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 ________________________________________________________________________ 1509--B IN SENATE January 18, 2019 ___________ A BUDGET BILL, submitted by the Governor pursuant to article 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 -- 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 extending provisions relating to mandatory electronic filing of tax documents (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 intangible low-taxed income (Part C); to amend the tax law and the administrative code of the city of New York, in relation to the adjusted basis for property used to determine whether a manufacturer is a qualified 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 elim- inating 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 (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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-04-9S. 1509--B 2 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 the effectiveness 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 amend chapter 61 of the laws of 2011, amending the real property tax law and other laws relating to establishing standards for electronic tax administration, in relation to the effectiveness there- of (Part S); to amend the cooperative corporations 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 administration 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); inten- tionally omitted (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 wager- ing and breeding law, in relation to employees of the state gaming commission (Part BB); to amend the racing, pari-mutuel wagering and breeding law, in relation to the thoroughbred and standardbred breed- ing funds (Part CC); to amend the racing, pari-mutuel wagering and breeding law, in relation to the office of the gaming inspector gener- al; 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); intentionally omitted (Subpart B); to amend the racing, pari-mutuel wagering and breeding law, in relation to the Harry M. Zweig memorial fund (Subpart C); intentionally omitted (Subpart D)(Part DD); intentionally omitted (Part EE); to amend the racing, pari-mutuel wagering and breeding law, in relation to the deductibili-S. 1509--B 3 ty 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 breed- ing law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part HH); inten- tionally omitted (Part II); to amend part EE of chapter 59 of the laws of 2018, amending the racing, pari-mutuel wagering and breeding law, relating to adjusting the franchise payment establishing 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); intentionally omitted (Part KK); intentionally omitted (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); intentionally omitted (Part RR); to amend the real property tax law, in relation to clarifying 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 tobacco 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; clarifying that the department of health has the authority to promulgate regulations that restrict the sale or distribution of electronic cigarettes 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 packaging 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);S. 1509--B 4 intentionally omitted (Part VV); to amend the tax law, in relation to imposing a special tax on passenger car rentals outside of the metro- politan commuter transportation district (Part WW); to amend the tax law, in relation to imposing a tax on Opioids (Part XX); intentionally omitted (Part YY); to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of sports betting (Part ZZ); to amend the tax law, in relation to authorizing the county of West- chester to impose an additional rate of sales and compensating use tax; and to amend chapter 272 of the laws of 1991, amending the tax law relating to the method of disposition of sales and compensating use tax revenue in Westchester county and enacting the Westchester county spending limitation act, in relation to extending the expira- tion thereof (Part AAA); to amend the real property tax law, in relation to imposing an additional tax on certain non-primary resi- dence class one and class two properties in a city with a population of one million or more (Part BBB); to amend the tax law, in relation to the authorized combative sports tax (Part CCC); to amend the tax law, in relation to the definition of the term monuments for sales and use tax exemption purposes (Part DDD); and to amend the tax law, in relation to requiring unclaimed lottery prizes to be paid into the state treasury (Part EEE) 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 EEE. The effective date for each partic- 5 ular provision contained within such Part is set forth in the last 6 section of such Part. Any provision in any section contained within a 7 Part, including the effective date of the Part, which makes reference to 8 a section "of this act", when used in connection with that particular 9 component, shall be deemed to mean and refer to the corresponding 10 section of the Part in which it is found. Section three of this act sets 11 forth the general effective date of this act. 12 PART A 13 Section 1. Intentionally Omitted. 14 § 2. Intentionally Omitted. 15 § 3. Intentionally Omitted. 16 § 4. Intentionally Omitted. 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, [2019] 26 2022, provided however that the amendments to paragraph 4 of subdivision 27 (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of 28 section 29 of the tax law made by section thirteen of this act withS. 1509--B 5 1 regard to individual taxpayers shall take effect September 15, 2011 but 2 only if the commissioner of taxation and finance has reported in the 3 report required by section seventeen-b of this act that the percentage 4 of individual taxpayers electronically filing their 2010 income tax 5 returns is less than eighty-five percent; provided that the commissioner 6 of taxation and finance shall notify the legislative bill drafting 7 commission of the date of the issuance of such report in order that the 8 commission may maintain an accurate and timely effective data base of 9 the official text of the laws of the state of New York in furtherance of 10 effectuating the provisions of section 44 of the legislative law and 11 section 70-b of the public officers law; 12 (b) sections fourteen, fifteen, sixteen and seventeen of this act 13 shall take effect September 15, 2011 but only if the commissioner of 14 taxation and finance has reported in the report required by section 15 seventeen-b of this act that the percentage of individual taxpayers 16 electronically filing their 2010 income tax returns is less than eight- 17 y-five percent; 18 (c) sections fourteen-a and fifteen-a of this act shall take effect 19 September 15, 2011 and expire and be deemed repealed December 31, 2012 20 but shall take effect only if the commissioner of taxation and finance 21 has reported in the report required by section seventeen-b of this act 22 that the percentage of individual taxpayers electronically filing their 23 2010 income tax returns is eighty-five percent or greater; 24 (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this 25 act shall take effect January 1, [2020] 2023 but only if the commission- 26 er of taxation and finance has reported in the report required by 27 section seventeen-b of this act that the percentage of individual 28 taxpayers electronically filing their 2010 income tax returns is less 29 than eighty-five percent; and 30 (e) sections twenty-one and twenty-one-a of this act shall expire and 31 be deemed repealed December 31, [2019] 2022. 32 § 6. This act shall take effect immediately. 33 PART B 34 Section 1. Subdivision 3 of section 441 of the economic development 35 law, as amended by section 1 of part L of chapter 59 of the laws of 36 2017, is amended to read as follows: 37 3. "Eligible training" means (a) training provided by the business 38 entity or an approved provider that is: 39 (i) to upgrade, retrain or improve the productivity of employees; 40 (ii) provided to employees in connection with a significant capital 41 investment by a participating business entity; 42 (iii) determined by the commissioner to satisfy a business need on the 43 part of a participating business entity; 44 (iv) not designed to train or upgrade skills as required by a federal 45 or state entity; 46 (v) not training the completion of which may result in the awarding of 47 a license or certificate required by law in order to perform a job func- 48 tion; and 49 (vi) not culturally focused training; or 50 (b) an internship program in advanced technology [or], life sciences, 51 software development or clean energy approved by the commissioner and 52 provided by the business entity or an approved provider, on or after 53 August first, two thousand fifteen, to provide employment and experienceS. 1509--B 6 1 opportunities for current students, recent graduates, and recent members 2 of the armed forces. 3 § 2. Paragraph (b) of subdivision 1 of section 442 of the economic 4 development law, as amended by section 2 of part L of chapter 59 of the 5 laws of 2017, is amended to read as follows: 6 (b) The business entity must demonstrate that it is conducting eligi- 7 ble training or obtaining eligible training from an approved provider; 8 § 3. Paragraph (a) of subdivision 2 of section 443 of the economic 9 development law, as added by section 1 of part O of chapter 59 of the 10 laws of 2015, is amended to read as follows: 11 (a) provide such documentation as the commissioner may require in 12 order for the commissioner to determine that the business entity intends 13 to conduct eligible training or procure eligible training for its 14 employees from an approved provider; 15 § 4. This act shall take effect immediately. 16 PART C 17 Section 1. Section 210-A of the tax law is amended by adding a new 18 subdivision 5-a to read as follows: 19 5-a. Net global intangible low-taxed income. Notwithstanding any 20 other provision of this section, net global intangible low-taxed income 21 shall be included in the apportionment fraction as provided in this 22 subdivision. Receipts constituting net global intangible low-taxed 23 income shall not be included in the numerator of the apportionment frac- 24 tion. Receipts constituting net global intangible low-taxed income shall 25 be included in the denominator of the apportionment fraction. For 26 purposes of this subdivision, the term "net global intangible low-taxed 27 income" means the amount required to be included in the taxpayer's 28 federal gross income pursuant to subsection (a) of section 951A of the 29 internal revenue code less the amount of the deduction allowed under 30 clause (i) of section 250(a)(1)(B) of such code. 31 § 2. Section 11-654.2 of the administrative code of the city of New 32 York is amended by adding a new subdivision 5-a to read as follows: 33 5-a. Notwithstanding any other provision of this section, net global 34 intangible low-taxed income shall be included in the receipts fraction 35 as provided in this subdivision. Receipts constituting net global 36 intangible low-taxed income shall not be included in the numerator of 37 the receipts fraction. Receipts constituting net global intangible low- 38 taxed income shall be included in the denominator of the receipts frac- 39 tion. For purposes of this subdivision, the term "net global intangible 40 low-taxed income" means the amount required to be included in the 41 taxpayer's federal gross income pursuant to subsection (a) of section 42 951A of the internal revenue code less the amount of the deduction 43 allowed under clause (i) of section 250(a)(1)(B) of such code. 44 § 3. Subparagraph (2) of paragraph (a) of subdivision (3) of section 45 11-604 of the administrative code of the city of New York is amended by 46 adding a new clause (E) to read as follows: 47 (E) notwithstanding any other provision of this paragraph, net global 48 intangible low-taxed income shall be included in the receipts fraction 49 as provided in this clause. Receipts constituting net global intangible 50 low-taxed income shall not be included in the numerator of the receipts 51 fraction. Receipts constituting net global intangible low-taxed income 52 shall be included in the denominator of the receipts fraction. For 53 purposes of this clause, the term "net global intangible low-taxed 54 income" means the amount that would have been required to be included inS. 1509--B 7 1 the taxpayer's federal gross income pursuant to subsection (a) of 2 section 951A of the internal revenue code less the amount of the 3 deduction that would have been allowed under clause (i) of section 4 250(a)(1)(B) of such code if the taxpayer had not made an election under 5 subchapter s of chapter one of the internal revenue code. 6 § 4. This act shall take effect immediately and shall apply to taxable 7 years beginning on or after January 1, 2018. 8 PART D 9 Section 1. Subparagraph (vi) of paragraph (a) of subdivision 1 of 10 section 210 of the tax law, as amended by section 11 of part T of chap- 11 ter 59 of the laws of 2015, is amended to read as follows: 12 (vi) for taxable years beginning on or after January first, two thou- 13 sand fourteen, the amount prescribed by this paragraph for a taxpayer 14 [which] that is a qualified New York manufacturer, shall be computed at 15 the rate of zero percent of the taxpayer's business income base. The 16 term "manufacturer" shall mean a taxpayer [which] that during the taxa- 17 ble year is principally engaged in the production of goods by manufac- 18 turing, processing, assembling, refining, mining, extracting, farming, 19 agriculture, horticulture, floriculture, viticulture or commercial fish- 20 ing. However, the generation and distribution of electricity, the 21 distribution of natural gas, and the production of steam associated with 22 the generation of electricity shall not be qualifying activities for a 23 manufacturer under this subparagraph. Moreover, in the case of a 24 combined report, the combined group shall be considered a "manufacturer" 25 for purposes of this subparagraph only if the combined group during the 26 taxable year is principally engaged in the activities set forth in this 27 paragraph, or any combination thereof. A taxpayer or, in the case of a 28 combined report, a combined group shall be "principally engaged" in 29 activities described above if, during the taxable year, more than fifty 30 percent of the gross receipts of the taxpayer or combined group, respec- 31 tively, are derived from receipts from the sale of goods produced by 32 such activities. In computing a combined group's gross receipts, inter- 33 corporate receipts shall be eliminated. A "qualified New York manufac- 34 turer" is a manufacturer [which] that has property in New York [which] 35 that is described in clause (A) of subparagraph (i) of paragraph (b) of 36 subdivision one of section two hundred ten-B of this article and either 37 (I) the adjusted basis of such property for [federal income] New York 38 state tax purposes at the close of the taxable year is at least one 39 million dollars or (II) all of its real and personal property is located 40 in New York. A taxpayer or, in the case of a combined report, a combined 41 group, that does not satisfy the principally engaged test may be a qual- 42 ified New York manufacturer if the taxpayer or the combined group 43 employs during the taxable year at least two thousand five hundred 44 employees in manufacturing in New York and the taxpayer or the combined 45 group has property in the state used in manufacturing, the adjusted 46 basis of which for [federal income] New York state tax purposes at the 47 close of the taxable year is at least one hundred million dollars. 48 § 2. Subparagraph 2 of paragraph (b) of subdivision 1 of section 210 49 of the tax law, as amended by section 18 of part T of chapter 59 of the 50 laws of 2015, is amended to read as follows: 51 (2) For purposes of subparagraph one of this paragraph, the term 52 "manufacturer" shall mean a taxpayer [which] that during the taxable 53 year is principally engaged in the production of goods by manufacturing, 54 processing, assembling, refining, mining, extracting, farming, agricul-S. 1509--B 8 1 ture, horticulture, floriculture, viticulture or commercial fishing. 2 Moreover, for purposes of computing the capital base in a combined 3 report, the combined group shall be considered a "manufacturer" for 4 purposes of this subparagraph only if the combined group during the 5 taxable year is principally engaged in the activities set forth in this 6 subparagraph, or any combination thereof. A taxpayer or, in the case of 7 a combined report, a combined group shall be "principally engaged" in 8 activities described above if, during the taxable year, more than fifty 9 percent of the gross receipts of the taxpayer or combined group, respec- 10 tively, are derived from receipts from the sale of goods produced by 11 such activities. In computing a combined group's gross receipts, inter- 12 corporate receipts shall be eliminated. A "qualified New York manufac- 13 turer" is a manufacturer that has property in New York that is described 14 in clause (A) of subparagraph (i) of paragraph (b) of subdivision one of 15 section two hundred ten-B of this article and either (i) the adjusted 16 basis of that property for [federal income] New York state tax purposes 17 at the close of the taxable year is at least one million dollars or (ii) 18 all of its real and personal property is located in New York. In addi- 19 tion, a "qualified New York manufacturer" means a taxpayer that is 20 defined as a qualified emerging technology company under paragraph (c) 21 of subdivision one of section thirty-one hundred two-e of the public 22 authorities law regardless of the ten million dollar limitation 23 expressed in subparagraph one of such paragraph. A taxpayer or, in the 24 case of a combined report, a combined group, that does not satisfy the 25 principally engaged test may be a qualified New York manufacturer if the 26 taxpayer or the combined group employs during the taxable year at least 27 two thousand five hundred employees in manufacturing in New York and the 28 taxpayer or the combined group has property in the state used in manu- 29 facturing, the adjusted basis of which for [federal income] New York 30 state tax purposes at the close of the taxable year is at least one 31 hundred million dollars. 32 § 3. Clause (ii) of subparagraph 4 of paragraph (k) of subdivision 1 33 of section 11-654 of the administrative code of the city of New York, as 34 added by section 1 of part D of chapter 60 of the laws of 2015, is 35 amended to read as follows: 36 (ii) A "qualified New York manufacturing corporation" is a manufactur- 37 ing corporation that has property in the state [which] that is described 38 in subparagraph five of this paragraph and either (A) the adjusted basis 39 of such property for [federal income] New York state tax purposes at the 40 close of the taxable year is at least one million dollars or (B) more 41 than fifty [percentum] percent of its real and personal property is 42 located in the state. 43 § 4. This act shall take effect immediately and shall apply to taxable 44 years beginning on or after January 1, 2018. 45 PART E 46 Section 1. Section 5 of part MM of chapter 59 of the laws of 2014 47 amending the labor law and the tax law relating to the creation of the 48 workers with disabilities tax credit program is amended to read as 49 follows: 50 § 5. This act shall take effect January 1, 2015, and shall apply to 51 taxable years beginning on and after that date; provided, however, that 52 this act shall expire and be deemed repealed January 1, [2020] 2023. 53 § 2. This act shall take effect immediately.S. 1509--B 9 1 PART F 2 Section 1. Paragraph 3 of subsection (a) of section 954 of the tax 3 law, as amended by section 2 of part BB of chapter 59 of the laws of 4 2015, is amended to read as follows: 5 (3) Increased by the amount of any taxable gift under section 2503 of 6 the internal revenue code not otherwise included in the decedent's 7 federal gross estate, made during the three year period ending on the 8 decedent's date of death, but not including any gift made: (A) when the 9 decedent was not a resident of New York state; or (B) before April 10 first, two thousand fourteen; or (C) that is real or tangible personal 11 property having an actual situs outside New York state at the time the 12 gift was made. Provided, however that this paragraph shall not apply to 13 the estate of a [decendent] decedent dying on or after January first, 14 two thousand [nineteen] twenty-six. 15 § 2. Subsection (a) of section 954 of the tax law is amended by adding 16 a new paragraph 4 to read as follows: 17 (4) Increased by the value of any property not otherwise already 18 included in the decedent's federal gross estate in which the decedent 19 had a qualifying income interest for life if a deduction was allowed on 20 the return of the tax imposed by this article with respect to the trans- 21 fer of such property to the decedent by reason of the application of 22 paragraph (7) of subsection (b) of section 2056 of the internal revenue 23 code, as made applicable to the tax imposed by this article by section 24 nine hundred ninety-nine-a of this article, whether or not a federal 25 estate tax return was required to be filed by the estate of the trans- 26 ferring spouse. 27 § 3. Subsection (c) of section 955 of the tax law, as added by section 28 4 of part X of chapter 59 of the laws of 2014, is amended to read as 29 follows: 30 (c) Qualified terminable interest property election.-- Except as 31 otherwise provided in this subsection, the election referred to in para- 32 graph (7) of subsection (b) of section 2056 of the internal revenue code 33 shall not be allowed under this article unless such election was made 34 with respect to the federal estate tax return required to be filed under 35 the provisions of the internal revenue code. If such election was made 36 for the purposes of the federal estate tax, then such election must also 37 be made by the executor on the return of the tax imposed by this arti- 38 cle. Where no federal estate tax return is required to be filed, the 39 executor [may] must make the election referred to in such paragraph (7) 40 with respect to the tax imposed by this article on the return of the tax 41 imposed by this article. Any election made under this subsection shall 42 be irrevocable. 43 § 4. This act shall take effect immediately; provided however that 44 section one of this act shall apply to estates of decedents dying on or 45 after January 1, 2019 and sections two and three of this act shall apply 46 to estates of decedents dying on or after April 1, 2019. 47 PART G 48 Section 1. Section 1101 of the tax law is amended by adding a new 49 subdivision (e) to read as follows: 50 (e) When used in this article for the purposes of the taxes imposed 51 under subdivision (a) of section eleven hundred five of this article and 52 by section eleven hundred ten of this article, the following terms shall 53 mean:S. 1509--B 10 1 (1) Marketplace provider. A person who, pursuant to an agreement with 2 a marketplace seller, facilitates sales of tangible personal property by 3 such marketplace seller or sellers. A person "facilitates a sale of 4 tangible personal property" for purposes of this paragraph when the 5 person meets both of the following conditions: (A) such person provides 6 the forum in which, or by means of which, the sale takes place or the 7 offer of sale is accepted, including a shop, store, or booth, an inter- 8 net website, catalog, or similar forum; and (B) such person or an affil- 9 iate of such person collects the receipts paid by a customer to a 10 marketplace seller for a sale of tangible personal property, or 11 contracts with a third party to collect such receipts. For purposes of 12 this paragraph, a "sale of tangible personal property" shall not include 13 the rental of a passenger car as described in section eleven hundred 14 sixty of this chapter but shall include a lease described in subdivision 15 (i) of section eleven hundred eleven of this article. For purposes of 16 this paragraph, persons are affiliated if one person has an ownership 17 interest of more than five percent, whether direct or indirect, in 18 another, or where an ownership interest of more than five percent, 19 whether direct or indirect, is held in each of such persons by another 20 person or by a group of other persons that are affiliated persons with 21 respect to each other. 22 (2) Marketplace seller. Any person, whether or not such person is 23 required to obtain a certificate of authority under section eleven 24 hundred thirty-four of this article, who has an agreement with a market- 25 place provider under which the marketplace provider will facilitate 26 sales of tangible personal property by such person within the meaning of 27 paragraph one of this subdivision. 28 § 2. Subdivision 1 of section 1131 of the tax law, as amended by 29 section 1 of part X of chapter 59 of the laws of 2018, is amended to 30 read as follows: 31 (1) "Persons required to collect tax" or "person required to collect 32 any tax imposed by this article" shall include: every vendor of tangible 33 personal property or services; every recipient of amusement charges; 34 [and] every operator of a hotel; and every marketplace provider with 35 respect to sales of tangible personal property it facilitates as 36 described in paragraph one of subdivision (e) of section eleven hundred 37 one of this article. Said terms shall also include any officer, director 38 or employee of a corporation or of a dissolved corporation, any employee 39 of a partnership, any employee or manager of a limited liability compa- 40 ny, or any employee of an individual proprietorship who as such officer, 41 director, employee or manager is under a duty to act for such corpo- 42 ration, partnership, limited liability company or individual proprietor- 43 ship in complying with any requirement of this article, or has so acted; 44 and any member of a partnership or limited liability company. Provided, 45 however, that any person who is a vendor solely by reason of clause (D) 46 or (E) of subparagraph (i) of paragraph (8) of subdivision (b) of 47 section eleven hundred one of this article shall not be a "person 48 required to collect any tax imposed by this article" until twenty days 49 after the date by which such person is required to file a certificate of 50 registration pursuant to section eleven hundred thirty-four of this 51 part. 52 § 3. Section 1132 of the tax law is amended by adding a new subdivi- 53 sion (l) to read as follows: 54 (l)(1) A marketplace provider with respect to a sale of tangible 55 personal property it facilitates: (A) shall have all the obligations and 56 rights of a vendor under this article and article twenty-nine of thisS. 1509--B 11 1 chapter and under any regulations adopted pursuant thereto, including, 2 but not limited to, the duty to obtain a certificate of authority, to 3 collect tax, file returns, remit tax, and the right to accept a certif- 4 icate or other documentation from a customer substantiating an exemption 5 or exclusion from tax, the right to receive the refund authorized by 6 subdivision (e) of this section and the credit allowed by subdivision 7 (f) of section eleven hundred thirty-seven of this part subject to the 8 provisions of such subdivisions; and (B) shall keep such records and 9 information and cooperate with the commissioner to ensure the proper 10 collection and remittance of tax imposed, collected or required to be 11 collected under this article and article twenty-nine of this chapter. 12 (2) A marketplace seller who is a vendor is relieved from the duty to 13 collect tax in regard to a particular sale of tangible personal property 14 subject to tax under subdivision (a) of section eleven hundred five of 15 this article and shall not include the receipts from such sale in its 16 taxable receipts for purposes of section eleven hundred thirty-six of 17 this part if, in regard to such sale: (A) the marketplace seller can 18 show that such sale was facilitated by a marketplace provider from whom 19 such seller has received in good faith a properly completed certificate 20 of collection in a form prescribed by the commissioner, certifying that 21 the marketplace provider is registered to collect sales tax and will 22 collect sales tax on all taxable sales of tangible personal property by 23 the marketplace seller facilitated by the marketplace provider, and with 24 such other information as the commissioner may prescribe; and (B) any 25 failure of the marketplace provider to collect the proper amount of tax 26 in regard to such sale was not the result of such marketplace seller 27 providing the marketplace provider with incorrect information. This 28 provision shall be administered in a manner consistent with subparagraph 29 (i) of paragraph one of subdivision (c) of this section as if a certif- 30 icate of collection were a resale or exemption certificate for purposes 31 of such subparagraph, including with regard to the completeness of such 32 certificate of collection and the timing of its acceptance by the 33 marketplace seller. Provided that, with regard to any sales of tangible 34 personal property by a marketplace seller that are facilitated by a 35 marketplace provider who is affiliated with such marketplace seller 36 within the meaning of paragraph one of subdivision (e) of section eleven 37 hundred one of this article, the marketplace seller shall be deemed 38 liable as a person under a duty to act for such marketplace provider for 39 purposes of subdivision one of section eleven hundred thirty-one of this 40 part. 41 (3) The commissioner may, in his or her discretion: (A) develop a 42 standard provision, or approve a provision developed by a marketplace 43 provider, in which the marketplace provider obligates itself to collect 44 the tax on behalf of all the marketplace sellers for whom the market- 45 place provider facilitates sales of tangible personal property, with 46 respect to all sales that it facilitates for such sellers where delivery 47 occurs in the state; and (B) provide by regulation or otherwise that the 48 inclusion of such provision in the publicly-available agreement between 49 the marketplace provider and marketplace seller will have the same 50 effect as a marketplace seller's acceptance of a certificate of 51 collection from such marketplace provider under paragraph two of this 52 subdivision. 53 § 4. Section 1133 of the tax law is amended by adding a new subdivi- 54 sion (f) to read as follows: 55 (f) A marketplace provider is relieved of liability under this section 56 for failure to collect the correct amount of tax to the extent that theS. 1509--B 12 1 marketplace provider can show that the error was due to incorrect infor- 2 mation given to the marketplace provider by the marketplace seller. 3 Provided, however, this subdivision shall not apply if the marketplace 4 seller and marketplace provider are affiliated within the meaning of 5 paragraph one of subdivision (e) of section eleven hundred one of this 6 article. 7 § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 8 amended by section 46 of part K of chapter 61 of the laws of 2011, is 9 amended to read as follows: 10 (4) The return of a vendor of tangible personal property or services 11 shall show such vendor's receipts from sales and the number of gallons 12 of any motor fuel or diesel motor fuel sold and also the aggregate value 13 of tangible personal property and services and number of gallons of such 14 fuels sold by the vendor, the use of which is subject to tax under this 15 article, and the amount of tax payable thereon pursuant to the 16 provisions of section eleven hundred thirty-seven of this part. The 17 return of a recipient of amusement charges shall show all such charges 18 and the amount of tax thereon, and the return of an operator required to 19 collect tax on rents shall show all rents received or charged and the 20 amount of tax thereon. The return of a marketplace seller shall exclude 21 the receipts from a sale of tangible personal property facilitated by a 22 marketplace provider if, in regard to such sale: (A) the marketplace 23 seller has timely received in good faith a properly completed certif- 24 icate of collection from the marketplace provider or the marketplace 25 provider has included a provision approved by the commissioner in the 26 publicly-available agreement between the marketplace provider and the 27 marketplace seller as described in subdivision one of section eleven 28 hundred thirty-two of this part, and (B) the information provided by the 29 marketplace seller to the marketplace provider about such tangible 30 personal property is accurate. 31 § 6. Section 1142 of the tax law is amended by adding a new subdivi- 32 sion 15 to read as follows: 33 (15) To publish a list on the department's website of marketplace 34 providers whose certificates of authority have been revoked and, if 35 necessary to protect sales tax revenue, provide by regulation or other- 36 wise that a marketplace seller who is a vendor will be relieved of the 37 duty to collect tax for sales of tangible personal property facilitated 38 by a marketplace provider only if, in addition to the conditions 39 prescribed by paragraph two of subdivision (l) of section eleven hundred 40 thirty-two of this part being met, such marketplace provider is not on 41 such list at the commencement of the quarterly period covered thereby. 42 § 7. This act shall take effect immediately and shall apply to sales 43 made on or after September 1, 2019. 44 PART H 45 Section 1. Subparagraph (A) of paragraph 1 of subdivision (b) of 46 section 1105 of the tax law, as amended by section 9 of part S of chap- 47 ter 85 of the laws of 2002, is amended to read as follows: 48 (A) gas, electricity, refrigeration and steam, and gas, electric, 49 refrigeration and steam service of whatever nature, including the trans- 50 portation, transmission or distribution of gas or electricity, even if 51 sold separately; 52 § 2. Section 1105-C of the tax law is REPEALED. 53 § 3. Subparagraph (xi) of paragraph 4 of subdivision (a) of section 54 1210 of the tax law is REPEALED.S. 1509--B 13 1 § 4. Paragraph 8 of subdivision (b) of section 11-2001 of the adminis- 2 trative code of the city of New York is REPEALED. 3 § 5. This act shall take effect June 1, 2019, and shall apply to sales 4 made and services rendered on and after that date, whether or not under 5 a prior contract. 6 PART I 7 Section 1. Subdivision 3 of section 1204 of the real property tax law, 8 as added by chapter 115 of the laws of 2018, is amended to read as 9 follows: 10 3. Where the tentative equalization rate is not within plus or minus 11 five [percentage points] percent of the locally stated level of assess- 12 ment, the assessor shall provide notice in writing to the local govern- 13 ing body of any affected town, city, village, county and school district 14 of the difference between the locally stated level of assessment and the 15 tentative equalization rate. Such notice shall be made within ten days 16 of the receipt of the tentative equalization rate, or within ten days of 17 the filing of the tentative assessment roll, whichever is later, and 18 shall provide the difference in the indicated total full value estimates 19 of the locally stated level of assessment and the tentative equalization 20 rate for the taxable property within each affected town, city, village, 21 county and school district, where applicable. 22 § 2. The real property tax law is amended by adding a new section 1211 23 to read as follows: 24 § 1211. Confirmation by commissioner of the locally stated level of 25 assessment. Notwithstanding the foregoing provisions of this title, 26 before the commissioner determines a tentative equalization rate for a 27 city, town or village, he or she shall examine the accuracy of the 28 locally stated level of assessment appearing on the tentative assessment 29 roll. If the commissioner confirms the locally stated level of assess- 30 ment, then as soon thereafter as is practicable, he or she shall estab- 31 lish and certify such locally stated level of assessment as the final 32 equalization rate for such city, town or village in the manner provided 33 by sections twelve hundred ten and twelve hundred twelve of this title. 34 The provisions of sections twelve hundred four, twelve hundred six and 35 twelve hundred eight of this title shall not apply in such cases, unless 36 the commissioner finds that the final assessment roll differs from the 37 tentative assessment roll to an extent that renders the locally stated 38 level of assessment inaccurate, and rescinds the final equalization rate 39 on that basis. 40 § 3. Paragraph (d) of subdivision 1 of section 1314 of the real prop- 41 erty tax law, as amended by chapter 158 of the laws of 2002, is amended 42 to read as follows: 43 (d) (i) Such district superintendent shall also determine what propor- 44 tion of any tax to be levied in such school district for school purposes 45 during the current school year shall be levied upon each part of a city 46 or town included in such school district by dividing the sum of the full 47 valuation of real property in such part of a city or town by the total 48 of all such full valuations of real property in such school district. 49 Provided, however, that prior to the levy of taxes, the governing body 50 of the school district may adopt a resolution directing such proportions 51 to be based upon the average full valuation of real property in each 52 such city or town over either a three-year period, consisting of the 53 current school year and the two prior school years, or over a five-year 54 period, consisting of the current school year and the four prior schoolS. 1509--B 14 1 years. Once such a resolution has been adopted, the proportions for 2 ensuing school years shall continue to be based upon the average full 3 valuation of real property in each such city or town over the selected 4 period, unless the resolution provides otherwise or is repealed. 5 (ii) Such proportions shall be expressed in the nearest exact ten 6 thousandths and the school authorities of such school district shall 7 levy such a proportion of any tax to be raised in the school district 8 during the current school year upon each part of a city or town included 9 in such school district as shall have been determined by the district 10 superintendent. A new proportion shall be determined for each school 11 year thereafter by the district superintendent in accordance with the 12 provisions of this section by the use of the latest state equalization 13 rates. In any such school district that is not within the jurisdiction 14 of a district superintendent of schools, the duties which would other- 15 wise be performed by the district superintendent under the provisions of 16 this section, shall be performed by the school authorities of such 17 district. 18 § 4. This act shall take effect immediately. 19 PART J 20 Section 1. This Part enacts into law major components of legislation 21 relating to the improvement of the administration of real property taxa- 22 tion in accordance with the real property tax law and other laws relat- 23 ing thereto. Each component is wholly contained within a Subpart identi- 24 fied as Subparts A through F. The effective date for each particular 25 provision contained within such Subpart is set forth in the last section 26 of such Subpart. Any provision in any section contained within a 27 Subpart, including the effective date of the Subpart, which makes a 28 reference to a section "of this act", when used in connection with that 29 particular component, shall be deemed to mean and refer to the corre- 30 sponding section of the Subpart in which it is found. Section three of 31 this Part sets forth the general effective date of this Part. 32 SUBPART A 33 Section 1. The real property tax law is amended by adding a new 34 section 497 to read as follows: 35 § 497. Assessment relief in state disaster emergencies. 1. Notwith- 36 standing any provision of law to the contrary, during a state disaster 37 emergency as defined by section twenty of the executive law, an eligible 38 municipality may exercise the provisions of this section if its govern- 39 ing body, by the sixtieth day following the date upon which the governor 40 declares a state disaster emergency, passes a local law or ordinance, or 41 in the case of a school district a resolution, adopting the provisions 42 of this section. An eligible municipality may provide assessment relief 43 for real property that is impacted by the disaster that led to the 44 declaration of the state disaster emergency, and that is located within 45 such municipality, as provided in subparagraphs (i), (ii), (iii) or (iv) 46 of paragraph (a) of subdivision three of this section only if its 47 governing body specifically elects to do so as part of such local law, 48 ordinance or resolution. A copy of any such local law, ordinance or 49 resolution shall be filed with the commissioner within ten days after 50 the adoption thereof. 51 2. Definitions. For the purposes of this section, the following terms 52 shall have the following meanings:S. 1509--B 15 1 a. "Eligible county" shall mean a county, other than a county wholly 2 contained within a city, specifically referenced within a declaration by 3 the governor of a state disaster emergency. 4 b. "Eligible municipality" shall mean a municipal corporation, as 5 defined by subdivision ten of section one hundred two of this chapter, 6 that is either: (i) an eligible county; or (ii) a city, town, village, 7 special district, or school district that is wholly or partly contained 8 within an eligible county. 9 c. "Impacted tax roll" shall mean the final assessment roll that 10 satisfies both of the following conditions: (a) the roll is based upon a 11 taxable status date occurring prior to a disaster that is the subject of 12 a declaration by the governor of a state disaster emergency; and (b) 13 taxes levied upon that roll by or on behalf of a participating munici- 14 pality are payable without interest on or after the date of the disas- 15 ter. 16 d. "Participating municipality" shall mean an eligible municipality 17 that has passed a local law, ordinance, or resolution to provide assess- 18 ment relief to property owners within such eligible municipality pursu- 19 ant to the provisions of this section. 20 e. "Total assessed value" shall mean the total assessed value of the 21 parcel prior to any and all exemption adjustments. 22 f. "Improved value" shall mean the market value of the real property 23 improvements excluding the land. 24 g. "Property" shall mean "real property", "property" or "land" as 25 defined under paragraphs (a) through (g) of subdivision twelve of 26 section one hundred two of this chapter. 27 3. Assessment relief for disaster victims in an eligible county. (a) 28 Notwithstanding any provision of law to the contrary, where real proper- 29 ty is impacted by a disaster that led to the declaration of a state 30 disaster emergency, and such property is located within a participating 31 municipality, assessment relief shall be granted as follows: 32 (i) If a participating municipality has elected to provide assessment 33 relief for real property that lost at least ten percent but less than 34 twenty percent of its improved value due to a disaster, the assessed 35 value attributable to the improvements shall be reduced by fifteen 36 percent for purposes of the participating municipality on the impacted 37 tax roll. 38 (ii) If a participating municipality has elected to provide assessment 39 relief for real property that lost at least twenty percent but less than 40 thirty percent of its improved value due to a disaster, the assessed 41 value attributable to the improvements shall be reduced by twenty-five 42 percent for purposes of the participating municipality on the impacted 43 tax roll. 44 (iii) If a participating municipality has elected to provide assess- 45 ment relief for real property that lost at least thirty percent but less 46 than forty percent of its improved value due to a disaster, the assessed 47 value attributable to the improvements shall be reduced by thirty-five 48 percent for purposes of the participating municipality on the impacted 49 tax roll. 50 (iv) If a participating municipality has elected to provide assessment 51 relief for real property that lost at least forty percent but less than 52 fifty percent of its improved value due to a disaster, the assessed 53 value attributable to the improvements shall be reduced by forty-five 54 percent for purposes of the participating municipality on the impacted 55 tax roll.S. 1509--B 16 1 (v) If the property lost at least fifty but less than sixty percent of 2 its improved value due to a disaster, the assessed value attributable to 3 the improvements shall be reduced by fifty-five percent for purposes of 4 the participating municipality on the impacted tax roll. 5 (vi) If the property lost at least sixty but less than seventy percent 6 of its improved value due to a disaster, the assessed value attributable 7 to the improvements shall be reduced by sixty-five percent for purposes 8 of the participating municipality on the impacted tax roll. 9 (vii) If the property lost at least seventy but less than eighty 10 percent of its improved value due to a disaster, the assessed value 11 attributable to the improvements shall be reduced by seventy-five 12 percent for purposes of the participating municipality on the impacted 13 tax roll. 14 (viii) If the property lost at least eighty but less than ninety 15 percent of its improved value due to a disaster, the assessed value 16 attributable to the improvements shall be reduced by eighty-five percent 17 for purposes of the participating municipality on the impacted tax roll. 18 (ix) If the property lost at least ninety but less than one hundred 19 percent of its improved value due to a disaster, the assessed value 20 attributable to the improvements shall be reduced by ninety-five percent 21 for purposes of the participating municipality on the impacted tax roll. 22 (x) If the property lost one hundred percent of its improved value due 23 to a disaster, the assessed value attributable to the improvements shall 24 be reduced by one hundred percent for purposes of the participating 25 municipality on the impacted tax roll. 26 (xi) The percentage loss in improved value for this purpose shall be 27 adopted by the assessor from a written finding of the Federal Emergency 28 Management Agency or, where no such finding exists, shall be determined 29 by the assessor in the manner provided by this section, subject to 30 review by the board of assessment review. 31 (xii) Where the assessed value of a property is reduced pursuant to 32 this section, the difference between the property's assessed value and 33 its reduced assessed value shall be exempt from taxation. No reduction 34 in assessed value shall be granted pursuant to this section except as 35 specified above for such counties. No reduction in assessed value shall 36 be granted pursuant to this section for purposes of any county, city, 37 town, village or school district that has not adopted the provisions of 38 this section. 39 (b) To receive such relief pursuant to this section, a property owner 40 in a participating municipality shall submit a written request to the 41 assessor on a form prescribed by the commissioner within one hundred 42 twenty days following the date upon which the state disaster emergency 43 was declared by the governor, provided, however, that such one hundred 44 twenty day period may be extended to a total of up to one hundred eighty 45 days by a local law, ordinance or resolution adopted by the governing 46 body of the assessing unit. A copy of any such local law, ordinance or 47 resolution shall be filed with the commissioner. Such request shall 48 attach any and all determinations by the Federal Emergency Management 49 Agency, and any and all reports by an insurance adjuster, shall describe 50 in reasonable detail the damage caused to the property by the disaster 51 and the condition of the property following the disaster, and shall be 52 accompanied by supporting documentation, if available. 53 (c) Upon receiving such a request, the assessor shall adopt the find- 54 ing by the Federal Emergency Management Agency or, if such finding does 55 not exist, the assessor shall make a finding as to whether the property 56 lost at least fifty percent of its improved value or, if a participatingS. 1509--B 17 1 municipality has elected to provide assessment relief for real property 2 that lost a lesser percentage of improved value such lesser percentage 3 of its improved value, as a result of a disaster. The assessor shall 4 thereafter adopt or classify the percentage loss of improved value with- 5 in one of the following ranges: 6 (i) At least ten percent but less than twenty percent, provided that 7 this range shall only be applicable if a participating municipality has 8 elected to provide assessment relief for losses within this range, 9 (ii) At least twenty percent but less than thirty percent, provided 10 that this range shall only be applicable if a participating municipality 11 has elected to provide assessment relief for losses within this range, 12 (iii) At least thirty percent but less than forty percent, provided 13 that this range shall only be applicable if a participating municipality 14 has elected to provide assessment relief for losses within this range, 15 (iv) At least forty percent but less than fifty percent, provided that 16 this range shall only be applicable if a participating municipality has 17 elected to provide assessment relief for losses within this range, 18 (v) At least fifty percent but less than sixty percent, 19 (vi) At least sixty percent but less than seventy percent, 20 (vii) At least seventy percent but less than eighty percent, 21 (viii) At least eighty percent but less than ninety percent, 22 (ix) At least ninety percent but less than one hundred percent, or 23 (x) One hundred percent. 24 (d) On or before the thirtieth day after the last date for the filing 25 of requests for relief pursuant to this section, the assessor shall mail 26 written notice of such findings to the property owner and participating 27 municipality. The notice shall indicate that if the property owner is 28 dissatisfied with these findings, he or she may file a complaint with 29 the board of assessment review up until the date specified in such 30 notice, which date shall be the twenty-first day after the last date for 31 the mailing of such notices. If any complaints are so filed, such board 32 shall reconvene upon ten days written notice to the property owner and 33 assessor to hear and determine the complaint, and shall mail written 34 notice of its determination to the assessor and property owner within 35 fifteen days of such hearing. The provisions of article five of this 36 chapter shall govern the review process to the extent practicable. For 37 the purposes of this section only, the applicant may commence, within 38 thirty days of mailing of a written determination, a proceeding under 39 title one of article seven of this chapter or, if applicable, under 40 title one-A of article seven of this chapter. Sections seven hundred 41 twenty-seven and seven hundred thirty-nine of this chapter shall not 42 apply. 43 (e) Where property has lost at least fifty percent of its improved 44 value or, if a participating municipality has elected to provide assess- 45 ment relief for real property that lost a lesser percentage of improved 46 value such lesser percentage, due to a disaster, the assessed value 47 attributable to the improvements on the property on the impacted assess- 48 ment roll shall be reduced by the appropriate percentage specified in 49 paragraph (a) of this subdivision, provided that any exemptions that the 50 property may be receiving shall be adjusted as necessary to account for 51 such reduction in the total assessed value. To the extent the total 52 assessed value of the property originally appearing on such roll exceeds 53 the amount to which it should be reduced pursuant to this section, the 54 excess shall be considered an error in essential fact as defined by 55 subdivision three of section five hundred fifty of this chapter. The 56 assessor shall thereupon be authorized and directed to correct theS. 1509--B 18 1 assessment roll accordingly or, if another person has custody or control 2 of the assessment roll, to direct such person to make the appropriate 3 corrections. If the correction is made after taxes are levied but before 4 such taxes are paid, the collecting officer shall be authorized and 5 directed to correct the applicant's tax bill accordingly. If the 6 correction is made after taxes are paid, the authorities of each partic- 7 ipating municipal corporation shall be authorized and directed to issue 8 a refund in the amount of the excess taxes paid with regard to such 9 participating municipal corporation. 10 (f) The rights contained in this section shall not otherwise diminish 11 any other legally available right of any property owner or party who may 12 otherwise lawfully challenge the valuation or assessment of any real 13 property or improvements thereon. All remaining rights hereby remain 14 and shall be available to the party to whom such rights would otherwise 15 be available notwithstanding this section. 16 4. School districts held harmless. Each school district that is wholly 17 or partially contained within an eligible county shall be held harmless 18 by the state for any reduction in state aid that would have been paid as 19 tax savings pursuant to section thirteen hundred six-a of this chapter 20 incurred due to the provisions of this section. 21 5. Bonds authorized. Serial bonds and, in advance of such, bond antic- 22 ipation notes are hereby authorized pursuant to subdivision thirty- 23 three-e of paragraph a of section 11.00 of the local finance law, 24 provided, however, that any federal community development block grant 25 funding received by such participating municipality, in relation to loss 26 of property tax funding, shall first be used to defease, upon maturity, 27 the interest and principal of any such bond or note so outstanding. 28 § 2. Paragraph a of section 11.00 of the local finance law is amended 29 by adding a new subdivision 33-e to read as follows: 30 33-e. Real property tax refunds and credits. Payments of exemptions, 31 refunds, or credits for real property tax, sewer and water rents, rates 32 and charges and all other real property taxes to be made by a munici- 33 pality, school district or district corporation as a result of providing 34 assessment relief in a state disaster emergency pursuant to section four 35 hundred ninety-seven of the real property tax law, ten years. 36 § 3. This act shall take effect immediately. 37 SUBPART B 38 Section 1. Paragraph (b) of subdivision 1 of section 523 of the real 39 property tax law, as amended by chapter 223 of the laws of 1987, is 40 amended to read as follows: 41 (b) The board of assessment review shall consist of not less than 42 three nor more than five members appointed by the legislative body of 43 the local government or village or as provided by subdivision five of 44 section fifteen hundred thirty-seven of this chapter, if applicable. 45 Members shall have a knowledge of property values in the local govern- 46 ment or village. Neither the assessor nor any member of his or her staff 47 may be appointed to the board of assessment review. A majority of such 48 board shall consist of members who are not officers or employees of the 49 local government or village. 50 § 2. Subdivision 1 of section 1537 of the real property tax law, as 51 added by chapter 512 of the laws of 1993, is amended and a new subdivi- 52 sion 5 is added to read as follows: 53 1. (a) An assessing unit and a county shall have the power to enter 54 into, amend, cancel and terminate an agreement for appraisal services,S. 1509--B 19 1 exemption services, [or] assessment services, or assessment review 2 services, in the manner provided by this section. Such an agreement 3 shall be considered an agreement for the provision of a "joint service" 4 for purposes of article five-G of the general municipal law, notwith- 5 standing the fact that the county would not have the power to perform 6 such services in the absence of such an agreement. 7 (b) Any such agreement shall be approved by both the assessing unit 8 and the county, by a majority vote of the voting strength of each 9 governing body. 10 (c) In the case of an assessing unit, no such agreement shall be 11 submitted to the governing body for approval unless at least forty-five 12 days prior to such submission, the governing body shall have adopted a 13 resolution, subject to a permissive referendum, authorizing the assess- 14 ing unit to negotiate such an agreement with the county; provided, 15 however, that such prior authorization shall not be required for an 16 agreement to amend, cancel or terminate an existing agreement pursuant 17 to this section. 18 5. An agreement between an assessing unit and a county for assessment 19 review services shall provide for the members of the board of assessment 20 review of the assessing unit to be appointed by the legislative body of 21 the county upon the recommendation of the county director of the real 22 property tax services. Each member so appointed shall be a resident of 23 the county but need not be a resident of the assessing unit. The board 24 of assessment review as so constituted shall have the authority to 25 receive, review and resolve petitions for assessment review filed in 26 such assessing unit, and for the corrections of errors therein, to the 27 full extent set forth in article five of this chapter. 28 § 3. Subdivision 1 of section 1408 of the real property tax law, as 29 amended by chapter 473 of the laws of 1984, is amended to read as 30 follows: 31 1. At the time and place and during the hours specified in the notice 32 given pursuant to section fourteen hundred six of this chapter, the 33 board of review shall meet to hear complaints relating to assessments 34 brought before it. The board of trustees and assessors, or a committee 35 of such board constituting at least a majority thereof and the assessors 36 or a board of assessment review constituted pursuant to section five 37 hundred twenty-three of this chapter, or as provided by subdivision five 38 of section fifteen hundred thirty-seven of this chapter, if applicable, 39 shall constitute the board of review. 40 § 4. This act shall take effect immediately. 41 SUBPART C 42 Section 1. Subdivision 4 of section 318 of the real property tax law, 43 as amended by chapter 527 of the laws of 1997 and as further amended by 44 subdivision (b) of section 1 of part W of chapter 56 of the laws of 45 2010, is amended to read as follows: 46 4. Notwithstanding the provisions of this subdivision or any other 47 law, the travel and other actual and necessary expenses incurred by an 48 appointed or elected assessor, or by a person appointed assessor for a 49 forthcoming term, or by an assessor-elect prior to the commencement of 50 his or her term, in satisfactorily completing courses of training as 51 required by this title or as approved by the commissioner, including 52 continuing education courses prescribed by the commissioner which are 53 satisfactorily completed by any elected assessor, shall be a state 54 charge upon audit by the comptroller. Travel and other actual and neces-S. 1509--B 20 1 sary expenses incurred by an acting assessor who has been exercising the 2 powers and duties of the assessor for a period of at least six months, 3 in attending training courses no earlier than twelve months prior to the 4 date when courses of training and education are required, shall also be 5 a state charge upon audit by the comptroller. Candidates for certif- 6 ication as eligible for the position of assessor, other than assessors 7 or assessors-elect, shall be charged for the cost of training materials 8 and shall be responsible for all other costs incurred by them in 9 connection with such training. Notwithstanding the foregoing provisions 10 of this subdivision, if the provider of a training course has asked the 11 commissioner to approve the course for credit only, so that attendees 12 who successfully complete the course would be entitled to receive credit 13 without having their expenses reimbursed by the state, and the commis- 14 sioner has agreed to do so, the travel and other actual and necessary 15 expenses incurred by such attendees shall not be a state charge. 16 § 2. Paragraph f of subdivision 3 of section 1530 of the real property 17 tax law, as amended by chapter 361 of the laws of 1986 and as further 18 amended by subdivision (b) of section 1 of part W of chapter 56 of the 19 laws of 2010, is amended to read as follows: 20 f. Expenses in attending training courses. Notwithstanding the 21 provisions of any other law, the travel and other actual and necessary 22 expenses incurred by a director or a person appointed director for a 23 forthcoming term in attending courses of training as required by this 24 subdivision or as approved by the commissioner shall be a state charge 25 upon audit by the comptroller. Notwithstanding the foregoing provisions 26 of this paragraph, if the provider of a training course has asked the 27 commissioner to approve the course for credit only, so that attendees 28 who successfully complete the course would be entitled to receive credit 29 without having their expenses reimbursed by the state, and the commis- 30 sioner has agreed to do so, the travel and other actual and necessary 31 expenses incurred by such attendees shall not be a state charge. 32 § 3. This act shall take effect immediately. 33 SUBPART D 34 Section 1. Section 104 of the real property tax law, as added by 35 section 1 of part U of chapter 61 of the laws of 2011, is amended to 36 read as follows: 37 § 104. Electronic real property tax administration. 1. Notwithstanding 38 any provision of law to the contrary, the commissioner is hereby author- 39 ized to establish standards for electronic real property tax adminis- 40 tration (E-RPT). Such standards shall set forth the terms and conditions 41 under which the various tasks associated with real property tax adminis- 42 tration may be executed electronically, dispensing with the need for 43 paper documents. Such tasks shall include any or all of the following: 44 (a) The filing of exemption applications; 45 (b) The filing of petitions for administrative review of assessments; 46 (c) The filing of petitions for judicial review of assessments; 47 (d) The filing of applications for administrative corrections of 48 errors; 49 (e) The issuance of statements of taxes; 50 (f) The payment of taxes, subject to the provisions of sections five 51 and five-b of the general municipal law; 52 (g) The provision of receipts for the payment of taxes; 53 (h) The issuance of taxpayer notices required by law, including 54 sections five hundred eight, five hundred ten, five hundred ten-a, fiveS. 1509--B 21 1 hundred eleven, five hundred twenty-five and five hundred fifty-one-a 2 through five hundred fifty-six-b of this chapter; and 3 (i) The furnishing of notices and certificates under this chapter 4 relating to state equalization rates, residential assessment ratios, 5 special franchise assessments, railroad ceilings, taxable state lands, 6 advisory appraisals, and the certification of assessors and county 7 directors or real property tax services, subject to the provisions of 8 subdivision five of this section. 9 2. Such standards shall be developed after consultation with local 10 government officials, the office of court administration in the case of 11 standards relating to petitions for judicial review of assessments, and 12 the office of the state comptroller in the case of standards relating to 13 payments or taxes and the issuance of receipts therefor. 14 3. (a) Taxpayers shall not be required to accept notices, statements 15 of taxes, receipts for the payment of taxes, or other documents elec- 16 tronically unless they have so elected. Taxpayers who have not so 17 elected shall be sent such communications in the manner otherwise 18 provided by law. 19 (b) [Assessors and other municipal officials shall not be required to20accept and respond to communications from the commissioner electron-21ically.22(c)] The governing board of any municipal corporation may, by local 23 law, ordinance or resolution, determine that it is in the public inter- 24 est for such municipal corporation to provide electronic real property 25 tax administration. Upon adoption of such local law, ordinance or resol- 26 ution, such municipal corporation shall comply with standards set forth 27 by the commissioner. 28 [(d)] (c) The standards prescribed by the commissioner pursuant to 29 this section relating to communications with taxpayers shall provide for 30 the collection of electronic contact information, such as e-mail 31 addresses and/or social network usernames, from taxpayers who have 32 elected to receive electronic communications in accordance with the 33 provisions of this section. Such information shall be exempt from public 34 disclosure in accordance with section eighty-nine of the public officers 35 law. 36 4. When a document has been transmitted electronically in accordance 37 with the provisions of this section and the standards adopted by the 38 commissioner hereunder, it shall be deemed to satisfy the applicable 39 legal requirements to the same extent as if it had been mailed via the 40 United States postal service. 41 5. (a) On and after January first, two thousand twenty, whenever the 42 commissioner is obliged by law to mail a notice of the determination of 43 a tentative state equalization rate, tentative special franchise assess- 44 ment, tentative assessment ceiling or other tentative determination of 45 the commissioner that is subject to administrative review, the commis- 46 sioner shall be authorized to furnish the required notice by e-mail, or 47 by causing it to be posted on the department's website, or both, at his 48 or her discretion. When providing notice of a tentative determination 49 by causing it to be posted on the department's website, the commissioner 50 also shall e-mail the parties required by law to receive such notice, to 51 inform them that the notice of tentative determination has been posted 52 on the website. Such notice of tentative determination shall not be 53 deemed complete unless such emails have been sent. Notwithstanding any 54 provision of law to the contrary, the commissioner shall not be required 55 to furnish such notices by postal mail, except as provided by paragraphs 56 (d) and (e) of this subdivision.S. 1509--B 22 1 (b) When providing notice of a tentative determination by e-mail or 2 posting pursuant to this subdivision, the commissioner shall specify an 3 e-mail address to which complaints regarding such tentative determi- 4 nation may be sent. A complaint that is sent to the commissioner by 5 e-mail to the specified e-mail address by the date prescribed by law for 6 the mailing of such complaints shall be deemed valid to the same extent 7 as if it had been sent by postal mail. 8 (c) When a final determination is made in such a matter, notice of the 9 final determination and any certificate relating thereto shall be 10 furnished by e-mail or by a website posting, or both at the commission- 11 er's discretion, and need not be provided by postal mail, except as 12 provided by paragraphs (d) and (e) of this subdivision. When providing 13 notice of a final determination by website posting, the commissioner 14 also shall e-mail the parties required by law to receive such notice, to 15 inform them that the notice of final determination has been posted on 16 the website. Such notice of final determination shall not be deemed 17 complete unless such emails have been sent. 18 (d) If an assessor has advised the commissioner in writing that he or 19 she prefers to receive the notices described in this subdivision by 20 postal mail, the commissioner shall thereafter send such notices to that 21 assessor by postal mail, and need not send such notices to that assessor 22 by e-mail. The commissioner shall prescribe a form that assessors may 23 use to advise the commissioner of their preference for postal mail. 24 (e) If the commissioner learns that an e-mail address to which a 25 notice has been sent pursuant to this subdivision is not valid, and the 26 commissioner cannot find a valid e-mail address for that party, the 27 commissioner shall resend the notice to the party by postal mail. If the 28 commissioner does not have a valid e-mail address for the party at the 29 time the notice is initially required to be sent, the commissioner shall 30 send the notice to that party by postal mail. 31 (f) On or before November thirtieth, two thousand nineteen, the 32 commissioner shall send a notice by postal mail to assessors, to chief 33 executive officers of assessing units, and to owners of special fran- 34 chise property and railroad property, informing them of the provisions 35 of this section. The notice to be sent to assessors shall include a 36 copy of the form prescribed pursuant to paragraph (d) of this subdivi- 37 sion. 38 (g) As used in this subdivision, the term "postal mail" shall mean 39 mail that is physically delivered to the addressee by the United States 40 postal service. 41 § 2. This act shall take effect immediately. 42 SUBPART E 43 Section 1. Subdivision 4 of section 302 of the real property tax law, 44 as amended by chapter 348 of the laws of 2007, is amended to read as 45 follows: 46 4. The taxable status of a special franchise shall be determined on 47 the basis of its value and its ownership as of the first day of [July] 48 January of the year preceding the year in which the assessment roll on 49 which such property is to be assessed is completed and filed in the 50 office of the city or town clerk, except that taxable status of such 51 properties shall be determined on the basis of ownership as of the first 52 day of [July] January of the second year preceding the date required by 53 law for the filing of the final assessment roll for purposes of all 54 village assessment rolls.S. 1509--B 23 1 § 2. Subdivision 2 of section 606 of the real property tax law, as 2 amended by chapter 743 of the laws of 2005 and as further amended by 3 subdivision (b) of section 1 of part W of chapter 56 of the laws of 4 2010, is amended to read as follows: 5 2. In any assessing unit which has completed a revaluation since nine- 6 teen hundred fifty-three or which does not contain property that was 7 assessed in nineteen hundred fifty-three, the commissioner shall deter- 8 mine the full value of such special franchise as of the [valuation date9of the assessing unit] taxable status date specified by subdivision four 10 of section three hundred two of this chapter. Such full value shall be 11 determined by the commissioner for purposes of sections six hundred 12 eight, six hundred fourteen and six hundred sixteen of this article. 13 These full values shall be entered on the assessment roll at the level 14 of assessment, which shall be the uniform percentage of value, as 15 required by section five hundred two of this chapter, appearing on the 16 tentative assessment roll upon which the assessment is entered. Whenever 17 a final state equalization rate, or, in the case of a special assessing 18 unit, a class equalization rate, is established that is different from a 19 level of assessment applied pursuant to this paragraph, any public offi- 20 cial having custody of that assessment roll is hereby authorized and 21 directed to recompute these assessments to reflect that equalization 22 rate, provided such final rate is established by the commissioner at 23 least ten days prior to the date for levy of taxes against those assess- 24 ments. 25 § 3. This act shall take effect January 1, 2020. 26 SUBPART F 27 Section 1. The real property tax law is amended by adding a new 28 section 575-a to read as follows: 29 § 575-a. Electric generating facility annual reports. 1. Every corpo- 30 ration, company, association, joint stock association, partnership and 31 person, their lessees, trustees or receivers appointed by any court 32 whatsoever, owning, operating or managing any electric generating facil- 33 ity in the state shall annually file with the commissioner, by April 34 thirtieth, a report showing the inventory, revenue, and expenses associ- 35 ated therewith for the most recent fiscal year. Such report shall be in 36 the form and manner prescribed by the commissioner. 37 2. When used in this section, "electric generating facility" shall 38 mean any facility that generates electricity for sale, directly or indi- 39 rectly, to the public, including the land upon which the facility is 40 located, any equipment used in such generation, and equipment leading 41 from the facility to the interconnection with the electric transmission 42 system, but shall not include: 43 (a) any equipment in the electric transmission system; and 44 (b) any electric generating equipment owned or operated by a residen- 45 tial customer of an electric generating facility, including the land 46 upon which the equipment is located, when located and used at his or her 47 residence. 48 3. Every electric generating facility owner, operator, or manager 49 failing to make the report required by this section, or failing to make 50 any report required by the commissioner pursuant to this section within 51 the time specified by it, shall forfeit to the people of the state the 52 sum of ten thousand dollars for every such failure and the additional 53 sum of one thousand dollars for each day that such failure continues. 54 § 2. This act shall take effect January 1, 2020.S. 1509--B 24 1 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 2 sion, section or subpart of this act shall be adjudged by any court of 3 competent jurisdiction to be invalid, such judgment shall not affect, 4 impair, or invalidate the remainder thereof, but shall be confined in 5 its operation to the clause, sentence, paragraph, subdivision, section 6 or subpart thereof directly involved in the controversy in which such 7 judgment shall have been rendered. It is hereby declared to be the 8 intent of the legislature that this act would have been enacted even if 9 such invalid provisions had not been included herein. 10 § 3. This act shall take effect immediately provided, however, that 11 the applicable effective date of Subparts A through F of this Part shall 12 be as specifically set forth in the last section of such Subparts. 13 PART K 14 Section 1. Section 3-d of the general municipal law, as added by 15 section 2 of part E of chapter 59 of the laws of 2018, is REPEALED. 16 § 2. This act shall take effect immediately and shall be deemed to 17 have been in full force and effect on and after April 12, 2018. 18 PART L 19 Section 1. The tax law is amended by adding a new section 44 to read 20 as follows: 21 § 44. Employer-provided child care credit. (a) General. A taxpayer 22 subject to tax under article nine-A, twenty-two, or thirty-three of this 23 chapter shall be allowed a credit against such tax in an amount equal to 24 the portion of the credit that is allowed to the taxpayer under section 25 45F of the internal revenue code that is attributable to (i) qualified 26 child care expenditures paid or incurred with respect to a qualified 27 child care facility with a situs in the state, and to (ii) qualified 28 child care resource and referral expenditures paid or incurred with 29 respect to the taxpayer's employees working in the state. The credit 30 allowable under this subdivision for any taxable year shall not exceed 31 one hundred fifty thousand dollars. If the entity operating the quali- 32 fied child care facility is a partnership or a New York S corporation, 33 then such cap shall be applied at the entity level, so the aggregate 34 credit allowed to all the partners or shareholders of such entity in a 35 taxable year does not exceed one hundred fifty thousand dollars. 36 (b) Credit recapture. If there is a cessation of operation or change 37 in ownership, as defined by section 45F of the internal revenue code 38 relating to a qualified child care facility with a situs in the state, 39 the taxpayer shall add back the applicable recapture percentage of the 40 credit allowed under this section in accordance with the recapture 41 provisions of section 45F of the internal revenue code, but the recap- 42 ture amount shall be limited to the credit allowed under this section. 43 (c) Reporting requirements. A taxpayer that has claimed a credit under 44 this section shall notify the commissioner of any cessation of opera- 45 tion, change in ownership, or agreement to assume recapture liability as 46 such terms are defined by section 45F of the internal revenue code, in 47 the form and manner prescribed by the commissioner. 48 (d) Definitions. The terms "qualified child care expenditures", "qual- 49 ified child care facility", "qualified child care resource and referral 50 expenditure", "cessation of operation", "change of ownership", and 51 "applicable recapture percentage" shall have the same meanings as in 52 section 45F of the internal revenue code.S. 1509--B 25 1 (e) Cross-references. For application of the credit provided for in 2 this section, see the following provisions of this chapter: 3 (1) article 9-A: section 210-B, subdivision 53; 4 (2) article 22: section 606(i), subsections (i) and (jjj); 5 (3) article 33: section 1511, subdivision (dd). 6 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 7 sion 53 to read as follows: 8 53. Employer-provided child care credit. (a) Allowance of credit. A 9 taxpayer shall be allowed a credit, to be computed as provided in 10 section forty-four of this chapter, against the tax imposed by this 11 article. 12 (b) Application of credit. The credit allowed under this subdivision 13 for any taxable year may not reduce the tax due for such 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 such amount or if the taxpayer otherwise pays tax based on the 18 fixed dollar minimum amount, any amount of credit thus not deductible in 19 such taxable year will be treated as an overpayment of tax to be credit- 20 ed or refunded in accordance with the provisions of section one thousand 21 eighty-six of this chapter. Provided, however, the provisions of 22 subsection (c) of section one thousand eighty-eight of this chapter 23 notwithstanding, no interest shall be paid thereon. 24 (c) Credit recapture. For provisions requiring recapture of credit, 25 see section forty-four of this chapter. 26 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 27 of the tax law is amended by adding a new clause (xliv) to read as 28 follows: 29 (xliv) Employer-provided child Amount of credit under subdivision 30 care credit (jjj) fifty-three of section two hundred 31 ten-B 32 § 4. Section 606 of the tax law is amended by adding a new subsection 33 (jjj) to read as follows: 34 (jjj) Employer-provided child care credit. (1) Allowance of credit. A 35 taxpayer shall be allowed a credit, to be computed as provided in 36 section forty-four of this chapter, against the tax imposed by this 37 article. 38 (2) Application of credit. If the amount of the credit allowed under 39 this subsection for any taxable year exceeds the taxpayer's tax for such 40 year, the excess will be treated as an overpayment of tax to be credited 41 or refunded in accordance with the provisions of section six hundred 42 eighty-six of this article, provided, however, that no interest will be 43 paid thereon. 44 (3) Credit recapture. For provisions requiring recapture of credit, 45 see section forty-four of this chapter. 46 § 5. Section 1511 of the tax law is amended by adding a new subdivi- 47 sion (dd) to read as follows: 48 (dd) Employer-provided child care credit. (1) Allowance of credit. A 49 taxpayer shall be allowed a credit, to be computed as provided in 50 section forty-four of this chapter, against the tax imposed by this 51 article. 52 (2) Application of credit. The credit allowed under this subdivision 53 shall not reduce the tax due for such year to be less than the minimum 54 fixed by paragraph four of subdivision (a) of section fifteen hundred 55 two or section fifteen hundred two-a of this article, whichever is 56 applicable. However, if the amount of the credit allowed under thisS. 1509--B 26 1 subdivision for any taxable year reduces the taxpayer's tax to such 2 amount, any amount of credit thus not deductible will be treated as an 3 overpayment of tax to be credited or refunded in accordance with the 4 provisions of section one thousand eighty-six of this chapter. 5 Provided, however, the provisions of subsection (c) of one thousand 6 eighty-eight of this chapter notwithstanding, no interest shall be paid 7 thereon. 8 (3) Credit recapture. For provisions requiring recapture of credit, 9 see section forty-four of this chapter 10 § 6. This act shall take effect immediately and apply to years begin- 11 ning on or after January 1, 2020. 12 PART M 13 Section 1. Paragraph 1 of subsection (b) of section 631 of the tax law 14 is amended by adding a new subparagraph (D-1) to read as follows: 15 (D-1) gambling winnings in excess of five thousand dollars from wager- 16 ing transactions within the state; or 17 § 2. Paragraph 2 of subsection (b) of section 671 of the tax law is 18 amended by adding a new subparagraph (E) to read as follows: 19 (E) Any gambling winnings from a wagering transaction within this 20 state, if the proceeds from the wager are subject to withholding under 21 section three thousand four hundred two of the internal revenue code. 22 § 3. This act shall take effect immediately and shall apply to taxable 23 years beginning on or after January 1, 2019; provided, however that the 24 amendments to subsection (b) of section 671 of the tax law made by 25 section two of this act shall not affect the expiration of such 26 subsection and shall be deemed to expire therewith. 27 PART N 28 Section 1. Subdivision (c) of section 42 of the tax law, as added by 29 section 1 of part RR of chapter 60 of the laws of 2016, is amended to 30 read as follows: 31 (c) For purposes of this [subdivision] section, the term "eligible 32 farmer" means a taxpayer whose federal gross income from farming as 33 defined in subsection (n) of section six hundred six of this chapter for 34 the taxable year is at least two-thirds of excess federal gross income. 35 Excess federal gross income means the amount of federal gross income 36 from all sources for the taxable year in excess of thirty thousand 37 dollars. For [the] purposes of this [subdivision] section, payments from 38 the state's farmland protection program, administered by the department 39 of agriculture and markets, shall be included as federal gross income 40 from farming for otherwise eligible farmers. 41 § 2. Section 42 of the tax law is amended by adding a new subdivision 42 (d-1) to read as follows: 43 (d-1) Special rules. If more than fifty percent of such eligible farm- 44 er's federal gross income from farming is from the sale of wine from a 45 licensed farm winery as provided for in article six of the alcoholic 46 beverage control law, or from the sale of cider from a licensed farm 47 cidery as provided for in section fifty-eight-c of the alcoholic bever- 48 age control law, then an eligible farm employee of such eligible farmer 49 shall be included for purposes of calculating the amount of credit 50 allowed under this section only if such eligible farm employee is 51 employed by such eligible farmer on qualified agricultural property asS. 1509--B 27 1 defined in paragraph four of subsection (n) of section six hundred six 2 of this chapter. 3 § 3. This act shall take effect immediately and shall apply to taxable 4 years beginning on or after January 1, 2019. 5 PART O 6 Section 1. Section 12 of part N of chapter 61 of the laws of 2005, 7 amending the tax law relating to certain transactions and related infor- 8 mation and relating to the voluntary compliance initiative, as amended 9 by section 1 of part M of chapter 60 of the laws of 2016, is amended to 10 read as follows: 11 § 12. This act shall take effect immediately; provided, however, that 12 (i) section one of this act shall apply to all disclosure statements 13 described in paragraph 1 of subdivision (a) of section 25 of the tax 14 law, as added by section one of this act, that were required to be filed 15 with the internal revenue service at any time with respect to "listed 16 transactions" as described in such paragraph 1, and shall apply to all 17 disclosure statements described in paragraph 1 of subdivision (a) of 18 section 25 of the tax law, as added by section one of this act, that 19 were required to be filed with the internal revenue service with respect 20 to "reportable transactions" as described in such paragraph 1, other 21 than "listed transactions", in which a taxpayer participated during any 22 taxable year for which the statute of limitations for assessment has not 23 expired as of the date this act shall take effect, and shall apply to 24 returns or statements described in such paragraph 1 required to be filed 25 by taxpayers (or persons as described in such paragraph) with the 26 commissioner of taxation and finance on or after the sixtieth day after 27 this act shall have become a law; and 28 (ii) sections two through four and seven through nine of this act 29 shall apply to any tax liability for which the statute of limitations on 30 assessment has not expired as of the date this act shall take effect; 31 and 32 (iii) provided, further, that the provisions of this act, except 33 section five of this act, shall expire and be deemed repealed July 1, 34 [2019] 2024; provided, that, such expiration and repeal shall not affect 35 any requirement imposed pursuant to this act. 36 § 2. Subsection (aa) of section 685 of the tax law is REPEALED and a 37 new subsection (aa) is added to read as follows: 38 (aa) Tax preparer penalty.-- (1) If a tax return preparer takes a 39 position on any income tax return or credit claim form that either 40 understates the tax liability or increases the claim for a refund, and 41 the preparer knew, or reasonably should have known, that said position 42 was not proper, and such position was not adequately disclosed on the 43 return or in a statement attached to the return, such income tax prepar- 44 er shall pay a penalty of between one hundred and one thousand dollars. 45 (2) If a tax return preparer takes a position on any income tax return 46 or credit claim form that either understates the tax liability or 47 increases the claim for a refund and the understatement of the tax 48 liability or the increased claim for refund is due to the preparer's 49 reckless or intentional disregard of the law, rules or regulations, such 50 preparer shall pay a penalty of between five hundred and five thousand 51 dollars. The amount of the penalty payable by any person by reason of 52 this paragraph shall be reduced by the amount of the penalty paid by 53 such person by reason of paragraph one of this subsection.S. 1509--B 28 1 (3) For purposes of this subsection, the term "understatement of tax 2 liability" means any understatement of the net amount payable with 3 respect to any tax imposed under this article or any overstatement of 4 the net amount creditable or refundable with respect to any such tax. 5 (4) For purposes of this subsection, the term "tax return prepared" 6 shall have the same meaning as defined in paragraph five of subsection 7 (g) of section six hundred fifty-eight of this article. 8 (5) This subsection shall not apply if the penalty under subsection 9 (r) of this section is imposed on the tax return preparer with respect 10 to such understatement. 11 § 3. Subsection (u) of section 685 of the tax law is amended by adding 12 three new paragraphs (1), (2), and (6) to read as follows: 13 (1) Failure to sign return or claim for refund. If a tax return 14 preparer who is required pursuant to paragraph one of subsection (g) of 15 section six hundred fifty-eight of this article to sign a return or 16 claim for refund fails to comply with such requirement with respect to 17 such return or claim for refund, the tax return preparer shall be 18 subject to a penalty of two hundred fifty dollars for each such failure 19 to sign, unless it is shown that such failure is due to reasonable cause 20 and not due to willful neglect. The maximum penalty imposed under this 21 paragraph on any tax return preparer with respect to returns filed 22 during any calendar year by the tax return preparer must not exceed ten 23 thousand dollars. Provided, however, that if a tax return preparer has 24 been penalized under this paragraph for a preceding calendar year and 25 again fails to sign his or her name on any return that requires the tax 26 return preparer's signature during a subsequent calendar year, then the 27 penalty under this paragraph for each failure will be five hundred 28 dollars, and no annual cap will apply. This paragraph shall not apply if 29 the penalty under paragraph three of subsection (g) of section thirty- 30 two of this chapter is imposed on the tax return preparer with respect 31 to such return or claim for refund. 32 (2) Failure to furnish identifying number. If a tax return preparer 33 fails to include any identifying number required to be included on any 34 return or claim for refund pursuant to paragraph two of subsection (g) 35 of section six hundred fifty-eight of this article, the tax return 36 preparer shall be subject to a penalty of one hundred dollars for each 37 such failure, unless it is shown that such failure is due to reasonable 38 cause and not willful neglect. The maximum penalty imposed under this 39 paragraph on any tax return preparer with respect to returns filed 40 during any calendar year must not exceed two thousand five hundred 41 dollars; provided, however, that if a tax return preparer has been 42 penalized under this paragraph for a preceding calendar year and again 43 fails to include the identifying number on one or more returns during a 44 subsequent calendar year, then the penalty under this paragraph for each 45 failure will be two hundred fifty dollars, and no annual cap will apply. 46 This paragraph shall not apply if the penalty under paragraph four of 47 subsection (g) of section thirty-two of this chapter is imposed on the 48 tax return preparer with respect to such return or claim for refund. 49 (6) For purposes of this subsection, the term "tax return preparer" 50 shall have the same meaning as defined in paragraph five of subsection 51 (g) of section six hundred fifty-eight of this article. 52 § 4. This act shall take effect immediately; provided, however, that 53 the amendments to subsection (u) of section 685 of the tax law made by 54 section three of this act shall apply to tax documents filed or required 55 to be filed for taxable years beginning on or after January 1, 2019.S. 1509--B 29 1 PART P 2 Section 1. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph 3 (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as 4 added by section 1 of part R of chapter 59 of the laws of 2017, are 5 amended to read as follows: 6 (iii) For taxable years beginning in two thousand twenty the following 7 rates shall apply: 8 If the New York taxable income is: The tax is: 9 Not over $17,150 4% of the New York taxable income 10 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 11 $17,150 12 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 13 $23,600 14 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 15 $27,900 16 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over 17 $43,000 18 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over 19 $161,550 20 Over $323,200 but not over $19,674 plus 6.85% of excess 21 $2,155,350 $323,200 over 22 Over $2,155,350 $145,177 plus 8.82% of excess over 23 $2,155,350 24 (iv) For taxable years beginning in two thousand twenty-one the 25 following rates shall apply: 26 If the New York taxable income is: The tax is: 27 Not over $17,150 4% of the New York taxable income 28 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 29 $17,150 30 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 31 $23,600 32 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 33 $27,900 34 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 35 $43,000 36 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 37 $161,550 38 Over $323,200 but not over $19,403 plus 6.85% of excess 39 $2,155,350 over $323,200 40 Over $2,155,350 $144,905 plus 8.82% of excess over 41 $2,155,350 42 (v) For taxable years beginning in two thousand twenty-two the follow- 43 ing rates shall apply: 44 If the New York taxable income is: The tax is: 45 Not over $17,150 4% of the New York taxable income 46 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 47 $17,150 48 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 49 $23,600 50 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 51 $27,900 52 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 53 $161,550 54 Over $323,200 but not over $2,155,350 $19,124 plus 55 6.85% of excess over $323,200S. 1509--B 30 1 Over $2,155,350 $144,626 plus 8.82% of excess over 2 $2,155,350 3 (vi) For taxable years beginning in two thousand twenty-three the 4 following rates shall apply: 5 If the New York taxable income is: The tax is: 6 Not over $17,150 4% of the New York taxable income 7 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 8 $17,150 9 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 10 $23,600 11 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 12 $27,900 13 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 14 $161,550 15 Over $323,200 but not over $18,834 plus 6.85% of 16 $2,155,350 excess over $323,200 17 Over $2,155,350 $144,336 plus 8.82% of excess over 18 $2,155,350 19 (vii) For taxable years beginning in two thousand twenty-four the 20 following rates shall apply: 21 If the New York taxable income is: The tax is: 22 Not over $17,150 4% of the New York taxable income 23 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 24 $17,150 25 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 26 $23,600 27 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess over 28 $27,900 29 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 30 $161,550 31 Over $323,200 but not over $18,544 plus 6.85% of 32 $2,155,350 excess over $323,200 33 Over $2,155,350 $144,047 plus 8.82% of excess over 34 $2,155,350 35 § 2. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of 36 paragraph 1 of subsection (b) of section 601 of the tax law, as added by 37 section 2 of part R of chapter 59 of the laws of 2017, are amended to 38 read as follows: 39 (iii) For taxable years beginning in two thousand twenty the following 40 rates shall apply: 41 If the New York taxable income is: The tax is: 42 Not over $12,800 4% of the New York taxable income 43 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 44 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 45 $17,650 46 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 47 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 48 $32,200 49 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 50 $107,650 51 Over $269,300 but not over $16,524 plus 6.85% of 52 $1,616,450 excess over $269,300 53 Over $1,616,450 $108,804 plus 8.82% of excess over 54 $1,616,450 55 (iv) For taxable years beginning in two thousand twenty-one the 56 following rates shall apply:S. 1509--B 31 1 If the New York taxable income is: The tax is: 2 Not over $12,800 4% of the New York taxable income 3 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 4 $12,800 5 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 6 $17,650 7 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 8 $20,900 9 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 10 $32,200 11 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 12 $107,650 13 Over $269,300 but not over $16,304 plus 6.85% of 14 $1,616,450 excess over $269,300 15 Over $1,616,450 $108,584 plus 8.82% of excess over 16 $1,616,450 17 (v) For taxable years beginning in two thousand twenty-two the follow- 18 ing rates shall apply: 19 If the New York taxable income is: The tax is: 20 Not over $12,800 4% of the New York taxable income 21 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 22 $12,800 23 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 24 $17,650 25 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 26 $20,900 27 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 28 $107,650 29 Over $269,300 but not over $16,079 plus 6.85% of excess 30 $1,616,450 over $269,300 31 Over $1,616,450 $108,359 plus 8.82% of excess over 32 $1,616,450 33 (vi) For taxable years beginning in two thousand twenty-three the 34 following rates shall apply: 35 If the New York taxable income is: The tax is: 36 Not over $12,800 4% of the New York taxable income 37 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 38 $12,800 39 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 40 $17,650 41 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 42 $20,900 43 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess over 44 $107,650 45 Over $269,300 but not over $15,845 plus 6.85% of excess 46 $1,616,450 over $269,300 47 Over $1,616,450 $108,125 plus 8.82% of excess over 48 $1,616,450 49 (vii) For taxable years beginning in two thousand twenty-four the 50 following rates shall apply: 51 If the New York taxable income is: The tax is: 52 Not over $12,800 4% of the New York taxable income 53 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 54 $12,800 55 Over $17,650 but not over $20,900 $730 plus 5.25% of excess overS. 1509--B 32 1 $17,650 2 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 3 $20,900 4 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 5 $107,650 6 Over $269,300 but not over $15,612 plus 6.85% of excess 7 $1,616,450 over $269,300 8 Over $1,616,450 $107,892 plus 8.82% of excess over 9 $1,616,450 10 § 3. Clauses (iii), (iv), (v), (vi) and (vii) of subparagraph (B) of 11 paragraph 1 of subsection (c) of section 601 of the tax law, as added by 12 section 3 of part R of chapter 59 of the laws of 2017, is amended to 13 read as follows: 14 (iii) For taxable years beginning in two thousand twenty the following 15 rates shall apply: 16 If the New York taxable income is: The tax is: 17 Not over $8,500 4% of the New York taxable income 18 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 19 $8,500 20 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 21 $11,700 22 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 23 $13,900 24 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 25 $21,400 26 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 27 $80,650 28 Over $215,400 but not over $13,288 plus 6.85% of excess 29 $1,077,550 over $215,400 30 Over $1,077,550 $72,345 plus 8.82% of excess over 31 $1,077,550 32 (iv) For taxable years beginning in two thousand twenty-one the 33 following rates shall apply: 34 If the New York taxable income is: The tax is: 35 Not over $8,500 4% of the New York taxable income 36 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 37 $8,500 38 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 39 $11,700 40 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 41 $13,900 42 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 43 $21,400 44 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 45 $80,650 46 Over $215,400 but not over $13,109 plus 6.85% of excess 47 $1,077,550 over $215,400 48 Over $1,077,550 $72,166 plus 8.82% of excess over 49 $1,077,550 50 (v) For taxable years beginning in two thousand twenty-two the follow- 51 ing rates shall apply: 52 If the New York taxable income is: The tax is: 53 Not over $8,500 4% of the New York taxable income 54 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 55 $8,500 56 Over $11,700 but not over $13,900 $484 plus 5.25% of excess overS. 1509--B 33 1 $11,700 2 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 3 $13,900 4 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 5 $80,650 6 Over $215,400 but not over $12,926 plus 6.85% of excess 7 $1,077,550 over $215,400 8 Over $1,077,550 $71,984 plus 8.82% of excess over 9 $1,077,550 10 (vi) For taxable years beginning in two thousand twenty-three the 11 following rates shall apply: 12 If the New York taxable income is: The tax is: 13 Not over $8,500 4% of the New York taxable income 14 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 15 $8,500 16 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 17 $11,700 18 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 19 $13,900 20 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 21 $80,650 22 Over $215,400 but not over $12,738 plus 6.85% of excess 23 $1,077,550 over $215,400 24 Over $1,077,550 $71,796 plus 8.82% of excess over 25 $1,077,550 26 (vii) For taxable years beginning in two thousand twenty-four the 27 following rates shall apply: 28 If the New York taxable income is: The tax is: 29 Not over $8,500 4% of the New York taxable income 30 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 31 $8,500 32 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 33 $11,700 34 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 35 $13,900 36 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 37 $80,650 38 Over $215,400 but not over $12,550 plus 6.85% of excess 39 $1,077,550 over $215,400 40 Over $1,077,550 $71,608 plus 8.82% of excess over 41 $1,077,550 42 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 43 601 of the tax law, as amended by section 4 of part R of chapter 59 of 44 the laws of 2017, is amended to read as follows: 45 (D) The tax table benefit is the difference between (i) the amount of 46 taxable income set forth in the tax table in paragraph one of subsection 47 (a) of this section not subject to the 8.82 percent rate of tax for the 48 taxable year multiplied by such rate and (ii) the dollar denominated tax 49 for such amount of taxable income set forth in the tax table applicable 50 to the taxable year in paragraph one of subsection (a) of this section 51 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 52 of this paragraph. The fraction for this subparagraph is computed as 53 follows: the numerator is the lesser of fifty thousand dollars or the 54 excess of New York adjusted gross income for the taxable year over two 55 million dollars and the denominator is fifty thousand dollars. This 56 subparagraph shall apply only to taxable years beginning on or afterS. 1509--B 34 1 January first, two thousand twelve and before January first, two thou- 2 sand [twenty] twenty-five. 3 § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 4 601 of the tax law, as amended by section 5 of part R of chapter 59 of 5 the laws of 2017, is amended to read as follows: 6 (C) The tax table benefit is the difference between (i) the amount of 7 taxable income set forth in the tax table in paragraph one of subsection 8 (b) of this section not subject to the 8.82 percent rate of tax for the 9 taxable year multiplied by such rate and (ii) the dollar denominated tax 10 for such amount of taxable income set forth in the tax table applicable 11 to the taxable year in paragraph one of subsection (b) of this section 12 less the sum of the tax table benefits in subparagraphs (A) and (B) of 13 this paragraph. The fraction for this subparagraph is computed as 14 follows: the numerator is the lesser of fifty thousand dollars or the 15 excess of New York adjusted gross income for the taxable year over one 16 million five hundred thousand dollars and the denominator is fifty thou- 17 sand dollars. This subparagraph shall apply only to taxable years begin- 18 ning on or after January first, two thousand twelve and before January 19 first, two thousand [twenty] twenty-five. 20 § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 21 601 of the tax law, as amended by section 6 of part R of chapter 59 of 22 the laws of 2017, is amended to read as follows: 23 (C) The tax table benefit is the difference between (i) the amount of 24 taxable income set forth in the tax table in paragraph one of subsection 25 (c) of this section not subject to the 8.82 percent rate of tax for the 26 taxable year multiplied by such rate and (ii) the dollar denominated tax 27 for such amount of taxable income set forth in the tax table applicable 28 to the taxable year in paragraph one of subsection (c) of this section 29 less the sum of the tax table benefits in subparagraphs (A) and (B) of 30 this paragraph. The fraction for this subparagraph is computed as 31 follows: the numerator is the lesser of fifty thousand dollars or the 32 excess of New York adjusted gross income for the taxable year over one 33 million dollars and the denominator is fifty thousand dollars. This 34 subparagraph shall apply only to taxable years beginning on or after 35 January first, two thousand twelve and before January first, two thou- 36 sand [twenty] twenty-five. 37 § 7. This act shall take effect immediately. 38 PART Q 39 Section 1. Subsection (g) of section 615 of the tax law, as amended by 40 section 1 of part S of chapter 59 of the laws of 2017, is amended to 41 read as follows: 42 (g) Notwithstanding subsection (a) of this section, the New York item- 43 ized deduction for charitable contributions shall be the amount allowed 44 under section one hundred seventy of the internal revenue code, as modi- 45 fied by paragraph nine of subsection (c) of this section and as limited 46 by this subsection. (1) With respect to an individual whose New York 47 adjusted gross income is over one million dollars and no more than ten 48 million dollars, the New York itemized deduction shall be an amount 49 equal to fifty percent of any charitable contribution deduction allowed 50 under section one hundred seventy of the internal revenue code for taxa- 51 ble years beginning after two thousand nine and before two thousand 52 [twenty] twenty-five. With respect to an individual whose New York 53 adjusted gross income is over one million dollars, the New York itemized 54 deduction shall be an amount equal to fifty percent of any charitableS. 1509--B 35 1 contribution deduction allowed under section one hundred seventy of the 2 internal revenue code for taxable years beginning in two thousand nine 3 or after two thousand [nineteen] twenty-four. 4 (2) With respect to an individual whose New York adjusted gross income 5 is over ten million dollars, the New York itemized deduction shall be an 6 amount equal to twenty-five percent of any charitable contribution 7 deduction allowed under section one hundred seventy of the internal 8 revenue code for taxable years beginning after two thousand nine and 9 ending before two thousand [twenty] twenty-five. 10 § 2. Subdivision (g) of section 11-1715 of the administrative code of 11 the city of New York, as amended by section 2 of part S of chapter 59 of 12 the laws of 2017, is amended to read as follows: 13 (g) Notwithstanding subdivision (a) of this section, the city itemized 14 deduction for charitable contributions shall be the amount allowed under 15 section one hundred seventy of the internal revenue code, as limited by 16 this subdivision. (1) With respect to an individual whose New York 17 adjusted gross income is over one million dollars but 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 § 3. This act shall take effect immediately and shall apply to taxable 35 years beginning on or after January 1, 2018. 36 PART R 37 Section 1. Paragraph (a) of subdivision 25 of section 210-B of the tax 38 law, as amended by chapter 315 of the laws of 2017, is amended to read 39 as follows: 40 (a) General. A taxpayer shall be allowed a credit against the tax 41 imposed by this article. Such credit, to be computed as hereinafter 42 provided, shall be allowed for bioheating fuel, used for space heating 43 or hot water production for residential purposes within this state 44 purchased before January first, two thousand [twenty] twenty-three. Such 45 credit shall be $0.01 per percent of biodiesel per gallon of bioheating 46 fuel, not to exceed twenty cents per gallon, purchased by such taxpayer. 47 Provided, however, that on or after January first, two thousand seven- 48 teen, this credit shall not apply to bioheating fuel that is less than 49 six percent biodiesel per gallon of bioheating fuel. 50 § 2. Paragraph 1 of subdivision (mm) of section 606 of the tax law, as 51 amended by chapter 315 of the laws of 2017, is amended to read as 52 follows: 53 (1) A taxpayer shall be allowed a credit against the tax imposed by 54 this article. Such credit, to be computed as hereinafter provided, shallS. 1509--B 36 1 be allowed for bioheating fuel, used for space heating or hot water 2 production for residential purposes within this state and purchased on 3 or after July first, two thousand six and before July first, two thou- 4 sand seven and on or after January first, two thousand eight and before 5 January first, two thousand [twenty] twenty-three. Such credit shall be 6 $0.01 per percent of biodiesel per gallon of bioheating fuel, not to 7 exceed twenty cents per gallon, purchased by such taxpayer. Provided, 8 however, that on or after January first, two thousand seventeen, this 9 credit shall not apply to bioheating fuel that is less than six percent 10 biodiesel per gallon of bioheating fuel. 11 § 3. This act shall take effect immediately. 12 PART S 13 Section 1. Section 23 of part U of chapter 61 of the laws of 2011, 14 amending the real property tax law and other laws relating to establish- 15 ing standards for electronic tax administration, as amended by section 5 16 of part G of chapter 60 of the laws of 2016, is amended to read as 17 follows: 18 § 23. This act shall take effect immediately; provided, however, that: 19 (a) the amendments to section 29 of the tax law made by section thir- 20 teen of this act shall apply to tax documents filed or required to be 21 filed on or after the sixtieth day after which this act shall have 22 become a law and shall expire and be deemed repealed December 31, [2019] 23 2022, provided however that the amendments to paragraph 4 of subdivision 24 (a) of section 29 of the tax law and paragraph 2 of subdivision (e) of 25 section 29 of the tax law made by section thirteen of this act with 26 regard to individual taxpayers shall take effect September 15, 2011 but 27 only if the commissioner of taxation and finance has reported in the 28 report required by section seventeen-b of this act that the percentage 29 of individual taxpayers electronically filing their 2010 income tax 30 returns is less than eighty-five percent; provided that the commissioner 31 of taxation and finance shall notify the legislative bill drafting 32 commission of the date of the issuance of such report in order that the 33 commission may maintain an accurate and timely effective data base of 34 the official text of the laws of the state of New York in furtherance of 35 effectuating the provisions of section 44 of the legislative law and 36 section 70-b of the public officers law; 37 (b) sections fourteen, fifteen, sixteen and seventeen of this act 38 shall take effect September 15, 2011 but only if the commissioner of 39 taxation and finance has reported in the report required by section 40 seventeen-b of this act that the percentage of individual taxpayers 41 electronically filing their 2010 income tax returns is less than eight- 42 y-five percent; 43 (c) sections fourteen-a and fifteen-a of this act shall take effect 44 September 15, 2011 and expire and be deemed repealed December 31, 2012 45 but shall take effect only if the commissioner of taxation and finance 46 has reported in the report required by section seventeen-b of this act 47 that the percentage of individual taxpayers electronically filing their 48 2010 income tax returns is eighty-five percent or greater; 49 (d) sections fourteen-b, fifteen-b, sixteen-a and seventeen-a of this 50 act shall take effect January 1, [2020] 2023 but only if the commission- 51 er of taxation and finance has reported in the report required by 52 section seventeen-b of this act that the percentage of individual 53 taxpayers electronically filing their 2010 income tax returns is less 54 than eighty-five percent; andS. 1509--B 37 1 (e) sections twenty-one and twenty-one-a of this act shall expire and 2 be deemed repealed December 31, [2019] 2022. 3 § 2. This act shall take effect immediately. 4 PART T 5 Section 1. Subdivision 3 of section 77 of the cooperative corporations 6 law, as amended by chapter 429 of the laws of 1992, is amended to read 7 as follows: 8 3. Such annual fee shall be paid for each calendar year on the 9 fifteenth day of March next succeeding the close of such calendar year 10 but shall not be payable after January first, two thousand twenty; 11 provided, however, that cooperative corporations described in subdivi- 12 sions one or two of this section shall continue to not be subject to the 13 franchise, license, and corporation taxes referenced in such subdivi- 14 sions or, in the case of cooperative cooperations described in subdivi- 15 sion two of this section, the tax imposed under section one-hundred 16 eighty-six-a of the tax law. 17 § 2. Section 66 of the rural electric cooperative law, as amended by 18 chapter 888 of the laws of 1983, is amended to read as follows: 19 § 66. License fee in lieu of all franchise, excise, income, corpo- 20 ration and sales and compensating use taxes. Each cooperative and 21 foreign corporation doing business in this state pursuant to this chap- 22 ter shall pay annually, on or before the first day of July, to the state 23 tax commission, a fee of ten dollars, but shall be exempt from all other 24 franchise, excise, income, corporation and sales and compensating use 25 taxes whatsoever. The exemption from the sales and compensating use 26 taxes provided by this section shall not apply to the taxes imposed 27 pursuant to section eleven hundred seven or eleven hundred eight of the 28 tax law. Nothing contained in this section shall be deemed to exempt 29 such corporations from collecting and paying over sales and compensating 30 use taxes on retail sales of tangible personal property and services 31 made by such corporations to purchasers required to pay such taxes 32 imposed pursuant to article twenty-eight or authorized pursuant to the 33 authority of article twenty-nine of the tax law. Such annual fee shall 34 not be payable after January first, two thousand twenty. 35 § 3. This act shall take effect immediately. 36 PART U 37 Section 1. Paragraph (a) of subdivision 26 of section 210-B of the tax 38 law, as amended by section 2 of part RR of chapter 59 of the laws of 39 2018, is amended to read as follows: 40 (a) Application of credit. (i) For taxable years beginning on or after 41 January first, two thousand ten, and before January first, two thousand 42 twenty-five, a taxpayer shall be allowed a credit as hereinafter 43 provided, against the tax imposed by this article, in an amount equal to 44 one hundred percent of the amount of credit allowed the taxpayer for the 45 same taxable year with respect to a certified historic structure under 46 internal revenue code section 47(c)(3), determined without regard to 47 ratably allocating the credit over a five year period as required by 48 subsection (a) of such section 47, with respect to a certified historic 49 structure located within the state. Provided, however, the credit shall 50 not exceed five million dollars. Provided further that in the case of a 51 qualified rehabilitation project undertaken by an entity other than a 52 minority or women-owned business enterprise, certified pursuant toS. 1509--B 38 1 section three hundred fourteen of the executive law, within a state 2 park, state historic site, or other land owned by the state, that is 3 under the jurisdiction of the office of parks, recreation and historic 4 preservation that is located in whole or in part within a census tract 5 which is identified as being above one hundred percent of the state 6 median family income as calculated as of April first of each year using 7 the most recent five year estimate from the American community survey 8 published by the United States Census bureau, the credit with respect to 9 such project shall not exceed three million dollars. 10 (ii) (A) For taxable years beginning on or after January first, two 11 thousand twenty-five, a taxpayer shall be allowed a credit as hereinaft- 12 er provided, against the tax imposed by this article, in an amount equal 13 to thirty percent of the amount of credit allowed the taxpayer for the 14 same taxable year determined without regard to ratably allocating the 15 credit over a five year period as required by subsection (a) of section 16 47 of the internal revenue code, with respect to a certified historic 17 structure under subsection (c)(3) of section 47 of the internal revenue 18 code with respect to a certified historic structure located within the 19 state. Provided, however, the credit shall not exceed one hundred thou- 20 sand dollars. 21 (B) If the taxpayer is a partner in a partnership or a shareholder in 22 a New York S corporation, then the credit caps imposed in subparagraph 23 (A) of this paragraph shall be applied at the entity level, so that the 24 aggregate credit allowed to all the partners or shareholders of each 25 such entity in the taxable year does not exceed the credit cap that is 26 applicable in that taxable year. 27 § 2. Paragraph (e) of subdivision 26 of section 210-B of the tax law, 28 as amended by section 2 of part RR of chapter 59 of the laws of 2018, is 29 amended to read as follows: 30 (e) [To] Except in the case of a qualified rehabilitation project 31 undertaken within a state park, state historic site, or other land owned 32 by the state, that is under the jurisdiction of the office of parks, 33 recreation and historic preservation, to be eligible for the credit 34 allowable under this subdivision, the rehabilitation project shall be in 35 whole or in part located within a census tract which is identified as 36 being at or below one hundred percent of the state median family income 37 as calculated as of April first of each year using the most recent five 38 year estimate from the American community survey published by the United 39 States Census bureau. If there is a change in the most recent five year 40 estimate, a census tract that qualified for eligibility under this 41 program before information about the change was released will remain 42 eligible for a credit under this subdivision for an additional two 43 calendar years. 44 § 3. Subparagraph (A) of paragraph 1 of subsection (oo) of section 606 45 of the tax law, as amended by section 1 of part RR of chapter 59 of the 46 laws of 2018, is amended to read as follows: 47 (A) For taxable years beginning on or after January first, two thou- 48 sand ten and before January first, two thousand twenty-five, a taxpayer 49 shall be allowed a credit as hereinafter provided, against the tax 50 imposed by this article, in an amount equal to one hundred percent of 51 the amount of credit allowed the taxpayer with respect to a certified 52 historic structure under internal revenue code section 47(c)(3), deter- 53 mined without regard to ratably allocating the credit over a five year 54 period as required by subsection (a) of such section 47, with respect to 55 a certified historic structure located within the state. Provided, 56 however, the credit shall not exceed five million dollars. ProvidedS. 1509--B 39 1 further that in the case of a qualified rehabilitation project undertak- 2 en by an entity other than a minority or women-owned business enter- 3 prise, certified pursuant to section three hundred fourteen of the exec- 4 utive law, within a state park, state historic site, or other land owned 5 by the state, that is under the jurisdiction of the office of parks, 6 recreation and historic preservation that is located in whole or in part 7 within a census tract which is identified as being above one hundred 8 percent of the state median family income as calculated as of April 9 first of each year using the most recent five year estimate from the 10 American community survey published by the United States Census bureau, 11 the credit with respect to such project shall not exceed three million 12 dollars. For taxable years beginning on or after January first, two 13 thousand twenty-five, a taxpayer shall be allowed a credit as hereinaft- 14 er provided, against the tax imposed by this article, in an amount equal 15 to thirty percent of the amount of credit allowed the taxpayer with 16 respect to a certified historic structure under internal revenue code 17 section 47(c)(3), determined without regard to ratably allocating the 18 credit over a five year period as required by subsection (a) of such 19 section 47, with respect to a certified historic structure located with- 20 in the state; provided, however, the credit shall not exceed one hundred 21 thousand dollars. 22 § 4. Paragraph 5 of subsection (oo) of section 606 of the tax law, as 23 amended by section 1 of part RR of chapter 59 of the laws of 2018, is 24 amended to read as follows: 25 (5) [To] Except in the case of a qualified rehabilitation project 26 undertaken within a state park, state historic site, or other land owned 27 by the state, that is under the jurisdiction of the office of parks, 28 recreation and historic preservation, to be eligible for the credit 29 allowable under this subsection the rehabilitation project shall be in 30 whole or in part located within a census tract which is identified as 31 being at or below one hundred percent of the state median family income 32 as calculated as of April first of each year using the most recent five 33 year estimate from the American community survey published by the United 34 States Census bureau. If there is a change in the most recent five year 35 estimate, a census tract that qualified for eligibility under this 36 program before information about the change was released will remain 37 eligible for a credit under this subsection for an additional two calen- 38 dar years. 39 § 5. Subparagraph (A) of paragraph 1 of subdivision (y) of section 40 1511 of the tax law, as amended by section 3 of part RR of chapter 59 of 41 the laws of 2018, is amended to read as follows: 42 (A) For taxable years beginning on or after January first, two thou- 43 sand ten and before January first, two thousand twenty-five, a taxpayer 44 shall be allowed a credit as hereinafter provided, against the tax 45 imposed by this article, in an amount equal to one hundred percent of 46 the amount of credit allowed the taxpayer with respect to a certified 47 historic structure under internal revenue code section 47(c)(3), deter- 48 mined without regard to ratably allocating the credit over a five year 49 period as required by subsection (a) of such section 47, with respect to 50 a certified historic structure located within the state. Provided, 51 however, the credit shall not exceed five million dollars. Provided 52 further that in the case of a qualified rehabilitation project undertak- 53 en by an entity other than a minority or women-owned business enter- 54 prise, certified pursuant to section three hundred fourteen of the exec- 55 utive law, within a state park, state historic site, or other land owned 56 by the state, that is under the jurisdiction of the office of parks,S. 1509--B 40 1 recreation and historic preservation that is located in whole or in part 2 within a census tract which is identified as being above one hundred 3 percent of the state median family income as calculated as of April 4 first of each year using the most recent five year estimate from the 5 American community survey published by the United States Census bureau, 6 the credit with respect to such project shall not exceed three million 7 dollars. For taxable years beginning on or after January first, two 8 thousand twenty-five, a taxpayer shall be allowed a credit as hereinaft- 9 er provided, against the tax imposed by this article, in an amount equal 10 to thirty percent of the amount of credit allowed the taxpayer with 11 respect to a certified historic structure under internal revenue code 12 section 47(c)(3), determined without regard to ratably allocating the 13 credit over a five year period as required by subsection (a) of such 14 section 47 with respect to a certified historic structure located within 15 the state. Provided, however, the credit shall not exceed one hundred 16 thousand dollars. 17 § 6. Paragraph 5 of subdivision (y) of section 1511 of the tax law, as 18 amended by section 3 of part RR of chapter 59 of the laws of 2018, is 19 amended to read as follows: 20 (5) [To] Except in the case of a qualified rehabilitation project 21 undertaken within a state park, state historic site, or other land owned 22 by the state, that is under the jurisdiction of the office of parks, 23 recreation and historic preservation, to be eligible for the credit 24 allowable under this subdivision, the rehabilitation project shall be in 25 whole or in part located within a census tract which is identified as 26 being at or below one hundred percent of the state median family income 27 as calculated as of April first of each year using the most recent five 28 year estimate from the American community survey published by the United 29 States Census bureau. If there is a change in the most recent five year 30 estimate, a census tract that qualified for eligibility under this 31 program before information about the change was released will remain 32 eligible for a credit under this subdivision for an additional two 33 calendar years. 34 § 7. This act shall take effect immediately and apply to taxable years 35 beginning on and after January 1, 2020. 36 PART V 37 Section 1. Subdivision (jj) of section 1115 of the tax law, as added 38 by section 1 of part UU of chapter 59 of the laws of 2015, is amended to 39 read as follows: 40 (jj) Tangible personal property or services otherwise taxable under 41 this article sold to a related person shall not be subject to the taxes 42 imposed by section eleven hundred five of this article or the compensat- 43 ing use tax imposed under section eleven hundred ten of this article 44 where the purchaser can show that the following conditions have been met 45 to the extent they are applicable: (1)(i) the vendor and the purchaser 46 are referenced as either a "covered company" as described in section 47 243.2(f) or a "material entity" as described in section 243.2(l) of the 48 Code of Federal Regulations in a resolution plan that has been submitted 49 to an agency of the United States for the purpose of satisfying subpara- 50 graph 1 of paragraph (d) of section one hundred sixty-five of the Dodd- 51 Frank Wall Street Reform and Consumer Protection Act (the "Act") or any 52 successor law, or (ii) the vendor and the purchaser are separate legal 53 entities pursuant to a divestiture directed pursuant to subparagraph 5 54 of paragraph (d) of section one hundred sixty-five of such act or anyS. 1509--B 41 1 successor law; (2) the sale would not have occurred between such related 2 entities were it not for such resolution plan or divestiture; and (3) in 3 acquiring such property or services, the vendor did not claim an 4 exemption from the tax imposed by this state or another state based on 5 the vendor's intent to resell such services or property. A person is 6 related to another person for purposes of this subdivision if the person 7 bears a relationship to such person described in section two hundred 8 sixty-seven of the internal revenue code. The exemption provided by this 9 subdivision shall not apply to sales made, services rendered, or uses 10 occurring after June thirtieth, two thousand [nineteen] twenty-one, 11 except with respect to sales made, services rendered, or uses occurring 12 pursuant to binding contracts entered into on or before such date; but 13 in no case shall such exemption apply after June thirtieth, two thousand 14 twenty-four. 15 § 2. This act shall take effect immediately. 16 PART W 17 Section 1. The mental hygiene law is amended by adding a new section 18 32.38 to read as follows: 19 § 32.38 Power to administer the recovery tax credit program. 20 (a) Authorization. The commissioner is authorized to establish and 21 administer the recovery tax credit program to provide tax incentives to 22 certified employers for employing eligible individuals in recovery from 23 a substance use disorder in part-time and full-time positions in the 24 state. The commissioner is authorized to allocate up to two million 25 dollars of tax credits annually for the recovery tax credit program 26 beginning in the year two thousand twenty. 27 (b) Definitions. 1. The term "certified employer" means an employer 28 that has received a certificate of tax credit from the commissioner 29 after the commissioner has determined that the employer: 30 (i) provides a recovery supportive environment evidenced by a formal 31 working relationship with a local recovery community organization to 32 provide support for employers including any necessary assistance in the 33 hiring process of eligible individuals in recovery from a substance use 34 disorder and training for employers or supervisors; and 35 (ii) fulfills the eligibility criteria set forth in this section and 36 by the commissioner to participate in the recovery tax credit program 37 established in this section. 38 2. The term "eligible individual" means an individual with a substance 39 use disorder as that term is defined in section 1.03 of this chapter who 40 is in a state of wellness where there is an abatement of signs and symp- 41 toms that characterize active addiction and has demonstrated to the 42 qualified employer's satisfaction that he or she has completed a course 43 of treatment for such substance use disorder. 44 (c) Application and approval process. 1. To participate in the program 45 established by this section, an employer must, in a form prescribed by 46 the commissioner, apply annually to the office by January fifteenth to 47 claim credit based on eligible individuals employed during the preceding 48 calendar year. As part of such application, an employer must: 49 (i) Agree to allow the department of taxation and finance to share its 50 tax information with the office of alcoholism and substance abuse 51 services. However, any information shared because of this agreement 52 shall not be available for disclosure or inspection under the state 53 freedom of information law.S. 1509--B 42 1 (ii) Allow the office of alcoholism and substance abuse services and 2 its agents access to all books and records the department may require to 3 monitor compliance with program eligibility requirements. 4 (iii) Demonstrate that the employer has satisfied program eligibility 5 requirements and provided all the information necessary, including the 6 number of hours worked by any eligible individual, for the commissioner 7 to compute an actual amount of credit allowed. 8 2. (i) After reviewing the application and finding it sufficient, the 9 commissioner shall issue a certificate of tax credit by March thirty- 10 first. Such certificate shall include, but not be limited to, the name 11 and employer identification number of the certified employer, the amount 12 of credit that the certified employer may claim, and any other informa- 13 tion the commissioner of taxation and finance determines is necessary. 14 (ii) In determining the amount of credit that any employer may claim, 15 the commissioner shall review all claims submitted for credit by employ- 16 ers and, to the extent that the total amount claimed by employers 17 exceeds the amount allocated for the program in that calendar year, 18 shall issue credits on a pro-rata basis corresponding to each claimant's 19 share of the total claimed amount. 20 (d) Eligibility. A certified employer shall be entitled to a tax cred- 21 it equal to the product of one dollar and the number of hours worked by 22 each eligible individual during such individual's period of eligibility. 23 The credit shall not be allowed unless the eligible individual has 24 worked in state for a minimum of five hundred hours for the certified 25 employer, and the credit cannot exceed two thousand dollars per eligible 26 individual employed by the certified employer in the state. The period 27 of eligibility for each such employee starts on the day the employee is 28 hired and ends on December thirty-first of the immediately succeeding 29 calendar year or the last day of the employee's employment by the certi- 30 fied employer, whichever comes first. If an employee has worked in 31 excess of five hundred hours between the date of hiring and December 32 thirty-first of that year, an employer can elect to compute and claim a 33 credit for such employee in that year based on the hours worked by 34 December thirty-first. Alternatively, the employer may elect to include 35 such individual in the computation of the credit in the year immediately 36 succeeding the year in which the employee was hired. In such case, the 37 credit shall be computed on the basis of all hours worked by such eligi- 38 ble individual from the date of hire to the earlier of the last day of 39 employment or December thirty-first of the succeeding year. However, in 40 no event may an employee generate credit for hours worked in excess of 41 two thousand hours. An employer may claim credit only once with respect 42 to any eligible individual and may not aggregate hours of two or more 43 employees to reach the minimum number of hours. 44 (e) Duties of the commissioner. The commissioner shall annually 45 provide to the commissioner of the department of taxation and finance 46 information about the program including, but not limited to, the number 47 of certified employers then participating in the program, unique identi- 48 fying information for each certified employer, the number of eligible 49 individuals employed by each certified employer, unique identifying 50 information for each eligible individual employed by the certified 51 employers, the number of hours worked by such eligible individuals, the 52 total dollar amount of claims for credit, and the dollar amount of cred- 53 it granted to each certified employer. 54 (f) Certified employer's taxable year. If the certified employer's 55 taxable year is a calendar year, the employer shall be entitled to claim 56 the credit as shown on the certificate of tax credit on the calendarS. 1509--B 43 1 year return for which the certificate of tax credit was issued. If the 2 certified employer's taxable year is a fiscal year, the employer shall 3 be entitled to claim the credit as shown on the certificate of tax cred- 4 it on the return for the fiscal year that includes the last day of the 5 calendar year covered by the certificate of tax credit. 6 (g) Cross references. For application of the credit provided for in 7 this section, see the following provisions of the tax law: 8 1. Article 9-A: Section 210-B, subdivision 53. 9 2. Article 22: Section 606, subsection (jjj). 10 3. Article 33: Section 1511, subdivision (dd). 11 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 12 sion 53 to read as follows: 13 53. Recovery tax credit. (a) Allowance of credit. A taxpayer that is a 14 certified employer pursuant to section 32.38 of the mental hygiene law 15 that has received a certificate of tax credit from the commissioner of 16 the office of alcoholism and substance abuse services shall be allowed a 17 credit against the tax imposed by this article equal to the amount shown 18 on such certificate of tax credit. A taxpayer that is a partner in a 19 partnership or member of a limited liability company that has been 20 certified by the commissioner of the office of alcoholism and substance 21 abuse services as a qualified employer pursuant to section 32.38 of the 22 mental hygiene law shall be allowed its pro rata share of the credit 23 earned by the partnership or limited liability company. 24 (b) Application of credit. The credit allowed under this subdivision 25 for any taxable year may not reduce the tax due for that year to less 26 than the amount prescribed in paragraph (d) of subdivision one of 27 section two hundred ten of this article. However, if the amount of the 28 credit allowed under this subdivision for any taxable year reduces the 29 tax to that amount or if the taxpayer otherwise pays tax based on the 30 fixed dollar minimum amount, any amount of credit not deductible in that 31 taxable year will be treated as an overpayment of tax to be credited or 32 refunded in accordance with the provisions of section one thousand 33 eighty-six of this chapter. Provided, however, no interest will be paid 34 thereon. 35 (c) Tax return requirement. The taxpayer shall be required to attach 36 to its tax return, in the form prescribed by the commissioner, proof of 37 receipt of its certificate of tax credit issued by the commissioner of 38 the office of alcoholism and substance abuse services pursuant to 39 section 32.38 of the mental hygiene law. 40 § 3. Subparagraph (B) of paragraph 1 of subdivision (i) of section 606 41 of the tax law is amended by adding a new clause (xliv) to read as 42 follows: 43 (xliv) Recovery tax credit under Amount of credit under 44 subsection (jjj) subdivision fifty-three of 45 section two hundred ten-B 46 § 4. Section 606 of the tax law is amended by adding a new subsection 47 (jjj) to read as follows: 48 (jjj) Recovery tax credit. (1) Allowance of credit. A taxpayer that is 49 a qualified employer pursuant to section 32.38 of the mental hygiene law 50 that has received a certificate of tax credit from the commissioner of 51 the office of alcoholism and substance abuse services shall be allowed a 52 credit against the tax imposed by this article equal to the amount shown 53 on such certificate of tax credit. A taxpayer that is a partner in a 54 partnership, member of a limited liability company or shareholder in anS. 1509--B 44 1 S corporation that has been certified by the commissioner of the office 2 of alcoholism and substance abuse services as a qualified employer 3 pursuant to section 32.38 of the mental hygiene law shall be allowed its 4 pro rata share of the credit earned by the partnership, limited liabil- 5 ity company or S corporation. 6 (2) Overpayment. If the amount of the credit allowed under this 7 subsection for any taxable year exceeds the taxpayer's tax for the taxa- 8 ble year, the excess shall be treated as an overpayment of tax to be 9 credited or refunded in accordance with the provisions of section six 10 hundred eighty-six of this article, provided, however, no interest will 11 be paid thereon. 12 (3) Tax return requirement. The taxpayer shall be required to attach 13 to its tax return, in the form prescribed by the commissioner, proof of 14 receipt of its certificate of tax credit issued by the commissioner of 15 the office of alcoholism and substance abuse services pursuant to 16 section 32.38 of the mental hygiene law. 17 § 5. Section 1511 of the tax law is amended by adding a new subdivi- 18 sion (dd) to read as follows: 19 (dd) Recovery tax credit. (1) Allowance of credit. A taxpayer that is 20 a qualified employer pursuant to section 32.38 of the mental hygiene law 21 that has received a certificate of tax credit from the commissioner of 22 the office of alcoholism and substance abuse services shall be allowed a 23 credit against the tax imposed by this article equal to the amount shown 24 on such certificate of tax credit. A taxpayer that is a partner in a 25 partnership or member of a limited liability company that has been 26 certified by the commissioner of the office of alcoholism and substance 27 abuse services as a qualified employer pursuant to section 32.38 of the 28 mental hygiene law shall be allowed its pro rata share of the credit 29 earned by the partnership or limited liability company. 30 (2) Application of credit. The credit allowed under this subdivision 31 for any taxable year shall not reduce the tax due for such year to less 32 than the minimum tax fixed by paragraph four of subdivision (a) of 33 section fifteen hundred two of this article or by section fifteen 34 hundred two-a of this article, whichever is applicable. However, if the 35 amount of credit allowed under this subdivision for any taxable year 36 reduces the tax to such amount, then any amount of credit thus not 37 deductible in such taxable year shall be treated as an overpayment of 38 tax to be credited or refunded in accordance with the provisions of 39 section one thousand eighty-six of this chapter. Provided, however, the 40 provisions of subsection (c) of section one thousand eighty-eight of 41 this chapter notwithstanding, no interest shall be paid thereon. 42 (3) Tax return requirement. The taxpayer shall be required to attach 43 to its tax return in the form prescribed by the commissioner, proof of 44 receipt of its certificate of tax credit issued by the commissioner of 45 the office of alcoholism and substance abuse services pursuant to 46 section 32.38 of the mental hygiene law. 47 § 6. This act shall take effect immediately and shall apply to taxable 48 years beginning on and after January 1, 2020 and shall apply to those 49 eligible individuals hired after this act shall take effect. 50 PART X 51 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax 52 law is amended by adding a new subparagraph 20 to read as follows: 53 (20) Any amount excepted, for purposes of subsection (a) of section 54 one hundred eighteen of the internal revenue code, from the termS. 1509--B 45 1 "contribution to the capital of the taxpayer" by paragraph two of 2 subsection (b) of section one hundred eighteen of the internal revenue 3 code. 4 § 2. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 5 amended by adding a new subparagraph (T) to read as follows: 6 (T) Any amount excepted, for purposes of subsection (a) of section one 7 hundred eighteen of the internal revenue code, from the term "contrib- 8 ution to the capital of the taxpayer" by paragraph two of subsection (b) 9 of section one hundred eighteen of the internal revenue code. 10 § 3. Paragraph (a) of subdivision 8 of section 11-602 of the adminis- 11 trative code of the city of New York is amended by adding a new subpara- 12 graph 14 to read as follows: 13 (14) any amount excepted, for purposes of subsection (a) of section 14 one hundred eighteen of the internal revenue code, from the term 15 "contribution to the capital of the taxpayer" by paragraph two of 16 subsection (b) of section one hundred eighteen of the internal revenue 17 code. 18 § 4. This act shall take effect immediately and shall apply to taxable 19 years beginning on or after January 1, 2018. 20 PART Y 21 Intentionally Omitted 22 PART Z 23 Section 1. Paragraph 3 of subdivision (a) and paragraphs 2 and 5 of 24 subdivision (c) of section 43 of the tax law, as added by section 7 of 25 part K of chapter 59 of the laws of 2017, are amended to read as 26 follows: 27 (3) The total amount of credit allowable to a qualified life sciences 28 company, or, if the life sciences company is properly included or 29 required to be included in a combined report, to the combined group, 30 taken in the aggregate, shall not exceed five hundred thousand dollars 31 in any taxable year. If the [life sciences company] taxpayer is a part- 32 ner in a partnership that is a life sciences company or a shareholder of 33 a New York S corporation that is a life sciences company, then the total 34 amount of credit allowable shall be applied at the entity level, so that 35 the total amount of credit allowable to all the partners or shareholders 36 of each such entity, taken in the aggregate, does not exceed five 37 hundred thousand dollars in any taxable year. 38 (2) "New business" means any business that qualifies as a new business 39 under either paragraph (f) of subdivision one of section two hundred 40 ten-B or paragraph ten of subsection [one] (a) of section six hundred 41 six of this chapter. 42 (5) "Related person" means a related person as defined in subparagraph 43 [(c)] (C) of paragraph three of subsection (b) of section 465 of the 44 internal revenue code. For this purpose, a "related person" shall 45 include an entity that would have qualified as a "related person" if it 46 had not been dissolved, liquidated, merged with another entity or other- 47 wise ceased to exist or operate. 48 § 2. Subdivision 5 of section 209 of the tax law, as amended by 49 section 5 of part A of chapter 59 of the laws of 2014, is amended to 50 read as follows: 51 5. For any taxable year of a real estate investment trust as defined 52 in section eight hundred fifty-six of the internal revenue code in whichS. 1509--B 46 1 such trust is subject to federal income taxation under section eight 2 hundred fifty-seven of such code, such trust shall be subject to a tax 3 computed under either paragraph (a) or (d) of subdivision one of section 4 two hundred ten of this chapter, whichever is greater, and shall not be 5 subject to any tax under article thirty-three of this chapter except for 6 a captive REIT required to file a combined return under subdivision (f) 7 of section fifteen hundred fifteen of this chapter. In the case of such 8 a real estate investment trust, including a captive REIT as defined in 9 section two of this chapter, the term "entire net income" means "real 10 estate investment trust taxable income" as defined in paragraph two of 11 subdivision (b) of section eight hundred fifty-seven (as modified by 12 section eight hundred fifty-eight) of the internal revenue code [plus13the amount taxable under paragraph three of subdivision (b) of section14eight hundred fifty-seven of such code], subject to the modifications 15 required by subdivision nine of section two hundred eight of this arti- 16 cle. 17 § 3. Paragraph (a) of subdivision 8 of section 211 of the tax law, as 18 amended by chapter 760 of the laws of 1992, is amended to read as 19 follows: 20 (a) Except in accordance with proper judicial order or as otherwise 21 provided by law, it shall be unlawful for any tax commissioner, any 22 officer or employee of the department [of taxation and finance], or any 23 person who, pursuant to this section, is permitted to inspect any 24 report, or to whom any information contained in any report is furnished, 25 or any person engaged or retained by such department on an independent 26 contract basis, or any person who in any manner may acquire knowledge of 27 the contents of a report filed pursuant to this article, to divulge or 28 make known in any manner the amount of income or any particulars set 29 forth or disclosed in any report under this article. The officers 30 charged with the custody of such reports shall not be required to 31 produce any of them or evidence of anything contained in them in any 32 action or proceeding in any court, except on behalf of the state or the 33 commissioner in an action or proceeding under the provisions of this 34 chapter or in any other action or proceeding involving the collection of 35 a tax due under this chapter to which the state or the commissioner is a 36 party or a claimant, or on behalf of any party to any action or proceed- 37 ing under the provisions of this article when the reports or facts shown 38 thereby are directly involved in such action or proceeding, in any of 39 which events the court may require the production of, and may admit in 40 evidence, so much of said reports or of the facts shown thereby as are 41 pertinent to the action or proceeding, and no more. The commissioner 42 may, nevertheless, publish a copy or a summary of any determination or 43 decision rendered after the formal hearing provided for in section one 44 thousand eighty-nine of this chapter. Nothing herein shall be construed 45 to prohibit the delivery to a corporation or its duly authorized repre- 46 sentative of a copy of any report filed by it, nor to prohibit the 47 publication of statistics so classified as to prevent the identification 48 of particular reports and the items thereof; or the publication of 49 delinquent lists showing the names of taxpayers who have failed to pay 50 their taxes at the time and in the manner provided by section two 51 hundred thirteen of this chapter together with any relevant information 52 which in the opinion of the commissioner may assist in the collection of 53 such delinquent taxes; or the inspection by the attorney general or 54 other legal representatives of the state of the report of any corpo- 55 ration which shall bring action to set aside or review the tax based 56 thereon, or against which an action or proceeding under this chapter hasS. 1509--B 47 1 been recommended by the commissioner of taxation and finance or the 2 attorney general or has been instituted; or the inspection of the 3 reports of any corporation by the comptroller or duly designated officer 4 or employee of the state department of audit and control, for purposes 5 of the audit of a refund of any tax paid by such corporation under this 6 article[; and nothing in this chapter shall be construed to prohibit the7publication of the issuer's allocation percentage of any corporation, as8such term "issuer's allocation percentage" is defined in subparagraph9one of paragraph (b) of subdivision three of section two hundred ten of10this article]. 11 § 4. Subdivision (a) of section 213-b of the tax law, as amended by 12 section 10 of part Q of chapter 60 of the laws of 2016, is amended to 13 read as follows: 14 (a) First installments for certain taxpayers.--In privilege periods of 15 twelve months ending at any time during the calendar year nineteen 16 hundred seventy and thereafter, every taxpayer subject to the tax 17 imposed by section two hundred nine of this chapter must pay with the 18 report required to be filed for the preceding privilege period, or with 19 an application for extension of the time for filing the report, for 20 taxable years beginning before January first, two thousand sixteen, and 21 must pay on or before the fifteenth day of the third month of such priv- 22 ilege periods, for taxable years beginning on or after January first, 23 two thousand sixteen, an amount equal to (i) twenty-five percent of the 24 second preceding year's tax if the second preceding year's tax exceeded 25 one thousand dollars but was equal to or less than one hundred thousand 26 dollars, or (ii) forty percent of the second preceding year's tax if the 27 second preceding year's tax exceeded one hundred thousand dollars. If 28 the second preceding year's tax under section two hundred nine of this 29 chapter exceeded one thousand dollars and the taxpayer is subject to the 30 tax surcharge imposed by section two hundred nine-B of this chapter, the 31 taxpayer must also pay with the tax surcharge report required to be 32 filed for the second preceding privilege period, or with an application 33 for extension of the time for filing the report, for taxable years 34 beginning before January first, two thousand sixteen, and must pay on or 35 before the fifteenth day of the third month of such privilege periods, 36 for taxable years beginning on or after January first, two thousand 37 sixteen, an amount equal to (i) twenty-five percent of the tax surcharge 38 imposed for the second preceding year if the second preceding year's tax 39 was equal to or less than one hundred thousand dollars, or (ii) forty 40 percent of the tax surcharge imposed for the second preceding year if 41 the second preceding year's tax exceeded one hundred thousand dollars. 42 Provided, however, that every taxpayer that is [an] a New York S corpo- 43 ration must pay with the report required to be filed for the preceding 44 privilege period, or with an application for extension of the time for 45 filing the report, an amount equal to (i) twenty-five percent of the 46 preceding year's tax if the preceding year's tax exceeded one thousand 47 dollars but was equal to or less than one hundred thousand dollars, or 48 (ii) forty percent of the preceding year's tax if the preceding year's 49 tax exceeded one hundred thousand dollars. [If the preceding year's tax50under section two hundred nine of this article exceeded one thousand51dollars and such taxpayer that is an S corporation is subject to the tax52surcharge imposed by section two hundred nine-B of this article, the53taxpayer must also pay with the tax surcharge report required to be54filed for the preceding privilege period, or with an application for55extension of the time for filing the report, an amount equal to (i)56twenty-five percent of the tax surcharge imposed for the preceding yearS. 1509--B 48 1if the preceding year's tax was equal equal to or less than one hundred2thousand dollars, or (ii) forty percent of the tax surcharge imposed for3the preceding year if the preceding year's tax exceeded one hundred4thousand dollars.] 5 § 5. Subdivision (e) of section 213-b of the tax law, as amended by 6 chapter 166 of the laws of 1991, the subdivision heading as amended by 7 section 10-b of part Q of chapter 60 of the laws of 2016, is amended to 8 read as follows: 9 (e) Interest on certain installments based on the second preceding 10 year's tax.--Notwithstanding the provisions of section one thousand 11 eighty-eight of this chapter or of section sixteen of the state finance 12 law, if an amount paid pursuant to subdivision (a) exceeds the tax or 13 tax surcharge, respectively, shown on the report required to be filed by 14 the taxpayer for the privilege period during which the amount was paid, 15 interest shall be allowed and paid on the amount by which the amount so 16 paid pursuant to such subdivision exceeds such tax or tax surcharge. In 17 the case of amounts so paid pursuant to subdivision (a), such interest 18 shall be allowed and paid at the overpayment rate set by the commission- 19 er of taxation and finance pursuant to section one thousand ninety-six 20 of this chapter, or if no rate is set, at the rate of six per centum per 21 annum from the date of payment of the amount so paid pursuant to such 22 subdivision to the fifteenth day of the [third] fourth month following 23 the close of the taxable year, provided, however, that no interest shall 24 be allowed or paid under this subdivision if the amount thereof is less 25 than one dollar or if such interest becomes payable solely because of a 26 carryback of a net operating loss in a subsequent privilege period. 27 § 6. Subdivision (a) of section 1503 of the tax law, as amended by 28 chapter 817 of the laws of 1987, is amended to read as follows: 29 (a) The entire net income of a taxpayer shall be its total net income 30 from all sources which shall be presumably the same as the life insur- 31 ance company taxable income (which shall include, in the case of a stock 32 life insurance company [which] that has a balance, as determined as of 33 the close of such company's last taxable year beginning before January 34 first, two thousand eighteen, in an existing policyholders surplus 35 account, as such term is defined in section 815 of the internal revenue 36 code as such section was in effect for taxable years beginning before 37 January first, two thousand eighteen, the amount of [direct and indirect38distributions during the taxable year to shareholders from such account] 39 one-eighth of such balance), taxable income of a partnership or taxable 40 income, but not alternative minimum taxable income, as the case may be, 41 which the taxpayer is required to report to the United States treasury 42 department, for the taxable year or, in the case of a corporation exempt 43 from federal income tax (other than the tax on unrelated business taxa- 44 ble income imposed under section 511 of the internal revenue code) but 45 not exempt from tax under section fifteen hundred one, the taxable 46 income which such taxpayer would have been required to report but for 47 such exemption, except as hereinafter provided. 48 § 7. Paragraphs (a) and (b) of subdivision 4 of section 11-676 of the 49 administrative code of the city of New York are amended to read as 50 follows: 51 (a) The tax shown on the return of the taxpayer for the preceding 52 taxable year or the second preceding taxable year, as applicable with 53 respect to the taxpayer's declaration of estimated tax, if a return 54 showing a liability for tax was filed by the taxpayer for [the] such 55 preceding or second preceding taxable year and such preceding or second 56 preceding year was a taxable year of twelve months, orS. 1509--B 49 1 (b) An amount equal to the tax computed at the rates applicable to the 2 taxable year, but otherwise on the basis of the facts shown on the 3 return of the taxpayer for, and the law applicable to, the preceding 4 taxable year or the second preceding taxable year, as applicable with 5 respect to the taxpayer's declaration of estimated tax, or 6 § 8. Section 2 of chapter 369 of the laws of 2018 amending the tax law 7 relating to unrelated business taxable income of a taxpayer, is amended 8 to read as follows: 9 § 2. This act shall take effect immediately and shall apply to [taxa-10ble years beginning] amounts paid or incurred on and after January 1, 11 2018. 12 § 9. Paragraph (b) of subdivision (8) of section 11-602 of the admin- 13 istrative code of the city of New York is amended by adding a new 14 subparagraph (20) to read as follows: 15 (20) the amount of any federal deduction that would have been allowed 16 pursuant to section 250(a)(1)(A) of the internal revenue code if the 17 taxpayer had not made an election under subchapter s of chapter one of 18 the internal revenue code. 19 § 10. Clause (i) of subparagraph (1) of paragraph (b) of subdivision 20 (3) of section 11-604 of the administrative code of the city of New York 21 is amended to read as follows: 22 (i) In the case of an issuer or obligor subject to tax under this 23 subchapter, subchapter three-A or subchapter four of this chapter, or 24 subject to tax as a utility corporation under chapter eleven of this 25 title, the issuer's allocation percentage shall be the percentage of the 26 appropriate measure (as defined hereinafter) which is required to be 27 allocated within the city on the report or reports, if any, required of 28 the issuer or obligor under this title for the preceding year. The 29 appropriate measure referred to in the preceding sentence shall be: in 30 the case of an issuer or obligor subject to this subchapter or subchap- 31 ter three-A, entire capital; in the case of an issuer or obligor subject 32 to subchapter four of this chapter, issued capital stock; in the case of 33 an issuer or obligor subject to chapter eleven of this title as a utili- 34 ty corporation, gross income. 35 § 11. This act shall take effect immediately, provided, however, that: 36 (i) section one of this act shall be deemed to have been in full force 37 and effect on and after the effective date of part K of chapter 59 of 38 the laws of 2017; 39 (ii) sections two and six of this act shall be deemed to have been in 40 full force and effect on and after the effective date of part KK of 41 chapter 59 of the laws of 2018; provided, however, that section six of 42 this act shall apply to taxable years beginning on or after January 1, 43 2018 through taxable years beginning on or before January 1, 2025; 44 (iii) section three of this act shall be deemed to have been in full 45 force and effect on and after the effective date of part A of chapter 59 46 of the laws of 2014; 47 (iv) sections four, five, and seven of this act shall be deemed to 48 have been in full force and effect on and after the effective date of 49 part Q of chapter 60 of the laws of 2016; 50 (v) section eight of this act shall be deemed to have been in full 51 force and effect on and after the effective date of chapter 369 of the 52 laws of 2018; 53 (vi) section nine of this act shall apply to taxable years beginning 54 on and after January 1, 2018. 55 PART AAS. 1509--B 50 1 Section 1. Section 487 of the real property tax law is amended by 2 adding a new subdivision 10 to read as follows: 3 10. Notwithstanding the foregoing provisions of this section, on or 4 after April first, two thousand nineteen, real property that comprises 5 or includes a solar or wind energy system, farm waste energy system, 6 microhydroelectric energy system, fuel cell electric generating system, 7 microcombined heat and power generating equipment system, electric ener- 8 gy storage system, or fuel-flexible linear generator as such terms are 9 defined in paragraphs (b), (f), (h), (j), (l), (n), and (o) of subdivi- 10 sion one of this section (hereinafter, individually or collectively, 11 "energy system"), shall be exempt from any taxation, special ad valorem 12 levies, and special assessments to the extent provided in section four 13 hundred ninety of this article, and the owner of such property shall not 14 be subject to any requirement to enter into a contract for payments in 15 lieu of taxes in accordance with subdivision nine of this section, if: 16 (a) the energy system is installed on real property that is owned or 17 controlled by the state of New York, a department or agency thereof, or 18 a state authority as that term is defined by subdivision one of section 19 two of the public authorities law; and (b) the state of New York, a 20 department or agency thereof, or a state authority as that term is 21 defined by subdivision one of section two of the public authorities law 22 has agreed to purchase the energy produced by such energy system or the 23 environmental credits or attributes created by virtue of the energy 24 system's operation, in accordance with a written agreement with the 25 owner or operator of such energy system. Such exemption shall be granted 26 only upon application by the owner of the real property on a form 27 prescribed by the commissioner, which application shall be filed with 28 the assessor of the appropriate county, city, town or village on or 29 before the taxable status date of such county, city, town or village. 30 § 2. Section 490 of the real property tax law, as amended by chapter 31 87 of the laws of 2001, is amended to read as follows: 32 § 490. Exemption from special ad valorem levies and special assess- 33 ments. Real property exempt from taxation pursuant to subdivision two 34 of section four hundred, subdivision one of section four hundred four, 35 subdivision one of section four hundred six, sections four hundred 36 eight, four hundred ten, four hundred ten-a, four hundred ten-b, four 37 hundred eighteen, four hundred twenty-a, four hundred twenty-b, four 38 hundred twenty-two, four hundred twenty-six, four hundred twenty-seven, 39 four hundred twenty-eight, four hundred thirty, four hundred thirty-two, 40 four hundred thirty-four, four hundred thirty-six, four hundred thirty- 41 eight, four hundred fifty, four hundred fifty-two, four hundred fifty- 42 four, four hundred fifty-six, four hundred sixty-four, four hundred 43 seventy-two, four hundred seventy-four, [and] four hundred eighty-five 44 and subdivision ten of section four hundred eighty-seven of this chapter 45 shall also be exempt from special ad valorem levies and special assess- 46 ments against real property located outside cities and villages for a 47 special improvement or service or a special district improvement or 48 service and special ad valorem levies and special assessments imposed by 49 a county improvement district or district corporation except (1) those 50 levied to pay for the costs, including interest and incidental and 51 preliminary costs, of the acquisition, installation, construction, 52 reconstruction and enlargement of or additions to the following improve- 53 ments, including original equipment, furnishings, machinery or appara- 54 tus, and the replacements thereof: water supply and distribution 55 systems; sewer systems (either sanitary or surface drainage or both, 56 including purification, treatment or disposal plants or buildings);S. 1509--B 51 1 waterways and drainage improvements; street, highway, road and parkway 2 improvements (including sidewalks, curbs, gutters, drainage, landscap- 3 ing, grading or improving the right of way) and (2) special assessments 4 payable in installments on an indebtedness including interest contracted 5 prior to July first, nineteen hundred fifty-three, pursuant to section 6 two hundred forty-two of the town law or pursuant to any other compara- 7 ble provision of law. 8 § 3. This act shall take effect immediately. 9 PART BB 10 Section 1. Subdivision 1 of section 107 of the racing, pari-mutuel 11 wagering and breeding law, as added by section 1 of part A of chapter 60 12 of the laws of 2012, is amended to read as follows: 13 1. No person shall be appointed to or employed by the commission if, 14 during the period commencing three years prior to appointment or employ- 15 ment, [said] such person held any direct or indirect interest in, or 16 employment by, any corporation, association or person engaged in gaming 17 activity within the state. Prior to appointment or employment, each 18 member, officer or employee of the commission shall swear or affirm that 19 he or she possesses no interest in any corporation or association hold- 20 ing a franchise, license, registration, certificate or permit issued by 21 the commission. Thereafter, no member or officer of the commission shall 22 hold any direct interest in or be employed by any applicant for or by 23 any corporation, association or person holding a license, registration, 24 franchise, certificate or permit issued by the commission for a period 25 of four years commencing on the date his or her membership with the 26 commission terminates. Further, no employee of the commission may 27 acquire any direct or indirect interest in, or accept employment with, 28 any applicant for or any person holding a license, registration, fran- 29 chise, certificate or permit issued by the commission for a period of 30 two years commencing at the termination of employment with the commis- 31 sion. The commission may, by resolution adopted, solely by unanimous 32 vote, at a properly noticed public meeting, waive for good cause any of 33 its pre-employment restrictions for a prospective employee. Such resol- 34 ution shall be made public and describe the reasoning behind such deter- 35 mination in detail. 36 § 2. This act shall take effect immediately. 37 PART CC 38 Section 1. Subdivision 2 of section 254 of the racing, pari-mutuel 39 wagering and breeding law is amended by adding a new paragraph h to read 40 as follows: 41 h. An amount as shall be determined by the fund but not to exceed one 42 percent, to support and promote the ongoing care of retired horses, 43 provided, however, that the fund shall not be required to make any allo- 44 cation for such purposes. 45 § 2. Subdivision 1 of section 332 of the racing, pari-mutuel wagering 46 and breeding law is amended by adding a new paragraph j to read as 47 follows: 48 j. An amount as shall be determined by the fund but not to exceed one 49 percent, to support and promote the ongoing care of retired horses, 50 provided, however, that the fund shall not be required to make any allo- 51 cation for such purposes. 52 § 3. This act shall take effect immediately.S. 1509--B 52 1 PART DD 2 Section 1. This Part enacts into law legislation relating to the 3 office of gaming inspector general, the thoroughbred breeding and devel- 4 opment fund, the Harry M. Zweig memorial fund and prize payment amounts 5 and revenue distributions of lottery game sales. Each component is whol- 6 ly contained within a Subpart identified as Subparts A through D. The 7 effective date for each particular provision contained within such 8 Subpart is set forth in the last section of such Subpart. Any provision 9 in any section contained within a Subpart, including the effective date 10 of the Subpart, which makes a reference to a section "of this act", when 11 used in connection with that particular component, shall be deemed to 12 mean and refer to the corresponding section of the Subpart in which it 13 is found. Section three of this Part sets forth the general effective 14 date of this Part. 15 SUBPART A 16 Section 1. Sections 1368, 1369, 1370, and 1371 of the racing, pari-mu- 17 tuel wagering and breeding law are renumbered sections 130, 131, 132, 18 and 133. 19 § 2. Title 9 of article 13 of the racing, pari-mutuel wagering and 20 breeding law is REPEALED. 21 § 3. Section 130 of the racing, pari-mutuel wagering and breeding law, 22 as added by chapter 174 of the laws of 2013 and as renumbered by section 23 one of this act, is amended to read as follows: 24 § 130. Establishment of the office of gaming inspector general. There 25 is hereby created within the commission the office of gaming inspector 26 general. The head of the office shall be the gaming inspector general 27 who shall be appointed by the governor by and with the advice and 28 consent of the senate. The gaming inspector general shall serve at the 29 pleasure of the governor. The gaming inspector general shall report 30 directly to the governor. The person appointed as gaming inspector 31 general shall, upon his or her appointment, have not less than ten years 32 professional experience in law, investigation, or auditing. The gaming 33 inspector general shall be compensated within the limits of funds avail- 34 able therefor, provided, however, such salary shall be no less than the 35 salaries of certain state officers holding the positions indicated in 36 paragraph (a) of subdivision one of section one hundred sixty-nine of 37 the executive law. 38 § 4. The section heading, opening paragraph and subdivision 7 of 39 section 131 of the racing, pari-mutuel wagering and breeding law, as 40 added by chapter 174 of the laws of 2013 and such section as renumbered 41 by section one of this act, are amended to read as follows: 42 [State gaming] Gaming inspector general; functions and duties. The 43 [state] gaming inspector general shall have the following duties and 44 responsibilities: 45 7. establish programs for training commission officers and employees 46 [regarding] in regard to the prevention and elimination of corruption, 47 fraud, criminal activity, conflicts of interest or abuse in the commis- 48 sion. 49 § 5. The opening paragraph of section 132 of the racing, pari-mutuel 50 wagering and breeding law, as added by chapter 174 of the laws of 2013 51 and such section as renumbered by section one of this act, is amended to 52 read as follows: 53 The [state] gaming inspector general shall have the power to:S. 1509--B 53 1 § 6. Section 133 of the racing, pari-mutuel wagering and breeding law, 2 as added by chapter 174 of the laws of 2013 and as renumbered by section 3 one of this act, is amended to read as follows: 4 § 133. Responsibilities of the commission and its officers and employ- 5 ees. 1. Every commission officer or employee shall report promptly to 6 the [state] gaming inspector general any information concerning 7 corruption, fraud, criminal activity, conflicts of interest or abuse by 8 another state officer or employee relating to his or her office or 9 employment, or by a person having business dealings with the commission 10 relating to those dealings. The knowing failure of any officer or 11 employee to so report shall be cause for removal from office or employ- 12 ment or other appropriate penalty under this article. Any officer or 13 employee who acts pursuant to this subdivision by reporting to the 14 [state] gaming inspector general or other appropriate law enforcement 15 official improper governmental action as defined in section seventy- 16 five-b of the civil service law shall not be subject to dismissal, 17 discipline or other adverse personnel action. 18 2. The commission chair shall advise the governor within ninety days 19 of the issuance of a report by the [state] gaming inspector general as 20 to the remedial action that the commission has taken in response to any 21 recommendation for such action contained in such report. 22 § 7. This act shall take effect immediately. 23 SUBPART B 24 Intentionally omitted. 25 SUBPART C 26 Section 1. Section 703 of the racing, pari-mutuel wagering and breed- 27 ing law is amended by adding a new subdivision 3 to read as follows: 28 3. Notwithstanding the provisions of section eleven of the state 29 finance law and any other inconsistent provision of law, the fund may 30 acquire property by the acceptance of conditional gifts, grants, devises 31 or bequests given in furtherance of the mission of the fund. 32 § 2. This act shall take effect immediately. 33 SUBPART D 34 Intentionally Omitted 35 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 36 sion, section or subpart of this act shall be adjudged by any court of 37 competent jurisdiction to be invalid, such judgment shall not affect, 38 impair, or invalidate the remainder thereof, but shall be confined in 39 its operation to the clause, sentence, paragraph, subdivision, section 40 or subpart thereof directly involved in the controversy in which such 41 judgment shall have been rendered. It is hereby declared to be the 42 intent of the legislature that this act would have been enacted even if 43 such invalid provisions had not been included herein. 44 § 3. This act shall take effect immediately provided, however, that 45 the applicable effective date of Subparts A through D of this Part shall 46 be as specifically set forth in the last section of such Subpart. 47 PART EES. 1509--B 54 1 Intentionally Omitted 2 PART FF 3 Section 1. Subdivision 25 of section 1301 of the racing, pari-mutuel 4 wagering and breeding law, as added by chapter 174 of the laws of 2013, 5 is amended to read as follows: 6 25. "Gross gaming revenue". The total of all sums actually received by 7 a gaming facility licensee from gaming operations less the total of all 8 sums paid out as winnings to patrons; provided, however, that the total 9 of all sums paid out as winnings to patrons shall not include the cash 10 equivalent value of any merchandise or thing of value included in a 11 jackpot or payout[; provided further, that the issuance to or wagering12by patrons of a gaming facility of any promotional gaming credit shall13not be taxable for the purposes of determining gross revenue]. 14 § 2. Section 1351 of the racing, pari-mutuel wagering and breeding law 15 is amended by adding a new subdivision 2 to read as follows: 16 2. Permissible deductions. (a) A gaming facility may deduct from gross 17 gaming revenue the amount of approved promotional gaming credits issued 18 to and wagered by patrons of such gaming facility. The amount of 19 approved promotional credits shall be calculated as follows: 20 (1) for the period commencing on April first, two thousand eighteen 21 and ending on March thirty-first, two thousand twenty, an aggregate 22 maximum amount equal to nineteen percent of the base taxable gross 23 gaming revenue amount during the specified period; 24 (2) for the period commencing on April first, two thousand twenty and 25 ending on March thirty-first, two thousand twenty-three, a maximum 26 amount equal to nineteen percent of the base taxable gross gaming reven- 27 ue amount for each fiscal year during the specified period; and 28 (3) for the period commencing on April first, two thousand twenty- 29 three and thereafter, a maximum amount equal to fifteen percent of the 30 base taxable gross gaming revenue amount for each fiscal year during the 31 specified period. 32 (b) For purposes of paragraph (a) of this subdivision, "base taxable 33 gross gaming revenue amount" means that portion of gross gaming revenue 34 not attributable to deductible promotional credit. 35 (c) Any tax due on promotional credits deducted during the fiscal year 36 in excess of the allowable deduction shall be paid within thirty days 37 from the end of the fiscal year. 38 (d) Only promotional credits that are issued pursuant to a written 39 plan approved by the commission as designed to increase revenue at the 40 facility may be eligible for such deduction. The commission, in conjunc- 41 tion with the director of the budget, may suspend approval of any plan 42 whenever they jointly determine that the use of the promotional credits 43 under such plan is not effective in increasing the amount of revenue 44 earned. 45 § 3. This act shall take effect immediately. 46 PART GG 47 Section 1. Subdivision 12 of section 502 of the racing, pari-mutuel 48 wagering and breeding law is amended to read as follows: 49 12. a. The board of directors shall hold an annual meeting and meet 50 not less than quarterly. 51 b. Each board member shall receive, not less than seven days in 52 advance of a meeting, documentation necessary to ensure knowledgeableS. 1509--B 55 1 and engaged participation. Such documentation shall include material 2 relevant to each agenda item including background information of 3 discussion items, resolutions to be considered and associated documents, 4 a monthly financial statement which shall include an updated cash flow 5 statement and aged payable listing of industry payables, financial 6 statements, management reports, committee reports and compliance items. 7 c. Staff of the corporation shall annually submit to the board for 8 approval a financial plan accompanied by expenditure, revenue and cash 9 flow projections. The plan shall contain projection of revenues and 10 expenditures based on reasonable and appropriate assumptions and methods 11 of estimations, and shall provide that operations will be conducted 12 within the cash resources available. The financial plan shall also 13 include information regarding projected employment levels, collective 14 bargaining agreements and other actions relating to employee costs, 15 capital construction and such other matters as the board may direct. 16 d. Staff of the corporation shall prepare and submit to the board on a 17 quarterly basis a report of summarized budget data depicting overall 18 trends, by major category within funds, of actual revenues and budget 19 expenditures for the entire budget rather than individual line items, as 20 well as updated quarterly cash flow projections of receipts and 21 disbursements. Such reports shall compare revenue estimates and appro- 22 priations as set forth in such budget and in the quarterly revenue and 23 expenditure projections submitted therewith, with the actual revenues 24 and expenditures made to date. Such reports shall also compare actual 25 receipts and disbursements with the estimates contained in the cash flow 26 projections, together with variances and their explanation. All quarter- 27 ly reports shall be accompanied by recommendations from the president 28 setting forth any remedial action necessary to resolve any unfavorable 29 budget variance including the overestimation of revenues and the under- 30 estimation of appropriations. These reports shall be completed within 31 thirty days after the end of each quarter and shall be submitted to the 32 board by the corporation comptroller. 33 e. Revenue estimates and the financial plan shall be regularly reexam- 34 ined by the board and staff and shall provide a modified financial plan 35 in such detail and within such time periods as the board may require. In 36 the event of reductions in such revenue estimates, the board shall 37 consider and approve such adjustments in revenue estimates and 38 reductions in total expenditures as may be necessary to conform to such 39 revised revenue estimates or aggregate expenditure limitations. 40 § 2. Intentionally omitted. 41 § 3. Subdivision 2-a of section 1009 of the racing, pari-mutuel wager- 42 ing and breeding law, is amended by adding a new paragraph (c) to read 43 as follows: 44 (c) The board may authorize a special demonstration project to be 45 located in any facility licensed pursuant to article thirteen of this 46 chapter. Notwithstanding the provisions of paragraph (a) of subdivision 47 five of this section, an admission fee shall not be required for a 48 demonstration project authorized in this paragraph. Provided however, on 49 any day when a regional harness track conducts a live race meeting, a 50 demonstration facility within that region shall predominantly display 51 the live video of such regional harness track. 52 § 4. This act shall take effect immediately. 53 PART HHS. 1509--B 56 1 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 2 racing, pari-mutuel wagering and breeding law, as amended by section 1 3 of part GG of chapter 59 of the laws of 2018, is amended to read as 4 follows: 5 (a) Any racing association or corporation or regional off-track 6 betting corporation, authorized to conduct pari-mutuel wagering under 7 this chapter, desiring to display the simulcast of horse races on which 8 pari-mutuel betting shall be permitted in the manner and subject to the 9 conditions provided for in this article may apply to the commission for 10 a license so to do. Applications for licenses shall be in such form as 11 may be prescribed by the commission and shall contain such information 12 or other material or evidence as the commission may require. No license 13 shall be issued by the commission authorizing the simulcast transmission 14 of thoroughbred races from a track located in Suffolk county. The fee 15 for such licenses shall be five hundred dollars per simulcast facility 16 and for account wagering licensees that do not operate either a simul- 17 cast facility that is open to the public within the state of New York or 18 a licensed racetrack within the state, twenty thousand dollars per year 19 payable by the licensee to the commission for deposit into the general 20 fund. Except as provided in this section, the commission shall not 21 approve any application to conduct simulcasting into individual or group 22 residences, homes or other areas for the purposes of or in connection 23 with pari-mutuel wagering. The commission may approve simulcasting into 24 residences, homes or other areas to be conducted jointly by one or more 25 regional off-track betting corporations and one or more of the follow- 26 ing: a franchised corporation, thoroughbred racing corporation or a 27 harness racing corporation or association; provided (i) the simulcasting 28 consists only of those races on which pari-mutuel betting is authorized 29 by this chapter at one or more simulcast facilities for each of the 30 contracting off-track betting corporations which shall include wagers 31 made in accordance with section one thousand fifteen, one thousand 32 sixteen and one thousand seventeen of this article; provided further 33 that the contract provisions or other simulcast arrangements for such 34 simulcast facility shall be no less favorable than those in effect on 35 January first, two thousand five; (ii) that each off-track betting 36 corporation having within its geographic boundaries such residences, 37 homes or other areas technically capable of receiving the simulcast 38 signal shall be a contracting party; (iii) the distribution of revenues 39 shall be subject to contractual agreement of the parties except that 40 statutory payments to non-contracting parties, if any, may not be 41 reduced; provided, however, that nothing herein to the contrary shall 42 prevent a track from televising its races on an irregular basis primari- 43 ly for promotional or marketing purposes as found by the commission. For 44 purposes of this paragraph, the provisions of section one thousand thir- 45 teen of this article shall not apply. Any agreement authorizing an 46 in-home simulcasting experiment commencing prior to May fifteenth, nine- 47 teen hundred ninety-five, may, and all its terms, be extended until June 48 thirtieth, two thousand [nineteen] twenty-four; provided, however, that 49 any party to such agreement may elect to terminate such agreement upon 50 conveying written notice to all other parties of such agreement at least 51 forty-five days prior to the effective date of the termination, via 52 registered mail. Any party to an agreement receiving such notice of an 53 intent to terminate, may request the commission to mediate between the 54 parties new terms and conditions in a replacement agreement between the 55 parties as will permit continuation of an in-home experiment until June 56 thirtieth, two thousand [nineteen] twenty-four; and (iv) no in-homeS. 1509--B 57 1 simulcasting in the thoroughbred special betting district shall occur 2 without the approval of the regional thoroughbred track. 3 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 4 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 5 section 2 of part GG of chapter 59 of the laws of 2018, is amended to 6 read as follows: 7 (iii) Of the sums retained by a receiving track located in Westchester 8 county on races received from a franchised corporation, for the period 9 commencing January first, two thousand eight and continuing through June 10 thirtieth, two thousand [nineteen] twenty-four, the amount used exclu- 11 sively for purses to be awarded at races conducted by such receiving 12 track shall be computed as follows: of the sums so retained, two and 13 one-half percent of the total pools. Such amount shall be increased or 14 decreased in the amount of fifty percent of the difference in total 15 commissions determined by comparing the total commissions available 16 after July twenty-first, nineteen hundred ninety-five to the total 17 commissions that would have been available to such track prior to July 18 twenty-first, nineteen hundred ninety-five. 19 § 3. The opening paragraph of subdivision 1 of section 1014 of the 20 racing, pari-mutuel wagering and breeding law, as amended by section 3 21 of part GG of chapter 59 of the laws of 2018, is amended to read as 22 follows: 23 The provisions of this section shall govern the simulcasting of races 24 conducted at thoroughbred tracks located in another state or country on 25 any day during which a franchised corporation is conducting a race meet- 26 ing in Saratoga county at Saratoga thoroughbred racetrack until June 27 thirtieth, two thousand [nineteen] twenty-four and on any day regardless 28 of whether or not a franchised corporation is conducting a race meeting 29 in Saratoga county at Saratoga thoroughbred racetrack after June thirti- 30 eth, two thousand [nineteen] twenty-four. On any day on which a fran- 31 chised corporation has not scheduled a racing program but a thoroughbred 32 racing corporation located within the state is conducting racing, every 33 off-track betting corporation branch office and every simulcasting 34 facility licensed in accordance with section one thousand seven (that 35 [have] has entered into a written agreement with such facility's repre- 36 sentative horsemen's organization, as approved by the commission), one 37 thousand eight, or one thousand nine of this article shall be authorized 38 to accept wagers and display the live simulcast signal from thoroughbred 39 tracks located in another state or foreign country subject to the 40 following provisions: 41 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 42 and breeding law, as amended by section 4 of part GG of chapter 59 of 43 the laws of 2018, is amended to read as follows: 44 1. The provisions of this section shall govern the simulcasting of 45 races conducted at harness tracks located in another state or country 46 during the period July first, nineteen hundred ninety-four through June 47 thirtieth, two thousand [nineteen] twenty-four. This section shall 48 supersede all inconsistent provisions of this chapter. 49 § 5. The opening paragraph of subdivision 1 of section 1016 of the 50 racing, pari-mutuel wagering and breeding law, as amended by section 5 51 of part GG of chapter 59 of the laws of 2018, is amended to read as 52 follows: 53 The provisions of this section shall govern the simulcasting of races 54 conducted at thoroughbred tracks located in another state or country on 55 any day during which a franchised corporation is not conducting a race 56 meeting in Saratoga county at Saratoga thoroughbred racetrack until JuneS. 1509--B 58 1 thirtieth, two thousand [nineteen] twenty-four. Every off-track betting 2 corporation branch office and every simulcasting facility licensed in 3 accordance with section one thousand seven that have entered into a 4 written agreement with such facility's representative horsemen's organ- 5 ization as approved by the commission, one thousand eight or one thou- 6 sand nine of this article shall be authorized to accept wagers and 7 display the live full-card simulcast signal of thoroughbred tracks 8 (which may include quarter horse or mixed meetings provided that all 9 such wagering on such races shall be construed to be thoroughbred races) 10 located in another state or foreign country, subject to the following 11 provisions; provided, however, no such written agreement shall be 12 required of a franchised corporation licensed in accordance with section 13 one thousand seven of this article: 14 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 15 wagering and breeding law, as amended by section 6 of part GG of chapter 16 59 of the laws of 2018, is amended to read as follows: 17 Notwithstanding any other provision of this chapter, for the period 18 July twenty-fifth, two thousand one through September eighth, two thou- 19 sand [eighteen] twenty-three, when a franchised corporation is conduct- 20 ing a race meeting within the state at Saratoga Race Course, every off- 21 track betting corporation branch office and every simulcasting facility 22 licensed in accordance with section one thousand seven (that has entered 23 into a written agreement with such facility's representative horsemen's 24 organization as approved by the commission), one thousand eight or one 25 thousand nine of this article shall be authorized to accept wagers and 26 display the live simulcast signal from thoroughbred tracks located in 27 another state, provided that such facility shall accept wagers on races 28 run at all in-state thoroughbred tracks which are conducting racing 29 programs subject to the following provisions; provided, however, no such 30 written agreement shall be required of a franchised corporation licensed 31 in accordance with section one thousand seven of this article. 32 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 33 racing, pari-mutuel wagering and breeding law and other laws relating to 34 simulcasting, as amended by section 7 of part GG of chapter 59 of the 35 laws of 2018, is amended to read as follows: 36 § 32. This act shall take effect immediately and the pari-mutuel tax 37 reductions in section six of this act shall expire and be deemed 38 repealed on July 1, [2019] 2024; provided, however, that nothing 39 contained herein shall be deemed to affect the application, qualifica- 40 tion, expiration, or repeal of any provision of law amended by any 41 section of this act, and such provisions shall be applied or qualified 42 or shall expire or be deemed repealed in the same manner, to the same 43 extent and on the same date as the case may be as otherwise provided by 44 law; provided further, however, that sections twenty-three and twenty- 45 five of this act shall remain in full force and effect only until May 1, 46 1997 and at such time shall be deemed to be repealed. 47 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 48 racing, pari-mutuel wagering and breeding law and other laws relating to 49 simulcasting and the imposition of certain taxes, as amended by section 50 8 of part GG of chapter 59 of the laws of 2018, is amended to read as 51 follows: 52 § 54. This act shall take effect immediately; provided, however, 53 sections three through twelve of this act shall take effect on January 54 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 55 ing law, as added by section thirty-eight of this act, shall expire and 56 be deemed repealed on July 1, [2019] 2024; and section eighteen of thisS. 1509--B 59 1 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 2 two of this act shall take effect as of the same date as chapter 772 of 3 the laws of 1989 took effect. 4 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 5 pari-mutuel wagering and breeding law, as amended by section 9 of part 6 GG of chapter 59 of the laws of 2018, is amended to read as follows: 7 (a) The franchised corporation authorized under this chapter to 8 conduct pari-mutuel betting at a race meeting or races run thereat shall 9 distribute all sums deposited in any pari-mutuel pool to the holders of 10 winning tickets therein, provided such tickets be presented for payment 11 before April first of the year following the year of their purchase, 12 less an amount which shall be established and retained by such fran- 13 chised corporation of between twelve to seventeen per centum of the 14 total deposits in pools resulting from on-track regular bets, and four- 15 teen to twenty-one per centum of the total deposits in pools resulting 16 from on-track multiple bets and fifteen to twenty-five per centum of the 17 total deposits in pools resulting from on-track exotic bets and fifteen 18 to thirty-six per centum of the total deposits in pools resulting from 19 on-track super exotic bets, plus the breaks. The retention rate to be 20 established is subject to the prior approval of the gaming commission. 21 Such rate may not be changed more than once per calendar quarter to be 22 effective on the first day of the calendar quarter. "Exotic bets" and 23 "multiple bets" shall have the meanings set forth in section five 24 hundred nineteen of this chapter. "Super exotic bets" shall have the 25 meaning set forth in section three hundred one of this chapter. For 26 purposes of this section, a "pick six bet" shall mean a single bet or 27 wager on the outcomes of six races. The breaks are hereby defined as the 28 odd cents over any multiple of five for payoffs greater than one dollar 29 five cents but less than five dollars, over any multiple of ten for 30 payoffs greater than five dollars but less than twenty-five dollars, 31 over any multiple of twenty-five for payoffs greater than twenty-five 32 dollars but less than two hundred fifty dollars, or over any multiple of 33 fifty for payoffs over two hundred fifty dollars. Out of the amount so 34 retained there shall be paid by such franchised corporation to the 35 commissioner of taxation and finance, as a reasonable tax by the state 36 for the privilege of conducting pari-mutuel betting on the races run at 37 the race meetings held by such franchised corporation, the following 38 percentages of the total pool for regular and multiple bets five per 39 centum of regular bets and four per centum of multiple bets plus twenty 40 per centum of the breaks; for exotic wagers seven and one-half per 41 centum plus twenty per centum of the breaks, and for super exotic bets 42 seven and one-half per centum plus fifty per centum of the breaks. 43 For the period June first, nineteen hundred ninety-five through 44 September ninth, nineteen hundred ninety-nine, such tax on regular 45 wagers shall be three per centum and such tax on multiple wagers shall 46 be two and one-half per centum, plus twenty per centum of the breaks. 47 For the period September tenth, nineteen hundred ninety-nine through 48 March thirty-first, two thousand one, such tax on all wagers shall be 49 two and six-tenths per centum and for the period April first, two thou- 50 sand one through December thirty-first, two thousand [nineteen] twenty- 51 four, such tax on all wagers shall be one and six-tenths per centum, 52 plus, in each such period, twenty per centum of the breaks. Payment to 53 the New York state thoroughbred breeding and development fund by such 54 franchised corporation shall be one-half of one per centum of total 55 daily on-track pari-mutuel pools resulting from regular, multiple and 56 exotic bets and three per centum of super exotic bets provided, however,S. 1509--B 60 1 that for the period September tenth, nineteen hundred ninety-nine 2 through March thirty-first, two thousand one, such payment shall be 3 six-tenths of one per centum of regular, multiple and exotic pools and 4 for the period April first, two thousand one through December thirty- 5 first, two thousand [nineteen] twenty-four, such payment shall be 6 seven-tenths of one per centum of such pools. 7 § 10. This act shall take effect immediately. 8 PART II 9 Intentionally Omitted 10 PART JJ 11 Section 1. Section 2 of part EE of chapter 59 of the laws of 2018, 12 amending the racing, pari-mutuel wagering and breeding law, relating to 13 adjusting the franchise payment establishing an advisory committee to 14 review the structure, operations and funding of equine drug testing and 15 research, is amended to read as follows: 16 § 2. An advisory committee shall be established within the New York 17 gaming commission comprised of individuals with demonstrated interest in 18 the performance of thoroughbred and standardbred race horses to review 19 the present structure, operations and funding of equine drug testing and 20 research conducted pursuant to article nine of the racing, pari-mutuel 21 wagering and breeding law. Members of the committee, who shall be 22 appointed by the governor, shall include but not be limited to a desig- 23 nee at the recommendation of each licensed or franchised thoroughbred 24 and standardbred racetrack, a designee at the recommendation of each 25 operating regional off-track betting corporation, a designee at the 26 recommendation of each recognized horsemen's organization at licensed or 27 franchised thoroughbred and standardbred racetracks, a designee at the 28 recommendation of both Morrisville State College and the Cornell Univer- 29 sity School of Veterinary Medicine, and two designees each at the recom- 30 mendation of the speaker of the assembly and temporary president of the 31 senate. The governor shall designate the chair from among the members 32 who shall serve as such at the pleasure of the governor. State agencies 33 shall cooperate with and assist the committee in the fulfillment of its 34 duties and may render informational, non-personnel services to the 35 committee within their respective functions as the committee may reason- 36 ably request. Recommendations shall be delivered to the temporary presi- 37 dent of the senate, speaker of the assembly and governor by December 1, 38 [2018] 2019 regarding the future of such research, testing and funding. 39 Members of the board shall not be considered policymakers. 40 § 2. Subdivision 1 of section 902 of the racing, pari-mutuel wagering 41 and breeding law, as amended by chapter 15 of the laws of 2010, is 42 amended to read as follows: 43 1. In order to assure the public's confidence and continue the high 44 degree of integrity in racing at the pari-mutuel betting tracks, equine 45 drug testing at race meetings shall be conducted by a [state college46within this state with an approved equine science program] suitable 47 laboratory physically located within the state, as the gaming commission 48 may determine in its discretion. The [state racing and wagering board] 49 gaming commission shall promulgate any rules and regulations necessary 50 to implement the provisions of this section, including administrative 51 penalties of loss of purse money, fines, or denial, suspension[,] or 52 revocation of a license for racing drugged horses.S. 1509--B 61 1 § 3. This act shall take effect immediately. 2 PART KK 3 Intentionally Omitted 4 PART LL 5 Intentionally Omitted 6 PART MM 7 Section 1. Section 1405-B of the tax law is amended by adding a new 8 subdivision (c) to read as follows: 9 (c) The information contained within information returns filed under 10 subdivision (b) of this section may be provided by the commissioner to 11 local assessors for use in real property tax administration, and such 12 information shall not be subject to the secrecy provisions set forth in 13 section fourteen hundred eighteen of this chapter, provided, however, 14 that the commissioner shall not disclose social security numbers or 15 employer identification numbers. 16 § 2. This act shall take effect January 1, 2020. 17 PART NN 18 Section 1. Paragraph 3 of subsection (e-1) of section 606 of the tax 19 law, as added by section 2 of part K of chapter 59 of the laws of 2014, 20 is amended as follows: 21 (3) Determination of credit. For taxable years after two thousand 22 thirteen [and prior to two thousand sixteen], the amount of the credit 23 allowable under this subsection shall be determined as follows: 24 If household gross income Excess real property The credit amount is 25 for the taxable year is: taxes are the excess the following 26 of real property tax percentage of excess 27 equivalent or the property taxes: 28 excess of qualifying 29 real property taxes 30 over the following 31 percentage of 32 household gross 33 income: 34 Less than $100,000 4 4.5 35 $100,000 to less than 5 3.0 36 $150,000 37 $150,000 to less than 6 1.5 38 $200,000 39 Notwithstanding the foregoing provisions, the maximum credit deter- 40 mined under this subparagraph may not exceed five hundred dollars. 41 § 2. This act shall take effect immediately and shall apply to taxable 42 years beginning on and after January 1, 2016; provided, however, that 43 the amendments to subsection (e-1) of section 606 of the tax law made by 44 section one of this act shall not affect the repeal of such subsection 45 and shall be deemed to be repealed therewith. 46 PART OOS. 1509--B 62 1 Section 1. Subdivision v of section 233 of the real property law, as 2 amended by chapter 566 of the laws of 1996, is amended to read as 3 follows: 4 v. 1. On and after April first, nineteen hundred eighty-nine, the 5 commissioner of housing and community renewal shall have the power and 6 duty to enforce and ensure compliance with the provisions of this 7 section. However, the commissioner shall not have the power or duty to 8 enforce manufactured home park rules and regulations established under 9 subdivision f of this section. 10 2. On or before January first, nineteen hundred eighty-nine, each 11 manufactured home park owner or operator shall file a registration 12 statement with the commissioner and shall thereafter file an annual 13 registration statement on or before January first of each succeeding 14 year. The commissioner, by regulation, shall provide that such registra- 15 tion statement shall include only the names of all persons owning an 16 interest in the park, the names of all tenants of the park, all services 17 provided by the park owner to the tenants and a copy of all current 18 manufactured home park rules and regulations. The reporting of such 19 information to the commissioner of taxation and finance pursuant to 20 subparagraph (B) of paragraph six of subsection (eee) of section six 21 hundred six of the tax law shall be deemed to satisfy the requirements 22 of this paragraph. 23 3. Whenever there shall be a violation of this section, an application 24 may be made by the commissioner of housing and community renewal in the 25 name of the people of the state of New York to a court or justice having 26 jurisdiction by a special proceeding to issue an injunction, and upon 27 notice to the defendant of not less than five days, to enjoin and 28 restrain the continuance of such violation; and if it shall appear to 29 the satisfaction of the court or justice that the defendant has, in 30 fact, violated this section, an injunction may be issued by such court 31 or justice, enjoining and restraining any further violation and with 32 respect to this subdivision, directing the filing of a registration 33 statement. In any such proceeding, the court may make allowances to the 34 commissioner of housing and community renewal of a sum not exceeding two 35 thousand dollars against each defendant, and direct restitution. When- 36 ever the court shall determine that a violation of this section has 37 occurred, the court may impose a civil penalty of not more than one 38 thousand five hundred dollars for each violation. Such penalty shall be 39 deposited in the manufactured home cooperative fund, created pursuant to 40 section fifty-nine-h of the private housing finance law. In connection 41 with any such proposed application, the commissioner of housing and 42 community renewal is authorized to take proof and make a determination 43 of the relevant facts and to issue subpoenas in accordance with the 44 civil practice law and rules. The provisions of this subdivision shall 45 not impair the rights granted under subdivision u of this section. 46 § 2. Subparagraph (B) of paragraph 6 of subsection (eee) of section 47 606 of the tax law, as amended by section 8 of part A of chapter 73 of 48 the laws of 2016, is amended to read as follows: 49 (B) (i) In the case of property consisting of a mobile home that is 50 described in paragraph (1) of subdivision two of section four hundred 51 twenty-five of the real property tax law, the amount of the credit 52 allowable with respect to such mobile home shall be equal to the basic 53 STAR tax savings for the school district portion, or the enhanced STAR 54 tax savings for the school district portion, whichever is applicable, 55 that would be applied to a separately assessed parcel in the school 56 district portion with a taxable assessed value equal to twenty thousandS. 1509--B 63 1 dollars multiplied by the latest state equalization rate or special 2 equalization rate for the assessing unit in which the mobile home is 3 located. Provided, however, that if the commissioner is in possession of 4 information, including but not limited to assessment records, that 5 demonstrates to the commissioner's satisfaction that the taxpayer's 6 mobile home is worth more than twenty thousand dollars, or if the 7 taxpayer provides the commissioner with such information, the taxpayer's 8 credit shall be increased accordingly, but in no case shall the credit 9 exceed the basic STAR tax savings or enhanced STAR tax savings, whichev- 10 er is applicable, for the school district portion. 11 (ii) The commissioner may implement an electronic system for the 12 reporting of information by owners and operators of manufactured home 13 parks, as defined by section two hundred thirty-three of the real prop- 14 erty law. Upon the implementation of such a system, each such owner and 15 operator shall file quarterly electronic statements with the commission- 16 er no later than twenty-one days after the end of each calendar quarter. 17 Such statement shall require reporting of names of all persons owning an 18 interest in the park, the services provided by the park owner to the 19 tenants, the names and addresses of all tenants of the park, whether the 20 tenant leases or owns the home, and such additional information as the 21 commissioner may deem necessary for the proper administration of the 22 STAR exemption established pursuant to section four hundred twenty-five 23 of the real property tax law and the STAR credit and any other property 24 tax-based credit established pursuant to this section. In the case of a 25 registration statement for the first calendar quarter of a year, such 26 statement shall also include a copy of all current manufactured home 27 park rules and regulations. The commissioner shall provide the commis- 28 sioner of housing and community renewal with the information contained 29 in each quarterly report no later than thirty days after the receipt 30 thereof. 31 § 3. This act shall take effect immediately. 32 PART PP 33 Section 1. Subparagraph (iv) of paragraph (b) of subdivision 4 of 34 section 425 of the real property tax law, as amended by section 2 of 35 part B of chapter 59 of the laws of 2018, is amended to read as follows: 36 (iv) (A) Effective with applications for the enhanced exemption on 37 final assessment rolls to be completed in two thousand nineteen, the 38 application form shall indicate that all owners of the property and any 39 owners' spouses residing on the premises must have their income eligi- 40 bility verified annually by the department and must furnish their 41 taxpayer identification numbers in order to facilitate matching with 42 records of the department. The income eligibility of such persons shall 43 be verified annually by the department, and the assessor shall not 44 request income documentation from them. All applicants for the enhanced 45 exemption and all assessing units shall be required to participate in 46 this program, which shall be known as the STAR income verification 47 program. 48 (B) Effective with final assessment rolls to be completed in two thou- 49 sand twenty, the commissioner shall also annually verify the eligibility 50 of such persons for the enhanced exemption on the basis of age and resi- 51 dency as well as income. 52 (C) Where the commissioner finds that the enhanced exemption should be 53 replaced with a basic exemption because [the income limitation applica-54ble to the enhanced exemption has been exceeded] the property is onlyS. 1509--B 64 1 eligible for a basic exemption, he or she shall provide the property 2 owners with notice and an opportunity to submit to the commissioner 3 evidence to the contrary. Where the commissioner finds that the enhanced 4 exemption should be removed or denied without being replaced with a 5 basic exemption because [the income limitation applicable to the basic6exemption has also been exceeded] the property is not eligible for 7 either exemption, he or she shall provide the property owners with 8 notice and an opportunity to submit to the commissioner evidence to the 9 contrary. In either case, if the owners fail to respond to such notice 10 within forty-five days from the mailing thereof, or if their response 11 does not show to the commissioner's satisfaction that the property is 12 eligible for the exemption claimed, the commissioner shall direct the 13 assessor or other person having custody or control of the assessment 14 roll or tax roll to either replace the enhanced exemption with a basic 15 exemption, or to remove or deny the enhanced exemption without replacing 16 it with a basic exemption, as appropriate. The commissioner shall 17 further direct such person to correct the roll accordingly. Such a 18 directive shall be binding upon the assessor or other person having 19 custody or control of the assessment roll or tax roll, and shall be 20 implemented by such person without the need for further documentation or 21 approval. 22 [(C)] (D) Notwithstanding any provision of law to the contrary, 23 neither an assessor nor a board of assessment review has the authority 24 to consider an objection to the replacement or removal or denial of an 25 exemption pursuant to this subdivision, nor may such an action be 26 reviewed in a proceeding to review an assessment pursuant to title one 27 or one-A of article seven of this chapter. Such an action may only be 28 challenged before the department. If a taxpayer is dissatisfied with the 29 department's final determination, the taxpayer may appeal that determi- 30 nation to the state board of real property tax services in a form and 31 manner to be prescribed by the commissioner. Such appeal shall be filed 32 within forty-five days from the issuance of the department's final 33 determination. If dissatisfied with the state board's determination, the 34 taxpayer may seek judicial review thereof pursuant to article seventy- 35 eight of the civil practice law and rules. The taxpayer shall otherwise 36 have no right to challenge such final determination in a court action, 37 administrative proceeding or any other form of legal recourse against 38 the commissioner, the department, the state board of real property tax 39 services, the assessor or other person having custody or control of the 40 assessment roll or tax roll regarding such action. 41 § 2. Paragraph (c) of subdivision 13 of section 425 of the real prop- 42 erty tax law, as amended by section 1 of part J of chapter 57 of the 43 laws of 2013, is amended, and a new paragraph (f) is added to read as 44 follows: 45 (c) Additional consequences. A penalty tax may be imposed pursuant to 46 this subdivision whether or not the improper exemption has been revoked 47 in the manner provided by this section. In addition, a person or persons 48 who are found to have made a material misstatement shall be disqualified 49 from further exemption pursuant to this section, and from the credit 50 authorized by subsection (eee) of section six hundred six of the tax 51 law, for a period of [five years if such misstatement appears on an52application filed prior to October first, two thousand thirteen, and] 53 six years [if such misstatement appears on an application filed there-54after]. In addition, such person or persons may be subject to prose- 55 cution pursuant to the penal law.S. 1509--B 65 1 (f) Assessor notification. The assessor shall inform the commissioner 2 whenever a person or persons is found to have made a material misstate- 3 ment on an application for the exemption authorized by this section. 4 § 3. Paragraph (13) of subsection (eee) of section 606 of the tax law 5 is amended by adding a new subparagraph (E) to read as follows: 6 (E) A taxpayer who is found to have made a material misstatement on an 7 application for the credit authorized by this section shall be disquali- 8 fied from receiving such credit for six years. As used herein, the term 9 "material misstatement" shall have the same meaning as set forth in 10 paragraph (a) of subdivision thirteen of section four hundred twenty- 11 five of the real property tax law. 12 § 4. Subparagraph (E) of paragraph (10) of subsection (eee) of section 13 606 of the tax law, as amended by section 8 of part A of chapter 73 of 14 the laws of 2016, is amended to read as follows: 15 (E) If the commissioner determines after issuing an advance payment 16 that it was issued in an excessive amount or to an ineligible or incor- 17 rect party, the commissioner shall be empowered to utilize any of the 18 procedures for collection, levy and lien of personal income tax set 19 forth in this article, any other relevant procedures referenced within 20 the provisions of this article, and any other law as may be applicable, 21 to recoup the improperly issued amount; provided that in the event such 22 party was determined to be ineligible on the basis that his or her 23 primary residence received the STAR exemption in the associated fiscal 24 year, the improperly issued credit amount shall be deemed a clerical 25 error and shall be paid upon notice and demand without the issuance of a 26 notice of deficiency and shall be assessed, collected and paid in the 27 same manner as taxes. 28 § 5. This act shall take effect immediately. 29 PART QQ 30 Section 1. Section 425 of the real property tax law is amended by 31 adding a new subdivision 17 to read as follows: 32 17. Certain disclosures authorized. (a) Notwithstanding any provision 33 of law to the contrary, when the commissioner has determined that the 34 owner or owners of a parcel of real property are ineligible for either 35 the STAR exemption authorized by this section or the STAR credit author- 36 ized by subsection (eee) of section six hundred six of the tax law, the 37 commissioner may disclose the names of such owner or owners to the 38 assessor of the assessing unit in which the property is located. In 39 addition: 40 (i) Where the commissioner has found that the STAR exemption or credit 41 could not be granted because the income of the owner or owners is above 42 the applicable limit, the commissioner may so advise the assessor, but 43 shall not disclose the amount of income of any such owner or owners. 44 (ii) Where the commissioner has found that the STAR exemption or cred- 45 it could not be granted because the property is not the primary resi- 46 dence of one or more of the owners thereof, or that the owner's spouse 47 is receiving a STAR exemption or STAR credit on another residence or a 48 comparable benefit on a residence in another state, the commissioner may 49 so advise the assessor. The commissioner may further advise the assessor 50 of the facts supporting that determination, including the location or 51 locations of the property owner's other residence or residences, if any. 52 (iii) Where the commissioner has found that the enhanced STAR 53 exemption or credit could not be granted because the owner or owners do 54 not meet the applicable age requirement, the commissioner may so adviseS. 1509--B 66 1 the assessor, and may further advise the assessor of their birth dates 2 if known. 3 (iv) Where the commissioner has found that the enhanced STAR exemption 4 or credit could not be granted because the owner or owners failed to 5 enroll in the income verification program or failed to submit the income 6 worksheet required thereunder, the commissioner may so advise the asses- 7 sor. 8 (b) Information disclosed to an assessor pursuant to this subdivision 9 shall be used only for purposes of real property tax administration. It 10 shall be deemed confidential otherwise, and shall not be subject to the 11 provisions of article six of the public officers law. 12 § 2. Section 467 of the real property tax law is amended by adding a 13 new subdivision 11 to read as follows: 14 11. (a) Notwithstanding any provision of law to the contrary, upon the 15 request of an assessor, the commissioner may disclose to the assessor 16 the names and addresses of the owners of property in that assessor's 17 assessing unit who are receiving the enhanced STAR exemption or enhanced 18 STAR credit and whose federal adjusted gross income is less than the 19 uppermost amount specified by subparagraph three of paragraph (b) of 20 subdivision one of this section (represented therein as M + $8,400). 21 Such amount shall be determined without regard to any local options that 22 the municipal corporation may or may not have exercised in relation to 23 increasing or decreasing the maximum income eligibility level authorized 24 by this section, provided that the amount so determined for a city with 25 a population of one million or more shall take into account the distinct 26 maximum income eligibility level established for such city by paragraph 27 (a) of subdivision three of this section. In no case shall the commis- 28 sioner disclose to an assessor the amount of an owner's federal adjusted 29 gross income. 30 (b) The assessor may use the information contained in such a report to 31 contact those owners who are not already receiving the exemption author- 32 ized by this section and to suggest that they consider applying for it. 33 Provided, however, that nothing contained herein shall be construed as 34 enabling any person or persons to qualify for the exemption authorized 35 by this section on the basis of their federal adjusted gross income, 36 rather than on the basis of their income as determined pursuant to the 37 provisions of paragraph (a) of subdivision three of this section. 38 (c) Information disclosed to an assessor pursuant to this subdivision 39 shall be used only for purposes of real property tax administration. It 40 shall be deemed confidential otherwise, and shall not be subject to the 41 provisions of article six of the public officers law. 42 § 3. Section 1532 of the real property tax law is amended by adding a 43 new subdivision 5 to read as follows: 44 5. Information regarding decedents provided by the commissioner to a 45 county director of real property tax services pursuant to subsection (c) 46 of section six hundred fifty-one of the tax law shall be used only for 47 purposes of real property tax administration. The contents of the report 48 may be shared with the assessor and tax collecting officer of the munic- 49 ipal corporation in which the decedent's former residence is located, 50 and with the enforcing officer if such residence is subject to delin- 51 quent taxes. The information shall be deemed confidential otherwise, and 52 shall not be subject to the provisions of article six of the public 53 officers law. 54 § 4. Subsection (c) of section 651 of the tax law, as amended by chap- 55 ter 783 of the laws of 1962, is amended to read as follows:S. 1509--B 67 1 (c) Decedents. The return for any deceased individual shall be made 2 and filed by his executor, administrator, or other person charged with 3 his property. If a final return of a decedent is for a fractional part 4 of a year, the due date of such return shall be the fifteenth day of the 5 fourth month following the close of the twelve-month period which began 6 with the first day of such fractional part of the year. Notwithstanding 7 any provision of law to the contrary, when a return has been filed for a 8 decedent, the commissioner may disclose the decedent's name, address, 9 and the date of death to the director of real property tax services of 10 the county in which the address reported on such return is located. 11 § 5. This act shall take effect immediately. 12 PART RR 13 Intentionally Omitted 14 PART SS 15 Section 1. Subdivision 6 of section 1306-a of the real property tax 16 law, as amended by section 3 of part TT of chapter 59 of the laws of 17 2017, is amended to read as follows: 18 6. When the commissioner determines, at least twenty days prior to the 19 levy of school district taxes, that an advance credit of the personal 20 income tax credit authorized by subsection (eee) of section six hundred 21 six of the tax law will be provided to the owners of a parcel in that 22 school district, he or she shall so notify the assessor, the county 23 director of real property tax services, and the authorities of the 24 school district, who shall cause a statement to be placed on the tax 25 bill for the parcel in substantially the following form: "An estimated 26 STAR check has been or will be mailed to you [upon issuance] by the NYS 27 Tax Department. Any overpayment or underpayment can be reconciled on 28 your next tax return or STAR credit check." 29 Notwithstanding any provision of law to the contrary, in the event 30 that the parcel in question had been granted a STAR exemption on the 31 assessment roll upon which school district taxes are to be levied, such 32 exemption shall be deemed null and void, shall be removed from the 33 assessment roll, and shall be disregarded when the parcel's tax liabil- 34 ity is determined. The assessor or other local official or officials 35 having custody and control of the data file used to generate school 36 district tax rolls and tax bills shall be authorized and directed to 37 change such file as necessary to enable the school district authorities 38 to discharge the duties imposed upon them by this subdivision. 39 § 2. This act shall take effect immediately. 40 PART TT 41 Section 1. Paragraph (a-2) of subdivision 6 of section 425 of the real 42 property tax law, as added by section 1 of part D of chapter 60 of the 43 laws of 2016, is amended to read as follows: 44 (a-2) Notwithstanding any provision of law to the contrary, where [a45renewal] an application for the "enhanced" STAR exemption authorized by 46 subdivision four of this section has not been filed on or before the 47 taxable status date, and the owner believes that good cause existed for 48 the failure to file the [renewal] application by that date, the owner 49 may, no later than the last day for paying school taxes without incur- 50 ring interest or penalty, submit a written request to the commissionerS. 1509--B 68 1 asking him or her to extend the filing deadline and grant the exemption. 2 Such request shall contain an explanation of why the deadline was 3 missed, and shall be accompanied by [a renewal] an application, reflect- 4 ing the facts and circumstances as they existed on the taxable status 5 date. After consulting with the assessor, the commissioner may extend 6 the filing deadline and grant the exemption if the commissioner is 7 satisfied that (i) good cause existed for the failure to file the 8 [renewal] application by the taxable status date, and that (ii) the 9 applicant is otherwise entitled to the exemption. The commissioner shall 10 mail notice of his or her determination to such owner and the assessor. 11 If the determination states that the commissioner has granted the 12 exemption, the assessor shall thereupon be authorized and directed to 13 correct the assessment roll accordingly, or, if another person has 14 custody or control of the assessment roll, to direct that person to make 15 the appropriate corrections. If the correction is not made before school 16 taxes are levied, the [failure to take the exemption into account in the17computation of the tax shall be deemed a "clerical error" for purposes18of title three of article five of this chapter, and shall be corrected19accordingly] school district authorities shall be authorized and 20 directed to take account of the fact that the commissioner has granted 21 the exemption by correcting the applicant's tax bill and/or issuing a 22 refund accordingly. 23 § 2. Paragraph (d) of subdivision 2 of section 496 of the real proper- 24 ty tax law, as added by section 3 of part A of chapter 60 of the laws of 25 2016, is amended to read as follows: 26 (d) If the applicant is renouncing a STAR exemption in order to quali- 27 fy for the personal income tax credit authorized by subsection (eee) of 28 section six hundred six of the tax law, and no other exemptions are 29 being renounced on the same application, or if the applicant is renounc- 30 ing a STAR exemption before school taxes have been levied on the assess- 31 ment roll upon which that exemption appears, no processing fee shall be 32 applicable. 33 § 3. Paragraph (a) of subdivision 2 of section 496 of the real proper- 34 ty tax law, as amended by section 3 of part A of chapter 60 of the laws 35 of 2016, is amended to read as follows: 36 (a) For each assessment roll on which the renounced exemption appears, 37 the assessed value that was exempted shall be multiplied by the tax rate 38 or rates that were applied to that assessment roll, or in the case of a 39 renounced STAR exemption, the tax savings calculated pursuant to subdi- 40 vision two of section thirteen hundred six-a of this chapter. Interest 41 shall then be added to each such product at the rate prescribed by 42 section nine hundred twenty-four-a of this chapter or such other law as 43 may be applicable for each month or portion thereon since the levy of 44 taxes upon such assessment roll. 45 § 4. Paragraph 5 of subsection (eee) of section 606 of the tax law, as 46 amended by section 8 of part A of chapter 73 of the laws of 2016, is 47 amended to read as follows: 48 (5) Disqualification. A taxpayer shall not qualify for the credit 49 authorized by this subsection if the parcel that serves as the taxpay- 50 er's primary residence received the STAR exemption on the assessment 51 roll upon which school district taxes for the associated fiscal year 52 [where] were levied. Provided, however, that the taxpayer may remove 53 this disqualification by renouncing the exemption [and making any54required payments] by December thirty-first of the taxable year, as 55 provided by subdivision sixteen of section four hundred twenty-five of 56 the real property tax law, and making any required payments within theS. 1509--B 69 1 time frame prescribed by section four hundred ninety-six of the real 2 property tax law. 3 § 5. This act shall take effect immediately. 4 PART UU 5 Section 1. The article heading of article 13-F of the public health 6 law, as amended by chapter 448 of the laws of 2012, is amended to read 7 as follows: 8 REGULATION OF TOBACCO PRODUCTS, 9 VAPOR PRODUCTS, ELECTRONIC CIGARETTES, 10 HERBAL CIGARETTES AND SMOKING 11 PARAPHERNALIA; DISTRIBUTION TO [MINORS] PERSONS UNDER THE 12 AGE OF TWENTY-ONE 13 § 2. Subdivisions 1 and 4 of section 1399-aa of the public health law, 14 subdivision 1 as amended by chapter 13 of the laws of 2003, and subdivi- 15 sion 4 as added by chapter 799 of the laws of 1992, are amended and six 16 new subdivisions 14, 15, 16, 17, 18 and 19 are added to read as follows: 17 1. "Enforcement officer" means the enforcement officer designated 18 pursuant to article thirteen-E of this chapter to enforce such article 19 and hold hearings pursuant thereto; provided that in a city with a popu- 20 lation of more than one million it shall also mean an officer or employ- 21 ee or any agency of such city that is authorized to enforce any local 22 law of such city related to the regulation of the sale of tobacco 23 products to [minors] persons under the age of twenty-one. 24 4. "Private club" means an organization with no more than an insignif- 25 icant portion of its membership comprised of people under the age of 26 [eighteen] twenty-one years that regularly receives dues and/or payments 27 from its members for the use of space, facilities and services. 28 14. "Price reduction instrument" means any coupon, voucher, rebate, 29 card, paper, note, form, statement, ticket, image, or other issue, 30 whether in paper, digital, or any other form, used for commercial 31 purposes to receive an article, product, service, or accommodation with- 32 out charge or at a discounted price. 33 15. "Dealer" means a dealer, as defined in section four hundred seven- 34 ty of the tax law or a vapor products dealer as defined in section elev- 35 en hundred eighty of the tax law. 36 16. "Vapor product" means any noncombustible liquid or gel, regardless 37 of the presence of nicotine therein, that is manufactured into a 38 finished product for use in an electronic cigarette, electronic cigar, 39 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 40 similar device. "Vapor product" shall not include any product approved 41 by the United States food and drug administration as a drug or medical 42 device, or manufactured and dispensed pursuant to title five-A of arti- 43 cle thirty-three of the public health law. 44 17. "Tobacco and vapor products menu" means a booklet, pamphlet, or 45 other listing of tobacco products, herbal cigarettes, vapor products, 46 and electronic cigarettes offered for sale by the dealer and the price 47 of such products. The tobacco and vapor products menu may contain 48 pictures of and advertisements for tobacco products, herbal cigarettes, 49 vapor products and electronic cigarettes. 50 18. "Menu cover page" means the front cover of a tobacco and vapor 51 products menu or, if there is no front cover, the first page of a tobac- 52 co and vapor products menu. 53 19. "Characterizing flavor" means a distinguishable taste or aroma, 54 other than the taste or aroma of tobacco or menthol, imparted eitherS. 1509--B 70 1 prior to or during consumption of a tobacco product, electronic ciga- 2 rettes and vapor products or component thereof, including, but not 3 limited to, tastes or aromas relating to any fruit, chocolate, vanilla, 4 honey, candy, cocoa, dessert, alcoholic beverage, herb or spice. 5 § 3. Section 1399-bb of the public health law, as amended by chapter 6 508 of the laws of 2000, the section heading and subdivisions 4 and 5 as 7 amended by chapter 4 of the laws of 2018 and subdivision 2 as amended by 8 chapter 13 of the laws of 2003, is amended to read as follows: 9 § 1399-bb. Distribution of tobacco products, vapor products, electron- 10 ic cigarettes or herbal cigarettes without charge. 1. No person engaged 11 in the business of selling or otherwise distributing tobacco products, 12 vapor products, electronic cigarettes or herbal cigarettes for commer- 13 cial purposes, or any agent or employee of such person, shall knowingly, 14 in furtherance of such business: 15 (a) distribute without charge any tobacco products or herbal ciga- 16 rettes to any individual, provided that the distribution of a package 17 containing tobacco products or herbal cigarettes in violation of this 18 subdivision shall constitute a single violation without regard to the 19 number of items in the package; or 20 (b) distribute [coupons] price reduction instruments which are redeem- 21 able for tobacco products [or], herbal cigarettes, vapor products, or 22 electronic cigarettes to any individual, provided that this subdivision 23 shall not apply to coupons contained in newspapers, magazines or other 24 types of publications, coupons obtained through the purchase of tobacco 25 products [or], herbal cigarettes, vapor products, or electronic ciga- 26 rettes or obtained at locations which sell tobacco products [or], herbal 27 cigarettes, vapor products, or electronic cigarettes provided that such 28 distribution is confined to a designated area or to coupons sent through 29 the mail. 30 1-a. No person engaged in the business of selling or otherwise 31 distributing tobacco products, herbal cigarettes, vapor products, or 32 electronic cigarettes for commercial purposes, or any agent or employee 33 of such person, shall knowingly, in furtherance of such business: 34 (a) honor or accept a price reduction instrument in any transaction 35 related to the sale of tobacco products, herbal cigarettes, vapor 36 products, or electronic cigarettes to a consumer; 37 (b) sell or offer for sale tobacco products, herbal cigarettes, vapor 38 products, or electronic cigarettes to a consumer through any multi-pack- 39 age discount or otherwise provide to a consumer any tobacco products, 40 herbal cigarettes, vapor products, electronic cigarettes for less than 41 the listed price in exchange for the purchase of any other tobacco 42 products, herbal cigarettes, vapor products, or electronic cigarettes by 43 the consumer; 44 (c) sell, offer for sale, or otherwise provide any product other than 45 tobacco products, herbal cigarettes, vapor products, or electronic ciga- 46 rettes to a consumer for less than the listed price in exchange for the 47 purchase of tobacco products, herbal cigarettes, vapor products, or 48 electronic cigarettes by the consumer; or 49 (d) sell, offer for sale, or otherwise provide tobacco products, 50 herbal cigarettes, vapor products, or electronic cigarettes to a consum- 51 er for less than the listed price. 52 2. The prohibitions contained in subdivision one of this section shall 53 not apply to the following locations: 54 (a) private social functions when seating arrangements are under the 55 control of the sponsor of the function and not the owner, operator, 56 manager or person in charge of such indoor area;S. 1509--B 71 1 (b) conventions and trade shows; provided that the distribution is 2 confined to designated areas generally accessible only to persons over 3 the age of [eighteen] twenty-one; 4 (c) events sponsored by tobacco [or], herbal cigarette, vapor 5 products, or electronic cigarette manufacturers provided that the 6 distribution is confined to designated areas generally accessible only 7 to persons over the age of [eighteen] twenty-one; 8 (d) bars as defined in subdivision one of section thirteen hundred 9 ninety-nine-n of this chapter; 10 (e) tobacco businesses as defined in subdivision eight of section 11 thirteen hundred ninety-nine-aa of this article; 12 (f) factories as defined in subdivision nine of section thirteen 13 hundred ninety-nine-aa of this article and construction sites; provided 14 that the distribution is confined to designated areas generally accessi- 15 ble only to persons over the age of [eighteen] twenty-one. 16 3. No person shall distribute tobacco products [or], herbal 17 cigarettes, vapor products, or electronic cigarettes at the locations 18 set forth in paragraphs (b), (c) and (f) of subdivision two of this 19 section unless such person gives five days written notice to the 20 enforcement officer. 21 4. No person engaged in the business of selling or otherwise distrib- 22 uting vapor products or electronic cigarettes for commercial purposes, 23 or any agent or employee of such person, shall knowingly, in furtherance 24 of such business, distribute without charge any vapor products or elec- 25 tronic cigarettes to any individual under [eighteen] twenty-one years of 26 age. 27 5. The distribution of tobacco products or herbal cigarettes pursuant 28 to subdivision two of this section or the distribution without charge of 29 vapor products or electronic cigarettes shall be made only to an indi- 30 vidual who demonstrates, through (a) a driver's license or [other photo-31graphic] non-driver's identification card issued by [a government entity32or educational institution] the commissioner of motor vehicles, the 33 federal government, any United States territory, commonwealth or 34 possession, the District of Columbia, a state government within the 35 United States or a provincial government of the dominion of Canada, or 36 (b) a valid passport issued by the United States government or any other 37 country, or (c) an identification card issued by the armed forces of the 38 United States, indicating that the individual is at least [eighteen] 39 twenty-one years of age. Such identification need not be required of any 40 individual who reasonably appears to be at least [twenty-five] thirty 41 years of age; provided, however, that such appearance shall not consti- 42 tute a defense in any proceeding alleging the sale of a tobacco product, 43 vapor product, electronic cigarette or herbal cigarette or the distrib- 44 ution without charge of vapor products or electronic cigarettes to an 45 individual under twenty-one years of age. 46 § 4. The opening paragraph of section 1399-cc of the public health 47 law, as amended by chapter 542 of the laws of 2014, is amended to read 48 as follows: 49 Sale of tobacco products, herbal cigarettes, [liquid nicotine] vapor 50 products, electronic cigarettes, shisha, rolling papers or smoking 51 paraphernalia to [minors] persons under the age of twenty-one is prohib- 52 ited. 53 § 5. Paragraph (e) of subdivision 1 of section 1399-cc of the public 54 health law is REPEALED.S. 1509--B 72 1 § 6. Subdivisions 2, 3, 4 and 7 of section 1399-cc of the public 2 health law, as amended by chapter 542 of the laws of 2014, are amended 3 to read as follows: 4 2. Any person operating a place of business wherein tobacco products, 5 herbal cigarettes, [liquid nicotine] vapor products, shisha or electron- 6 ic cigarettes, are sold or offered for sale is prohibited from selling 7 such products, herbal cigarettes, [liquid nicotine] vapor products, 8 shisha, electronic cigarettes or smoking paraphernalia 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 CIGARETTES, CIGARS, CHEWING TOBACCO, POWDERED TOBAC- 12 CO, SHISHA OR OTHER TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICO-13TINE] VAPOR PRODUCTS, ELECTRONIC CIGARETTES, ROLLING PAPERS OR SMOKING 14 PARAPHERNALIA, TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS OF AGE IS 15 PROHIBITED BY LAW." Such sign shall be printed on a white card in red 16 letters at least one-half inch in height. 17 3. Sale of tobacco products, herbal cigarettes, [liquid nicotine] 18 vapor products, shisha or electronic cigarettes in such places, other 19 than by a vending machine, shall be made only to an individual who 20 demonstrates, through (a) a valid driver's license or non-driver's iden- 21 tification card issued by the commissioner of motor vehicles, the feder- 22 al government, any United States territory, commonwealth or possession, 23 the District of Columbia, a state government within the United States or 24 a provincial government of the dominion of Canada, or (b) a valid pass- 25 port issued by the United States government or any other country, or (c) 26 an identification card issued by the armed forces of the United States, 27 indicating that the individual is at least [eighteen] twenty-one years 28 of age. Such identification need not be required of any individual who 29 reasonably appears to be at least [twenty-five] thirty years of age, 30 provided, however, that such appearance shall not constitute a defense 31 in any proceeding alleging the sale of a tobacco product, herbal ciga- 32 rettes, [liquid nicotine] vapor products, shisha or electronic ciga- 33 rettes to an individual under [eighteen] twenty-one years of age. 34 4. (a) Any person operating a place of business wherein tobacco 35 products, herbal cigarettes, [liquid nicotine] vapor products, shisha or 36 electronic cigarettes are sold or offered for sale may perform a trans- 37 action scan as a precondition for such purchases. 38 (b) In any instance where the information deciphered by the trans- 39 action scan fails to match the information printed on the driver's 40 license or non-driver identification card, or if the transaction scan 41 indicates that the information is false or fraudulent, the attempted 42 transaction shall be denied. 43 (c) In any proceeding pursuant to section thirteen hundred ninety- 44 nine-ee of this article, it shall be an affirmative defense that such 45 person had produced a driver's license or non-driver identification card 46 apparently issued by a governmental entity, successfully completed that 47 transaction scan, and that the tobacco product, herbal cigarettes or 48 [liquid nicotine] vapor products had been sold, delivered or given to 49 such person in reasonable reliance upon such identification and trans- 50 action scan. In evaluating the applicability of such affirmative defense 51 the commissioner shall take into consideration any written policy 52 adopted and implemented by the seller to effectuate the provisions of 53 this chapter. Use of a transaction scan shall not excuse any person 54 operating a place of business wherein tobacco products, herbal ciga- 55 rettes, [liquid nicotine] vapor products, shisha or electronic ciga- 56 rettes are sold, or the agent or employee of such person, from the exer-S. 1509--B 73 1 cise of reasonable diligence otherwise required by this chapter. 2 Notwithstanding the above provisions, any such affirmative defense shall 3 not be applicable in any civil or criminal proceeding, or in any other 4 forum. 5 7. (a) No person operating a place of business wherein tobacco 6 products, herbal cigarettes, [liquid nicotine] vapor products, shisha or 7 electronic cigarettes are sold or offered for sale shall sell, permit to 8 be sold, offer for sale or display for sale any tobacco product, herbal 9 cigarettes, [liquid nicotine] vapor products, shisha or electronic ciga- 10 rettes in any manner, unless such products and cigarettes are stored for 11 sale [(a)] (i) behind a counter in an area accessible only to the 12 personnel of such business, or [(b)] (ii) in a locked container; 13 provided, however, such restriction shall not apply to tobacco busi- 14 nesses, as defined in subdivision eight of section thirteen hundred 15 ninety-nine-aa of this article, and to places to which admission is 16 restricted to persons [eighteen] twenty-one years of age or older. 17 (b) In addition to the requirements set forth in paragraph (a) of this 18 subdivision, no dealer shall permit the display of any tobacco product, 19 herbal cigarette, vapor product, or electronic cigarette in a manner 20 that permits a consumer to view any such item prior to purchase. Except 21 as provided for in paragraph (c) of this subdivision is not violated if: 22 (i) at the direct request of a customer at least twenty-one years of 23 age, such a customer handles the item, packaged or otherwise, to inspect 24 the product prior to purchase; or 25 (ii) such items are temporarily visible during restocking, the sale of 26 such items, or the carriage of such items into or out of the premises. 27 (c) No dealer shall display or permit the display of any tobacco prod- 28 uct, herbal cigarette, vapor product, or electronic cigarette for any 29 longer than necessary to complete the purposes identified in subpara- 30 graphs (i) and (ii) of paragraph (b) of this subdivision. 31 (d) No dealer shall store any tobacco and vapor products menu in a 32 location where it is visible to customers or accessible to customers 33 without the assistance of the dealer. The menu shall also contain menu 34 cover page that shall prevent the inadvertent viewing of promotional or 35 other material contained within the tobacco and vapor products menu. 36 (e) No dealer shall provide any tobacco and vapor products menu or any 37 tobacco product, herbal cigarette, vapor product, or electronic ciga- 38 rette to any individual who has not demonstrated, through identification 39 which meets the requirements of subdivision three of this section, that 40 the individual is at least twenty-one years of age. Such identification 41 need not be required of any individual who reasonably appears to be over 42 the age of thirty, provided, however, that such appearance shall not 43 constitute a defense in any proceeding alleging the sale of such item to 44 an individual under twenty-one years of age. It shall be an affirmative 45 defense to a violation of this paragraph that the dealer successfully 46 performed a transaction scan of an individual's identification and that 47 a tobacco and vapor products menu, tobacco product, herbal cigarette, 48 vapor product, or electronic cigarette was provided to such individual 49 in reasonable reliance upon such identification and transaction scan. 50 (f) After a customer has completed viewing a tobacco and vapor 51 products menu, the dealer shall immediately return the tobacco and vapor 52 products menu to its storage location. 53 (g) Unless required otherwise by regulation of the department, the 54 menu cover page of the tobacco and vapor products menu shall be blank or 55 contain only the words "Tobacco and Vapor Products Menu" and shall not 56 contain any advertising or other promotional material.S. 1509--B 74 1 (h) The commissioner may issue rules and regulations governing the use 2 of the tobacco and vapor products menu and menu cover page. 3 (i) Paragraphs (a) through (g) of this subdivision shall not apply to 4 a place of business to which admission is restricted solely to persons 5 twenty-one years of age or older. 6 (j) Nothing herein shall be construed to restrict the authority of any 7 county, city, town, or village to enact, adopt, promulgate and enforce 8 additional local laws, ordinances, regulations or other measures which 9 are in addition to or more stringent than either of the provisions of 10 this article. 11 § 7. Section 1399-dd of the public health law, as amended by chapter 12 448 of the laws of 2012, is amended to read as follows: 13 § 1399-dd. Sale of tobacco products, herbal cigarettes, vapor 14 products, or electronic cigarettes in vending machines. No person, firm, 15 partnership, company or corporation shall operate a vending machine 16 which dispenses tobacco products, herbal cigarettes, vapor products, or 17 electronic cigarettes unless such machine is located: (a) in a bar as 18 defined in subdivision one of section thirteen hundred ninety-nine-n of 19 this chapter, or the bar area of a food service establishment with a 20 valid, on-premises full liquor license; (b) in a private club; (c) in a 21 tobacco business as defined in subdivision eight of section thirteen 22 hundred ninety-nine-aa of this article; or (d) in a place of employment 23 which has an insignificant portion of its regular workforce comprised of 24 people under the age of [eighteen] twenty-one years and only in such 25 locations that are not accessible to the general public; provided, 26 however, that in such locations the vending machine is located in plain 27 view and under the direct supervision and control of the person in 28 charge of the location or his or her designated agent or employee. 29 § 8. Section 1399-ee of the public health law, as amended by chapter 30 162 of the laws of 2002, is amended to read as follows: 31 § 1399-ee. Hearings; penalties. 1. Hearings with respect to violation 32 of this article shall be conducted in the same manner as hearings 33 conducted under article thirteen-E of this chapter. 34 2. If the enforcement officer determines after a hearing that a 35 violation of this article has occurred, he or she shall impose a civil 36 penalty of a minimum of three hundred dollars, but not to exceed one 37 thousand dollars for a first violation, and a minimum of five hundred 38 dollars, but not to exceed one thousand five hundred dollars for each 39 subsequent violation, unless a different penalty is otherwise provided 40 in this article. The enforcement officer shall advise the [retail] deal- 41 er that upon the accumulation of three or more points pursuant to this 42 section the [department] commissioner of taxation and finance shall 43 suspend the dealer's registration. If the enforcement officer determines 44 after a hearing that a [retail] dealer was selling tobacco products, 45 vapor products, or electronic cigarettes while their registration was 46 suspended or permanently revoked pursuant to subdivision three or four 47 of this section, he or she shall impose a civil penalty of twenty-five 48 hundred dollars. 49 3. (a) Imposition of points. If the enforcement officer determines, 50 after a hearing, that the [retail] dealer violated subdivision [one] two 51 of section thirteen hundred ninety-nine-cc of this article with respect 52 to a prohibited sale to a [minor] person under the age of twenty-one, he 53 or she shall, in addition to imposing any other penalty required or 54 permitted pursuant to this section, assign two points to the [retail] 55 dealer's record where the individual who committed the violation did not 56 hold a certificate of completion from a state certified tobacco salesS. 1509--B 75 1 training program and one point where the [retail] dealer demonstrates 2 that the person who committed the violation held a certificate of 3 completion from a state certified tobacco sales training program. 4 (b) Revocation. If the enforcement officer determines, after a hear- 5 ing, that a [retail] dealer has violated this article four times within 6 a three year time frame he or she shall, in addition to imposing any 7 other penalty required or permitted by this section, direct the commis- 8 sioner of taxation and finance to revoke the dealer's registration for 9 one year. 10 (c) Duration of points. Points assigned to a [retail] dealer's record 11 shall be assessed for a period of thirty-six months beginning on the 12 first day of the month following the assignment of points. 13 (d) Reinspection. Any [retail] dealer who is assigned points pursuant 14 to paragraph (a) of this subdivision shall be reinspected at least two 15 times a year by the enforcement officer until points assessed are 16 removed from the [retail] dealer's record. 17 (e) Suspension. If the department determines that a [retail] dealer 18 has accumulated three points or more, the department shall direct the 19 commissioner of taxation and finance to suspend such dealer's registra- 20 tion for six months. The three points serving as the basis for a suspen- 21 sion shall be erased upon the completion of the six month penalty. 22 (f) Surcharge. A fifty dollar surcharge to be assessed for every 23 violation will be made available to enforcement officers and shall be 24 used solely for compliance checks to be conducted to determine compli- 25 ance with this section. 26 4. (a) If the enforcement officer determines, after a hearing, that a 27 [retail] dealer has violated this article while their registration was 28 suspended pursuant to subdivision three of this section, he or she 29 shall, in addition to imposing any other penalty required or permitted 30 by this section, direct the commissioner of taxation and finance to 31 permanently revoke the dealer's registration and not permit the dealer 32 to obtain a new registration. 33 (b) If the enforcement officer determines, after a hearing, that a 34 vending machine operator has violated this article three times within a 35 two year period, or four or more times cumulatively he or she shall, in 36 addition to imposing any other penalty required or permitted by this 37 section, direct the commissioner of taxation and finance to suspend the 38 vendor's registration for one year and not permit the vendor to obtain a 39 new registration for such period. 40 5. The department shall publish a notification of the name and address 41 of any [retailer] dealer violating the provisions of this section and 42 indicate the number of times the dealer has violated the provisions of 43 this section. The notification shall be published in a newspaper of 44 general circulation in the locality in which the [retailer] dealer is 45 located. 46 6. (a) In any proceeding pursuant to subdivision three of this section 47 to assign points to a [retail] dealer's record, the [retail] dealer 48 shall be assigned one point instead of two points where the [retail] 49 dealer demonstrates that the person who committed the violation of 50 section thirteen hundred ninety-nine-cc of this article held a valid 51 certificate of completion from a state certified tobacco sales training 52 program. 53 (b) A state certified tobacco sales training program shall include 54 instruction in the following elements: 55 (1) the health effects of tobacco use, especially at a young age;S. 1509--B 76 1 (2) the legal purchase age and the additional requirements of section 2 thirteen hundred ninety-nine-cc of this article; 3 (3) legal forms of identification and the key features thereof; 4 (4) reliance upon legal forms of identification and the right to 5 refuse sales when acting in good faith; 6 (5) means of identifying fraudulent identification of attempted under- 7 age purchasers; 8 (6) techniques used to refuse a sale; 9 (7) the penalties arising out of unlawful sales to underage individ- 10 uals; and 11 (8) the significant disciplinary action or loss of employment that may 12 be imposed by the [retail] dealer for a violation of the law or a devi- 13 ation from the policies of the [retail] dealer in respect to compliance 14 with such law. 15 (c) A tobacco sales training program may be given and administered by 16 a [retail] dealer duly registered under section four hundred eighty-a of 17 the tax law which operates five or more registered locations, by a trade 18 association whose members are registered as [retail] dealers, by 19 national and regional franchisors who have granted at least five fran- 20 chises in the state to persons who are registered as such [retail] deal- 21 ers by a cooperative corporation with five or more members who are 22 registered as [retail] dealers and are operating in this state, and by a 23 wholesaler supplying fifty or more [retail] dealers. A person or entity 24 administering such training program shall issue certificates of 25 completion to persons successfully completing such a training program. 26 Such certificates shall be prima facie evidence of the completion of 27 such a training program by the person named therein. 28 (d) A certificate of completion may be issued for a period of three 29 years, however such certificate shall be invalidated by a change in 30 employment. 31 (e) Entities authorized pursuant to paragraph (c) of this subdivision 32 to give and administer a tobacco sales training program may submit a 33 proposed curriculum, a facsimile of any training aids and materials, and 34 a list of training locations to the department for review. Training aids 35 may include the use of video, computer based instruction, printed mate- 36 rials and other formats deemed acceptable to the department. The depart- 37 ment shall certify programs which provide instruction in the elements 38 set forth in paragraph (b) of this subdivision in a clear and meaningful 39 fashion. Programs approved by the department shall be certified for a 40 period of three years at which time an entity may reapply for certif- 41 ication. A non-refundable fee in the amount of three hundred dollars 42 shall be paid to the department with each application. 43 § 9. Section 1399-hh of the public health law, as added by chapter 433 44 of the laws of 1997, is amended to read as follows: 45 § 1399-hh. Tobacco vapor product and electronic cigarette enforcement. 46 The commissioner shall develop, plan and implement a comprehensive 47 program to reduce the prevalence of tobacco vapor product and electronic 48 cigarette use, particularly among persons less than [eighteen] twenty- 49 one years of age. This program shall include, but not be limited to, 50 support for enforcement of article thirteen-F of this chapter. 51 1. An enforcement officer, as defined in section thirteen hundred 52 ninety-nine-t of this chapter, may annually, on such dates as shall be 53 fixed by the commissioner, submit an application for such monies as are 54 made available for such purpose. Such application shall be in such form 55 as prescribed by the commissioner and shall include, but not be limited 56 to, plans regarding random spot checks, including the number and typesS. 1509--B 77 1 of compliance checks that will be conducted, and other activities to 2 determine compliance with this article. Each such plan shall include an 3 agreement to report to the commissioner: the names and addresses of 4 [tobacco retailers and vendors] dealers determined to be unlicensed, if 5 any; the number of complaints filed against licensed [tobacco retail6outlets] dealers; and the names of [tobacco retailers and vendors] deal- 7 ers who have paid fines, or have been otherwise penalized, due to 8 enforcement actions. 9 2. The commissioner shall distribute such monies as are made avail- 10 able for such purpose to enforcement officers and, in so doing, consider 11 the number of retail locations registered to sell tobacco products with- 12 in the jurisdiction of the enforcement officer and the level of proposed 13 activities. 14 3. Monies made available to enforcement officers pursuant to this 15 section shall only be used for local tobacco, herbal cigarette, vapor 16 products and electronic cigarette enforcement activities approved by the 17 commissioner. 18 § 10. Paragraph (b) of subdivision 2 of section 1399-ll of the public 19 health law, as added by chapter 518 of the laws of 2000, is amended to 20 read as follows: 21 (b) Any person operating a tobacco business wherein bidis is sold or 22 offered for sale is prohibited from selling such bidis to individuals 23 under [eighteen] twenty-one years of age, and shall post in a conspicu- 24 ous place a sign upon which there shall be imprinted the following 25 statement, "SALE OF BIDIS TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS 26 OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white 27 card in red letters at least one-half inch in height. 28 § 11. Subdivision 1 and paragraph (b) of subdivision 2 of section 29 1399-mm of the public health law, as added by chapter 549 of the laws of 30 2003, are amended to read as follows: 31 1. No person shall knowingly sell or provide gutka to any other person 32 under [eighteen] twenty-one years of age. No other provision of law 33 authorizing the sale of tobacco products, other than subdivision two of 34 this section, shall authorize the sale of gutka. Any person who 35 violates the provisions of this subdivision shall be subject to a civil 36 penalty of not more than five hundred dollars. 37 (b) Any person operating a tobacco business wherein gutka is sold or 38 offered for sale is prohibited from selling such gutka to individuals 39 under [eighteen] twenty-one years of age, and shall post in a conspicu- 40 ous place a sign upon which there shall be imprinted the following 41 statement, "SALE OF GUTKA TO PERSONS UNDER [EIGHTEEN] TWENTY-ONE YEARS 42 OF AGE IS PROHIBITED BY LAW." Such sign shall be printed on a white 43 card in red letters at least one-half inch in height. 44 § 12. The public health law is amended by adding a new section 45 1399-mm-1 to read as follows: 46 § 1399-mm-1. Sale in pharmacies. No tobacco products, herbal ciga- 47 rettes, vapor products, or electronic cigarettes shall be sold in a 48 pharmacy or in a retail establishment that contains a pharmacy operated 49 as a department as defined in paragraph f of subdivision two of section 50 sixty-eight hundred eight of the education law. 51 § 13. The public health law is amended by adding a new section 52 1399-mm-2 to read as follows: 53 § 1399-mm-2. Electronic cigarette and vapor products; characterizing 54 flavors. The commissioner is authorized to promulgate regulations 55 governing the sale and distribution of electronic cigarettes or vapor 56 products. Such regulations may, to the extent deemed necessary for theS. 1509--B 78 1 protection of public health, prohibit or restrict: (i) the selling, 2 offering for sale, possessing with intent to sell or offering for sale, 3 or distributing of refills, cartridges, or other components of electron- 4 ic cigarettes or vapor products that imparts a characterizing flavor; or 5 (ii) the use of trademarks, names or descriptions of characterizing 6 flavors that are clearly intended to appeal to minors. 7 § 14. Paragraph n of subdivision 1 of section 1399-o of the public 8 health law, as amended by chapter 335 of the laws of 2017, is amended to 9 read as follows: 10 n. general hospitals and residential health care facilities as defined 11 in article twenty-eight of this chapter, hospitals and residential 12 facilities licensed by or operated by the office of mental health pursu- 13 ant to the mental hygiene law, and other health care facilities licensed 14 by the state in which persons reside; provided, however, that the 15 provisions of this subdivision shall not prohibit smoking [and vaping] 16 by patients in separate enclosed rooms of residential health care facil- 17 ities, adult care facilities established or certified under title two of 18 article seven of the social services law, [community mental health resi-19dences established under section 41.44 of the mental hygiene law,] or 20 facilities where day treatment programs are provided, which are desig- 21 nated as smoking [and vaping] rooms for patients of such facilities or 22 programs; 23 § 15. Subdivision 2 of section 1399-o of the public health law is 24 amended by adding a new paragraph c to read as follows: 25 c. on the grounds of hospitals licensed by or operated by the office 26 of mental health pursuant to the mental hygiene law. 27 § 16. Section 399-gg of the general business law, as added by chapter 28 542 of the laws of 2014, is amended to read as follows: 29 § 399-gg. Packaging of [electronic liquid] vapor products. 1. No 30 person, firm or corporation shall sell or offer for sale any [electronic31liquid] vapor products, as defined in [paragraph (e) of] subdivision 32 [one] sixteen of section [thirteen hundred ninety-nine-cc] thirteen 33 hundred ninety-nine-aa of the public health law, unless the [electronic34liquid] vapor products is sold or offered for sale in a child resistant 35 bottle which is designed to prevent accidental exposure of children to 36 [electronic liquids] vapor products. 37 2. Any violation of this section shall be punishable by a civil penal- 38 ty not to exceed one thousand dollars. 39 § 17. The tax law is amended by adding a new article 28-C to read as 40 follows: 41 ARTICLE 28-C 42 SUPPLEMENTAL TAX ON VAPOR PRODUCTS 43 Section 1180. Definitions. 44 1181. Imposition of tax. 45 1182. Imposition of compensating use tax. 46 1183. Vapor products dealer registration and renewal. 47 1184. Administrative provisions. 48 1185. Criminal penalties. 49 1186. Deposit and disposition of revenue. 50 § 1180. Definitions. For the purposes of the taxes imposed by this 51 article, the following terms shall mean: 52 (a) "Vapor product" means any noncombustible liquid or gel, regardless 53 of the presence of nicotine therein, that is manufactured in to a 54 finished product for use in an electronic cigarette, electronic cigar,S. 1509--B 79 1 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 2 similar device. "Vapor product" shall not include any product approved 3 by the United States food and drug administration as a drug or medical 4 device, or manufactured and dispensed pursuant to title five-A of arti- 5 cle thirty-three of the public health law. 6 (b) "Vapor products dealer" means a person licensed by the commission- 7 er to sell vapor products in this state. 8 § 1181. Imposition of Tax. In addition to any other tax imposed by 9 this chapter or other law, there is hereby imposed a tax of twenty 10 percent on receipts from the retail sale of vapor products sold in this 11 state. The tax is imposed on the purchaser and collected by the vapor 12 products dealer as defined in subdivision (b) of section eleven hundred 13 eighty of this article, in trust for and on account of the state. 14 § 1182. Imposition of compensating use tax. (a) Except to the extent 15 that vapor products have already been or will be subject to the tax 16 imposed by section eleven hundred eighty-one of this article, or are 17 otherwise exempt under this article, there is hereby imposed a use tax 18 on every use within the state of vapor products: (1) purchased at 19 retail; and (2) manufactured or processed by the user if items of the 20 same kind are sold by him or her in the regular course of his or her 21 business. 22 (b) For purposes of paragraph one of subdivision (a) of this section, 23 the tax shall be at the rate of twenty percent of the consideration 24 given or contracted to be given for such vapor product purchased at 25 retail. For purposes of paragraph two of subdivision (a) of this 26 section, the tax shall be at the rate of twenty percent of the price at 27 which such items of the same kind of vapor product are offered for sale 28 by the user, and the mere storage, keeping, retention or withdrawal from 29 storage of such vapor product by the person that manufactured or proc- 30 essed such vapor product shall not be deemed a taxable use by him or 31 her. 32 (c) The tax due pursuant to this section shall be paid and reported no 33 later than twenty days after such use on a form prescribed by the 34 commissioner. 35 § 1183. Vapor products dealer registration and renewal. (a) Every 36 person who intends to sell vapor products in this state must receive 37 from the commissioner a certificate of registration prior to engaging in 38 business. Such person must electronically submit a properly completed 39 application for a certificate of registration for each location at which 40 vapor products will be sold in this state, on a form prescribed by the 41 commissioner, and shall be accompanied by a non-refundable application 42 fee of three hundred dollars. 43 (b) A vapor products dealer certificate of registration shall be 44 valid for the calendar year for which it is issued unless earlier 45 suspended or revoked. Upon the expiration of the term stated on the 46 certificate of registration, such certificate shall be null and void. A 47 certificate of registration shall not be assignable or transferable and 48 shall be destroyed immediately upon the vapor products dealer ceasing to 49 do business as specified in such certificate or in the event that such 50 business never commenced. 51 (c) Every vapor product dealer shall publicly display a vapor products 52 dealer certificate of registration in each place of business in this 53 state where vapor products are sold at retail. A vapor products dealer 54 who has no regular place of business shall publicly display such valid 55 certificate on each of its carts, stands, trucks or other merchandising 56 devices through which it sells vapor products.S. 1509--B 80 1 (d) (1) The commissioner shall refuse to issue a certificate of regis- 2 tration to any applicant who does not possess a valid certificate of 3 authority under section eleven hundred thirty-four of this chapter. In 4 addition, the commissioner may refuse to issue a certificate of regis- 5 tration, or suspend, cancel or revoke a certificate of registration 6 issued to any person who: (A) has a past-due liability as that term is 7 defined in section one hundred seventy-one-v of this chapter; (B) has 8 had a certificate of registration under this article or any license or 9 registration provided for in this chapter revoked within one year from 10 the date on which such application was filed; (C) has been convicted of 11 a crime provided for in this chapter within one year from the date on 12 which such application was filed; (D) willfully fails to file a report 13 or return required by this article; (E) willfully files, causes to be 14 filed, gives or causes to be given a report, return, certificate or 15 affidavit required by this article which is false; (F) willfully fails 16 to collect or truthfully account for or pay over any tax imposed by this 17 article; or (G) whose place of business is at the same premises as that 18 of a person whose vapor products dealer registration has been revoked 19 and where such revocation is still in effect, unless the applicant or 20 vapor products dealer provides the commissioner with adequate documenta- 21 tion demonstrating that such applicant or vapor products dealer acquired 22 the premises or business through an arm's length transaction as defined 23 in paragraph (e) of subdivision one of section four hundred eighty-a of 24 this chapter. 25 (2) In addition to the grounds provided in paragraph one of this 26 subdivision, the commissioner shall refuse to issue a certificate of 27 registration and shall cancel or suspend a certificate of registration 28 as directed by an enforcement officer pursuant to article thirteen-F of 29 the public health law. Notwithstanding any provision of law to the 30 contrary, an applicant whose application for a certificate of registra- 31 tion is refused or a vapor products dealer whose registration is 32 cancelled or suspended under this paragraph shall have no right to a 33 hearing under this chapter and shall have no right to commence a court 34 action or proceeding or to any other legal recourse against the commis- 35 sioner with respect to such refusal, suspension or cancellation; 36 provided, however, that nothing herein shall be construed to deny a 37 vapor products dealer a hearing under article thirteen-F of the public 38 health law or to prohibit vapor products dealers from commencing a court 39 action or proceeding against an enforcement officer as defined in 40 section thirteen hundred ninety-nine-aa of the public health law. 41 (e) If a vapor products dealer is suspended, cancelled or revoked and 42 such vapor products dealer sells vapor products through more than one 43 place of business in this state, the vapor products dealer's certificate 44 of registration issued to that place of business, cart, stand, truck or 45 other merchandising device, where such violation occurred, shall be 46 suspended, revoked or cancelled. Provided, however, upon a vapor 47 products dealer's third suspension, cancellation or revocation within a 48 five-year period for any one or more businesses owned or operated by the 49 vapor products dealer, such suspension, cancellation, or revocation of 50 the vapor products dealer's certificate of registration shall apply to 51 all places of business where he or she sells vapor products in this 52 state. 53 (f) Every holder of a certificate of registration must notify the 54 commissioner of changes to any of the information stated on the certif- 55 icate or changes to any information contained in the application for the 56 certificate of registration. Such notification must be made on or beforeS. 1509--B 81 1 the last day of the month in which a change occurs and must be made 2 electronically on a form prescribed by the commissioner. 3 (g) Every vapor products dealer who holds a certificate of registra- 4 tion under this article shall be required to reapply for a certificate 5 of registration for the following calendar year on or before the twenti- 6 eth day of September and such reapplication shall be subject to the same 7 requirements and conditions, including grounds for refusal, as an 8 initial registration under this article, including but not limited to 9 the payment of the three hundred dollar application fee for each retail 10 location. 11 (h) In addition to any other penalty imposed by this chapter, any 12 vapor products dealer who violates the provisions of this section, (1) 13 for a first violation is liable for a civil fine not less than five 14 thousand dollars but not to exceed twenty-five thousand dollars and such 15 certificate of registration may be suspended for a period of not more 16 than six months; and (2) for a second or subsequent violation within 17 three years following a prior violation of this section, is liable for a 18 civil fine not less than ten thousand dollars but not to exceed thirty- 19 five thousand dollars and such certificate of registration may be 20 suspended for a period of up to thirty-six months; or (3) for a third 21 violation within a period of five years, its vapor products certificate 22 or certificates of registration issued to each place of business owned 23 or operated by the vapor products dealer in this state, shall be revoked 24 for a period of up to five years. 25 § 1184. Administrative provisions. (a) Except as otherwise provided 26 for in this article, the taxes imposed by this article shall be adminis- 27 tered and collected in a like manner as and jointly with the taxes 28 imposed by sections eleven hundred five and eleven hundred ten of this 29 chapter. In addition, except as otherwise provided in this article, all 30 of the provisions of article twenty-eight of this chapter (except 31 sections eleven hundred seven, eleven hundred eight, eleven hundred 32 nine, and eleven hundred forty-eight) relating to or applicable to the 33 administration, collection and review of the taxes imposed by such 34 sections eleven hundred five and eleven hundred ten, including, but not 35 limited to, the provisions relating to definitions, returns, exemptions, 36 penalties, tax secrecy, personal liability for the tax, and collection 37 of tax from the customer, shall apply to the taxes imposed by this arti- 38 cle so far as such provisions can be made applicable to the taxes 39 imposed by this article with such limitations as set forth in this arti- 40 cle and such modifications as may be necessary in order to adapt such 41 language to the taxes so imposed. Such provisions shall apply with the 42 same force and effect as if the language of those provisions had been 43 set forth in full in this article except to the extent that any 44 provision is either inconsistent with a provision of this article or is 45 not relevant to the taxes imposed by this article. 46 (b) Notwithstanding the provisions of subdivision (a) of this section, 47 the exemptions provided in paragraph ten of subdivision (a) of section 48 eleven hundred fifteen of this chapter, and the provisions of section 49 eleven hundred sixteen, except those provided in paragraphs one, two, 50 three and six of subdivision (a) of such section, shall not apply to the 51 taxes imposed by this article. 52 (c) Notwithstanding the provisions of this section or section eleven 53 hundred forty-six of this chapter, the commissioner may, in his or her 54 discretion, permit the commissioner of health or his or her authorized 55 representative to inspect any return related to the tax imposed by this 56 article and may furnish to the commissioner of health any such returnS. 1509--B 82 1 or supply him or her with information concerning an item contained in 2 any such return, or disclosed by any investigation of a liability under 3 this article. 4 § 1185. Criminal penalties. The criminal penalties in sections eigh- 5 teen hundred one through eighteen hundred seven and eighteen hundred 6 seventeen of this chapter shall apply to this article with the same 7 force and effect as if the language of those provisions had been set 8 forth in full in this article except to the extent that any provision is 9 either inconsistent with a provision of this article or is not relevant 10 to the taxes imposed by this article. 11 § 1186. Deposit and disposition of revenue. The taxes, interest, and 12 penalties imposed by this article and collected or received by the 13 commissioner shall be deposited daily with such responsible banks, bank- 14 ing houses or trust companies, as may be designated by the comptroller, 15 to the credit of the comptroller in trust for the tobacco control and 16 insurance initiatives pool established by section ninety-two-dd of the 17 state finance law and distributed by the commissioner of health in 18 accordance with section twenty-eight hundred seven-v of the public 19 health law. Such deposits will be kept separate and apart from all other 20 money in the possession of the comptroller. The comptroller shall 21 require adequate security from all such depositories. Of the total 22 revenue collected or received under this article, the comptroller shall 23 retain such amount as the commissioner may determine to be necessary for 24 refunds under this article. Provided, however that the commissioner is 25 authorized and directed to deduct from the amounts he or she receives 26 from the registration fees under section eleven hundred eighty-three of 27 this article, before deposit into the tobacco control and insurance 28 initiatives pool, a reasonable amount necessary to effectuate refunds of 29 appropriations of the department to reimburse the department for the 30 costs incurred to administer, collect and distribute the taxes imposed 31 by this article. 32 § 18. Subsection (a) of section 92-dd of the state finance law, as 33 amended by section 3 of part T of chapter 61 of the laws of 2011, is 34 amended to read as follows: 35 (a) On and after April first, two thousand five, such fund shall 36 consist of the revenues heretofore and hereafter collected or required 37 to be deposited pursuant to paragraph (a) of subdivision eighteen of 38 section twenty-eight hundred seven-c, and sections twenty-eight hundred 39 seven-j, twenty-eight hundred seven-s and twenty-eight hundred seven-t 40 of the public health law, subdivision (b) of section four hundred eight- 41 y-two and section eleven hundred eighty-six of the tax law and required 42 to be credited to the tobacco control and insurance initiatives pool, 43 subparagraph (O) of paragraph four of subsection (j) of section four 44 thousand three hundred one of the insurance law, section twenty-seven of 45 part A of chapter one of the laws of two thousand two and all other 46 moneys credited or transferred thereto from any other fund or source 47 pursuant to law. 48 § 19. Severability clause. If any clause, sentence, paragraph, subdi- 49 vision, section or part of this act shall be adjudged by any court of 50 competent jurisdiction to be invalid, such judgment shall not affect, 51 impair, or invalidate the remainder thereof, but shall be confined in 52 its operation to the clause, sentence, paragraph, subdivision, section 53 or part thereof directly involved in the controversy in which such judg- 54 ment shall have been rendered. It is hereby declared to be the intent of 55 the legislature that this act would have been enacted even if such 56 invalid provisions had not been included herein.S. 1509--B 83 1 § 20. This act shall take effect on the one hundred eightieth day 2 after it shall have become a law; provided, however that section seven- 3 teen of this act shall take effect on the first day of a quarterly peri- 4 od described in subdivision (b) of section 1136 of the tax law next 5 commencing at least one hundred eighty days after this act shall become 6 a law, and shall apply to sales and uses of vapor products on or after 7 such date. 8 PART VV 9 Intentionally Omitted 10 PART WW 11 Section 1. Section 1166-a of the tax law, as added by section 1 of 12 part F of chapter 25 of the laws of 2009, is amended to read as follows: 13 § 1166-a. Special supplemental tax on passenger car rentals within the 14 metropolitan commuter transportation district. (a) In addition to the 15 tax imposed under section eleven hundred sixty of this article and in 16 addition to any tax imposed under any other article of this chapter, 17 there is hereby imposed and there shall be paid a tax at the rate of 18 five percent upon the receipts from every rental of a passenger car 19 which is a retail sale of such passenger car within the metropolitan 20 commuter transportation district as defined in [subdivision] subsection 21 (a) of section eight hundred of this chapter. 22 (b) Except to the extent that a passenger car rental described in 23 subdivision (a) of this section, or section eleven hundred sixty-six-b 24 of this article, has already been or will be subject to the tax imposed 25 under such subdivision or section and except as otherwise exempted under 26 this article, there is hereby imposed on every person and there shall be 27 paid a use tax for the use within the metropolitan commuter transporta- 28 tion district as defined in [subdivision] subsection (a) of section 29 eight hundred of this chapter; of any passenger car rented by the user 30 [which] that is a purchase at retail of such passenger car, but not 31 including any lease of a passenger car to which subdivision (i) of 32 section eleven hundred eleven of this chapter applies. For purposes of 33 this [paragraph] subdivision, the tax shall be at the rate of five 34 percent of the consideration given or contracted to be given for such 35 property, or for the use of such property, including any charges for 36 shipping or delivery as described in paragraph three of subdivision (b) 37 of section eleven hundred one of this chapter, but excluding any credit 38 for tangible personal property accepted in part payment and intended for 39 resale. 40 § 2. The tax law is amended by adding a new section 1166-b to read as 41 follows: 42 § 1166-b. Special supplemental tax on passenger car rentals outside of 43 the metropolitan commuter transportation district. (a) In addition to 44 the tax imposed under section eleven hundred sixty of this article and 45 in addition to any tax imposed under any other article of this chapter, 46 there is hereby imposed and there shall be paid a tax at the rate of 47 five percent upon the receipts from every rental of a passenger car that 48 is not subject to the tax described in section eleven hundred 49 sixty-six-a of this article, but which is a retail sale of such passen- 50 ger car within the state. 51 (b) Except to the extent that a passenger car rental described in 52 subdivision (a) of this section or in section eleven hundredS. 1509--B 84 1 sixty-six-a of this article, has already been subject to the tax imposed 2 under such subdivision or section, and except as otherwise exempted 3 under this article, there is hereby imposed on every person and there 4 shall be paid a use tax for the use within the state of any passenger 5 car rented by the user that is a purchase at retail of such passenger 6 car, but not including any lease of a passenger car to which subdivision 7 (i) of section eleven hundred eleven of this chapter applies. For 8 purposes of this subdivision, the tax shall be at the rate of five 9 percent of the consideration given or contracted to be given for such 10 property, or for the use of such property, including any charges for 11 shipping or delivery as described in paragraph three of subdivision (b) 12 of section eleven hundred one of this chapter, but excluding any credit 13 for tangible personal property accepted in part payment and intended for 14 resale. 15 § 3. Section 1167 of the tax law, as amended by section 3 of part F of 16 chapter 25 of the laws of 2009, is amended to read as follows: 17 § 1167. Deposit and disposition of revenue. All taxes, interest and 18 penalties collected or received by the commissioner under this article 19 shall be deposited and disposed of pursuant to the provisions of section 20 one hundred seventy-one-a of this chapter, except that after reserving 21 amounts in accordance with such section one hundred seventy-one-a of 22 this chapter, the remainder shall be paid by the comptroller to the 23 credit of the highway and bridge trust fund established by section 24 eighty-nine-b of the state finance law, provided, however[,]: (a) taxes, 25 interest and penalties collected or received pursuant to section eleven 26 hundred sixty-six-a of this article shall be paid to the credit of the 27 metropolitan transportation authority aid trust account of the metropol- 28 itan transportation authority financial assistance fund established by 29 section ninety-two-ff of the state finance law; and (b) taxes, interest 30 and penalties collected or received pursuant to section eleven hundred 31 sixty-six-b of this article shall be paid to the credit of the public 32 transportation systems operating assistance account established by 33 section eighty-eight-a of the state finance law. 34 § 4. This act shall take effect May 1, 2019, and shall apply to 35 rentals of passenger cars commencing on and after such date whether or 36 not under a prior contract; provided, however where such passenger car 37 rentals are billed on a monthly, quarterly or other period basis, the 38 tax imposed by this act shall apply to the rental for such period if 39 more than half of the days included in such period are days subsequent 40 to such effective date. 41 PART XX 42 Section 1. The tax law is amended by adding a new article 20-D to read 43 as follows: 44 ARTICLE 20-D 45 EXCISE TAX ON SALE OF OPIOIDS 46 Section 497. Definitions. 47 498. Imposition of excise tax. 48 499. Returns to be secret. 49 § 497. Definitions. The following terms shall have the following mean- 50 ings when used in this article. 51 (a) "Opioid" shall mean an "opiate" as defined by subdivision twenty- 52 three of section thirty-three hundred two of the public health law and 53 any natural, synthetic, or semisynthetic "narcotic drug" as defined by 54 subdivision twenty-two of such section that has agonist, partial agon-S. 1509--B 85 1 ist, or agonist/antagonist morphine-like activities or effects similar 2 to natural opium alkaloids, and any derivative, congener, or combination 3 thereof listed in schedules II-V of section thirty-three hundred six of 4 the public health law. The term "opioid" shall not mean buprenorphine, 5 methadone, or morphine. 6 (b) "Unit" shall mean a single finished dosage form of an opioid, such 7 as a pill, tablet, capsule, suppository, transdermal patch, buccal film, 8 milliliter of liquid, milligram of topical preparation, or any other 9 form. 10 (c) "Strength per unit" shall mean the amount of opioid in a unit, as 11 measured by weight, volume, concentration or other metric. 12 (d) "Morphine milligram equivalent conversion factor" shall mean that 13 reference standard of a particular opioid as it relates in potency to 14 morphine as determined by the commissioner of health. 15 (e) "Morphine milligram equivalent" shall mean a unit multiplied by 16 its strength per unit multiplied by the morphine milligram equivalent 17 conversion factor. 18 (f) "Registrant" shall mean any person, firm, corporation or associ- 19 ation required to be registered with the education department as a 20 wholesaler, manufacturer, or outsourcing facility pursuant to section 21 sixty-eight hundred eight or section sixty-eight hundred eight-b of the 22 education law, as well as any person, firm, corporation or association 23 that would be required to be registered with the education department as 24 a wholesaler, manufacturer, or outsourcing facility pursuant to such 25 section sixty-eight hundred eight-b but for the exception in subdivision 26 two of such section; and any person, firm, corporation or association 27 required to be registered with the health department as a manufacturer 28 or distributor of a controlled substance pursuant to section thirty- 29 three hundred ten of the public health law. 30 (g) "Wholesale acquisition cost" shall mean the manufacturer's list 31 price for an opioid unit to wholesalers or direct purchasers in the 32 United States, not including prompt pay or other discounts, rebates or 33 reductions in price, for the most recent month for which the information 34 is available, as reported in wholesale price guides or other publica- 35 tions of drug or biological pricing data. 36 (h) "Sale" shall mean any transfer of title to an opioid for a consid- 37 eration where actual or constructive possession of such opioid is trans- 38 ferred to the purchaser or its designee in this state. A sale shall not 39 include the dispensing of an opioid pursuant to a prescription to an 40 ultimate consumer. 41 § 498. Imposition of excise tax. (a) There is hereby imposed an excise 42 tax on the first sale of any opioid in the state at the following rates: 43 (1) a quarter of a cent per morphine milligram equivalent where the 44 wholesale acquisition cost is less than fifty cents, or (2) one and 45 one-half cents per morphine milligram equivalent where the wholesale 46 acquisition cost is fifty cents or more. The tax imposed by this article 47 shall be charged against and paid by the registrant making such first 48 sale, and shall accrue at the time of such sale. The economic incidence 49 of the tax imposed by this article may be passed to a purchaser. For the 50 purpose of the proper administration of this article and to prevent 51 evasion of the tax hereby imposed, it shall be presumed that any sale of 52 an opioid in this state by a registrant is the first sale of such in the 53 state until the contrary is established, and the burden of proving that 54 any sale is not the first sale in the state shall be upon the regis- 55 trant.S. 1509--B 86 1 (b) Every registrant liable for the tax imposed by this article shall 2 file with the commissioner a return on forms to be prescribed by the 3 commissioner showing the total morphine milligram equivalent and whole- 4 sale acquisition costs of such opioids that are subject to the tax 5 imposed by this article, the amount of tax due thereon, and such further 6 information as the commissioner may require. Such returns shall be filed 7 for quarterly periods ending on the last day of March, June, September 8 and December of each year. Each return shall be filed within twenty days 9 after the end of such quarterly period and shall cover all opioid sales 10 in the state made in the prior quarter, except that the first return 11 required to be filed pursuant to this section shall be due on January 12 twentieth, two thousand twenty, and shall cover all opioid sales occur- 13 ring in the period between the effective date of this article and Decem- 14 ber thirty-first, two thousand nineteen. Every registrant required to 15 file a return under this section shall, at the time of filing such 16 return, pay to the commissioner the total amount of tax due for the 17 period covered by such return. If a return is not filed when due, the 18 tax shall be due the day on which the return is required to be filed. 19 The commissioner may require that the returns and payments required by 20 this section be filed or paid electronically. 21 (c) Where a sale of an opioid by a registrant has been cancelled by 22 the purchaser and tax under this article has previously been paid by the 23 registrant, the commissioner shall allow a credit or refund of such tax 24 on a return for a later period within the limitations period for claim- 25 ing a credit or refund as prescribed by section one thousand eighty-sev- 26 en of this chapter. 27 (d) All sales slips, invoices, receipts, or other statements or memo- 28 randa of sale from any sale or purchase of opioids by registrants must 29 be retained for a period of six years after the due date of the return 30 to which they relate, unless the commissioner provides for a different 31 retention period by rule or regulation. Such records must be sufficient 32 to determine the number of units transferred along with the morphine 33 milligram equivalent of the units transferred, and otherwise be suitable 34 to determine the correct amount of tax due. Such records must also 35 record either (1) the address from which the units are shipped or deliv- 36 ered, along with the address to which the units are shipped or deliv- 37 ered, or (2) the place at which actual physical possession of the units 38 is transferred. Such records shall be produced upon demand by the 39 commissioner. 40 (e) The provisions of article twenty-seven of this chapter shall apply 41 to the tax imposed by this article in the same manner and with the same 42 force and effect as if the language of such article had been incorpo- 43 rated in full into this article and had expressly referred to the tax 44 imposed by this article, except to the extent that any provision of such 45 article twenty-seven is either inconsistent with a provision of this 46 article or is not relevant to this article. 47 (f) The commissioners of education and health shall cooperate with the 48 commissioner in administering this tax, including sharing with the 49 commissioner pertinent information about registrants upon the request of 50 the commissioner. 51 (g) Each registrant shall provide a report to the department of health 52 detailing all opioids sold by such registrant in the state of New York. 53 Such report shall include: 54 (i) the registrant's name, address, phone number, federal Drug 55 Enforcement Agency (DEA) registration number, education departmentS. 1509--B 87 1 registration number, and controlled substance license number issued by 2 the department of health, if applicable; 3 (ii) the name, address and DEA registration number of the entity to 4 whom the opioid was sold; 5 (iii) the date of the sale of the opioid; 6 (iv) the gross receipt total, in dollars, for each opioid sold; 7 (v) the name and National Drug Code of the opioid sold; 8 (vi) the number of containers and the strength and metric quantity of 9 controlled substance in each container of the opioid sold; 10 (vii) the total number of morphine milligram equivalents sold; and 11 (viii) any other elements as deemed necessary by the commissioner of 12 health. 13 Such information shall be reported annually in such form as defined by 14 the commissioner of health and shall not be subject to the provisions of 15 section four hundred ninety-nine of this article. 16 § 499. Returns to be secret. (a) Except in accordance with a proper 17 judicial order or as otherwise provided for by law, it shall be unlawful 18 for the commissioner, any officer or employee of the department, or any 19 person engaged or retained by such department on an independent contract 20 basis or any other person who in any manner may acquire knowledge of the 21 contents of a return or report filed pursuant to this article to divulge 22 or make known in any manner the contents or any other information 23 relating to the business of a registrant contained in any return or 24 report required under this article. The officers charged with the 25 custody of such returns or reports shall not be required to produce any 26 of them or evidence of anything contained in them in any action or 27 proceeding in any court, except on behalf of the state, the state 28 department of health, the state department of education or the commis- 29 sioner in an action or proceeding under the provisions of this chapter 30 or on behalf of the state or the commissioner in any other action or 31 proceeding involving the collection of a tax due under this chapter to 32 which the state or the commissioner is a party or a claimant or on 33 behalf of any party to any action or proceeding under the provisions of 34 this article, when the returns or the reports or the facts shown thereby 35 are directly involved in such action or proceeding, in any of which 36 events the court may require the production of, and may admit in 37 evidence so much of said returns or reports or of the facts shown there- 38 by as are pertinent to the action or proceeding and no more. Nothing 39 herein shall be construed to prohibit the commissioner, in his or her 40 discretion, from allowing the inspection or delivery of a certified copy 41 of any return or report filed under this article, or from providing any 42 information contained in any such return or report, by or to a duly 43 authorized officer or employee of the state department of health or the 44 state department of education; nor to prohibit the inspection or deliv- 45 ery of a certified copy of any return or report filed under this arti- 46 cle, or the provision of any information contained therein, by or to the 47 attorney general or other legal representatives of the state when an 48 action shall have been recommended or commenced pursuant to this chap- 49 ter in which such returns or reports or the facts shown thereby are 50 directly involved; nor to prohibit the commissioner from providing or 51 certifying to the division of budget or the comptroller the total number 52 of returns or reports filed under this article in any reporting period 53 and the total collections received therefrom; nor to prohibit the 54 inspection of the returns or reports required under this article by the 55 comptroller or duly designated officer or employee of the state depart- 56 ment of audit and control, for purposes of the audit of a refund of anyS. 1509--B 88 1 tax paid by a registrant or other person under this article; nor to 2 prohibit the delivery to a registrant, or a duly authorized represen- 3 tative of such registrant, a certified copy of any return or report 4 filed by such registrant pursuant to this article, nor to prohibit the 5 publication of statistics so classified as to prevent the identification 6 of particular returns or reports and the items thereof. 7 (b)(1) Any officer or employee of the state who willfully violates the 8 provisions of subdivision (a) of this section shall be dismissed from 9 office and be incapable of holding any public office in this state for a 10 period of five years thereafter. 11 (2) Cross-reference: For criminal penalties, see article thirty-seven 12 of this chapter. 13 § 2. Section 1825 of the tax law, as amended by section 3 of part NNN 14 of chapter 59 of the laws of 2018, is amended to read as follows: 15 § 1825. Violation of secrecy provisions of the tax law.--Any person 16 who violates the secrecy provisions of [subdivision (b) of section twen-17ty-one, subdivision one of section two hundred two, subdivision eight of18section two hundred eleven, subdivision (a) of section three hundred19fourteen, subdivision one or two of section four hundred thirty-seven,20section four hundred eighty-seven, subdivision one or two of section21five hundred fourteen, subsection (e) of section six hundred ninety-sev-22en, subsection (a) of section nine hundred ninety-four, subdivision (a)23of section eleven hundred forty-six, section twelve hundred eighty-sev-24en, section twelve hundred ninety-six, section twelve hundred ninety-25nine-F, subdivision (a) of section fourteen hundred eighteen, subdivi-26sion (a) of section fifteen hundred eighteen, subdivision (a) of section27fifteen hundred fifty-five of] this chapter[, and] or subdivision (e) of 28 section 11-1797 of the administrative code of the city of New York shall 29 be guilty of a misdemeanor. 30 § 3. Subdivision 1 of section 171-a of the tax law, as amended by 31 section 3 of part MM of chapter 59 of the laws of 2018, is amended to 32 read as follows: 33 1. All taxes, interest, penalties and fees collected or received by 34 the commissioner or the commissioner's duly authorized agent under arti- 35 cles nine (except section one hundred eighty-two-a thereof and except as 36 otherwise provided in section two hundred five thereof), nine-A, 37 twelve-A (except as otherwise provided in section two hundred eighty- 38 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 39 section three hundred twelve thereof), eighteen, nineteen, twenty 40 (except as otherwise provided in section four hundred eighty-two there- 41 of), twenty-B, twenty-D, twenty-one, twenty-two, twenty-four, twenty- 42 six, twenty-eight (except as otherwise provided in section eleven 43 hundred two or eleven hundred three thereof), twenty-eight-A, twenty- 44 nine-B, thirty-one (except as otherwise provided in section fourteen 45 hundred twenty-one thereof), thirty-three and thirty-three-A of this 46 chapter shall be deposited daily in one account with such responsible 47 banks, banking houses or trust companies as may be designated by the 48 comptroller, to the credit of the comptroller. Such an account may be 49 established in one or more of such depositories. Such deposits shall be 50 kept separate and apart from all other money in the possession of the 51 comptroller. The comptroller shall require adequate security from all 52 such depositories. Of the total revenue collected or received under such 53 articles of this chapter, the comptroller shall retain in the comp- 54 troller's hands such amount as the commissioner may determine to be 55 necessary for refunds or reimbursements under such articles of this 56 chapter out of which amount the comptroller shall pay any refunds orS. 1509--B 89 1 reimbursements to which taxpayers shall be entitled under the provisions 2 of such articles of this chapter. The commissioner and the comptroller 3 shall maintain a system of accounts showing the amount of revenue 4 collected or received from each of the taxes imposed by such articles. 5 The comptroller, after reserving the amount to pay such refunds or 6 reimbursements, shall, on or before the tenth day of each month, pay 7 into the state treasury to the credit of the general fund all revenue 8 deposited under this section during the preceding calendar month and 9 remaining to the comptroller's credit on the last day of such preceding 10 month, (i) except that the comptroller shall pay to the state department 11 of social services that amount of overpayments of tax imposed by article 12 twenty-two of this chapter and the interest on such amount which is 13 certified to the comptroller by the commissioner as the amount to be 14 credited against past-due support pursuant to subdivision six of section 15 one hundred seventy-one-c of this article, (ii) and except that the 16 comptroller shall pay to the New York state higher education services 17 corporation and the state university of New York or the city university 18 of New York respectively that amount of overpayments of tax imposed by 19 article twenty-two of this chapter and the interest on such amount which 20 is certified to the comptroller by the commissioner as the amount to be 21 credited against the amount of defaults in repayment of guaranteed 22 student loans and state university loans or city university loans pursu- 23 ant to subdivision five of section one hundred seventy-one-d and subdi- 24 vision six of section one hundred seventy-one-e of this article, (iii) 25 and except further that, notwithstanding any law, the comptroller shall 26 credit to the revenue arrearage account, pursuant to section 27 ninety-one-a of the state finance law, that amount of overpayment of tax 28 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 29 or thirty-three of this chapter, and any interest thereon, which is 30 certified to the comptroller by the commissioner as the amount to be 31 credited against a past-due legally enforceable debt owed to a state 32 agency pursuant to paragraph (a) of subdivision six of section one 33 hundred seventy-one-f of this article, provided, however, he shall cred- 34 it to the special offset fiduciary account, pursuant to section ninety- 35 one-c of the state finance law, any such amount creditable as a liabil- 36 ity as set forth in paragraph (b) of subdivision six of section one 37 hundred seventy-one-f of this article, (iv) and except further that the 38 comptroller shall pay to the city of New York that amount of overpayment 39 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 40 thirty-B or thirty-three of this chapter and any interest thereon that 41 is certified to the comptroller by the commissioner as the amount to be 42 credited against city of New York tax warrant judgment debt pursuant to 43 section one hundred seventy-one-l of this article, (v) and except 44 further that the comptroller shall pay to a non-obligated spouse that 45 amount of overpayment of tax imposed by article twenty-two of this chap- 46 ter and the interest on such amount which has been credited pursuant to 47 section one hundred seventy-one-c, one hundred seventy-one-d, one 48 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 49 ty-one-l of this article and which is certified to the comptroller by 50 the commissioner as the amount due such non-obligated spouse pursuant to 51 paragraph six of subsection (b) of section six hundred fifty-one of this 52 chapter; and (vi) the comptroller shall deduct a like amount which the 53 comptroller shall pay into the treasury to the credit of the general 54 fund from amounts subsequently payable to the department of social 55 services, the state university of New York, the city university of New 56 York, or the higher education services corporation, or the revenueS. 1509--B 90 1 arrearage account or special offset fiduciary account pursuant to 2 section ninety-one-a or ninety-one-c of the state finance law, as the 3 case may be, whichever had been credited the amount originally withheld 4 from such overpayment, and (vii) with respect to amounts originally 5 withheld from such overpayment pursuant to section one hundred seventy- 6 one-l of this article and paid to the city of New York, the comptroller 7 shall collect a like amount from the city of New York. 8 § 4. Subdivision 1 of section 171-a of the tax law, as amended by 9 section 4 of part MM of chapter 59 of the laws of 2018, is amended to 10 read as follows: 11 1. All taxes, interest, penalties and fees collected or received by 12 the commissioner or the commissioner's duly authorized agent under arti- 13 cles nine (except section one hundred eighty-two-a thereof and except as 14 otherwise provided in section two hundred five thereof), nine-A, 15 twelve-A (except as otherwise provided in section two hundred eighty- 16 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 17 section three hundred twelve thereof), eighteen, nineteen, twenty 18 (except as otherwise provided in section four hundred eighty-two there- 19 of), twenty-D, twenty-one, twenty-two, twenty-four, twenty-six, twenty- 20 eight (except as otherwise provided in section eleven hundred two or 21 eleven hundred three thereof), twenty-eight-A, twenty-nine-B, thirty-one 22 (except as otherwise provided in section fourteen hundred twenty-one 23 thereof), thirty-three and thirty-three-A of this chapter shall be 24 deposited daily in one account with such responsible banks, banking 25 houses or trust companies as may be designated by the comptroller, to 26 the credit of the comptroller. Such an account may be established in one 27 or more of such depositories. Such deposits shall be kept separate and 28 apart from all other money in the possession of the comptroller. The 29 comptroller shall require adequate security from all such depositories. 30 Of the total revenue collected or received under such articles of this 31 chapter, the comptroller shall retain in the comptroller's hands such 32 amount as the commissioner may determine to be necessary for refunds or 33 reimbursements under such articles of this chapter out of which amount 34 the comptroller shall pay any refunds or reimbursements to which taxpay- 35 ers shall be entitled under the provisions of such articles of this 36 chapter. The commissioner and the comptroller shall maintain a system of 37 accounts showing the amount of revenue collected or received from each 38 of the taxes imposed by such articles. The comptroller, after reserving 39 the amount to pay such refunds or reimbursements, shall, on or before 40 the tenth day of each month, pay into the state treasury to the credit 41 of the general fund all revenue deposited under this section during the 42 preceding calendar month and remaining to the comptroller's credit on 43 the last day of such preceding month, (i) except that the comptroller 44 shall pay to the state department of social services that amount of 45 overpayments of tax imposed by article twenty-two of this chapter and 46 the interest on such amount which is certified to the comptroller by the 47 commissioner as the amount to be credited against past-due support 48 pursuant to subdivision six of section one hundred seventy-one-c of this 49 article, (ii) and except that the comptroller shall pay to the New York 50 state higher education services corporation and the state university of 51 New York or the city university of New York respectively that amount of 52 overpayments of tax imposed by article twenty-two of this chapter and 53 the interest on such amount which is certified to the comptroller by the 54 commissioner as the amount to be credited against the amount of defaults 55 in repayment of guaranteed student loans and state university loans or 56 city university loans pursuant to subdivision five of section oneS. 1509--B 91 1 hundred seventy-one-d and subdivision six of section one hundred seven- 2 ty-one-e of this article, (iii) and except further that, notwithstanding 3 any law, the comptroller shall credit to the revenue arrearage account, 4 pursuant to section ninety-one-a of the state finance law, that amount 5 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 6 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 7 thereon, which is certified to the comptroller by the commissioner as 8 the amount to be credited against a past-due legally enforceable debt 9 owed to a state agency pursuant to paragraph (a) of subdivision six of 10 section one hundred seventy-one-f of this article, provided, however, he 11 shall credit to the special offset fiduciary account, pursuant to 12 section ninety-one-c of the state finance law, any such amount credita- 13 ble as a liability as set forth in paragraph (b) of subdivision six of 14 section one hundred seventy-one-f of this article, (iv) and except 15 further that the comptroller shall pay to the city of New York that 16 amount of overpayment of tax imposed by article nine, nine-A, twenty- 17 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 18 interest thereon that is certified to the comptroller by the commission- 19 er as the amount to be credited against city of New York tax warrant 20 judgment debt pursuant to section one hundred seventy-one-l of this 21 article, (v) and except further that the comptroller shall pay to a 22 non-obligated spouse that amount of overpayment of tax imposed by arti- 23 cle twenty-two of this chapter and the interest on such amount which has 24 been credited pursuant to section one hundred seventy-one-c, one hundred 25 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 26 one hundred seventy-one-l of this article and which is certified to the 27 comptroller by the commissioner as the amount due such non-obligated 28 spouse pursuant to paragraph six of subsection (b) of section six 29 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 30 a like amount which the comptroller shall pay into the treasury to the 31 credit of the general fund from amounts subsequently payable to the 32 department of social services, the state university of New York, the 33 city university of New York, or the higher education services corpo- 34 ration, or the revenue arrearage account or special offset fiduciary 35 account pursuant to section ninety-one-a or ninety-one-c of the state 36 finance law, as the case may be, whichever had been credited the amount 37 originally withheld from such overpayment, and (vii) with respect to 38 amounts originally withheld from such overpayment pursuant to section 39 one hundred seventy-one-l of this article and paid to the city of New 40 York, the comptroller shall collect a like amount from the city of New 41 York. 42 § 5. This act shall take effect July 1, 2019; provided, however, that 43 the amendments to subdivision 1 of section 171-a of the tax law made by 44 section three of this act shall not affect the expiration of such subdi- 45 vision and shall expire therewith, when upon such date the provisions of 46 section four of this act shall take effect. 47 PART YY 48 Intentionally omitted 49 PART ZZ 50 Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- 51 ing law, as added by chapter 174 of the laws of 2013, is amended to read 52 as follows:S. 1509--B 92 1 § 1367. Sports wagering. 1. As used in this section: 2 (a) "Agent" means an entity that is party to a contract with a casino 3 authorized to operate a sports pool and is approved by the commission to 4 operate a sports pool on behalf of such casino; 5 (b) "Authorized sports bettor" means an individual who is physically 6 present in this state when placing a sports wager, who is not a prohib- 7 ited sports bettor, that participates in sports wagering offered by a 8 casino. The intermediate routing of electronic data in connection with 9 mobile sports wagering shall not determine the location or locations in 10 which a wager is initiated, received or otherwise made; 11 (c) "Brand" means the name and logo on the interface of a mobile 12 application or internet website accessed via a mobile device or computer 13 which authorized sports bettors use to access a sports betting platform; 14 (d) "Casino" means a licensed gaming facility at which gambling is 15 conducted pursuant to the provisions of this article; 16 [(b)] (e) "Commission" means the commission established pursuant to 17 section one hundred two of this chapter; 18 [(c)] (f) "Collegiate sport or athletic event" means a sport or 19 athletic event offered or sponsored by or played in connection with a 20 public or private institution that offers educational services beyond 21 the secondary level; 22 (g) "Exchange wagering" means a form of wagering in which an author- 23 ized sports bettor, on the one hand, and one or more authorized sports 24 bettors, a casino or an agent or an operator, on the other hand place 25 identically opposing sports wagers on an exchange operated by a casino 26 or an agent or an operator; 27 (h) "Global risk management" means the direction, management, consul- 28 tation and/or instruction for purposes of managing risks associated with 29 sports wagering conducted pursuant to this section and includes the 30 setting and adjustment of betting lines, point spreads, or odds and 31 whether to place layoff bets as permitted by this section; 32 [(d)] (i) "High school sport or athletic event" means a sport or 33 athletic event offered or sponsored by or played in connection with a 34 public or private institution that offers education services at the 35 secondary level; 36 (j) "In-play sports wager" means a sports wager placed on a sports 37 event after the sports event has begun and before it ends; 38 (k) "Layoff bet" means a sports wager placed by a casino sports pool 39 with another casino sports pool; 40 (l) "Minor" means any person under the age of twenty-one years; 41 (m) "Mobile sports wagering platform" or "platform" means the combina- 42 tion of hardware, software, and data networks used to manage, adminis- 43 ter, or control sports wagering and any associated wagers accessible by 44 any electronic means including mobile applications and internet websites 45 accessed via a mobile device or computer; 46 (n) "Operator" means a casino which has elected to operate a sports 47 pool or the agent of such casino; 48 [(e)] (o) "Professional sport or athletic event" means an event at 49 which two or more persons participate in sports or athletic events and 50 receive compensation in excess of actual expenses for their partic- 51 ipation in such event; 52 (p) "Prohibited sports bettor" means: 53 (i) any officer or employee of the commission; 54 (ii) any principal or key employee of a casino or operator, except as 55 may be permitted by the commission for good cause shown;S. 1509--B 93 1 (iii) any casino gaming or non-gaming employee at the casino that 2 employs such person and at any operator that has an agreement with that 3 casino; 4 (iv) any contractor, subcontractor, or consultant, or officer or 5 employee of a contractor, subcontractor, or consultant, of a casino if 6 such person is directly involved in the operation or observation of 7 sports wagering, or the processing of sports wagering claims or 8 payments; 9 (v) Any person subject to a contract with the commission if such 10 contract contains a provision prohibiting such person from participating 11 in sports wagering; 12 (vi) Any spouse, child, brother, sister or parent residing as a member 13 of the same household in the principal place of abode of any of the 14 foregoing persons at the same casino where the foregoing person is 15 prohibited from participating in sports wagering; 16 (vii) any individual with access to non-public confidential informa- 17 tion about sports wagering; 18 (viii) any amateur or professional athlete if the sports wager is 19 based on any sport or athletic event overseen by the athlete's sports 20 governing body; 21 (ix) any sports agent, owner or employee of a team, player and umpire 22 union personnel, and employee referee, coach or official of a sports 23 governing body, if the sports wager is based on any sport or athletic 24 event overseen by the individual's sports governing body; 25 (x) any individual placing a wager as an agent or proxy for an other- 26 wise prohibited sports bettor; or 27 (xi) any minor; 28 [(f)] (q) "Prohibited sports event" means any collegiate sport or 29 athletic event that takes place in New York or a sport or athletic event 30 in which any New York college team participates regardless of where the 31 event takes place, or high school sport or athletic event; 32 [(g)] (r) "Registered sports governing body" means a sports governing 33 body that is headquartered in the United States and who has registered 34 with the commission to receive royalty fee revenue in such form as the 35 commission may require; 36 (s) "Sports event" means any professional sport or athletic event and 37 any collegiate sport or athletic event, except a prohibited sports event 38 or a horse racing event; 39 [(h)] (t) "Sports governing body" means the organization that 40 prescribes final rules and enforces codes of conduct with respect to a 41 sporting event and participants therein; 42 (u) "Sports pool" means the business of accepting wagers on any sports 43 event by any system or method of wagering; [and44(i)] (v) "Sports wager" means cash or cash equivalent that is paid by 45 an authorized sports bettor to a casino to participate in sports wager- 46 ing offered by such casino; 47 (w) "Sports wagering" means wagering on sporting events or any portion 48 thereof, or on the individual performance statistics of athletes partic- 49 ipating in a sporting event, or combination of sporting events, by any 50 system or method of wagering, including, but not limited to, in-person 51 communication and electronic communication through internet websites 52 accessed via a mobile device or computer and mobile device applications. 53 Any wager through electronic communication is deemed made at the phys- 54 ical location of the server or other equipment used by an operator to 55 accept mobile sports wagering. The term "sports wagering" shall 56 include, but is not limited to, single-game bets, teaser bets, parlays,S. 1509--B 94 1 over-under bets, moneyline, pools, exchange wagering, in-game wagering, 2 in-play bets, proposition bets and straight bets; 3 (x) "Sports wagering gross revenue" means: (i) the amount equal to the 4 total of all sports wagers not attributable to prohibited sports events 5 that an operator collects from all players, less the total of all sums 6 not attributable to prohibited sports events paid out as winnings to all 7 sports bettors, however, that the total of all sums paid out as winnings 8 to sports bettors shall not include the cash equivalent value of any 9 merchandise or thing of value awarded as a prize, or (ii) in the case of 10 exchange wagering pursuant to this section, the commission on winning 11 sports wagers by authorized sports bettors retained by the operator. The 12 issuance to or wagering by authorized sports bettors at a casino of any 13 promotional gaming credit shall not be taxable for the purposes of 14 determining sports wagering gross revenue; 15 (y) "Sports wagering lounge" means an area wherein a sports pool is 16 operated. 17 2. [No gaming facility may conduct sports wagering until such time as18there has been a change in federal law authorizing such or upon a ruling19of a court of competent jurisdiction that such activity is lawful.203.] (a) In addition to authorized gaming activities, a [licensed21gaming facility] casino may when authorized by subdivision two of this 22 section operate a sports pool upon the approval of the commission and in 23 accordance with the provisions of this section and applicable regu- 24 lations promulgated pursuant to this article. The commission shall hear 25 and decide promptly and in reasonable order all applications for a 26 license to operate a sports pool, shall have the general responsibility 27 for the implementation of this section and shall have all other duties 28 specified in this section with regard to the operation of a sports pool. 29 The license to operate a sports pool shall be in addition to any other 30 license required to be issued to operate a [gaming facility] casino. No 31 license to operate a sports pool shall be issued by the commission to 32 any entity unless it has established its financial stability, integrity 33 and responsibility and its good character, honesty and integrity. 34 No later than five years after the date of the issuance of a license 35 and every five years thereafter or within such lesser periods as the 36 commission may direct, a licensee shall submit to the commission such 37 documentation or information as the commission may by regulation 38 require, to demonstrate to the satisfaction of the executive director of 39 the commission that the licensee continues to meet the requirements of 40 the law and regulations. 41 (b) As a condition of licensure the commission shall require that each 42 licensee authorized to conduct sports wagering pay a one-time fee of 43 fifteen million dollars. Such fee shall be paid within thirty days of 44 gaming commission approval prior to license issuance and deposited into 45 the commercial gaming revenue fund established pursuant to section thir- 46 teen hundred fifty-two of this article. 47 (c) A sports pool shall be operated in a sports wagering lounge 48 located at a casino. The lounge shall conform to all requirements 49 concerning square footage, design, equipment, security measures and 50 related matters which the commission shall by regulation prescribe. 51 [(c)] (d) The operator of a sports pool shall establish or display the 52 odds at which wagers may be placed on sports events. 53 [(d)] (e) An operator shall accept wagers on sports events only from 54 persons physically present in the sports wagering lounge, or through 55 mobile sports wagering offered pursuant to section thirteen hundredS. 1509--B 95 1 sixty-seven-a of this title. A person placing a wager shall be at least 2 twenty-one years of age. 3 [(e)] (f) An operator may also accept layoff bets as long as the 4 authorized sports pool places such wagers with another authorized sports 5 pool or pools in accordance with regulations of the commission. A sports 6 pool that places a layoff bet shall inform the sports pool accepting the 7 wager that the wager is being placed by a sports pool and shall disclose 8 its identity. 9 (g) An operator may utilize global risk management pursuant to the 10 approval of the commission. 11 (h) An operator shall not admit into the sports wagering lounge, or 12 accept wagers from, any person whose name appears on the exclusion list. 13 [(f)] (i) The holder of a license to operate a sports pool may 14 contract with [an entity] an agent to conduct any or all aspects of that 15 operation, or the operation of mobile sports wagering offered pursuant 16 to section thirteen hundred sixty-seven-a of this title, including but 17 not limited to brand, marketing and customer service, in accordance with 18 the regulations of the commission. [That entity] Each agent shall obtain 19 a license as a casino vendor enterprise prior to the execution of any 20 such contract, and such license shall be issued pursuant to the 21 provisions of section one thousand three hundred twenty-seven of this 22 article and in accordance with the regulations promulgated by the 23 commission. 24 [(g)] (j) If any provision of this article or its application to any 25 person or circumstance is held invalid, the invalidity shall not affect 26 other provisions or applications of this article which can be given 27 effect without the invalid provision or application, and to this end the 28 provisions of this article are severable. 29 [4.] 3. (a) All persons employed directly in wagering-related activ- 30 ities conducted within a sports wagering lounge shall be licensed as a 31 casino key employee or registered as a gaming employee, as determined by 32 the commission. All other employees who are working in the sports wager- 33 ing lounge may be required to be registered, if appropriate, in accord- 34 ance with regulations of the commission. 35 (b) Each operator of a sports pool shall designate one or more casino 36 key employees who shall be responsible for the operation of the sports 37 pool. At least one such casino key employee shall be on the premises 38 whenever sports wagering is conducted. 39 [5.] 4. Except as otherwise provided by this article, the commission 40 shall have the authority to regulate sports pools and the conduct of 41 sports wagering under this article to the same extent that the commis- 42 sion regulates other gaming. No casino shall be authorized to operate a 43 sports pool unless it has produced information, documentation, and 44 assurances concerning its financial background and resources, including 45 cash reserves, that are sufficient to demonstrate that it has the finan- 46 cial stability, integrity, and responsibility to operate a sports pool. 47 In developing rules and regulations applicable to sports wagering, the 48 commission shall examine the regulations implemented in other states 49 where sports wagering is conducted and shall, as far as practicable, 50 adopt a similar regulatory framework. The commission shall promulgate 51 regulations necessary to carry out the provisions of this section, 52 including, but not limited to, regulations governing the: 53 (a) amount of cash reserves to be maintained by operators to cover 54 winning wagers; 55 (b) acceptance of wagers on a series of sports events;S. 1509--B 96 1 (c) maximum wagers which may be accepted by an operator from any one 2 patron on any one sports event; 3 (d) type of wagering tickets which may be used; 4 (e) method of issuing tickets; 5 (f) method of accounting to be used by operators; 6 (g) types of records which shall be kept; 7 (h) use of credit and checks by patrons; 8 (i) the process by which a casino may place a layoff bet; 9 (j) the use of global risk management; 10 (k) type of system for wagering; and 11 [(j)] (l) protections for a person placing a wager. 12 [6.] 5. Each operator shall adopt comprehensive house rules governing 13 sports wagering transactions with its [patrons] authorized sports 14 bettors. The rules shall specify the amounts to be paid on winning 15 wagers and the effect of schedule changes. The house rules, together 16 with any other information the commission deems appropriate, shall be 17 conspicuously displayed in the sports wagering lounge and included in 18 the terms and conditions of the account wagering system, and copies 19 shall be made readily available to patrons. 20 6. (a) Each casino that offers sports wagering shall annually submit a 21 report to the commission no later than the twenty-eighth of February of 22 each year, which shall include the following information: 23 (i) the total amount of sports wagers received from authorized sports 24 bettors; 25 (ii) the total amount of prizes awarded to authorized sports bettors; 26 (iii) the total amount of sports wagering gross revenue received by 27 the casino; 28 (iv) the total amount contributed in sports betting royalty revenue 29 pursuant to subdivision eight of this section; 30 (v) the total amount of wagers received on each sports governing 31 body's sporting events; 32 (vi) the number of accounts held by authorized sports bettors; 33 (vii) the total number of new accounts established in the preceding 34 year, as well as the total number of accounts permanently closed in the 35 preceding year; 36 (viii) the total number of authorized sports bettors that requested to 37 exclude themselves from sports wagering; and 38 (ix) any additional information that the commission deems necessary to 39 carry out the provisions of this article. 40 (b) Upon the submission of such annual report, to such extent that the 41 commission deems it to be in the public interest, the commission shall 42 be authorized to conduct a financial audit of any casino, at any time, 43 to ensure compliance with this article. 44 (c) The commission shall annually publish a report based on the aggre- 45 gate information provided by all casinos pursuant to paragraph (a) of 46 this subdivision, which shall be published on the commission's website 47 no later than one hundred eighty days after the deadline for the 48 submission of individual reports as specified in such paragraph (a). 49 7. (a) Within thirty days of the end of each calendar quarter, a casi- 50 no offering sports wagering shall remit to the commission a sports 51 wagering royalty fee of one-fifth (.20) of one percent of the amount 52 wagered on sports events conducted by registered sports governing 53 bodies. The fee shall be remitted on a form as the commission may 54 require, on which the casino shall identify the percentage of wagering 55 during the reporting period attributable to each registered sport 56 governing body's sports events.S. 1509--B 97 1 (b) No later than the thirtieth of April of each year, a registered 2 sports governing body may submit a claim for disbursement of the royalty 3 fee funds remitted by casinos in the previous calendar year on their 4 respective sports events. Within thirty days of submitting its claim 5 for disbursement, the registered sports governing body shall meet with 6 the commission to provide the commission with evidence of policies, 7 procedures and training programs it has implemented to protect the 8 integrity of its sports events. 9 (c) Within thirty days of its meeting with the registered sports 10 governing body, the commission shall approve a timely claim for 11 disbursement. 12 8. For the privilege of conducting sports wagering in the state, casi- 13 nos shall pay a tax equivalent to eight and one-half percent of their 14 sports wagering gross revenue. 15 9. The commission shall pay into the commercial gaming revenue fund 16 established pursuant to section ninety-seven-nnnn of the state finance 17 law eighty-five percent of the state tax imposed by this section; any 18 interest and penalties imposed by the commission relating to those 19 taxes; all penalties levied and collected by the commission; and the 20 appropriate funds, cash or prizes forfeited from sports wagering. The 21 commission shall pay into the commercial gaming fund five percent of the 22 state tax imposed by this section to be distributed for problem gambling 23 education and treatment purposes pursuant to paragraph a of subdivision 24 four of section ninety-seven-nnnn of the state finance law. The commis- 25 sion shall pay into the commercial gaming fund five percent of the state 26 tax imposed by this section to be distributed for the cost of regulation 27 pursuant to paragraph c of subdivision four of section ninety-seven-nnnn 28 of the state finance law. The commission shall pay into the commercial 29 gaming fund five percent of the state tax imposed by this section to be 30 distributed in the same formula as market origin credits pursuant to 31 section one hundred fifteen-b of this chapter. The commission shall 32 require at least monthly deposits by the casino of any payments pursuant 33 to subdivision eight of this section, at such times, under such condi- 34 tions, and in such depositories as shall be prescribed by the state 35 comptroller. The deposits shall be deposited to the credit of the state 36 commercial gaming revenue fund. The commission shall require a monthly 37 report and reconciliation statement to be filed with it on or before the 38 tenth day of each month, with respect to gross revenues and deposits 39 received and made, respectively, during the preceding month. 40 10. The commission may perform audits of the books and records of a 41 casino, at such times and intervals as it deems appropriate, for the 42 purpose of determining the sufficiency of tax payments. If a return 43 required with regard to obligations imposed is not filed, or if a return 44 when filed or is determined by the commission to be incorrect or insuf- 45 ficient with or without an audit, the amount of tax due shall be deter- 46 mined by the commission. Notice of such determination shall be given to 47 the casino liable for the payment of the tax. Such determination shall 48 finally and irrevocably fix the tax unless the casino against whom it is 49 assessed, within thirty days after receiving notice of such determi- 50 nation, shall apply to the commission for a hearing in accordance with 51 the regulations of the commission. 52 11. Nothing in this section shall apply to interactive fantasy sports 53 offered pursuant to article fourteen of this chapter. Nothing in this 54 section authorizes any entity that conducts interactive fantasy sports 55 offered pursuant to article fourteen of this chapter to conduct sportsS. 1509--B 98 1 wagering unless it separately qualifies for, and obtains, authorization 2 pursuant to this section. 3 12. A sports governing body may notify the commission that it desires 4 to restrict, limit, or exclude wagering on its sporting events by 5 providing notice in the form and manner as the commission may require. 6 Upon receiving such notice, the commission shall review the request in 7 good faith, seek input from the casinos on such a request, and if the 8 commission deems it appropriate, promulgate regulations to restrict such 9 sports wagering. If the commission denies a request, the sports govern- 10 ing body shall be afforded notice and the right to be heard and offer 11 proof in opposition to such determination in accordance with the regu- 12 lations of the commission. Offering or taking wagers contrary to 13 restrictions promulgated by the commission is a violation of this 14 section. In the event that the request is in relation to an emergency 15 situation, the executive director of the commission may temporarily 16 prohibit the specific wager in question until the commission has the 17 opportunity to issue temporary regulations addressing the issue. 18 13. (a) The commission shall designate the division of the state 19 police to have primary responsibility for conducting, or assisting the 20 commission in conducting, investigations into abnormal betting activity, 21 match fixing, and other conduct that corrupts a betting outcome of a 22 sporting event or events for purposes of financial gain. 23 (b) Casinos shall maintain records of sports wagering operations in 24 accordance with regulations promulgated by the commission. These regu- 25 lations shall, at a minimum, require a casino to adopt procedures to 26 obtain personally identifiable information from any individual who plac- 27 es any single wager in an amount of ten thousand dollars or greater. 28 (c) The commission shall cooperate with a sports governing body and 29 casinos to ensure the timely, efficient, and accurate sharing of infor- 30 mation. 31 (d) The commission and casinos shall cooperate with investigations 32 conducted by sports governing bodies or law enforcement agencies, 33 including but not limited to providing or facilitating the provision of 34 account-level betting information and audio or video files relating to 35 persons placing wagers; provided, however, that the casino be required 36 to share any personally identifiable information of an authorized sports 37 bettor with a sports governing body only pursuant to an order to do so 38 by the commission or a law enforcement agency or court of competent 39 jurisdiction. 40 (e) Casinos shall promptly report to the commission any information 41 relating to: 42 (i) criminal or disciplinary proceedings commenced against the casino 43 in connection with its operations; 44 (ii) abnormal betting activity or patterns that may indicate a concern 45 with the integrity of a sporting event or events; 46 (iii) any potential breach of the relevant sports governing body's 47 internal rules and codes of conduct pertaining to sports wagering, as 48 they have been provided by the sports governing body to the casino; 49 (iv) any other conduct that corrupts a betting outcome of a sporting 50 event or events for purposes of financial gain, including match fixing; 51 and 52 (v) suspicious or illegal wagering activities, including use of funds 53 derived from illegal activity, wagers to conceal or launder funds 54 derived from illegal activity, using agents to place wagers, using 55 confidential non-public information, and using false identification.S. 1509--B 99 1 The commission shall also promptly report information relating to 2 conduct described in subparagraphs (ii), (iii) and (iv) of this para- 3 graph to the relevant sports governing body. 4 (f) Casinos shall maintain the confidentiality of information provided 5 by a sports governing body to the casino, unless disclosure is required 6 by this section, the commission, other law, or court order. 7 (g) The commission, by regulation, may authorize and promulgate any 8 rules necessary to implement agreements with other states, or authorized 9 agencies thereof to enable the sharing of information to facilitate 10 integrity monitoring and the conduct of investigations into abnormal 11 betting activity, match fixing, and other conduct that corrupts a 12 betting outcome of a sporting event or events for purposes of financial 13 gain. 14 (h) The commission shall study the potential for the creation of an 15 interstate database of all sports wagering information for the purpose 16 of integrity monitoring, and shall create a final report regarding all 17 findings and recommendations to be delivered upon completion of all 18 objectives described herein, but in no event later than March first, two 19 thousand twenty, to the governor, the speaker of the assembly and the 20 temporary president of the senate. 21 14. (a) Casinos shall use whatever data source they deem appropriate 22 for determining the result of sports wagering involving sports wagers. 23 (b) The commission shall promulgate regulations to allow an authorized 24 sports bettor to file a complaint alleging an underpayment or non-pay- 25 ment of a winning sports wager. Any such regulations shall provide that 26 the commission utilize the statistics, results, outcomes, and other data 27 relating to a sporting event that have been obtained from the relevant 28 sports governing body in determining the validity of such claim. 29 15. A casino shall not permit sports wagering by anyone they know, or 30 should have known, to be a prohibited sports bettor. 31 16. Sports wagering conducted pursuant to the provisions of this 32 section is hereby authorized. 33 17. The conduct of sports wagering in violation of this section is 34 prohibited. 35 18. (a) In addition to any criminal penalties provided for under arti- 36 cle two hundred twenty-five of the penal law, any person, firm, corpo- 37 ration, association, agent, or employee, who is not authorized to offer 38 sports wagering under this section or section thirteen hundred sixty- 39 seven-a of this title, and who knowingly offers or attempts to offer 40 sports wagering or mobile sports wagering in New York shall be liable 41 for a civil penalty of not more than one hundred thousand dollars for 42 each violation, not to exceed five million dollars for violations aris- 43 ing out of the same transaction or occurrence, which shall accrue to the 44 state and may be recovered in a civil action brought by the commission. 45 (b) Any person, firm, corporation, association, agent, or employee who 46 knowingly violates any procedure implemented under this section, or 47 section thirteen hundred sixty-seven-a of this title, shall be liable 48 for a civil penalty of not more than five thousand dollars for each 49 violation, not to exceed fifty thousand dollars for violations arising 50 out of the same transaction or occurrence, which shall accrue to the 51 state and may be recovered in a civil action brought by the commission. 52 § 2. The racing, pari-mutuel wagering and breeding law is amended by 53 adding a new section 1367-a to read as follows: 54 § 1367-a. Mobile sports wagering. 1. (a) Except as provided in this 55 subdivision, the terms in this section shall have the same meanings asS. 1509--B 100 1 such terms are defined in subdivision one of section thirteen hundred 2 sixty-seven of this title. 3 (b) "Operator" means an entity offering a mobile sports wagering plat- 4 form including an agent. 5 2. (a) No casino shall administer, manage, or otherwise make available 6 a mobile sports wagering platform to persons located in New York state 7 unless registered with the commission pursuant to this section. A casino 8 may use one mobile sports wagering platform and brand provided that such 9 platform and brand has been reviewed and approved by the commission. A 10 casino may contract with an independent operator to provide its mobile 11 sports wagering platform. 12 (b) Registrations issued by the commission shall remain in effect for 13 five years. The commission shall establish a process for renewal. 14 (c) The commission shall publish a list of all operators and casinos 15 registered to offer mobile sports wagering in New York state pursuant to 16 this section on the commission's website for public use. 17 (d) The commission shall promulgate regulations to implement the 18 provisions of this section, including the development of the initial 19 form of the application for registration. Such regulations shall provide 20 for the registration and operation of mobile sports wagering in New York 21 state and shall include, but not be limited to, responsible protections 22 with regard to compulsive play and safeguards for fair play. 23 3. In the event that a casino contracts with an operator to provide 24 its mobile sports wagering platform and brand, such operator shall 25 obtain a license as a casino vendor enterprise prior to the execution of 26 any such contract, and such license shall be issued pursuant to the 27 provisions of section one thousand three hundred twenty-seven of this 28 article and in accordance with the regulations promulgated by the 29 commission. 30 3-a. (a) The commission shall prescribe the initial form of the appli- 31 cation for registration, for casinos and operators, which shall require, 32 but not be limited to: 33 (i) the full name and principal address of the operator; 34 (ii) if a corporation, the name of the state in which incorporated and 35 the full names and addresses of any partner, officer, director, share- 36 holder holding ten percent or more equity, and ultimate equitable 37 owners; 38 (iii) if a business entity other than a corporation, the full names 39 and addresses of the principals, partners, shareholders holding five 40 percent or more equity, and ultimate equitable owners; 41 (iv) whether such corporation or entity files information and reports 42 with the United States Securities and Exchange Commission as required by 43 section thirteen of the Securities Exchange Act of 1934, 15 U.S.C. §§ 44 78a-78kk; or whether the securities of the corporation or entity are 45 regularly traded on an established securities market in the United 46 States; 47 (v) the type and estimated number of contests to be conducted annual- 48 ly; 49 (vi) a statement of the assets and liabilities of the operator. 50 (b) The commission may require the full names and addresses of the 51 officers and directors of any creditor of the operator, and of those 52 stockholders who hold more than ten percent of the stock of the credi- 53 tor. 54 (c) Upon receipt of an application for registration for each individ- 55 ual listed on such application as an officer or director, the commission 56 shall submit to the division of criminal justice services a set of fing-S. 1509--B 101 1 erprints, and the division of criminal justice services processing fee 2 imposed pursuant to subdivision eight-a of section eight hundred thir- 3 ty-seven of the executive law and any fee imposed by the federal bureau 4 of investigation. Upon receipt of the fingerprints, the division of 5 criminal justice services shall promptly forward a set of the individ- 6 ual's fingerprints to the federal bureau of investigation for the 7 purpose of a nationwide criminal history record check to determine 8 whether such individual has been convicted of a criminal offense in any 9 state other than New York or in a federal jurisdiction. The division of 10 criminal justice services shall promptly provide the requested criminal 11 history information to the commission. For the purposes of this section, 12 the term "criminal history information" shall mean a record of all 13 convictions of crimes and any pending criminal charges maintained on an 14 individual by the division of criminal justice services and the federal 15 bureau of investigation. All such criminal history information sent to 16 the commission pursuant to this subdivision shall be confidential and 17 shall not be published or in any way disclosed to persons other than the 18 commission, unless otherwise authorized by law. 19 (d) Upon receipt of criminal history information pursuant to paragraph 20 (c) of this subdivision, the commission shall make a determination to 21 approve or deny an application for registration; provided, however, that 22 before making a determination on such application, the commission shall 23 provide the subject of the record with a copy of such criminal history 24 information and a copy of article twenty-three-A of the correction law 25 and inform such prospective applicant seeking to be credentialed of his 26 or her right to seek correction of any incorrect information contained 27 in such criminal history information pursuant to the regulations and 28 procedures established by the division of criminal justice services. 29 The commission shall deny any application for registration, or suspend, 30 refuse to renew, or revoke any existing registration issued pursuant to 31 this article, upon the finding that the operator or registrant, or any 32 partner, officer, director, or shareholder: 33 (i) has knowingly made a false statement of material fact or has 34 deliberately failed to disclose any information required by the commis- 35 sion; 36 (ii) has had a gaming registration or license denied, suspended, or 37 revoked in any other state or country for just cause; 38 (iii) has legally defaulted in the payment of any obligation or debt 39 due to any state or political subdivision; or 40 (iv) has at any time knowingly failed to comply with any requirement 41 outlined in this section, any other provision of this article, any regu- 42 lations promulgated by the commission or any additional requirements of 43 the commission. 44 (e) All determinations to approve or deny an application pursuant to 45 this article shall be performed in a manner consistent with subdivision 46 sixteen of section two hundred ninety-six of the executive law and arti- 47 cle twenty-three-A of the correction law. When the commission denies an 48 application, the operator shall be afforded notice and the right to be 49 heard and offer proof in opposition to such determination in accordance 50 with the regulations of the commission. 51 4. (a) As a condition of registration in New York state, each operator 52 shall implement the following measures: 53 (i) limit each authorized sports bettor to one active and continuously 54 used account on their platform, and prevent anyone they know, or should 55 have known to be a prohibited sports bettor from maintaining accounts or 56 participating in any sports wagering offered by such operator;S. 1509--B 102 1 (ii) adopt appropriate safeguards to ensure, to a reasonable degree of 2 certainty, that authorized sports bettors are physically located within 3 the state when engaging in mobile sports betting; 4 (iii) prohibit minors from participating in any sports wagering, which 5 includes: 6 (1) if an operator becomes or is made aware that a minor has created 7 an account, or accessed the account of another, such operator shall 8 promptly, within no more than two business days, refund any deposit 9 received from the minor, whether or not the minor has engaged in or 10 attempted to engage in sports wagering; provided, however, that any 11 refund may be offset by any prizes already awarded; 12 (2) each operator shall provide parental control procedures to allow 13 parents or guardians to exclude minors from access to any sports wager- 14 ing or platform. Such procedures shall include a toll-free number to 15 call for help in establishing such parental controls; and 16 (3) each operator shall take appropriate steps to confirm that an 17 individual opening an account is not a minor; 18 (iv) when referencing the chances or likelihood of winning in adver- 19 tisements or upon placement of a sports wager, make clear and conspicu- 20 ous statements that are not inaccurate or misleading concerning the 21 chances of winning and the number of winners; 22 (v) enable authorized sports bettors to exclude themselves from sports 23 wagering and take reasonable steps to prevent such bettors from engaging 24 in sports wagering from which they have excluded themselves; 25 (vi) permit any authorized sports bettor to permanently close an 26 account registered to such bettor, on any and all platforms supported by 27 such operator, at any time and for any reason; 28 (vii) offer introductory procedures for authorized sports bettors, 29 that shall be prominently displayed on the main page of such operator 30 platform, that explain sports wagering; 31 (viii) implement measures to protect the privacy and online security 32 of authorized sports bettors and their accounts; 33 (ix) offer all authorized sports bettors access to his or her account 34 history and account details; 35 (x) ensure authorized sports bettors' funds are protected upon deposit 36 and segregated from the operating funds of such operator and otherwise 37 protected from corporate insolvency, financial risk, or criminal or 38 civil actions against such operator; 39 (xi) list on each website, in a prominent place, information concern- 40 ing assistance for compulsive play in New York state, including a toll- 41 free number directing callers to reputable resources containing further 42 information, which shall be free of charge; and 43 (xii) ensure no sports wagering shall be based on a prohibited sports 44 event. 45 (b) Operators shall not directly or indirectly operate, promote, or 46 advertise any platform or sports wagering to persons located in New York 47 state unless registered pursuant to this article. 48 (c) Operators shall not offer any sports wagering based on any prohib- 49 ited sports event. 50 (d) Operators shall not permit sports wagering by anyone they know, or 51 should have known, to be a prohibited sports bettor. 52 (e) Advertisements for contests and prizes offered by an operator 53 shall not target prohibited sports bettors, minors, or self-excluded 54 persons. 55 (f) Operators shall prohibit the use of third-party scripts or script- 56 ing programs for any exchange wagering contest and ensure that measuresS. 1509--B 103 1 are in place to deter, detect and, to the extent reasonably possible, 2 prevent cheating, including collusion, and the use of cheating devices, 3 including use of software programs that submit exchange wagering sports 4 wagers unless otherwise approved by the commission. 5 (g) Operators shall develop and prominently display procedures on the 6 main page of such operator's platform for the filing of a complaint by 7 an authorized sports bettor against such operator. An initial response 8 shall be given by such operator to such bettor filing the complaint 9 within forty-eight hours. A complete response shall be given by such 10 operator to such bettor filing the complaint within ten business days. 11 An authorized sports bettor may file a complaint alleging a violation of 12 the provisions of this article with the commission. 13 (h) Operators shall maintain records of all accounts belonging to 14 authorized sports bettors and retain such records of all transactions in 15 such accounts for the preceding five years. 16 (i) The server or other equipment which is used by an operator to 17 accept mobile sports wagering shall be located in the licensed gaming 18 facility in accordance with regulations promulgated by the commission. 19 (j) All mobile sports wagering shall be conducted in compliance with 20 this section and section thirteen hundred sixty-seven of this title. 21 5. (a) Subject to regulations promulgated by the commission, casinos 22 may enter into agreements with operators to allow for authorized bettors 23 to sign up to create and fund accounts on mobile sports wagering plat- 24 forms offered by the casino. 25 (b) Authorized sports bettors may sign up to create their account on a 26 mobile sports wagering platform in person at a casino or through an 27 operators' internet website accessed via a mobile device or computer, or 28 mobile device applications. 29 (c) Authorized sports bettors may deposit and withdraw funds in their 30 account on a mobile sports wagering platform in person at a casino, 31 electronically recognized payment methods, or via any other means 32 approved by the commission. 33 § 3. Section 104 of the racing, pari-mutuel wagering and breeding law 34 is amended by adding a new subdivision 24 to read as follows: 35 24. To regulate sports wagering in New York state. 36 § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager- 37 ing and breeding law, as added by chapter 237 of the laws of 2016, is 38 amended to read as follows: 39 15. "Prohibited sports event" shall mean any [collegiate sport or40athletic event, any] high school sport or athletic event or any horse 41 racing event. 42 § 5. Severability clause. If any provision of this act or application 43 thereof shall for any reason be adjudged by any court of competent 44 jurisdiction to be invalid, such judgment shall not affect, impair, or 45 invalidate the remainder of the act, but shall be confined in its opera- 46 tion to the provision thereof directly involved in the controversy in 47 which the judgment shall have been rendered. 48 § 6. This act shall take effect on the same date and in the same 49 manner as section 1367 of the racing, pari-mutuel wagering and breeding 50 law pursuant to subdivision (c) of section 52 of chapter 174 of the laws 51 of 2013, takes effect. 52 PART AAA 53 Section 1. Subparagraph (i) of the opening paragraph of section 1210 54 of the tax law is amended by adding a new clause 42 to read as follows:S. 1509--B 104 1 (42) the county of Westchester is hereby further authorized and 2 empowered to adopt and amend local laws, ordinances or resolutions 3 imposing such taxes at a rate that is one percent additional to the 4 three percent rate authorized above in this paragraph for such county 5 for the period beginning March first, two thousand nineteen and ending 6 November thirtieth, two thousand twenty-two; 7 § 2. Section 1224 of the tax law is amended by adding a new subdivi- 8 sion (jj) to read as follows: 9 (jj) The county of Westchester shall have the sole right to impose the 10 additional one percent rate of tax which such county is authorized to 11 impose pursuant to the authority of section twelve hundred ten of this 12 article. Such additional rate of tax shall be in addition to any other 13 tax which such county may impose or may be imposing pursuant to this 14 article or any other law and such additional rate of tax shall not be 15 subject to preemption. The maximum three percent rate referred to in 16 this section shall be calculated without reference to the additional one 17 percent rate of tax which the county of Westchester is authorized and 18 empowered to adopt pursuant to section twelve hundred ten of this arti- 19 cle. 20 § 3. Section 1262-b of the tax law, as amended by section 1 of part A 21 of chapter 8 of the laws of 2004, is amended to read as follows: 22 § 1262-b. The Westchester county property tax stabilization and relief 23 act. (a) Notwithstanding any other provision of law to the contrary, if 24 the county of Westchester imposes sales and compensating use taxes 25 pursuant to [subdivision (a)] clause forty-two of subparagraph (i) of 26 the opening paragraph of section twelve hundred ten of this article at 27 the rate of [three] four percent: 28 (1) The county shall allocate net collections from such taxes imposed 29 at the rate of one and one-half percent countywide among the cities and 30 towns of the county on the basis of the ratio which the full valuation 31 of real property in each city or town bears to the aggregate full valu- 32 ation of real property in all cities and towns of the county. Amounts 33 so allocated shall be credited to each of said cities and towns against 34 the county taxes levied upon real property in said cities and towns. 35 (2) The county shall allocate and credit or pay net collections 36 received by the county by reason of its additional one percent rate of 37 such taxes on the area of the county outside any city imposing sales and 38 compensating use taxes at a rate of one and one-half percent or greater 39 pursuant to the authority of subdivision (a) or at any rate pursuant to 40 the authority of [subdivision (b)] clause forty-two of subparagraph (i) 41 of the opening paragraph of section twelve hundred ten of this article 42 as follows: 43 (A) One-third of such net collections shall be allocated and credited 44 in the manner set forth in paragraph one of this subdivision. 45 (B) One-sixth of such net collections shall be allocated and paid 46 quarterly by the county commissioner of finance, in cash, to the several 47 school districts in such area of the county outside any such city impos- 48 ing sales and compensating use taxes. Such allocation and payment, to 49 such several school districts, shall be made on the basis of the ratio 50 which the population of each such school district bears to the aggregate 51 population of all of the school districts in such area. In the case of 52 school districts which are partially within and partially without the 53 county, or partially within or partially without the area of the county 54 outside a city imposing sales and compensating use taxes, the allocation 55 and payment to each such school district shall be made on the basis of 56 the population in such school district in the county, or in such area ofS. 1509--B 105 1 the county outside a city imposing sales and compensating use taxes, as 2 the case may be. Such populations shall be determined in accordance with 3 the latest federal census or special population census under section 4 twenty of the general municipal law completed and published prior to the 5 end of the quarter in which such allocation and payment are made, which 6 special population census shall include the entire area of the county; 7 provided that such special population census shall not be taken more 8 than once in every two years. A school district split between Westches- 9 ter county and another county shall apply such allocation and payment 10 solely to the benefit of the residents of the county in which the sales 11 and compensating use taxes are imposed. 12 (C) One-half of such net collections shall be allocated and paid quar- 13 terly by the county commissioner of finance, in cash, to the cities not 14 imposing sales and compensating use taxes and to the towns and villages 15 on which such additional one percent rate is imposed, on the basis of 16 the ratio which the population of each such city, town or village on 17 which such additional one percent rate is imposed bears to the entire 18 population of all such cities, towns and villages in the area on which 19 such additional one percent rate is imposed. Such populations shall be 20 determined in accordance with the latest federal census or special popu- 21 lation census under section twenty of the general municipal law 22 completed and published prior to the end of the quarter in which such 23 allocation is made, which special population census shall include the 24 entire area of the county; provided that such special population census 25 shall not be taken more than once in every two years. 26 (D) The quarterly allocation and payment of cash to cities, towns, 27 villages and school districts provided for under this paragraph and 28 under paragraph three of this subdivision may be made after payment by 29 the state comptroller to the county of the net collections subject to 30 such allocation and receipt by the county commissioner of finance of the 31 quarterly settlement report issued by the department, and may include 32 adjustments for corrections applicable to such allocations. All ratios 33 established by the county commissioner of finance with respect to allo- 34 cations to cities, towns, villages and school districts under this 35 subdivision shall be carried to four decimal places. The allocation of 36 net collections and payment of cash provided for under this paragraph 37 and under paragraph three of this subdivision shall be made to a town 38 based upon the population of the town less the population of any village 39 therein, provided that a town/village or village/town shall be deemed a 40 village for the purpose of determining such allocation. The allocation 41 of net collections and payment of cash provided for under this paragraph 42 and under paragraph three of this subdivision shall be applied by the 43 cities, towns, villages and school districts receiving such allocation 44 and payment as a credit against the taxes upon real property imposed by 45 such municipalities and school districts, respectively. The allocation 46 and payment received by towns shall be credited against real property 47 taxes in either the general fund town-wide or the town outside village 48 fund or a combination thereof. 49 (3) The county shall allocate and credit or pay net collections 50 received by the county by reason of its additional one and one-half 51 percent rate of such taxes imposed on the area of the county outside any 52 city imposing sales and compensating use taxes at a rate of one and 53 one-half percent or greater pursuant to the authority of subdivision (a) 54 or at any rate pursuant to the authority of subdivision (b) of section 55 twelve hundred ten of this article as follows:S. 1509--B 106 1 (A) Seventy percent of such net collections shall be retained by the 2 county to be used for any county purpose. 3 (B) Ten percent of such net collections shall be allocated and paid in 4 the manner set forth in subparagraph (B) of paragraph two of this subdi- 5 vision. 6 (C) Twenty percent of such net collections shall be allocated and paid 7 in the manner set forth in subparagraph (C) of paragraph two of this 8 subdivision. 9 (b) Nothing in this section shall be construed to impair the powers of 10 a city currently imposing sales and compensating use taxes pursuant to 11 the authority of section twelve hundred ten of this article from contin- 12 uing to do so in accordance with law. No school district in any city 13 imposing such sales and compensating use taxes shall be entitled to 14 receive a cash allocation and payment under paragraph two or three of 15 subdivision (a) of this section. No city, town or village authorized or 16 entitled to receive an allocation under subparagraph (C) of paragraph 17 two or subparagraph (C) of paragraph three of subdivision (a) of this 18 section shall be authorized or entitled to receive any cash allocation 19 under section twelve hundred sixty-two of this article. 20 § 4. Subdivision e of section 4 and sections 5, 7 and 16 of chapter 21 272 of the laws of 1991, amending the tax law relating to the method of 22 disposition of sales and compensating use tax revenue in Westchester 23 county and enacting the Westchester county spending limitation act, as 24 amended by chapter 81 of the laws of 2017, are amended to read as 25 follows: 26 e. "Spending limitation" means the maximum amount of county spending 27 established in county fiscal years 1992, 1993, 1994, 1995, 1996, 1997, 28 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 29 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [and], 2020, 30 2021 and 2022. 31 § 5. Establishment of annual spending limitation. a. For county fiscal 32 years 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 33 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 34 2015, 2016, 2017, 2018, 2019 [and], 2020, 2021 and 2022 there shall be 35 in effect an annual spending limitation. The spending limitation shall 36 be derived from a fixed percentage reflecting the ratio of base year 37 spending to county personal income. County personal income for such 38 calculation shall be for the period January 1, 1986 through December 31, 39 1986. Such percentage shall be applied to county personal income for the 40 period January 1, 1989 through December 31, 1989, to determine the 41 spending limitation for county fiscal year 1992; to determine the spend- 42 ing limitation for county fiscal year 1993, such percentage shall be 43 applied to county personal income for the period January 1, 1990 through 44 December 31, 1990; to determine the spending limitation for county 45 fiscal year 1994, such percentage shall be applied to county personal 46 income for the period January 1, 1991 through December 31, 1991; to 47 determine the spending limitation for county fiscal year 1995, such 48 percentage shall be applied to county personal income for the period 49 January 1, 1992 through December 31, 1992; to determine the spending 50 limitation for county fiscal year 1996, such percentage shall be applied 51 to county personal income for the period January 1, 1993 through Decem- 52 ber 31, 1993; to determine the spending limitation for county fiscal 53 year 1997, such percentage shall be applied to county personal income 54 for the period January 1, 1994 through December 31, 1994; to determine 55 the spending limitation for county fiscal year 1998, such percentage 56 shall be applied to county personal income for the period January 1,S. 1509--B 107 1 1995 through December 31, 1995; to determine the spending limitation for 2 county fiscal year 1999, such percentage shall be applied to county 3 personal income for the period January 1, 1996 through December 31, 4 1996; to determine the spending limitation for county fiscal year 2000, 5 such percentage shall be applied to county personal income for the peri- 6 od January 1, 1997 through December 31, 1997; to determine the spending 7 limitation for county fiscal year 2001, such percentage shall be applied 8 to county personal income for the period January 1, 1998 through Decem- 9 ber 31, 1998; to determine the spending limitation for county fiscal 10 year 2002, such percentage shall be applied to county personal income 11 for the period January 1, 1999 through December 31, 1999; to determine 12 the spending limitation for county fiscal year 2003, such percentage 13 shall be applied to county personal income for the period January 1, 14 2000 through December 31, 2000; to determine the spending limitation for 15 county fiscal year 2004, such percentage shall be applied to county 16 personal income for the period January 1, 2001 through December 31, 17 2001; to determine the spending limitation for county fiscal year 2005, 18 such percentage shall be applied to county personal income for the peri- 19 od January 1, 2002 through December 31, 2002; to determine the spending 20 limitation for county fiscal year 2006, such percentage shall be applied 21 to county personal income for the period January 1, 2003 through Decem- 22 ber 31, 2003; to determine the spending limitation for the county fiscal 23 year 2007, such percentage shall be applied to county personal income 24 for the period January 1, 2004 through December 31, 2004; to determine 25 the spending limitation for the county fiscal year 2008, such percentage 26 shall be applied to county personal income for the period January 1, 27 2005 through December 31, 2005; to determine the spending limitation for 28 the county fiscal year 2009, such percentage shall be applied to county 29 personal income for the period January 1, 2006 through December 31, 30 2006; to determine the spending limitation for the county fiscal year 31 2010, such percentage shall be applied to county personal income for the 32 period January 1, 2007 through December 31, 2007; to determine the 33 spending limitation for the county fiscal year 2011, such percentage 34 shall be applied to county personal income for the period January 1, 35 2008 through December 31, 2008; to determine the spending limitation for 36 the county fiscal year 2012, such percentage shall be applied to county 37 personal income for the period January 1, 2009 through December 31, 38 2009; to determine the spending limitation for the county fiscal year 39 2013, such percentage shall be applied to county personal income for the 40 period January 1, 2010 through December 31, 2010; to determine the 41 spending limitation for the county fiscal year 2014, such percentage 42 shall be applied to county personal income for the period January 1, 43 2011 through December 31, 2011; to determine the spending limitation for 44 the county fiscal year 2015, such percentage shall be applied to county 45 personal income for the period January 1, 2012 through December 31, 46 2012; to determine the spending limitation for county fiscal year 2016, 47 such percentage shall be applied to the county personal income for the 48 period January 1, 2013 through December 31, 2013; to determine the 49 spending limitation for the county fiscal year 2017, such percentage 50 shall be applied to county personal income for the period January 1, 51 2014 through December 31, 2014; [and] to determine the spending limita- 52 tion for county fiscal year 2018, such percentage shall be applied to 53 the county personal income for the period January 1, 2015 through Decem- 54 ber 31, 2015; to determine the spending limitation for the county fiscal 55 year 2019, such percentage shall be applied to county personal income 56 for the period January 1, 2016 through December 31, 2016; [and] toS. 1509--B 108 1 determine the spending limitation for county fiscal year 2020, such 2 percentage shall be applied to the county personal income for the period 3 January 1, 2017 through December 31, 2017; to determine the spending 4 limitation for the county fiscal year 2021, such percentage shall be 5 applied to county personal income for the period January 1, 2018 through 6 December 31, 2018; and to determine the spending limitation for the 7 county fiscal year 2022, such percentage shall be applied to county 8 personal income for the period January 1, 2019 through December 31, 9 2019. 10 b. The spending limitation shall serve as a statutory cap on county 11 spending to be reflected in the tentative budget as well as the enacted 12 budget for county fiscal years beginning in 1992. 13 § 7. Mandatory tax reduction. In the event that the county spending 14 subject to the spending limitation exceeds such limitation in the adop- 15 tive county budget for county fiscal year 1992, 1993, 1994, 1995, 1996, 16 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 17 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 [or], 18 2020, 2021 or 2022 then section 1262-b of the tax law shall be repealed. 19 § 16. This act shall take effect immediately, provided, however, that 20 sections one through seven of this act shall be in full force and effect 21 until [May 31, 2020, provided, however, that if the county of Westches-22ter imposes the tax authorized by section 1210 of the tax law in excess23of three percent, then sections one through seven of this act shall be24deemed repealed; provided that the commissioner of taxation and finance25shall notify the legislative bill drafting commission upon the repeal of26section 1262-b of the tax law pursuant to section seven of the Westches-27ter county spending limitation act in order that the commission may28maintain an accurate and timely effective data base of the official text29of laws of the state of New York in furtherance of effecting the30provisions of section 44 of the legislative law and section 70-b of the31public officers law] November 30, 2022. 32 § 5. This act shall take effect immediately; provided that the amend- 33 ments to section 1262-b of the tax law made by section three of this act 34 shall not affect the expiration of such section and shall be deemed to 35 expire therewith; and provided, further that the amendments made to 36 sections 4, 5 and 7 of chapter 272 of the laws of 1991 by section four 37 of this act shall not affect the expiration of such sections and shall 38 be deemed to expire therewith. 39 PART BBB 40 Section 1. The real property tax law is amended by adding a new 41 section 307-b to read as follows: 42 § 307-b. Additional tax on certain non-primary residence properties in 43 a city with a population of one million or more. 1. Generally. Notwith- 44 standing any provision of any general, specific or local law to the 45 contrary, any city with a population of one million or more is hereby 46 authorized and empowered to adopt and amend local laws in accordance 47 with this section imposing an additional tax on certain residential 48 properties. 49 2. Definitions. As used in this section: (a) "Commissioner of finance" 50 means the commissioner of finance of a city having a population of one 51 million or more, or his or her designee. 52 (b) "Department of finance" means the department of finance of a city 53 having a population of one million or more.S. 1509--B 109 1 (c) "Market value" shall mean the current monetary value of the prop- 2 erty, using a comparable sale-based valuation method, as determined by 3 the department of finance. 4 3. Additional tax. A local law enacted pursuant to this section may 5 provide for a real property tax in accordance with the following table 6 for fiscal years beginning on or after July first, two thousand twenty: 7 If the market value of the The tax is: 8 property is: 9 Over $5,000,000 but not $0 plus .5% of excess 10 over $6,000,000 over $5,000,000 11 Over $6,000,000 $5,000 plus 1% of excess 12 but not over $10,000,000 over $6,000,000 13 Over $10,000,000 but not $45,000 plus 1.5% of excess 14 over $15,000,000 over $10,000,000 15 Over $15,000,000 but not $120,000 plus 2% of excess 16 over $20,000,000 over $15,000,000 17 Over $20,000,000 but not $220,000 plus 3% of excess 18 over $25,000,000 over $20,000,000 19 Over $25,000,000 $370,000 plus 4% of excess 20 over $25,000,000 21 4. Property subject to additional tax. Such tax shall be imposed on 22 class one properties, as that term is defined in section eighteen 23 hundred two of this chapter, excluding vacant land, and all other resi- 24 dential real property held in condominium or cooperative form of owner- 25 ship, that has a market value of five million dollars or higher and is 26 not the primary residence of the owner or owners of such property, or 27 the primary residence of the parent or child of such owner or owners. 28 5. Primary residence and/or relationship to owner or owners. The prop- 29 erty shall be deemed to be the primary residence of the owner or owners 30 thereof, if such property would be eligible to receive the real property 31 tax exemption pursuant to section four hundred twenty-five of this chap- 32 ter, regardless of whether such owner or owners have filed an applica- 33 tion for, or the property is currently receiving such exemption. Proof 34 of primary residence and the resident's or residents' relationship to 35 the owner or owners shall be in the form of a certification as required 36 by local law or the rules of the commissioner. 37 6. Rules. The department of finance of any city enacting a local law 38 pursuant to this section shall have, in addition to any other functions, 39 powers and duties which have been or may be conferred on it by law, the 40 power to make and promulgate rules to carry out the purposes of this 41 section including, but not limited to, rules relating the timing, form 42 and manner of any certification required to be submitted under this 43 section. 44 7. Penalties. (a) Notwithstanding any provision of any general, 45 special or local law to the contrary, an owner or owners shall be 46 personally liable for any taxes owed pursuant to this section whenever 47 such owner or owners fail to comply with this section or the local law 48 or rules promulgated thereunder, or makes such false or misleading 49 statement or omission and the commissioner determines that such act was 50 due to the owner or owners' willful neglect, or that under such circum- 51 stances such act constituted a fraud on the department. The remedy 52 provided herein for an action in personam shall be in addition to any 53 other remedy or procedure for the enforcement of collection of delin- 54 quent taxes provided by any general, special or local law.S. 1509--B 110 1 (b) If the commissioner should determine, within three years from the 2 filing of an application or certification pursuant to this section, that 3 there was a material misstatement on such application or certification, 4 he or she shall proceed to impose a penalty tax against the property of 5 ten thousand dollars, in accordance with the local law or rules promul- 6 gated hereunder. 7 8. Cessation of use. In the event that a property granted an exemption 8 from taxation pursuant to this section ceases to be used as the primary 9 residence of such owner or owners or his, her or their parent or child, 10 such owner or owners shall so notify the commissioner of finance in a 11 time, form and manner as so required by local law or the rules of the 12 commissioner. 13 § 2. This act shall take effect immediately. 14 PART CCC 15 Section 1. Subdivision 1 of section 452 of the tax law, as amended by 16 chapter 32 of the laws of 2016, is amended to read as follows: 17 1. On and after October first, nineteen hundred ninety-nine, a tax is 18 hereby imposed and shall be paid upon the gross receipts of every person 19 holding any professional or amateur boxing, sparring or wrestling match 20 or exhibition in this state. Such tax shall be imposed on such gross 21 receipts, exclusive of any federal taxes, as follows: 22 (a) [three] eight and one-half percent of gross receipts from ticket 23 sales, except that in no event shall the tax imposed by this paragraph 24 exceed fifty thousand dollars for any match or exhibition; 25 (b) three percent of the sum of: (i) gross receipts from broadcasting 26 rights, and (ii) gross receipts from digital streaming over the inter- 27 net, except that in no event shall the tax imposed by this paragraph 28 exceed fifty thousand dollars for any match or exhibition. 29 § 2. This act shall take effect immediately and shall apply to taxes 30 imposed on and after such effective date. 31 PART DDD 32 Section 1. Paragraph 44 of subdivision (a) of section 1115 of the tax 33 law, as added by section 1 of part WW of chapter 59 of the laws of 2017, 34 is amended to read as follows: 35 (44) monuments as that term is defined in [subdivision] paragraph (f) 36 of section fifteen hundred two of the not-for-profit corporation law; 37 and for the purposes of this section such term shall also include the 38 purchase of all materials and supplies used or consumed in the 39 production or fabrication thereof. 40 § 2. This act shall take effect immediately. 41 PART EEE 42 Section 1. Subdivision a of section 1614 of the tax law, as amended by 43 chapter 170 of the laws of 1994, is amended to read as follows: 44 a. No prize claim shall be valid if submitted to the division follow- 45 ing the expiration of a one-year time period from the date of the draw- 46 ing or from the close of the game in which a prize was won, and the 47 person otherwise entitled to such prize shall forfeit any claim or enti- 48 tlement to such prize moneys. Unclaimed prize money, plus interest 49 earned thereon, shall be [retained in the lottery prize account to be50used for payment of special lotto or supplemental lotto prizes offeredS. 1509--B 111 1pursuant to the plan or plans specified in this article, or for promo-2tional purposes to supplement other games on an occasional basis not to3exceed sixteen weeks within any twelve month period pursuant to the plan4or plans specified in this article.5In the event that the director proposes to change any plan for the use6of unclaimed prize funds or in the event the director intends to use7funds in a game other than the game from which such unclaimed prize8funds were derived, the director of the budget, the chairperson of the9senate finance committee, and the chairperson of the assembly ways and10means committee shall be notified in writing separately detailing the11proposed changes to any plan prior to the implementation of the changes] 12 paid into the state treasury, to the credit of the state lottery fund 13 created by section ninety-two-c of the state finance law. 14 § 2. This act shall take effect immediately. 15 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 16 sion, section or part of this act shall be adjudged by any court of 17 competent jurisdiction to be invalid, such judgment shall not affect, 18 impair, or invalidate the remainder thereof, but shall be confined in 19 its operation to the clause, sentence, paragraph, subdivision, section 20 or part thereof directly involved in the controversy in which such judg- 21 ment shall have been rendered. It is hereby declared to be the intent of 22 the legislature that this act would have been enacted even if such 23 invalid provisions had not been included herein. 24 § 3. This act shall take effect immediately provided, however, that 25 the applicable effective date of Parts A through EEE of this act shall 26 be as specifically set forth in the last section of such Parts.
