be confiden- 42 tial and exempt from disclosure under article six of the public officers 43 law. Notwithstanding this subdivision, the office may notify any appro- 44 priate law enforcement agency of information relating to any violation 45 or suspected violation of this article. 46 14. The office shall verify to law enforcement personnel in an appro- 47 priate case whether a registry identification card is valid. 48 15. If a certified patient or designated caregiver willfully violates 49 any provision of this article as determined by the executive director, 50 his or her certification and registry identification card may be 51 suspended or revoked. This is in addition to any other penalty that may 52 apply. 53 § 33. Registration as a designated caregiver facility. 1. To obtain, 54 amend or renew a registration as a designated caregiver facility, the 55 facility shall file a registry application with the office. The registry 56 application or renewal application shall include:S. 1509--A 116 A. 2009--A 1 (a) the facility's full name and address; 2 (b) operating certificate or license number where appropriate; 3 (c) printed name, title, and signature of an authorized facility 4 representative; 5 (d) a statement that the facility agrees to secure and ensure proper 6 handling of all medical cannabis products; 7 (e) an acknowledgement that a false statement in the application is 8 punishable under section 210.45 of the penal law; and 9 (f) any other information that may be required by the executive direc- 10 tor. 11 2. Prior to issuing or renewing a designated caregiver facility regis- 12 tration, the office may verify the information submitted by the appli- 13 cant. The applicant shall provide, at the office's request, such infor- 14 mation and documentation, including any consents or authorizations that 15 may be necessary for the office to verify the information. 16 3. The office shall approve, deny or determine incomplete or inaccu- 17 rate an initial or renewal application within thirty days of receipt of 18 the application. If the application is approved within the 30-day peri- 19 od, the office shall issue a registration as soon as is reasonably prac- 20 ticable. 21 4. An applicant shall have thirty days from the date of a notification 22 of an incomplete or factually inaccurate application to submit the mate- 23 rials required to complete, revise or substantiate information in the 24 application. If the applicant fails to submit the required materials 25 within such thirty-day time period, the application shall be denied by 26 the office. 27 5. Registrations issued under this section shall remain valid for two 28 years from the date of issuance. 29 § 34. Registered organizations. 1. A registered organization shall be 30 a for-profit business entity or not-for-profit corporation organized for 31 the purpose of acquiring, possessing, manufacturing, selling, deliver- 32 ing, transporting, distributing or dispensing cannabis for certified 33 medical use. 34 2. The acquiring, possession, manufacture, sale, delivery, transport- 35 ing, distributing or dispensing of medical cannabis by a registered 36 organization under this article in accordance with its registration 37 under this article or a renewal thereof shall be lawful under this chap- 38 ter. 39 3. Each registered organization shall contract with an independent 40 laboratory permitted by the office to test the medical cannabis produced 41 by the registered organization. The executive director shall approve the 42 laboratory used by the registered organization and may require that the 43 registered organization use a particular testing laboratory. 44 4. (a) A registered organization may lawfully, in good faith, sell, 45 deliver, distribute or dispense medical cannabis to a certified patient 46 or designated caregiver upon presentation to the registered organization 47 of a valid registry identification card for that certified patient or 48 designated caregiver. When presented with the registry identification 49 card, the registered organization shall provide to the certified patient 50 or designated caregiver a receipt, which shall state: the name, address, 51 and registry identification number of the registered organization; the 52 name and registry identification number of the certified patient and the 53 designated caregiver, if any; the date the cannabis was sold; any recom- 54 mendation or limitation by the practitioner as to the form or forms of 55 medical cannabis or dosage for the certified patient; and the form and 56 the quantity of medical cannabis sold. The registered organization shallS. 1509--A 117 A. 2009--A 1 retain a copy of the registry identification card and the receipt for 2 six years. 3 (b) The proprietor of a registered organization shall file or cause to 4 be filed any receipt and certification information with the office by 5 electronic means on a real-time basis as the executive director shall 6 require by regulation. When filing receipt and certification information 7 electronically pursuant to this paragraph, the proprietor of the regis- 8 tered organization shall dispose of any electronically recorded 9 prescription information in such manner as the executive director shall 10 by regulation require. 11 5. (a) No registered organization may sell, deliver, distribute or 12 dispense to any certified patient or designated caregiver a quantity of 13 medical cannabis larger than that individual would be allowed to possess 14 under this chapter. 15 (b) When dispensing medical cannabis to a certified patient or desig- 16 nated caregiver, the registered organization: (i) shall not dispense an 17 amount greater than a sixty-day supply to a certified patient until the 18 certified patient has exhausted all but a seven day supply provided 19 pursuant to a previously issued certification; and (ii) shall verify the 20 information in subparagraph (i) of this paragraph by consulting the 21 prescription monitoring program registry under this article. 22 (c) Medical cannabis dispensed to a certified patient or designated 23 caregiver by a registered organization shall conform to any recommenda- 24 tion or limitation by the practitioner as to the form or forms of 25 medical cannabis or dosage for the certified patient. 26 6. When a registered organization sells, delivers, distributes or 27 dispenses medical cannabis to a certified patient or designated caregiv- 28 er, it shall provide to that individual a safety insert, which will be 29 developed by the registered organization and approved by the executive 30 director and include, but not be limited to, information on: 31 (a) methods for administering medical cannabis in individual doses, 32 (b) any potential dangers stemming from the use of medical cannabis, 33 (c) how to recognize what may be problematic usage of medical cannabis 34 and obtain appropriate services or treatment for problematic usage, and 35 (d) other information as determined by the executive director. 36 7. Registered organizations shall not be managed by or employ anyone 37 who has been convicted of any felony other than for the sale or 38 possession of drugs, narcotics, or controlled substances, and provided 39 that this subdivision only applies to (a) managers or employees who come 40 into contact with or handle medical cannabis, and (b) a conviction less 41 than ten years, not counting time spent in incarceration, prior to being 42 employed, for which the person has not received a certificate of relief 43 from disabilities or a certificate of good conduct under article twen- 44 ty-three of the correction law. 45 8. Manufacturing of medical cannabis by a registered organization 46 shall only be done in an indoor, enclosed, secure facility located in 47 New York state, which may include a greenhouse. The executive director 48 shall promulgate regulations establishing requirements for such facili- 49 ties. 50 9. Dispensing of medical cannabis by a registered organization shall 51 only be done in an indoor, enclosed, secure facility located in New York 52 state, which may include a greenhouse. The executive director shall 53 promulgate regulations establishing requirements for such facilities. 54 10. A registered organization shall determine the quality, safety, and 55 clinical strength of medical cannabis manufactured or dispensed by the 56 registered organization, and shall provide documentation of that quali-S. 1509--A 118 A. 2009--A 1 ty, safety and clinical strength to the office and to any person or 2 entity to which the medical cannabis is sold or dispensed. 3 11. A registered organization shall be deemed to be a "health care 4 provider" for the purposes of article two-D of article two of the public 5 health law. 6 12. Medical cannabis shall be dispensed to a certified patient or 7 designated caregiver in a sealed and properly labeled package. The 8 labeling shall contain: (a) the information required to be included in 9 the receipt provided to the certified patient or designated caregiver by 10 the registered organization; (b) the packaging date; (c) any applicable 11 date by which the medical cannabis should be used; (d) a warning stat- 12 ing, "This product is for medicinal use only. Women should not consume 13 during pregnancy or while breastfeeding except on the advice of the 14 certifying health care practitioner, and in the case of breastfeeding 15 mothers, including the infant's pediatrician. This product might impair 16 the ability to drive. Keep out of reach of children."; (e) the amount of 17 individual doses contained within; and (f) a warning that the medical 18 cannabis must be kept in the original container in which it was 19 dispensed. 20 13. The executive director is authorized to make rules and regulations 21 restricting the advertising and marketing of medical cannabis. 22 § 35. Registering of registered organizations. 1. Application for 23 initial registration. (a) An applicant for registration as a registered 24 organization under section thirty-four of this article shall include 25 such information prepared in such manner and detail as the executive 26 director may require, including but not limited to: 27 (i) a description of the activities in which it intends to engage as a 28 registered organization; 29 (ii) that the applicant: 30 (A) is of good moral character; 31 (B) possesses or has the right to use sufficient land, buildings, and 32 other premises, which shall be specified in the application, and equip- 33 ment to properly carry on the activity described in the application, or 34 in the alternative posts a bond of not less than two million dollars; 35 (C) is able to maintain effective security and control to prevent 36 diversion, abuse, and other illegal conduct relating to the cannabis; 37 and 38 (D) is able to comply with all applicable state laws and regulations 39 relating to the activities in which it intends to engage under the 40 registration; 41 (iii) that the applicant has entered into a labor peace agreement with 42 a bona fide labor organization that is actively engaged in representing 43 or attempting to represent the applicant's employees and the maintenance 44 of such a labor peace agreement shall be an ongoing material condition 45 of certification; 46 (iv) the applicant's status as a for-profit business entity or not- 47 for-profit corporation; and 48 (v) the application shall include the name, residence address and 49 title of each of the officers and directors and the name and residence 50 address of any person or entity that is a member of the applicant. Each 51 such person, if an individual, or lawful representative if a legal enti- 52 ty, shall submit an affidavit with the application setting forth: 53 (A) any position of management or ownership during the preceding ten 54 years of a ten per centum or greater interest in any other business, 55 located in or outside this state, manufacturing or distributing drugs;S. 1509--A 119 A. 2009--A 1 (B) whether such person or any such business has been convicted of a 2 felony or had a registration or license suspended or revoked in any 3 administrative or judicial proceeding; and 4 (C) such other information as the executive director may reasonably 5 require. 6 2. The applicant shall be under a continuing duty to report to the 7 office any change in facts or circumstances reflected in the application 8 or any newly discovered or occurring fact or circumstance which is 9 required to be included in the application. 10 3. (a) The executive director shall grant a registration or amendment 11 to a registration under this section if he or she is satisfied that: 12 (i) the applicant will be able to maintain effective control against 13 diversion of cannabis; 14 (ii) the applicant will be able to comply with all applicable state 15 laws; 16 (iii) the applicant and its officers are ready, willing and able to 17 properly carry on the manufacturing or distributing activity for which a 18 registration is sought; 19 (iv) the applicant possesses or has the right to use sufficient land, 20 buildings and equipment to properly carry on the activity described in 21 the application; 22 (v) it is in the public interest that such registration be granted, 23 including but not limited to: 24 (A) whether the number of registered organizations in an area will be 25 adequate or excessive to reasonably serve the area; 26 (B) whether the registered organization is a minority and/or woman 27 owned business enterprise or a service-disabled veteran-owned business; 28 (C) whether the registered organization provides education and 29 outreach to practitioners; 30 (D) whether the registered organization promotes the research and 31 development of medical cannabis and patient outreach; and 32 (E) the affordability medical cannabis products offered by the regis- 33 tered organization; 34 (vi) the applicant and its managing officers are of good moral charac- 35 ter; 36 (vii) the applicant has entered into a labor peace agreement with a 37 bona fide labor organization that is actively engaged in representing or 38 attempting to represent the applicant's employees; and the maintenance 39 of such a labor peace agreement shall be an ongoing material condition 40 of registration; and 41 (viii) the applicant satisfies any other conditions as determined by 42 the executive director. 43 (b) If the executive director is not satisfied that the applicant 44 should be issued a registration, he or she shall notify the applicant in 45 writing of those factors upon which the denial is based. Within thirty 46 days of the receipt of such notification, the applicant may submit a 47 written request to the executive director to appeal the decision. 48 (c) The fee for a registration under this section shall be an amount 49 determined by the office in regulations; provided, however, if the 50 registration is issued for a period greater than two years the fee shall 51 be increased, pro rata, for each additional month of validity. 52 (d) Registrations issued under this section shall be effective only 53 for the registered organization and shall specify: 54 (i) the name and address of the registered organization; 55 (ii) which activities of a registered organization are permitted by 56 the registration;S. 1509--A 120 A. 2009--A 1 (iii) the land, buildings and facilities that may be used for the 2 permitted activities of the registered organization; and 3 (iv) such other information as the executive director shall reasonably 4 provide to assure compliance with this article. 5 (e) Upon application of a registered organization, a registration may 6 be amended to allow the registered organization to relocate within the 7 state or to add or delete permitted registered organization activities 8 or facilities. The fee for such amendment shall be two hundred fifty 9 dollars. 10 4. A registration issued under this section shall be valid for two 11 years from the date of issue, except that in order to facilitate the 12 renewals of such registrations, the executive director may upon the 13 initial application for a registration, issue some registrations which 14 may remain valid for a period of time greater than two years but not 15 exceeding an additional eleven months. 16 5. (a) An application for the renewal of any registration issued 17 under this section shall be filed with the office not more than six 18 months nor less than four months prior to the expiration thereof. A 19 late-filed application for the renewal of a registration may, in the 20 discretion of the executive director, be treated as an application for 21 an initial license. 22 (b) The application for renewal shall include such information 23 prepared in the manner and detail as the executive director may require, 24 including but not limited to: 25 (i) any material change in the circumstances or factors listed in 26 subdivision one of this section; and 27 (ii) every known charge or investigation, pending or concluded during 28 the period of the registration, by any governmental or administrative 29 agency with respect to: 30 (A) each incident or alleged incident involving the theft, loss, or 31 possible diversion of cannabis manufactured or distributed by the appli- 32 cant; and 33 (B) compliance by the applicant with the laws of the state with 34 respect to any substance listed in section thirty-three hundred six of 35 the public health law. 36 (c) An applicant for renewal shall be under a continuing duty to 37 report to the office any change in facts or circumstances reflected in 38 the application or any newly discovered or occurring fact or circum- 39 stance which is required to be included in the application. 40 (d) If the executive director is not satisfied that the registered 41 organization applicant is entitled to a renewal of the registration, he 42 or she shall within a reasonably practicable time as determined by the 43 executive director, serve upon the registered organization or its attor- 44 ney of record in person or by registered or certified mail an order 45 directing the registered organization to show cause why its application 46 for renewal should not be denied. The order shall specify in detail the 47 respects in which the applicant has not satisfied the executive director 48 that the registration should be renewed. 49 6. (a) The executive director shall renew a registration unless he or 50 she determines and finds that: 51 (i) the applicant is unlikely to maintain or be able to maintain 52 effective control against diversion; 53 (ii) the applicant is unlikely to comply with all state laws applica- 54 ble to the activities in which it may engage under the registration;S. 1509--A 121 A. 2009--A 1 (iii) it is not in the public interest to renew the registration 2 because the number of registered organizations in an area is excessive 3 to reasonably serve the area; or 4 (iv) the applicant has either violated or terminated its labor peace 5 agreement. 6 (b) For purposes of this section, proof that a registered organiza- 7 tion, during the period of its registration, has failed to maintain 8 effective control against diversion, violates any provision of this 9 article, or has knowingly or negligently failed to comply with applica- 10 ble state laws relating to the activities in which it engages under the 11 registration, shall constitute grounds for suspension, termination or 12 limitation of the registered organization's registration or as deter- 13 mined by the executive director. The registered organization shall also 14 be under a continuing duty to report to the authority any material 15 change or fact or circumstance to the information provided in the regis- 16 tered organization's application. 17 7. The office may suspend or terminate the registration of a regis- 18 tered organization, on grounds and using procedures under this article 19 relating to a license, to the extent consistent with this article. The 20 authority shall suspend or terminate the registration in the event that 21 a registered organization violates or terminates the applicable labor 22 peace agreement. Conduct in compliance with this article which may 23 violate conflicting federal law, shall not be grounds to suspend or 24 terminate a registration. 25 8. The office shall begin issuing registrations for registered organ- 26 izations as soon as practicable after the certifications required by 27 this article are given. 28 9. The executive director shall register at least ten registered 29 organizations that manufacture medical cannabis with no more than four 30 dispensing sites wholly owned and operated by such registered organiza- 31 tion. The executive director shall ensure that such registered organiza- 32 tions and dispensing sites are geographically distributed across the 33 state. The executive director may register additional registered organ- 34 izations. 35 § 36. Expedited registration of registered organizations. 1. There is 36 hereby established in the office an emergency medical cannabis access 37 program, referred to in this section as the "program", under this 38 section. The purpose of the program is to expedite the availability of 39 medical cannabis to avoid suffering and loss of life, during the period 40 before full implementation of and production under this article, espe- 41 cially in the case of patients whose serious condition is progressive 42 and degenerative or is such that delay in the patient's medical use of 43 cannabis poses a serious risk to the patient's life or health. The 44 executive director shall implement the program as expeditiously as prac- 45 ticable, including by emergency regulation. 46 2. For the purposes of this section, and for specified limited times, 47 the executive director may waive or modify the requirements of this 48 article relating to registered organizations, consistent with the legis- 49 lative intent and purpose of this article and this section. Where an 50 entity seeking to be a registered organization under the program oper- 51 ates in a jurisdiction other than the state of New York, under licensure 52 or other governmental recognition of that jurisdiction, and the laws of 53 that jurisdiction are acceptable to the executive director as consistent 54 with the legislative intent and purpose of this article and this 55 section, then the executive director may accept that licensure or recog- 56 nition as wholly or partially satisfying the requirements of this arti-S. 1509--A 122 A. 2009--A 1 cle, for purposes of the registration and operation of the registered 2 organization under the program and this section. 3 3. In considering an application for registration as a registered 4 organization under this section, the executive director shall give pref- 5 erence to the following: 6 (a) an applicant that is currently producing or providing or has a 7 history of producing or providing medical cannabis in another jurisdic- 8 tion in full compliance with the laws of the jurisdiction; 9 (b) an applicant that is able and qualified to both produce, distrib- 10 ute, and dispense medical cannabis to patients expeditiously; and 11 (c) an applicant that proposes a location or locations for dispensing 12 by the registered organization, which ensure, to the greatest extent 13 possible, that certified patients have access to a registered organiza- 14 tion. 15 4. The executive director may make regulations under this section: 16 (a) limiting registered organizations registered under this section; 17 or 18 (b) limiting the allowable levels of cannabidiol and tetrahydrocanna- 19 binol that may be contained in medical cannabis authorized under this 20 article, based on therapeutics and patient safety. 21 5. A registered organization under this section may apply under this 22 article to receive or renew registration. 23 § 37. Reports of registered organizations. 1. The executive director 24 shall, by regulation, require each registered organization to file 25 reports by the registered organization during a particular period. The 26 executive director shall determine the information to be reported and 27 the forms, time, and manner of the reporting. 28 2. The executive director shall, by regulation, require each regis- 29 tered organization to adopt and maintain security, tracking, record 30 keeping, record retention and surveillance systems, relating to all 31 medical cannabis at every stage of acquiring, possession, manufacture, 32 sale, delivery, transporting, distributing, or dispensing by the regis- 33 tered organization, subject to regulations of the executive director. 34 § 38. Evaluation; research programs; report by office. 1. The execu- 35 tive director may provide for the analysis and evaluation of the opera- 36 tion of this title. The executive director may enter into agreements 37 with one or more persons, not-for-profit corporations or other organiza- 38 tions, for the performance of an evaluation of the implementation and 39 effectiveness of this title. 40 2. The office may develop, seek any necessary federal approval for, 41 and carry out research programs relating to medical use of cannabis. 42 Participation in any such research program shall be voluntary on the 43 part of practitioners, patients, and designated caregivers. 44 3. The office shall report every two years, beginning two years after 45 the effective date of this chapter, to the governor and the legislature 46 on the medical use of cannabis under this title and make appropriate 47 recommendations. 48 § 39. Cannabis research license. 1. The executive director shall 49 establish a cannabis research license that permits a licensee to 50 produce, process, purchase and possess cannabis for the following limit- 51 ed research purposes: 52 (a) to test chemical potency and composition levels; 53 (b) to conduct clinical investigations of cannabis-derived drug 54 products; 55 (c) to conduct research on the efficacy and safety of administering 56 cannabis as part of medical treatment; andS. 1509--A 123 A. 2009--A 1 (d) to conduct genomic or agricultural research. 2 2. As part of the application process for a cannabis research license, 3 an applicant must submit to the office a description of the research 4 that is intended to be conducted as well as the amount of cannabis to be 5 grown or purchased. The office shall review an applicant's research 6 project and determine whether it meets the requirements of subsection 7 one of this section. In addition, the office shall assess the applica- 8 tion based on the following criteria: 9 (a) project quality, study design, value, and impact; 10 (b) whether the applicant has the appropriate personnel, expertise, 11 facilities and infrastructure, funding, and human, animal, or other 12 approvals in place to successfully conduct the project; and 13 (c) whether the amount of cannabis to be grown or purchased by the 14 applicant is consistent with the project's scope and goals. If the 15 office determines that the research project does not meet the require- 16 ments of subsection one of this section, the application must be denied. 17 3. A cannabis research licensee may only sell cannabis grown or within 18 its operation to other cannabis research licensees. The office may 19 revoke a cannabis research license for violations of this subsection. 20 4. A cannabis research licensee may contract with the higher education 21 institutions to perform research in conjunction with the university. All 22 research projects, entered into under this section must be approved by 23 the office and meet the requirements of subsection one of this section. 24 5. In establishing a cannabis research license, the executive director 25 may adopt regulations on the following: 26 (a) application requirements; 27 (b) cannabis research license renewal requirements, including whether 28 additional research projects may be added or considered; 29 (c) conditions for license revocation; 30 (d) security measures to ensure cannabis is not diverted to purposes 31 other than research; 32 (e) amount of plants, useable cannabis, cannabis concentrates, or 33 cannabis-infused products a licensee may have on its premises; 34 (f) licensee reporting requirements; 35 (g) conditions under which cannabis grown by licensed cannabis produc- 36 ers and other product types from licensed cannabis processors may be 37 donated to cannabis research licensees; and 38 (h) any additional requirements deemed necessary by the office. 39 6. A cannabis research license issued pursuant to this section must be 40 issued in the name of the applicant, specify the location at which the 41 cannabis researcher intends to operate, which must be within the state 42 of New York, and the holder thereof may not allow any other person to 43 use the license. 44 7. The application fee for a cannabis research license shall be deter- 45 mined by the executive director on an annual basis. 46 8. Each cannabis research licensee shall issue an annual report to the 47 office. The office shall review such report and make a determination as 48 to whether the research project continues to meet the research quali- 49 fications under this section. 50 § 40. Registered organizations and adult-use cannabis. 1. The execu- 51 tive director shall have the authority to grant some or all of the 52 registered organizations previously registered with the department of 53 health and currently registered and in good standing with the office, 54 the ability to be licensed to cultivate, process, distribute and sell 55 adult-use cannabis and cannabis products, pursuant to any fees, rules or 56 conditions prescribed by the executive director in regulation, butS. 1509--A 124 A. 2009--A 1 exempt from the restrictions on licensed adult-use cultivators, process- 2 ors, and distributors from having any ownership interest in a licensed 3 adult-use retail dispensary pursuant to article four of this chapter. 4 2. The office shall have the authority to hold a competitive bidding 5 process, including an auction, to determine the registered 6 organization(s) authorized to be licensed to cultivate, process, 7 distribute and sell adult-use cannabis and to collect the fees generated 8 from such auction to administer incubators and low or zero-interest 9 loans to qualified social equity applicants. The timing and manner in 10 which registered organizations may be granted such authority shall be 11 determined by the executive director in regulation. 12 3. Alternatively, registered organizations may apply for licensure as 13 an adult-use cannabis cultivator, adult-use cannabis processor, and 14 adult-use cannabis distributor, or apply for licensure as an adult-use 15 cannabis retail dispensary, subject to all of the restrictions and limi- 16 tations set forth in article four of this chapter. 17 § 41. Home cultivation of medical cannabis. 1. Certified patients and 18 their designated caregiver(s) twenty-one years of age or older may apply 19 for registration with the office to grow, possess or transport no more 20 than four cannabis plants per certified patient with no more than eight 21 cannabis plants per household. 22 2. All medical cannabis cultivated at home must be grown in an 23 enclosed, locked space, not open or viewable to the public. Such homeg- 24 rown medical cannabis must only be for use by the certified patient and 25 may not be distributed, sold, or gifted. 26 3. The executive director shall develop rules and regulations govern- 27 ing this section. 28 § 42. Relation to other laws. 1. The provisions of this article shall 29 apply, except that where a provision of this article conflicts with 30 another provision of this chapter, this article shall apply. 31 2. Medical cannabis shall not be deemed to be a "drug" for purposes of 32 article one hundred thirty-seven of the education law. 33 § 43. Protections for the medical use of cannabis. 1. Certified 34 patients, designated caregivers, designated caregiver facilities, prac- 35 titioners, registered organizations and the employees of registered 36 organizations, and cannabis researchers shall not be subject to arrest, 37 prosecution, or penalty in any manner, or denied any right or privilege, 38 including but not limited to civil penalty or disciplinary action by a 39 business or occupational or professional licensing board or bureau, 40 solely for the certified medical use or manufacture of cannabis, or for 41 any other action or conduct in accordance with this article. 42 2. Being a certified patient shall be deemed to be having a "disabili- 43 ty" under article fifteen of the executive law, section forty-c of the 44 civil rights law, sections 240.00, 485.00, and 485.05 of the penal law, 45 and section 200.50 of the criminal procedure law. This subdivision shall 46 not bar the enforcement of a policy prohibiting an employee from 47 performing his or her employment duties while impaired by a controlled 48 substance. This subdivision shall not require any person or entity to do 49 any act that would put the person or entity in direct violation of 50 federal law or cause it to lose a federal contract or funding. 51 3. The fact that a person is a certified patient and/or acting in 52 accordance with this article, shall not be a consideration in a proceed- 53 ing pursuant to applicable sections of the domestic relations law, the 54 social services law and the family court act. 55 4. (a) Certification applications, certification forms, any certified 56 patient information contained within a database, and copies of registryS. 1509--A 125 A. 2009--A 1 identification cards shall be deemed exempt from public disclosure under 2 sections eighty-seven and eighty-nine of the public officers law. 3 (b) The name, contact information, and other information relating to 4 practitioners registered with the office under this article shall be 5 public information and shall be maintained by the executive director on 6 the office's website accessible to the public in searchable form. Howev- 7 er, if a practitioner notifies the office in writing that he or she does 8 not want his or her name and other information disclosed, that practi- 9 tioner's name and other information shall thereafter not be public 10 information or maintained on the office's website, unless the practi- 11 tioner cancels the request. 12 § 44. Regulations. The executive director shall make regulations to 13 implement this article. 14 § 45. Suspend; terminate. Based upon the recommendation of the execu- 15 tive director and/or the superintendent of state police that there is a 16 risk to the public health or safety, the governor may immediately termi- 17 nate all licenses issued to registered organizations. 18 § 46. Pricing. 1. Every sale of medical cannabis shall be at or below 19 the price approved by the executive director. Every charge made or 20 demanded for medical cannabis not in accordance with the price approved 21 by the executive director, is prohibited. 22 2. The executive director is hereby authorized to set the per dose 23 price of each form of medical cannabis sold by any registered organiza- 24 tion. In reviewing the per dose price of each form of medical cannabis, 25 the executive director may consider the fixed and variable costs of 26 producing the form of cannabis and any other factor the executive direc- 27 tor, in his or her discretion, deems relevant in reviewing the per dose 28 price of each form of medical cannabis. 29 § 47. Severability. If any clause, sentence, paragraph, section or 30 part of this article shall be adjudged by any court of competent juris- 31 diction to be invalid, the judgment shall not affect, impair, or invali- 32 date the remainder thereof, but shall be confined in its operation to 33 the clause, sentence, paragraph, section or part thereof directly 34 involved in the controversy in which the judgment shall have been 35 rendered. 36 ARTICLE 4 37 ADULT-USE CANNABIS 38 Section 60. Licenses issued. 39 61. License application. 40 62. Information to be requested in applications for licenses. 41 63. Fees. 42 64. Selection criteria. 43 65. Limitations of licensure; duration. 44 66. License renewal. 45 67. Amendments; changes in ownership and organizational struc- 46 ture. 47 68. Adult-use cultivator license. 48 69. Adult-use processor license. 49 70. Adult-use cooperative license. 50 71. Adult-use distributor license. 51 72. Adult-use retail dispensary license. 52 73. Notification to municipalities of adult-use retail dispen- 53 sary.S. 1509--A 126 A. 2009--A 1 74. On-site consumption license; provisions governing on-site 2 consumption licenses. 3 75. Record keeping and tracking. 4 76. Inspections and ongoing requirements. 5 77. Adult-use cultivators, processors or distributors not to be 6 interested in retail dispensaries. 7 78. Packaging and labeling of adult-use cannabis products. 8 79. Laboratory testing. 9 80. Provisions governing the cultivation and processing of 10 adult-use cannabis. 11 81. Provisions governing the distribution of adult-use cannabis. 12 82. Provisions governing adult-use cannabis retail dispensaries. 13 83. Adult-use cannabis advertising. 14 84. Minority, women-owned businesses and disadvantaged farmers; 15 incubator program. 16 85. Regulations. 17 § 60. Licenses issued. The following kinds of licenses shall be 18 issued by the executive director for the cultivation, processing, 19 distribution and sale of cannabis to cannabis consumers: 20 1. Adult-use cultivator license; 21 2. Adult-use processor license; 22 3. Adult-use cooperative license; 23 4. Adult-use distributor license; 24 5. Adult-use retail dispensary license; 25 6. On-site consumption license; and 26 7. Any other type of license as prescribed by the executive director 27 in regulation. 28 § 61. License Application. 1. Any person may apply to the office for 29 a license to cultivate, process, distribute or dispense cannabis within 30 this state for sale. Such application shall be in writing and verified 31 and shall contain such information as the office shall require. Such 32 application shall be accompanied by a check or draft for the amount 33 required by this article for such license. If the office shall approve 34 the application, it shall issue a license in such form as shall be 35 determined by its rules. Such license shall contain a description of the 36 licensed premises and in form and in substance shall be a license to the 37 person therein specifically designated to cultivate, process, distribute 38 or dispense cannabis in the premises therein specifically licensed. 39 2. Except as otherwise provided in this article, a separate license 40 shall be required for each facility at which cultivation, processing, 41 distribution or retail dispensing is conducted. 42 3. An applicant shall not be denied a license under this article based 43 solely on a conviction for a violation of article two hundred twenty or 44 section 240.36 of the penal law, prior to the date article two hundred 45 twenty-one of the penal law took effect, or a conviction for a violation 46 of article two hundred twenty-one of the penal law after the effective 47 date of this chapter. 48 § 62. Information to be requested in applications for licenses. 1. 49 The office shall have the authority to prescribe the manner and form in 50 which an application must be submitted to the office for licensure under 51 this article. 52 2. The executive director is authorized to adopt regulations, includ- 53 ing by emergency rule, establishing information which must be included 54 on an application for licensure under this article. Such information may 55 include, but is not limited to: information about the applicant's iden- 56 tity, including racial and ethnic diversity; ownership and investmentS. 1509--A 127 A. 2009--A 1 information, including the corporate structure; evidence of good moral 2 character, including the submission of fingerprints by the applicant to 3 the division of criminal justice services; information about the prem- 4 ises to be licensed; financial statements; and any other information 5 prescribed by in regulation. 6 3. All license applications shall be signed by the applicant (if an 7 individual), by a managing partner (if a limited liability corporation), 8 by an officer (if a corporation), or by all partners (if a partnership). 9 Each person signing such application shall verify it or affirm it as 10 true under the penalties of perjury. 11 4. All license or permit applications shall be accompanied by a check, 12 draft or other forms of payment as the office may require or authorize 13 in the amount required by this article for such license or permit. 14 5. If there be any change, after the filing of the application or the 15 granting of a license, in any of the facts required to be set forth in 16 such application, a supplemental statement giving notice of such change, 17 cost and source of money involved in the change, duly verified, shall be 18 filed with the office within ten days after such change. Failure to do 19 so shall, if willful and deliberate, be cause for revocation of the 20 license. 21 6. In giving any notice, or taking any action in reference to a regis- 22 tered organization or licensee of a licensed premises, the office may 23 rely upon the information furnished in such application and in any 24 supplemental statement connected therewith, and such information may be 25 presumed to be correct, and shall be binding upon a registered organiza- 26 tions, licensee or licensed premises as if correct. All information 27 required to be furnished in such application or supplemental statements 28 shall be deemed material in any prosecution for perjury, any proceeding 29 to revoke, cancel or suspend any license, and in the office's determi- 30 nation to approve or deny the license. 31 7. The office may, in its discretion, waive the submission of any 32 category of information described in this section for any category of 33 license or permit, provided that it shall not be permitted to waive the 34 requirement for submission of any such category of information solely 35 for an individual applicant or applicants. 36 § 63. Fees. 1. The office shall have the authority to charge appli- 37 cants for licensure under this article a non-refundable application fee 38 and/or to auction licenses to bidders determined by the office to be 39 qualified for such licensure based on the selection criteria in section 40 sixty-four of this article. Such fee may be based on the type of licen- 41 sure sought, cultivation and/or production volume, or any other factors 42 deemed reasonable and appropriate by the office to achieve the policy 43 and purpose of this chapter. 44 2. The office shall have the authority to charge licensees a biennial 45 license fee. Such fee shall be based on the amount of cannabis to be 46 cultivated, processed, distributed and/or dispensed by the licensee or 47 the gross annual receipts of the licensee for the previous license peri- 48 od, and any other factors deemed reasonable and appropriate by the 49 office. 50 § 64. Selection criteria. 1. The executive director shall develop 51 regulations for determining whether or not an applicant should be grant- 52 ed the privilege of an adult-use cannabis license, based on, but not 53 limited to, the following criteria: 54 (a) the applicant will be able to maintain effective control against 55 the illegal diversion of cannabis;S. 1509--A 128 A. 2009--A 1 (b) the applicant will be able to comply with all applicable state 2 laws and regulations; 3 (c) the applicant and its officers are ready, willing, and able to 4 properly carry on the activities for which a license is sought; 5 (d) the applicant possesses or has the right to use sufficient land, 6 buildings, and equipment to properly carry on the activity described in 7 the application; 8 (e) it is in the public interest that such license be granted, taking 9 into consideration, but not limited to, the following criteria: 10 (i) that it is a privilege, and not a right, to cultivate, process, 11 distribute, and sell cannabis; 12 (ii) the number, classes, and character of other licenses in proximity 13 to the location and in the particular municipality or subdivision there- 14 of; 15 (iii) evidence that all necessary licenses and permits have been 16 obtained from the state and all other governing bodies; 17 (iv) effect of the grant of the license on pedestrian or vehicular 18 traffic, and parking, in proximity to the location; 19 (v) the existing noise level at the location and any increase in noise 20 level that would be generated by the proposed premises; 21 (vi) the history of violations under the alcoholic beverage control 22 law or the cannabis law at the location, as well as any pattern of 23 violations under the alcoholic beverage control law or the cannabis law, 24 and reported criminal activity at the proposed premises; 25 (vii) the effect on the production, price and availability of cannabis 26 and cannabis products; and 27 (viii) any other factors specified by law or regulation that are rele- 28 vant to determine that granting a license would promote public conven- 29 ience and advantage and the public interest of the community; 30 (f) the applicant and its managing officers are of good moral charac- 31 ter and do not have an ownership or controlling interest in more 32 licenses or permits than allowed by this chapter; 33 (g) the applicant has entered into a labor peace agreement with a 34 bona-fide labor organization that is actively engaged in representing or 35 attempting to represent the applicant's employees, and the maintenance 36 of such a labor peace agreement shall be an ongoing material condition 37 of licensure. In evaluating applications from entities with twenty-five 38 or more employees, the office shall give priority to applicants that are 39 a party to a collective bargaining agreement with a bona-fide labor 40 organization in New York or in another state, and uses union labor to 41 construct its licensed facility; 42 (h) the applicant will contribute to communities, the workforce and 43 people disproportionately harmed by cannabis law enforcement; 44 (i) if the application is for an adult-use cultivator license, the 45 environmental impact of the facility to be licensed; and 46 (j) the applicant satisfies any other conditions as determined by the 47 executive director. 48 2. If the executive director is not satisfied that the applicant 49 should be issued a license, the executive director shall notify the 50 applicant in writing of the specific reason or reasons for denial. 51 3. The executive director shall have authority and sole discretion to 52 determine the number of licenses issued pursuant to this article. 53 § 65. Limitations of licensure; duration. 1. No license of any kind 54 may be issued to a person under the age of twenty-one years, nor shall 55 any licensee employ anyone under the age of twenty-one years.S. 1509--A 129 A. 2009--A 1 2. No person shall sell, deliver, or give away or cause or permit or 2 procure to be sold, delivered or given away any cannabis to any person, 3 actually or apparently, under the age of twenty-one years, any visibly 4 intoxicated person, or any habitually intoxicated person known to be 5 such by the person authorized to manufacture, traffic, or sell any 6 cannabis. 7 3. The office shall have the authority to limit, by canopy, plant 8 count, square footage or other means, the amount of cannabis allowed to 9 be grown, processed, distributed or sold by a licensee. 10 4. All licenses under this article shall expire two years after the 11 date of issue. 12 § 66. License renewal. 1. Each license, issued pursuant to this arti- 13 cle, may be renewed upon application therefore by the licensee and the 14 payment of the fee for such license as prescribed by this article. In 15 the case of applications for renewals, the office may dispense with the 16 requirements of such statements as it deems unnecessary in view of those 17 contained in the application made for the original license, but in any 18 event the submission of photographs of the licensed premises shall be 19 dispensed with, provided the applicant for such renewal shall file a 20 statement with the office to the effect that there has been no alter- 21 ation of such premises since the original license was issued. The office 22 may make such rules as it deems necessary, not inconsistent with this 23 chapter, regarding applications for renewals of licenses and permits and 24 the time for making the same. 25 2. Each applicant must submit to the office documentation of the 26 racial, ethnic, and gender diversity of the applicant's employees and 27 owners prior to a license being renewed. In addition, the office may 28 create a social responsibility framework agreement and make the adher- 29 ence to such agreement a conditional requirement of license renewal. 30 3. The office shall provide an application for renewal of a license 31 issued under this article not less than ninety days prior to the expira- 32 tion of the current license. 33 4. The office may only issue a renewal license upon receipt of the 34 prescribed renewal application and renewal fee from a licensee if, in 35 addition to the criteria in this section, the licensee's license is not 36 under suspension and has not been revoked. 37 5. Each applicant must maintain a labor peace agreement with a bona- 38 fide labor organization that is actively engaged in representing or 39 attempting to represent the applicant's employees and the maintenance of 40 such a labor peace agreement shall be an ongoing material condition of 41 licensure. 42 § 67. Amendments; changes in ownership and organizational structure. 43 1. Licenses issued pursuant to this article shall specify: 44 (a) the name and address of the licensee; 45 (b) the activities permitted by the license; 46 (c) the land, buildings and facilities that may be used for the 47 licensed activities of the licensee; 48 (d) a unique license number issued by the office to the licensee; and 49 (e) such other information as the executive director shall deem neces- 50 sary to assure compliance with this chapter. 51 2. Upon application of a licensee to the office, a license may be 52 amended to allow the licensee to relocate within the state, to add or 53 delete licensed activities or facilities, or to amend the ownership or 54 organizational structure of the entity that is the licensee. The fee for 55 such amendment shall be two hundred fifty dollars.S. 1509--A 130 A. 2009--A 1 3. A license shall become void by a change in ownership, substantial 2 corporate change or location without prior written approval of the exec- 3 utive director. The executive director may promulgate regulations allow- 4 ing for certain types of changes in ownership without the need for prior 5 written approval. 6 4. For purposes of this section, "substantial corporate change" shall 7 mean: 8 (a) for a corporation, a change of eighty percent or more of the offi- 9 cers and/or directors, or a transfer of eighty percent or more of stock 10 of such corporation, or an existing stockholder obtaining eighty percent 11 or more of the stock of such corporation; or 12 (b) for a limited liability company, a change of eighty percent or 13 more of the managing members of the company, or a transfer of eighty 14 percent or more of ownership interest in said company, or an existing 15 member obtaining a cumulative of eighty percent or more of the ownership 16 interest in said company. 17 § 68. Adult-use cultivator license. 1. An adult-use cultivator's 18 license shall authorize the acquisition, possession, cultivation and 19 sale of cannabis from the licensed premises of the adult-use cultivator 20 by such licensee to duly licensed processors in this state. The execu- 21 tive director may establish regulations allowing licensed adult-use 22 cultivators to perform certain types of minimal processing without the 23 need for an adult-use processor license. 24 2. For purposes of this section, cultivation shall include, but not be 25 limited to, the planting, growing, cloning, harvesting, drying, curing, 26 grading and trimming of cannabis. 27 3. A person holding an adult-use cultivator's license may apply for, 28 and obtain, one processor's license and one distributor's license. 29 4. A person holding an adult-use cultivator's license may not also 30 hold a retail dispensary license pursuant to this article and no adult- 31 use cannabis cultivator shall have a direct or indirect interest, 32 including by stock ownership, interlocking directors, mortgage or lien, 33 personal or real property, or any other means, in any premises licensed 34 as an adult-use cannabis retail dispensary or in any business licensed 35 as an adult-use cannabis retail dispensary pursuant to this article. 36 5. A person holding an adult-use cultivator's license may not hold a 37 license to distribute cannabis under this article unless the licensed 38 cultivator is also licensed as a processor under this article. 39 6. No person may have a direct or indirect financial or controlling 40 interest in more than one adult-use cultivator license issued pursuant 41 to this chapter. 42 7. The executive director shall have the authority to issue microbusi- 43 ness cultivator licenses, allowing microbusiness licensees to cultivate, 44 process, and distribute adult-use cannabis direct to licensed cannabis 45 retailers, under a single license. The executive director shall estab- 46 lish through regulation a production limit of total cannabis cultivated, 47 processed and/or distributed annually for microbusiness cultivator 48 licenses. 49 § 69. Adult-use processor license. 1. A processor's license shall 50 authorize the acquisition, possession, processing and sale of cannabis 51 from the licensed premises of the adult-use cultivator by such licensee 52 to duly licensed distributors. 53 2. For purposes of this section, processing shall include, but not be 54 limited to, blending, extracting, infusing, packaging, labeling, brand- 55 ing and otherwise making or preparing cannabis products. Processing 56 shall not include the cultivation of cannabis.S. 1509--A 131 A. 2009--A 1 3. No processor shall be engaged in any other business on the premises 2 to be licensed; except that nothing contained in this chapter shall 3 prevent a cannabis cultivator, cannabis processor, and cannabis distrib- 4 utor from operating on the same premises and from a person holding all 5 three licenses. 6 4. No cannabis processor licensee may hold more than three cannabis 7 processor licenses. 8 5. No adult-use cannabis processor shall have a direct or indirect 9 interest, including by stock ownership, interlocking directors, mortgage 10 or lien, personal or real property, or any other means, in any premises 11 licensed as an adult-use cannabis retail dispensary or in any business 12 licensed as an adult-use cannabis retail dispensary pursuant to this 13 article. 14 § 70. Adult-use cooperative license. 1. A cooperative license shall 15 authorize the acquisition, possession, cultivation, processing and sale 16 from the licensed premises of the adult-use cooperative by such licensee 17 to duly licensed distributors and/or retail dispensaries; but not 18 directly to cannabis consumers. 19 2. To be licensed as an adult-use cooperative, the cooperative must: 20 (i) be comprised of residents of the state of New York as a limited 21 liability company or limited liability partnership under the laws of the 22 state, or an appropriate business structure as determined by the execu- 23 tive director; 24 (ii) at least one member of the cooperative must have filed a Federal 25 Schedule F (Form 1040) for three of the past five years; and 26 (iii) the cooperative must operate according to the seven cooperative 27 principles published by the International Cooperative Alliance in nine- 28 teen hundred ninety-five. 29 3. No person shall be a member of more than one adult-use cooperative 30 licensed pursuant to this section. 31 4. No person or member of an adult-use cooperative license may have a 32 direct or indirect financial or controlling interest in any other 33 adult-use cannabis license issued pursuant to this chapter. 34 5. No adult-use cannabis cooperative shall have a direct or indirect 35 interest, including by stock ownership, interlocking directors, mortgage 36 or lien, personal or real property, or any other means, in any premises 37 licensed as an adult-use cannabis retail dispensary or in any business 38 licensed as an adult-use cannabis retail dispensary pursuant to this 39 article. 40 6. The executive director shall promulgate regulations governing coop- 41 erative licenses, including, but not limited to, the establishment of 42 canopy limits on the size and scope of cooperative licensees, and other 43 measures designed to incentivize the use and licensure of cooperatives. 44 § 71. Adult-use distributor license. 1. A distributor's license shall 45 authorize the acquisition, possession, distribution and sale of cannabis 46 from the licensed premises of a licensed adult-use processor, microbusi- 47 ness cultivator, or registered organization authorized to sell adult-use 48 cannabis, to duly licensed retail dispensaries. 49 2. No distributor shall have a direct or indirect economic interest in 50 any adult-use retail dispensary licensed pursuant to this article, or in 51 any registered organization registered pursuant to article three of this 52 chapter. This restriction shall not prohibit a registered organization 53 authorized pursuant to section forty of this chapter, from being granted 54 licensure by the office to distribute adult-use cannabis products culti- 55 vated and processed by the registered organization to the registered 56 organization's own licensed adult-use retail dispensaries.S. 1509--A 132 A. 2009--A 1 3. Nothing in subdivision two of this section shall prevent a distrib- 2 utor from charging an appropriate fee for the distribution of cannabis, 3 including based on the volume of cannabis distributed. 4 § 72. Adult-use retail dispensary license. 1. A retail dispensary 5 license shall authorize the acquisition, possession and sale of cannabis 6 from the licensed premises of the retail dispensary by such licensee to 7 cannabis consumers. 8 2. No person may have a direct or indirect financial or controlling 9 interest in more than three retail dispensary licenses issued pursuant 10 to this chapter. This restriction shall not prohibit a registered organ- 11 ization, authorized pursuant to section forty of this chapter, from 12 being granted licensure by the office to sell adult-use cannabis at 13 locations previously registered by the department of health and in oper- 14 ation as of April first, two thousand nineteen; subject to any condi- 15 tions, limitations or restrictions established by the office. 16 3. No person holding a retail dispensary license may also hold an 17 adult-use cultivation, processor, microbusiness cultivator, cooperative 18 or distributor license pursuant to this article. 19 4. No retail license shall be granted for any premises, unless the 20 applicant shall be the owner thereof, or shall be in possession of said 21 premises under a lease, management agreement or other agreement giving 22 the applicant control over the premises, in writing, for a term not less 23 than the license period. 24 5. No premises shall be licensed to sell cannabis products, unless 25 said premises shall be located in a store, the principal entrance to 26 which shall be from the street level and located on a public thorough- 27 fare in premises which may be occupied, operated or conducted for busi- 28 ness, trade or industry or on an arcade or sub-surface thoroughfare 29 leading to a railroad terminal. 30 6. No cannabis retail license shall be granted for any premises where 31 a licensee would not be allowed to sell at retail for consumption of 32 alcohol off the premises based on its proximity to a building occupied 33 exclusively as a school, church, synagogue or other place of worship 34 pursuant to the provisions of section one hundred five of the alcohol 35 beverage control law. 36 § 73. Notification to municipalities of adult-use retail dispensary. 37 1. Not less than thirty days nor more than two hundred seventy days 38 before filing an application for licensure as an adult-use cannabis 39 retail dispensary, an applicant shall notify the municipality in which 40 the premises is located of such applicant's intent to file such an 41 application. 42 2. Such notification shall be made to the clerk of the village, town 43 or city, as the case may be, wherein the premises is located. For 44 purposes of this section: 45 (a) notification need only be given to the clerk of a village when the 46 premises is located within the boundaries of the village, town or city; 47 and 48 (b) in the city of New York, the community board established pursuant 49 to section twenty-eight hundred of the New York city charter with juris- 50 diction over the area in which the premises is located shall be consid- 51 ered the appropriate public body to which notification shall be given. 52 3. Such notification shall be made in such form as shall be prescribed 53 by the rules of the office. 54 4. A municipality may express an opinion for or against the granting 55 of such application. Any such opinion shall be deemed part of the recordS. 1509--A 133 A. 2009--A 1 upon which the office makes its determination to grant or deny the 2 application. 3 5. Such notification shall be made by: (a) certified mail, return 4 receipt requested; (b) overnight delivery service with proof of mailing; 5 or (c) personal service upon the offices of the clerk or community 6 board. 7 6. The office shall require such notification to be on a standardized 8 form that can be obtained on the internet or from the office and such 9 notification to include: 10 (a) the trade name or "doing business as" name, if any, of the estab- 11 lishment; 12 (b) the full name of the applicant; 13 (c) the street address of the establishment, including the floor 14 location or room number, if applicable; 15 (d) the mailing address of the establishment, if different than the 16 street address; 17 (e) the name, address and telephone number of the attorney or repre- 18 sentative of the applicant, if any; 19 (f) a statement indicating whether the application is for: 20 (i) a new establishment; 21 (ii) a transfer of an existing licensed business; 22 (iii) a renewal of an existing license; or 23 (iv) an alteration of an existing licensed premises; 24 (g) if the establishment is a transfer or previously licensed prem- 25 ises, the name of the old establishment and such establishment's regis- 26 tration or license number; 27 (h) in the case of a renewal or alteration application, the registra- 28 tion or license number of the applicant; and 29 (i) the type of license. 30 § 74. On-site consumption license; provisions governing on-site 31 consumption licenses. 1. No licensed adult-use cannabis retail dispen- 32 sary shall be granted a cannabis on-site consumption license for any 33 premises, unless the applicant shall be the owner thereof, or shall be 34 in possession of said premises under a lease, in writing, for a term not 35 less than the license period except, however, that such license may 36 thereafter be renewed without the requirement of a lease as provided in 37 this section. This subdivision shall not apply to premises leased from 38 government agencies, as defined under subdivision twenty of section 39 three of this chapter; provided, however, that the appropriate adminis- 40 trator of such government agency provides some form of written documen- 41 tation regarding the terms of occupancy under which the applicant is 42 leasing said premises from the government agency for presentation to the 43 office at the time of the license application. Such documentation shall 44 include the terms of occupancy between the applicant and the government 45 agency, including, but not limited to, any short-term leasing agreements 46 or written occupancy agreements. 47 2. No adult-use cannabis retail dispensary shall be granted a cannabis 48 on-site consumption license for any premises where a license would not 49 be allowed to sell at retail for consumption of alcohol on the premises 50 based on its proximity to a building occupied exclusively as a school, 51 church, synagogue or other place of worship pursuant to the provisions 52 of section one hundred five of the alcoholic beverage control law. 53 3. The office may consider any or all of the following in determining 54 whether public convenience and advantage and the public interest will be 55 promoted by the granting of a license for an on-site cannabis consump- 56 tion at a particular location:S. 1509--A 134 A. 2009--A 1 (a) that it is a privilege, and not a right, to cultivate, process, 2 distribute, and sell cannabis; 3 (b) the number, classes, and character of other licenses in proximity 4 to the location and in the particular municipality or subdivision there- 5 of; 6 (c) evidence that all necessary licenses and permits have been 7 obtained from the state and all other governing bodies; 8 (d) effect of the grant of the license on pedestrian or vehicular 9 traffic, and parking, in proximity to the location; 10 (e) the existing noise level at the location and any increase in noise 11 level that would be generated by the proposed premises; 12 (f) the history of violations under the alcoholic beverage control law 13 or this chapter at the location, as well as any pattern of violations 14 under the alcoholic beverage control law or this chapter, and reported 15 criminal activity at the proposed premises; and 16 (g) any other factors specified by law or regulation that are relevant 17 to determine that granting a license would promote public convenience 18 and advantage and the public interest of the community; 19 4. If the office shall disapprove an application for an on-site 20 consumption license, it shall state and file in its offices the reasons 21 therefor and shall notify the applicant thereof. Such applicant may 22 thereupon apply to the office for a review of such action in a manner to 23 be prescribed by the rules of the office. 24 5. No adult-use cannabis on-site consumption licensee shall keep upon 25 the licensed premises any adult-use cannabis products except those 26 purchased from a licensed distributor, microbusiness cultivator or 27 registered organization authorized to sell adult-use cannabis, and only 28 in containers approved by the office. Such containers shall have affixed 29 thereto such labels as may be required by the rules of the office. No 30 cannabis retail licensee for on-site consumption shall reuse, refill, 31 tamper with, adulterate, dilute or fortify the contents of any container 32 of cannabis products as received from the manufacturer or distributor. 33 6. No cannabis on-site consumption licensee shall sell, deliver or 34 give away, or cause or permit or procure to be sold, delivered or given 35 away any cannabis for consumption on the premises where sold in a 36 container or package containing more than one gram of cannabis. 37 7. Except where a permit to do so is obtained pursuant to section 38 405.10 of the penal law, no cannabis on-site consumption licensee shall 39 suffer, permit, or promote an event on its premises wherein any person 40 shall use, explode, or cause to explode, any fireworks or other pyro- 41 technics in a building as defined in paragraph e of subdivision one of 42 section 405.10 of the penal law, that is covered by such license or 43 possess such fireworks or pyrotechnics for such purpose. In addition to 44 any other penalty provided by law, a violation of this subdivision shall 45 constitute an adequate ground for instituting a proceeding to suspend, 46 cancel, or revoke the license of the violator in accordance with the 47 applicable procedures specified in this chapter; provided however, if 48 more than one licensee is participating in a single event, upon approval 49 by the office, only one licensee must obtain such permit. 50 8. No premises licensed to sell adult-use cannabis for on-site 51 consumption under this chapter shall be permitted to have any opening or 52 means of entrance or passageway for persons or things between the 53 licensed premises and any other room or place in the building containing 54 the licensed premises, or any adjoining or abutting premises, unless 55 ingress and egress is restricted by an employee, agent of the licensee,S. 1509--A 135 A. 2009--A 1 or other method approved by the office of controlling access to the 2 facility. 3 9. Each cannabis on-site consumption licensee shall keep and maintain 4 upon the licensed premises, adequate records of all transactions involv- 5 ing the business transacted by such licensee which shall show the amount 6 of cannabis products, in an applicable metric measurement, purchased by 7 such licensee together with the names, license numbers and places of 8 business of the persons from whom the same were purchased, the amount 9 involved in such purchases, as well as the sales of cannabis products 10 made by such licensee. The office is hereby authorized to promulgate 11 rules and regulations permitting an on-site licensee operating two or 12 more premises separately licensed to sell cannabis products for on-site 13 consumption to inaugurate or retain in this state methods or practices 14 of centralized accounting, bookkeeping, control records, reporting, 15 billing, invoicing or payment respecting purchases, sales or deliveries 16 of cannabis products, or methods and practices of centralized receipt or 17 storage of cannabis products within this state without segregation or 18 earmarking for any such separately licensed premises, wherever such 19 methods and practices assure the availability, at such licensee's 20 central or main office in this state, of data reasonably needed for the 21 enforcement of this chapter. Such records shall be available for 22 inspection by any authorized representative of the office. 23 10. All retail licensed premises shall be subject to inspection by any 24 peace officer, acting pursuant to his or her special duties, or police 25 officer and by the duly authorized representatives of the office, during 26 the hours when the said premises are open for the transaction of busi- 27 ness. 28 11. A cannabis on-site consumption licensee shall not provide cannabis 29 products to any person under the age of twenty-one or to anyone visibly 30 intoxicated. 31 § 75. Record keeping and tracking. 1. The executive director shall, by 32 regulation, require each licensee pursuant to this article to adopt and 33 maintain security, tracking, record keeping, record retention and 34 surveillance systems, relating to all cannabis at every stage of acquir- 35 ing, possession, manufacture, sale, delivery, transporting, or distrib- 36 uting by the licensee, subject to regulations of the executive director. 37 2. Every licensee shall keep and maintain upon the licensed premises 38 adequate books and records of all transactions involving the licensee 39 and sale of its products, which shall include, but is not limited to, 40 all information required by any rules promulgated by the office. 41 3. Each sale shall be recorded separately on a numbered invoice, which 42 shall have printed thereon the number, the name of the licensee, the 43 address of the licensed premises, and the current license number. 44 Licensed producers shall deliver to the licensed distributor a true 45 duplicate invoice stating the name and address of the purchaser, the 46 quantity purchased, description and the price of the product, and a 47 true, accurate and complete statement of the terms and conditions on 48 which such sale is made. 49 4. Such books, records and invoices shall be kept for a period of five 50 years and shall be available for inspection by any authorized represen- 51 tative of the office. 52 5. Each adult-use cannabis retail dispensary and on-site consumption 53 licensee shall keep and maintain upon the licensed premises, adequate 54 records of all transactions involving the business transacted by such 55 licensee which shall show the amount of cannabis, in weight, purchased 56 by such licensee together with the names, license numbers and places ofS. 1509--A 136 A. 2009--A 1 business of the persons from whom the same were purchased, the amount 2 involved in such purchases, as well as the sales of cannabis made by 3 such licensee. 4 § 76. Inspections and ongoing requirements. All licensed or permitted 5 premises, regardless of the type of premises, shall be subject to 6 inspection by the office, by the duly authorized representatives of the 7 office, by any peace officer acting pursuant to his or her special 8 duties, or by a police officer, during the hours when the said premises 9 are open for the transaction of business. The office shall make reason- 10 able accommodations so that ordinary business is not interrupted and 11 safety and security procedures are not compromised by the inspection. A 12 person who holds a license or permit must make himself or herself, or an 13 agent thereof, available and present for any inspection required by the 14 office. Such inspection may include, but is not limited to, ensuring 15 compliance by the licensee or permittee with all other applicable build- 16 ing codes, fire, health, safety, and governmental regulations, including 17 at the municipal, county, and state level. 18 § 77. Adult-use cultivators, processors or distributors not to be 19 interested in retail dispensaries. 1. It shall be unlawful for a culti- 20 vator, processor, cooperative or distributor licensed under this article 21 to: 22 (a) be interested directly or indirectly in any premises where any 23 cannabis product is sold at retail; or in any business devoted wholly or 24 partially to the sale of any cannabis product at retail by stock owner- 25 ship, interlocking directors, mortgage or lien or any personal or real 26 property, or by any other means. 27 (b) make, or cause to be made, any loan to any person engaged in the 28 manufacture or sale of any cannabis product at wholesale or retail. 29 (c) make any gift or render any service of any kind whatsoever, 30 directly or indirectly, to any person licensed under this chapter which 31 in the judgment of the office may tend to influence such licensee to 32 purchase the product of such cultivator or processor or distributor. 33 (d) enter into any contract with any retail licensee whereby such 34 licensee agrees to confine his sales to cannabis products manufactured 35 or sold by one or more such cultivator or processors or distributors. 36 Any such contract shall be void and subject the licenses of all parties 37 concerned to revocation for cause. 38 2. The provisions of this section shall not prohibit a registered 39 organization authorized pursuant to section forty of this chapter, from 40 cultivating, processing, distributing and selling adult-use cannabis 41 under this article, at facilities wholly owned and operated by such 42 registered organization, subject to any conditions, limitations or 43 restrictions established by the office. 44 3. The office shall have the power to create rules and regulations in 45 regard to this section. 46 § 78. Packaging and labeling of adult-use cannabis products. 1. The 47 office is hereby authorized to promulgate rules and regulations govern- 48 ing the packaging and labeling of cannabis products, sold or possessed 49 for sale in New York state. 50 2. Such regulations shall include, but not be limited to, requiring 51 that: 52 (a) packaging meets requirements similar to the federal "poison 53 prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.; 54 (b) all cannabis-infused products shall have a separate packaging for 55 each serving;S. 1509--A 137 A. 2009--A 1 (c) prior to delivery or sale at a retailer, cannabis and cannabis 2 products shall be labeled and placed in a resealable, child-resistant 3 package; and 4 (d) packages and labels shall not be made to be attractive to minors. 5 3. Such regulations shall include requiring labels warning consumers 6 of any potential impact on human health resulting from the consumption 7 of cannabis products that shall be affixed to those products when sold, 8 if such labels are deemed warranted by the office. 9 4. Such rules and regulations shall establish methods and procedures 10 for determining serving sizes for cannabis-infused products, active 11 cannabis concentration per serving size, and number of servings per 12 container. Such regulations shall also require a nutritional fact panel 13 that incorporates data regarding serving sizes and potency thereof. 14 5. The packaging, sale, or possession by any licensee of any cannabis 15 product not labeled or offered in conformity with rules and regulations 16 promulgated in accordance with this section shall be grounds for the 17 imposition of a fine, and/or the suspension, revocation or cancellation 18 of a license. 19 § 79. Laboratory testing. 1. Every processor of adult-use cannabis 20 shall contract with an independent laboratory permitted pursuant to 21 section one hundred twenty-nine of this chapter, to test the cannabis 22 products it produces pursuant to rules and regulations prescribed by the 23 office. The executive director may assign an approved testing laborato- 24 ry, which the processor of adult-use cannabis must use. 25 2. Adult-use cannabis processors shall make laboratory test reports 26 available to licensed distributors and retail dispensaries for all 27 cannabis products manufactured by the processor. 28 3. Licensed retail dispensaries shall maintain accurate documentation 29 of laboratory test reports for each cannabis product offered for sale to 30 cannabis consumers. Such documentation shall be made publicly available 31 by the licensed retail dispensary. 32 4. Onsite laboratory testing by licensees is permissible; however, 33 such testing shall not be certified by the office and does not exempt 34 the licensee from the requirements of quality assurance testing at a 35 testing laboratory pursuant to this section. 36 5. An owner of a cannabis laboratory testing permit shall not hold a 37 license in any other category within this article and shall not own or 38 have ownership interest in a registered organization registered pursuant 39 to article three of this chapter. 40 6. The office shall have the authority to require any licensee under 41 this article to submit cannabis or cannabis products to one or more 42 independent laboratories for testing. 43 § 80. Provisions governing the cultivation and processing of adult-use 44 cannabis. 1. Cultivation of cannabis must not be visible from a public 45 place by normal unaided vision. 46 2. No cultivator or processor of adult-use cannabis shall sell, or 47 agree to sell or deliver in the state any cannabis products, as the case 48 may be, except in sealed containers containing quantities in accordance 49 with size standards pursuant to rules adopted by the office. Such 50 containers shall have affixed thereto such labels as may be required by 51 the rules of the office. 52 3. No cultivator or processor of adult-use cannabis shall furnish or 53 cause to be furnished to any licensee, any exterior or interior sign, 54 printed, painted, electric or otherwise, except as authorized by the 55 office. The office may make such rules as it deems necessary to carry 56 out the purpose and intent of this subdivision.S. 1509--A 138 A. 2009--A 1 4. Cultivators of adult-use cannabis shall only use pesticides that 2 are registered by the department of environmental conservation or that 3 specifically meet the United States environmental protection agency 4 registration exemption criteria for minimum risk pesticides, and only in 5 compliance with regulations, standards and guidelines issued by the 6 department of environmental conservation. 7 5. No cultivator or processor of adult-use cannabis shall transport 8 cannabis products in any vehicle owned and operated or hired and oper- 9 ated by such cultivator or processor, unless there shall be attached to 10 or inscribed upon both sides of such vehicle a sign, showing the name 11 and address of the licensee, together with the following inscription: 12 "New York State Cannabis Cultivator (or Processor) License No. _____" in 13 uniform letters not less than three and one-half inches in height. In 14 lieu of such sign a cultivator or processor may have in the cab of such 15 vehicle a photostatic copy of its current license issued by the office, 16 and such copy duly authenticated by the office. 17 6. No cultivator or processor of adult-use cannabis shall deliver any 18 cannabis products, except in vehicles owned and operated by such culti- 19 vator, processor, or hired and operated by such cultivator or processor 20 from a trucking or transportation company registered with the office, 21 and shall only make deliveries at the licensed premises of the purchas- 22 er. 23 7. No cultivator or processor of adult-use cannabis, including an 24 adult-use cannabis cooperative or microbusiness cultivator, may offer 25 any incentive, payment or other benefit to a licensed cannabis retail 26 dispensary in return for carrying the cultivator, processor, cooperative 27 or microbusiness cultivator's products, or preferential shelf placement. 28 8. All cannabis products shall be processed in accordance with good 29 manufacturing processes, pursuant to Part 111 of Title 21 of the Code of 30 Federal Regulations, as may be modified by the executive director in 31 regulation. 32 9. No processor of adult-use cannabis shall produce any product which, 33 in the discretion of the office, is designed to appeal to anyone under 34 the age of twenty-one years. 35 10. The use or integration of alcohol or nicotine in cannabis products 36 is strictly prohibited. 37 § 81. Provisions governing the distribution of adult-use cannabis. 1. 38 No distributor shall sell, or agree to sell or deliver any cannabis 39 products, as the case may be, in any container, except in a sealed pack- 40 age. Such containers shall have affixed thereto such labels as may be 41 required by the rules of the office. 42 2. No distributor shall deliver any cannabis products, except in vehi- 43 cles owned and operated by such distributor, or hired and operated by 44 such distributor from a trucking or transportation company registered 45 with the office, and shall only make deliveries at the licensed premises 46 of the purchaser. 47 3. Each distributor shall keep and maintain upon the licensed prem- 48 ises, adequate books and records of all transactions involving the busi- 49 ness transacted by such distributor, which shall show the amount of 50 cannabis products purchased by such distributor together with the names, 51 license numbers and places of business of the persons from whom the same 52 was purchased and the amount involved in such purchases, as well as the 53 amount of cannabis products sold by such distributor together with the 54 names, addresses, and license numbers of such purchasers. Each sale 55 shall be recorded separately on a numbered invoice, which shall have 56 printed thereon the number, the name of the licensee, the address of theS. 1509--A 139 A. 2009--A 1 licensed premises, and the current license number. Such distributor 2 shall deliver to the purchaser a true duplicate invoice stating the name 3 and address of the purchaser, the quantity of cannabis products, 4 description by brands and the price of such cannabis products, and a 5 true, accurate and complete statement of the terms and conditions on 6 which such sale is made. Such books, records and invoices shall be kept 7 for a period of five years and shall be available for inspection by any 8 authorized representative of the office. 9 4. No distributor shall furnish or cause to be furnished to any licen- 10 see, any exterior or interior sign, printed, painted, electric or other- 11 wise, unless authorized by the office. 12 5. No distributor shall provide any discount, rebate or customer 13 loyalty program to any licensed retailer, except as otherwise allowed by 14 the office. 15 6. The executive director is authorized to promulgate regulations 16 establishing a maximum margin for which a distributor may mark up a 17 cannabis product for sale to a retail dispensary. Any adult-use cannabis 18 product sold by a distributor for more than the maximum markup allowed 19 in regulation, shall be unlawful. 20 7. Each distributor shall keep and maintain upon the licensed prem- 21 ises, adequate books and records to demonstrate the distributor's actual 22 cost of doing business, using accounting standards and methods regularly 23 employed in the determination of costs for the purpose of federal income 24 tax reporting, for the total operation of the licensee. Such books, 25 records and invoices shall be kept for a period of five years and shall 26 be available for inspection by any authorized representative of the 27 office for use in determining the maximum markup allowed in regulation 28 pursuant to subdivision six of this section. 29 § 82. Provisions governing adult-use cannabis retail dispensaries. 1. 30 No cannabis retail licensee shall sell, deliver, or give away or cause 31 or permit or procure to be sold, delivered or given away any cannabis to 32 any person, actually or apparently, under the age of twenty-one years, 33 any visibly intoxicated person, or any habitually intoxicated person 34 known to be such by the person authorized to sell, deliver, or give away 35 any cannabis. 36 2. No cannabis retail licensee shall sell more than one ounce of 37 cannabis per cannabis consumer per day; nor more than five grams of 38 cannabis concentrate per cannabis consumer per day. 39 3. No cannabis retail licensee shall sell alcoholic beverages, nor 40 have or possess a license or permit to sell alcoholic beverages, on the 41 same premises where cannabis products are sold. 42 4. No sign of any kind printed, painted or electric, advertising any 43 brand shall be permitted on the exterior or interior of such premises, 44 except by permission of the office. 45 5. No cannabis retail licensee shall sell or deliver any cannabis 46 products to any person with knowledge of, or with reasonable cause to 47 believe, that the person to whom such cannabis products are being sold, 48 has acquired the same for the purpose of peddling them from place to 49 place, or of selling or giving them away in violation of the provisions 50 of this chapter or in violation of the rules and regulations of the 51 office. 52 6. All premises licensed under this section shall be subject to 53 inspection by any peace officer described in subdivision four of section 54 2.10 of the criminal procedure law acting pursuant to his or her special 55 duties, or police officer or any duly authorized representative of theS. 1509--A 140 A. 2009--A 1 office, during the hours when the said premises are open for the trans- 2 action of business. 3 7. No cannabis retail licensee shall be interested, directly or indi- 4 rectly, in any cultivator, processor or distributor licensed pursuant to 5 this article, by stock ownership, interlocking directors, mortgage or 6 lien on any personal or real property or by any other means. Any lien, 7 mortgage or other interest or estate, however, now held by such retailer 8 on or in the personal or real property of such manufacturer or distribu- 9 tor, which mortgage, lien, interest or estate was acquired on or before 10 December thirty-first, two thousand eighteen, shall not be included 11 within the provisions of this subdivision; provided, however, the burden 12 of establishing the time of the accrual of the interest comprehended by 13 this subdivision, shall be upon the person who claims to be entitled to 14 the protection and exemption afforded hereby. 15 8. No cannabis retail licensee shall make or cause to be made any loan 16 to any person engaged in the cultivation, processing or distribution of 17 cannabis pursuant to this article. 18 9. Each cannabis retail licensee shall designate the price of each 19 item of cannabis by attaching to or otherwise displaying immediately 20 adjacent to each such item displayed in the interior of the licensed 21 premises where sales are made a price tag, sign or placard setting forth 22 the price at which each such item is offered for sale therein. 23 10. No person licensed to sell cannabis products at retail, shall 24 allow or permit any gambling, or offer any gambling on the licensed 25 premises, or allow or permit illicit drug activity on the licensed prem- 26 ises. The use of the licensed premises or any part thereof for the sale 27 of lottery tickets, when duly authorized and lawfully conducted thereon, 28 shall not constitute gambling within the meaning of this subdivision. 29 11. If an employee of a cannabis retail licensee suspects that a 30 cannabis consumer may be abusing cannabis, such an employee shall 31 encourage such cannabis consumer to seek the help of a registered prac- 32 titioner and become a certified patient. Cannabis retail licensees shall 33 develop standard operating procedures and written materials for employ- 34 ees to utilize when consulting consumers for purposes of this subdivi- 35 sion. 36 12. The executive director is authorized to promulgate regulations 37 governing licensed adult-use dispensing facilities, including but not 38 limited to, the hours of operation, size and location of the licensed 39 facility, potency and types of products offered and establishing a mini- 40 mum margin for which a retail dispensary must markup a cannabis 41 product(s) before selling to a cannabis consumer. Any adult-use cannabis 42 product sold by a retail dispensary for less than the minimum markup 43 allowed in regulation, shall be unlawful. 44 § 83. Adult-use cannabis advertising. 1. The office is hereby author- 45 ized to promulgate rules and regulations governing the advertising of 46 licensed adult-use cannabis cultivators, processors, cooperatives, 47 distributors, retailers, and any cannabis products or services. 48 2. The office shall promulgate explicit rules prohibiting advertising 49 that: 50 (a) is false, deceptive, or misleading; 51 (b) promotes overconsumption; 52 (c) depicts consumption by children or other minors; 53 (d) is designed in any way to appeal to children or other minors; 54 (e) is within two hundred feet of the perimeter of a school grounds, 55 playground, child care center, public park, or library; 56 (f) is in public transit vehicles and stations;S. 1509--A 141 A. 2009--A 1 (g) is in the form of an unsolicited internet pop-up; 2 (h) is on publicly owned or operated property; or 3 (i) makes medical claims or promotes adult-use cannabis for a medical 4 or wellness purpose. 5 3. The office shall promulgate explicit rules prohibiting all market- 6 ing strategies and implementation including, but not limited to, brand- 7 ing, packaging, labeling, location of cannabis retailers, and advertise- 8 ments that are designed to: 9 (a) appeal to persons less then twenty-one years of age; or 10 (b) disseminate false or misleading information to customers. 11 4. The office shall promulgate explicit rules requiring that: 12 (a) all advertisements and marketing accurately and legibly identify 13 the licensee responsible for its content; and 14 (b) any broadcast, cable, radio, print and digital communications 15 advertisements only be placed where the audience is reasonably expected 16 to be twenty-one years of age or older, as determined by reliable, 17 up-to-date audience composition data. 18 § 84. Minority, women-owned businesses and disadvantaged farmers; 19 incubator program. 1. The office shall implement a social and economic 20 equity plan and actively promote racial, ethnic, and gender diversity 21 when issuing licenses for adult-use cannabis related activities, includ- 22 ing by prioritizing consideration of applications by applicants who 23 qualify as a minority and women-owned business or disadvantaged farmers. 24 Such qualifications shall be determined by the office in regulation. 25 2. The office shall create a social and economic equity plan to 26 promote diversity in ownership and employment in the adult-use cannabis 27 industry and ensure inclusion of: 28 (a) minority-owned businesses; 29 (b) women-owned businesses; 30 (c) minority and women-owned businesses, as defined in subdivision 31 five of this section; and 32 (d) disadvantaged farmers, as defined in subdivision five of this 33 section. 34 3. The social and economic equity plan shall consider additional 35 criteria in its licensing determinations. Under the social and economic 36 equity plan, extra weight shall be given to applications that demon- 37 strate that an applicant: 38 (a) is a member of a community group that has been disproportionately 39 impacted by the enforcement of cannabis prohibition; 40 (b) has an income lower than eighty percent of the median income of 41 the county in which the applicant resides; and 42 (c) was convicted of a cannabis-related offense prior to the effective 43 date of this chapter. 44 4. The office shall also create an incubator program to provide direct 45 support to social and economic equity applicants after they have been 46 granted licenses. The program shall provide direct support in the form 47 of counseling services, education, small business coaching, and compli- 48 ance assistance. 49 5. For the purposes of this section, the following definitions shall 50 apply: 51 (a) "minority-owned business" shall mean a business enterprise, 52 including a sole proprietorship, partnership, limited liability company 53 or corporation that is: 54 (i) at least fifty-one percent owned by one or more minority group 55 members;S. 1509--A 142 A. 2009--A 1 (ii) an enterprise in which such minority ownership is real, substan- 2 tial and continuing; 3 (iii) an enterprise in which such minority ownership has and exercises 4 the authority to control independently the day-to-day business decisions 5 of the enterprise; 6 (iv) an enterprise authorized to do business in this state and inde- 7 pendently owned and operated; and 8 (v) an enterprise that is a small business. 9 (b) "minority group member" shall mean a United States citizen or 10 permanent resident alien who is and can demonstrate membership in one of 11 the following groups: 12 (i) black persons having origins in any of the black African racial 13 groups; 14 (ii) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban, 15 Central or South American of either Indian or Hispanic origin, regard- 16 less of race; 17 (iii) Native American or Alaskan native persons having origins in any 18 of the original peoples of North America; or 19 (iv) Asian and Pacific Islander persons having origins in any of the 20 far east countries, south east Asia, the Indian subcontinent or the 21 Pacific islands. 22 (c) "women-owned business" shall mean a business enterprise, including 23 a sole proprietorship, partnership, limited liability company or corpo- 24 ration that is: 25 (i) at least fifty-one percent owned by one or more United States 26 citizens or permanent resident aliens who are women; 27 (ii) an enterprise in which the ownership interest of such women is 28 real, substantial and continuing; 29 (iii) an enterprise in which such women ownership has and exercises 30 the authority to control independently the day-to-day business decisions 31 of the enterprise; 32 (iv) an enterprise authorized to do business in this state and inde- 33 pendently owned and operated; and 34 (v) an enterprise that is a small business. 35 (d) a firm owned by a minority group member who is also a woman may be 36 defined as a minority-owned business, a women-owned business, or both. 37 (e) "disadvantaged farmer" shall mean a New York state resident or 38 business enterprise, including a sole proprietorship, partnership, 39 limited liability company or corporation, that has reported at least 40 two-thirds of its federal gross income as income from farming, in at 41 least one of the past five preceding tax years, and who: 42 (i) farms in a county that has greater than ten percent rate of pover- 43 ty according to the latest U.S. Census Bureau's American Communities 44 Survey; 45 (ii) has been disproportionately impacted by low commodity prices or 46 faces the loss of farmland through development or suburban sprawl; and 47 (iii) meets any other qualifications as defined in regulation by the 48 office. 49 6. The office shall actively promote applicants that foster racial, 50 ethnic, and gender diversity in their workforce. 51 7. Licenses issued to minority and women-owned businesses or under the 52 social and economic equity plan shall not be transferable except to 53 qualified minority and women-owned businesses or social and economic 54 equity applicants and only upon prior written approval of the executive 55 director.S. 1509--A 143 A. 2009--A 1 8. The office shall collect demographic data on owners and employees 2 in the adult-use cannabis industry and shall annually publish such data. 3 § 85. Regulations. The executive director shall make regulations to 4 implement this article. 5 ARTICLE 5 6 HEMP CANNABIS 7 Section 90. Cannabinoid related hemp cannabis licensing. 8 91. Cannabinoid grower licenses. 9 92. Cannabinoid extractor license. 10 93. Cannabinoid license applications. 11 94. Information to be requested in applications for licenses. 12 95. Fees. 13 96. Selection criteria. 14 97. Limitations of licensure; duration. 15 98. License renewal. 16 99. Form of license. 17 100. Amendments to license and duty to update information 18 submitted for licensing. 19 101. Record keeping and tracking. 20 102. Inspections and ongoing requirements. 21 103. Packaging and labeling of hemp cannabis. 22 104. Provisions governing the growing and extracting of hemp 23 cannabis. 24 105. Laboratory testing. 25 106. Advertising. 26 107. Research. 27 108. Regulations. 28 § 90. Cannabinoid related hemp cannabis licensing. 1. Persons grow- 29 ing, processing, extracting, and/or manufacturing hemp cannabis or 30 producing hemp cannabis products distributed, sold or marketed for 31 cannabinoid content and used or intended for human or animal consumption 32 or use, shall be required to obtain the following license or licenses 33 from the office, depending upon the operation: 34 (a) cannabinoid grower license and/or; 35 (b) cannabinoid extractor license. 36 2. Notwithstanding subsection one of this section, those persons grow- 37 ing, processing or manufacturing food or food ingredients from hemp, 38 which food or food ingredients are generally recognized as safe, shall 39 be subject to regulation and/or licensing under the agriculture and 40 markets law. 41 § 91. Cannabinoid grower licenses. 1. A cannabinoid grower's license 42 authorizes the acquisition, possession, cultivation and sale of hemp 43 cannabis grown or used for its cannabinoid content on the licensed prem- 44 ises of the grower. 45 2. A person holding a cannabinoid grower's license shall not sell hemp 46 products marketed, distributed or sold for its cannabinoid content and 47 intended for human consumption or use without also being licensed as an 48 extractor pursuant to this article. 49 3. Persons growing industrial hemp pursuant to article twenty-nine of 50 the agriculture and markets law are not authorized to and shall not sell 51 hemp cannabis for human or animal consumption or use, other than as food 52 or a food ingredient that has been generally recognized as safe in 53 accordance with the U.S. food and drug administration or determined by 54 the state to be safe for human consumption as food or a food ingredient.S. 1509--A 144 A. 2009--A 1 4. A person licensed under article twenty-nine of the agriculture and 2 markets law as an industrial hemp grower may apply for a cannabinoid 3 grower's license provided that it can demonstrate to the office that its 4 cultivation of industrial hemp meets all the requirements for hemp 5 cannabis cultivated under a cannabinoid grower's license. 6 § 92. Cannabinoid extractor license. 1. A cannabinoid extractor 7 license authorizes the licensee's acquisition, possession, extraction 8 and manufacture of hemp from a licensed cannabinoid grower for the proc- 9 essing of hemp cannabis or the production of hemp cannabis products 10 marketed, distributed or sold for cannabinoid content and used or 11 intended for human or animal consumption or use. 12 2. No cannabinoid extractor licensee shall engage in any other busi- 13 ness on the licensed premises; except that nothing contained in this 14 chapter shall prevent a cannabinoid extractor licensee from also being 15 licensed as a cannabinoid grower on the same premises. 16 3. Notwithstanding subdivisions one and two of this section, nothing 17 shall prevent a cannabinoid extractor from manufacturing hemp products 18 not used or intended for human or animal consumption or use. 19 § 93. Cannabinoid license applications. 1. Persons shall apply for a 20 cannabinoid grower license and/or a cannabinoid extractor license by 21 submitting an application upon a form supplied by the office, providing 22 all the requested information, verified by the applicant or an author- 23 ized representative of the applicant. 24 2. A separate license shall be required for each facility at which 25 growing or extracting is conducted. 26 3. Each application shall remit with its application the fee for each 27 requested license. 28 § 94. Information to be requested in applications for licenses. 1. 29 The office shall have the authority to prescribe the manner and form in 30 which an application must be submitted to the office for licensure under 31 this article. 32 2. The executive director is authorized to adopt regulations, includ- 33 ing by emergency rule, establishing information which must be included 34 on an application for licensure under this article. Such information may 35 include, but is not limited to: information about the applicant's iden- 36 tity, including racial and ethnic diversity; ownership and investment 37 information, including the corporate structure; evidence of good moral 38 character, including the submission of fingerprints by the applicant to 39 the division of criminal justice services; information about the prem- 40 ises to be licensed; financial statements; and any other information 41 prescribed by in regulation. 42 3. All license applications shall be signed by the applicant (if an 43 individual), by a managing partner (if a limited liability corporation), 44 by an officer (if a corporation), or by all partners (if a partnership). 45 Each person signing such application shall verify it or affirm it as 46 true under the penalties of perjury. 47 4. All license or permit applications shall be accompanied by a check, 48 draft or other forms of payment as the office may require or authorize 49 in the amount required by this article for such license or permit. 50 5. If there be any change, after the filing of the application or the 51 granting of a license, in any of the facts required to be set forth in 52 such application, a supplemental statement giving notice of such change, 53 cost and source of money involved in the change, duly verified, shall be 54 filed with the office within ten days after such change. Failure to do 55 so shall, if willful and deliberate, be cause for revocation of the 56 license.S. 1509--A 145 A. 2009--A 1 6. In giving any notice, or taking any action in reference to a licen- 2 see of a licensed premises, the office may rely upon the information 3 furnished in such application and in any supplemental statement 4 connected therewith, and such information may be presumed to be correct, 5 and shall be binding upon a registered organization, licensee or 6 licensed premises as if correct. All information required to be 7 furnished in such application or supplemental statements shall be deemed 8 material in any prosecution for perjury, any proceeding to revoke, 9 cancel or suspend any license, and in the office's determination to 10 approve or deny the license. 11 7. The office may, in its discretion, waive the submission of any 12 category of information described in this section for any category of 13 license or permit, provided that it shall not be permitted to waive the 14 requirement for submission of any such category of information solely 15 for an individual applicant or applicants. 16 § 95. Fees. The office shall have the authority to charge licensees a 17 biennial license fee. Such fee may be based on the amount of hemp canna- 18 bis to be grown, processed or extracted by the licensee, the gross annu- 19 al receipts of the licensee for the previous license period, or any 20 other factors deemed appropriate by the office. 21 § 96. Selection criteria. 1. An applicant shall furnish evidence: 22 (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol 23 concentration that does not exceed a percentage of delta-9-tetrahydro- 24 cannabinol cannabis set by the executive director on a dry weight basis 25 of any part of the plant of the genus cannabis, or per volume or weight 26 of cannabis product, or the combined percent of delta-9-tetrahydrocanna- 27 binol and tetrahydrocannabinolic acid in any part of the plant of the 28 genus cannabis regardless of moisture content, for all hemp cannabis and 29 hemp derived products cultivated, processed or extracted by the appli- 30 cant; 31 (b) its ability to comply with all applicable state laws and regu- 32 lations, including, without limitation, the provisions of article four- 33 teen of the agriculture and markets law; 34 (c) that the applicant is ready, willing and able to properly carry on 35 the activities for which a license is sought; and 36 (d) that the applicant is in possession of or has the right to use 37 land, buildings and equipment sufficient to properly carry on the activ- 38 ity described in the application. 39 2. The office, in considering whether to grant the license applica- 40 tion, shall consider whether: 41 (a) it is in the public interest that such license be granted, taking 42 into consideration whether the number of licenses will be adequate or 43 excessive to reasonably serve demand; 44 (b) the applicant and its managing officers are of good moral charac- 45 ter and do not have an ownership or controlling interest in more 46 licenses or permits than allowed by this chapter; and 47 (c) the applicant satisfies any other conditions as determined by the 48 office. 49 3. If the executive director is not satisfied that the applicant 50 should be issued a license, the executive director shall notify the 51 applicant in writing of the specific reason or reasons for denial. 52 4. The executive director shall have authority and sole discretion to 53 determine the number of licenses issued pursuant to this article. 54 § 97. Limitations of licensure; duration. 1. No license pursuant to 55 this article may be issued to a person under the age of twenty-one 56 years.S. 1509--A 146 A. 2009--A 1 2. The office shall have the authority to limit, by canopy, plant 2 count or other means, the amount of hemp cannabis allowed to be culti- 3 vated, processed, extracted or sold by a licensee. 4 3. All licenses under this article shall expire two years after the 5 date of issue and be subject to any rules or limitations prescribed by 6 the executive director in regulation. 7 § 98. License renewal. 1. Each license, issued pursuant to this arti- 8 cle, may be renewed upon application therefor by the licensee and the 9 payment of the fee for such license as prescribed by this article. 10 2. In the case of applications for renewals, the office may dispense 11 with the requirements of such statements as it deems unnecessary in view 12 of those contained in the application made for the original license, but 13 in any event the submission of photographs of the licensed premises 14 shall be dispensed with, provided the applicant for such renewal shall 15 file a statement with the office to the effect that there has been no 16 alteration of such premises since the original license was issued. 17 3. The office may make such rules as may be necessary, not inconsist- 18 ent with this chapter, regarding applications for renewals of licenses 19 and permits and the time for making the same. 20 4. The office shall provide an application for renewal of a license 21 issued under this article not less than ninety days prior to the expira- 22 tion of the current license. 23 5. The office may only issue a renewal license upon receipt of the 24 prescribed renewal application and renewal fee from a licensee if, in 25 addition to the criteria in section ninety-four of this article, the 26 license's license is not under suspension and has not been revoked. 27 6. The office shall have the authority to charge applicants for licen- 28 sure under this article a non-refundable application fee. Such fee may 29 be based on the type of licensure sought, cultivation and/or production 30 volume, or any other factors deemed reasonable and appropriate by the 31 office to achieve the policy and purpose of this chapter. 32 § 99. Form of license. Licenses issued pursuant to this article shall 33 specify: 34 1. the name and address of the licensee; 35 2. the activities permitted by the license; 36 3. the land, buildings and facilities that may be used for the 37 licensed activities of the licensee; 38 4. a unique license number issued by the office to the licensee; and 39 5. such other information as the executive director shall deem neces- 40 sary to assure compliance with this chapter. 41 § 100. Amendments to license and duty to update information submitted 42 for licensing. 1. Upon application of a licensee to the office, a 43 license may be amended to allow the licensee to relocate within the 44 state, to add or delete licensed activities or facilities, or to amend 45 the ownership or organizational structure of the entity that is the 46 licensee. The fee for such amendment shall be two hundred fifty dollars. 47 2. In the event that any of the information provided by the applicant 48 changes either while the application is pending or after the license is 49 granted, within ten days of any such change, the applicant or licensee 50 shall submit to the office a verified statement setting forth the change 51 in circumstances of facts set forth in the application. Failure to do so 52 shall, if willful and deliberate, be cause for revocation of the 53 license. 54 3. A license shall become void by a change in ownership, substantial 55 corporate change or location without prior written approval of the exec- 56 utive director. The executive director may promulgate regulationsS. 1509--A 147 A. 2009--A 1 allowing for certain types of changes in ownership without the need for 2 prior written approval. 3 4. For purposes of this section, "substantial corporate change" shall 4 mean: 5 (a) for a corporation, a change of eighty percent or more of the offi- 6 cers and/or directors, or a transfer of eighty percent or more of stock 7 of such corporation, or an existing stockholder obtaining eighty percent 8 or more of the stock of such corporation; and 9 (b) for a limited liability company, a change of eighty percent or 10 more of the managing members of the company, or a transfer of eighty 11 percent or more of ownership interest in said company, or an existing 12 member obtaining a cumulative of eighty percent or more of the ownership 13 interest in said company. 14 § 101. Record keeping and tracking. 1. The executive director shall, 15 by regulation, require each licensee pursuant to this article to adopt 16 and maintain security, tracking, record keeping, record retention and 17 surveillance systems, relating to all hemp cannabis at every stage of 18 acquiring, possession, manufacture, transport, sale, or delivery, or 19 distribution by the licensee, subject to regulations of the executive 20 director. 21 2. Every licensee shall keep and maintain upon the licensed premises, 22 adequate books and records of all transactions involving the licensee 23 and sale of its products, which shall include all information required 24 by rules promulgated by the office. 25 3. Each sale shall be recorded separately on a numbered invoice, which 26 shall have printed thereon the number, the name of the licensee, the 27 address of the licensed premises, and the current license number. 28 4. Such books, records and invoices shall be kept for a period of five 29 years and shall be available for inspection by any authorized represen- 30 tative of the office. 31 § 102. Inspections and ongoing requirements. All licensees shall be 32 subject to reasonable inspection by the office, and a person who holds a 33 license must make himself or herself, or an agent thereof, available and 34 present for any inspection required by the office. The office shall make 35 reasonable accommodations so that ordinary business is not interrupted 36 and safety and security procedures are not compromised by the 37 inspection. 38 § 103. Packaging and labeling of hemp cannabis. 1. The office is 39 hereby authorized to promulgate rules and regulations governing the 40 packaging and labeling of hemp cannabis products, sold or possessed for 41 sale in New York state. 42 2. Such regulations shall include, but not be limited to, requiring 43 labels warning consumers of any potential impact on human health result- 44 ing from the consumption of hemp cannabis products that shall be affixed 45 to those products when sold, if such labels are deemed warranted by the 46 office. 47 3. Such rules and regulations shall establish methods and procedures 48 for determining, among other things, serving sizes for hemp cannabis 49 products, active cannabinoid concentration per serving size, and number 50 of servings per container. Such regulations shall also require a nutri- 51 tional fact panel that incorporates data regarding serving sizes and 52 potency thereof. 53 4. The packaging, sale, or possession by any licensee of any hemp 54 product intended for human or animal consumption or use not labeled or 55 offered in conformity with rules and regulations promulgated in accord-S. 1509--A 148 A. 2009--A 1 ance with this section shall be grounds for the imposition of a fine, 2 and/or the suspension, revocation or cancellation of a license. 3 § 104. Provisions governing the growing and extracting of hemp canna- 4 bis. 1. No licensed cannabinoid grower or extractor shall sell, or 5 agree to sell or deliver in the state any hemp cannabis products, as the 6 case may be, except in sealed containers containing quantities in 7 accordance with size standards pursuant to rules adopted by the office. 8 Such containers shall have affixed thereto such labels as may be 9 required by the rules of the office. 10 2. Licensed cannabinoid growers shall only use pesticides that are 11 registered by the New York state department of environmental conserva- 12 tion or that specifically meet the United States Environmental 13 Protection Agency registration exemption criteria for minimum risk 14 pesticides, and only in compliance with regulations, standards and 15 guidelines issued by the department of environmental conservation. 16 3. All hemp cannabis products shall be extracted and manufactured in 17 accordance with good manufacturing processes, pursuant to Part 111 of 18 Title 21 of the Code of Federal Regulations as may be modified by the 19 executive director in regulation. 20 4. The use or integration of alcohol or nicotine in hemp cannabis 21 products is strictly prohibited. 22 § 105. Laboratory testing. 1. Every cannabinoid extractor shall 23 contract with an independent laboratory to test the cannabis products 24 produced by the licensed extractor. The executive director, in consulta- 25 tion with the commissioner of health, shall approve the laboratory and 26 require that the laboratory report testing results in a manner deter- 27 mined by the executive director. The executive director is authorized to 28 issue regulations requiring the laboratory to perform certain tests and 29 services. 30 2. Cannabinoid extractors shall make laboratory test reports available 31 to persons holding a cannabinoid permit pursuant to article six of this 32 chapter for all cannabis products manufactured by the licensee. 33 3. On-site laboratory testing by licensees is permissible; however, 34 such testing shall not be certified by the office and does not exempt 35 the licensee from the requirements of quality assurance testing at a 36 testing laboratory pursuant to this section. 37 § 106. Advertising. The office shall promulgate rules and regulations 38 governing the advertising of hemp cannabis and any other related 39 products or services as determined by the executive director. 40 § 107. Research. 1. The office shall promote research and development 41 through public-private partnerships to bring new hemp cannabis and 42 industrial hemp derived products to market within the state. 43 2. The executive director may develop and carry out research programs 44 relating to industrial hemp and hemp cannabis. 45 § 108. Regulations. The executive director shall make regulations to 46 implement this article. 47 ARTICLE 6 48 GENERAL PROVISIONS 49 Section 125. General prohibitions and restrictions. 50 126. License to be confined to premises licensed; premises for 51 which no license shall be granted; transporting cannabis. 52 127. Protections for the use of cannabis; unlawful discrimi- 53 nations prohibited. 54 128. Registrations and licenses.S. 1509--A 149 A. 2009--A 1 129. Laboratory testing permit. 2 130. Special use permits. 3 131. Professional and medical record keeping. 4 132. County opt-out; municipal control and preemption. 5 133. Executive director to be necessary party to certain 6 proceedings. 7 134. Penalties for violation of this chapter. 8 135. Revocation of registrations, licenses and permits for 9 cause; procedure for revocation or cancellation. 10 136. Lawful actions pursuant to this chapter. 11 137. Review by courts. 12 138. Illicit cannabis. 13 139. Injunction for unlawful manufacture, sale or consumption of 14 cannabis. 15 140. Persons forbidden to traffic cannabis products; certain 16 officials not to be interested in manufacture or sale of 17 cannabis products. 18 141. Access to criminal history information through the division 19 of criminal justice services. 20 § 125. General prohibitions and restrictions. 1. No person shall 21 cultivate, process, or distribute for sale or sell at wholesale or 22 retail any cannabis, cannabis product, medical cannabis or hemp cannabis 23 product within the state without obtaining the appropriate registration, 24 license, or permit therefor required by this chapter. 25 2. No registered organization, licensee, or permittee shall sell, or 26 agree to sell or deliver in this state any cannabis or hemp cannabis for 27 the purposes of resale to any person who is not duly registered, 28 licensed or permitted pursuant to this chapter to sell such product, at 29 wholesale or retail, as the case may be, at the time of such agreement 30 and sale. 31 3. No registered organization, licensee, or permittee shall employ, or 32 permit to be employed, or shall allow to work, on any premises regis- 33 tered or licensed for retail sale hereunder, any person under the age of 34 eighteen years in any capacity where the duties of such person require 35 or permit such person to sell, dispense or handle cannabis or hemp 36 cannabis. 37 4. No registered organization, licensee, or permittee shall sell, 38 deliver or give away, or cause, permit or procure to be sold, delivered 39 or given away any cannabis, cannabis product, medical cannabis or hemp 40 cannabis on credit; except that a registered organization, licensee or 41 permittee may accept third party credit cards for the sale of any canna- 42 bis, cannabis product, medical cannabis or hemp cannabis for which it is 43 registered, licensed or permitted to dispense or sell to patients or 44 cannabis consumers. This includes, but is not limited to, any consign- 45 ment sale of any kind. 46 5. No registered organization, licensee, or permittee shall cease to 47 be operated as a bona fide or legitimate premises within the contem- 48 plation of the registration, license, or permit issued for such prem- 49 ises, as determined within the judgment of the office. 50 6. No registered organization, licensee, or permittee shall refuse, 51 nor any person holding a registration, license, or permit refuse, nor 52 any officer or director of any corporation or organization holding a 53 registration, license, or permit refuse, to appear and/or testify under 54 oath at an inquiry or hearing held by the office, with respect to any 55 matter bearing upon the registration, license, or permit, the conduct of 56 any people at the licensed premises, or bearing upon the character orS. 1509--A 150 A. 2009--A 1 fitness of such registrant, licensee, or permittee to continue to hold 2 any registration, license, or permit. Nor shall any of the above offer 3 false testimony under oath at such inquiry or hearing. 4 7. No registered organization, licensee, or permittee shall engage, 5 participate in, or aid or abet any violation or provision of this chap- 6 ter, or the rules or regulations of the office. 7 8. The proper conduct of registered, licensed, or permitted premises 8 is essential to the public interest. Failure of a registered organiza- 9 tion, licensee, or permittee to exercise adequate supervision over the 10 registered, licensed, or permitted location poses a substantial risk not 11 only to the objectives of this chapter but imperils the health, safety, 12 and welfare of the people of this state. It shall be the obligation of 13 each person registered, licensed, or permitted under this chapter to 14 ensure that a high degree of supervision is exercised over any and all 15 conduct at any registered, licensed, or permitted location at any and 16 all times in order to safeguard against abuses of the privilege of being 17 registered, licensed, or permitted, as well as other violations of law, 18 statute, rule, or regulation. Persons registered, licensed, or permitted 19 shall be held strictly accountable for any and all violations that occur 20 upon any registered, licensed, or permitted premises, and for any and 21 all violations committed by or permitted by any manager, agent or 22 employee of such registered, licensed, or permitted person. 23 9. It shall be unlawful for any person, partnership or corporation 24 operating a place for profit or pecuniary gain, with a capacity for the 25 assemblage of twenty or more persons to permit a person or persons to 26 come to the place of assembly for the purpose of cultivating, process- 27 ing, distributing, or retail distribution or sale of cannabis on said 28 premises. This includes, but is not limited, to, cannabis that is either 29 provided by the operator of the place of assembly, his agents, servants 30 or employees, or cannabis that is brought onto said premises by the 31 person or persons assembling at such place, unless an appropriate regis- 32 tration, license, or permit has first been obtained from the office of 33 cannabis management by the operator of said place of assembly. 34 10. As it is a privilege under the law to be registered, licensed, or 35 permitted to cultivate, process, distribute, traffic, or sell cannabis, 36 the office may impose any such further restrictions upon any registrant, 37 licensee, or permittee in particular instances as it deems necessary to 38 further state policy and best serve the public interest. A violation or 39 failure of any person registered, licensed, or permitted to comply with 40 any condition, stipulation, or agreement, upon which any registration, 41 license, or permit was issued or renewed by the office shall subject the 42 registrant, licensee, or permittee to suspension, cancellation, revoca- 43 tion, and/or civil penalties as determined by the office. 44 11. No adult-use cannabis or medical cannabis may be imported to, or 45 exported out of, New York state by a registered organization, licensee 46 or person holding a license and/or permit pursuant to this chapter, 47 until such time as it may become legal to do so under federal law. 48 Should it become legal to do so under federal law, the office is granted 49 the power to promulgate such rules and regulations as it deems necessary 50 to protect the public and the policy of the state. 51 12. No registered organization, licensee or any of its agents, serv- 52 ants or employees shall peddle any cannabis product, medical cannabis or 53 hemp cannabis from house to house by means of a truck or otherwise, 54 where the sale is consummated and delivery made concurrently at the 55 residence or place of business of a cannabis consumer. This subdivision 56 shall not prohibit the delivery by a registered organization to certi-S. 1509--A 151 A. 2009--A 1 fied patients or their designated caregivers, pursuant to article three 2 of this chapter. 3 13. No licensee shall employ any canvasser or solicitor for the 4 purpose of receiving an order from a certified patient, designated care- 5 giver or cannabis consumer for any cannabis product, medical cannabis or 6 hemp cannabis at the residence or place of business of such patient, 7 caregiver or consumer, nor shall any licensee receive or accept any 8 order, for the sale of any cannabis product, medical cannabis or hemp 9 cannabis which shall be solicited at the residence or place of business 10 of a patient, caregiver or consumer. This subdivision shall not prohibit 11 the solicitation by a distributor of an order from any licensee at the 12 licensed premises of such licensee. 13 14. No premises registered, licensed, or permitted by the office 14 shall: 15 (a) permit or allow any gambling on the premises; 16 (b) permit or allow the premises to become disorderly; 17 (c) permit or allow the use, by any person, of any fireworks or other 18 pyrotechnics on the premises; or 19 (d) permit or allow to appear as an entertainer, on any part of the 20 premises registered, licensed, or permitted, any person under the age of 21 eighteen years. 22 § 126. License to be confined to premises licensed; premises for which 23 no license shall be granted; transporting cannabis. 1. A registration, 24 license, or permit issued to any person, pursuant to this chapter, for 25 any registered, licensed, or permitted premises shall not be transfera- 26 ble to any other person, to any other location or premises, or to any 27 other building or part of the building containing the licensed premises 28 except in the discretion of the office. All privileges granted by any 29 registration, license, or permit shall be available only to the person 30 therein specified, and only for the premises licensed and no other 31 except if authorized by the office. Provided, however, that the 32 provisions of this section shall not be deemed to prohibit the amendment 33 of a registration or license as provided for in this chapter. A 34 violation of this section shall subject the registration, license, or 35 permit to revocation for cause. 36 2. Where a registration or license for premises has been revoked, the 37 office in its discretion may refuse to issue a registration, license, or 38 permit under this chapter, for a period of up to five years after such 39 revocation, for such premises or for any part of the building containing 40 such premises and connected therewith. 41 3. In determining whether to issue such a proscription against grant- 42 ing any registration, license, or permit for such five-year period, in 43 addition to any other factors deemed relevant to the office, the office 44 shall, in the case of a license revoked due to the illegal sale of 45 cannabis to a minor, determine whether the proposed subsequent licensee 46 has obtained such premises through an arm's length transaction, and, if 47 such transaction is not found to be an arm's length transaction, the 48 office shall deny the issuance of such license. 49 4. For purposes of this section, "arm's length transaction" shall mean 50 a sale of a fee of all undivided interests in real property, lease, 51 management agreement, or other agreement giving the applicant control 52 over the cannabis at the premises, or any part thereof, in the open 53 market, between an informed and willing buyer and seller where neither 54 is under any compulsion to participate in the transaction, unaffected by 55 any unusual conditions indicating a reasonable possibility that the sale 56 was made for the purpose of permitting the original licensee to avoidS. 1509--A 152 A. 2009--A 1 the effect of the revocation. The following sales shall be presumed not 2 to be arm's length transactions unless adequate documentation is 3 provided demonstrating that the sale, lease, management agreement, or 4 other agreement giving the applicant control over the cannabis at the 5 premises, was not conducted, in whole or in part, for the purpose of 6 permitting the original licensee to avoid the effect of the revocation: 7 (a) a sale between relatives; 8 (b) a sale between related companies or partners in a business; or 9 (c) a sale, lease, management agreement, or other agreement giving the 10 applicant control over the cannabis at the premises, affected by other 11 facts or circumstances that would indicate that the sale, lease, manage- 12 ment agreement, or other agreement giving the applicant control over the 13 cannabis at the premises, is entered into for the primary purpose of 14 permitting the original licensee to avoid the effect of the revocation. 15 5. No registered organization, licensee or permittee shall transport 16 cannabis products or medical cannabis except in vehicles owned and oper- 17 ated by such registered organization, licensee or permittee, or hired 18 and operated by such registered organization, licensee or permittee from 19 a trucking or transportation company permitted and registered with the 20 office. 21 6. No common carrier or person operating a transportation facility in 22 this state, other than the United States government, shall receive for 23 transportation or delivery within the state any cannabis products or 24 medical cannabis unless the shipment is accompanied by copy of a bill of 25 lading, or other document, showing the name and address of the consig- 26 nor, the name and address of the consignee, the date of the shipment, 27 and the quantity and kind of cannabis products or medical cannabis 28 contained therein. 29 § 127. Protections for the use of cannabis; unlawful discriminations 30 prohibited. 1. No person, registered organization, licensee or permit- 31 tee shall be subject to arrest, prosecution, or penalty in any manner, 32 or denied any right or privilege, including but not limited to civil 33 liability or disciplinary action by a business or occupational or 34 professional licensing board or office, solely for conduct permitted 35 under this chapter. For the avoidance of doubt, the appellate division 36 of the supreme court of the state of New York, and any disciplinary or 37 character and fitness committees established by them are occupational 38 and professional licensing boards within the meaning of this section. 39 State or local law enforcement agencies shall not cooperate with or 40 provide assistance to the government of the United States or any agency 41 thereof in enforcing the federal controlled substances act, 21 U.S.C. et 42 seq., solely for actions consistent with this chapter, except as pursu- 43 ant to a valid court order. 44 2. No school or landlord may refuse to enroll or lease to and may not 45 otherwise penalize a person solely for conduct allowed under this chap- 46 ter, except as exempted: 47 (a) if failing to do so would cause the school or landlord to lose a 48 monetary or licensing related benefit under federal law or regulations; 49 (b) if the institution has adopted a code of conduct prohibiting 50 cannabis use on the basis of religious belief; or 51 (c) if a property is registered with the New York smoke-free housing 52 registry, it is not required to permit the smoking of cannabis products 53 on its premises. 54 3. For the purposes of medical care, including organ transplants, a 55 certified patient's authorized use of medical cannabis must be consid- 56 ered the equivalent of the use of any other medication under the direc-S. 1509--A 153 A. 2009--A 1 tion of a practitioner and does not constitute the use of an illicit 2 substance or otherwise disqualify a registered qualifying patient from 3 medical care. 4 4. Unless an employer establishes that the lawful use of cannabis has 5 impaired the employee's ability to perform the employee's job responsi- 6 bilities, it shall be unlawful to take any adverse employment action 7 against an employee based on conduct allowed under this chapter. 8 5. For the purposes of this section, an employer may consider an 9 employee's ability to perform the employee's job responsibilities to be 10 impaired when the employee manifests specific articulable symptoms while 11 working that decrease or lessen the employee's performance of the duties 12 or tasks of the employee's job position. 13 6. Nothing in this section shall restrict an employer's ability to 14 prohibit or take adverse employment action for the possession or use of 15 intoxicating substances during work hours, or require an employer to 16 commit any act that would cause the employer to be in violation of 17 federal law, or that would result in the loss of a federal contract or 18 federal funding. 19 7. As used in this section, "adverse employment action" means refusing 20 to hire or employ, barring or discharging from employment, requiring a 21 person to retire from employment, or discriminating against in compen- 22 sation or in terms, conditions, or privileges of employment. 23 8. A person currently under parole, probation or other state super- 24 vision, or released on bail awaiting trial may not be punished or other- 25 wise penalized for conduct allowed under this chapter. 26 § 128. Registrations and licenses. 1. No registration or license 27 shall be transferable or assignable except that notwithstanding any 28 other provision of law, the registration or license of a sole proprietor 29 converting to corporate form, where such proprietor becomes the sole 30 stockholder and only officer and director of such new corporation, may 31 be transferred to the subject corporation if all requirements of this 32 chapter remain the same with respect to such registration or license as 33 transferred and, further, the registered organization or licensee shall 34 transmit to the office, within ten days of the transfer of license 35 allowable under this subdivision, on a form prescribed by the office, 36 notification of the transfer of such license. 37 2. No registration or license shall be pledged or deposited as collat- 38 eral security for any loan or upon any other condition; and any such 39 pledge or deposit, and any contract providing therefor, shall be void. 40 3. Licenses issued under this chapter shall contain, in addition to 41 any further information or material to be prescribed by the rules of the 42 office, the following information: 43 (a) name of the person to whom the license is issued; 44 (b) kind of license and what kind of traffic in cannabis is thereby 45 permitted; 46 (c) description by street and number, or otherwise, of licensed prem- 47 ises; and 48 (d) a statement in substance that such license shall not be deemed a 49 property or vested right, and that it may be revoked at any time pursu- 50 ant to law. 51 § 129. Laboratory testing permit. 1. The executive director shall 52 approve and permit one or more independent cannabis testing laboratories 53 to test medical cannabis, adult-use cannabis and/or hemp cannabis. 54 2. To be permitted as an independent cannabis laboratory, a laboratory 55 must apply to the office, on a form and in a manner prescribed by theS. 1509--A 154 A. 2009--A 1 office, and must demonstrate the following to the satisfaction of the 2 executive director: 3 (a) the owners and directors of the laboratory are of good moral char- 4 acter; 5 (b) the laboratory and its staff has the skills, resources and exper- 6 tise needed to accurately and consistently perform all of the testing 7 required for adult-use cannabis, medical cannabis and/or hemp cannabis; 8 (c) the laboratory has in place and will maintain adequate policies, 9 procedures, and facility security to ensure proper: collection, label- 10 ing, accessioning, preparation, analysis, result reporting, disposal and 11 storage of adult-use cannabis, medical cannabis and/or hemp cannabis; 12 (d) the laboratory is physically located in New York state; 13 (e) the laboratory has been approved by the department of health 14 pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu- 15 lations, pertaining to laboratories performing environmental analysis; 16 and 17 (f) the laboratory meets any and all requirements prescribed by this 18 chapter and by the executive director in regulation. 19 3. The owner of a laboratory testing permit under this section shall 20 not hold a registration or license in any category of this chapter and 21 shall not have any direct or indirect ownership interest in such regis- 22 tered organization or licensee. No board member, officer, manager, 23 owner, partner, principal stakeholder or member of a registered organ- 24 ization or licensee under this chapter, or such person's immediate fami- 25 ly member, shall have an interest or voting rights in any laboratory 26 testing permittee. 27 4. The executive director shall require that the permitted laboratory 28 report testing results to the office in a manner, form and timeframe as 29 determined by the executive director. 30 5. The executive director is authorized to promulgate regulations, 31 requiring permitted laboratories to perform certain tests and services. 32 § 130. Special Use Permits. The office is hereby authorized to issue 33 the following kinds of permits for carrying on activities consistent 34 with the policy and purpose of this chapter with respect to cannabis. 35 The executive director has the authority to set fees for all permits 36 issued pursuant to this section, to establish the periods during which 37 permits are authorized, and to make rules and regulations, including 38 emergency regulations, to implement this section. 39 1. Industrial cannabis permit - to purchase cannabis for use in the 40 manufacture and sale of any of the following, when such cannabis is not 41 otherwise suitable for consumption purposes, namely: (a) apparel, ener- 42 gy, paper, and tools; (b) scientific, chemical, mechanical and indus- 43 trial products; or (c) any other industrial use as determined by the 44 executive director in regulation. 45 2. Nursery permit - to produce clones, immature plants, seeds, and 46 other agricultural products used specifically for the planting, propa- 47 gation, and cultivation of cannabis, and to sell such to licensed 48 adult-use cultivators, registered organizations, and certified patients 49 or their designated caregivers. 50 3. Solicitor's permit - to offer for sale or to solicit orders for the 51 sale of any cannabis products, medical cannabis and/or hemp cannabis, as 52 a representative of a registered organization or licensee under this 53 chapter. 54 4. Broker's permit - to act as a broker in the purchase and sale of 55 cannabis products, medical cannabis and/or hemp cannabis for a fee or 56 commission, for or on behalf of a person authorized to cultivate, proc-S. 1509--A 155 A. 2009--A 1 ess, distribute or dispense cannabis products, medical cannabis or hemp 2 cannabis within the state. 3 5. Trucking permit - to allow for the trucking or transportation of 4 cannabis products, medical cannabis or hemp cannabis by a person other 5 than a registered organization or licensee under this chapter. 6 6. Warehouse permit - to allow for the storage of cannabis, cannabis 7 products, medical cannabis or hemp cannabis at a location not otherwise 8 registered or licensed by the office. 9 7. Delivery permit - to authorize licensed adult-use cannabis dispen- 10 saries to deliver adult-use cannabis and cannabis products directly to 11 cannabis consumers. 12 8. Cannabinoid permit - to sell cannabinoid products derived from hemp 13 cannabis for off-premises consumption. 14 9. Temporary retail cannabis permit - to authorize the retail sale of 15 adult-use cannabis to cannabis consumers, for a limited purpose or dura- 16 tion. 17 10. Caterer's permit - to authorize the service of cannabis products 18 at a function, occasion or event in a hotel, restaurant, club, ballroom 19 or other premises, which shall authorize within the hours fixed by the 20 office, during which cannabis may lawfully be sold or served on the 21 premises in which such function, occasion or event is held. 22 11. Packaging permit - to authorize a licensed cannabis distributor to 23 sort, package, label and bundle cannabis products from one or more 24 registered organizations or licensed processors, on the premises of the 25 licensed cannabis distributor or at a warehouse for which a permit has 26 been issued under this section. 27 12. Miscellaneous permits - to purchase, receive or sell cannabis, 28 cannabis products or medical cannabis, or receipts, certificates, 29 contracts or other documents pertaining to cannabis, cannabis products, 30 or medical cannabis, in cases not expressly provided for by this chap- 31 ter, when in the judgment of the office it would be appropriate and 32 consistent with the policy and purpose of this chapter. 33 § 131. Professional and medical record keeping. Any professional 34 providing services in connection with a licensed or potentially licensed 35 business under this chapter, or in connection with other conduct permit- 36 ted under this chapter, and any medical professional providing medical 37 care to a patient, other than a certified patient, may agree with their 38 client or patient to maintain no record, or any reduced level of record 39 keeping that professional and client or patient may agree. In case of 40 such agreement, the professional's only obligation shall be to keep such 41 records as agreed, and to keep a record of the agreement. Such reduced 42 record keeping is conduct permitted under this chapter. 43 § 132. County opt-out; municipal control and preemption. 1. The 44 provisions of article four of this chapter, authorizing the cultivation, 45 processing, distribution and sale of adult-use cannabis to cannabis 46 consumers, shall not be applicable to a county, or city having a popu- 47 lation of one-hundred thousand or more residents, which adopts a local 48 law, ordinance or resolution by a majority vote of its governing body to 49 completely prohibit the establishment or operation of one or more types 50 of licenses contained in article four of this chapter, within the juris- 51 diction of the county or city. 52 2. Except as provided for in subdivision one of this section, all 53 county, town, city and village municipalities are hereby preempted from 54 adopting any rule, ordinance, regulation or prohibition pertaining to 55 the operation or licensure of registered organizations, adult-use canna- 56 bis licenses or hemp licenses. However, counties and, municipalities mayS. 1509--A 156 A. 2009--A 1 pass ordinances or regulations governing the time, place and manner of 2 licensed adult-use cannabis retail dispensaries, provided such ordinance 3 or regulation does not make the operation of such licensed retail 4 dispensaries unreasonably impracticable as determined by the executive 5 director in his or her sole discretion. 6 § 133. Executive director to be necessary party to certain 7 proceedings. The executive director shall be made a party to all 8 actions and proceedings affecting in any manner the ability of a regis- 9 tered organization or licensee to operate within a municipality, or the 10 result of any vote thereupon; to all actions and proceedings relative to 11 issuance or revocation of registrations, licenses or permits; to all 12 injunction proceedings, and to all other civil actions or proceedings 13 which in any manner affect the enjoyment of the privileges or the opera- 14 tion of the restrictions provided for in this chapter. 15 § 134. Penalties for violation of this chapter. 1. Any person who 16 cultivates for sale or sells cannabis, cannabis products, medical canna- 17 bis or hemp cannabis without having an appropriate registration, license 18 or permit therefor, or whose registration, license, or permit has been 19 revoked, surrendered or cancelled, shall be guilty of a misdemeanor, and 20 upon first conviction thereof shall be punished by a fine not more than 21 five thousand dollars per instance or by imprisonment in a county jail 22 or penitentiary for a term of not less than thirty days nor more than 23 one year or both and upon second conviction thereof shall be punished by 24 a fine not less than ten thousand dollars or by imprisonment in a county 25 jail or penitentiary for a term of not less than thirty days nor more 26 than one year or both and upon all subsequent convictions thereof shall 27 be punished by a fine not less twenty-five thousand dollars or peniten- 28 tiary for a term of not less than thirty days nor more than one year or 29 both provided, however, that in default of payment of any fine imposed, 30 such person shall be imprisoned in a county jail or penitentiary for a 31 term of not less than thirty days. 32 2. Any registered organization or licensee, whose registration or 33 license has been suspended pursuant to the provisions of this chapter, 34 who sells cannabis, cannabis products, medical cannabis or hemp cannabis 35 during the suspension period, shall be guilty of a misdemeanor, and upon 36 conviction thereof shall be punished by a fine of not more than five 37 thousand dollars per instance or by imprisonment in a county jail or 38 penitentiary for a term of not more than six months, or by both such 39 fine and imprisonment. 40 3. Any person who shall make any false statement in the application 41 for a registration, license or a permit under this chapter shall be 42 guilty of a misdemeanor, and upon conviction thereof shall be punishable 43 by a fine of not more than five thousand dollars, or by imprisonment in 44 a county jail or penitentiary for a term of not more than six months or 45 both. 46 4. Any violation by any person of any provision of this chapter for 47 which no punishment or penalty is otherwise provided shall be a misde- 48 meanor. 49 § 135. Revocation of registrations, licenses and permits for cause; 50 procedure for revocation or cancellation. 1. Any registration, license 51 or permit issued pursuant to this chapter may be revoked, cancelled, 52 suspended and/or subjected to the imposition of a civil penalty for 53 cause, and must be revoked for the following causes: 54 (a) conviction of the registered organization, licensee, permittee or 55 his or her agent or employee for selling any illegal cannabis on the 56 premises registered, licensed or permitted; orS. 1509--A 157 A. 2009--A 1 (b) for transferring, assigning or hypothecating a registration, 2 license or permit without prior written approval of the office. 3 2. Notwithstanding the issuance of a registration, license or permit 4 by way of renewal, the office may revoke, cancel or suspend such regis- 5 tration, license or permit and/or may impose a civil penalty against any 6 holder of such registration, license or permit, as prescribed by this 7 section, for causes or violations occurring during the license period 8 immediately preceding the issuance of such registration, license or 9 permit. 10 3. (a) As used in this section, the term "for cause" shall also 11 include the existence of a sustained and continuing pattern of miscon- 12 duct, failure to adequately prevent diversion or disorder on or about 13 the registered, licensed or permitted premises, or in the area in front 14 of or adjacent to the registered or licensed premises, or in any parking 15 lot provided by the registered organization or licensee for use by 16 registered organization or licensee's patrons, which, in the judgment of 17 the office, adversely affects or tends to affect the protection, health, 18 welfare, safety, or repose of the inhabitants of the area in which the 19 registered or licensed premises is located, or results in the licensed 20 premises becoming a focal point for police attention, or is offensive to 21 public decency. 22 (b) (i) As used in this section, the term "for cause" shall also 23 include deliberately misleading the authority: 24 (A) as to the nature and character of the business to be operated by 25 the registered organization, licensee or permittee; or 26 (B) by substantially altering the nature or character of such business 27 during the registration or licensing period without seeking appropriate 28 approvals from the office. 29 (ii) As used in this subdivision, the term "substantially altering the 30 nature or character" of such business shall mean any significant alter- 31 ation in the scope of business activities conducted by a registered 32 organization, licensee or permittee that would require obtaining an 33 alternate form of registration, license or permit. 34 4. As used in this chapter, the existence of a sustained and continu- 35 ing pattern of misconduct, failure to adequately prevent diversion or 36 disorder on or about the premises may be presumed upon the sixth inci- 37 dent reported to the office by a law enforcement agency, or discovered 38 by the office during the course of any investigation, of misconduct, 39 diversion or disorder on or about the premises or related to the opera- 40 tion of the premises, absent clear and convincing evidence of either 41 fraudulent intent on the part of any complainant or a factual error with 42 respect to the content of any report concerning such complaint relied 43 upon by the office. 44 5. Notwithstanding any other provision of this chapter to the contra- 45 ry, a suspension imposed under this section against the holder of a 46 registration issued pursuant to article three of this chapter, shall 47 only suspend the licensed activities related to the type of cannabis, 48 medical cannabis or adult-use cannabis involved in the violation result- 49 ing in the suspension. 50 6. Any registration, license or permit issued by the office pursuant 51 to this chapter may be revoked, cancelled or suspended and/or be 52 subjected to the imposition of a monetary penalty in the manner 53 prescribed by this section and by the executive director in regulation. 54 7. The office may on its own initiative, or on complaint of any 55 person, institute proceedings to revoke, cancel or suspend any adult-use 56 cannabis retail dispensary license or adult-use cannabis on-siteS. 1509--A 158 A. 2009--A 1 consumption license and may impose a civil penalty against the licensee 2 after a hearing at which the licensee shall be given an opportunity to 3 be heard. Such hearing shall be held in such manner and upon such notice 4 as may be prescribed in regulation by the executive director. 5 8. All other registrations, licenses or permits issued under this 6 chapter may be revoked, cancelled, suspended and/or made subject to the 7 imposition of a civil penalty by the office after a hearing to be held 8 in such manner and upon such notice as may be prescribed in regulation 9 by the executive director. 10 9. Where a licensee or permittee is convicted of two or more qualify- 11 ing offenses within a five-year period, the office, upon receipt of 12 notification of such second or subsequent conviction, shall, in addition 13 to any other sanction or civil or criminal penalty imposed pursuant to 14 this chapter, impose on such licensee a civil penalty not to exceed ten 15 thousand dollars. For purposes of this subdivision, a qualifying 16 offense shall mean the unlawful sale of cannabis to a person under the 17 age of twenty-one. For purposes of this subdivision, a conviction of a 18 licensee or an employee or agent of such licensee shall constitute a 19 conviction of such licensee. 20 § 136. Lawful actions pursuant to this chapter. 1. Contracts related 21 to the operation of registered organizations, licenses and permits under 22 this chapter shall be lawful and shall not be deemed unenforceable on 23 the basis that the actions permitted pursuant to the registration, 24 license or permit are prohibited by federal law. 25 2. The following actions are not unlawful as provided under this chap- 26 ter, shall not be an offense under any state or local law, and shall not 27 result in any civil fine, seizure, or forfeiture of assets against any 28 person acting in accordance with this chapter: 29 (a) Actions of a registered organization, licensee, or permittee, or 30 the employees or agents of such registered organization, licensee or 31 permittee, as permitted by this chapter and consistent with rules and 32 regulations of the office, pursuant to a valid registration, license or 33 permit issued by the office. 34 (b) Actions of those who allow property to be used by a registered 35 organization, licensee, or permittee, or the employees or agents of such 36 registered organization, licensee or permittee, as permitted by this 37 chapter and consistent with rules and regulations of the office, pursu- 38 ant to a valid registration, license or permit issued by the office. 39 (c) Actions of any person or entity, their employees, or their agents 40 providing a service to a registered organization, licensee, permittee or 41 a potential registered organization, licensee, or permittee, as permit- 42 ted by this chapter and consistent with rules and regulations of the 43 office, relating to the formation of a business. 44 (d) The purchase, possession, or consumption of cannabis, medical 45 cannabis and hemp, as permitted by this chapter and consistent with 46 rules and regulations of the office, obtained from a validly registered, 47 licensed or permitted retailer. 48 § 137. Review by courts. 1. The following actions by the office, and 49 only the following actions by the office, shall be subject to review by 50 the supreme court in the manner provided in article seventy-eight of the 51 civil practice law and rules: 52 (a) Refusal by the office to issue a registration, license, or a 53 permit. 54 (b) The revocation, cancellation or suspension of a registration, 55 license, or permit by the office.S. 1509--A 159 A. 2009--A 1 (c) The failure or refusal by the office to render a decision upon any 2 application or hearing submitted to or held by the office within sixty 3 days after such submission or hearing. 4 (d) The transfer by the office of a registration, license, or permit 5 to any other entity or premises, or the failure or refusal by the office 6 to approve such a transfer. 7 (e) Refusal to approve alteration of premises. 8 (f) Refusal to approve a corporate change in stockholders, stockhold- 9 ings, officers or directors. 10 2. No stay shall be granted pending the determination of such matter 11 except on notice to the office and only for a period of less than thirty 12 days. In no instance shall a stay be granted where the office has issued 13 a summary suspension of a registration, license, or permit for the 14 protection of the public health, safety, and welfare. 15 § 138. Illicit cannabis. 1. "Illicit cannabis" means and includes any 16 cannabis product, medical cannabis or hemp cannabis owned, cultivated, 17 distributed, bought, sold, packaged, rectified, blended, treated, forti- 18 fied, mixed, processed, warehoused, possessed or transported, or on 19 which any tax required to have been paid under any applicable state law 20 has not been paid. 21 2. Any person who shall knowingly possess or have under his or her 22 control any illicit cannabis is guilty of a misdemeanor. 23 3. Any person who shall knowingly barter or exchange with, or sell, 24 give or offer to sell or to give another any illicit cannabis is guilty 25 of a misdemeanor. 26 4. Any person who shall possess or have under his or her control or 27 transport any illicit cannabis with intent to barter or exchange with, 28 or to sell or give to another the same or any part thereof is guilty of 29 a misdemeanor. Such intent is presumptively established by proof that 30 the person knowingly possessed or had under his or her control one or 31 more ounces of illicit cannabis. This presumption may be rebutted. 32 5. Any person who, being the owner, lessee, or occupant of any room, 33 shed, tenement, booth or building, float or vessel, or part thereof, 34 knowingly permits the same to be used for the cultivation, processing, 35 distribution, purchase, sale, warehousing, transportation, or storage of 36 any illicit cannabis, is guilty of a misdemeanor. 37 § 139. Injunction for unlawful manufacturing, sale or consumption of 38 cannabis. 1. If any person shall engage or participate or be about to 39 engage or participate in the cultivation, production, distribution, 40 traffic, or sale of cannabis products, medical cannabis or hemp cannabis 41 in this state without obtaining the appropriate registration, license, 42 or permit therefor, or shall traffic in cannabis products, medical 43 cannabis or hemp cannabis contrary to any provision of this chapter, or 44 otherwise unlawfully, or shall traffic in illegal cannabis products, 45 medical cannabis or hemp cannabis, or, operating a place for profit or 46 pecuniary gain, with a capacity for the assemblage of twenty or more 47 persons, shall permit a person or persons to come to such place of 48 assembly for the purpose of consuming cannabis products without having 49 the appropriate license or permit therefor, the office may present a 50 verified petition or complaint to a justice of the supreme court at a 51 special term of the supreme court of the judicial district in which such 52 city, village or town is situated, for an order enjoining such person 53 engaging or participating in such activity or from carrying on such 54 business. Such petition or complaint shall state the facts upon which 55 such application is based. Upon the presentation of the petition or 56 complaint, the justice or court may grant an order temporarily restrain-S. 1509--A 160 A. 2009--A 1 ing any person from continuing to engage in conduct as specified in the 2 petition or complaint, and shall grant an order requiring such person to 3 appear before such justice or court at or before a special term of the 4 supreme court in such judicial district on the day specified therein, 5 not more than ten days after the granting thereof, to show cause why 6 such person should not be permanently enjoined from engaging or partic- 7 ipating in such activity or from carrying on such business, or why such 8 person should not be enjoined from carrying on such business contrary to 9 the provisions of this chapter. A copy of such petition or complaint and 10 order shall be served upon the person, in the manner directed by such 11 order, not less than three days before the return day thereof. On the 12 day specified in such order, the justice or court before whom the same 13 is returnable shall hear the proofs of the parties and may, if deemed 14 necessary or proper, take testimony in relation to the allegations of 15 the petition or complaint. If the justice or court is satisfied that 16 such person is about to engage or participate in the unlawful traffic in 17 cannabis, medical cannabis or hemp cannabis or has unlawfully culti- 18 vated, processed, or sold cannabis products, medical cannabis or hemp 19 cannabis without having obtained a registration or license or contrary 20 to the provisions of this chapter, or has trafficked in illegal canna- 21 bis, or, is operating or is about to operate such place for profit or 22 pecuniary gain, with such capacity, and has permitted or is about to 23 permit a person or persons to come to such place of assembly for the 24 purpose of consuming cannabis products without having such appropriate 25 license, an order shall be granted enjoining such person from thereafter 26 engaging or participating in or carrying on such activity or business. 27 If, after the entry of such an order in the county clerk's office of the 28 county in which the principal place of business of the corporation or 29 partnership is located, or in which the individual so enjoined resides 30 or conducts such business, and the service of a copy thereof upon such 31 person, or such substituted service as the court may direct, such 32 person, partnership or corporation shall, in violation of such order, 33 cultivate, process, distribute or sell cannabis products, medical canna- 34 bis or hemp cannabis, or illegal cannabis products, medical cannabis or 35 hemp cannabis, or permit a person or persons to come to such place of 36 assembly for the purpose of consuming cannabis products, such activity 37 shall be deemed a contempt of court and be punishable in the manner 38 provided by the judiciary law, and, in addition to any such punishment, 39 the justice or court before whom or which the petition or complaint is 40 heard, may, in his or its discretion, order the seizure and forfeiture 41 of any cannabis products and any fixtures, equipment and supplies used 42 in the operation or promotion of such illegal activity and such property 43 shall be subject to forfeiture pursuant to law. Costs upon the applica- 44 tion for such injunction may be awarded in favor of and against the 45 parties thereto in such sums as in the discretion of the justice or 46 court before whom or which the petition or complaint is heard may seem 47 proper. 48 2. The owner, lessor and lessee of a building, erection or place where 49 cannabis products, medical cannabis or hemp cannabis is unlawfully 50 cultivated, processed, distributed, sold, consumed or permitted to be 51 unlawfully cultivated, processed, distributed, sold or consumed may be 52 made a respondent or defendant in the proceeding or action. 53 § 140. Persons forbidden to traffic cannabis; certain officials not to 54 be interested in manufacture or sale of cannabis products. 1. The 55 following are forbidden to traffic in cannabis:S. 1509--A 161 A. 2009--A 1 (a) Except as provided in subdivision one-a of this section, a person 2 who has been convicted of a felony, unless subsequent to such conviction 3 such person shall have received an executive pardon therefor removing 4 this disability, a certificate of good conduct granted by the department 5 of corrections and community supervision, or a certificate of relief 6 from disabilities granted by the department of corrections and community 7 supervision or a court of this state pursuant to the provisions of arti- 8 cle twenty-three of the correction law to remove the disability under 9 this section because of such conviction; 10 (b) A person under the age of twenty-one years; 11 (c) A person who is not a citizen of the United States or an alien 12 lawfully admitted for permanent residence in the United States; 13 (d) A partnership or a corporation, unless each member of the partner- 14 ship, or each of the principal officers and directors of the corpo- 15 ration, is a citizen of the United States or an alien lawfully admitted 16 for permanent residence in the United States, not less than twenty-one 17 years of age, and has not been convicted of any felony, or if so 18 convicted has received, subsequent to such conviction, an executive 19 pardon therefor removing this disability a certificate of good conduct 20 granted by the department of corrections and community supervision, or a 21 certificate of relief from disabilities granted by the department of 22 corrections and community supervision or a court of this state pursuant 23 to the provisions of article twenty-three of the correction law to 24 remove the disability under this section because of such conviction; 25 provided however that a corporation which otherwise conforms to the 26 requirements of this section and chapter may be licensed if each of its 27 principal officers and more than one-half of its directors are citizens 28 of the United States or aliens lawfully admitted for permanent residence 29 in the United States; and provided further that a corporation organized 30 under the not-for-profit corporation law or the education law which 31 otherwise conforms to the requirements of this section and chapter may 32 be licensed if each of its principal officers and more than one-half of 33 its directors are not less than twenty-one years of age and none of its 34 directors are less than eighteen years of age; and provided further that 35 a corporation organized under the not-for-profit corporation law or the 36 education law and located on the premises of a college as defined by 37 section two of the education law which otherwise conforms to the 38 requirements of this section and chapter may be licensed if each of its 39 principal officers and each of its directors are not less than eighteen 40 years of age; 41 (e) A person who shall have had any registration or license issued 42 under this chapter revoked for cause, until the expiration of two years 43 from the date of such revocation; 44 (f) A person not registered or licensed under the provisions of this 45 chapter, who has been convicted of a violation of this chapter, until 46 the expiration of two years from the date of such conviction; or 47 (g) A corporation or partnership, if any officer and director or any 48 partner, while not licensed under the provisions of this chapter, has 49 been convicted of a violation of this chapter, or has had a registration 50 or license issued under this chapter revoked for cause, until the expi- 51 ration of two years from the date of such conviction or revocation. 52 1-a. Notwithstanding the provision of subdivision one of this section, 53 a corporation holding a registration or license to traffic cannabis 54 products or medical cannabis shall not, upon conviction of a felony be 55 automatically forbidden to traffic in cannabis products or medical 56 cannabis, but the application for a registered organization or licenseS. 1509--A 162 A. 2009--A 1 by such a corporation shall be subject to denial, and the registration 2 or license of such a corporation shall be subject to revocation or 3 suspension by the office pursuant, consistent with the provisions of 4 article twenty-three-A of the correction law. For any felony conviction 5 by a court other than a court of this state, the office may request the 6 department of corrections and community supervision to investigate and 7 review the facts and circumstances concerning such a conviction, and 8 such department shall, if so requested, submit its findings to the 9 office as to whether the corporation has conducted itself in a manner 10 such that discretionary review by the office would not be inconsistent 11 with the public interest. The department of corrections and community 12 supervision may charge the registered organization, licensee or appli- 13 cant a fee equivalent to the expenses of an appropriate investigation 14 under this subdivision. For any conviction rendered by a court of this 15 state, the office may request the corporation, if the corporation is 16 eligible for a certificate of relief from disabilities, to seek such a 17 certificate from the court which rendered the conviction and to submit 18 such a certificate as part of the office's discretionary review process. 19 2. Except as may otherwise be provided for in regulation, it shall be 20 unlawful for any police commissioner, police inspector, captain, 21 sergeant, roundsman, patrolman or other police official or subordinate 22 of any police department in the state, to be either directly or indi- 23 rectly interested in the cultivation, processing, distribution, or sale 24 of cannabis products or to offer for sale, or recommend to any regis- 25 tered organization or licensee any cannabis products. A person may not 26 be denied any registration or license granted under the provisions of 27 this chapter solely on the grounds of being the spouse of a public serv- 28 ant described in this section. The solicitation or recommendation made 29 to any registered organization or licensee, to purchase any cannabis 30 products by any police official or subordinate as hereinabove described, 31 shall be presumptive evidence of the interest of such official or subor- 32 dinate in the cultivation, processing, distribution, or sale of cannabis 33 products. 34 3. No elective village officer shall be subject to the limitations set 35 forth in subdivision two of this section unless such elective village 36 officer shall be assigned duties directly relating to the operation or 37 management of the police department. 38 § 141. Access to criminal history information through the division of 39 criminal justice services. In connection with the administration of 40 this chapter, the executive director is authorized to request, receive 41 and review criminal history information through the division of criminal 42 justice services with respect to any person seeking a registration, 43 license, permit or authorization to cultivate, process, distribute or 44 sell medical cannabis, adult use cannabis or hemp cannabis. At the exec- 45 utive director's request, each person, member, principal and/or officer 46 of the applicant shall submit to the office his or her fingerprints in 47 such form and in such manner as specified by the division, for the 48 purpose of conducting a criminal history search and returning a report 49 thereon in accordance with the procedures and requirements established 50 by the division pursuant to the provisions of article thirty-five of the 51 executive law, which shall include the payment of the prescribed proc- 52 essing fees for the cost of the division's full search and retain proce- 53 dures and a national criminal history record check. The executive direc- 54 tor, or his or her designee, shall submit such fingerprints and the 55 processing fee to the division. The division shall forward to the execu- 56 tive director a report with respect to the applicant's previous criminalS. 1509--A 163 A. 2009--A 1 history, if any, or a statement that the applicant has no previous crim- 2 inal history according to its files. Fingerprints submitted to the divi- 3 sion pursuant to this subdivision may also be submitted to the federal 4 bureau of investigation for a national criminal history record check. If 5 additional copies of fingerprints are required, the applicant shall 6 furnish them upon request. 7 § 3. Intentionally omitted. 8 § 4. Section 3302 of the public health law, as added by chapter 878 of 9 the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and 10 subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24, 11 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998, 12 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39 13 and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of 14 subdivision 20, the opening paragraph of subdivision 22 and subdivision 15 29 as amended by chapter 163 of the laws of 1973, subdivision 31 as 16 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi- 17 vision 41 as added by section 6 of part A of chapter 447 of the laws of 18 2012, and subdivisions 42 and 43 as added by section 13 of part D of 19 chapter 60 of the laws of 2014, is amended to read as follows: 20 § 3302. Definitions of terms of general use in this article. Except 21 where different meanings are expressly specified in subsequent 22 provisions of this article, the following terms have the following mean- 23 ings: 24 1. "Addict" means a person who habitually uses a controlled substance 25 for a non-legitimate or unlawful use, and who by reason of such use is 26 dependent thereon. 27 2. "Administer" means the direct application of a controlled 28 substance, whether by injection, inhalation, ingestion, or any other 29 means, to the body of a patient or research subject. 30 3. "Agent" means an authorized person who acts on behalf of or at the 31 direction of a manufacturer, distributor, or dispenser. No person may be 32 authorized to so act if under title VIII of the education law such 33 person would not be permitted to engage in such conduct. It does not 34 include a common or contract carrier, public warehouseman, or employee 35 of the carrier or warehouseman when acting in the usual and lawful 36 course of the carrier's or warehouseman's business. 37 4. ["Concentrated Cannabis" means38(a) the separated resin, whether crude or purified, obtained from a39plant of the genus Cannabis; or40(b) a material, preparation, mixture, compound or other substance41which contains more than two and one-half percent by weight of delta-942tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering43system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-44terpene numbering system.455.] "Controlled substance" means a substance or substances listed in 46 section thirty-three hundred six of this [chapter] title. 47 [6.] 5. "Commissioner" means commissioner of health of the state of 48 New York. 49 [7.] 6. "Deliver" or "delivery" means the actual, constructive or 50 attempted transfer from one person to another of a controlled substance, 51 whether or not there is an agency relationship. 52 [8.] 7. "Department" means the department of health of the state of 53 New York. 54 [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- 55 mate user or research subject by lawful means, including by means of theS. 1509--A 164 A. 2009--A 1 internet, and includes the packaging, labeling, or compounding necessary 2 to prepare the substance for such delivery. 3 [10.] 9. "Distribute" means to deliver a controlled substance, includ- 4 ing by means of the internet, other than by administering or dispensing. 5 [11.] 10. "Distributor" means a person who distributes a controlled 6 substance. 7 [12.] 11. "Diversion" means manufacture, possession, delivery or use 8 of a controlled substance by a person or in a manner not specifically 9 authorized by law. 10 [13.] 12. "Drug" means 11 (a) substances recognized as drugs in the official United States Phar- 12 macopoeia, official Homeopathic Pharmacopoeia of the United States, or 13 official National Formulary, or any supplement to any of them; 14 (b) substances intended for use in the diagnosis, cure, mitigation, 15 treatment, or prevention of disease in man or animals; and 16 (c) substances (other than food) intended to affect the structure or a 17 function of the body of man or animal. It does not include devices or 18 their components, parts, or accessories. 19 [14.] 13. "Federal agency" means the Drug Enforcement Administration, 20 United States Department of Justice, or its successor agency. 21 [15.] 14. "Federal controlled substances act" means the Comprehensive 22 Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and 23 any act or acts amendatory or supplemental thereto or regulations 24 promulgated thereunder. 25 [16.] 15. "Federal registration number" means such number assigned by 26 the Federal agency to any person authorized to manufacture, distribute, 27 sell, dispense or administer controlled substances. 28 [17.] 16. "Habitual user" means any person who is, or by reason of 29 repeated use of any controlled substance for non-legitimate or unlawful 30 use is in danger of becoming, dependent upon such substance. 31 [18.] 17. "Institutional dispenser" means a hospital, veterinary 32 hospital, clinic, dispensary, maternity home, nursing home, mental 33 hospital or similar facility approved and certified by the department as 34 authorized to obtain controlled substances by distribution and to 35 dispense and administer such substances pursuant to the order of a prac- 36 titioner. 37 [19.] 18. "License" means a written authorization issued by the 38 department or the New York state department of education permitting 39 persons to engage in a specified activity with respect to controlled 40 substances. 41 [20.] 19. "Manufacture" means the production, preparation, propa- 42 gation, compounding, cultivation, conversion or processing of a 43 controlled substance, either directly or indirectly or by extraction 44 from substances of natural origin, or independently by means of chemical 45 synthesis, or by a combination of extraction and chemical synthesis, and 46 includes any packaging or repackaging of the substance or labeling or 47 relabeling of its container, except that this term does not include the 48 preparation, compounding, packaging or labeling of a controlled 49 substance: 50 (a) by a practitioner as an incident to his administering or dispens- 51 ing of a controlled substance in the course of his professional prac- 52 tice; or 53 (b) by a practitioner, or by his authorized agent under his super- 54 vision, for the purpose of, or as an incident to, research, teaching, or 55 chemical analysis and not for sale; orS. 1509--A 165 A. 2009--A 1 (c) by a pharmacist as an incident to his dispensing of a controlled 2 substance in the course of his professional practice. 3 [21. "Marihuana" means all parts of the plant of the genus Cannabis,4whether growing or not; the seeds thereof; the resin extracted from any5part of the plant; and every compound, manufacture, salt, derivative,6mixture, or preparation of the plant, its seeds or resin. It does not7include the mature stalks of the plant, fiber produced from the stalks,8oil or cake made from the seeds of the plant, any other compound, manu-9facture, salt, derivative, mixture, or preparation of the mature stalks10(except the resin extracted therefrom), fiber, oil, or cake, or the11sterilized seed of the plant which is incapable of germination.1222.] 20. "Narcotic drug" means any of the following, whether produced 13 directly or indirectly by extraction from substances of vegetable 14 origin, or independently by means of chemical synthesis, or by a combi- 15 nation of extraction and chemical synthesis: 16 (a) opium and opiate, and any salt, compound, derivative, or prepara- 17 tion of opium or opiate; 18 (b) any salt, compound, isomer, derivative, or preparation thereof 19 which is chemically equivalent or identical with any of the substances 20 referred to in [subdivision] paragraph (a) of this subdivision, but not 21 including the isoquinoline alkaloids of opium; 22 (c) opium poppy and poppy straw. 23 [23.] 21. "Opiate" means any substance having an addiction-forming or 24 addiction-sustaining liability similar to morphine or being capable of 25 conversion into a drug having addiction-forming or addiction-sustaining 26 liability. It does not include, unless specifically designated as 27 controlled under section [3306] thirty-three hundred six of this [arti-28cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and 29 its salts (dextromethorphan). It does include its racemic and levorota- 30 tory forms. 31 [24.] 22. "Opium poppy" means the plant of the species Papaver 32 somniferum L., except its seeds. 33 [25.] 23. "Person" means individual, institution, corporation, govern- 34 ment or governmental subdivision or agency, business trust, estate, 35 trust, partnership or association, or any other legal entity. 36 [26.] 24. "Pharmacist" means any person licensed by the state depart- 37 ment of education to practice pharmacy. 38 [27.] 25. "Pharmacy" means any place registered as such by the New 39 York state board of pharmacy and registered with the Federal agency 40 pursuant to the federal controlled substances act. 41 [28.] 26. "Poppy straw" means all parts, except the seeds, of the 42 opium poppy, after mowing. 43 [29.] 27. "Practitioner" means: 44 A physician, dentist, podiatrist, veterinarian, scientific investi- 45 gator, or other person licensed, or otherwise permitted to dispense, 46 administer or conduct research with respect to a controlled substance in 47 the course of a licensed professional practice or research licensed 48 pursuant to this article. Such person shall be deemed a "practitioner" 49 only as to such substances, or conduct relating to such substances, as 50 is permitted by his license, permit or otherwise permitted by law. 51 [30.] 28. "Prescribe" means a direction or authorization, by 52 prescription, permitting an ultimate user lawfully to obtain controlled 53 substances from any person authorized by law to dispense such 54 substances.S. 1509--A 166 A. 2009--A 1 [31.] 29. "Prescription" shall mean an official New York state 2 prescription, an electronic prescription, an oral prescription[,] or an 3 out-of-state prescription[, or any one]. 4 [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- 5 er, or offer or agree to do the same. 6 [33.] 31. "Ultimate user" means a person who lawfully obtains and 7 possesses a controlled substance for his own use or the use by a member 8 of his household or for an animal owned by him or in his custody. It 9 shall also mean and include a person designated, by a practitioner on a 10 prescription, to obtain such substance on behalf of the patient for whom 11 such substance is intended. 12 [34.] 32. "Internet" means collectively computer and telecommuni- 13 cations facilities which comprise the worldwide network of networks that 14 employ a set of industry standards and protocols, or any predecessor or 15 successor protocol to such protocol, to exchange information of all 16 kinds. "Internet," as used in this article, also includes other 17 networks, whether private or public, used to transmit information by 18 electronic means. 19 [35.] 33. "By means of the internet" means any sale, delivery, 20 distribution, or dispensing of a controlled substance that uses the 21 internet, is initiated by use of the internet or causes the internet to 22 be used. 23 [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person 24 in the United States that sells, delivers or dispenses, or offers to 25 sell, deliver, or dispense, a controlled substance by means of the 26 internet. 27 [37.] 35. "Electronic prescription" means a prescription issued with 28 an electronic signature and transmitted by electronic means in accord- 29 ance with regulations of the commissioner and the commissioner of educa- 30 tion and consistent with federal requirements. A prescription generated 31 on an electronic system that is printed out or transmitted via facsimile 32 is not considered an electronic prescription and must be manually 33 signed. 34 [38.] 36. "Electronic" means of or relating to technology having elec- 35 trical, digital, magnetic, wireless, optical, electromagnetic or similar 36 capabilities. "Electronic" shall not include facsimile. 37 [39.] 37. "Electronic record" means a paperless record that is 38 created, generated, transmitted, communicated, received or stored by 39 means of electronic equipment and includes the preservation, retrieval, 40 use and disposition in accordance with regulations of the commissioner 41 and the commissioner of education and in compliance with federal law and 42 regulations. 43 [40.] 38. "Electronic signature" means an electronic sound, symbol, or 44 process, attached to or logically associated with an electronic record 45 and executed or adopted by a person with the intent to sign the record, 46 in accordance with regulations of the commissioner and the commissioner 47 of education. 48 [41.] 39. "Registry" or "prescription monitoring program registry" 49 means the prescription monitoring program registry established pursuant 50 to section thirty-three hundred forty-three-a of this article. 51 [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- 52 ing, pooling, reconstituting, or otherwise altering of a drug or bulk 53 drug substance to create a drug with respect to an outsourcing facility 54 under section 503B of the federal Food, Drug and Cosmetic Act and 55 further defined in this section. 56 [43.] 41. "Outsourcing facility" means a facility that:S. 1509--A 167 A. 2009--A 1 (a) is engaged in the compounding of sterile drugs as defined in 2 section sixty-eight hundred two of the education law; 3 (b) is currently registered as an outsourcing facility pursuant to 4 article one hundred thirty-seven of the education law; and 5 (c) complies with all applicable requirements of federal and state 6 law, including the Federal Food, Drug and Cosmetic Act. 7 Notwithstanding any other provision of law to the contrary, when an 8 outsourcing facility distributes or dispenses any drug to any person 9 pursuant to a prescription, such outsourcing facility shall be deemed to 10 be providing pharmacy services and shall be subject to all laws, rules 11 and regulations governing pharmacies and pharmacy services. 12 § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 13 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of 14 section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 15 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of 16 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of 17 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the 18 laws of 2006, are amended to read as follows: 19 (13) [Marihuana.20(14)] Mescaline. 21 [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 22 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. 23 [(16)] (15) Peyote. Meaning all parts of the plant presently classi- 24 fied botanically as Lophophora williamsii Lemaire, whether growing or 25 not, the seeds thereof, any extract from any part of such plant, and 26 every compound, manufacture, salts, derivative, mixture, or preparation 27 of such plant, its seeds or extracts. 28 [(17)] (16) N-ethyl-3-piperidyl benzilate. 29 [(18)] (17) N-methyl-3-piperidyl benzilate. 30 [(19)] (18) Psilocybin. 31 [(20)] (19) Psilocyn. 32 [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not 33 derived from the cannabis plant that are equivalents of the substances 34 contained in the plant, or in the resinous extractives of cannabis, sp. 35 and/or synthetic substances, derivatives, and their isomers with similar 36 chemical structure and pharmacological activity such as the following: 37 [/\] delta 1 cis or trans tetrahydrocannabinol, and their optical 38 isomers 39 [/\] delta 6 cis or trans tetrahydrocannabinol, and their optical 40 isomers 41 [/\] delta 3, 4 cis or trans tetrahydrocannabinol, and its optical 42 isomers (since nomenclature of these substances is not internationally 43 standardized, compounds of these structures, regardless of numerical 44 designation of atomic positions covered). 45 [(22)] (21) Ethylamine analog of phencyclidine. Some trade or other 46 names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla- 47 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE. 48 [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other 49 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. 50 [(24)] (23) Thiophene analog of phencyclidine. Some trade or other 51 names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of 52 phencyclidine, TPCP, TCP. 53 [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). 54 [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as 55 N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, 56 MDE, MDEA.S. 1509--A 168 A. 2009--A 1 [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as 2 N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and 3 N-hydroxy MDA. 4 [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other 5 names: TCPY. 6 [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryp- 7 tamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) 8 indole; Alpha-ET or AET. 9 [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other 10 names: DOET. 11 [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other 12 names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl 13 DOB; 2C-B, Nexus. 14 [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its 15 optical isomers, salts and salts of isomers. 16 § 6. Title 5-A of article 33 of the public health law is REPEALED. 17 § 7. Section 3382 of the public health law, as added by chapter 878 of 18 the laws of 1972, is amended to read as follows: 19 § 3382. Growing of the plant known as Cannabis by unlicensed persons. 20 A person who, without being licensed so to do under this article or 21 articles three, four or five of the cannabis law, grows the plant of the 22 genus Cannabis or knowingly allows it to grow on his land without 23 destroying the same, shall be guilty of a class A misdemeanor. 24 § 8. Subdivision 1 of section 3397-b of the public health law, as 25 added by chapter 810 of the laws of 1980, is amended to read as follows: 26 1. ["Marijuana"] "Cannabis" means [marijuana] cannabis as defined in 27 [section thirty-three hundred two of this chapter] subdivision three of 28 section three of the cannabis law and shall also include tetrahydrocan- 29 nabinols or a chemical derivative of tetrahydrocannabinol. 30 § 9. Subdivision 8 of section 1399-n of the public health law, as 31 amended by chapter 13 of the laws of 2003, is amended to read as 32 follows: 33 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or 34 any other matter or substance which contains tobacco or cannabis. 35 § 10. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, 36 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 37 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as 38 amended by chapter 664 of the laws of 1985, are amended and a new subdi- 39 vision 21 is added to read as follows: 40 5. "Controlled substance" means any substance listed in schedule I, 41 II, III, IV or V of section thirty-three hundred six of the public 42 health law other than [marihuana] cannabis as defined in subdivision six 43 of this section, but including concentrated cannabis as defined in 44 [paragraph (a) of subdivision four of section thirty-three hundred two45of such law] subdivision twenty-one of this section. 46 6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-47bis" as those terms are defined in section thirty-three hundred two of48the public health law] all parts of the plant of the genus cannabis, 49 whether growing or not; the seeds thereof; and every compound, manufac- 50 ture, salt, derivative, mixture, or preparation of the plant, or its 51 seeds. It does not include the mature stalks of the plant, fiber 52 produced from the stalks, oil or cake made from the seeds of the plant, 53 any other compound, manufacture, salt, derivative, mixture, or prepara- 54 tion of the mature stalks, fiber, oil, or cake, or the sterilized seed 55 of the plant which is incapable of germination. It does not include allS. 1509--A 169 A. 2009--A 1 parts of the plant cannabis sativa l., whether growing or not, having no 2 more than three-tenths of one percent tetrahydrocannabinol (THC). 3 9. "Hallucinogen" means any controlled substance listed in schedule 4 I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) and 5 (21). 6 21. "Concentrated cannabis" means: (a) the separated resin, whether 7 crude or purified, obtained from a plant of the genus cannabis; or (b) a 8 material, preparation, mixture, compound or other substance which 9 contains more than three percent by weight of delta-9 tetrahydrocannabi- 10 nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 11 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering 12 system. 13 § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED. 14 § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED. 15 § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED. 16 3. concentrated cannabis as defined in [paragraph (a) of subdivision17four of section thirty-three hundred two of the public health law] 18 subdivision twenty-one of section 220.00 of this article; or 19 § 14. Section 220.50 of the penal law, as amended by chapter 627 of 20 the laws of 1990, is amended to read as follows: 21 § 220.50 Criminally using drug paraphernalia in the second degree. 22 A person is guilty of criminally using drug paraphernalia in the 23 second degree when he knowingly possesses or sells: 24 1. Diluents, dilutants or adulterants, including but not limited to, 25 any of the following: quinine hydrochloride, mannitol, mannite, lactose 26 or dextrose, adapted for the dilution of narcotic drugs or stimulants 27 under circumstances evincing an intent to use, or under circumstances 28 evincing knowledge that some person intends to use, the same for 29 purposes of unlawfully mixing, compounding, or otherwise preparing any 30 narcotic drug or stimulant, other than cannabis or concentrated 31 cannabis; or 32 2. Gelatine capsules, glassine envelopes, vials, capsules or any other 33 material suitable for the packaging of individual quantities of narcotic 34 drugs or stimulants under circumstances evincing an intent to use, or 35 under circumstances evincing knowledge that some person intends to use, 36 the same for the purpose of unlawfully manufacturing, packaging or 37 dispensing of any narcotic drug or stimulant, other than cannabis or 38 concentrated cannabis; or 39 3. Scales and balances used or designed for the purpose of weighing or 40 measuring controlled substances, under circumstances evincing an intent 41 to use, or under circumstances evincing knowledge that some person 42 intends to use, the same for purpose of unlawfully manufacturing, pack- 43 aging or dispensing of any narcotic drug or stimulant, other than canna- 44 bis or concentrated cannabis. 45 Criminally using drug paraphernalia in the second degree is a class A 46 misdemeanor. 47 § 15. Section 221.00 of the penal law, as amended by chapter 90 of the 48 laws of 2014, is amended to read as follows: 49 § 221.00 [Marihuana] Cannabis; definitions. 50 Unless the context in which they are used clearly otherwise requires, 51 the terms occurring in this article shall have the same meaning ascribed 52 to them in article two hundred twenty of this chapter. Any act that is 53 lawful under [title five-A of article thirty-three of the public health] 54 articles three, four or five, of the cannabis law is not a violation of 55 this article.S. 1509--A 170 A. 2009--A 1 § 15-a. Section 221.00 of the penal law, as added by chapter 360 of 2 the laws of 1977, is amended to read as follows: 3 § 221.00 [Marihuana] Cannabis; definitions. 4 Unless the context in which they are used clearly otherwise requires, 5 the terms occurring in this article shall have the same meaning ascribed 6 to them in article two hundred twenty of this chapter. 7 § 16. Section 221.05 of the penal law, as added by chapter 360 of the 8 laws of 1977, is amended to read as follows: 9 § 221.05 Unlawful possession of [marihuana] cannabis. 10 A person is guilty of unlawful possession of [marihuana] cannabis when 11 he or she knowingly and unlawfully possesses [marihuana.]: 12 1. cannabis and is less than twenty-one years of age; or 13 2. cannabis in a public place, as defined in section 240.00 of this 14 part, and such cannabis is burning. 15 Unlawful possession of [marihuana] cannabis is a violation punishable 16 only by a fine of not more than [one hundred] fifty dollars[. However,17where the defendant has previously been convicted of an offense defined18in this article or article 220 of this chapter, committed within the19three years immediately preceding such violation, it shall be punishable20(a) only by a fine of not more than two hundred dollars, if the defend-21ant was previously convicted of one such offense committed during such22period, and (b) by a fine of not more than two hundred fifty dollars or23a term of imprisonment not in excess of fifteen days or both, if the24defendant was previously convicted of two such offenses committed during25such period] when such possession is by a person less than twenty-one 26 years of age and of an aggregate weight of less than one-half of one 27 ounce or a fine of not more than one hundred dollars when such 28 possession is by a person less than twenty-one years of age and of an 29 aggregate weight more than one-half of one ounce but not more than one 30 ounce. Unlawful possession of marijuana is punishable by a fine of not 31 more than one hundred twenty-five dollars when such possession is in a 32 public place and such cannabis is burning. The term burning in this 33 section shall have the same meaning as the term vaping as defined in 34 subdivision eight of section thirteen hundred ninety-nine-n of the 35 public health law. 36 § 17. Section 221.15 of the penal law, as amended by chapter 265 of 37 the laws of 1979, the opening paragraph as amended by chapter 75 of the 38 laws of 1995, is amended to read as follows: 39 § 221.15 Criminal possession of [marihuana] cannabis in the [fourth] 40 third degree. 41 A person is guilty of criminal possession of [marihuana] cannabis in 42 the [fourth] third degree when he or she knowingly and unlawfully 43 possesses [one or more preparations, compounds, mixtures or substances44containing marihuana and the preparations, compounds, mixtures or45substances are of] an aggregate weight of more than [two ounces] one 46 ounce of cannabis or more than five grams of concentrated cannabis. 47 Criminal possession of [marihuana] cannabis in the [fourth] third 48 degree is a [class A misdemeanor] violation punishable by a fine of not 49 more than one hundred twenty-five dollars. The provisions of this 50 section shall not apply to certified patients or designated caregivers 51 as lawfully registered under article three of the cannabis law. 52 § 18. Section 221.20 of the penal law, as amended by chapter 265 of 53 the laws of 1979, the opening paragraph as amended by chapter 75 of the 54 laws of 1995, is amended to read as follows: 55 § 221.20 Criminal possession of [marihuana] cannabis in the [third] 56 second degree.S. 1509--A 171 A. 2009--A 1 A person is guilty of criminal possession of [marihuana] cannabis in 2 the [third] second degree when he or she knowingly and unlawfully 3 possesses [one or more preparations, compounds, mixtures or substances4containing marihuana and the preparations, compounds, mixtures or5substances are of] an aggregate weight of more than [eight] two ounces 6 of cannabis or more than ten grams of concentrated cannabis. 7 Criminal possession of [marihuana] cannabis in the [third] second 8 degree is a class [E felony] A misdemeanor punishable by a fine not more 9 than one hundred twenty-five dollars per ounce possessed in excess of 10 two ounces. However, where the defendant has previously been convicted 11 of an offense defined in this article or article two hundred twenty of 12 this title, committed within the three years immediately preceding such 13 violation, it shall be punishable (a) only by a fine of not more than 14 two hundred dollars per ounce possessed in excess of two ounces, if the 15 defendant was previously convicted of one such offense committed during 16 such period, and (b) by a fine of not more than two hundred fifty 17 dollars per ounce possessed in excess of two ounces or a term of impri- 18 sonment not in excess of fifteen days or both, if the defendant was 19 previously convicted of two such offenses committed during such period. 20 The provisions of this section shall not apply to certified patients or 21 designated caregivers as lawfully registered under article three of the 22 cannabis law. 23 § 19. Section 221.25 of the penal law, as amended by chapter 265 of 24 the laws of 1979, the opening paragraph as amended by chapter 75 of the 25 laws of 1995, is amended to read as follows: 26 § 221.25 Criminal possession of [marihuana] cannabis in the [second] 27 first degree. 28 A person is guilty of criminal possession of [marihuana] cannabis in 29 the [second] first degree when he or she knowingly and unlawfully 30 possesses [one or more preparations, compounds, mixtures or substances31containing marihuana and the preparations, compounds, mixtures or32substances are of] an aggregate weight of more than [sixteen] sixty-four 33 ounces of cannabis or more than eighty grams of concentrated cannabis. 34 Criminal possession of [marihuana] cannabis in the [second] first 35 degree is a class [D] E felony. 36 § 20. Sections 221.10 and 221.30 of the penal law are REPEALED. 37 § 21. Section 221.35 of the penal law, as amended by chapter 265 of 38 the laws of 1979, the opening paragraph as amended by chapter 75 of the 39 laws of 1995, is amended to read as follows: 40 § 221.35 Criminal sale of [marihuana] cannabis in the fifth degree. 41 A person is guilty of criminal sale of [marihuana] cannabis in the 42 fifth degree when he or she knowingly and unlawfully sells, [without] 43 for consideration[, one or more preparations, compounds, mixtures or44substances containing marihuana and the preparations, compounds,45mixtures or substances are] cannabis or cannabis concentrate of [an46aggregate weight of two grams or less; or one cigarette containing mari-47huana] any weight. 48 Criminal sale of [marihuana] cannabis in the fifth degree is a [class49B misdemeanor] violation punishable by a fine not more than the greater 50 of two-hundred and fifty dollars or two times the value of the sale. 51 § 22. Section 221.40 of the penal law, as added by chapter 360 of the 52 laws of 1977, is amended to read as follows: 53 § 221.40 Criminal sale of [marihuana] cannabis in the fourth degree. 54 A person is guilty of criminal sale of [marihuana] cannabis in the 55 fourth degree when he or she knowingly and unlawfully sells [marihuana56except as provided in section 221.35 of this article] cannabis of anS. 1509--A 172 A. 2009--A 1 aggregate weight of more than one ounce or more than five grams of 2 cannabis concentrate. 3 Criminal sale of [marihuana] cannabis in the fourth degree is a [class4A] misdemeanor punishable by a fine of not more than the greater of five 5 hundred dollars or two times the value of the sale or a maximum of three 6 months imprisonment, or both. 7 § 23. Section 221.45 of the penal law, as amended by chapter 265 of 8 the laws of 1979, the opening paragraph as amended by chapter 75 of the 9 laws of 1995, is amended to read as follows: 10 § 221.45 Criminal sale of [marihuana] cannabis in the third degree. 11 A person is guilty of criminal sale of [marihuana] cannabis in the 12 third degree when he or she knowingly and unlawfully sells [one or more13preparations, compounds, mixtures or substances containing marihuana and14the preparations, compounds, mixtures or substances are of an aggregate15weight of more than twenty-five grams] four ounces of cannabis or more 16 than twenty grams of concentrated cannabis. 17 Criminal sale of [marihuana] cannabis in the third degree is a [class18E felony] misdemeanor punishable by a fine of not more than the greater 19 of one thousand dollars or two times the value of the sale or a maximum 20 of one year imprisonment or both. 21 § 24. Section 221.50 of the penal law, as amended by chapter 265 of 22 the laws of 1979, the opening paragraph as amended by chapter 75 of the 23 laws of 1995, is amended to read as follows: 24 § 221.50 Criminal sale of [marihuana] cannabis in the second degree. 25 A person is guilty of criminal sale of [marihuana] cannabis in the 26 second degree when he knowingly and unlawfully sells [one or more prepa-27rations, compounds, mixtures or substances containing marihuana and the28preparations, compounds, mixtures or substances are of an aggregate29weight of] more than [four ounces, or knowingly and unlawfully sells one30or more preparations, compounds, mixtures or substances containing mari-31huana to a person less than eighteen years of age] sixteen ounces of 32 cannabis or more than eighty grams of concentrated cannabis or any 33 amount of cannabis or concentrated cannabis to any person under twenty- 34 one years of age. 35 Criminal sale of [marihuana] cannabis in the second degree is a class 36 D felony. 37 § 25. Section 221.55 of the penal law, as amended by chapter 265 of 38 the laws of 1979, the opening paragraph as amended by chapter 75 of the 39 laws of 1995, is amended to read as follows: 40 § 221.55 Criminal sale of [marihuana] cannabis in the first degree. 41 A person is guilty of criminal sale of [marihuana] cannabis in the 42 first degree when he knowingly and unlawfully sells [one or more prepa-43rations, compounds, mixtures or substances containing marihuana and the44preparations, compounds, mixtures or substances are of an aggregate45weight of] more than [sixteen] sixty-four ounces of cannabis or three 46 hundred and twenty grams of cannabis concentrate. 47 Criminal sale of [marihuana] cannabis in the first degree is a class C 48 felony. 49 § 26. The penal law is amended by adding a new section 221.60 to read 50 as follows: 51 § 221.60 Licensing of cannabis production and distribution. 52 The provisions of this article and of article two hundred twenty of 53 this title shall not apply to any person exempted from criminal penal- 54 ties pursuant to the provisions of this chapter or possessing, manufac- 55 turing, transporting, distributing, selling or transferring cannabis orS. 1509--A 173 A. 2009--A 1 concentrated cannabis, or engaged in any other action that is in compli- 2 ance with articles three, four or five of the cannabis law. 3 § 27. Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50 4 of the criminal procedure law, paragraphs (i) and (j) as added by chap- 5 ter 905 of the laws of 1977, paragraph (k) as added by chapter 835 of 6 the laws of 1977 and as relettered by chapter 192 of the laws of 1980 7 and such subdivision as renumbered by chapter 142 of the laws of 1991, 8 are amended to read as follows: 9 (i) prior to the filing of an accusatory instrument in a local crimi- 10 nal court against such person, the prosecutor elects not to prosecute 11 such person. In such event, the prosecutor shall serve a certification 12 of such disposition upon the division of criminal justice services and 13 upon the appropriate police department or law enforcement agency which, 14 upon receipt thereof, shall comply with the provisions of paragraphs 15 (a), (b), (c) and (d) of subdivision one of this section in the same 16 manner as is required thereunder with respect to an order of a court 17 entered pursuant to said subdivision one[.]; or 18 (j) following the arrest of such person, the arresting police agency, 19 prior to the filing of an accusatory instrument in a local criminal 20 court but subsequent to the forwarding of a copy of the fingerprints of 21 such person to the division of criminal justice services, elects not to 22 proceed further. In such event, the head of the arresting police agency 23 shall serve a certification of such disposition upon the division of 24 criminal justice services which, upon receipt thereof, shall comply with 25 the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of 26 this section in the same manner as is required thereunder with respect 27 to an order of a court entered pursuant to said subdivision one[.]; or 28 (k) (i) The accusatory instrument alleged a violation of article two 29 hundred twenty or section 240.36 of the penal law, prior to the taking 30 effect of article two hundred twenty-one of the penal law and the sole 31 conrolled substance involved is cannabis, or a violation of [article two32hundred twenty-one] section 221.05, 221.10 or 221.35 of the penal law; 33 [(ii) the sole controlled substance involved is marijuana; (iii) the34conviction was only for a violation or violations; and (iv) at least35three years have passed since the offense occurred.] No defendant shall 36 be required or permitted to waive eligibility for sealing pursuant to 37 this paragraph as part of a plea of guilty, sentence or any agreement. 38 § 27-a. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdi- 39 vision 1 of section 440.10 of the criminal procedure law, paragraph (h) 40 as amended by chapter 332 of the laws of 2010 and subparagraph (ii) of 41 paragraph (i) as amended by chapter 368 of the laws of 2015, are amended 42 and a new paragraph (j) is added to read as follows: 43 (h) The judgment was obtained in violation of a right of the defendant 44 under the constitution of this state or of the United States; [or] 45 (ii) official documentation of the defendant's status as a victim of 46 trafficking, compelling prostitution or trafficking in persons at the 47 time of the offense from a federal, state or local government agency 48 shall create a presumption that the defendant's participation in the 49 offense was a result of having been a victim of sex trafficking, compel- 50 ling prostitution or trafficking in persons, but shall not be required 51 for granting a motion under this paragraph[.]; or 52 (j) The judgment occurred prior to the effective date of this para- 53 graph and is a conviction for: (i) an offense as defined by section 54 221.05 or 221.10 of the penal law as in effect prior to the effective 55 date of this paragraph, provided that the accusatory instrument thatS. 1509--A 174 A. 2009--A 1 underlies the judgment does not include an allegation that the defendant 2 possessed more than twenty-five grams of cannabis. 3 § 28. Paragraph (f) of subdivision 2 of section 850 of the general 4 business law is REPEALED. 5 § 29. Paragraph (h) of subdivision 2 of section 850 of the general 6 business law, as amended by chapter 812 of the laws of 1980, is amended 7 to read as follows: 8 (h) Objects, used or designed for the purpose of ingesting, inhaling, 9 or otherwise introducing [marihuana,] cocaine, hashish, or hashish oil 10 into the human body. 11 § 30. Section 114-a of the vehicle and traffic law, as added by chap- 12 ter 163 of the laws of 1973, is amended to read as follows: 13 § 114-a. Drug. The term "drug" when used in this chapter, means and 14 includes any substance listed in section thirty-three hundred six of the 15 public health law and any substance or combination of substances that 16 impair, to any extent, physical or mental abilities. 17 § 31. The article heading of article 20-B of the tax law, as added by 18 chapter 90 of the laws of 2014, is amended to read as follows: 19 ARTICLE 20-B 20 EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS 21 § 32. The paragraph heading and subparagraph (i) of paragraph (b) of 22 subdivision 1 of section 1193 of the vehicle and traffic law, as amended 23 by chapter 169 of the laws of 2013, are amended to read as follows: 24 Driving while intoxicated or while ability impaired by drugs or while 25 ability impaired by the combined influence of drugs or of alcohol and 26 any drug or drugs; aggravated driving while intoxicated; misdemeanor 27 offenses. (i) A violation of subdivision two, three, or four [or four-a] 28 of section eleven hundred ninety-two of this article shall be a misde- 29 meanor and shall be punishable by a fine of not less than five hundred 30 dollars nor more than one thousand dollars, or by imprisonment in a 31 penitentiary or county jail for not more than one year, or by both such 32 fine and imprisonment. A violation of paragraph (a) of subdivision two-a 33 of section eleven hundred ninety-two of this article shall be a misde- 34 meanor and shall be punishable by a fine of not less than one thousand 35 dollars nor more than two thousand five hundred dollars or by imprison- 36 ment in a penitentiary or county jail for not more than one year, or by 37 both such fine and imprisonment. 38 § 33. Paragraph (c) of subdivision 1 of section 1193 of the vehicle 39 and traffic law, as amended by chapter 169 of the laws of 2013, is 40 amended by adding a new subparagraph (i-a) to read as follows: 41 (i-a) A violation of subdivision four-a of section eleven hundred 42 ninety-two of this article shall be a class E felony, and shall be 43 punishable by a fine of not less than one thousand dollars nor more than 44 five thousand dollars or by a period of imprisonment as provided in the 45 penal law, or by both such fine and imprisonment. 46 § 33-a. Paragraph (b) of subdivision 1 of section 1194 of the vehicle 47 and traffic law, as amended by chapter 406 of the laws of 1988, is 48 amended to read as follows: 49 (b) Every person operating a motor vehicle which has been involved in 50 an accident or which is operated in violation of any of the provisions 51 of this chapter shall, at the request of a police officer, submit to a 52 breath and/or saliva test to be administered by the police officer. If 53 such test or tests indicate[s] that such operator has consumed alcohol 54 or drug or drugs, the police officer may request such operator to submit 55 to a chemical test in the manner set forth in subdivision two of this 56 section.S. 1509--A 175 A. 2009--A 1 § 34. Subdivision 1 of section 171-a of the tax law, as amended by 2 section 3 of part MM of chapter 59 of the laws of 2018, is amended to 3 read as follows: 4 1. All taxes, interest, penalties and fees collected or received by 5 the commissioner or the commissioner's duly authorized agent under arti- 6 cles nine (except section one hundred eighty-two-a thereof and except as 7 otherwise provided in section two hundred five thereof), nine-A, 8 twelve-A (except as otherwise provided in section two hundred eighty- 9 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 10 section three hundred twelve thereof), eighteen, nineteen, twenty 11 (except as otherwise provided in section four hundred eighty-two there- 12 of), twenty-B, twenty-C, twenty-one, twenty-two, twenty-four, twenty- 13 six, twenty-eight (except as otherwise provided in section eleven 14 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 15 nine-B, thirty-one (except as otherwise provided in section fourteen 16 hundred twenty-one thereof), thirty-three and thirty-three-A of this 17 chapter shall be deposited daily in one account with such responsible 18 banks, banking houses or trust companies as may be designated by the 19 comptroller, to the credit of the comptroller. Such an account may be 20 established in one or more of such depositories. Such deposits shall be 21 kept separate and apart from all other money in the possession of the 22 comptroller. The comptroller shall require adequate security from all 23 such depositories. Of the total revenue collected or received under such 24 articles of this chapter, the comptroller shall retain in the comp- 25 troller's hands such amount as the commissioner may determine to be 26 necessary for refunds or reimbursements under such articles of this 27 chapter out of which amount the comptroller shall pay any refunds or 28 reimbursements to which taxpayers shall be entitled under the provisions 29 of such articles of this chapter. The commissioner and the comptroller 30 shall maintain a system of accounts showing the amount of revenue 31 collected or received from each of the taxes imposed by such articles. 32 The comptroller, after reserving the amount to pay such refunds or 33 reimbursements, shall, on or before the tenth day of each month, pay 34 into the state treasury to the credit of the general fund all revenue 35 deposited under this section during the preceding calendar month and 36 remaining to the comptroller's credit on the last day of such preceding 37 month, (i) except that the comptroller shall pay to the state department 38 of social services that amount of overpayments of tax imposed by article 39 twenty-two of this chapter and the interest on such amount which is 40 certified to the comptroller by the commissioner as the amount to be 41 credited against past-due support pursuant to subdivision six of section 42 one hundred seventy-one-c of this article, (ii) and except that the 43 comptroller shall pay to the New York state higher education services 44 corporation and the state university of New York or the city university 45 of New York respectively that amount of overpayments of tax imposed by 46 article twenty-two of this chapter and the interest on such amount which 47 is certified to the comptroller by the commissioner as the amount to be 48 credited against the amount of defaults in repayment of guaranteed 49 student loans and state university loans or city university loans pursu- 50 ant to subdivision five of section one hundred seventy-one-d and subdi- 51 vision six of section one hundred seventy-one-e of this article, (iii) 52 and except further that, notwithstanding any law, the comptroller shall 53 credit to the revenue arrearage account, pursuant to section 54 ninety-one-a of the state finance law, that amount of overpayment of tax 55 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 56 or thirty-three of this chapter, and any interest thereon, which isS. 1509--A 176 A. 2009--A 1 certified to the comptroller by the commissioner as the amount to be 2 credited against a past-due legally enforceable debt owed to a state 3 agency pursuant to paragraph (a) of subdivision six of section one 4 hundred seventy-one-f of this article, provided, however, he shall cred- 5 it to the special offset fiduciary account, pursuant to section ninety- 6 one-c of the state finance law, any such amount creditable as a liabil- 7 ity as set forth in paragraph (b) of subdivision six of section one 8 hundred seventy-one-f of this article, (iv) and except further that the 9 comptroller shall pay to the city of New York that amount of overpayment 10 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 11 thirty-B or thirty-three of this chapter and any interest thereon that 12 is certified to the comptroller by the commissioner as the amount to be 13 credited against city of New York tax warrant judgment debt pursuant to 14 section one hundred seventy-one-l of this article, (v) and except 15 further that the comptroller shall pay to a non-obligated spouse that 16 amount of overpayment of tax imposed by article twenty-two of this chap- 17 ter and the interest on such amount which has been credited pursuant to 18 section one hundred seventy-one-c, one hundred seventy-one-d, one 19 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 20 ty-one-l of this article and which is certified to the comptroller by 21 the commissioner as the amount due such non-obligated spouse pursuant to 22 paragraph six of subsection (b) of section six hundred fifty-one of this 23 chapter; and (vi) the comptroller shall deduct a like amount which the 24 comptroller shall pay into the treasury to the credit of the general 25 fund from amounts subsequently payable to the department of social 26 services, the state university of New York, the city university of New 27 York, or the higher education services corporation, or the revenue 28 arrearage account or special offset fiduciary account pursuant to 29 section ninety-one-a or ninety-one-c of the state finance law, as the 30 case may be, whichever had been credited the amount originally withheld 31 from such overpayment, and (vii) with respect to amounts originally 32 withheld from such overpayment pursuant to section one hundred seventy- 33 one-l of this article and paid to the city of New York, the comptroller 34 shall collect a like amount from the city of New York. 35 § 35. Section 490 of the tax law, as added by chapter 90 of the laws 36 of 2014, is amended to read as follows: 37 § 490. [Definitions] Excise tax on medical cannabis. 1. (a) [All38definitions of terms applicable to title five-A of article thirty-three39of the public health law shall apply to this article.] For purposes of 40 this article, the terms "medical cannabis," "registered organization," 41 "certified patient," and "designated caregiver" shall have the same 42 definitions as in section three of the cannabis law. 43 (b) As used in this section, where not otherwise specifically defined 44 and unless a different meaning is clearly required "gross receipt" means 45 the amount received in or by reason of any sale, conditional or other- 46 wise, of medical [marihuana] cannabis or in or by reason of the furnish- 47 ing of medical [marihuana] cannabis from the sale of medical [marihuana] 48 cannabis provided by a registered organization to a certified patient or 49 designated caregiver. Gross receipt is expressed in money, whether paid 50 in cash, credit or property of any kind or nature, and shall be deter- 51 mined without any deduction therefrom on account of the cost of the 52 service sold or the cost of materials, labor or services used or other 53 costs, interest or discount paid, or any other expenses whatsoever. 54 "Amount received" for the purpose of the definition of gross receipt, as 55 the term gross receipt is used throughout this article, means the amount 56 charged for the provision of medical [marihuana] cannabis.S. 1509--A 177 A. 2009--A 1 2. There is hereby imposed an excise tax on the gross receipts from 2 the sale of medical [marihuana] cannabis by a registered organization to 3 a certified patient or designated caregiver, to be paid by the regis- 4 tered organization, at the rate of seven percent. The tax imposed by 5 this article shall be charged against and be paid by the registered 6 organization and shall not be added as a separate charge or line item on 7 any sales slip, invoice, receipt or other statement or memorandum of the 8 price given to the retail customer. 9 3. The commissioner may make, adopt and amend rules, regulations, 10 procedures and forms necessary for the proper administration of this 11 article. 12 4. Every registered organization that makes sales of medical [marihua-13na] cannabis subject to the tax imposed by this article shall, on or 14 before the twentieth date of each month, file with the commissioner a 15 return on forms to be prescribed by the commissioner, showing its 16 receipts from the retail sale of medical [marihuana] cannabis during the 17 preceding calendar month and the amount of tax due thereon. Such returns 18 shall contain such further information as the commissioner may require. 19 Every registered organization required to file a return under this 20 section shall, at the time of filing such return, pay to the commission- 21 er the total amount of tax due on its retail sales of medical [marihua-22na] cannabis for the period covered by such return. If a return is not 23 filed when due, the tax shall be due on the day on which the return is 24 required to be filed. 25 5. Whenever the commissioner shall determine that any moneys received 26 under the provisions of this article were paid in error, he may cause 27 the same to be refunded, with interest, in accordance with such rules 28 and regulations as he may prescribe, except that no interest shall be 29 allowed or paid if the amount thereof would be less than one dollar. 30 Such interest shall be at the overpayment rate set by the commissioner 31 pursuant to subdivision twenty-sixth of section one hundred seventy-one 32 of this chapter, or if no rate is set, at the rate of six percent per 33 annum, from the date when the tax, penalty or interest to be refunded 34 was paid to a date preceding the date of the refund check by not more 35 than thirty days. Provided, however, that for the purposes of this 36 subdivision, any tax paid before the last day prescribed for its payment 37 shall be deemed to have been paid on such last day. Such moneys received 38 under the provisions of this article which the commissioner shall deter- 39 mine were paid in error, may be refunded out of funds in the custody of 40 the comptroller to the credit of such taxes provided an application 41 therefor is filed with the commissioner within two years from the time 42 the erroneous payment was made. 43 6. The provisions of article twenty-seven of this chapter shall apply 44 to the tax imposed by this article in the same manner and with the same 45 force and effect as if the language of such article had been incorpo- 46 rated in full into this section and had expressly referred to the tax 47 imposed by this article, except to the extent that any provision of such 48 article is either inconsistent with a provision of this article or is 49 not relevant to this article. 50 7. All taxes, interest and penalties collected or received by the 51 commissioner under this article shall be deposited and disposed of 52 pursuant to the provisions of section one hundred seventy-one-a of this 53 chapter, provided that an amount equal to one hundred percent collected 54 under this article less any amount determined by the commissioner to be 55 reserved by the comptroller for refunds or reimbursements shall be paid 56 by the comptroller to the credit of the medical [marihuana] cannabisS. 1509--A 178 A. 2009--A 1 trust fund established by section eighty-nine-h of the state finance 2 law. 3 8. A registered organization that dispenses medical [marihuana] canna- 4 bis shall provide to the department information on where the medical 5 [marihuana] cannabis was dispensed and where the medical [marihuana] 6 cannabis was manufactured. A registered organization that obtains [mari-7huana] cannabis from another registered organization shall obtain from 8 such registered organization information on where the medical [marihua-9na] cannabis was manufactured. 10 § 36. Section 491 of the tax law, as added by chapter 90 of the laws 11 of 2014, subdivision 1 as amended by section 1 of part II of chapter 60 12 of the laws of 2016, is amended to read as follows: 13 § 491. Returns to be secret. 1. Except in accordance with proper judi- 14 cial order or as in this section or otherwise provided by law, it shall 15 be unlawful for the commissioner, any officer or employee of the depart- 16 ment, or any officer or person who, pursuant to this section, is permit- 17 ted to inspect any return or report or to whom a copy, an abstract or a 18 portion of any return or report is furnished, or to whom any information 19 contained in any return or report is furnished, or any person engaged or 20 retained by such department on an independent contract basis or any 21 person who in any manner may acquire knowledge of the contents of a 22 return or report filed pursuant to this article to divulge or make known 23 in any manner the contents or any other information relating to the 24 business of a distributor, owner or other person contained in any return 25 or report required under this article. The officers charged with the 26 custody of such returns or reports shall not be required to produce any 27 of them or evidence of anything contained in them in any action or 28 proceeding in any court, except on behalf of the state, [the state29department of health] office of cannabis management, or the commissioner 30 in an action or proceeding under the provisions of this chapter or on 31 behalf of the state or the commissioner in any other action or proceed- 32 ing involving the collection of a tax due under this chapter to which 33 the state or the commissioner is a party or a claimant or on behalf of 34 any party to any action or proceeding under the provisions of this arti- 35 cle, when the returns or the reports or the facts shown thereby are 36 directly involved in such action or proceeding, or in an action or 37 proceeding relating to the regulation or taxation of medical [marihuana] 38 cannabis on behalf of officers to whom information shall have been 39 supplied as provided in subdivision two of this section, in any of which 40 events the court may require the production of, and may admit in 41 evidence so much of said returns or reports or of the facts shown there- 42 by as are pertinent to the action or proceeding and no more. Nothing 43 herein shall be construed to prohibit the commissioner, in his or her 44 discretion, from allowing the inspection or delivery of a certified copy 45 of any return or report filed under this article or of any information 46 contained in any such return or report by or to a duly authorized offi- 47 cer or employee of the [state department of health] office of cannabis 48 management; or by or to the attorney general or other legal represen- 49 tatives of the state when an action shall have been recommended or 50 commenced pursuant to this chapter in which such returns or reports or 51 the facts shown thereby are directly involved; or the inspection of the 52 returns or reports required under this article by the comptroller or 53 duly designated officer or employee of the state department of audit and 54 control, for purposes of the audit of a refund of any tax paid by a 55 registered organization or other person under this article; nor to 56 prohibit the delivery to a registered organization, or a duly authorizedS. 1509--A 179 A. 2009--A 1 representative of such registered organization, a certified copy of any 2 return or report filed by such registered organization pursuant to this 3 article, nor to prohibit the publication of statistics so classified as 4 to prevent the identification of particular returns or reports and the 5 items thereof. This section shall also not be construed to prohibit the 6 disclosure, for tax administration purposes, to the division of the 7 budget and the office of the state comptroller, of information aggre- 8 gated from the returns filed by all the registered organizations making 9 sales of, or manufacturing, medical [marihuana] cannabis in a specified 10 county, whether the number of such registered organizations is one or 11 more. Provided further that, notwithstanding the provisions of this 12 subdivision, the commissioner may, in his or her discretion, permit the 13 proper officer of any county entitled to receive an allocation, follow- 14 ing appropriation by the legislature, pursuant to this article and 15 section eighty-nine-h of the state finance law, or the authorized repre- 16 sentative of such officer, to inspect any return filed under this arti- 17 cle, or may furnish to such officer or the officer's authorized repre- 18 sentative an abstract of any such return or supply such officer or such 19 representative with information concerning an item contained in any such 20 return, or disclosed by any investigation of tax liability under this 21 article. 22 2. The commissioner, in his or her discretion and pursuant to such 23 rules and regulations as he or she may adopt, may permit [the commis-24sioner of internal revenue of the United States, or] the appropriate 25 officers of any other state which regulates or taxes medical [marihuana] 26 cannabis, or the duly authorized representatives of such [commissioner27or of any such] officers, to inspect returns or reports made pursuant to 28 this article, or may furnish to such [commissioner or] other officers, 29 or duly authorized representatives, a copy of any such return or report 30 or an abstract of the information therein contained, or any portion 31 thereof, or may supply [such commissioner or] any such officers or such 32 representatives with information relating to the business of a regis- 33 tered organization making returns or reports hereunder. The commissioner 34 may refuse to supply information pursuant to this subdivision [to the35commissioner of internal revenue of the United States or] to the offi- 36 cers of any other state if the statutes [of the United States, or] of 37 the state represented by such officers, do not grant substantially simi- 38 lar privileges to the commissioner, but such refusal shall not be manda- 39 tory. Information shall not be supplied to [the commissioner of internal40revenue of the United States or] the appropriate officers of any other 41 state which regulates or taxes medical [marihuana] cannabis, or the duly 42 authorized representatives [of such commissioner or] of any of such 43 officers, unless such [commissioner,] officer or other representatives 44 shall agree not to divulge or make known in any manner the information 45 so supplied, but such officers may transmit such information to their 46 employees or legal representatives when necessary, who in turn shall be 47 subject to the same restrictions as those hereby imposed upon such 48 [commissioner,] officer or other representatives. 49 3. (a) Any officer or employee of the state who willfully violates the 50 provisions of subdivision one or two of this section shall be dismissed 51 from office and be incapable of holding any public office in this state 52 for a period of five years thereafter. 53 (b) Cross-reference: For criminal penalties, see article thirty-seven 54 of this chapter. 55 § 37. The tax law is amended by adding a new article 20-C to read as 56 follows:S. 1509--A 180 A. 2009--A 1 ARTICLE 20-C 2 TAX ON ADULT-USE CANNABIS PRODUCTS 3 Section 492. Definitions. 4 493. Tax on cannabis. 5 494. Registration and renewal. 6 495. Returns and payment of tax. 7 496. Returns to be kept secret. 8 § 492. Definitions. For purposes of this article, the following defi- 9 nitions shall apply: 10 (a) "Cannabis" means all parts of a plant of the genus cannabis, 11 whether growing or not; the seeds thereof; the resin extracted from any 12 part of the plant; and every compound, manufacture, salt, derivative, 13 mixture, or preparation of the plant, its seeds or resin. For purposes 14 of this article, cannabis does not include medical cannabis or hemp as 15 defined in section three of the cannabis law. 16 (b) "Cannabis flower" means the flower of a plant of the genus canna- 17 bis that has been harvested, dried, and cured, and prior to any process- 18 ing whereby the plant material is transformed into a concentrate, 19 including, but not limited to, concentrated cannabis, or an edible or 20 topical product containing cannabis or concentrated cannabis and other 21 ingredients. Cannabis flower excludes leaves and stem. 22 (c) "Cannabis trim" means all parts of a plant of the genus cannabis 23 other than cannabis flowers that have been harvested, dried, and cured, 24 and prior to any processing whereby the plant material is transformed 25 into a concentrate, including, but not limited to, concentrated canna- 26 bis, or an edible or topical product containing cannabis and other 27 ingredients. 28 (d) "Adult-use cannabis product" means a cannabis product as defined 29 in section three of the cannabis law. For purposes of this article, 30 under no circumstances shall adult-use cannabis product include medical 31 cannabis or hemp cannabis as defined in section three of the cannabis 32 law. 33 (e) "Person" means every individual, partnership, limited liability 34 company, society, association, joint stock company, corporation, estate, 35 receiver, trustee, assignee, referee, and any other person acting in a 36 fiduciary or representative capacity, whether appointed by a court or 37 otherwise, and any combination of the foregoing. 38 (f) "Wholesaler" means any person that sells or transfers adult-use 39 cannabis products to a retail dispensary licensed pursuant to section 40 seventy-two of the cannabis law. Where the cultivator or processor is 41 also the retail dispensary, the retail dispensary shall be the whole- 42 saler for purposes of this article. 43 (g) "Cultivation" has the same meaning as described in subdivision two 44 of section sixty-eight of the cannabis law. 45 (h) "Retail dispensary" means a dispensary licensed to sell adult-use 46 cannabis products pursuant to section seventy-two of the cannabis law. 47 (i) "Transfer" means to grant, convey, hand over, assign, sell, 48 exchange or barter, in any manner or by any means, with or without 49 consideration. 50 (j) "Sale" means any transfer of title, possession or both, exchange 51 or barter, rental, lease or license to use or consume, conditional or 52 otherwise, in any manner or by any means whatsoever for a consideration 53 or any agreement therefor. 54 (k) "Processor" has the same meaning as described in subdivision two 55 of section sixty-nine of the cannabis law.S. 1509--A 181 A. 2009--A 1 § 493. Tax on cannabis. (a) There is hereby imposed and shall be paid 2 a tax on the cultivation of cannabis flower and cannabis trim at the 3 rate of one dollar per dry-weight gram of cannabis flower and twenty- 4 five cents per dry-weight gram of cannabis trim. Where the wholesaler is 5 not the cultivator, such tax shall be collected from the cultivator by 6 the wholesaler at the time such flower or trim is transferred to the 7 wholesaler. Where the wholesaler is the cultivator, such tax shall be 8 paid by the wholesaler and shall accrue at the time of sale or transfer 9 to a retail dispensary. Where the cultivator is also the retail dispen- 10 sary, such tax shall accrue at the time of the sale to the retail 11 customer. 12 (b) In addition to the tax imposed by subdivision (a) of this section, 13 there is hereby imposed a tax on the sale or transfer by a wholesaler to 14 a retail dispensary of adult-use cannabis products, to be paid by such 15 wholesaler. Where the wholesaler is not the retail dispensary, such tax 16 shall be at the rate of twenty percent of the invoice price charged by 17 the wholesaler to a retail dispensary, and shall accrue at the time of 18 such sale. Where the wholesaler is the retail dispensary, such tax shall 19 be at the rate of twenty percent of the price charged to the retail 20 customer and shall accrue at the time of such sale. 21 (c) In addition to the taxes imposed by subdivisions (a) and (b) of 22 this section, there is hereby imposed a tax on the sale or transfer by a 23 wholesaler to a retail dispensary of adult-use cannabis products, in 24 trust for and on account of the county in which the retail dispensary is 25 located. Such tax shall be paid by the wholesaler and shall accrue at 26 the time of such sale. Where the wholesaler is not the retail dispen- 27 sary, such tax shall be at the rate of two percent of the invoice price 28 charged by the wholesaler to a retail dispensary. Where the wholesaler 29 is the retail dispensary, such tax shall be at the rate of two percent 30 of the price charged to the retail customer. 31 (d) Notwithstanding any other provision of law to the contrary, the 32 taxes imposed by article twenty of this chapter shall not apply to any 33 product subject to tax under this article. 34 § 494. Registration and renewal. (a) Every wholesaler must file with 35 the commissioner a properly completed application for a certificate of 36 registration before engaging in business. In order to apply for such 37 certificate of registration, such person must first be in possession of 38 a valid license from the office of cannabis management. An application 39 for a certificate of registration must be submitted electronically, on a 40 form prescribed by the commissioner, and must be accompanied by a non- 41 refundable application fee of six hundred dollars. A certificate of 42 registration shall not be assignable or transferable and shall be 43 destroyed immediately upon such person ceasing to do business as speci- 44 fied in such certificate, or in the event that such business never 45 commenced. 46 (b) The commissioner shall refuse to issue a certificate of registra- 47 tion to any applicant and shall revoke the certificate of registration 48 of any such person who does not possess a valid license from the office 49 of cannabis management. The commissioner may refuse to issue a certif- 50 icate of registration to any applicant where such applicant: (1) has a 51 past-due liability as that term is defined in section one hundred seven- 52 ty-one-v of this chapter; (2) has had a certificate of registration 53 under this article, a license from the office of cannabis management, or 54 any license or registration provided for in this chapter revoked within 55 one year from the date on which such application was filed; (3) has been 56 convicted of a crime provided for in this chapter within one year fromS. 1509--A 182 A. 2009--A 1 the date on which such application was filed of the certificate's issu- 2 ance; (4) willfully fails to file a report or return required by this 3 article; (5) willfully files, causes to be filed, gives or causes to be 4 given a report, return, certificate or affidavit required by this arti- 5 cle which is false; or (6) willfully fails to collect or truthfully 6 account for or pay over any tax imposed by this article. 7 (c) A certificate of registration shall be valid for the period speci- 8 fied thereon, unless earlier suspended or revoked. Upon the expiration 9 of the term stated on a certificate of registration, such certificate 10 shall be null and void. 11 (d) Every holder of a certificate of registration must notify the 12 commissioner of changes to any of the information stated on the certif- 13 icate, or of changes to any information contained in the application for 14 the certificate of registration. Such notification must be made on or 15 before the last day of the month in which a change occurs and must be 16 made electronically on a form prescribed by the commissioner. 17 (e) Every holder of a certificate of registration under this article 18 shall be required to reapply prior to such certificate's expiration, 19 during a reapplication period established by the commissioner. Such 20 reapplication period shall not occur more frequently than every two 21 years. Such reapplication shall be subject to the same requirements and 22 conditions, including grounds for refusal, as an initial application, 23 including the payment of the application fee. 24 (f) Penalties. A person to whom adult-use cannabis products have been 25 transferred or who sells adult-use cannabis products without a valid 26 certificate of registration pursuant to subdivision (a) of this section 27 shall be subject to a penalty of five hundred dollars for each month or 28 part thereof during which such person continues to possess adult-use 29 cannabis products that have been transferred to such person or who sells 30 such products after the expiration of the first month after which such 31 person operates without a valid certificate of registration, not to 32 exceed ten thousand dollars in the aggregate. 33 § 495. Returns and payment of tax. (a) 1. Every wholesaler shall, on 34 or before the twentieth date of the month, file with the commissioner a 35 return on forms to be prescribed by the commissioner, showing the total 36 weight of cannabis flower and cannabis trim subject to tax pursuant to 37 subdivision (a) of section four hundred ninety-three of this article and 38 the total amount of tax due thereon in the preceding calendar month, and 39 the total amount of tax due under subdivisions (b) and (c) of such 40 section on its sales to a retail dispensary during the preceding calen- 41 dar month, along with such other information as the commissioner may 42 require. Every person required to file a return under this section 43 shall, at the time of filing such return, pay to the commissioner the 44 total amount of tax due for the period covered by such return. If a 45 return is not filed when due, the tax shall be due on the day on which 46 the return is required to be filed. 47 2. The wholesaler shall maintain such records in such form as the 48 commissioner may require regarding such items as: where the wholesaler 49 is not the cultivator, the weight of the cannabis flower and cannabis 50 trim transferred to it by a cultivator or, where the wholesaler is the 51 cultivator, the weight of such flower and trim produced by it; the 52 geographic location of every retail dispensary to which it sold adult- 53 use cannabis products; and any other record or information required by 54 the commissioner. This information must be kept by such person for a 55 period of three years after the return was filed.S. 1509--A 183 A. 2009--A 1 (b) The provisions of article twenty-seven of this chapter shall apply 2 to the tax imposed by this article in the same manner and with the same 3 force and effect as if the language of such article had been incorpo- 4 rated in full into this section and had expressly referred to the tax 5 imposed by this article, except to the extent that any provision of such 6 article is either inconsistent with a provision of this article or is 7 not relevant to this article. 8 (c) 1. All taxes, interest, and penalties collected or received by the 9 commissioner under this article shall be deposited and disposed of 10 pursuant to the provisions of section one hundred seventy-one-a of this 11 chapter, provided that an amount equal to one hundred percent collected 12 under this article less any amount determined by the commissioner to be 13 reserved by the comptroller for refunds or reimbursements shall be paid 14 by the comptroller to the credit of the cannabis revenue fund estab- 15 lished by section ninety-nine-ff of the state finance law. Of the total 16 revenue collected or received under this article, the comptroller shall 17 retain such amount as the commissioner may determine to be necessary for 18 refunds. The commissioner is authorized and directed to deduct from the 19 registration fees under subdivision (a) of section four hundred ninety- 20 four of this article, before deposit into the cannabis revenue fund 21 designated by the comptroller, a reasonable amount necessary to effectu- 22 ate refunds of appropriations of the department to reimburse the depart- 23 ment for the costs incurred to administer, collect, and distribute the 24 taxes imposed by this article. 25 2. Notwithstanding the foregoing, the commissioner shall certify to 26 the comptroller the total amount of tax, penalty and interest received 27 by him or her on account of the tax imposed by subdivision (c) of 28 section four hundred ninety-three of this article in trust for and on 29 account of each county in which a retail dispensary is located. On or 30 before the twelfth day of each month, the comptroller, after reserving 31 such refund fund, shall pay to the appropriate fiscal officer of each 32 such county the taxes, penalties and interest received and certified by 33 the commissioner for the preceding calendar month. 34 § 496. Returns to be kept secret. (a) Except in accordance with proper 35 judicial order or as in this section or otherwise provided by law, it 36 shall be unlawful for the commissioner, any officer or employee of the 37 department, or any officer or person who, pursuant to this section, is 38 permitted to inspect any return or report or to whom a copy, an abstract 39 or a portion of any return or report is furnished, or to whom any infor- 40 mation contained in any return or report is furnished, or any person who 41 in any manner may acquire knowledge of the contents of a return or 42 report filed pursuant to this article to divulge or make known in any 43 manner the content or any other information related to the business of 44 the wholesaler contained in any return or report required under this 45 article. The officers charged with the custody of such returns or 46 reports shall not be required to produce any of them or evidence of 47 anything contained in them in any action or proceeding in any court, 48 except on behalf of the state, the office of cannabis management, or the 49 commissioner in an action or proceeding involving the collection of tax 50 due under this chapter to which the state or the commissioner is a party 51 or a claimant or on behalf of any party to any action or proceeding 52 under the provisions of this article, when the returns or the reports or 53 the facts shown thereby are directly involved in such action or proceed- 54 ing, or in an action or proceeding related to the regulation or taxation 55 of adult-use cannabis products on behalf of officers to whom information 56 shall have been supplied as provided in this section, in any of whichS. 1509--A 184 A. 2009--A 1 events the courts may require the production of, and may admit in 2 evidence so much of said returns or reports or of the facts shown there- 3 by as are pertinent to the action or proceeding and no more. Nothing 4 herein shall be construed to prohibit the commissioner, in his or her 5 discretion, from allowing the inspection or delivery of a certified copy 6 of any return or report filed under this article or of any information 7 contained in any such return or report by or to a duly authorized offi- 8 cer or employee of the office of cannabis management or by or to the 9 attorney general or other legal representatives of the state when an 10 action shall have been recommended or commenced pursuant to this chapter 11 in which such returns or reports or the facts shown thereby are directly 12 involved; or the inspection of the returns or reports required under 13 this article by the comptroller or duly designated officer or employee 14 of the state department of audit and control, for purposes of the audit 15 of a refund of any tax paid by the wholesaler under this article; nor to 16 prohibit the delivery to such person or a duly authorized representative 17 of such person, a certified copy of any return or report filed by such 18 person pursuant to this article, nor to prohibit the publication of 19 statistics so classified as to prevent the identification of particular 20 returns or reports and the items thereof. This section shall also not be 21 construed to prohibit the disclosure, for tax administration purposes, 22 to the division of the budget and the office of the state comptroller, 23 of information aggregated from the returns filed by all wholesalers 24 purchasing and selling such products in the state, whether the number of 25 such persons is one or more. Provided further that, notwithstanding the 26 provisions of this subdivision, the commissioner may in his or her 27 discretion, permit the proper officer of any county entitled to receive 28 any distribution of the monies received on account of the tax imposed by 29 subdivision (c) of section four hundred ninety-three of this article, or 30 the authorized representative of such officer, to inspect any return 31 filed under this article, or may furnish to such officer or the offi- 32 cer's authorized representative an abstract of any such return or supply 33 such officer or representative with information concerning an item 34 contained in any such return, or disclosed by any investigation of tax 35 liability under this article. 36 (b) The commissioner, in his or her discretion, may permit the appro- 37 priate officers of any other state that regulates or taxes cannabis or 38 the duly authorized representatives of such commissioner or of any such 39 officers, to inspect returns or reports made pursuant to this article, 40 or may furnish to the commissioner or other officer, or duly authorized 41 representatives, a copy of any such return or report or an abstract of 42 the information therein contained, or any portion thereof, or may supply 43 such commissioner or any such officers or such representatives with 44 information relating to the business of a wholesaler making returns or 45 reports hereunder solely for purposes of tax administration. The commis- 46 sioner may refuse to supply information pursuant to this subdivision to 47 the officers of any other state if the statutes of the state represented 48 by such officers do not grant substantially similar privileges to the 49 commissioner, but such refusal shall not be mandatory. Information shall 50 not be supplied to the appropriate officers of any state that regulates 51 or taxes cannabis, or the duly authorized representatives of such 52 commissioner or of any such officers, unless such commissioner, officer, 53 or other representatives shall agree not to divulge or make known in any 54 manner the information so supplied, but such officers may transmit such 55 information to their employees or legal representatives when necessary,S. 1509--A 185 A. 2009--A 1 who in turn shall be subject to the same restrictions as those hereby 2 imposed upon such commissioner, officer or other representatives. 3 (c) 1. Any officer or employee of the state who willfully violates the 4 provisions of subdivision one or two of this section shall be dismissed 5 from office and be incapable of holding any public office in the state 6 for a period of five years thereafter. 7 2. For criminal penalties, see article thirty-seven of this chapter. 8 § 38. Subdivision (a) of section 1115 of the tax law is amended by 9 adding a new paragraph 3-b to read as follows: 10 (3-b) Adult-use cannabis products as defined by article twenty-C of 11 this chapter. 12 § 39. Section 1825 of the tax law, as amended by section 3 of part NNN 13 of chapter 59 of the laws of 2018, is amended to read as follows: 14 § 1825. Violation of secrecy provisions of the tax law.--Any person 15 who violates the secrecy provisions of [subdivision (b) of section twen-16ty-one, subdivision one of section two hundred two, subdivision eight of17section two hundred eleven, subdivision (a) of section three hundred18fourteen, subdivision one or two of section four hundred thirty-seven,19section four hundred eighty-seven, subdivision one or two of section20five hundred fourteen, subsection (e) of section six hundred ninety-sev-21en, subsection (a) of section nine hundred ninety-four, subdivision (a)22of section eleven hundred forty-six, section twelve hundred eighty-sev-23en, section twelve hundred ninety-six, section twelve hundred ninety-24nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi-25sion (a) of section fifteen hundred eighteen, subdivision (a) of section26fifteen hundred fifty-five of] this chapter, [and] or subdivision (e) of 27 section 11-1797 of the administrative code of the city of New York shall 28 be guilty of a misdemeanor. 29 § 40. Section 12 of chapter 90 of the laws of 2014 amending the public 30 health law, the tax law, the state finance law, the general business 31 law, the penal law and the criminal procedure law relating to medical 32 use of marihuana, is amended to read as follows: 33 § 12. This act shall take effect immediately [and]; provided, however 34 that sections one, three, five, six, seven-a, eight, nine, ten and elev- 35 en of this act shall expire and be deemed repealed seven years after 36 such date; provided that the amendments to section 171-a of the tax law 37 made by section seven of this act shall take effect on the same date and 38 in the same manner as section 54 of part A of chapter 59 of the laws of 39 2014 takes effect and shall not expire and be deemed repealed; and 40 provided, further, that the amendments to subdivision 5 of section 41 410.91 of the criminal procedure law made by section eleven of this act 42 shall not affect the expiration and repeal of such section and shall 43 expire and be deemed repealed therewith. 44 § 41. The office of cannabis management, in consultation with the 45 division of the budget, the department of taxation and finance, the 46 department of health, office of alcoholism and substance abuse services, 47 office of mental health, New York state police and the division of crim- 48 inal justice services, shall conduct a study of the effectiveness of 49 this act. Such study shall examine all aspects of this act, including 50 economic and fiscal impacts, the impact on the public health and safety 51 of New York residents and the progress made in achieving social justice 52 goals and toward eliminating the illegal market for cannabis products in 53 New York. The office shall make recommendations regarding the appropri- 54 ate level of taxation of adult-use cannabis, as well as changes, if any, 55 necessary to improve and protect the public health and safety of New 56 Yorkers. Such study shall be conducted two years after the effectiveS. 1509--A 186 A. 2009--A 1 date of this act and shall be presented to the governor, the majority 2 leader of the senate and the speaker of the assembly, no later than 3 October 1, 2022. 4 § 42. Section 102 of the alcoholic beverage control law is amended by 5 adding a new subdivision 8 to read as follows: 6 8. No alcoholic beverage retail licensee shall sell cannabis, nor have 7 or possess a license or permit to sell cannabis, on the same premises 8 where alcoholic beverages are sold. 9 § 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the 10 general obligations law, as added by chapter 406 of the laws of 2000, 11 are amended to read as follows: 12 1. "Illegal drug" means any controlled substance [or marijuana] the 13 possession of which is an offense under the public health law or the 14 penal law. 15 4. "Grade one violation" means possession of one-quarter ounce or 16 more, but less than four ounces, or distribution of less than one ounce 17 of an illegal drug [other than marijuana, or possession of one pound or18twenty-five plants or more, but less than four pounds or fifty plants,19or distribution of less than one pound of marijuana]. 20 5. "Grade two violation" means possession of four ounces or more, but 21 less than eight ounces, or distribution of one ounce or more, but less 22 than two ounces, of an illegal drug [other than marijuana, or possession23of four pounds or more or fifty plants or distribution of more than one24pound but less than ten pounds of marijuana]. 25 6. "Grade three violation" means possession of eight ounces or more, 26 but less than sixteen ounces, or distribution of two ounces or more, but 27 less than four ounces, of a specified illegal drug [or possession of28eight pounds or more or seventy-five plants or more, but less than29sixteen pounds or one hundred plants, or distribution of more than five30pounds but less than ten pounds of marijuana]. 31 7. "Grade four violation" means possession of sixteen ounces or more 32 or distribution of four ounces or more of a specified illegal drug [or33possession of sixteen pounds or more or one hundred plants or more or34distribution of ten pounds or more of marijuana]. 35 13. "Drug trafficker" means a person convicted of a class A or class B 36 felony controlled substance [or marijuana offense] who, in connection 37 with the criminal conduct for which he or she stands convicted, 38 possessed, distributed, sold or conspired to sell a controlled substance 39 [or marijuana] which, by virtue of its quantity, the person's prominent 40 role in the enterprise responsible for the sale or distribution of such 41 controlled substance and other circumstances related to such criminal 42 conduct indicate that such person's criminal possession, sale or 43 conspiracy to sell such substance was not an isolated occurrence and was 44 part of an ongoing pattern of criminal activity from which such person 45 derived substantial income or resources and in which such person played 46 a leadership role. 47 § 44. Paragraph (g) of subdivision 1 of section 488 of the social 48 services law, as added by section 1 of part B of chapter 501 of the laws 49 of 2012, is amended to read as follows: 50 (g) "Unlawful use or administration of a controlled substance," which 51 shall mean any administration by a custodian to a service recipient of: 52 a controlled substance as defined by article thirty-three of the public 53 health law, without a prescription; or other medication not approved for 54 any use by the federal food and drug administration, except for the 55 administration of medical cannabis when such administration is in 56 accordance with article three of the cannabis law and any regulationsS. 1509--A 187 A. 2009--A 1 promulgated thereunder as well as the rules, regulations, policies, or 2 procedures of the state oversight agency or agencies governing such 3 custodians. It also shall include a custodian unlawfully using or 4 distributing a controlled substance as defined by article thirty-three 5 of the public health law, at the workplace or while on duty. 6 § 45. Paragraphs (e) and (f) of subdivision 1 of section 490 of the 7 social services law, as added by section 1 of part B of chapter 501 of 8 the laws of 2012, are amended and a new paragraph (g) is added to read 9 as follows: 10 (e) information regarding individual reportable incidents, incident 11 patterns and trends, and patterns and trends in the reporting and 12 response to reportable incidents is shared, consistent with applicable 13 law, with the justice center, in the form and manner required by the 14 justice center and, for facilities or provider agencies that are not 15 state operated, with the applicable state oversight agency which shall 16 provide such information to the justice center; [and] 17 (f) incident review committees are established; provided, however, 18 that the regulations may authorize an exemption from this requirement, 19 when appropriate, based on the size of the facility or provider agency 20 or other relevant factors. Such committees shall be composed of members 21 of the governing body of the facility or provider agency and other 22 persons identified by the director of the facility or provider agency, 23 including some members of the following: direct support staff, licensed 24 health care practitioners, service recipients and representatives of 25 family, consumer and other advocacy organizations, but not the director 26 of the facility or provider agency. Such committee shall meet regularly 27 to: (i) review the timeliness, thoroughness and appropriateness of the 28 facility or provider agency's responses to reportable incidents; (ii) 29 recommend additional opportunities for improvement to the director of 30 the facility or provider agency, if appropriate; (iii) review incident 31 trends and patterns concerning reportable incidents; and (iv) make 32 recommendations to the director of the facility or provider agency to 33 assist in reducing reportable incidents. Members of the committee shall 34 be trained in confidentiality laws and regulations, and shall comply 35 with section seventy-four of the public officers law[.]; and 36 (g) safe storage, administration, and diversion prevention policies 37 regarding controlled substances and medical marihuana. 38 § 46. Subdivision 1 of section 505 of the agriculture and markets law, 39 as added by chapter 524 of the laws of 2014, is amended to read as 40 follows: 41 1. "Industrial hemp" means the plant Cannabis sativa L. and any part 42 of such plant, including the seeds thereof and all derivatives, 43 extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 44 whether growing or not, with a delta-9 tetrahydrocannabinol concen- 45 tration of not more than 0.3 percent on a dry weight basis. 46 § 47. Section 506 of the agriculture and markets law, as amended by 47 section 1 of part OO of chapter 58 of the laws of 2017, is amended to 48 read as follows: 49 § 506. Growth, sale, distribution, transportation and processing of 50 industrial hemp and products derived from such hemp permitted. [Notwith-51standing any provision of law to the contrary, industrial] 1. Industrial 52 hemp and products derived from such hemp are agricultural products which 53 may be grown, produced [and], possessed [in the state, and], sold, 54 distributed, transported [or] and/or processed [either] in [or out of] 55 state [as part of agricultural pilot programs pursuant to authorization56under federal law and the provisions of this article] pursuant toS. 1509--A 188 A. 2009--A 1 authorization under federal law, the provisions of this article and/or 2 the the cannabis law. [Notwithstanding any provision of law to the3contrary restricting the growing or cultivating, sale, distribution,4transportation or processing of industrial hemp and products derived5from such hemp, and subject to authorization under federal law, the] 6 2. The commissioner may authorize the growing or cultivating of indus- 7 trial hemp as part of agricultural pilot programs conducted by the 8 department and/or an institution of higher education to study the growth 9 and cultivation, sale, distribution, transportation and processing of 10 such hemp and products derived from such hemp provided that the sites 11 and programs used for growing or cultivating industrial hemp are certi- 12 fied by, and registered with, the department. 13 3. In addition to the department's licensing authority hereinafter 14 provided in this article, the office of cannabis management shall 15 license and regulate the growth, extraction, processing and/or manufac- 16 turing of hemp for derivatives, extracts, cannabinoids, isomers, acids, 17 salts and salts or isomers and/or hemp products for human or animal 18 consumption or use (except for those food and/or food ingredients that 19 are generally recognized as safe). 20 4. Nothing in this section shall limit the jurisdiction of the depart- 21 ment under any other article of the agriculture and markets law. 22 § 48. Section 507 of the agriculture and markets law is REPEALED and a 23 new section 507 is added to read as follows: 24 § 507. Licensing; fees. 1. No person shall: (a) grow industrial hemp 25 in the state and/or sell or distribute industrial hemp grown in the 26 state unless licensed biennially by the commissioner or (b) grow, proc- 27 ess and/or produce industrial hemp and products derived from hemp in the 28 state or sell or distribute unless authorized by the commissioner as 29 part of an agricultural research pilot program established under this 30 article. 31 2. Application for a license to grow industrial hemp shall be made 32 upon a form prescribed by the commissioner, accompanied by a non-refund- 33 able application fee of five hundred dollars. 34 3. The applicant shall furnish evidence of his or her good character, 35 experience and competency, that the applicant has adequate facilities, 36 equipment, process controls, testing capability and security to grow 37 hemp. 38 4. Growers who intend to cultivate hemp for cannabinoids shall also be 39 required to obtain a license from the office of cannabis management. 40 5. A renewal application shall be submitted to the commissioner at 41 least thirty days prior to the commencement of the next license period. 42 § 49. Section 508 of the agriculture and markets law is REPEALED and a 43 new section 508 is added to read as follows: 44 § 508. Compliance action plan. If the commissioner determines, after 45 notice and an opportunity for hearing, that a licensee has negligently 46 violated a provision of this article, that licensee shall be required to 47 comply with a corrective action plan established by the commissioner to 48 correct the violation by a reasonable date and to periodically report to 49 the commissioner with respect to the licensee's compliance with this 50 article for a period of no less than the next two calendar years follow- 51 ing the commencement date of the compliance action plan. The provisions 52 of this section shall not be applicable to research partners conducting 53 hemp research pursuant to a research partner agreement, the terms of 54 which shall control. 55 § 50. Section 509 of the agriculture and markets law is REPEALED and a 56 new section 509 is added to read as follows:S. 1509--A 189 A. 2009--A 1 § 509. Granting, suspending or revoking licenses. The commissioner 2 may decline to grant a new license, may decline to renew a license, may 3 suspend or revoke a license already granted after due notice and oppor- 4 tunity for hearing whenever he or she finds that: 5 (1) any statement contained in an application for an applicant or 6 licensee is or was false or misleading; 7 (2) the applicant or licensee does not have good character, the 8 required experience and/or competency, adequate facilities, equipment, 9 process controls, testing capability and/or security to produce hemp or 10 products derived from hemp; 11 (3) the applicant or licensee has failed or refused to produce any 12 records or provide any information demanded by the commissioner reason- 13 ably related to the administration and enforcement of this article; or 14 (4) the applicant or licensee, or any officer, director, partner, 15 holder of ten percent of the voting stock, or any other person exercis- 16 ing any position of management or control has failed to comply with any 17 of the provisions of this article or rules and regulations promulgated 18 pursuant thereto. 19 § 51. Section 510 of the agriculture and markets law is REPEALED and a 20 new section 510 is added to read as follows: 21 § 510. Regulations. The commissioner may develop regulations consist- 22 ent with the provisions of this article for the growing and cultivation, 23 sale, distribution, and transportation of industrial hemp grown in the 24 state, including: 25 (a) the authorization or licensing of any person who may: acquire or 26 possess hemp plants or seeds; grow or cultivate hemp plants; and/or 27 sell, purchase, distribute, or transport such plants, plant parts, or 28 seeds; 29 (b) maintaining relevant information regarding land on which indus- 30 trial hemp is produced within the state, including the legal description 31 of the land, for a period of not less than three calendar years; 32 (c) the procedure for testing of industrial hemp produced in the state 33 for delta-9 tetrahydrocannabinol levels, using post decarboxylation or 34 other similarly reliable methods; 35 (d) the procedure for effective disposal of industrial hemp plants or 36 products derived from hemp that are produced in violation of this arti- 37 cle; 38 (e) a procedure for conducting at least a random sample of industrial 39 hemp producers to verify that hemp is not produced in violation of this 40 article; 41 (f) any required security measures; and 42 (g) such other and further regulation as the commissioner deems appro- 43 priate or necessary. 44 § 52. Section 511 of the agriculture and markets law is REPEALED and a 45 new section 511 is added to read as follows: 46 § 511. Prohibitions. Except as authorized by state law, and regu- 47 lations promulgated thereunder, the growth, cultivation, processing, 48 sale, and/or distribution of industrial hemp is prohibited. 49 § 53. Section 512 of the agriculture and markets law is REPEALED and a 50 new section 512 is added to read as follows: 51 § 512. Industrial hemp data collection and best farming practices. 52 The commissioner shall have the power to collect and publish data and 53 research concerning, among other things, the growth, cultivation, 54 production and processing methods of industrial hemp and products 55 derived from industrial hemp and work with the cornell cooperative 56 extension to promote best farming practices for industrial hemp whichS. 1509--A 190 A. 2009--A 1 are compatible with state water quality and other environmental objec- 2 tives. 3 § 54. Sections 513 and 514 of the agriculture and markets law are 4 REPEALED and a new section 513 is added to read as follows: 5 § 513. Access to criminal history information through the division of 6 criminal justice services. In connection with the administration of 7 this article, the commissioner is authorized to request, receive and 8 review criminal history information through the division of criminal 9 justice services (division) with respect to any person seeking a license 10 or authorization to undertake a hemp pilot project. At the commission- 11 er's request, each researcher, principal and/or officer of the applicant 12 shall submit to the department his or her fingerprints in such form and 13 in such manner as specified by the division, for the purpose of conduct- 14 ing a criminal history search and returning a report thereon in accord- 15 ance with the procedures and requirements established by the division 16 pursuant to the provisions of article thirty-five of the executive law, 17 which shall include the payment of the prescribed processing fees for 18 the cost of the division's full search and retain procedures and a 19 national criminal history record check. The commissioner, or his or her 20 designee, shall submit such fingerprints and the processing fee to the 21 division. The division shall forward to the commissioner a report with 22 respect to the applicant's previous criminal history, if any, or a 23 statement that the applicant has no previous criminal history according 24 to its files. Fingerprints submitted to the division of criminal justice 25 services pursuant to this subdivision may also be submitted to the 26 federal bureau of investigation for a national criminal history record 27 check. If additional copies of fingerprints are required, the applicant 28 shall furnish them upon request. 29 § 55. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal 30 law, as added by chapter 90 of the laws of 2014, are amended to read as 31 follows: 32 § 179.00 Criminal diversion of medical [marihuana] cannabis; defi- 33 nitions. 34 The following definitions are applicable to this article: 35 1. "Medical [marihuana] cannabis" means medical [marihuana] cannabis 36 as defined in [subdivision eight of section thirty-three hundred sixty37of the public health law] section three of the cannabis law. 38 2. "Certification" means a certification, made under section [thirty-39three hundred sixty-one of the public health law] thirty of the cannabis 40 law. 41 § 179.05 Criminal diversion of medical [marihuana] cannabis; limita- 42 tions. 43 The provisions of this article shall not apply to: 44 1. a practitioner authorized to issue a certification who acted in 45 good faith in the lawful course of his or her profession; or 46 2. a registered organization as that term is defined in [subdivision47nine of section thirty-three hundred sixty of the public health law] 48 section thirty-four of the cannabis law who acted in good faith in the 49 lawful course of the practice of pharmacy; or 50 3. a person who acted in good faith seeking treatment for a medical 51 condition or assisting another person to obtain treatment for a medical 52 condition. 53 § 179.10 Criminal diversion of medical [marihuana] cannabis in the first 54 degree. 55 A person is guilty of criminal diversion of medical [marihuana] canna- 56 bis in the first degree when he or she is a practitioner, as that termS. 1509--A 191 A. 2009--A 1 is defined in [subdivision twelve of section thirty-three hundred sixty2of the public health law] section three of the cannabis law, who issues 3 a certification with knowledge of reasonable grounds to know that (i) 4 the recipient has no medical need for it, or (ii) it is for a purpose 5 other than to treat a serious condition as defined in [subdivision seven6of section thirty-three hundred sixty of the public health law] section 7 three of the cannabis law. 8 Criminal diversion of medical [marihuana] cannabis in the first degree 9 is a class E felony. 10 § 179.11 Criminal diversion of medical [marihuana] cannabis in the 11 second degree. 12 A person is guilty of criminal diversion of medical [marihuana] canna- 13 bis in the second degree when he or she sells, trades, delivers, or 14 otherwise provides medical [marihuana] cannabis to another with know- 15 ledge or reasonable grounds to know that the recipient is not registered 16 under [title five-A of article thirty-three of the public health law] 17 article three of the cannabis law. 18 Criminal diversion of medical [marihuana] cannabis in the second 19 degree is a class B misdemeanor. 20 § 179.15 Criminal retention of medical [marihuana] cannabis. 21 A person is guilty of criminal retention of medical [marihuana] canna- 22 bis when, being a certified patient or designated caregiver, as those 23 terms are defined in [subdivisions three and five of section thirty-24three hundred sixty of the public health law, respectively] section 25 three of the cannabis law, he or she knowingly obtains, possesses, 26 stores or maintains an amount of [marihuana] cannabis in excess of the 27 amount he or she is authorized to possess under the provisions of [title28five-A of article thirty-three of the public health law] article three 29 of the cannabis law. 30 Criminal retention of medical [marihuana] cannabis is a class A misde- 31 meanor. 32 § 56. Section 220.78 of the penal law, as added by chapter 154 of the 33 laws of 2011, is amended to read as follows: 34 § 220.78 Witness or victim of drug or alcohol overdose. 35 1. A person who, in good faith, seeks health care for someone who is 36 experiencing a drug or alcohol overdose or other life threatening 37 medical emergency shall not be charged or prosecuted for a controlled 38 substance offense under article two hundred twenty or a [marihuana] 39 cannabis offense under article two hundred twenty-one of this title, 40 other than an offense involving sale for consideration or other benefit 41 or gain, or charged or prosecuted for possession of alcohol by a person 42 under age twenty-one years under section sixty-five-c of the alcoholic 43 beverage control law, or for possession of drug paraphernalia under 44 article thirty-nine of the general business law, with respect to any 45 controlled substance, [marihuana] cannabis, alcohol or paraphernalia 46 that was obtained as a result of such seeking or receiving of health 47 care. 48 2. A person who is experiencing a drug or alcohol overdose or other 49 life threatening medical emergency and, in good faith, seeks health care 50 for himself or herself or is the subject of such a good faith request 51 for health care, shall not be charged or prosecuted for a controlled 52 substance offense under this article or a [marihuana] cannabis offense 53 under article two hundred twenty-one of this title, other than an 54 offense involving sale for consideration or other benefit or gain, or 55 charged or prosecuted for possession of alcohol by a person under age 56 twenty-one years under section sixty-five-c of the alcoholic beverageS. 1509--A 192 A. 2009--A 1 control law, or for possession of drug paraphernalia under article thir- 2 ty-nine of the general business law, with respect to any substance, 3 [marihuana] cannabis, alcohol or paraphernalia that was obtained as a 4 result of such seeking or receiving of health care. 5 3. Definitions. As used in this section the following terms shall have 6 the following meanings: 7 (a) "Drug or alcohol overdose" or "overdose" means an acute condition 8 including, but not limited to, physical illness, coma, mania, hysteria 9 or death, which is the result of consumption or use of a controlled 10 substance or alcohol and relates to an adverse reaction to or the quan- 11 tity of the controlled substance or alcohol or a substance with which 12 the controlled substance or alcohol was combined; provided that a 13 patient's condition shall be deemed to be a drug or alcohol overdose if 14 a prudent layperson, possessing an average knowledge of medicine and 15 health, could reasonably believe that the condition is in fact a drug or 16 alcohol overdose and (except as to death) requires health care. 17 (b) "Health care" means the professional services provided to a person 18 experiencing a drug or alcohol overdose by a health care professional 19 licensed, registered or certified under title eight of the education law 20 or article thirty of the public health law who, acting within his or her 21 lawful scope of practice, may provide diagnosis, treatment or emergency 22 services for a person experiencing a drug or alcohol overdose. 23 4. It shall be an affirmative defense to a criminal sale controlled 24 substance offense under this article or a criminal sale of [marihuana] 25 cannabis offense under article two hundred twenty-one of this title, not 26 covered by subdivision one or two of this section, with respect to any 27 controlled substance or [marihuana] cannabis which was obtained as a 28 result of such seeking or receiving of health care, that: 29 (a) the defendant, in good faith, seeks health care for someone or for 30 him or herself who is experiencing a drug or alcohol overdose or other 31 life threatening medical emergency; and 32 (b) the defendant has no prior conviction for the commission or 33 attempted commission of a class A-I, A-II or B felony under this arti- 34 cle. 35 5. Nothing in this section shall be construed to bar the admissibility 36 of any evidence in connection with the investigation and prosecution of 37 a crime with regard to another defendant who does not independently 38 qualify for the bar to prosecution or for the affirmative defense; nor 39 with regard to other crimes committed by a person who otherwise quali- 40 fies under this section; nor shall anything in this section be construed 41 to bar any seizure pursuant to law, including but not limited to pursu- 42 ant to section thirty-three hundred eighty-seven of the public health 43 law. 44 6. The bar to prosecution described in subdivisions one and two of 45 this section shall not apply to the prosecution of a class A-I felony 46 under this article, and the affirmative defense described in subdivision 47 four of this section shall not apply to the prosecution of a class A-I 48 or A-II felony under this article. 49 § 57. Subdivision 1 of section 260.20 of the penal law, as amended by 50 chapter 362 of the laws of 1992, is amended as follows: 51 1. He knowingly permits a child less than eighteen years old to enter 52 or remain in or upon a place, premises or establishment where sexual 53 activity as defined by article one hundred thirty, two hundred thirty or 54 two hundred sixty-three of this [chapter] part or activity involving 55 controlled substances as defined by article two hundred twenty of this 56 [chapter or involving marihuana as defined by article two hundred twen-S. 1509--A 193 A. 2009--A 1ty-one of this chapter] part is maintained or conducted, and he knows or 2 has reason to know that such activity is being maintained or conducted; 3 or 4 § 58. Section 89-h of the state finance law, as added by chapter 90 of 5 the laws of 2014, is amended to read as follows: 6 § 89-h. Medical [marihuana] cannabis trust fund. 1. There is hereby 7 established in the joint custody of the state comptroller and the 8 commissioner of taxation and finance a special fund to be known as the 9 "medical [marihuana] cannabis trust fund." 10 2. The medical [marihuana] cannabis trust fund shall consist of all 11 moneys required to be deposited in the medical [marihuana] cannabis 12 trust fund pursuant to the provisions of section four hundred ninety of 13 the tax law. 14 3. The moneys in the medical [marihuana] cannabis trust fund shall be 15 kept separate and shall not be commingled with any other moneys in the 16 custody of the commissioner of taxation and finance and the state comp- 17 troller. 18 4. The moneys of the medical [marihuana] cannabis trust fund, follow- 19 ing appropriation by the legislature, shall be allocated upon a certif- 20 icate of approval of availability by the director of the budget as 21 follows: (a) Twenty-two and five-tenths percent of the monies shall be 22 transferred to the counties in New York state in which the medical 23 [marihuana] cannabis was manufactured and allocated in proportion to the 24 gross sales originating from medical [marihuana] cannabis manufactured 25 in each such county; (b) twenty-two and five-tenths percent of the 26 moneys shall be transferred to the counties in New York state in which 27 the medical [marihuana] cannabis was dispensed and allocated in propor- 28 tion to the gross sales occurring in each such county; (c) five percent 29 of the monies shall be transferred to the office of alcoholism and 30 substance abuse services, which shall use that revenue for additional 31 drug abuse prevention, counseling and treatment services; and (d) five 32 percent of the revenue received by the department shall be transferred 33 to the division of criminal justice services, which shall use that 34 revenue for a program of discretionary grants to state and local law 35 enforcement agencies that demonstrate a need relating to [title five-A36of article thirty-three of the public health law] article three of the 37 cannabis law; said grants could be used for personnel costs of state and 38 local law enforcement agencies. For purposes of this subdivision, the 39 city of New York shall be deemed to be a county. 40 § 59. Intentionally omitted. 41 § 60. The state finance law is amended by adding a new section 99-ff 42 to read as follows: 43 § 99-ff. New York state cannabis revenue fund. 1. There is hereby 44 established in the joint custody of the state comptroller and the 45 commissioner of taxation and finance a special fund to be known as the 46 "New York state cannabis revenue fund" (the "fund"). 47 2. Monies in the fund shall be kept separate from and shall not be 48 commingled with any other monies in the custody of the comptroller or 49 the commissioner of taxation and finance. Provided, however that any 50 monies of the fund not required for immediate use may, at the discretion 51 of the comptroller, in consultation with the director of the budget, be 52 invested by the comptroller in obligations of the United States or the 53 state. The proceeds of any such investment shall be retained by the fund 54 as assets to be used for purposes of the fund. 55 3. Except as set forth in subdivisions two and four of this section, 56 monies from the fund shall not be used to make payments for any purposeS. 1509--A 194 A. 2009--A 1 other than the purposes set forth in subdivisions two and four of this 2 section. 3 4. The "New York state cannabis revenue fund" shall consist of monies 4 received by the commissioner of taxation and finance pursuant to subdi- 5 visions (a) and (b) of section four hundred ninety-three of the tax law 6 and all other monies credited or transferred thereto from any other fund 7 or source. Monies of such fund shall be expended for the following 8 purposes: administration of the regulated cannabis program, data gather- 9 ing, monitoring and reporting, the governor's traffic safety committee, 10 small business development and loans, substance abuse, harm reduction 11 and mental health treatment and prevention, public health education and 12 intervention, research on cannabis uses and applications, program evalu- 13 ation and improvements, and any other identified purpose recommended by 14 the executive director of the office of cannabis management and approved 15 by the director of the budget. 16 § 61. Subdivision 2 of section 3371 of the public health law, as 17 amended by chapter 90 of the laws of 2014, is amended to read as 18 follows: 19 2. The prescription monitoring program registry may be accessed, under 20 such terms and conditions as are established by the department for 21 purposes of maintaining the security and confidentiality of the informa- 22 tion contained in the registry, by: 23 (a) a practitioner, or a designee authorized by such practitioner 24 pursuant to paragraph (b) of subdivision two of section thirty-three 25 hundred forty-three-a or section thirty-three hundred sixty-one of this 26 article, for the purposes of: (i) informing the practitioner that a 27 patient may be under treatment with a controlled substance by another 28 practitioner; (ii) providing the practitioner with notifications of 29 controlled substance activity as deemed relevant by the department, 30 including but not limited to a notification made available on a monthly 31 or other periodic basis through the registry of controlled substances 32 activity pertaining to his or her patient; (iii) allowing the practi- 33 tioner, through consultation of the prescription monitoring program 34 registry, to review his or her patient's controlled substances history 35 as required by section thirty-three hundred forty-three-a [or section36thirty-three hundred sixty-one] of this article; and (iv) providing to 37 his or her patient, or person authorized pursuant to paragraph (j) of 38 subdivision one of this section, upon request, a copy of such patient's 39 controlled substance history as is available to the practitioner through 40 the prescription monitoring program registry; or 41 (b) a pharmacist, pharmacy intern or other designee authorized by the 42 pharmacist pursuant to paragraph (b) of subdivision three of section 43 thirty-three hundred forty-three-a of this article, for the purposes of: 44 (i) consulting the prescription monitoring program registry to review 45 the controlled substances history of an individual for whom one or more 46 prescriptions for controlled substances or certifications for marihuana 47 is presented to the pharmacist, pursuant to section thirty-three hundred 48 forty-three-a of this article; and (ii) receiving from the department 49 such notifications of controlled substance activity as are made avail- 50 able by the department; or 51 (c) an individual employed by a registered organization for the 52 purpose of consulting the prescription monitoring program registry to 53 review the controlled substances history of an individual for whom one 54 or more certifications for [marihuana] cannabis is presented to that 55 registered organization[, pursuant to section thirty-three hundred56sixty-four of this article]. Unless otherwise authorized by this arti-S. 1509--A 195 A. 2009--A 1 cle, an individual employed by a registered organization will be 2 provided access to the prescription monitoring program in the sole 3 discretion of the commissioner. 4 § 62. Subdivision 3 of section 853 of the general business law, as 5 added by chapter 90 of the laws of 2014, is amended to read as follows: 6 3. This article shall not apply to any sale, furnishing or possession 7 which is for a lawful purpose under [title five-A of article thirty-8three of the public health law] the cannabis law. 9 § 63. Subdivision 5 of section 410.91 of the criminal procedure law, 10 as amended by chapter 90 of the laws of 2014, is amended to read as 11 follows: 12 5. For the purposes of this section, a "specified offense" is an 13 offense defined by any of the following provisions of the penal law: 14 burglary in the third degree as defined in section 140.20, criminal 15 mischief in the third degree as defined in section 145.05, criminal 16 mischief in the second degree as defined in section 145.10, grand larce- 17 ny in the fourth degree as defined in subdivision one, two, three, four, 18 five, six, eight, nine or ten of section 155.30, grand larceny in the 19 third degree as defined in section 155.35 (except where the property 20 consists of one or more firearms, rifles or shotguns), unauthorized use 21 of a vehicle in the second degree as defined in section 165.06, criminal 22 possession of stolen property in the fourth degree as defined in subdi- 23 vision one, two, three, five or six of section 165.45, criminal 24 possession of stolen property in the third degree as defined in section 25 165.50 (except where the property consists of one or more firearms, 26 rifles or shotguns), forgery in the second degree as defined in section 27 170.10, criminal possession of a forged instrument in the second degree 28 as defined in section 170.25, unlawfully using slugs in the first degree 29 as defined in section 170.60, criminal diversion of medical [marihuana] 30 cannabis in the first degree as defined in section 179.10 or an attempt 31 to commit any of the aforementioned offenses if such attempt constitutes 32 a felony offense; or a class B felony offense defined in article two 33 hundred twenty where a sentence is imposed pursuant to paragraph (a) of 34 subdivision two of section 70.70 of the penal law; or any class C, class 35 D or class E controlled substance [or marihuana] cannabis felony offense 36 as defined in article two hundred twenty or two hundred twenty-one. 37 § 63-a. Subdivision 5 of section 410.91 of the criminal procedure law, 38 as amended by section 8 of part AAA of chapter 56 of the laws of 2009, 39 is amended to read as follows: 40 5. For the purposes of this section, a "specified offense" is an 41 offense defined by any of the following provisions of the penal law: 42 burglary in the third degree as defined in section 140.20, criminal 43 mischief in the third degree as defined in section 145.05, criminal 44 mischief in the second degree as defined in section 145.10, grand larce- 45 ny in the fourth degree as defined in subdivision one, two, three, four, 46 five, six, eight, nine or ten of section 155.30, grand larceny in the 47 third degree as defined in section 155.35 (except where the property 48 consists of one or more firearms, rifles or shotguns), unauthorized use 49 of a vehicle in the second degree as defined in section 165.06, criminal 50 possession of stolen property in the fourth degree as defined in subdi- 51 vision one, two, three, five or six of section 165.45, criminal 52 possession of stolen property in the third degree as defined in section 53 165.50 (except where the property consists of one or more firearms, 54 rifles or shotguns), forgery in the second degree as defined in section 55 170.10, criminal possession of a forged instrument in the second degree 56 as defined in section 170.25, unlawfully using slugs in the first degreeS. 1509--A 196 A. 2009--A 1 as defined in section 170.60, or an attempt to commit any of the afore- 2 mentioned offenses if such attempt constitutes a felony offense; or a 3 class B felony offense defined in article two hundred twenty where a 4 sentence is imposed pursuant to paragraph (a) of subdivision two of 5 section 70.70 of the penal law; or any class C, class D or class E 6 controlled substance or [marihuana] cannabis felony offense as defined 7 in article two hundred twenty or two hundred twenty-one. 8 § 63-b. The criminal procedure law is amended by adding a new section 9 440.46-a to read as follows: 10 § 440.46-a motion for resentence; persons convicted of certain mari- 11 huana offenses. 1. A person currently serving a sentence for a 12 conviction, whether by trial or by open or negotiated plea, who would 13 not have been guilty of an offense or who would have been guilty of a 14 lesser offense on and after the effective date of this section had this 15 section been in effect at the time of his or her conviction may petition 16 for a recall or dismissal of sentence before the trial court that 17 entered the judgment of conviction in his or her case to request resen- 18 tencing or dismissal in accordance with article two hundred twenty-one 19 of the penal law. 2. Upon receiving a motion under subdivision one of 20 this section the court shall presume the movant satisfies the criteria 21 in subdivision one of this section unless the party opposing the motion 22 proves by clear and convincing evidence that the movant does not satisfy 23 the criteria. If the movant satisfies the criteria in subdivision one of 24 this section, the court shall grant the motion to vacate the sentence or 25 to resentence because it is legally invalid. In exercising its 26 discretion, the court may consider, but shall not be limited to, the 27 following: a) the movant's criminal conviction history, including the 28 type of crimes committed, the extent of injury to victims, the length of 29 prior prison commitments, and the remoteness of the crimes. (b) the 30 movant's disciplinary record and record of rehabilitation while incar- 31 cerated. 3. A person who is serving a sentence and resentenced pursuant 32 to subdivision two of this section shall be given credit for any time 33 already served and shall be subject to supervision for one year follow- 34 ing completion of his or her time in custody or shall be subject to 35 whatever supervision time he or she would have otherwise been subject to 36 after release, whichever is shorter, unless the court, in its 37 discretion, as part of its resentencing order, releases the person from 38 supervision. Such person is subject to parole supervision under section 39 60.04 of the penal law or post-release supervision under section 70.45 40 of the penal law by the designated agency and the jurisdiction of the 41 court in the county in which the offender is released or resides, or in 42 which an alleged violation of supervision has occurred, for the purpose 43 of hearing petitions to revoke supervision and impose a term of custody. 44 4. Under no circumstances may resentencing under this section result in 45 the imposition of a term longer than the original sentence, or the rein- 46 statement of charges dismissed pursuant to a negotiated plea agreement. 47 5. A person who has completed his or her sentence for a conviction under 48 the former article two hundred twenty-one of the penal law, whether by 49 trial or open or negotiated plea, who would not have been guilty of an 50 offense or who would have been guilty of a lesser offense on and after 51 the effective date of this section had this section been in effect at 52 the time of his or her conviction, may file an application before the 53 trial court that entered the judgment of conviction in his or her case 54 to have the conviction, in accordance with article two hundred twenty- 55 one of the penal law:(a) dismissed because the prior conviction is now 56 legally invalid and sealed in accordance with section 160.50 of thisS. 1509--A 197 A. 2009--A 1 chapter;(b) redesignated (or "reclassified") as a violation and sealed 2 in accordance with section 160.50 of this chapter; or(c) redesignated 3 (reclassified) as a misdemeanor. 6. The court shall presume the peti- 4 tioner satisfies the criteria in subdivision five unless the party 5 opposing the application proves by clear and convincing evidence that 6 the petitioner does not satisfy the criteria in subdivision five. Once 7 the applicant satisfies the criteria in subdivision five, the court 8 shall redesignate (or "reclassify") the conviction as a misdemeanor, 9 redesignate (reclassify) the conviction as a violation and seal the 10 conviction, or dismiss and seal the conviction as legally invalid under 11 this section had this section been in effect at the time of his or her 12 conviction. 7. Unless requested by the applicant, no hearing is neces- 13 sary to grant or deny an application filed under subdivision five of 14 this section. 8. Any felony conviction that is vacated and resentenced 15 under subdivision two or designated as a misdemeanor or violation under 16 subdivision six of this section shall be considered a misdemeanor or 17 violation for all purposes. Any misdemeanor conviction that is vacated 18 and resentenced under subdivision two of this section or designated as a 19 violation under subdivision six of this section shall be considered a 20 violation for all purposes. 9. If the court that originally sentenced 21 the movant is not available, the presiding judge shall designate another 22 judge to rule on the petition or application. 10. Nothing in this 23 section is intended to diminish or abrogate any rights or remedies 24 otherwise available to the petitioner or applicant. 11. Nothing in this 25 and related sections is intended to diminish or abrogate the finality of 26 judgements in any case not falling within the purview of this section. 27 12. The provisions of this section shall apply equally to juvenile 28 delinquency adjudications and dispositions under section five hundred 29 one-e of the executive law if the juvenile would not have been guilty of 30 an offense or would have been guilty of a lesser offense under this 31 section had this section been in effect at the time of his or her 32 conviction. 13. The office of court administration shall promulgate and 33 make available all necessary forms to enable the filing of the petitions 34 and applications provided in this section no later than sixty days 35 following the effective date of this section. 36 § 64. This act shall take effect immediately; provided, however that 37 sections thirty-seven and thirty-eight of this act shall take effect on 38 April 1, 2020, and shall apply on and after such date: (a) to the culti- 39 vation of cannabis flower and cannabis trim transferred by a cultivator 40 who is not a wholesaler; (b) to the cultivation of cannabis flower and 41 cannabis trim sold or transferred to a retail dispensary by a cultivator 42 who is a wholesaler; and (c) to the sale or transfer of adult use canna- 43 bis products to a retail dispensary; provided, further, that the amend- 44 ments to article 179 of the penal law made by section fifty-five of this 45 act shall not affect the repeal of such article and shall be deemed to 46 be repealed therewith; provided further, that the amendments to section 47 89-h of the state finance law made by section fifty-eight of this act 48 shall not affect the repeal of such section and shall be deemed repealed 49 therewith; provided further, that the amendments to section 221.00 of 50 the penal law made by section fifteen of this act shall be subject to 51 the expiration of such section when upon such date the provisions of 52 section fifteen-a of this act shall take effect; provided, however, that 53 the amendments to subdivision 2 of section 3371 of the public health law 54 made by section sixty-one of this act shall not affect the expiration of 55 such subdivision and shall be deemed to expire therewith; provided 56 further, that the amendments to subdivision 3 of section 853 of theS. 1509--A 198 A. 2009--A 1 general business law made by section sixty-two of this act shall not 2 affect the repeal of such subdivision and shall be deemed to be repealed 3 therewith; and provided further, that the amendments to subdivision 5 of 4 section 410.91 of the penal law made by section sixty-three of this act 5 shall be subject to the expiration and reversion of such subdivision 6 when upon such date the provisions of section sixty-three-a of this act 7 shall take effect. 8 PART WW 9 Section 1. Section 1166-a of the tax law, as added by section 1 of 10 part F of chapter 25 of the laws of 2009, is amended to read as follows: 11 § 1166-a. Special supplemental tax on passenger car rentals within the 12 metropolitan commuter transportation district. (a) In addition to the 13 tax imposed under section eleven hundred sixty of this article and in 14 addition to any tax imposed under any other article of this chapter, 15 there is hereby imposed and there shall be paid a tax at the rate of 16 five percent upon the receipts from every rental of a passenger car 17 which is a retail sale of such passenger car within the metropolitan 18 commuter transportation district as defined in [subdivision] subsection 19 (a) of section eight hundred of this chapter. 20 (b) Except to the extent that a passenger car rental described in 21 subdivision (a) of this section, or section eleven hundred sixty-six-b 22 of this article, has already been or will be subject to the tax imposed 23 under such subdivision or section and except as otherwise exempted under 24 this article, there is hereby imposed on every person and there shall be 25 paid a use tax for the use within the metropolitan commuter transporta- 26 tion district as defined in [subdivision] subsection (a) of section 27 eight hundred of this chapter; of any passenger car rented by the user 28 [which] that is a purchase at retail of such passenger car, but not 29 including any lease of a passenger car to which subdivision (i) of 30 section eleven hundred eleven of this chapter applies. For purposes of 31 this [paragraph] subdivision, the tax shall be at the rate of five 32 percent of the consideration given or contracted to be given for such 33 property, or for the use of such property, including any charges for 34 shipping or delivery as described in paragraph three of subdivision (b) 35 of section eleven hundred one of this chapter, but excluding any credit 36 for tangible personal property accepted in part payment and intended for 37 resale. 38 § 2. The tax law is amended by adding a new section 1166-b to read as 39 follows: 40 § 1166-b. Special supplemental tax on passenger car rentals outside of 41 the metropolitan commuter transportation district. (a) In addition to 42 the tax imposed under section eleven hundred sixty of this article and 43 in addition to any tax imposed under any other article of this chapter, 44 there is hereby imposed and there shall be paid a tax at the rate of 45 five percent upon the receipts from every rental of a passenger car that 46 is not subject to the tax described in section eleven hundred 47 sixty-six-a of this article, but which is a retail sale of such passen- 48 ger car within the state. 49 (b) Except to the extent that a passenger car rental described in 50 subdivision (a) of this section or in section eleven hundred 51 sixty-six-a of this article, has already been subject to the tax imposed 52 under such subdivision or section, and except as otherwise exempted 53 under this article, there is hereby imposed on every person and there 54 shall be paid a use tax for the use within the state of any passengerS. 1509--A 199 A. 2009--A 1 car rented by the user that is a purchase at retail of such passenger 2 car, but not including any lease of a passenger car to which subdivision 3 (i) of section eleven hundred eleven of this chapter applies. For 4 purposes of this subdivision, the tax shall be at the rate of five 5 percent of the consideration given or contracted to be given for such 6 property, or for the use of such property, including any charges for 7 shipping or delivery as described in paragraph three of subdivision (b) 8 of section eleven hundred one of this chapter, but excluding any credit 9 for tangible personal property accepted in part payment and intended for 10 resale. 11 § 3. Section 1167 of the tax law, as amended by section 3 of part F of 12 chapter 25 of the laws of 2009, is amended to read as follows: 13 § 1167. Deposit and disposition of revenue. All taxes, interest and 14 penalties collected or received by the commissioner under this article 15 shall be deposited and disposed of pursuant to the provisions of section 16 one hundred seventy-one-a of this chapter, except that after reserving 17 amounts in accordance with such section one hundred seventy-one-a of 18 this chapter, the remainder shall be paid by the comptroller to the 19 credit of the highway and bridge trust fund established by section 20 eighty-nine-b of the state finance law, provided, however[,]: (a) taxes, 21 interest and penalties collected or received pursuant to section eleven 22 hundred sixty-six-a of this article shall be paid to the credit of the 23 metropolitan transportation authority aid trust account of the metropol- 24 itan transportation authority financial assistance fund established by 25 section ninety-two-ff of the state finance law; and (b) taxes, interest 26 and penalties collected or received pursuant to section eleven hundred 27 sixty-six-b of this article shall be paid to the credit of the public 28 transportation systems operating assistance account established by 29 section eighty-eight-a of the state finance law. 30 § 4. This act shall take effect September 1, 2019, and shall apply to 31 rentals of passenger cars commencing on and after such date whether or 32 not under a prior contract; provided, however where such passenger car 33 rentals are billed on a monthly, quarterly or other period basis, the 34 tax imposed by this act shall apply to the rental for such period if 35 more than half of the days included in such period are days subsequent 36 to such effective date. 37 PART XX 38 Section 1. The tax law is amended by adding a new article 20-D to read 39 as follows: 40 ARTICLE 20-D 41 EXCISE TAX ON SALE OF OPIOIDS 42 Section 497. Definitions. 43 498. Imposition of excise tax. 44 499. Returns to be secret. 45 § 497. Definitions. The following terms shall have the following mean- 46 ings when used in this article. 47 (a) "Opioid" shall mean an "opiate" as defined by subdivision twenty- 48 three of section thirty-three hundred two of the public health law and 49 any natural, synthetic, or semisynthetic "narcotic drug" as defined by 50 subdivision twenty-two of such section that has agonist, partial agon- 51 ist, or agonist/antagonist morphine-like activities or effects similar 52 to natural opium alkaloids, and any derivative, congener, or combination 53 thereof listed in schedules II-V of section thirty-three hundred six ofS. 1509--A 200 A. 2009--A 1 the public health law. The term "opioid" shall not mean buprenorphine, 2 methadone, or morphine. 3 (b) "Unit" shall mean a single finished dosage form of an opioid, such 4 as a pill, tablet, capsule, suppository, transdermal patch, buccal film, 5 milliliter of liquid, milligram of topical preparation, or any other 6 form. 7 (c) "Strength per unit" shall mean the amount of opioid in a unit, as 8 measured by weight, volume, concentration or other metric. 9 (d) "Morphine milligram equivalent conversion factor" shall mean that 10 reference standard of a particular opioid as it relates in potency to 11 morphine as determined by the commissioner of health. 12 (e) "Morphine milligram equivalent" shall mean a unit multiplied by 13 its strength per unit multiplied by the morphine milligram equivalent 14 conversion factor. 15 (f) "Registrant" shall mean any person, firm, corporation or associ- 16 ation required to be registered with the education department as a 17 wholesaler, manufacturer, or outsourcing facility pursuant to section 18 sixty-eight hundred eight or section sixty-eight hundred eight-b of the 19 education law, as well as any person, firm, corporation or association 20 that would be required to be registered with the education department as 21 a wholesaler, manufacturer, or outsourcing facility pursuant to such 22 section sixty-eight hundred eight-b but for the exception in subdivision 23 two of such section; and any person, firm, corporation or association 24 required to be registered with the health department as a manufacturer 25 or distributor of a controlled substance pursuant to section thirty- 26 three hundred ten of the public health law. 27 (g) "Wholesale acquisition cost" shall mean the manufacturer's list 28 price for an opioid unit to wholesalers or direct purchasers in the 29 United States, not including prompt pay or other discounts, rebates or 30 reductions in price, for the most recent month for which the information 31 is available, as reported in wholesale price guides or other publica- 32 tions of drug or biological pricing data. 33 (h) "Sale" shall mean any transfer of title to an opioid for a consid- 34 eration where actual or constructive possession of such opioid is trans- 35 ferred to the purchaser or its designee in this state. A sale shall not 36 include the dispensing of an opioid pursuant to a prescription to an 37 ultimate consumer. 38 § 498. Imposition of excise tax. (a) There is hereby imposed an excise 39 tax on the first sale of any opioid in the state at the following rates: 40 (1) a quarter of a cent per morphine milligram equivalent where the 41 wholesale acquisition cost is less than fifty cents, or (2) one and 42 one-half cents per morphine milligram equivalent where the wholesale 43 acquisition cost is fifty cents or more. The tax imposed by this article 44 shall be charged against and paid by the registrant making such first 45 sale, and shall accrue at the time of such sale. The economic incidence 46 of the tax imposed by this article may be passed to a purchaser. For the 47 purpose of the proper administration of this article and to prevent 48 evasion of the tax hereby imposed, it shall be presumed that any sale of 49 an opioid in this state by a registrant is the first sale of such in the 50 state until the contrary is established, and the burden of proving that 51 any sale is not the first sale in the state shall be upon the regis- 52 trant. 53 (b) Every registrant liable for the tax imposed by this article shall 54 file with the commissioner a return on forms to be prescribed by the 55 commissioner showing the total morphine milligram equivalent and whole- 56 sale acquisition costs of such opioids that are subject to the taxS. 1509--A 201 A. 2009--A 1 imposed by this article, the amount of tax due thereon, and such further 2 information as the commissioner may require. Such returns shall be filed 3 for quarterly periods ending on the last day of March, June, September 4 and December of each year. Each return shall be filed within twenty days 5 after the end of such quarterly period and shall cover all opioid sales 6 in the state made in the prior quarter, except that the first return 7 required to be filed pursuant to this section shall be due on January 8 twentieth, two thousand twenty, and shall cover all opioid sales occur- 9 ring in the period between the effective date of this article and Decem- 10 ber thirty-first, two thousand nineteen. Every registrant required to 11 file a return under this section shall, at the time of filing such 12 return, pay to the commissioner the total amount of tax due for the 13 period covered by such return. If a return is not filed when due, the 14 tax shall be due the day on which the return is required to be filed. 15 The commissioner may require that the returns and payments required by 16 this section be filed or paid electronically. 17 (c) Where a sale of an opioid by a registrant has been cancelled by 18 the purchaser and tax under this article has previously been paid by the 19 registrant, the commissioner shall allow a credit or refund of such tax 20 on a return for a later period within the limitations period for claim- 21 ing a credit or refund as prescribed by section one thousand eighty-sev- 22 en of this chapter. 23 (d) All sales slips, invoices, receipts, or other statements or memo- 24 randa of sale from any sale or purchase of opioids by registrants must 25 be retained for a period of six years after the due date of the return 26 to which they relate, unless the commissioner provides for a different 27 retention period by rule or regulation. Such records must be sufficient 28 to determine the number of units transferred along with the morphine 29 milligram equivalent of the units transferred, and otherwise be suitable 30 to determine the correct amount of tax due. Such records must also 31 record either (1) the address from which the units are shipped or deliv- 32 ered, along with the address to which the units are shipped or deliv- 33 ered, or (2) the place at which actual physical possession of the units 34 is transferred. Such records shall be produced upon demand by the 35 commissioner. 36 (e) The provisions of article twenty-seven of this chapter shall apply 37 to the tax imposed by this article in the same manner and with the same 38 force and effect as if the language of such article had been incorpo- 39 rated in full into this article and had expressly referred to the tax 40 imposed by this article, except to the extent that any provision of such 41 article twenty-seven is either inconsistent with a provision of this 42 article or is not relevant to this article. 43 (f) The commissioners of education and health shall cooperate with the 44 commissioner in administering this tax, including sharing with the 45 commissioner pertinent information about registrants upon the request of 46 the commissioner. 47 (g) Each registrant shall provide a report to the department of health 48 detailing all opioids sold by such registrant in the state of New York. 49 Such report shall include: 50 (i) the registrant's name, address, phone number, federal Drug 51 Enforcement Agency (DEA) registration number, education department 52 registration number, and controlled substance license number issued by 53 the department of health, if applicable; 54 (ii) the name, address and DEA registration number of the entity to 55 whom the opioid was sold; 56 (iii) the date of the sale of the opioid;S. 1509--A 202 A. 2009--A 1 (iv) the gross receipt total, in dollars, for each opioid sold; 2 (v) the name and National Drug Code of the opioid sold; 3 (vi) the number of containers and the strength and metric quantity of 4 controlled substance in each container of the opioid sold; 5 (vii) the total number of morphine milligram equivalents sold; and 6 (viii) any other elements as deemed necessary by the commissioner of 7 health. 8 Such information shall be reported annually in such form as defined by 9 the commissioner of health and shall not be subject to the provisions of 10 section four hundred ninety-nine of this article. 11 § 499. Returns to be secret. (a) Except in accordance with a proper 12 judicial order or as otherwise provided for by law, it shall be unlawful 13 for the commissioner, any officer or employee of the department, or any 14 person engaged or retained by such department on an independent contract 15 basis or any other person who in any manner may acquire knowledge of the 16 contents of a return or report filed pursuant to this article to divulge 17 or make known in any manner the contents or any other information 18 relating to the business of a registrant contained in any return or 19 report required under this article. The officers charged with the 20 custody of such returns or reports shall not be required to produce any 21 of them or evidence of anything contained in them in any action or 22 proceeding in any court, except on behalf of the state, the state 23 department of health, the state department of education or the commis- 24 sioner in an action or proceeding under the provisions of this chapter 25 or on behalf of the state or the commissioner in any other action or 26 proceeding involving the collection of a tax due under this chapter to 27 which the state or the commissioner is a party or a claimant or on 28 behalf of any party to any action or proceeding under the provisions of 29 this article, when the returns or the reports or the facts shown thereby 30 are directly involved in such action or proceeding, in any of which 31 events the court may require the production of, and may admit in 32 evidence so much of said returns or reports or of the facts shown there- 33 by as are pertinent to the action or proceeding and no more. Nothing 34 herein shall be construed to prohibit the commissioner, in his or her 35 discretion, from allowing the inspection or delivery of a certified copy 36 of any return or report filed under this article, or from providing any 37 information contained in any such return or report, by or to a duly 38 authorized officer or employee of the state department of health or the 39 state department of education; nor to prohibit the inspection or deliv- 40 ery of a certified copy of any return or report filed under this arti- 41 cle, or the provision of any information contained therein, by or to the 42 attorney general or other legal representatives of the state when an 43 action shall have been recommended or commenced pursuant to this chap- 44 ter in which such returns or reports or the facts shown thereby are 45 directly involved; nor to prohibit the commissioner from providing or 46 certifying to the division of budget or the comptroller the total number 47 of returns or reports filed under this article in any reporting period 48 and the total collections received therefrom; nor to prohibit the 49 inspection of the returns or reports required under this article by the 50 comptroller or duly designated officer or employee of the state depart- 51 ment of audit and control, for purposes of the audit of a refund of any 52 tax paid by a registrant or other person under this article; nor to 53 prohibit the delivery to a registrant, or a duly authorized represen- 54 tative of such registrant, a certified copy of any return or report 55 filed by such registrant pursuant to this article, nor to prohibit theS. 1509--A 203 A. 2009--A 1 publication of statistics so classified as to prevent the identification 2 of particular returns or reports and the items thereof. 3 (b)(1) Any officer or employee of the state who willfully violates the 4 provisions of subdivision (a) of this section shall be dismissed from 5 office and be incapable of holding any public office in this state for a 6 period of five years thereafter. 7 (2) Cross-reference: For criminal penalties, see article thirty-seven 8 of this chapter. 9 § 2. Section 1825 of the tax law, as amended by section 3 of part NNN 10 of chapter 59 of the laws of 2018, is amended to read as follows: 11 § 1825. Violation of secrecy provisions of the tax law.--Any person 12 who violates the secrecy provisions of [subdivision (b) of section twen-13ty-one, subdivision one of section two hundred two, subdivision eight of14section two hundred eleven, subdivision (a) of section three hundred15fourteen, subdivision one or two of section four hundred thirty-seven,16section four hundred eighty-seven, subdivision one or two of section17five hundred fourteen, subsection (e) of section six hundred ninety-sev-18en, subsection (a) of section nine hundred ninety-four, subdivision (a)19of section eleven hundred forty-six, section twelve hundred eighty-sev-20en, section twelve hundred ninety-six, section twelve hundred ninety-21nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi-22sion (a) of section fifteen hundred eighteen, subdivision (a) of section23fifteen hundred fifty-five of] this chapter[, and] or subdivision (e) of 24 section 11-1797 of the administrative code of the city of New York shall 25 be guilty of a misdemeanor. 26 § 3. Subdivision 1 of section 171-a of the tax law, as amended by 27 section 3 of part MM of chapter 59 of the laws of 2018, is amended to 28 read as follows: 29 1. All taxes, interest, penalties and fees collected or received by 30 the commissioner or the commissioner's duly authorized agent under arti- 31 cles nine (except section one hundred eighty-two-a thereof and except as 32 otherwise provided in section two hundred five thereof), nine-A, 33 twelve-A (except as otherwise provided in section two hundred eighty- 34 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 35 section three hundred twelve thereof), eighteen, nineteen, twenty 36 (except as otherwise provided in section four hundred eighty-two there- 37 of), twenty-B, twenty-D, twenty-one, twenty-two, twenty-four, twenty- 38 six, twenty-eight (except as otherwise provided in section eleven 39 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 40 nine-B, thirty-one (except as otherwise provided in section fourteen 41 hundred twenty-one thereof), thirty-three and thirty-three-A of this 42 chapter shall be deposited daily in one account with such responsible 43 banks, banking houses or trust companies as may be designated by the 44 comptroller, to the credit of the comptroller. Such an account may be 45 established in one or more of such depositories. Such deposits shall be 46 kept separate and apart from all other money in the possession of the 47 comptroller. The comptroller shall require adequate security from all 48 such depositories. Of the total revenue collected or received under such 49 articles of this chapter, the comptroller shall retain in the comp- 50 troller's hands such amount as the commissioner may determine to be 51 necessary for refunds or reimbursements under such articles of this 52 chapter out of which amount the comptroller shall pay any refunds or 53 reimbursements to which taxpayers shall be entitled under the provisions 54 of such articles of this chapter. The commissioner and the comptroller 55 shall maintain a system of accounts showing the amount of revenue 56 collected or received from each of the taxes imposed by such articles.S. 1509--A 204 A. 2009--A 1 The comptroller, after reserving the amount to pay such refunds or 2 reimbursements, shall, on or before the tenth day of each month, pay 3 into the state treasury to the credit of the general fund all revenue 4 deposited under this section during the preceding calendar month and 5 remaining to the comptroller's credit on the last day of such preceding 6 month, (i) except that the comptroller shall pay to the state department 7 of social services that amount of overpayments of tax imposed by article 8 twenty-two of this chapter and the interest on such amount which is 9 certified to the comptroller by the commissioner as the amount to be 10 credited against past-due support pursuant to subdivision six of section 11 one hundred seventy-one-c of this article, (ii) and except that the 12 comptroller shall pay to the New York state higher education services 13 corporation and the state university of New York or the city university 14 of New York respectively that amount of overpayments of tax imposed by 15 article twenty-two of this chapter and the interest on such amount which 16 is certified to the comptroller by the commissioner as the amount to be 17 credited against the amount of defaults in repayment of guaranteed 18 student loans and state university loans or city university loans pursu- 19 ant to subdivision five of section one hundred seventy-one-d and subdi- 20 vision six of section one hundred seventy-one-e of this article, (iii) 21 and except further that, notwithstanding any law, the comptroller shall 22 credit to the revenue arrearage account, pursuant to section 23 ninety-one-a of the state finance law, that amount of overpayment of tax 24 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 25 or thirty-three of this chapter, and any interest thereon, which is 26 certified to the comptroller by the commissioner as the amount to be 27 credited against a past-due legally enforceable debt owed to a state 28 agency pursuant to paragraph (a) of subdivision six of section one 29 hundred seventy-one-f of this article, provided, however, he shall cred- 30 it to the special offset fiduciary account, pursuant to section ninety- 31 one-c of the state finance law, any such amount creditable as a liabil- 32 ity as set forth in paragraph (b) of subdivision six of section one 33 hundred seventy-one-f of this article, (iv) and except further that the 34 comptroller shall pay to the city of New York that amount of overpayment 35 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 36 thirty-B or thirty-three of this chapter and any interest thereon that 37 is certified to the comptroller by the commissioner as the amount to be 38 credited against city of New York tax warrant judgment debt pursuant to 39 section one hundred seventy-one-l of this article, (v) and except 40 further that the comptroller shall pay to a non-obligated spouse that 41 amount of overpayment of tax imposed by article twenty-two of this chap- 42 ter and the interest on such amount which has been credited pursuant to 43 section one hundred seventy-one-c, one hundred seventy-one-d, one 44 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 45 ty-one-l of this article and which is certified to the comptroller by 46 the commissioner as the amount due such non-obligated spouse pursuant to 47 paragraph six of subsection (b) of section six hundred fifty-one of this 48 chapter; and (vi) the comptroller shall deduct a like amount which the 49 comptroller shall pay into the treasury to the credit of the general 50 fund from amounts subsequently payable to the department of social 51 services, the state university of New York, the city university of New 52 York, or the higher education services corporation, or the revenue 53 arrearage account or special offset fiduciary account pursuant to 54 section ninety-one-a or ninety-one-c of the state finance law, as the 55 case may be, whichever had been credited the amount originally withheld 56 from such overpayment, and (vii) with respect to amounts originallyS. 1509--A 205 A. 2009--A 1 withheld from such overpayment pursuant to section one hundred seventy- 2 one-l of this article and paid to the city of New York, the comptroller 3 shall collect a like amount from the city of New York. 4 § 4. Subdivision 1 of section 171-a of the tax law, as amended by 5 section 4 of part MM of chapter 59 of the laws of 2018, is amended to 6 read as follows: 7 1. All taxes, interest, penalties and fees collected or received by 8 the commissioner or the commissioner's duly authorized agent under arti- 9 cles nine (except section one hundred eighty-two-a thereof and except as 10 otherwise provided in section two hundred five thereof), nine-A, 11 twelve-A (except as otherwise provided in section two hundred eighty- 12 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 13 section three hundred twelve thereof), eighteen, nineteen, twenty 14 (except as otherwise provided in section four hundred eighty-two there- 15 of), twenty-D, twenty-one, twenty-two, twenty-four, twenty-six, twenty- 16 eight (except as otherwise provided in section eleven hundred two or 17 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one 18 (except as otherwise provided in section fourteen hundred twenty-one 19 thereof), thirty-three and thirty-three-A of this chapter shall be 20 deposited daily in one account with such responsible banks, banking 21 houses or trust companies as may be designated by the comptroller, to 22 the credit of the comptroller. Such an account may be established in one 23 or more of such depositories. Such deposits shall be kept separate and 24 apart from all other money in the possession of the comptroller. The 25 comptroller shall require adequate security from all such depositories. 26 Of the total revenue collected or received under such articles of this 27 chapter, the comptroller shall retain in the comptroller's hands such 28 amount as the commissioner may determine to be necessary for refunds or 29 reimbursements under such articles of this chapter out of which amount 30 the comptroller shall pay any refunds or reimbursements to which taxpay- 31 ers shall be entitled under the provisions of such articles of this 32 chapter. The commissioner and the comptroller shall maintain a system of 33 accounts showing the amount of revenue collected or received from each 34 of the taxes imposed by such articles. The comptroller, after reserving 35 the amount to pay such refunds or reimbursements, shall, on or before 36 the tenth day of each month, pay into the state treasury to the credit 37 of the general fund all revenue deposited under this section during the 38 preceding calendar month and remaining to the comptroller's credit on 39 the last day of such preceding month, (i) except that the comptroller 40 shall pay to the state department of social services that amount of 41 overpayments of tax imposed by article twenty-two of this chapter and 42 the interest on such amount which is certified to the comptroller by the 43 commissioner as the amount to be credited against past-due support 44 pursuant to subdivision six of section one hundred seventy-one-c of this 45 article, (ii) and except that the comptroller shall pay to the New York 46 state higher education services corporation and the state university of 47 New York or the city university of New York respectively that amount of 48 overpayments of tax imposed by article twenty-two of this chapter and 49 the interest on such amount which is certified to the comptroller by the 50 commissioner as the amount to be credited against the amount of defaults 51 in repayment of guaranteed student loans and state university loans or 52 city university loans pursuant to subdivision five of section one 53 hundred seventy-one-d and subdivision six of section one hundred seven- 54 ty-one-e of this article, (iii) and except further that, notwithstanding 55 any law, the comptroller shall credit to the revenue arrearage account, 56 pursuant to section ninety-one-a of the state finance law, that amountS. 1509--A 206 A. 2009--A 1 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 2 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 3 thereon, which is certified to the comptroller by the commissioner as 4 the amount to be credited against a past-due legally enforceable debt 5 owed to a state agency pursuant to paragraph (a) of subdivision six of 6 section one hundred seventy-one-f of this article, provided, however, he 7 shall credit to the special offset fiduciary account, pursuant to 8 section ninety-one-c of the state finance law, any such amount credita- 9 ble as a liability as set forth in paragraph (b) of subdivision six of 10 section one hundred seventy-one-f of this article, (iv) and except 11 further that the comptroller shall pay to the city of New York that 12 amount of overpayment of tax imposed by article nine, nine-A, twenty- 13 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 14 interest thereon that is certified to the comptroller by the commission- 15 er as the amount to be credited against city of New York tax warrant 16 judgment debt pursuant to section one hundred seventy-one-l of this 17 article, (v) and except further that the comptroller shall pay to a 18 non-obligated spouse that amount of overpayment of tax imposed by arti- 19 cle twenty-two of this chapter and the interest on such amount which has 20 been credited pursuant to section one hundred seventy-one-c, one hundred 21 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 22 one hundred seventy-one-l of this article and which is certified to the 23 comptroller by the commissioner as the amount due such non-obligated 24 spouse pursuant to paragraph six of subsection (b) of section six 25 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 26 a like amount which the comptroller shall pay into the treasury to the 27 credit of the general fund from amounts subsequently payable to the 28 department of social services, the state university of New York, the 29 city university of New York, or the higher education services corpo- 30 ration, or the revenue arrearage account or special offset fiduciary 31 account pursuant to section ninety-one-a or ninety-one-c of the state 32 finance law, as the case may be, whichever had been credited the amount 33 originally withheld from such overpayment, and (vii) with respect to 34 amounts originally withheld from such overpayment pursuant to section 35 one hundred seventy-one-l of this article and paid to the city of New 36 York, the comptroller shall collect a like amount from the city of New 37 York. 38 § 5. This act shall take effect July 1, 2019; provided, however, that 39 the amendments to subdivision 1 of section 171-a of the tax law made by 40 section three of this act shall not affect the expiration of such subdi- 41 vision and shall expire therewith, when upon such date the provisions of 42 section four of this act shall take effect. 43 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 44 sion, section or part of this act shall be adjudged by any court of 45 competent jurisdiction to be invalid, such judgment shall not affect, 46 impair, or invalidate the remainder thereof, but shall be confined in 47 its operation to the clause, sentence, paragraph, subdivision, section 48 or part thereof directly involved in the controversy in which such judg- 49 ment shall have been rendered. It is hereby declared to be the intent of 50 the legislature that this act would have been enacted even if such 51 invalid provisions had not been included herein. 52 § 3. This act shall take effect immediately provided, however, that 53 the applicable effective date of Parts A through XX of this act shall be 54 as specifically set forth in the last section of such Parts.
