Bill Text: NY S02008 | 2017-2018 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; increases certain motor vehicle transaction fees (Part A); relates to divisible load permits; provides that after December thirty-first, two thousand sixteen, no more than twenty-seven thousand power units shall be issued annual permits by the department of motor vehicles for any twelve-month period (Part B); relates to compliance with new federal regulations (Part D); relates to reciprocal agreements concerning suspension or revocation of registration of a motor vehicle for violations of toll collection regulations (Part E); relates to the waiver of non-driver identification card fees for crime victims (Part H); relates to the reinstatement for non-residents (Part I); relates to extending certain provisions relating to the empire state economic development fund (Part M); extends the expiration of the authority of the urban development corporation to make certain loans until July 1, 2018 (Part N); extends until March 31, 2018, the expiration of provisions of the executive law permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and permitting additional levels of such expedited service (Part Q); relates to streamlining the licensing process for real estate professionals (Part S); relates to local waterfront revitalization (Part T); relates to authorizing utility and cable television assessments to provide funds to the department of health from cable television assessments revenues and to the departments of agriculture and markets, environmental conservation, office of parks, recreation and historic preservation, and state from utility assessment revenues (Part V); relates to extending the effectiveness of the dormitory authority's authorization to enter into certain design and construction management agreements (Part W); relates to reverse mortgages (Part FF); relates to establishing the New York environmental protection and spill remediation account (Part HH); relates to environmental protection fund deposits and transfers; relates to the "Cleaner, Greener NY Act of 2013" (Part JJ); relates to sharing of employees, services and resources by the power authority, canal corporation and department of transportation (Part LL); authorizes the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agriculture and markets' Fuel NY program, from an assessment on gas and electric corporations (Part MM); relates to the effectiveness of the New York state health insurance continuation assistance demonstration project (Part NN); relates to increasing the number of sites authorized for growing and cultivating industrial hemp (Part OO); relates to the definition of transportation purpose (Part PP); relates to funding local government entities from the urban development corporation and to establishing the Indian Point closure task force to provide guidance and support to affected local municipalities and employees (Part RR); relates to pesticide registration timetables and fees (Part SS); relates to the life science initiatives program (Part TT); relates to retrofit technology for diesel-fueled vehicles (Part UU).
Spectrum: Committee Bill
Status: (Passed) 2017-04-20 - SIGNED CHAP.58 [S02008 Detail]
Download: New_York-2017-S02008-Amended.html
Bill Title: Enacts into law major components of legislation necessary to implement the state transportation, economic development and environmental conservation budget for the 2017-2018 state fiscal year; increases certain motor vehicle transaction fees (Part A); relates to divisible load permits; provides that after December thirty-first, two thousand sixteen, no more than twenty-seven thousand power units shall be issued annual permits by the department of motor vehicles for any twelve-month period (Part B); relates to compliance with new federal regulations (Part D); relates to reciprocal agreements concerning suspension or revocation of registration of a motor vehicle for violations of toll collection regulations (Part E); relates to the waiver of non-driver identification card fees for crime victims (Part H); relates to the reinstatement for non-residents (Part I); relates to extending certain provisions relating to the empire state economic development fund (Part M); extends the expiration of the authority of the urban development corporation to make certain loans until July 1, 2018 (Part N); extends until March 31, 2018, the expiration of provisions of the executive law permitting the secretary of state to provide special handling for all documents filed or issued by the division of corporations and permitting additional levels of such expedited service (Part Q); relates to streamlining the licensing process for real estate professionals (Part S); relates to local waterfront revitalization (Part T); relates to authorizing utility and cable television assessments to provide funds to the department of health from cable television assessments revenues and to the departments of agriculture and markets, environmental conservation, office of parks, recreation and historic preservation, and state from utility assessment revenues (Part V); relates to extending the effectiveness of the dormitory authority's authorization to enter into certain design and construction management agreements (Part W); relates to reverse mortgages (Part FF); relates to establishing the New York environmental protection and spill remediation account (Part HH); relates to environmental protection fund deposits and transfers; relates to the "Cleaner, Greener NY Act of 2013" (Part JJ); relates to sharing of employees, services and resources by the power authority, canal corporation and department of transportation (Part LL); authorizes the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agriculture and markets' Fuel NY program, from an assessment on gas and electric corporations (Part MM); relates to the effectiveness of the New York state health insurance continuation assistance demonstration project (Part NN); relates to increasing the number of sites authorized for growing and cultivating industrial hemp (Part OO); relates to the definition of transportation purpose (Part PP); relates to funding local government entities from the urban development corporation and to establishing the Indian Point closure task force to provide guidance and support to affected local municipalities and employees (Part RR); relates to pesticide registration timetables and fees (Part SS); relates to the life science initiatives program (Part TT); relates to retrofit technology for diesel-fueled vehicles (Part UU).
Spectrum: Committee Bill
Status: (Passed) 2017-04-20 - SIGNED CHAP.58 [S02008 Detail]
Download: New_York-2017-S02008-Amended.html
STATE OF NEW YORK ________________________________________________________________________ S. 2008--A A. 3008--A SENATE - ASSEMBLY January 23, 2017 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend chapter 62 of the laws of 2003 amending the vehicle and traffic law and other laws relating to increasing certain motor vehi- cle transaction fees, in relation to the disposition of revenues (Part A); to amend the vehicle and traffic law, in relation to divisible load permits (Part B); to amend the state finance law and the trans- portation law, in relation to enhancing the ability of the state to enforce state and federal law concerning the safety of public trans- portation systems under the oversight of the public transportation safety board (Part C); to amend the vehicle and traffic law in relation to compliance with new federal regulations and strengthening requirements for motor carriers (Part D); to amend the penal law, in relation to including the use of any highway, parkway, road, bridge or tunnel without payment of the lawful toll or charge as a theft of services; and to amend the vehicle and traffic law, in relation to liability of vehicle owners for toll collection violations and the penalty imposed upon the operator of a vehicle with an altered or obscured license plate while on a toll highway, bridge or tunnel (Part E); to amend the vehicle and traffic law and the state finance law, in relation to allocation of three million dollars of assessments from the city of New York to the general fund (Part F); to amend the vehi- cle and traffic law, the insurance law, the executive law, the tax law, and the state finance law, in relation to the regulation of transportation network company services; to establish the New York State TNC Accessibility Task Force; to establish the transportation network company driver's injury compensation fund; and to establish the local transit assistance fund (Part G); to amend the vehicle and traffic law, in relation to the waiver of non-driver identification EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12573-04-7S. 2008--A 2 A. 3008--A card fees for crime victims (Part H); to amend the vehicle and traffic law, in relation to the reinstatement fee for non-residents (Part I); to amend the vehicle and traffic law, in relation to increasing fees for original and duplicate certificates of title (Part J); to amend the vehicle and traffic law, in relation to additional fees for certain identification cards (Part K); to amend the vehicle and traf- fic law, in relation to the definition of "drug", the scope of the written test, the suspension of a license for driving while impaired by drugs, the license sanctions for refusing to submit to a chemical test and prohibiting the use of mobile telephones and portable elec- tronic devices when a vehicle is not in motion and by persons under 18 (Part L); to amend the New York state urban development corporation act, in relation to extending certain provisions relating to the empire state economic development fund (Part M); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, relating to the powers of the New York state urban development corporation to make loans, in relation to the effective- ness thereof (Part N); to amend chapter 261 of the laws of 1988, amending the state finance law and other laws relating to the New York state infrastructure trust fund, in relation to the minority and women-owned business enterprise program (Part O); to amend the infras- tructure investment act, in relation to the definition of an author- ized entity that may utilize design-build contracts, and in relation to the effectiveness thereof (Part P); to amend chapter 21 of the laws of 2003, amending the executive law relating to permitting the secre- tary of state to provide special handling for all documents filed or issued by the division of corporations and to permit additional levels of such expedited service, in relation to extending the expiration date thereof (Part Q); to amend the business corporation law, the cooperative corporations law, the executive law, the general associ- ations law, the general business law, the limited liability company law, the not-for-profit corporation law, the partnership law, the private housing finance law, the arts and cultural affairs law, the real property law and the tax law, in relation to streamlining the process by which service of process is served against a corporate or other entity with the secretary of state; and to repeal certain provisions of the real property law relating thereto (Part R); to amend the real property law, in relation to streamlining the licensing process for real estate professionals (Part S); to amend the environ- mental conservation law and the executive law, in relation to local waterfront revitalization (Part T); to amend the executive law, in relation to the chairperson of the state athletic commission (Part U); authorizing utility and cable television assessments to provide funds to the department of health from cable television assessment revenues and to the departments of agriculture and markets, environmental conservation, office of parks, recreation and historic preservation, and state from utility assessment revenues (Part V); to amend chapter 58 of the laws of 2012 amending the public authorities law relating to authorizing the dormitory authority to enter into certain design and construction management agreements, in relation to making permanent certain authority of the dormitory authority of the state of New York (Part W); to amend the insurance law, in relation to administrative supervision (Part X); to amend the insurance law, the banking law, and the financial services law in relation to the enforcement of the insurance, banking, and financial services laws against unlicensed participants (Part Y); to amend the banking law, in relation to theS. 2008--A 3 A. 3008--A licensing and regulation of student loan servicers (Part Z); to amend the banking law, in relation to protecting vulnerable adults from financial exploitation (Part AA); to amend the financial services law, in relation to the disqualification of bad actors from continued participation in the banking and insurance industries (Part BB); to amend the banking law, in relation to the regulation and authorization of certain lending circle programs (Part CC); to amend the state finance law, in relation to creating a paid family leave risk adjust- ment fund (Part DD); to amend the banking law, in relation to licensed lenders (Part EE); to amend the real property action and proceedings law and civil practice law and rules, in relation to reverse mortgages (Part FF); to amend the financial services law, in relation to assess- ments to defray operating expenses of the department (Subpart A); to amend the insurance law, in relation to the distribution of assets (Subpart B); and to amend the insurance law, in relation to insurers deemed to be in a hazardous financial condition (Subpart C)(Part GG); to amend the navigation law, in relation to establishing the New York environmental protection and spill remediation account (Part HH); to amend the environmental conservation law, the state finance law, the public authorities law, and the soil and water conservation districts law, in relation to the implementation of the "clean water infrastruc- ture act of 2017"; and to repeal certain provisions of the environ- mental conservation law and the state finance law relating thereto (Part II); to amend the state finance law and the environmental conservation law, in relation to environmental protection fund depos- its and transfers (Part JJ); to amend the environmental conservation law, in relation to the donation of excess food and recycling of food scraps (Part KK); to amend the public authorities law and the public officers law, in relation to the sharing of employees, services and resources by the power authority of the state of New York, canal corporation and department of transportation (Part LL); and to author- ize the energy research and development authority to finance a portion of its research, development and demonstration, policy and planning, and Fuel NY programs, as well as the department of environmental conservation's climate change program and the department of agricul- ture and markets' Fuel NY program, from an assessment on gas and elec- tric corporations (Part MM) 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 2017-2018 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through MM. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 PART AS. 2008--A 4 A. 3008--A 1 Section 1. Section 13 of part U1 of chapter 62 of the laws of 2003 2 amending the vehicle and traffic law and other laws relating to increas- 3 ing certain motor vehicle transaction fees, as amended by section 1 of 4 part A of chapter 58 of the laws of 2015, is amended to read as follows: 5 § 13. This act shall take effect immediately; provided however that 6 sections one through seven of this act, the amendments to subdivision 2 7 of section 205 of the tax law made by section eight of this act, and 8 section nine of this act shall expire and be deemed repealed on April 1, 9 2020; [provided further, however, that the amendments to subdivision 310of section 205 of the tax law made by section eight of this act shall11expire and be deemed repealed on March 31, 2018;] provided further, 12 however, that the provisions of section eleven of this act shall take 13 effect April 1, 2004 and shall expire and be deemed repealed on April 1, 14 2020. 15 § 2. This act shall take effect immediately and shall be deemed to 16 have been in full force and effect on and after April 1, 2017. 17 PART B 18 Section 1. Paragraph (f) of subdivision 15 of section 385 of the vehi- 19 cle and traffic law, as amended by section 4 of part C of chapter 59 of 20 the laws of 2004, the third undesignated paragraph as amended by chapter 21 277 of the laws of 2014, is amended to read as follows: 22 (f) 1. The department of transportation, or other issuing authority, 23 may issue an annual permit for a vehicle designed and constructed to 24 carry loads that are not of one piece or item, which is registered in 25 this state. Motor carriers having apportioned vehicles registered under 26 the international registration plan must either have a currently valid 27 permit at the time this provision becomes effective or shall have desig- 28 nated New York as its base state or one of the eligible jurisdictions of 29 operation under the international registration plan in order to be 30 eligible to receive a permit issued pursuant to [subparagraph] clause 31 (i), (ii) or (ii-a) of subparagraph eight of this paragraph. No permit 32 issued pursuant to this paragraph shall be valid for the operation or 33 movement of vehicles on any state or other highway within any city not 34 wholly included within one county unless such permit was issued by the 35 city department of transportation of such city. 36 2. Effective January first, two thousand five, no vehicle or combina- 37 tion of vehicles issued a permit pursuant to this paragraph shall cross 38 a bridge designated as an R-posted bridge by the commissioner of trans- 39 portation or any other permit issuing authority absent a determination 40 by such commissioner or permit issuing authority that the permit appli- 41 cant has demonstrated special circumstances warranting the crossing of 42 such bridge or bridges and a determination by such commissioner or 43 permit issuing authority that such bridge or bridges may be crossed 44 safely, provided, however, that in no event shall a vehicle or combina- 45 tion of vehicles issued a permit under this paragraph be permitted to 46 cross a bridge designated as an R-posted bridge if such vehicle or 47 combination of vehicles has a maximum gross weight exceeding one hundred 48 two thousand pounds, and provided further, however, that nothing 49 contained herein shall be deemed to authorize any vehicle or combination 50 of vehicles to cross any such bridge within any city not wholly included 51 within one county unless such vehicle or combination of vehicles has 52 been issued a valid permit by the city department of transportation of 53 such city pursuant to this subdivision.S. 2008--A 5 A. 3008--A 1 3. No vehicle having a model year of two thousand six or newer shall 2 be issued a permit pursuant to this paragraph unless each axle of such 3 vehicle or combination of vehicles, other than steerable or trackable 4 axles, is equipped with two tires on each side of the axle, any air 5 pressure controls for lift axles are located outside the cab of the 6 vehicle and are beyond the reach of occupants of the cab while the vehi- 7 cle is in motion, the weight on any grouping of two or more axles is 8 distributed such that no axle in the grouping carries less than eighty 9 percent of any other axle in the grouping and any liftable axle is 10 steerable or trackable; and, further provided, after December thirty- 11 first, two thousand nineteen, no permit shall be issued pursuant to this 12 paragraph to a vehicle of any model year that does not meet the require- 13 ments of this provision, except that such permits may be issued prior to 14 January first, two thousand twenty to a vehicle that does not meet the 15 requirement concerning axle grouping weight distribution, but meets all 16 other requirements of this section. 17 4. A divisible load permit may only be transferred to a replacement 18 vehicle by the same registrant or transferred with the permitted vehicle 19 as part of the sale or transfer of the permit holder's business; or, if 20 the divisible load permit is issued pursuant to [subparagraph] clause 21 (iv), (v) or (vi) of subparagraph eight of this paragraph for use within 22 the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange 23 and Dutchess and has been effective for the five years preceding a 24 transfer of such permit, the permit may be transferred with the permit- 25 ted vehicle in the sale of the permitted vehicle to the holder of a 26 permit issued pursuant to [subparagraph] clause (iv), (v) or (vi) of 27 subparagraph eight of this paragraph for use within the counties of 28 Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess. 29 5. If a permit holder operates a vehicle or combination of vehicles in 30 violation of any posted weight restriction, the commissioner of trans- 31 portation may impose a civil penalty as provided by section one hundred 32 forty-five of the transportation law and/or cancel, suspend or revoke 33 the permit issued to such vehicle or combination of vehicles and such 34 permit shall be deemed void as of the next day and shall not be reissued 35 for a period of up to twelve calendar months. 36 6. Until June thirtieth, nineteen hundred ninety-four, no more than 37 sixteen thousand power units shall be issued annual permits by the 38 department for any twelve-month period in accordance with this para- 39 graph. After June thirtieth, nineteen hundred ninety-four, no more than 40 sixteen thousand five hundred power units shall be issued annual permits 41 by the department for any twelve-month period. After December thirty- 42 first, nineteen hundred ninety-five, no more than seventeen thousand 43 power units shall be issued annual permits by the department for any 44 twelve-month period. After December thirty-first, two thousand three, no 45 more than twenty-one thousand power units shall be issued annual permits 46 by the department for any twelve-month period. After December thirty- 47 first, two thousand five, no more than twenty-two thousand power units 48 shall be issued annual permits by the department for any twelve-month 49 period. After December thirty-first, two thousand six, no more than 50 twenty-three thousand power units shall be issued annual permits by the 51 department for any twelve-month period. After December thirty-first, two 52 thousand seven, no more than twenty-four thousand power units shall be 53 issued annual permits by the department for any twelve-month period. 54 After December thirty-first, two thousand eight, no more than twenty- 55 five thousand power units shall be issued annual permits by the depart- 56 ment for any twelve-month period. After December thirty-first, two thou-S. 2008--A 6 A. 3008--A 1 sand sixteen, no more than twenty-seven thousand power units shall be 2 issued annual permits by the department for any twelve-month period. 3 After December thirty-first, two thousand eighteen, no more than twen- 4 ty-nine thousand power units shall be issued annual permits by the 5 department for any twelve-month period. After December thirty-first, two 6 thousand twenty, no more than thirty thousand power units shall be 7 issued annual permits by the department for any twelve-month period. 8 After December thirty-first, two thousand twenty-two, no more than thir- 9 ty-one thousand power units shall be issued annual permits by the 10 department for any twelve-month period. After December thirty-first, two 11 thousand twenty-three, no more than thirty-two thousand power units 12 shall be issued annual permits by the department for any twelve-month 13 period. After December thirty-first, two thousand twenty-four, no more 14 than thirty-three thousand power units shall be issued annual permits by 15 the department for any twelve-month period. After December thirty- 16 first, two thousand twenty-five, no more than thirty-five thousand power 17 units shall be issued annual permits by the department for any twelve- 18 month period. 19 Whenever permit application requests exceed permit availability, the 20 department shall renew annual permits that have been expired for less 21 than four years which meet program requirements, and then shall issue 22 permit applicants having less than three divisible load permits such 23 additional permits as the applicant may request, providing that the 24 total of existing and new permits does not exceed three. Remaining 25 permits shall be allocated by lottery in accordance with procedures 26 established by the commissioner in rules and regulations. After December 27 thirty-first, two thousand sixteen, the department may permanently 28 increase the maximum number of power units issued an annual permit by no 29 more than two thousand additional permits above the previous year's 30 total in accordance with procedures established by the commissioner in 31 rules and regulations. 32 7. The department of transportation may issue a seasonal agricultural 33 permit in accordance with [subparagraphs] clauses (i), (ii) and (iii) of 34 subparagraph eight of this paragraph that will be valid for four consec- 35 utive months with a fee equal to one-half the annual permit fees estab- 36 lished under this subdivision. 37 8. For a vehicle issued a permit in accordance with [subparagraphs] 38 clauses (iii), (iv), (v) and (vi) of this [paragraph] subparagraph, such 39 a vehicle must have been registered in this state prior to January 40 first, nineteen hundred eighty-six or be a vehicle or combination of 41 vehicles which replace such type of vehicle which was registered in this 42 state prior to such date provided that the manufacturer's recommended 43 maximum gross weight of the replacement vehicle or combination of vehi- 44 cles does not exceed the weight for which a permit may be issued and the 45 maximum load to be carried on the replacement vehicle or combination of 46 vehicles does not exceed the maximum load which could have been carried 47 on the vehicle being replaced or the registered weight of such vehicle, 48 whichever is lower, in accordance with the following [subparagraphs] 49 clauses: 50 (i) A permit may be issued for a vehicle having at least three axles 51 and a wheelbase not less than sixteen feet and for a vehicle with a 52 trailer not exceeding forty-eight feet. The maximum gross weight of such 53 a vehicle shall not exceed forty-two thousand five hundred pounds plus 54 one thousand two hundred fifty pounds for each foot and major fraction 55 of a foot of the distance from the center of the foremost axle to the 56 center of the rearmost axle, or one hundred two thousand pounds, which-S. 2008--A 7 A. 3008--A 1 ever is more restrictive provided, however, that any four axle group 2 weight shall not exceed sixty-two thousand pounds, any tridem axle group 3 weight shall not exceed fifty-seven thousand pounds, any tandem axle 4 weight does not exceed forty-seven thousand pounds and any single axle 5 weight shall not exceed twenty-five thousand pounds. 6 Any additional special authorizations contained in a currently valid 7 annual permit shall cease upon the expiration of such current annual 8 permit. 9 (ii) A permit may be issued subject to bridge restrictions for a vehi- 10 cle or a combination of vehicles having at least six axles and a wheel 11 base of at least thirty-six and one-half feet. The maximum gross weight 12 of such vehicle or combination of vehicles shall not exceed one hundred 13 seven thousand pounds and any tridem axle group weight shall not exceed 14 fifty-eight thousand pounds and any tandem axle group weight shall not 15 exceed forty-eight thousand pounds. 16 (ii-a) A permit may be issued subject to bridge restrictions for a 17 combination of vehicles having at least seven axles and a wheelbase of 18 at least forty-three feet. The maximum gross weight of such combination 19 of vehicles shall not exceed one hundred seventeen thousand pounds, any 20 four axle group weight shall not exceed sixty-three thousand pounds, any 21 tridem axle group weight shall not exceed fifty-eight thousand pounds, 22 any tandem axle group weight shall not exceed forty-eight thousand 23 pounds, and any single axle weight shall not exceed twenty-five thousand 24 pounds. 25 Each axle of such combination of vehicles, other than steerable or 26 trackable axles, shall be equipped with two tires on each side of the 27 axle, any air pressure controls for lift axles shall be located outside 28 the cab of the combination of vehicles and shall be beyond the reach of 29 occupants of the cab while the combination of vehicles is in motion, the 30 weight on any grouping of two or more axles shall be distributed such 31 that no axle in the grouping carries less than eighty percent of any 32 other axle in the grouping, and any liftable axle of such combination of 33 vehicles shall be steerable or trackable. 34 (iii) A permit may be issued for a vehicle having two axles and a 35 wheelbase not less than ten feet, with the maximum gross weight not in 36 excess of one hundred twenty-five percent of the total weight limitation 37 as set forth in subdivision ten of this section. Furthermore, until 38 December thirty-first, nineteen hundred ninety-four, any single rear 39 axle weight shall not exceed twenty-eight thousand pounds. After Decem- 40 ber thirty-first, nineteen hundred ninety-four, any axle weight shall 41 not exceed twenty-seven thousand pounds. 42 (iv) Within a city not wholly included within one county and the coun- 43 ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and 44 Dutchess, a permit may be issued for a vehicle having at least three 45 axles and a wheelbase not exceeding forty-four feet nor less than seven- 46 teen feet or for a vehicle with a trailer not exceeding forty feet. 47 Until December thirty-first, nineteen hundred ninety-four, a permit 48 may only be issued for such a vehicle having a maximum gross weight not 49 exceeding eighty-two thousand pounds and any tandem axle group weight 50 shall not exceed sixty-two thousand pounds. 51 After January first, nineteen hundred ninety-five, the operation of 52 such a vehicle shall be further limited and a permit may only be issued 53 for such a vehicle having a maximum gross weight not exceeding seventy- 54 nine thousand pounds and any tandem axle group weight shall not exceed 55 fifty-nine thousand pounds, and any tridem shall not exceed sixty-four 56 thousand pounds.S. 2008--A 8 A. 3008--A 1 A permit may be issued only until December thirty-first, nineteen 2 hundred ninety-four for a vehicle having at least three axles and a 3 wheelbase between fifteen and seventeen feet. The maximum gross weight 4 of such a vehicle shall not exceed seventy-three thousand two hundred 5 eighty pounds and any tandem axle group weight shall not exceed fifty- 6 four thousand pounds. 7 No vehicle having a model year of two thousand six or newer shall be 8 issued a permit pursuant to this subparagraph for use within the coun- 9 ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and 10 Dutchess unless it is equipped with at least four axles, and further 11 provided, after December thirty-first, two thousand fourteen, no permit 12 shall be issued pursuant to this [subparagraph] clause for use within 13 the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange 14 and Dutchess to a vehicle of any model year unless the vehicle is 15 equipped with at least four axles. 16 (v) Within a city not wholly included within one county and the coun- 17 ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange or Dutch- 18 ess, a permit may be issued only until December thirty-first, nineteen 19 hundred ninety-nine for a vehicle or combination of vehicles that has 20 been permitted within the past four years having five axles and a wheel- 21 base of at least thirty-six and one-half feet. The maximum gross weight 22 of such a vehicle or combination of vehicles shall not exceed one 23 hundred five thousand pounds and any tandem axle group weight shall not 24 exceed fifty-one thousand pounds. 25 Within a city not wholly included within one county and the counties 26 of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess, 27 a permit may be issued for a vehicle or combination of vehicles having 28 at least five axles and a wheelbase of at least thirty feet. The maximum 29 gross weight of such vehicle or combination of vehicles shall not exceed 30 ninety-three thousand pounds and any tridem axle group weight shall not 31 exceed fifty-seven thousand pounds and any tandem axle group weight 32 shall not exceed forty-five thousand pounds. 33 (vi) Within a city not wholly included within one county and the coun- 34 ties of Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and 35 Dutchess, a permit may be issued for a vehicle or combination of vehi- 36 cles having at least five axles or more and a wheelbase of at least 37 thirty-six and one-half feet, provided such permit contains routing 38 restrictions. 39 Until December thirty-first, nineteen hundred ninety-four, the maximum 40 gross weight of a vehicle or combination of vehicles permitted under 41 this [subparagraph] clause shall not exceed one hundred twenty thousand 42 pounds and any tandem or tridem axle group weight shall not exceed 43 sixty-nine thousand pounds, provided, however, that any replacement 44 vehicle or combination of vehicles permitted after the effective date of 45 this [subparagraph] clause shall have at least six axles, any tandem 46 axle group shall not exceed fifty thousand pounds and any tridem axle 47 group shall not exceed sixty-nine thousand pounds. 48 After December thirty-first, nineteen hundred ninety-four, the tridem 49 axle group weight of any vehicle or combination of vehicles issued a 50 permit under this [subparagraph] clause shall not exceed sixty-seven 51 thousand pounds, any tandem axle group weight shall not exceed fifty 52 thousand pounds and any single axle weight shall not exceed twenty-five 53 thousand seven hundred fifty pounds. 54 After December thirty-first, nineteen hundred ninety-nine, all vehi- 55 cles issued a permit under this [subparagraph] clause must have at least 56 six axles.S. 2008--A 9 A. 3008--A 1 After December thirty-first, two thousand fourteen, all combinations 2 of vehicles issued a permit under this [subparagraph] clause for use 3 within the counties of Westchester, Rockland, Nassau, Suffolk, Putnam, 4 Orange and Dutchess must have at least seven axles and a wheelbase of at 5 least forty-three feet. 6 After December thirty-first, two thousand six, no permits shall be 7 issued under this [subparagraph] clause for use within the counties of 8 Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for 9 a vehicle or combination of vehicles having less than seven axles or 10 having a wheelbase of less than forty-three feet, provided, however, 11 that permits may be issued for use within the counties of Westchester, 12 Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess for vehicles or 13 combinations of vehicles where the permit applicant demonstrates that 14 the applicant acquired the vehicle or combination of vehicles prior to 15 December thirty-first, two thousand six, and that if the vehicle or 16 combination of vehicles was acquired by the applicant after the effec- 17 tive date of this provision, such vehicle or combination of vehicles is 18 less than fifteen years old. In instances where the application is for a 19 combination of vehicles, the applicant shall demonstrate that the power 20 unit of such combination satisfies the conditions of this [subparagraph] 21 clause. In no event shall a permit be issued under this [subparagraph] 22 clause for use within the counties of Westchester, Rockland, Nassau, 23 Suffolk, Putnam, Orange and Dutchess for a vehicle or combination of 24 vehicles having less than seven axles or having a wheelbase of less than 25 forty-three feet after December thirty-first, two thousand fourteen. 26 Except as otherwise provided by this subparagraph for the period 27 ending December thirty-first, two thousand fourteen, after December 28 thirty-first, two thousand three, any combination of vehicles issued a 29 permit under this [subparagraph] clause for use within the counties of 30 Westchester, Rockland, Nassau, Suffolk, Putnam, Orange and Dutchess 31 shall not exceed one hundred twenty thousand pounds, shall have at least 32 seven axles, shall have a wheelbase of at least forty-three feet, and 33 single axle weight shall not exceed twenty-five thousand seven hundred 34 fifty pounds, any tandem axle group weight shall not exceed forty-eight 35 thousand pounds, any tridem axle group weight shall not exceed sixty- 36 three thousand pounds and any four axle group shall not exceed sixty- 37 five thousand pounds. 38 From the date of enactment of this paragraph, permit applications 39 under [subparagraphs] clauses (i), (ii), (ii-a), (iii), (iv), (v) and 40 (vi) of this [paragraph] subparagraph for vehicles registered in this 41 state may be honored by the commissioner of transportation or other 42 appropriate authority. The commissioner of transportation and other 43 appropriate authorities may confer and develop a system through rules 44 and regulations to assure compliance herewith. 45 § 2. This act shall take effect immediately. 46 PART C 47 Section 1. Paragraph (b) of subdivision 5 of section 88-a of the state 48 finance law, as added by chapter 481 of the laws of 1981, is amended to 49 read as follows: 50 (b) Moneys in the public transportation systems operating assistance 51 account shall be paid on a quarterly basis beginning October first, 52 nineteen hundred eighty-one. However, if there is a demonstrated cash 53 shortfall in any eligible system, payments to such system may be accel- 54 erated. Such payments shall be made in accordance with a schedule asS. 2008--A 10 A. 3008--A 1 specified by appropriation for the payment of operating costs of public 2 mass transportation systems outside the metropolitan commuter transpor- 3 tation district as defined by section twelve hundred sixty-two of the 4 public authorities law, eligible to receive operating assistance pursu- 5 ant to section eighteen-b of the transportation law. Provided, however 6 that no payment shall be made to any public transportation system that 7 is operating in violation of an order by the public transportation safe- 8 ty board pursuant to subdivision nine of section two hundred seventeen 9 of the transportation law until such time that said public transporta- 10 tion system has fully complied with said order or unless the order is 11 otherwise lifted. 12 § 2. Paragraph (b) of subdivision 7 of section 88-a of the state 13 finance law, as amended by chapter 56 of the laws of 1993, is amended to 14 read as follows: 15 (b) Moneys in the metropolitan mass transportation operating assist- 16 ance account shall be paid on a quarterly basis beginning October first, 17 nineteen hundred [eight-one] eighty-one. However, if there is a demon- 18 strated cash shortfall in any eligible system, payments to such system 19 may be accelerated. Such moneys shall be paid in accordance with sched- 20 ules as specified by appropriations for payment of operating costs of 21 public transportation systems in the metropolitan transportation commu- 22 ter district in order to meet the operating expenses of such systems, 23 provided, however, with respect to the metropolitan transportation 24 authority, its affiliates and subsidiaries, and notwithstanding any 25 general or special law to the contrary, other than such a law which 26 makes specific reference to this section, and subject to the provisions 27 of section twelve hundred seventy-c of the public authorities law, so 28 long as the metropolitan transportation authority dedicated tax fund 29 established by section twelve hundred seventy-c of the public authori- 30 ties law shall exist, any such appropriation to the metropolitan trans- 31 portation authority, its affiliates or its subsidiaries shall be deemed 32 to be an appropriation to the metropolitan transportation authority and 33 the total amount paid pursuant to such appropriation or appropriations 34 shall be deposited to such metropolitan transportation authority dedi- 35 cated tax fund and distributed in accordance with the provisions of 36 section twelve hundred seventy-c of the public authorities law. Nothing 37 contained in this subdivision shall be deemed to restrict the right of 38 the state to amend, repeal, modify or otherwise alter statutes imposing 39 or relating to the taxes producing revenues for deposit in the metropol- 40 itan mass transportation operating assistance account or the appropri- 41 ations relating thereto. The metropolitan transportation authority shall 42 not include within any resolution, contract or agreement with holders of 43 the bonds or notes issued under section twelve hundred sixty-nine of the 44 public authorities law any provision which provides that a default 45 occurs as a result of the state exercising its right to amend, repeal, 46 modify or otherwise alter such taxes or appropriations. Provided, 47 however that no payment shall be made to any public transportation 48 system that is operating in violation of an order by the public trans- 49 portation safety board pursuant to subdivision nine of section two 50 hundred seventeen of the transportation law until such time that said 51 public transportation system has fully complied with said order or 52 unless the order is otherwise lifted. 53 § 3. The opening paragraph of subdivision 4 of section 88-b of the 54 state finance law, as added by chapter 13 of the laws of 1987, is 55 amended to read as follows:S. 2008--A 11 A. 3008--A 1 Moneys of the fund shall be made available for financing any of the 2 following types of capital projects within the counties comprising the 3 metropolitan commuter transportation district, except those counties 4 comprising the city of New York, but only to the extent that such 5 projects are on an adopted transportation plan and approved by a desig- 6 nated transportation coordinating committee, if one exists, or by the 7 metropolitan planning organization as created pursuant to section 8 fifteen-a of the transportation law if no designated transportation 9 coordinating committee exists: capacity and infrastructure improvements 10 to state, county, town, city, village roads, highways, parkways and 11 bridges; or state, county, town, city or village mass transportation 12 projects; provided, however, that in Nassau and Suffolk counties such 13 moneys shall be available only for capacity improvements to state roads, 14 highways, parkways and bridges. The amount of state funds historically 15 appropriated statewide, other than bond funds, for transportation capi- 16 tal purposes from other sources shall not be reduced because of the 17 availability of such moneys made available pursuant to this chapter, nor 18 shall such moneys be used to match federal aid. Prior to the allocation 19 of state advance funds appropriated pursuant to this section, the muni- 20 cipality responsible for the project shall certify to the commissioner 21 of transportation that the amount of funds appropriated for transporta- 22 tion capital purposes by that municipality shall not be reduced because 23 of the availability of such state advance funds, and that such moneys 24 shall not be used to match federal aid. Provided, however that no 25 payment shall be made to any public transportation system that is oper- 26 ating in violation of an order by the public transportation safety board 27 pursuant to subdivision nine of section two hundred seventeen of the 28 transportation law until such time that said public transportation 29 system has fully complied with said order or unless the order is other- 30 wise lifted. 31 § 4. Paragraph a of subdivision 2 of section 18-b of the transporta- 32 tion law, as added by chapter 56 of the laws of 1975, is amended to read 33 as follows: 34 a. The commissioner shall pay to each public transportation system 35 that makes an application therefor, in quarterly installments, a mass 36 transportation operating assistance service payment. For the purposes of 37 this section, the quarters shall be April through June, July through 38 September, October through December and January through March. 39 Provided, however that no payment shall be made to any public transpor- 40 tation system that is operating in violation of an order by the public 41 transportation safety board pursuant to subdivision nine of section two 42 hundred seventeen of this chapter until such time that said public 43 transportation system has fully complied with said order or unless the 44 order is otherwise lifted. 45 § 5. Section 217 of the transportation law is amended by adding seven 46 new subdivisions 9, 10, 11, 12, 13, 14 and 15 to read as follows: 47 9. To comply with the requirements of the national public transporta- 48 tion safety plan, as provided by section 5329 of title 49 of the United 49 States code and to provide the state safety oversight program required 50 thereby. 51 10. To review, approve, oversee and enforce the implementation by the 52 rail fixed guideway public transportation agency of the public transpor- 53 tation agency safety plan that is approved by the board. 54 11. To investigate and enforce the safety of rail fixed guideway 55 public transportation systems with the public transportation agency 56 safety plan approved by the board.S. 2008--A 12 A. 3008--A 1 12. To perform audits, at least once triennially, for the compliance 2 of the rail fixed guideway public transportation systems with the feder- 3 al transit administration. 4 13. To provide, at least once annually, a status report on the safety 5 of rail fixed guideway public transportation systems that the board 6 oversees. 7 14. To review, approve, oversee and enforce the implementation of 8 public transportation system safety plans. 9 15. To issue such advisories, directives or orders that may be deemed 10 necessary to assure safety in the operation of public transportation 11 systems. 12 § 6. This act shall take effect immediately. 13 PART D 14 Section 1. Paragraph (g) of subdivision 3 of section 385 of the vehi- 15 cle and traffic law, as added by chapter 303 of the laws of 2014, is 16 amended to read as follows: 17 (g) The length of a tow truck or car carrier, inclusive of load and 18 bumpers, shall be not more than forty feet, except that a car carrier 19 may have an overhang that extends beyond the rear bumper of such car 20 carrier by not more than [three] four feet and except, further, that a 21 wheel lift that is less than fifteen feet in length shall not be 22 included as part of the length of a tow truck or car carrier when such 23 wheel lift is in use by such tow truck or car carrier to tow another 24 motor vehicle. 25 § 2. Subparagraphs 5 and 6 of paragraph (b) of subdivision 4 of 26 section 385 of the vehicle and traffic law, subparagraph 5 as amended by 27 chapter 669 of the laws of 2005, and subparagraph 6 as amended by chap- 28 ter 26 of the laws of 2002, are amended and a new subparagraph 7 is 29 added to read as follows: 30 5. A vehicle or combination of vehicles which is disabled and unable 31 to proceed under its own power and is being towed for a distance not in 32 excess of ten miles for the purpose of repairs or removal from the high- 33 way, except that the distance to the nearest exit of a controlled-access 34 highway shall not be considered in determining such ten mile distance; 35 [and] 36 6. Stinger-steered automobile transporters or stinger-steered boat 37 transporters, while operating on qualifying and access highways. Such 38 vehicles shall not, however, exceed [seventy-five] eighty feet exclusive 39 of an overhang of not more than [three] four feet on the front and 40 [four] six feet on the rear of the vehicle[.]; and 41 7. A combination of vehicles operating on any qualifying or access 42 highways consisting of a power unit and two trailers or semitrailers 43 with a total weight that shall not exceed twenty-six thousand pounds 44 when the overall length is greater than sixty-five feet but shall not 45 exceed eighty-two feet; and in which the trailers or semitrailers carry 46 no property and constitute inventory property of a manufacturer, 47 distributor, or dealer of such trailers or semitrailers. 48 § 3. Paragraph (c) of subdivision 4 of section 385 of the vehicle and 49 traffic law, as amended by chapter 26 of the laws of 2002, is amended to 50 read as follows: 51 (c) Notwithstanding the provisions of paragraph (a) of this subdivi- 52 sion, an overhang of not more than three feet on the front and four feet 53 on the rear of an automobile transporter or an overhang of not more than 54 four feet on the front and six feet on the rear of a stinger-steeredS. 2008--A 13 A. 3008--A 1 automobile transporter or a boat transporter or stinger-steered boat 2 transporter shall be permitted. 3 § 4. Subdivision 10 of section 385 of the vehicle and traffic law, as 4 amended by chapter 1008 of the laws of 1983, is amended to read as 5 follows: 6 10. A single vehicle or a combination of vehicles having three axles 7 or more and equipped with pneumatic tires, when loaded, may have a total 8 weight on all axles not to exceed thirty-four thousand pounds, plus one 9 thousand pounds for each foot and major fraction of a foot of the 10 distance from the center of the foremost axle to the center of the rear- 11 most axle. Axles to be counted as provided in subdivision five of this 12 section. In no case, however, shall the total weight exceed eighty thou- 13 sand pounds except for a vehicle if operated by an engine fueled prima- 14 rily by natural gas which may have a maximum gross weight of eighty-two 15 thousand pounds. For any vehicle or combination of vehicles having a 16 total gross weight less than seventy-one thousand pounds, the higher of 17 the following shall apply: 18 (a) the total weight on all axles shall not exceed thirty-four thou- 19 sand pounds plus one thousand pounds for each foot and major fraction of 20 a foot of the distance from the center of the foremost axle to the 21 center of the rearmost axle, or 22 (b) the overall gross weight on a group of two or more consecutive 23 axles shall not exceed the weight produced by application of the follow- 24 ing formula: 25 W = 500 ((LxN)/(N-1) + (12xN)+36) 26 where W equals overall gross weight on any group of two or more consec- 27 utive axles to the nearest five hundred pounds, L equals distance in 28 feet from the center of the foremost axle to the center of the rearmost 29 axle of any group of two or more consecutive axles, and N equals number 30 of axles in group under consideration, except that two consecutive sets 31 of tandem axles may carry a gross load of thirty-four thousand pounds 32 each providing the overall distance between the first and last axles of 33 such consecutive sets of tandem axles is thirty-six feet or more. 34 For any vehicle or combination of vehicles having a total gross weight 35 of seventy-one thousand pounds or greater, paragraph (b) shall apply to 36 determine maximum gross weight which is permitted hereunder. 37 § 5. Section 385 of the vehicle and traffic law is amended by adding a 38 new subdivision 24 to read as follows: 39 24. The provisions of subdivisions six, seven, eight, nine, ten, elev- 40 en and twelve of this section shall not apply to any tow truck that is 41 transporting a disabled vehicle from the place where the vehicle became 42 disabled to the nearest appropriate repair facility and has a gross 43 vehicle weight that is equal to or exceeds the gross vehicle weight of 44 the disabled vehicle being transported. 45 § 6. Subparagraph (iii) of paragraph b of subdivision 2 of section 510 46 of the vehicle and traffic law, as amended by chapter 349 of the laws of 47 1993, is amended to read as follows: 48 (iii) such registrations shall be suspended when necessary to comply 49 with subdivision nine of section one hundred forty or subdivision four 50 of section one hundred forty-five of the transportation law or when the 51 motor carrier has been issued an out of service order by the United 52 States department of transportation. The commissioner shall have the 53 authority to deny a registration or renewal application to any other 54 person for the same vehicle and may deny a registration or renewal 55 application for any other motor vehicle registered in the name of the 56 applicant where it has been determined that such registrant's intent hasS. 2008--A 14 A. 3008--A 1 been to evade the purposes of this subdivision and where the commission- 2 er has reasonable grounds to believe that such registration or renewal 3 will have the effect of defeating the purposes of this subdivision. Any 4 suspension issued pursuant to this subparagraph shall remain in effect 5 until such time as the commissioner is notified by the United States 6 department of transportation or the New York state department of trans- 7 portation that the out of service order resulting in the suspension is 8 no longer in effect. 9 § 7. This act shall take effect immediately. 10 PART E 11 Section 1. Subdivision 3 of section 165.15 of the penal law is amended 12 to read as follows: 13 3. With intent to obtain railroad, subway, bus, air, taxi or any other 14 public transportation service or to use any highway, parkway, road, 15 bridge or tunnel without payment of the lawful charge or toll therefor, 16 or to avoid payment of the lawful charge or toll for such transportation 17 service which has been rendered to him or for such use of any highway, 18 parkway, road, bridge or tunnel, he obtains or attempts to obtain such 19 service or use or avoids or attempts to avoid payment therefor by force, 20 intimidation, stealth, deception or mechanical tampering, or by unjusti- 21 fiable failure or refusal to pay; or 22 § 2. The vehicle and traffic law is amended by adding a new section 23 518 to read as follows: 24 § 518. Reciprocal agreements concerning suspension or revocation of 25 registration of a motor vehicle for violations of toll collection regu- 26 lations. a. The commissioner may execute a reciprocal compact or agree- 27 ment regarding toll collection violations with the motor vehicle admin- 28 istrator or other authorized official of another state not inconsistent 29 with the provisions of this chapter. Such compact or agreement shall 30 provide that if a registration of a motor vehicle would be suspended or 31 revoked pursuant to paragraph d of subdivision three of section five 32 hundred ten of this chapter, or pursuant to a comparable law or regu- 33 lation of another state, because an owner of a motor vehicle failed to 34 pay tolls and violation fees, or have them dismissed or transferred, 35 then the state issuing the registration shall likewise suspend or revoke 36 the registration or bar renewal of such registration, until such regis- 37 trant or applicant has paid such tolls and fees or complied with the 38 rules and regulations. 39 b. Such compact or agreement shall also provide such terms and proce- 40 dures as are necessary and proper to facilitate its administration. Any 41 such compact or agreement shall specify the violations subject to the 42 compact or agreement, and shall include a determination of comparable 43 violations in each state if any such violations are of a substantially 44 similar nature but are not denominated or described in precisely the 45 same words in each party state. 46 c. The word "state" when used in this section shall mean any state, 47 territory, a possession of the United States, the District of Columbia 48 or any province of Canada. 49 § 3. Subdivision 1 of section 402 of the vehicle and traffic law is 50 amended by adding a new paragraph (c) to read as follows: 51 (c) It shall be unlawful for any person to operate, drive or park a 52 motor vehicle on a toll highway, bridge and/or tunnel facility, under 53 the jurisdiction of the tolling authority, if such number plate is not 54 easily readable, nor shall any number plate be covered by glass or anyS. 2008--A 15 A. 3008--A 1 plastic material, and shall not be knowingly covered or coated with any 2 artificial or synthetic material or substance that conceals or obscures 3 such number plates or that distorts a recorded or photographic image of 4 such number plates, and the view of such number plates shall not be 5 obstructed by any part of the vehicle or by anything carried thereon, 6 except for a receiver-transmitter issued by a publicly owned tolling 7 facility in connection with electronic toll collection when such receiv- 8 er-transmitter is affixed to the exterior of a vehicle in accordance 9 with mounting instructions provided by the tolling facility. For 10 purposes of this paragraph, "tolling authority" shall mean every public 11 authority which operates a toll highway, bridge and/or tunnel facility 12 as well as the port authority of New York and New Jersey, a bi-state 13 agency created by compact set forth in chapter one hundred fifty-four of 14 the laws of nineteen hundred twenty-one, as amended. 15 § 4. Subdivision 8 of section 402 of the vehicle and traffic law, as 16 amended by chapter 61 of the laws of 1989 and renumbered by chapter 648 17 of the laws of 2006, is amended to read as follows: 18 8. The violation of this section shall be punishable by a fine of not 19 less than twenty-five nor more than two hundred dollars except for 20 violations of paragraph (c) of subdivision one of this section, which 21 shall be punishable by a fine of not less than one hundred nor more than 22 five hundred dollars. 23 § 5. This act shall take effect immediately. 24 PART F 25 Section 1. Subdivision 5 of section 227 of the vehicle and traffic 26 law, as amended by section 3 of part CC of chapter 58 of the laws of 27 2015, is amended to read as follows: 28 5. All penalties and forfeited security collected pursuant to the 29 provisions of this article shall be paid to the department of audit and 30 control to the credit of the justice court fund and shall be subject to 31 the applicable provisions of section eighteen hundred three of this 32 chapter. After such audit as shall reasonably be required by the comp- 33 troller, such penalties and forfeited security shall be paid quarterly 34 or, in the discretion of the comptroller, monthly, to the appropriate 35 jurisdiction in which the violation occurred in accordance with the 36 provisions of section ninety-nine-a of the state finance law, except 37 that the sum of four dollars for each violation occurring in such juris- 38 diction for which a complaint has been filed with the administrative 39 tribunal established pursuant to this article shall be retained by the 40 state. Notwithstanding any law to the contrary an additional annual sum 41 of three million dollars collected from fines and assessed to the city 42 of New York, shall be deposited into the general fund in accordance with 43 the provisions of section ninety-nine-a of the state finance law. The 44 amount distributed during the first three quarters to the city of 45 Rochester in any given fiscal year shall not exceed seventy percent of 46 the amount which will be otherwise payable. Provided, however, that if 47 the full costs of administering this article shall exceed the amounts 48 received and retained by the state for any period specified by the 49 commissioner, then such additional sums as shall be required to offset 50 such costs shall be retained by the state out of the penalties and 51 forfeited security collected pursuant to this article. 52 § 2. Paragraph c of subdivision 1 of section 1803 of the vehicle and 53 traffic law, as amended by chapter 385 of the laws of 1999, is amended 54 to read as follows:S. 2008--A 16 A. 3008--A 1 c. for compliance with or violations of subdivision nineteen of 2 section three hundred eighty-five of this chapter, notwithstanding any 3 inconsistent provision of law, except as provided in section ninety of 4 the state finance law, the fees and fines collected by the state pursu- 5 ant to sections two hundred twenty-seven, three hundred eighty-five and 6 eighteen hundred three of this chapter and section ninety-nine-a of the 7 state finance law, shall be made available to the state comptroller for 8 deposit in the general fund except that fines collected within a city 9 not wholly included within one county shall be paid to such city in 10 accordance with the procedures set forth in subdivision four of section 11 two hundred twenty-seven of this chapter for deposit into the general 12 fund of such city, and except that an annual amount of three million 13 dollars of fines collected within the city of New York pursuant to arti- 14 cle two-A of this chapter be deposited by the comptroller to the general 15 fund. 16 § 3. Subdivision 3 of section 99-a of the state finance law, as 17 amended by section 10 of part CC of chapter 58 of the laws of 2015, is 18 amended to read as follows: 19 3. The comptroller is hereby authorized to implement alternative 20 procedures, including guidelines in conjunction therewith, relating to 21 the remittance of fines, penalties, forfeitures and other moneys by town 22 and village justice courts, and by the Nassau and Suffolk counties traf- 23 fic and parking violations agencies, and by the city of Buffalo traffic 24 violations agency, and by the city of New York pursuant to article two-A 25 of the vehicle and traffic law, to the justice court fund and for the 26 distribution of such moneys by the justice court fund. Notwithstanding 27 any law to the contrary, the alternative procedures utilized may 28 include: 29 a. electronic funds transfer; 30 b. remittance of funds by the justice court to the chief fiscal office 31 of the town or village, or, in the case of the Nassau and Suffolk coun- 32 ties traffic and parking violations agencies, to the county treasurer, 33 or, in the case of the Buffalo traffic violations agency, to the city of 34 Buffalo comptroller, for distribution in accordance with instructions by 35 the comptroller or, in the case of the city of New York, pursuant to 36 article two-A of the vehicle and traffic law to the city comptroller; 37 and/or 38 c. monthly, rather than quarterly, distribution of funds. 39 The comptroller may require such reporting and record keeping as he or 40 she deems necessary to ensure the proper distribution of moneys in 41 accordance with applicable laws. A justice court or the Nassau and 42 Suffolk counties traffic and parking violations agencies or the city of 43 Buffalo traffic violations agency or the city of New York pursuant to 44 article two-A of the vehicle and traffic law may utilize these proce- 45 dures only when permitted by the comptroller, and such permission, once 46 given, may subsequently be withdrawn by the comptroller on due notice. 47 § 4. This act shall take effect immediately. 48 PART G 49 Section 1. Legislative intent. The purpose of this act is to expand 50 access to important and enhanced transportation options for residents 51 and visitors throughout the State, while ensuring the safety, reliabil- 52 ity, and cost-effectiveness of those services within the State of New 53 York.S. 2008--A 17 A. 3008--A 1 § 2. The vehicle and traffic law is amended by adding a new article 2 44-B to read as follows: 3 ARTICLE 44-B 4 TRANSPORTATION NETWORK COMPANY SERVICES 5 Section 1691. Definitions. 6 1692. General provisions. 7 1693. Financial responsibility of transportation network compa- 8 nies. 9 1694. Disclosures. 10 1695. Insurance provisions. 11 1696. Driver and vehicle requirements. 12 1697. Maintenance of records. 13 1698. Audit procedures; confidentiality of records. 14 1699. Criminal history background check of transportation 15 network company drivers. 16 1700. Controlling authority. 17 § 1691. Definitions. As used in this article: 1. "Transportation 18 network company vehicle" or "TNC vehicle" means a vehicle that is: 19 (a) used by a transportation network company driver to provide a TNC 20 prearranged trip originating in the state of New York; 21 (b) owned, leased or otherwise authorized for use by the transporta- 22 tion network company driver and shall not include: 23 (i) a taxicab, as defined in section one hundred forty-eight-a of this 24 chapter and section 19-502 of the administrative code of the city of New 25 York, or as otherwise defined in local law; 26 (ii) a livery vehicle, as defined in section one hundred twenty-one-e 27 of this chapter, or as otherwise defined in local law; 28 (iii) a black car, limousine, or luxury limousine, as defined in 29 section 19-502 of the administrative code of the city of New York, or as 30 otherwise defined in local law; 31 (iv) a for-hire vehicle, as defined in section 19-502 of the adminis- 32 trative code of the city of New York, or as otherwise defined in local 33 law; 34 (v) a bus, as defined in section one hundred four of this chapter; 35 (vi) any motor vehicle weighing more than six thousand five hundred 36 pounds unloaded; 37 (vii) any motor vehicle having a seating capacity of more than seven 38 passengers; and 39 (viii) any motor vehicle subject to section three hundred seventy of 40 this chapter. 41 2. "Digital network" means any system or service offered or utilized 42 by a transportation network company that enables TNC prearranged trips 43 with transportation network company drivers. 44 3. "Transportation network company" or "TNC" means a person, corpo- 45 ration, partnership, sole proprietorship, or other entity that is 46 licensed pursuant to this article and is operating in New York state 47 exclusively using a digital network to connect transportation network 48 company passengers to transportation network company drivers who provide 49 TNC prearranged trips. 50 4. "Transportation network company driver" or "TNC driver" means an 51 individual who: 52 (a) Receives connections to potential passengers and related services 53 from a transportation network company in exchange for payment of a fee 54 to the transportation network company; and 55 (b) Uses a TNC vehicle to offer or provide a TNC prearranged trip to 56 transportation network company passengers upon connection through aS. 2008--A 18 A. 3008--A 1 digital network controlled by a transportation network company in 2 exchange for compensation or payment of a fee. 3 5. "Transportation network company passenger" or "passenger" means a 4 person or persons who use a transportation network company's digital 5 network to connect with a transportation network company driver who 6 provides TNC prearranged trips to the passenger in the TNC vehicle 7 between points chosen by the passenger. 8 6. "TNC prearranged trip" means the provision of transportation by a 9 transportation network company driver to a passenger provided through 10 the use of a TNC's digital network: 11 (a) beginning when a transportation network company driver accepts a 12 passenger's request for a trip through a digital network controlled by a 13 transportation network company; 14 (b) continuing while the transportation network company driver trans- 15 ports the requesting passenger in a TNC vehicle; and 16 (c) ending when the last requesting passenger departs from the TNC 17 vehicle. 18 (d) The term "TNC prearranged trip" does not include transportation 19 provided through any of the following: 20 (i) shared expense carpool or vanpool arrangements, including those as 21 defined in section one hundred fifty-eight-b of the vehicle and traffic 22 law; 23 (ii) use of a taxicab, livery, luxury limousine, or other for-hire 24 vehicle, as defined in the vehicle and traffic law, section 19-502 of 25 the New York city administrative code, or as otherwise defined in local 26 law; and 27 (iii) a regional transportation provider. 28 7. "Group policy" means an insurance policy issued pursuant to section 29 three thousand four hundred fifty-five of the insurance law. 30 § 1692. General provisions. 1. A TNC or a TNC driver is not a common 31 carrier, as defined in subdivision six of section two of the transporta- 32 tion law; a contract carrier of passengers by motor vehicle, as defined 33 in subdivision nine of section two of the transportation law; or a motor 34 carrier, as defined in subdivision seventeen of section two of the 35 transportation law; nor do they provide taxicab or for-hire vehicle 36 service. Moreover, a TNC driver shall not be required to register the 37 TNC vehicle such TNC driver uses for TNC prearranged trips as a commer- 38 cial or for-hire vehicle, as set forth in article fourteen of this chap- 39 ter. 40 2. A TNC may not operate in the state of New York without first having 41 obtained a license issued by the department in a form and manner and 42 with applicable fees as provided for by regulations promulgated by the 43 commissioner. As a condition of obtaining a license, a TNC shall be 44 required to submit to the department proof of a group policy issued 45 pursuant to section three thousand four hundred fifty-five of the insur- 46 ance law. Failure of a TNC to obtain a license before operation, pursu- 47 ant to this subdivision shall constitute a misdemeanor. No license 48 shall be suspended or revoked except upon notice to the TNC and after an 49 opportunity to be heard. 50 3. A TNC must maintain an agent for service of process in the state of 51 New York. 52 4. On behalf of a TNC driver, a TNC may charge a fare for the services 53 provided to passengers; provided that, if a fare is collected from a 54 passenger, the TNC shall disclose to the passengers the fare or fare 55 calculation method on its website or within the application service. The 56 TNC shall also provide the passengers with the applicable rates beingS. 2008--A 19 A. 3008--A 1 charged and an estimated fare before the passenger enters the TNC vehi- 2 cle. 3 5. A TNC's digital network shall display a picture of the TNC driver, 4 and the make, model, color and license plate number of the TNC vehicle 5 utilized for providing the TNC prearranged trip before the passenger 6 enters the TNC vehicle. 7 6. Within a reasonable period of time following the completion of a 8 trip, a TNC shall transmit an electronic receipt to the passenger on 9 behalf of the TNC driver that lists: 10 (a) The origin and destination of the trip; 11 (b) The total time and distance of the trip; and 12 (c) An itemization of the total fare paid, if any. 13 7. A TNC driver shall not solicit or accept street hails. 14 8. A TNC shall adopt a policy prohibiting solicitation or acceptance 15 of cash payments for the fares charged to passengers for TNC prearranged 16 trips and notify TNC drivers of such policy. TNC drivers shall not 17 solicit or accept cash payments from passengers. 18 9. Nothing in this article shall apply to cities with a population of 19 one million or more. 20 § 1693. Financial responsibility of transportation network companies. 21 1. A TNC driver, or TNC on the TNC driver's behalf through a group poli- 22 cy, shall maintain insurance that recognizes that the driver is a TNC 23 driver and provides financial responsibility coverage: 24 (a) while the TNC driver is logged onto the TNC's digital network; and 25 (b) while the TNC driver is engaged in a TNC prearranged trip. 26 2. (a) The following automobile financial responsibility insurance 27 requirements shall apply while a TNC driver is logged onto the TNC's 28 digital network and is available to receive transportation requests but 29 is not engaged in a TNC prearranged trip: insurance against loss from 30 the liability imposed by law for damages, including damages for care and 31 loss of services, because of bodily injury to or death of any person, 32 and injury to or destruction of property arising out of the ownership, 33 maintenance, use or operation of a personal vehicle or vehicles within 34 this state, exclusive of interest and costs, with respect to each such 35 occurrence, of at least fifty thousand dollars because of bodily injury 36 to or death of one person in any one accident and, subject to said limit 37 for one person, to a limit of at least one hundred thousand dollars 38 because of bodily injury to or death of two or more persons in any one 39 accident, and to a limit of at least twenty-five thousand dollars 40 because of injury to or destruction of property of others in any one 41 accident provided, however, that such policy need not be for a period 42 coterminous with the registration period of the personal vehicle 43 insured, and coverage in satisfaction of the financial responsibility 44 requirements set forth in section three thousand four hundred twenty of 45 the insurance law, article fifty-one of the insurance law, and such 46 other requirements or regulations that may apply for the purposes of 47 satisfying the financial responsibility requirements with respect to the 48 use or operation of a motor vehicle. 49 (b) The coverage requirements of paragraph (a) of this subdivision may 50 be satisfied by any of the following: 51 (i) insurance maintained by the TNC driver; or 52 (ii) insurance provided through a group policy maintained by the TNC; 53 or 54 (iii) a combination of subparagraphs (i) and (ii) of this paragraph. 55 3. (a) The following automobile financial responsibility insurance 56 requirements shall apply while a TNC driver is engaged in a TNC prear-S. 2008--A 20 A. 3008--A 1 ranged trip: insurance against loss from the liability imposed by law 2 for damages, including damages for care and loss of services, because of 3 bodily injury to or death of any person, and injury to or destruction of 4 property arising out of the ownership, maintenance, use, or operation of 5 a personal vehicle or vehicles within this state, subject to a limit, 6 exclusive of interest and costs, with respect to each such occurrence, 7 of at least one million dollars because of bodily injuries, death and 8 property damage, provided, however, that such policy need not be for a 9 period coterminous with the registration period of the personal vehicle 10 insured, and coverage in satisfaction of the financial responsibility 11 requirements set forth in section three thousand four hundred twenty of 12 the insurance law, article fifty-one of the insurance law, and such 13 other requirements or regulations that may apply for the purposes of 14 satisfying the financial responsibility requirements with respect to the 15 use or operation of a motor vehicle. 16 (b) The coverage requirements of paragraph (a) of this subdivision may 17 be satisfied by any of the following: 18 (i) insurance maintained by the TNC driver; or 19 (ii) insurance provided through a group policy maintained by the TNC; 20 or 21 (iii) a combination of subparagraphs (i) and (ii) of this paragraph. 22 4. A TNC shall, upon entering into a contractual agreement with a TNC 23 driver, provide notice to the TNC driver that he or she may need addi- 24 tional insurance coverage including motor vehicle physical damage cover- 25 age as described in paragraph nineteen of subsection (a) of section one 26 thousand one hundred thirteen of the insurance law if the TNC vehicle 27 being used by the TNC driver is subject to a lease or loan. A TNC shall 28 also post this notice on its website. 29 5. If insurance maintained by a TNC driver pursuant to subdivisions 30 two and three of this section has lapsed or does not provide the 31 required coverage, then the group policy maintained by a TNC shall 32 provide the coverage required by this section beginning with the first 33 dollar of a claim and have the duty to defend such claim. 34 6. Coverage under a group policy maintained by the TNC shall not be 35 dependent on the denial of a claim by the insurer that issued the insur- 36 ance policy used to register the TNC vehicle, nor shall that insurer be 37 required to first deny a claim. 38 7. (a) Except as provided in subdivision two of this section, a group 39 policy maintained by a TNC pursuant to subparagraph (ii) of paragraph 40 (b) of subdivisions two or three of this section shall be placed with an 41 insurer authorized to write insurance in this state. 42 (b) If a TNC is unable to purchase a group policy pursuant to subpara- 43 graph (ii) of paragraph (b) of subdivisions two or three of this section 44 because such insurance is unavailable from authorized insurers the TNC 45 may acquire such group insurance with an excess line broker pursuant to 46 section two thousand one hundred eighteen of the insurance law. 47 (c) The obligation to determine whether the insurance required by this 48 section is unavailable from insurers authorized to write insurance in 49 this state shall be made prior to the initial placement and each renewal 50 of a policy. 51 8. Insurance satisfying the requirements of this section may be used, 52 when the TNC vehicle is being used or operated during the period speci- 53 fied in subdivision one of this section, to satisfy the financial 54 responsibility requirements set forth in subdivision four of section 55 three hundred eleven of this chapter, and any other requirements or 56 regulations that may apply for the purposes of satisfying the financialS. 2008--A 21 A. 3008--A 1 responsibility requirements with respect to the use or operation of a 2 motor vehicle. 3 9. A TNC driver shall carry proof of coverage satisfying subdivisions 4 two and three of this section with him or her at all times during his or 5 her use or operation of a TNC vehicle in connection with a TNC's digital 6 network. Such proof of coverage shall be in such form as the commission- 7 er shall prescribe, which may be in the form of an insurance identifica- 8 tion card as defined in section three hundred eleven of this chapter. 9 Any insurance identification card issued pursuant to the provisions of 10 this article shall be in addition to the insurance identification card 11 required pursuant to article six of this chapter, and nothing contained 12 in this article shall be deemed to supersede the requirements of such 13 article six. Whenever the production of an insurance identification card 14 is required by law, a TNC driver shall (a) produce the insurance iden- 15 tification card issued pursuant to article six of this chapter and, (b) 16 if such driver either (i) was logged onto the TNC's digital network or 17 (ii) was engaged in a TNC prearranged trip and the activity under this 18 subdivision is being covered primarily by insurance purchased by a TNC 19 such driver shall also produce the insurance identification card 20 required pursuant to this article. 21 10. The superintendent of financial services is authorized to issue 22 such rules and regulations necessary to implement this section. 23 11. Nothing in this section shall impose financial responsibility 24 requirements upon any entities operating as vehicles for hire in a city 25 with a population of one million or more. 26 12. A group policy placed by an excess line broker under paragraph 27 (b) of subdivision seven of this section shall not include a mandatory 28 arbitration clause in a policy issued pursuant to this section. Nothing 29 in this section supercedes the mandatory arbitration requirements 30 contained in section five thousand one hundred five of the insurance 31 law. 32 § 1694. Disclosures. A TNC shall disclose in writing to TNC drivers 33 the following before they are allowed to accept a request for a TNC 34 prearranged trip on the TNC's digital network: 35 1. The insurance coverage, including the types of coverage and the 36 limits for each coverage, that the TNC provides while the TNC driver 37 uses a TNC vehicle in connection with a TNC's digital network; 38 2. That the TNC driver's own automobile insurance policy might not 39 provide any coverage while the TNC driver is logged on to the TNC's 40 digital network and is available to receive transportation requests or 41 is engaged in a TNC prearranged trip, depending on its terms; and 42 3. That, if a TNC vehicle has a lien against it, then the continued 43 use of such TNC vehicle by its TNC driver without physical damage cover- 44 age may violate the terms of the contract with the lienholder. 45 § 1695. Insurance provisions. 1. Insurers that write motor vehicle 46 insurance in this state may, in the insurance policy, exclude any and 47 all coverage afforded under the policy issued to an owner or operator of 48 a TNC vehicle for any loss or injury that occurs while a TNC driver is 49 logged on to a TNC's digital network or while a driver provides a prear- 50 ranged trip, including: 51 (a) liability coverage for bodily injury and property damage; 52 (b) coverage provided pursuant to article fifty-one of the insurance 53 law; 54 (c) uninsured and underinsured motorist coverage; andS. 2008--A 22 A. 3008--A 1 (d) motor vehicle physical damage coverage as described in paragraph 2 nineteen of subsection (a) of section one thousand one hundred thirteen 3 of the insurance law. 4 2. Such exclusions shall apply notwithstanding any requirement under 5 the law to the contrary. Nothing in this section implies or requires 6 that an owner's policy of liability insurance or other motor vehicle 7 insurance policy provide coverage while the TNC driver is logged on to 8 the TNC's digital network, while the TNC driver is engaged in a TNC 9 prearranged trip or while the TNC driver otherwise uses or operates a 10 TNC vehicle to transport passengers for compensation. 11 3. Nothing shall be deemed to preclude an insurer from providing 12 primary, excess, or umbrella coverage for the TNC driver's TNC vehicle, 13 if it chose to do so by contract or endorsement. 14 4. Motor vehicle insurers that exclude the coverage described in this 15 article shall have no duty to defend or indemnify any claim expressly 16 excluded thereunder. Nothing in this article shall be deemed to invali- 17 date or limit an exclusion contained in a policy including any policy in 18 use or approved for use in this state prior to the effective date of 19 this section. 20 5. A motor vehicle insurer that defends or indemnifies a claim against 21 a TNC driver that is excluded under the terms of its policy shall have a 22 right of contribution against other insurers that provide motor vehicle 23 insurance to the same driver in satisfaction of the coverage require- 24 ments of the provisions of the chapter of the laws of two thousand 25 seventeen which added this article at the time of loss. 26 6. In a claims coverage investigation, a TNC and any insurer poten- 27 tially providing coverage under this article shall, within fifteen days 28 after a claim has been filed, facilitate the exchange of relevant infor- 29 mation with directly involved parties and any insurer of the TNC driver 30 if applicable, including the precise times that a TNC driver logged on 31 and off of the TNC's digital network in the twelve hour period imme- 32 diately preceding and in the twelve hour period immediately following 33 the accident and disclose to one another a clear description of the 34 coverage, exclusions and limits provided under any motor vehicle insur- 35 ance maintained under this article. 36 7. (a) The commissioner shall promulgate regulations for the provision 37 of relevant insurance coverage information required by this article to 38 the following persons upon request: 39 (i) a person to whom an accident report pertains or who is named in 40 such report, or his or her authorized representative; and 41 (ii) any other person or his or her authorized representative who has 42 demonstrated to the satisfaction of the commissioner that such person is 43 or may be a party to a civil action arising out of the conduct described 44 in such accident report. 45 (b) Except as provided under paragraph (a) of this subdivision, the 46 name of a TNC driver associated with such insurance information is 47 designated confidential whether or not so marked, is not subject to 48 disclosure by a third party by the department of motor vehicles without 49 prior consent of the TNC, and is exempt from disclosure pursuant to 50 article six of the public officers law. Nothing in this section shall be 51 considered as limiting the applicability of any other exemptions under 52 article six of the public officers law. 53 § 1696. Driver and vehicle requirements. 1. (a) At all times, an indi- 54 vidual acting as a TNC driver shall be permitted by the TNC as follows: 55 (i) The individual shall submit an application to the TNC, which shall 56 include information regarding his or her address, age, driver's license,S. 2008--A 23 A. 3008--A 1 motor vehicle registration, automobile liability insurance, and other 2 information required by the TNC; 3 (ii) The TNC shall conduct or have a third party conduct, a local and 4 national, criminal background check for each applicant in accordance 5 with section sixteen hundred ninety-nine of this article and that shall 6 review: 7 (A) Whether the applicant is listed on the publicly available New York 8 state sex offender registry pursuant to section one hundred 9 sixty-eight-q of the correction law; and 10 (B) The United States Department of Justice National Sex Offender 11 public website; 12 (iii) The TNC shall obtain and review, or have a third party obtain 13 and review, a driving history research report for such individual. 14 (b) The TNC shall not permit an applicant where such applicant: 15 (i) fails to meet all qualifications pursuant to section sixteen 16 hundred ninety-nine of this article; 17 (ii) is a match in the United States Department of Justice National 18 Sex Offender Public Website; 19 (iii) does not possess a valid New York driver's license, unless such 20 applicant does possess a valid out of state driver's license and proof 21 that such applicant is an active duty member of the armed services of 22 the United States stationed in this state or is a family or household 23 member of such an active duty member; 24 (iv) does not possess proof of registration for the motor vehicle(s) 25 used to provide TNC prearranged trips; 26 (v) does not possess proof of automobile liability insurance for the 27 motor vehicle(s) used to provide TNC prearranged trips as a TNC vehicle; 28 or 29 (vi) is not at least nineteen years of age. 30 (c) Upon review of all information received and retained by the TNC 31 and upon verifying that the individual is not disqualified pursuant to 32 this section from receiving a TNC driver permit, a TNC may issue a TNC 33 driver permit to the applicant. The TNC shall review all information 34 received relating to such applicant and hold such information for six 35 years along with a certification that such applicant qualifies to 36 receive a TNC driver permit. 37 (d) A TNC that issues a TNC driver's permit pursuant to this section 38 shall participate in the New York License Event Notification Service 39 (LENS) established by the department to obtain timely notice when any of 40 the following violations are added to a TNC driver's driving record: 41 (i) unlawfully fleeing a police officer in a motor vehicle in 42 violation of sections 270.25, 270.30 or 270.35 of the penal law; 43 (ii) reckless driving in violation of section one thousand two hundred 44 twelve of this chapter; 45 (iii) operating while license or privilege is suspended or revoked in 46 violation of section five hundred eleven of this chapter, excluding 47 subdivision seven of such section; 48 (iv) operating a motor vehicle under the influence of alcohol or drugs 49 in violation of section one thousand one hundred ninety-two of this 50 chapter; and 51 (v) leaving the scene of an incident without reporting in violation of 52 subdivision two of section six hundred of this chapter. 53 (e) The name of a TNC driver associated with enrollment in the depart- 54 ment's LENS reporting system is designated confidential whether or not 55 so marked, is not subject to disclosure to a third party by the depart- 56 ment without prior consent of the TNC, and is exempt from disclosureS. 2008--A 24 A. 3008--A 1 pursuant to article six of the public officers law. Nothing in this 2 section shall be construed as limiting the applicability of any other 3 exemptions under article six of the public officers law. 4 (f) No person shall operate a TNC vehicle or operate as a TNC driver 5 unless such person holds a valid TNC driver permit issued pursuant to 6 this section. A violation of this paragraph shall be a traffic infrac- 7 tion punishable by a fine of not less than seventy-five nor more than 8 three hundred dollars, or by imprisonment for not more than fifteen 9 days, or by both such fine and imprisonment. 10 2. A TNC shall implement a zero-tolerance policy regarding a TNC driv- 11 er's activities while accessing the TNC's digital network. Such policy 12 shall address the issue of operating a vehicle under the influence of 13 alcohol or drugs while a TNC driver is providing TNC prearranged trips 14 or is logged onto the TNC's digital network but is not providing TNC 15 prearranged trips, and the TNC shall provide notice of this policy on 16 its digital network, as well as procedures to report a complaint about a 17 TNC driver with whom a TNC prearranged trip was commenced and whom the 18 passenger reasonably suspects was operating a vehicle under the influ- 19 ence of alcohol or drugs during the course of the TNC prearranged trip. 20 3. (a) A TNC shall adopt a policy of non-discrimination on the basis 21 of destination, race, color, national origin, religious belief, practice 22 or affiliation, sex, disability, age, sexual orientation, gender identi- 23 ty, or genetic predisposition with respect to passengers and potential 24 passengers and notify TNC drivers of such policy. 25 (b) TNC drivers shall comply with all applicable laws regarding non- 26 discrimination against passengers or potential passengers on the basis 27 of destination, race, color, national origin, religious belief, practice 28 or affiliation, sex, disability, age, sexual orientation, gender identi- 29 ty, or genetic predisposition. 30 (c) TNC drivers shall comply with all applicable laws relating to 31 accommodation of service animals. 32 (d) A TNC shall implement and maintain a policy of providing accessi- 33 bility to passengers or potential passengers with a disability and 34 accommodation of service animals as such term is defined in section one 35 hundred twenty-three-b of the agriculture and markets law and shall to 36 the extent practicable adopt findings established by the New York state 37 TNC accessibility task force adopted pursuant to section eighteen of the 38 chapter of the laws of two thousand seventeen that added this section. 39 A TNC shall not impose additional charges for providing services to 40 persons with physical disabilities because of those disabilities. 41 4. A TNC shall require that any motor vehicle(s) that a TNC driver 42 will use as a TNC vehicle to provide TNC prearranged trips meets appli- 43 cable New York state vehicle safety and emissions requirements, as set 44 forth in section three hundred one of this chapter, or the vehicle safe- 45 ty and emissions requirements of the state in which the vehicle is 46 registered. 47 5. A TNC driver shall display a consistent and distinctive trade dress 48 consisting of a removable logo, insignia, or emblem at all times the 49 driver is providing TNC services. The trade dress shall be: 50 (a) Sufficiently large and color contrasted so as to be readable 51 during daylight hours at a distance of fifty feet; and 52 (b) Reflective, illuminated, or otherwise patently visible in the 53 darkness. 54 § 1697. Maintenance of records. A TNC shall maintain the following 55 records:S. 2008--A 25 A. 3008--A 1 1. individual trip records for at least six years from the date each 2 trip was provided; and 3 2. individual records of TNC drivers at least until the six year anni- 4 versary of the date on which a TNC driver's relationship with the TNC 5 has ended. 6 § 1698. Audit procedures; confidentiality of records. 1. For the sole 7 purpose of verifying that a TNC is in compliance with the requirements 8 of this article and no more than biannually, the department shall 9 reserve the right to visually inspect a sample of records that the TNC 10 is required to maintain, upon request by the department that shall be 11 fulfilled in no less than thirty business days by the TNC. The sample 12 shall be chosen randomly by the department in a manner agreeable to both 13 parties. The audit shall take place at a mutually agreed location in New 14 York. Any record furnished to the department may exclude information 15 that would tend to identify specific drivers or passengers. 16 2. (a) The TNC shall establish a complaint procedure that allows 17 passengers to file complaints with the TNC through the TNC's website, 18 mobile application, email address, or phone number. 19 (b) The TNC's website shall also provide a passenger complaint tele- 20 phone number and/or website address for the department, if applicable. 21 (c) In response to a specific complaint against any TNC driver or TNC, 22 the department is authorized to inspect records held by the TNC that are 23 necessary to investigate and resolve the complaint. The TNC and the 24 department shall endeavor to have the inspection take place at a mutual- 25 ly agreed location in New York. Any record furnished to the department 26 may exclude information that would tend to identify specific drivers or 27 passengers, unless the identity of a driver or passenger is relevant to 28 the complaint. 29 (d) Any records inspected by the department under this section are 30 designated confidential, are not subject to disclosure to a third party 31 by the department without prior consent of the TNC, and are exempt from 32 disclosure under article six of the public officers law. Nothing in this 33 section shall be construed as limiting the applicability of any other 34 exemption under article six of the public officers law. 35 3. The department shall promulgate regulations for the filing of 36 complaints pursuant to this section. 37 § 1699. Criminal history background check of transportation network 38 company drivers. 1. A TNC shall conduct a criminal history background 39 check using a lawful method approved by the department pursuant to para- 40 graph (a) of subdivision two of this section for persons applying to 41 drive for such company. 42 2. (a) The method used to conduct a criminal history background check 43 pursuant to subdivision one of this section shall be established in 44 regulations adopted by the department within thirty days of the effec- 45 tive date of this subdivision. Such regulations shall establish the 46 method used to conduct such background checks and any processes and 47 operations necessary to complete such checks. The review of criminal 48 history information and determinations about whether or not an applicant 49 is issued a TNC driver permit shall be controlled by paragraphs (b), (c) 50 and (d) of this subdivision. 51 (b) An applicant shall be disqualified to receive a TNC driver permit 52 where he or she: 53 (i) stands convicted in the last three years of: unlawful fleeing a 54 police officer in a motor vehicle in violation of sections 270.35, 55 270.30 or 270.25 of the penal law, reckless driving in violation of 56 section twelve hundred twelve of this chapter, operating while licenseS. 2008--A 26 A. 3008--A 1 or privilege is suspended or revoked in violation of section five 2 hundred eleven of this chapter, excluding subdivision seven of such 3 section, a misdemeanor offense of operating a motor vehicle while under 4 the influence of alcohol or drugs in violation of section one thousand 5 one hundred ninety-two of this chapter, or leaving the scene of an acci- 6 dent in violation of subdivision two of section six hundred of this 7 chapter. In calculating the three year period under this subparagraph, 8 any period of time during which the person was incarcerated after the 9 commission of such offense shall be excluded and such three year period 10 shall be extended by a period or periods equal to the time spent incar- 11 cerated and shall be determined in a manner consistent with regulations 12 established by the department; or 13 (ii) stands convicted in the last seven years of: a sex offense 14 defined in subdivision two of section one hundred sixty-eight-a of the 15 correction law, a felony offense defined in article one hundred twenty- 16 five of the penal law, a violent felony offense defined in section 70.02 17 of the penal law, a class A felony offense defined in the penal law, 18 vehicular assault as defined in section 120.03, 120.04 or 120.04-a of 19 the penal law, a felony offense defined in section eleven hundred nine- 20 ty-two of this chapter, an offense for which registration as a sex 21 offender is required pursuant to article six-C of the correction law, or 22 any conviction of an offense in any other jurisdiction that has all the 23 essential elements of an offense listed in this subparagraph. In calcu- 24 lating the seven year period under this subparagraph, any period of time 25 during which the person was incarcerated after the commission of such 26 offense shall be excluded and such seven year period shall be extended 27 by a period or periods equal to the time spent incarcerated and shall be 28 determined in a manner consistent with regulations established by the 29 department. 30 (c) A criminal history record that contains criminal conviction infor- 31 mation that does not disqualify an applicant pursuant to subparagraphs 32 (i) or (ii) of paragraph (b) of this subdivision, shall be reviewed and 33 considered according to the provisions of article twenty-three-A of the 34 correction law and subdivisions fifteen and sixteen of section two 35 hundred ninety-six of the executive law in determining whether or not 36 the applicant should be issued a TNC driver's permit. 37 (d) Upon receipt of criminal conviction information pursuant to this 38 section for any applicant, such applicant shall promptly be provided 39 with a copy of such information as well as a copy of article twenty- 40 three-A of the correction law. Such applicant shall also be informed of 41 his or her right to seek correction of any incorrect information 42 contained in such criminal history information pursuant to the regu- 43 lations and procedures established by the division of criminal justice 44 services. 45 (e) The department shall promulgate regulations consistent with the 46 provisions of this subdivision. 47 3. A TNC shall update the criminal history background check yearly 48 during the period in which the person is authorized to drive for the 49 company, however, the commissioner may require, pursuant to regulation, 50 more frequent criminal history background checks. 51 4. A TNC shall be responsible for all fees associated with the crimi- 52 nal history check pursuant to subdivision one of this section. 53 5. Any TNC found to have negligently, recklessly, or intentionally 54 violated any requirements established pursuant to this section, shall on 55 the first instance, be subject to a civil penalty of not more than ten 56 thousand dollars. For any subsequent instance within the period of twoS. 2008--A 27 A. 3008--A 1 years from any initial violation, such TNC shall be subject to a civil 2 penalty of not more than fifty thousand dollars, or the suspension or 3 revocation of its TNC license or both. 4 § 1700. Controlling authority. 1. Notwithstanding any other provision 5 of law, the regulation of TNCs and TNC drivers is governed exclusively 6 by the provisions of the chapter of the laws of two thousand seventeen 7 which added this section and any rules promulgated by the state through 8 its agencies consistent with such chapter. No county, town, city or 9 village may enact a tax or any fee or other surcharge on a TNC, a TNC 10 driver, or a TNC vehicle used by a TNC driver or require a license, 11 permit, or additional insurance coverage or any other limitations or 12 restrictions, where such fee, surcharge, unauthorized tax, license, 13 permit, insurance coverage, limitation or restriction, relates to facil- 14 itating or providing TNC prearranged trips, or subjects a TNC, a TNC 15 driver, or a TNC vehicle used by a TNC driver to operational, or other 16 requirements. 17 2. Nothing in this article shall authorize any TNC driver to pick-up a 18 passenger for purposes of a TNC prearranged trip in a city with a popu- 19 lation of one million or more. 20 3. Nothing in this article shall: (a) limit the ability of a county, 21 town, city or village to adopt or amend generally applicable limitations 22 or restrictions relating to local traffic or parking control as author- 23 ized by state law; or (b) to preempt any reciprocity agreements, includ- 24 ing agreements entered into pursuant to section four hundred ninety- 25 eight of this chapter, between a county, town, city or village that 26 relates to services regulated by section one hundred eighty-one of the 27 general municipal law. 28 § 3. Section 370 of the vehicle and traffic law is amended by adding a 29 new subdivision 8 to read as follows: 30 8. Notwithstanding any other provision of this article, an individual 31 shall not be deemed to be engaged in the business of carrying or trans- 32 porting passengers for hire if the individual does so solely as a trans- 33 portation network company driver in accordance with article forty-four-B 34 of this chapter. 35 § 4. Subdivision 1 of section 312-a of the vehicle and traffic law, as 36 amended by chapter 781 of the laws of 1983, is amended to read as 37 follows: 38 1. Upon issuance of an owner's policy of liability insurance or other 39 financial security required by this chapter or the article forty-four-B 40 of this chapter, an insurer shall issue proof of insurance in accordance 41 with the regulations promulgated by the commissioner pursuant to para- 42 graph (b) of subdivision two of section three hundred thirteen of this 43 article. 44 § 5. Section 600 of the vehicle and traffic law, as amended by chapter 45 49 of the laws of 2005, is amended to read as follows: 46 § 600. Leaving scene of an incident without reporting. 1. Property 47 damage. a. Any person operating a motor vehicle who, knowing or having 48 cause to know that damage has been caused to the real property or to the 49 personal property, not including animals, of another, due to an incident 50 involving the motor vehicle operated by such person shall, before leav- 51 ing the place where the damage occurred, stop, exhibit his or her 52 license and insurance identification card for such vehicle, when such 53 card is required pursuant to articles six and eight of this chapter, and 54 give his or her name, residence, including street and number, insurance 55 carrier and insurance identification information including but not 56 limited to the number and effective dates of said individual's insuranceS. 2008--A 28 A. 3008--A 1 policy, and license number to the party sustaining the damage, or in 2 case the person sustaining the damage is not present at the place where 3 the damage occurred then he or she shall report the same as soon as 4 physically able to the nearest police station, or judicial officer. In 5 addition to the foregoing, any such person shall also: (i) produce the 6 proof of insurance coverage required pursuant to article forty-four-B of 7 this chapter if such person is a TNC driver operating a TNC vehicle 8 while the incident occurred who was either (A) logged on to the TNC's 9 digital network and available to receive transportation requests but not 10 engaged in a TNC prearranged trip or (B) was logged on to the TNC's 11 digital network and was engaged in a TNC prearranged trip; and (ii) 12 disclose whether he or she, at the time such incident occurred, was 13 either (A) logged on to the TNC's digital network and available to 14 receive transportation requests but not engaged in a TNC prearranged 15 trip or (B) was logged on to the TNC's digital network and was engaged 16 in a TNC prearranged trip. 17 b. It shall be the duty of any member of a law enforcement agency who 18 is at the scene of the accident to request the said operator or opera- 19 tors of the motor vehicles, when physically capable of doing so, to 20 exchange the information required hereinabove and such member of a law 21 enforcement agency shall assist such operator or operators in making 22 such exchange of information in a reasonable and harmonious manner. 23 A violation of the provisions of paragraph a of this subdivision shall 24 constitute a traffic infraction punishable by a fine of up to two 25 hundred fifty dollars or a sentence of imprisonment for up to fifteen 26 days or both such fine and imprisonment. 27 2. Personal injury. a. Any person operating a motor vehicle who, 28 knowing or having cause to know that personal injury has been caused to 29 another person, due to an incident involving the motor vehicle operated 30 by such person shall, before leaving the place where the said personal 31 injury occurred, stop, exhibit his or her license and insurance iden- 32 tification card for such vehicle, when such card is required pursuant to 33 articles six and eight of this chapter, and give his or her name, resi- 34 dence, including street and street number, insurance carrier and insur- 35 ance identification information including but not limited to the number 36 and effective dates of said individual's insurance policy and license 37 number, to the injured party, if practical, and also to a police offi- 38 cer, or in the event that no police officer is in the vicinity of the 39 place of said injury, then, he or she shall report said incident as soon 40 as physically able to the nearest police station or judicial officer. 41 In addition to the foregoing, any such person shall also: (i) produce 42 the proof of insurance coverage required pursuant to article 43 forty-four-B of this chapter if such person is a TNC driver operating a 44 TNC vehicle at the time of the incident who was either (A) logged on to 45 the TNC's digital network and available to receive transportation 46 requests but not engaged in a TNC prearranged trip or (B) was logged on 47 to the TNC's digital network and was engaged in a TNC prearranged trip; 48 and (ii) disclose whether he or she, at the time such incident occurred, 49 was either (A) logged on to the TNC's digital network and available to 50 receive transportation requests but not engaged in a TNC prearranged 51 trip or (B) was logged on to the TNC's digital network and was engaged 52 in a TNC prearranged trip. 53 b. It shall be the duty of any member of a law enforcement agency who 54 is at the scene of the accident to request the said operator or opera- 55 tors of the motor vehicles, when physically capable of doing so, to 56 exchange the information required hereinabove and such member of a lawS. 2008--A 29 A. 3008--A 1 enforcement agency shall assist such operator or operators in making 2 such exchange of information in a reasonable and harmonious manner. 3 c. A violation of the provisions of paragraph a of this subdivision 4 resulting solely from the failure of an operator to exhibit his or her 5 license and insurance identification card for the vehicle or exchange 6 the information required in such paragraph shall constitute a class B 7 misdemeanor punishable by a fine of not less than two hundred fifty nor 8 more than five hundred dollars in addition to any other penalties 9 provided by law. Any subsequent such violation shall constitute a class 10 A misdemeanor punishable by a fine of not less than five hundred nor 11 more than one thousand dollars in addition to any other penalties 12 provided by law. Any violation of the provisions of paragraph a of this 13 subdivision, other than for the mere failure of an operator to exhibit 14 his or her license and insurance identification card for such vehicle or 15 exchange the information required in such paragraph, shall constitute a 16 class A misdemeanor, punishable by a fine of not less than five hundred 17 dollars nor more than one thousand dollars in addition to any other 18 penalties provided by law. Any such violation committed by a person 19 after such person has previously been convicted of such a violation 20 shall constitute a class E felony, punishable by a fine of not less than 21 one thousand nor more than two thousand five hundred dollars in addition 22 to any other penalties provided by law. Any violation of the provisions 23 of paragraph a of this subdivision, other than for the mere failure of 24 an operator to exhibit his or her license and insurance identification 25 card for such vehicle or exchange the information required in such para- 26 graph, where the personal injury involved (i) results in serious phys- 27 ical injury, as defined in section 10.00 of the penal law, shall consti- 28 tute a class E felony, punishable by a fine of not less than one 29 thousand nor more than five thousand dollars in addition to any other 30 penalties provided by law, or (ii) results in death shall constitute a 31 class D felony punishable by a fine of not less than two thousand nor 32 more than five thousand dollars in addition to any other penalties 33 provided by law. 34 3. For the purposes of this article, the terms "TNC", "TNC driver", 35 "TNC vehicle", "TNC prearranged trip" and "digital network" shall have 36 the same meanings as such terms are defined in article forty-four-B of 37 this chapter. 38 § 5-a. Section 601 of the vehicle and traffic law, as amended by chap- 39 ter 672 of the laws of 2004, is amended to read as follows: 40 § 601. Leaving scene of injury to certain animals without reporting. 41 Any person operating a motor vehicle which shall strike and injure any 42 horse, dog, cat or animal classified as cattle shall stop and endeavor 43 to locate the owner or custodian of such animal or a police, peace or 44 judicial officer of the vicinity, and take any other reasonable and 45 appropriate action so that the animal may have necessary attention, and 46 shall also promptly report the matter to such owner, custodian or offi- 47 cer (or if no one of such has been located, then to a police officer of 48 some other nearby community), exhibiting his or her license and insur- 49 ance identification card for such vehicle, when such card is required 50 pursuant to articles six and eight of this chapter, giving his or her 51 name and residence, including street and street number, insurance carri- 52 er and insurance identification information and license number. In addi- 53 tion to the foregoing, any such person shall also: (i) produce the proof 54 of insurance coverage required pursuant to article forty-four-B of this 55 chapter is such person is a TNC driver operating a TNC vehicle at the 56 time of the incident who was either (A) logged on to the TNC's digitalS. 2008--A 30 A. 3008--A 1 network and available to receive transportation requests but not engaged 2 in a TNC prearranged trip or (B) was logged on to the TNC's digital 3 network and was engaged in a TNC prearranged trip and (ii) disclose 4 whether he or she, at the time such incident occurred, was either (A) 5 logged on to the TNC's digital network and available to receive trans- 6 portation requests but not engaged in a TNC prearranged trip or (B) was 7 logged on to the TNC's digital network and was engaged in a TNC prear- 8 ranged trip. Violation of this section shall be punishable by a fine of 9 not more than one hundred dollars for a first offense and by a fine of 10 not less than fifty nor more than one hundred fifty dollars for a second 11 offense and each subsequent offense; provided, however where the animal 12 that has been struck and injured is a guide dog, hearing dog or service 13 dog, as such terms are defined in section forty-seven-b of the civil 14 rights law which is actually engaged in aiding or guiding a person with 15 a disability, a violation of this section shall be [publishable] punish- 16 able by a fine of not less than fifty nor more than one hundred fifty 17 dollars for a first offense and by a fine of not less than one hundred 18 fifty dollars nor more than three hundred dollars for a second offense 19 and each subsequent offense. 20 § 6. The insurance law is amended by adding a new section 3455 to read 21 as follows: 22 § 3455. Transportation network company group insurance policies. (a) 23 For purposes of this section, the following definitions shall apply: 24 (1) "Transportation network company" shall have the same meaning as 25 set forth in article forty-four-B of the vehicle and traffic law. 26 (2) "Certificate" or "certificate of insurance" means any policy, 27 contract or other evidence of insurance, or endorsement thereto, issued 28 to a group member under a transportation network company group policy. 29 (3) "Transportation network company group policy" or "group policy" 30 means a group policy, including certificates issued to the group 31 members, where the group policyholder is a transportation network compa- 32 ny and the policy provides insurance to the transportation network 33 company and to group members: 34 (A) in accordance with the requirements of article forty-four-B of the 35 vehicle and traffic law; 36 (B) of the type described in paragraph thirteen, fourteen, or nineteen 37 of subsection (a) of section one thousand one hundred thirteen of this 38 chapter; and 39 (C) in satisfaction of the financial responsibility requirements set 40 forth in section three thousand four hundred twenty of this article, 41 subdivision four of section three hundred eleven of the vehicle and 42 traffic law, article fifty-one of this chapter, and such other require- 43 ments or regulations that may apply for the purposes of satisfying the 44 financial responsibility requirements with respect to the use or opera- 45 tion of a motor vehicle. 46 (4) "Group member" means a transportation network company driver as 47 defined in article forty-four-B of the vehicle and traffic law. 48 (5) "Group policyholder" means a transportation network company. 49 (6) "TNC vehicle" shall have the meaning set forth in article forty- 50 four-B of the vehicle and traffic law. 51 (b) An insurer may issue or issue for delivery in this state a trans- 52 portation network company group policy to a transportation network 53 company as a group policyholder only in accordance with the provisions 54 of this section.S. 2008--A 31 A. 3008--A 1 (c)(1) A transportation network company group policy shall provide 2 coverage for a TNC vehicle in accordance with the requirements of arti- 3 cle forty-four-B of the vehicle and traffic law. 4 (2) A transportation network company group policy may provide: 5 (A) coverage for limits higher than the minimum limits required pursu- 6 ant to article forty-four-B of the vehicle and traffic law. 7 (B) supplementary uninsured/underinsured motorists insurance for bodi- 8 ly injury pursuant to paragraph two of subsection (f) of section three 9 thousand four hundred twenty of this article; 10 (C) supplemental spousal liability insurance pursuant to subsection 11 (g) of section three thousand four hundred twenty of this chapter; and 12 (D) motor vehicle physical damage coverage as described in paragraph 13 nineteen of subsection (a) of section one thousand one hundred thirteen 14 of this chapter. 15 (3) The coverage described in paragraphs one and two of this 16 subsection may be provided in one group policy or in separate group 17 policies. 18 (4) A transportation network company group policy, including certif- 19 icates, shall be issued by authorized insurers or from excess line 20 brokers pursuant to section sixteen hundred ninety-three of the vehicle 21 and traffic law. 22 (5) A policyholder also may be an insured under a group policy. 23 (d) The premium for the transportation network company group policy, 24 including certificates may be paid by the group policyholder from the 25 funds contributed: 26 (1) wholly by the group policyholder; 27 (2) wholly by the group members; or 28 (3) jointly by the group policyholder and the group members. 29 (e) (1) Any policy dividend, retrospective premium credit, or retro- 30 spective premium refund in respect of premiums paid by the group policy- 31 holder may: 32 (A) be applied to reduce the premium contribution of the group policy- 33 holder, but not in excess of the proportion to its contribution; or 34 (B) be retained by the group policyholder. 35 (2) Any policy dividend, retrospective premium credit, or retrospec- 36 tive premium refund not distributed under paragraph one of this 37 subsection shall be: 38 (A) applied to reduce future premiums and, accordingly, future 39 contributions, of existing or future group members, or both; or 40 (B) paid or refunded to those group members insured on the date the 41 payment or refund is made to the group policyholder, if distributed by 42 the group policyholder, or on the date of mailing, if distributed 43 directly by the insurer, subject to the following requirements: 44 (i) The insurer shall be responsible for determining the allocation of 45 the payment of refund to the group members; 46 (ii) If the group policyholder distributes the payment or refund, the 47 insurer shall be responsible for audit to ascertain that the payment or 48 refund is actually made in accordance with the allocation procedure; and 49 (iii) If the group policyholder fails to make the payment or refund, 50 the insurer shall make the payment or refund directly or use the method 51 provided in subparagraph (A) of this paragraph. 52 (3) Notwithstanding paragraphs one and two of this subsection, if a 53 dividend accrues upon termination of coverage under a transportation 54 network company group policy, the premium for which was paid out of 55 funds contributed by group members specifically for the coverage, the 56 dividend shall be paid or refunded by the group policyholder to theS. 2008--A 32 A. 3008--A 1 group members insured on the date the payment or refund is made to the 2 group policyholder, net of reasonable expenses incurred by the group 3 policyholder in paying or refunding the dividend to such group members. 4 (4) For the purposes of this subsection, "dividend" means a return by 5 the insurer of a transportation network company group policy of excess 6 premiums to the group policyholder in light of favorable loss experi- 7 ence, including retrospective premium credits or retrospective premium 8 refunds. The term "dividend" does not include reimbursements or fees 9 received by a group policyholder in connection with the operation or 10 administration of a transportation network company group policy, includ- 11 ing administrative reimbursements, fees for services provided by the 12 group policyholder, or transactional service fees. 13 (f) The insurer shall treat in like manner all eligible group members 14 of the same class and status. 15 (g) Each policy written pursuant to this section shall provide per 16 occurrence limits of coverage for each group member in an amount not 17 less than that required by this article, and may provide coverage for 18 limits higher than the minimum limits required under the law. 19 (h) (1) The insurer shall be responsible for mailing or delivery of a 20 certificate of insurance to each group member insured under the trans- 21 portation network company group policy, provided, however, that the 22 insurer may delegate the mailing or delivery to the transportation 23 network company. The insurer shall also be responsible for the mailing 24 or delivery to each group member of an amended certificate of insurance 25 or endorsement to the certificate, whenever there is a change in limits; 26 change in type of coverage; addition, reduction, or elimination of 27 coverage; or addition of exclusion, under the transportation network 28 company group policy or certificate if such change materially affects 29 the coverage available to such group member. 30 (2) The certificate shall contain in substance all material terms and 31 conditions of coverage afforded to group members, unless the transporta- 32 tion network company group policy is incorporated by reference and a 33 copy of the group policy accompanies the certificate. 34 (3) If any coverage afforded to the group member is excess of applica- 35 ble insurance coverage, the certificate shall contain a notice advising 36 the group members that, if the member has other insurance coverage, 37 specified coverages under the transportation network company group poli- 38 cy will be excess over the other insurance. 39 (i) A group policyholder shall comply with the provisions of section 40 two thousand one hundred twenty-two of this chapter, in the same manner 41 as an agent or broker, in any advertisement, sign, pamphlet, circular, 42 card, or other public announcement referring to coverage under a trans- 43 portation network company group policy or certificate. 44 (j) A transportation network company group policy shall not be subject 45 to section three thousand four hundred twenty-five or section three 46 thousand four hundred twenty-six of this article; provided that the 47 following requirements shall apply with regard to termination of cover- 48 age: 49 (1)(A) An insurer may terminate a group policy or certificate only if 50 cancellation is based on one or more of the reasons set forth in subpar- 51 agraph (A) through (D) or (F) through (H) of paragraph one of subsection 52 (c) of section three thousand four hundred twenty-six of this article; 53 provided, however, that an act or omission by a group member that would 54 constitute the basis for cancellation of an individual certificate shall 55 not constitute the basis for cancellation of the group policy.S. 2008--A 33 A. 3008--A 1 (B) Where the premium is derived wholly from funds contributed by the 2 group policyholder, an insurer may cancel an individual certificate only 3 if cancellation is based on one or more of the reasons set forth in 4 subparagraph (B), (C) or (H) of paragraph one of subsection (c) of 5 section three thousand four hundred twenty-six of this article. 6 (2) (A) An insurer's cancellation of a group policy, including all 7 certificates, shall not become effective until thirty days after the 8 insurer mails or delivers written notice of cancellation to the group 9 policyholder at the mailing address shown in the policy. 10 (i) Where all or part of the premium is derived from funds contributed 11 by the group member specifically for the coverage, the insurer shall 12 also mail or deliver written notice of cancellation of the group policy 13 to the group member at the group member's mailing address. Such cancel- 14 lation shall not become effective until thirty days after the insurer 15 mails or delivers the written notice to the group member. 16 (ii) Where none of the premium is derived from funds contributed by a 17 group member specifically for the coverage, the group policy holder 18 shall mail or deliver written notice to the group member advising the 19 group member of the cancellation of the group policy and the effective 20 date of cancellation. The group policy holder shall mail or deliver the 21 written notice within ninety days after receiving notice of cancellation 22 from the insurer. 23 (B) An insurer's cancellation of an individual certificate shall not 24 become effective until thirty days after the insurer mails or delivers 25 written notice of cancellation to the group member at the group member's 26 mailing address and to the group policyholder at the mailing address 27 shown in the group policy. 28 (3) (A) A group policyholder may cancel a group policy, including all 29 certificates, or any individual certificate, for any reason upon thirty 30 days written notice to the insurer and each group member; and 31 (B) The group policyholder shall mail or deliver written notice to 32 each affected group member of the group policyholder's cancellation of 33 the group policy or certificate and the effective date of cancellation. 34 The group policyholder shall mail or deliver the written notice to the 35 group member's mailing address at least thirty days prior to the effec- 36 tive date of cancellation. 37 (4) (A) Unless a group policy provides for a longer policy period, the 38 policy and all certificates shall be issued or renewed for a one-year 39 policy period. 40 (B) The group policyholder shall be entitled to renew the group policy 41 and all certificates upon timely payment of the premium billed to the 42 group policyholder for the renewal, unless: 43 (i) the insurer mails or delivers to the group policyholder and all 44 group members written notice of nonrenewal, or conditional renewal; and 45 (ii) the insurer mails or delivers the written notice at least thirty, 46 but not more than one hundred twenty days prior to the expiration date 47 specified in the policy or, if no date is specified, the next anniver- 48 sary date of the policy. 49 (5) Where the group policyholder nonrenews the group policy, the group 50 policyholder shall mail or deliver written notice to each group member 51 advising the group member of nonrenewal of the group policy and the 52 effective date of nonrenewal. The group policyholder shall mail or 53 deliver written notice at least thirty days prior to the nonrenewal. 54 (6) Every notice of cancellation, nonrenewal, or conditional renewal 55 shall set forth the specific reason or reasons for cancellation, nonre- 56 newal, or conditional renewal.S. 2008--A 34 A. 3008--A 1 (7) (A) An insurer shall not be required under this subsection to give 2 notice to a group member if the insurer has been advised by either the 3 group policyholder or another insurer that substantially similar cover- 4 age has been obtained from the other insurer without lapse of coverage. 5 (B) A group policyholder shall not be required under this subsection 6 to give notice to a group member if substantially similar coverage has 7 been obtained from another insurer without lapse of coverage. 8 (8) (A) If, prior to the effective date of cancellation, nonrenewal, 9 or conditional renewal of the group policy, or a certificate, whether 10 initiated by the insurer, group policyholder or by the group member in 11 regard to the group member's certificate, coverage attaches pursuant to 12 the terms of a group policy, then the coverage shall be effective until 13 expiration of the applicable period of coverage provided in the group 14 policy notwithstanding the cancellation, nonrenewal or conditional 15 nonrenewal of the group policy. 16 (B) Notwithstanding subparagraph (A) of this paragraph, an insurer may 17 terminate coverage under an individual certificate on the effective date 18 of cancellation, if the certificate is cancelled in accordance with the 19 provisions of subparagraph (B) of paragraph one of this subsection. 20 (k) Any mailing or delivery to a group member required or permitted 21 under this section may be made by electronic mail, or other electronic 22 means, if consent to such method of delivery has been previously 23 received from such group member. 24 (l) An insurer may issue a transportation network company group policy 25 to a transportation network company, notwithstanding that it may be a 26 condition of operating a vehicle on the transportation network company's 27 digital network for the TNC driver to participate in such group policy. 28 (m) An insurer shall not include a mandatory arbitration clause in a 29 policy that provides financial responsibility coverage under this 30 section except as permitted in section five thousand one hundred five of 31 this chapter. 32 § 6-a. Subsection (g) of section 5102 of the insurance law is amended 33 to read as follows: 34 (g) "Insurer" means the insurance company or self-insurer, as the case 35 may be, which provides the financial security required by article six 36 [or], eight, or forty-four-B of the vehicle and traffic law. 37 § 7. Subsection (b) of section 5103 of the insurance law is amended by 38 adding a new paragraph 4 to read as follows: 39 (4) Is injured while a motor vehicle is being used or operated by a 40 TNC driver pursuant to article forty-four-B of the vehicle and traffic 41 law, provided, however, that an insurer may not include this exclusion 42 in a policy used to satisfy the requirements under article forty-four-B 43 of the vehicle and traffic law. 44 § 8. Subsection (d) of section 5106 of the insurance law, as added by 45 chapter 452 of the laws of 2005, is amended to read as follows: 46 (d) [Where] (1) Except as provided in paragraph two of this 47 subsection, where there is reasonable belief more than one insurer would 48 be the source of first party benefits, the insurers may agree among 49 themselves, if there is a valid basis therefor, that one of them will 50 accept and pay the claim initially. If there is no such agreement, then 51 the first insurer to whom notice of claim is given shall be responsible 52 for payment. Any such dispute shall be resolved in accordance with the 53 arbitration procedures established pursuant to section five thousand one 54 hundred five of this article and [regulation] regulations as promulgated 55 by the superintendent, and any insurer paying first-party benefits shall 56 be reimbursed by other insurers for their proportionate share of theS. 2008--A 35 A. 3008--A 1 costs of the claim and the allocated expenses of processing the claim, 2 in accordance with the provisions entitled "other coverage" contained in 3 regulation and the provisions entitled "other sources of first-party 4 benefits" contained in regulation. If there is no such insurer and the 5 motor vehicle accident occurs in this state, then an applicant who is a 6 qualified person as defined in article fifty-two of this chapter shall 7 institute the claim against the motor vehicle accident indemnification 8 corporation. 9 (2) A group policy issued pursuant to section three thousand four 10 hundred fifty-five of this chapter, to satisfy the requirements of 11 section sixteen hundred ninety-three of the vehicle and traffic law, 12 shall provide first party benefits when a dispute exists as to whether a 13 driver was using or operating a motor vehicle in connection with a 14 transportation network company when loss, damage, injury, or death 15 occurs. A transportation network company shall notify the insurer that 16 issued the owner's policy of liability insurance of the dispute within 17 ten business days of becoming aware that the dispute exists. When there 18 is a dispute, the group insurer liable for the payment of first party 19 benefits under a group policy, to satisfy the requirements of section 20 sixteen hundred ninety-three of the vehicle and traffic law, shall have 21 the right to recover the amount paid from the driver's insurer to the 22 extent that such insurer would have been liable to pay damages in an 23 action at law. 24 § 9. Subsection (b) of section 2305 of the insurance law, as amended 25 by chapter 11 of the laws of 2008, paragraph 13 as amended by chapter 26 136 of the laws of 2008, is amended to read as follows: 27 (b) rate filings for: 28 (1) workers' compensation insurance; 29 (2) motor vehicle insurance, or surety bonds, required by section 30 three hundred seventy of the vehicle and traffic law or article forty- 31 four-B of the vehicle and traffic law; 32 (3) joint underwriting; 33 (4) motor vehicle assigned risk insurance; 34 (5) insurance issued by the New York Property Insurance Underwriting 35 Association; 36 (6) risk sharing plans authorized by section two thousand three 37 hundred eighteen of this article; 38 (7) title insurance; 39 (8) medical malpractice liability insurance; 40 (9) insurance issued by the Medical Malpractice Insurance Association; 41 (10) mortgage guaranty insurance; 42 (11) credit property insurance, as defined in section two thousand 43 three hundred forty of this article; [and] 44 (12) gap insurance; and 45 (13) [Private] private passenger automobile insurance, except as 46 provided in section two thousand three hundred fifty of this article[.], 47 shall be filed with the superintendent and shall not become effective 48 unless either the filing has been approved or thirty days, which the 49 superintendent may with cause extend an additional thirty days and with 50 further cause extend an additional fifteen days, have elapsed and the 51 filing has not been disapproved as failing to meet the requirements of 52 this article, including the standard that rates be not otherwise unrea- 53 sonable. After a rate filing becomes effective, the filing and support- 54 ing information shall be open to public inspection. If a filing is 55 disapproved, then notice of such disapproval order shall be given, spec- 56 ifying in what respects such filing fails to meet the requirements ofS. 2008--A 36 A. 3008--A 1 this article. Upon his or her request, the superintendent shall be 2 provided with support and assistance from the workers' compensation 3 board and other state agencies and departments with appropriate juris- 4 diction. The loss cost multiplier for each insurer providing coverage 5 for workers' compensation, as defined by regulation promulgated by the 6 superintendent, shall be promptly displayed on the department's website 7 and updated in the event of any change. 8 § 10. Paragraph 1 of subsection (a) of section 3425 of the insurance 9 law, as amended by chapter 235 of the laws of 1989, is amended to read 10 as follows: 11 (1) "Covered policy" means a contract of insurance, referred to in 12 this section as "automobile insurance", issued or issued for delivery in 13 this state, on a risk located or resident in this state, insuring 14 against losses or liabilities arising out of the ownership, operation, 15 or use of a motor vehicle, predominantly used for non-business purposes, 16 when a natural person is the named insured under the policy of automo- 17 bile insurance; provided, however, that the use or operation of the 18 motor vehicle by a transportation network driver as a TNC vehicle in 19 accordance with article forty-four-B of the vehicle and traffic law 20 shall not be included in determining whether the motor vehicle is being 21 used predominantly for non-business purposes. 22 § 11. The executive law is amended by adding a new article 6-H to read 23 as follows: 24 ARTICLE 6-H 25 TRANSPORTATION NETWORK COMPANY DRIVER'S 26 INJURY COMPENSATION FUND 27 Section 160-aaaa. Definitions. 28 160-bbbb. Transportation network company driver's injury compen- 29 sation fund, Inc. 30 160-cccc. Supervision of transportation network companies. 31 160-dddd. Management of the fund. 32 160-eeee. Plan of operation. 33 160-ffff. Membership. 34 160-gggg. Securing of compensation. 35 160-hhhh. Assessment of fund members. 36 160-iiii. Certified financial statements. 37 160-jjjj. Exemption from taxes. 38 160-kkkk. Liability insurance. 39 160-llll. Regulations. 40 160-mmmm. Violations. 41 § 160-aaaa. Definitions. As used in this article: 42 1. "Transportation network company driver" or "TNC driver" means an 43 individual who: 44 (a) receives connections to potential passengers and related services 45 from a transportation network company in exchange for payment of a fee 46 to the transportation network company; 47 (b) uses a TNC vehicle to offer or provide a TNC prearranged trip to 48 transportation network company passengers upon connection through a 49 digital network controlled by a transportation network company in 50 exchange for compensation or payment of a fee; and 51 (c) whose injury arose out of and in the course of providing a TNC 52 prearranged trip through a digital network operated by a transportation 53 network company that is a registered member of the New York transporta- 54 tion network company driver's injury compensation fund, Inc. 55 2. "Transportation network company passenger" or "passenger" means a 56 person or persons who use a transportation network company's digitalS. 2008--A 37 A. 3008--A 1 network to connect with a transportation network company driver who 2 provides TNC prearranged trips to the passenger in the TNC vehicle 3 between points chosen by the passenger. 4 3. "Board" means the workers' compensation board. 5 4. "Digital network" means any system or service offered or utilized 6 by a transportation network company that enables TNC prearranged trips 7 with transportation network company drivers. 8 5. "Transportation network company" means a person, corporation, part- 9 nership, sole proprietorship, or other entity that is licensed pursuant 10 to article forty-four-B of the vehicle and traffic law and is operating 11 in New York state exclusively using a digital network to connect trans- 12 portation network company passengers to transportation network company 13 drivers who provide TNC prearranged trips. 14 6. "Transportation network company vehicle" or "TNC vehicle" means a 15 vehicle that is: 16 (a) used by a transportation network company driver to provide a TNC 17 prearranged trip originating in the state of New York; 18 (b) owned, leased or otherwise authorized for use by the transporta- 19 tion network company driver and shall not include: 20 (i) a taxicab, as defined in section one hundred forty-eight-a of the 21 vehicle and traffic law and section 19-502 of the administrative code of 22 the city of New York, or as otherwise defined in local law; 23 (ii) a livery vehicle, as defined in section one hundred twenty-one-e 24 of the vehicle and traffic law, or as otherwise defined in local law; 25 (iii) a black car, limousine, or luxury limousine, as defined in 26 section 19-502 of the administrative code of the city of New York, or as 27 otherwise defined in local law; 28 (iv) a for-hire vehicle, as defined in section 19-502 of the adminis- 29 trative code of the city of New York, or as otherwise defined in local 30 law; 31 (v) a bus, as defined in section one hundred four of the vehicle and 32 traffic law; 33 (vi) any motor vehicle weighing more than six thousand five hundred 34 pounds unloaded; 35 (vii) any motor vehicle having a seating capacity of more than seven 36 passengers; and 37 (viii) any motor vehicle subject to section three hundred seventy of 38 the vehicle and traffic law. 39 7. (a) "TNC prearranged trip" means the provision of transportation by 40 a transportation network company driver to a passenger provided through 41 the use of a TNC's digital network: 42 (i) beginning when a transportation network company driver accepts a 43 passenger's request for a trip through a digital network controlled by a 44 transportation network company; 45 (ii) continuing while the transportation network company driver trans- 46 ports the requesting passenger in a TNC vehicle; and 47 (iii) ending when the last requesting passenger departs from the TNC 48 vehicle. 49 (b) The term "TNC prearranged trip" does not include transportation 50 provided through any of the following: 51 (i) shared expense carpool or vanpool arrangements, including those as 52 defined in section one hundred fifty-eight-b of the vehicle and traffic 53 law; 54 (ii) use of a taxicab, livery, luxury limousine, or other for-hire 55 vehicle, as defined in the vehicle and traffic law, section 19-502 ofS. 2008--A 38 A. 3008--A 1 the administrative code of the city of New York, or as otherwise defined 2 in local law; or 3 (iii) a regional transportation provider. 4 8. "Covered services" means, with respect to TNC prearranged trips 5 using a digital network of a transportation network company located in 6 the state, all such TNC prearranged trips regardless of where the pick- 7 up or discharge occurs, and, with respect to TNC prearranged trips using 8 a digital network of a transportation network company located outside 9 the state, all prearranged trips involving a pick-up in the state, 10 regardless of where the discharge occurs. 11 9. "Department" means the department of state. 12 10. "Fund" means the New York transportation network company driver's 13 fund, Inc. 14 11. "Fund liability date" means the earlier of: 15 (a) The date as of which the board first approves the fund's applica- 16 tion to self-insure pursuant to section one hundred sixty-gggg of this 17 article; or 18 (b) The date on which coverage commences under the initial insurance 19 policy purchased by the fund pursuant to section one hundred sixty-gggg 20 of this article. 21 12. "Secretary" means the secretary of state. 22 § 160-bbbb. Transportation network company driver's injury compen- 23 sation fund, Inc. There is hereby created a not-for-profit corporation 24 to be known as the New York transportation network company driver's 25 injury compensation fund, Inc. To the extent that the provisions of the 26 not-for-profit corporation law do not conflict with the provisions of 27 this article, or with the plan of operation established pursuant to this 28 article, the not-for-profit corporation law shall apply to the fund, 29 which shall be a type C corporation pursuant to such law. If an applica- 30 ble provision of this article or of the fund's plan of operation relates 31 to a matter embraced in a provision of the not-for-profit corporation 32 law but is not in conflict therewith, both provisions shall apply. The 33 fund shall perform its functions in accordance with its plan of opera- 34 tion established and approved pursuant to section one hundred sixty-eeee 35 of this article and shall exercise its powers through a board of direc- 36 tors established pursuant to this article. 37 § 160-cccc. Supervision of transportation network companies. A trans- 38 portation network company shall, with respect to the provisions of this 39 article, be subject to the supervision and oversight of the department 40 as provided in this article. 41 § 160-dddd. Management of the fund. 1. Within thirty (30) days of the 42 effective date of this article, there shall be appointed a board of 43 directors of the fund. The board of directors of the fund shall consist 44 of nine directors appointed by the governor, one of whom shall be chosen 45 by the governor; one of whom shall be chosen upon nomination of the 46 temporary president of the senate; one of whom shall be chosen upon 47 nomination of the speaker of the assembly; one of whom shall be chosen 48 upon nomination of the american federation of labor-congress of indus- 49 trial organizations of New York; and five of whom shall be chosen upon 50 nomination of transportation network company members of the fund. 51 2. The directors shall elect annually from among their number a chair. 52 3. For their attendance at meetings, the directors of the fund shall 53 be entitled to compensation, as authorized by the directors, in an 54 amount not to exceed five hundred dollars per meeting per director and 55 to reimbursement of their actual and necessary expenses.S. 2008--A 39 A. 3008--A 1 4. Directors of the fund, except as otherwise provided by law, may 2 engage in private or public employment or in a profession or business. 3 5. (a) All of the directors shall have equal voting rights and five or 4 more directors shall constitute a quorum. The affirmative vote of four 5 directors shall be necessary for the transaction of any business or the 6 exercise of any power or function of the fund. 7 (b) The fund may delegate to one or more of its directors, officers, 8 agents, or employees such powers and duties as it may deem proper. 9 (c) A vacancy occurring in a director position shall be filled in the 10 same manner as the initial appointment to that position, provided howev- 11 er that no individual may serve as director for more than three succes- 12 sive terms. 13 § 160-eeee. Plan of operation. 1. Within seventy-five days of the 14 effective date of this article, the fund shall file with the department 15 its plan of operation, which shall be designed to assure the fair, 16 reasonable and equitable administration of the fund. The plan of opera- 17 tion and any subsequent amendments thereto shall become effective upon 18 being filed with the department. 19 2. The plan of operation shall constitute the by-laws of the fund and 20 shall, in addition to the requirements enumerated elsewhere in this 21 article: 22 (a) establish procedures for collecting and managing the assets of the 23 fund; 24 (b) establish regular places and times for meetings of the fund's 25 board of directors; 26 (c) establish the procedure by which the fund shall determine whether 27 to provide the benefits due pursuant to this article by self-insuring or 28 by purchasing insurance; 29 (d) establish accounting and record-keeping procedures for all finan- 30 cial transactions of the fund, its agents, and the board of directors; 31 (e) establish a procedure for determining and collecting the appropri- 32 ate amount of surcharges and assessments under this article; 33 (f) set forth the procedures by which the fund may exercise the audit 34 rights granted to it under this article; 35 (g) establish procedures to ensure prompt and accurate notification to 36 the fund by its members of all accidents and injuries to transportation 37 network company drivers, and provide for full reimbursement of the fund 38 by any transportation network company whose failure to provide such 39 notification results in the imposition of a penalty on the fund by the 40 board; and 41 (h) contain such additional provisions as the board of the fund may 42 deem necessary or proper for the execution of the powers and duties of 43 the fund. 44 § 160-ffff. Membership. 1. The membership of the fund shall be 45 composed of all transportation network companies. Each transportation 46 network company shall be required, as a condition of doing business 47 within this state, to pay the department a ten thousand dollar annual 48 fee for the purpose of registering as a member of the fund and receiving 49 a certificate of registration. Such sums shall be used by the depart- 50 ment for the administration of this article. The initial registration 51 fee shall be due no later than ninety days after the effective date of 52 this article. The department shall have the power to assess an addi- 53 tional fee against each registrant in the amount necessary to provide it 54 with sufficient funds to cover its expenses in performing its duties 55 pursuant to this article. The department shall provide the fund with an 56 updated list of registrants on a monthly basis.S. 2008--A 40 A. 3008--A 1 2. All transportation network companies shall be required, as a condi- 2 tion of obtaining or retaining their license from the department of 3 motor vehicles pursuant to article forty-four-B of the vehicle and traf- 4 fic law, to: 5 (a) be members of the fund; 6 (b) be registered with the department as members of the fund; and 7 (c) submit to the department of motor vehicles a copy of its certif- 8 icate of registration as proof of such membership and registration. 9 3. Within sixty days of the effective date of this article, the board 10 of the fund shall, on the basis of information from trade papers and 11 other sources, identify the transportation network companies subject to 12 this article and, on a regular and ongoing basis, confirm that all such 13 entities have registered in accordance with subdivision one of this 14 section. 15 4. The fund shall, within seventy-five days of the effective date of 16 this article, provide to its members a copy of the proposed plan of 17 operation filed with the department and shall inform its members of 18 their rights and duties pursuant to this article. 19 § 160-gggg. Securing of compensation. 1. Within two hundred ten days 20 of the effective date of this article, the fund shall secure the payment 21 of workers' compensation to all: transportation network company drivers 22 entitled thereto pursuant to this chapter by either: 23 (a) self-insuring in accordance with subdivision three of section 24 fifty of the workers' compensation law and the rules promulgated by the 25 board pursuant to such section; or 26 (b) purchasing workers' compensation insurance covering, on a blanket 27 basis, all drivers who are the fund's employees pursuant to section two 28 of the workers' compensation law. 29 2. If the fund initially seeks to apply to the board for authorization 30 to self-insure pursuant to subdivision three of section fifty of the 31 workers' compensation law, it shall submit its application and accompa- 32 nying proof to the board within one hundred fifty days of the effective 33 date of this article. The board shall notify the fund and the secretary 34 in writing of any change in the fund's status as a self-insurer or of 35 any additional requirements that the board may deem necessary for 36 continuation of such status. 37 3. If the fund chooses to secure the payment of workers' compensation 38 pursuant to the workers' compensation law by purchasing an insurance 39 policy from the state insurance fund or a licensed insurer, it shall 40 file with the department no later than thirty days after the commence- 41 ment of a new policy year a copy of the policy it has purchased. In such 42 case, the department shall be treated by the insurer as a certificate 43 holder for purposes of receiving notice of cancellation of the policy. 44 4. No provision of this article shall be construed to alter or affect 45 the liability under the workers' compensation law of any transportation 46 network company with respect to transportation network company drivers 47 prior to the fund liability date. 48 § 160-hhhh. Assessment of fund members. 1. To pay: 49 (a) the costs of the insurance purchased pursuant to section one 50 hundred sixty-gggg of this article; or 51 (b) the benefits due under the workers' compensation law in the event 52 the fund self-insures pursuant to section one hundred sixty-gggg of this 53 article; and to pay 54 (c) its expenses in carrying out its powers and duties under this 55 article; andS. 2008--A 41 A. 3008--A 1 (d) its liabilities, if any, pursuant to section fourteen-A of the 2 workers' compensation law; the fund shall ascertain by reasonable esti- 3 mate the total funding necessary to carry on its operations. 4 2. Based upon its estimation of operating costs, the fund shall estab- 5 lish a proposed uniform percentage surcharge to be added to: 6 (a) the invoices or billings for covered services sent to transporta- 7 tion network company passengers by a member or its agent; and 8 (b) The credit payments for covered services received by a member or 9 its agent. The proposed surcharge shall become effective thirty days 10 after being filed with the department. 11 Notwithstanding the foregoing, beginning on the first day of the first 12 calendar month that shall commence at least seventy-five days after the 13 effective date of this article, and until the fund shall have filed with 14 the department a different surcharge amount, a two percent surcharge 15 shall be added to every invoice or billing for covered services sent by 16 a member or its agent to, and every credit payment for covered services 17 received by a member or its agent from, transportation network company 18 passengers. Each member of the fund shall be liable for payment to the 19 fund of an amount equal to the product of: 20 (a) the percentages surcharge due pursuant to this article, divided by 21 one hundred; and 22 (b) all payments received by the member or its agent for covered 23 services prearranged through the member's digital network, as provided 24 in this subdivision, regardless of whether the surcharge was billed or 25 charged. 26 3. The department of motor vehicles or the department shall not issue, 27 continue or renew any license or registration certificate for the opera- 28 tion of any transportation network company unless such transportation 29 network company, as a condition of maintaining its license and/or regis- 30 tration certificate, adds the surcharge required by this section to 31 every invoice and billing for covered services sent to, and every credit 32 payment for covered services received from, its transportation network 33 company passengers and pays to the fund no later than the fifteenth day 34 of each month the total surcharges due pursuant to this article. 35 4. Each transportation network company shall submit to the fund with 36 its monthly payment a detailed accounting of the charge and surcharge 37 amounts charged to and received from transportation network company 38 passengers for covered services during the previous month. The first 39 such payment and accounting shall be due on the fifteenth day of the 40 month following the imposition of the surcharge pursuant to subdivision 41 two of this section. 42 5. Should the fund determine that the surcharge amounts that have been 43 paid to it are inadequate to meet its obligations under this article, it 44 shall determine the surcharge rate required to eliminate such deficiency 45 and shall file such revised surcharge rate with the department in 46 accordance with subdivision two of this section. Commencing thirty days 47 after such filing, the members of the fund shall charge the revised 48 surcharge rate and shall pay to the fund the total amount of surcharges 49 in accordance with this article. 50 6. For the purposes of conducting payroll audits, an insurer providing 51 coverage to the fund pursuant to this article may treat the members of 52 the fund as policyholders. Members of the fund shall be required to do 53 all things required of employers pursuant to section one hundred thir- 54 ty-one of the workers' compensation law, and shall be required to 55 provide the board access to any and all records and information as 56 otherwise required by the workers' compensation law and the regulationsS. 2008--A 42 A. 3008--A 1 promulgated thereunder, and shall be liable as provided in the workers' 2 compensation law for any failure so to do. 3 § 160-iiii. Certified financial statements. No later than May first of 4 each year, the fund shall submit to the governor and legislature certi- 5 fied financial statements prepared in accordance with generally accepted 6 accounting principles by a certified public accountant. The members of 7 the fund shall be required on and after January first of each year to 8 afford the certified public accountant convenient access at all reason- 9 able hours to all books, records, and other documents, including but not 10 limited to invoices and vouchers, necessary or useful in the preparation 11 of such statements and in the verification of the monthly statements 12 submitted to the fund. 13 § 160-jjjj. Exemption from taxes. The fund shall be exempt from 14 payment of all fees and taxes levied by this state or any of its subdi- 15 visions, except taxes levied on real property. 16 § 160-kkkk. Liability insurance. The fund shall purchase such insur- 17 ance as is necessary to protect the fund and any director, officer, 18 agent, or other representative from liability for their administration 19 of the fund, and shall, to the extent permitted by law, indemnify such 20 directors, officers, agents, or other representatives and hold them 21 harmless from liability for their administration of the fund. 22 § 160-llll. Regulations. The department shall adopt regulations imple- 23 menting the provisions of this article, including the conduct and notice 24 of hearings held pursuant to section one hundred sixty-mmmm of this 25 article. 26 § 160-mmmm. Violations. 1. If the secretary believes a violation of 27 this article by a fund member may have occurred, upon notice to the fund 28 member, a hearing shall be held by the secretary to determine whether 29 such violation occurred. 30 2. Except as otherwise provided in this section, a fund member that is 31 found, after a hearing held pursuant to subdivision one of this section, 32 to have violated a provision of this article, or a rule promulgated by 33 the department pursuant to this article, shall be liable for a fine in 34 an amount not to exceed ten thousand dollars per violation. 35 3. Within twenty days after issuance of a determination adverse to a 36 transportation network company following a hearing held pursuant to 37 subdivision one of this section, an appeal may be taken therefrom to the 38 appellate division of the supreme court, third department, by the 39 aggrieved transportation network company. 40 § 12. Subdivision 1 of section 171-a of the tax law, as amended by 41 chapter 90 of the laws of 2014, is amended to read as follows: 42 1. All taxes, interest, penalties and fees collected or received by 43 the commissioner or the commissioner's duly authorized agent under arti- 44 cles nine (except section one hundred eighty-two-a thereof and except as 45 otherwise provided in section two hundred five thereof), nine-A, 46 twelve-A (except as otherwise provided in section two hundred eighty- 47 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 48 section three hundred twelve thereof), eighteen, nineteen, twenty 49 (except as otherwise provided in section four hundred eighty-two there- 50 of), twenty-B, twenty-one, twenty-two, twenty-six, [twenty-six-B,] twen- 51 ty-eight (except as otherwise provided in section eleven hundred two or 52 eleven hundred three thereof), twenty-eight-A, twenty-nine-B (except as 53 otherwise provided in section twelve hundred ninety-eight thereof), 54 thirty-one (except as otherwise provided in section fourteen hundred 55 twenty-one thereof), thirty-three and thirty-three-A of this chapter 56 shall be deposited daily in one account with such responsible banks,S. 2008--A 43 A. 3008--A 1 banking houses or trust companies as may be designated by the comp- 2 troller, to the credit of the comptroller. Such an account may be estab- 3 lished in one or more of such depositories. Such deposits shall be kept 4 separate and apart from all other money in the possession of the comp- 5 troller. The comptroller shall require adequate security from all such 6 depositories. Of the total revenue collected or received under such 7 articles of this chapter, the comptroller shall retain in the comp- 8 troller's hands such amount as the commissioner may determine to be 9 necessary for refunds or reimbursements under such articles of this 10 chapter out of which amount the comptroller shall pay any refunds or 11 reimbursements to which taxpayers shall be entitled under the provisions 12 of such articles of this chapter. The commissioner and the comptroller 13 shall maintain a system of accounts showing the amount of revenue 14 collected or received from each of the taxes imposed by such articles. 15 The comptroller, after reserving the amount to pay such refunds or 16 reimbursements, shall, on or before the tenth day of each month, pay 17 into the state treasury to the credit of the general fund all revenue 18 deposited under this section during the preceding calendar month and 19 remaining to the comptroller's credit on the last day of such preceding 20 month, (i) except that the comptroller shall pay to the state department 21 of social services that amount of overpayments of tax imposed by article 22 twenty-two of this chapter and the interest on such amount which is 23 certified to the comptroller by the commissioner as the amount to be 24 credited against past-due support pursuant to subdivision six of section 25 one hundred seventy-one-c of this article, (ii) and except that the 26 comptroller shall pay to the New York state higher education services 27 corporation and the state university of New York or the city university 28 of New York respectively that amount of overpayments of tax imposed by 29 article twenty-two of this chapter and the interest on such amount which 30 is certified to the comptroller by the commissioner as the amount to be 31 credited against the amount of defaults in repayment of guaranteed 32 student loans and state university loans or city university loans pursu- 33 ant to subdivision five of section one hundred seventy-one-d and subdi- 34 vision six of section one hundred seventy-one-e of this article, (iii) 35 and except further that, notwithstanding any law, the comptroller shall 36 credit to the revenue arrearage account, pursuant to section 37 ninety-one-a of the state finance law, that amount of overpayment of tax 38 imposed by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B 39 or thirty-three of this chapter, and any interest thereon, which is 40 certified to the comptroller by the commissioner as the amount to be 41 credited against a past-due legally enforceable debt owed to a state 42 agency pursuant to paragraph (a) of subdivision six of section one 43 hundred seventy-one-f of this article, provided, however, he shall cred- 44 it to the special offset fiduciary account, pursuant to section ninety- 45 one-c of the state finance law, any such amount creditable as a liabil- 46 ity as set forth in paragraph (b) of subdivision six of section one 47 hundred seventy-one-f of this article, (iv) and except further that the 48 comptroller shall pay to the city of New York that amount of overpayment 49 of tax imposed by article nine, nine-A, twenty-two, thirty, thirty-A, 50 thirty-B or thirty-three of this chapter and any interest thereon that 51 is certified to the comptroller by the commissioner as the amount to be 52 credited against city of New York tax warrant judgment debt pursuant to 53 section one hundred seventy-one-l of this article, (v) and except 54 further that the comptroller shall pay to a non-obligated spouse that 55 amount of overpayment of tax imposed by article twenty-two of this chap- 56 ter and the interest on such amount which has been credited pursuant toS. 2008--A 44 A. 3008--A 1 section one hundred seventy-one-c, one hundred seventy-one-d, one 2 hundred seventy-one-e, one hundred seventy-one-f or one hundred seven- 3 ty-one-l of this article and which is certified to the comptroller by 4 the commissioner as the amount due such non-obligated spouse pursuant to 5 paragraph six of subsection (b) of section six hundred fifty-one of this 6 chapter; and (vi) the comptroller shall deduct a like amount which the 7 comptroller shall pay into the treasury to the credit of the general 8 fund from amounts subsequently payable to the department of social 9 services, the state university of New York, the city university of New 10 York, or the higher education services corporation, or the revenue 11 arrearage account or special offset fiduciary account pursuant to 12 section ninety-one-a or ninety-one-c of the state finance law, as the 13 case may be, whichever had been credited the amount originally withheld 14 from such overpayment, and (vii) with respect to amounts originally 15 withheld from such overpayment pursuant to section one hundred seventy- 16 one-l of this article and paid to the city of New York, the comptroller 17 shall collect a like amount from the city of New York. 18 § 13. Subdivision 1 of section 171-a of the tax law, as amended by 19 section 54 of part A of chapter 59 of the laws of 2014, is amended to 20 read as follows: 21 1. All taxes, interest, penalties and fees collected or received by 22 the commissioner or the commissioner's duly authorized agent under arti- 23 cles nine (except section one hundred eighty-two-a thereof and except as 24 otherwise provided in section two hundred five thereof), nine-A, 25 twelve-A (except as otherwise provided in section two hundred eighty- 26 four-d thereof), thirteen, thirteen-A (except as otherwise provided in 27 section three hundred twelve thereof), eighteen, nineteen, twenty 28 (except as otherwise provided in section four hundred eighty-two there- 29 of), twenty-one, twenty-two, twenty-six, [twenty-six-B,] twenty-eight 30 (except as otherwise provided in section eleven hundred two or eleven 31 hundred three thereof), twenty-eight-A, twenty-nine-B (except as other- 32 wise provided in section twelve hundred ninety-eight thereof), thirty- 33 one (except as otherwise provided in section fourteen hundred twenty-one 34 thereof), thirty-three and thirty-three-A of this chapter shall be 35 deposited daily in one account with such responsible banks, banking 36 houses or trust companies as may be designated by the comptroller, to 37 the credit of the comptroller. Such an account may be established in one 38 or more of such depositories. Such deposits shall be kept separate and 39 apart from all other money in the possession of the comptroller. The 40 comptroller shall require adequate security from all such depositories. 41 Of the total revenue collected or received under such articles of this 42 chapter, the comptroller shall retain in the comptroller's hands such 43 amount as the commissioner may determine to be necessary for refunds or 44 reimbursements under such articles of this chapter out of which amount 45 the comptroller shall pay any refunds or reimbursements to which taxpay- 46 ers shall be entitled under the provisions of such articles of this 47 chapter. The commissioner and the comptroller shall maintain a system of 48 accounts showing the amount of revenue collected or received from each 49 of the taxes imposed by such articles. The comptroller, after reserving 50 the amount to pay such refunds or reimbursements, shall, on or before 51 the tenth day of each month, pay into the state treasury to the credit 52 of the general fund all revenue deposited under this section during the 53 preceding calendar month and remaining to the comptroller's credit on 54 the last day of such preceding month, (i) except that the comptroller 55 shall pay to the state department of social services that amount of 56 overpayments of tax imposed by article twenty-two of this chapter andS. 2008--A 45 A. 3008--A 1 the interest on such amount which is certified to the comptroller by the 2 commissioner as the amount to be credited against past-due support 3 pursuant to subdivision six of section one hundred seventy-one-c of this 4 article, (ii) and except that the comptroller shall pay to the New York 5 state higher education services corporation and the state university of 6 New York or the city university of New York respectively that amount of 7 overpayments of tax imposed by article twenty-two of this chapter and 8 the interest on such amount which is certified to the comptroller by the 9 commissioner as the amount to be credited against the amount of defaults 10 in repayment of guaranteed student loans and state university loans or 11 city university loans pursuant to subdivision five of section one 12 hundred seventy-one-d and subdivision six of section one hundred seven- 13 ty-one-e of this article, (iii) and except further that, notwithstanding 14 any law, the comptroller shall credit to the revenue arrearage account, 15 pursuant to section ninety-one-a of the state finance law, that amount 16 of overpayment of tax imposed by article nine, nine-A, twenty-two, thir- 17 ty, thirty-A, thirty-B or thirty-three of this chapter, and any interest 18 thereon, which is certified to the comptroller by the commissioner as 19 the amount to be credited against a past-due legally enforceable debt 20 owed to a state agency pursuant to paragraph (a) of subdivision six of 21 section one hundred seventy-one-f of this article, provided, however, he 22 shall credit to the special offset fiduciary account, pursuant to 23 section ninety-one-c of the state finance law, any such amount credita- 24 ble as a liability as set forth in paragraph (b) of subdivision six of 25 section one hundred seventy-one-f of this article, (iv) and except 26 further that the comptroller shall pay to the city of New York that 27 amount of overpayment of tax imposed by article nine, nine-A, twenty- 28 two, thirty, thirty-A, thirty-B or thirty-three of this chapter and any 29 interest thereon that is certified to the comptroller by the commission- 30 er as the amount to be credited against city of New York tax warrant 31 judgment debt pursuant to section one hundred seventy-one-l of this 32 article, (v) and except further that the comptroller shall pay to a 33 non-obligated spouse that amount of overpayment of tax imposed by arti- 34 cle twenty-two of this chapter and the interest on such amount which has 35 been credited pursuant to section one hundred seventy-one-c, one hundred 36 seventy-one-d, one hundred seventy-one-e, one hundred seventy-one-f or 37 one hundred seventy-one-l of this article and which is certified to the 38 comptroller by the commissioner as the amount due such non-obligated 39 spouse pursuant to paragraph six of subsection (b) of section six 40 hundred fifty-one of this chapter; and (vi) the comptroller shall deduct 41 a like amount which the comptroller shall pay into the treasury to the 42 credit of the general fund from amounts subsequently payable to the 43 department of social services, the state university of New York, the 44 city university of New York, or the higher education services corpo- 45 ration, or the revenue arrearage account or special offset fiduciary 46 account pursuant to section ninety-one-a or ninety-one-c of the state 47 finance law, as the case may be, whichever had been credited the amount 48 originally withheld from such overpayment, and (vii) with respect to 49 amounts originally withheld from such overpayment pursuant to section 50 one hundred seventy-one-l of this article and paid to the city of New 51 York, the comptroller shall collect a like amount from the city of New 52 York. 53 § 14. Paragraph 34 of subdivision (b) of section 1101 of the tax law, 54 as amended by section 1 of part WW of chapter 57 of the laws of 2010, is 55 amended to read as follows:S. 2008--A 46 A. 3008--A 1 (34) Transportation service. The service of transporting, carrying or 2 conveying a person or persons by livery service; whether to a single 3 destination or to multiple destinations; and whether the compensation 4 paid by or on behalf of the passenger is based on mileage, trip, time 5 consumed or any other basis. A service that begins and ends in this 6 state is deemed intra-state even if it passes outside this state during 7 a portion of the trip. However, transportation service does not include 8 transportation of persons in connection with funerals. Transportation 9 service includes transporting, carrying, or conveying property of the 10 person being transported, whether owned by or in the care of such 11 person. Notwithstanding the foregoing, transportation service shall not 12 include a TNC prearranged trip, as that term is defined in article 13 forty-four-B of the vehicle and traffic law, that is subject to tax 14 under article twenty-nine-B of this chapter. In addition to what is 15 included in the definition of "receipt" in paragraph three of this 16 subdivision, receipts from the sale of transportation service subject to 17 tax include any handling, carrying, baggage, booking service, adminis- 18 trative, mark-up, additional, or other charge, of any nature, made in 19 conjunction with the transportation service. Livery service means 20 service provided by limousine, black car or other motor vehicle, with a 21 driver, but excluding (i) a taxicab, (ii) a bus, and (iii), in a city of 22 one million or more in this state, an affiliated livery vehicle, and 23 excluding any scheduled public service. Limousine means a vehicle with a 24 seating capacity of up to fourteen persons, excluding the driver. Black 25 car means a for-hire vehicle dispatched from a central facility. "Affil- 26 iated livery vehicle" means a for-hire motor vehicle with a seating 27 capacity of up to six persons, including the driver, other than a black 28 car or luxury limousine, that is authorized and licensed by the taxi and 29 limousine commission of a city of one million or more to be dispatched 30 by a base station located in such a city and regulated by such taxi and 31 limousine commission; and the charges for service provided by an affil- 32 iated livery vehicle are on the basis of flat rate, time, mileage, or 33 zones and not on a garage to garage basis. 34 § 15. The tax law is amended by adding a new article 29-B to read as 35 follows: 36 ARTICLE 29-B 37 STATE ASSESSMENT FEE ON TRANSPORTATION NETWORK COMPANY 38 PREARRANGED TRIPS 39 Section 1291. Definitions. 40 1292. Imposition. 41 1293. Presumption. 42 1294. Returns and payment of state assessment fee. 43 1295. Records to be kept. 44 1296. Secrecy of returns and reports. 45 1297. Practice and procedure. 46 1298. Deposit and disposition of revenue. 47 § 1291. Definitions. (a) "Person" means an individual, partnership, 48 limited liability company, society, association, joint stock company, 49 corporation, estate, receiver, trustee, assignee, referee or any other 50 person acting in a fiduciary or representative capacity, whether 51 appointed by a court or otherwise, any combination of individuals and 52 any other form of unincorporated enterprise owned or conducted by two or 53 more persons. 54 (b) "City" means a city of a million or more located in the metropol- 55 itan commuter transportation district established by section twelve 56 hundred sixty-two of the public authorities law.S. 2008--A 47 A. 3008--A 1 (c) "Transportation network company" or "TNC" shall have the same 2 meaning as the term is defined in article forty-four-B of the vehicle 3 and traffic law. 4 (d) "TNC prearranged trip" shall have the same meaning as the term is 5 defined in article forty-four-B of the vehicle and traffic law. 6 (e) "TNC driver" shall have the same meaning as the term is defined in 7 article forty-four-B of the vehicle and traffic law. 8 (f) "TNC vehicle" shall have the same meaning as the term is defined 9 in article forty-four-B of the vehicle and traffic law. 10 (g) "Gross trip fare" means the sum of the base fare charge, distance 11 charge and time charge for a complete TNC prearranged trip at the rate 12 published by the TNC by or through which such trip is arranged. 13 § 1292. Imposition. There is hereby imposed on every TNC a state 14 assessment fee of 5.5% of the gross trip fare of every TNC prearranged 15 trip provided by such TNC that originates anywhere in the state outside 16 the city and terminates anywhere in this state. 17 § 1293. Presumption. For the purpose of the proper administration of 18 this article and to prevent evasion of the state assessment fee imposed 19 by this article, it shall be presumed that every TNC prearranged trip 20 that originates anywhere in the state outside the city is subject to the 21 state assessment fee. This presumption shall prevail until the contrary 22 is proven by the person liable for the fee. 23 § 1294. Returns and payment of state assessment fee. (a) Every person 24 liable for the state assessment fee imposed by this article shall file a 25 return on a calendar-quarterly basis with the commissioner. Each return 26 shall show the number of TNC prearranged trips in the quarter for which 27 the return is filed, together with such other information as the commis- 28 sioner may require. The returns required by this section shall be filed 29 within thirty days after the end of the quarterly period covered there- 30 by. If the commissioner deems it necessary in order to ensure the 31 payment of the state assessment fee imposed by this article, the commis- 32 sioner may require returns to be made for shorter periods than 33 prescribed by the foregoing provisions of this section, and upon such 34 dates as the commissioner may specify. The form of returns shall be 35 prescribed by the commissioner and shall contain such information as the 36 commissioner may deem necessary for the proper administration of this 37 article. The commissioner may require amended returns to be filed within 38 thirty days after notice and to contain the information specified in the 39 notice. The commissioner may require that the returns be filed electron- 40 ically. 41 (b) Every person required to file a return under this article shall, 42 at the time of filing such return, pay to the commissioner the total of 43 all state assessment fees on the correct number of trips subject to such 44 fee under this article. The amount so payable to the commissioner for 45 the period for which a return is required to be filed shall be due and 46 payable to the commissioner on the date specified for the filing of the 47 return for such period, without regard to whether a return is filed or 48 whether the return that is filed correctly shows the correct number of 49 trips or the amount of fees due thereon. The commissioner may require 50 that the fee be paid electronically. 51 § 1295. Records to be kept. Every person liable for the state assess- 52 ment fee imposed by this article shall keep: 53 (a) records of every TNC prearranged trip subject to the state assess- 54 ment fee under this article, and of all amounts paid, charged or due 55 thereon, in such form as the commissioner may require;S. 2008--A 48 A. 3008--A 1 (b) true and complete copies of any records required to be kept by a 2 state agency that is authorized to permit or regulate a TNC; and 3 (c) such other records and information as the commissioner may require 4 to perform his or her duties under this article. 5 § 1296. Secrecy of returns and reports. (a) Except in accordance with 6 proper judicial order or as otherwise provided by law, it shall be 7 unlawful for the commissioner, any officer or employee of the depart- 8 ment, any person engaged or retained by the department on an independent 9 contract basis, or any person who in any manner may acquire knowledge of 10 the contents of a return or report filed with the commissioner pursuant 11 to this article, to divulge or make known in any manner any particulars 12 set forth or disclosed in any such return or report. The officers 13 charged with the custody of such returns and reports shall not be 14 required to produce any of them or evidence of anything contained in 15 them in any action or proceeding in any court, except on behalf of the 16 commissioner in an action or proceeding under the provisions of this 17 chapter or in any other action or proceeding involving the collection of 18 a state assessment fee due under this article to which the state or the 19 commissioner is a party or a claimant, or on behalf of any party to any 20 action, proceeding or hearing under the provisions of this article when 21 the returns, reports or facts shown thereby are directly involved in 22 such action, proceeding or hearing, in any of which events the court, or 23 in the case of a hearing, the division of tax appeals may require the 24 production of, and may admit into evidence, so much of said returns, 25 reports or of the facts shown thereby, as are pertinent to the action, 26 proceeding or hearing and no more. The commissioner or the division of 27 tax appeals may, nevertheless, publish a copy or a summary of any deci- 28 sion rendered after a hearing required by this article. Nothing in this 29 section shall be construed to prohibit the delivery to a person who has 30 filed a return or report or to such person's duly authorized represen- 31 tative of a certified copy of any return or report filed in connection 32 with such person's state assessment fee. Nor shall anything in this 33 section be construed to prohibit the publication of statistics so clas- 34 sified as to prevent the identification of particular returns or reports 35 and the items thereof, or the inspection by the attorney general or 36 other legal representatives of the state of the return or report of any 37 person required to pay the state assessment fee who shall bring action 38 to review the state assessment fee based thereon, or against whom an 39 action or proceeding under this chapter has been recommended by the 40 commissioner or the attorney general or has been instituted, or the 41 inspection of the returns or reports required under this article by the 42 comptroller or duly designated officer or employee of the state depart- 43 ment of audit and control, for purposes of the audit of a refund of any 44 state assessment fee paid by a person required to pay the state assess- 45 ment fee under this article. Provided, further, nothing in this section 46 shall be construed to prohibit the disclosure, in such manner as the 47 commissioner deems appropriate, of the names and other appropriate iden- 48 tifying information of those persons required to pay state assessment 49 fee under this article. 50 (b) Notwithstanding the provisions of subdivision (a) of this section, 51 the commissioner, in his or her discretion, may require or permit any or 52 all persons liable for any state assessment fee imposed by this article, 53 to make payment to banks, banking houses or trust companies designated 54 by the commissioner and to file returns with such banks, banking houses 55 or trust companies as agents of the commissioner, in lieu of paying any 56 such state assessment fee directly to the commissioner. However, theS. 2008--A 49 A. 3008--A 1 commissioner shall designate only such banks, banking houses or trust 2 companies as are already designated by the comptroller as depositories 3 pursuant to section twelve hundred eighty-eight of this chapter. 4 (c) Notwithstanding the provisions of subdivision (a) of this section, 5 the commissioner may permit the secretary of the treasury of the United 6 States or such secretary's delegate, or the authorized representative of 7 either such officer, to inspect any return filed under this article, or 8 may furnish to such officer or such officer's authorized representative 9 an abstract of any such return or supply such person with information 10 concerning an item contained in any such return, or disclosed by any 11 investigation of liability under this article, but such permission shall 12 be granted or such information furnished only if the laws of the United 13 States grant substantially similar privileges to the commissioner or 14 officer of this state charged with the administration of the state 15 assessment fee imposed by this article, and only if such information is 16 to be used for purposes of tax administration only; and provided further 17 the commissioner may furnish to the commissioner of internal revenue or 18 such commissioner's authorized representative such returns filed under 19 this article and other tax information, as such commissioner may consid- 20 er proper, for use in court actions or proceedings under the internal 21 revenue code, whether civil or criminal, where a written request there- 22 for has been made to the commissioner by the secretary of the treasury 23 of the United States or such secretary's delegate, provided the laws of 24 the United States grant substantially similar powers to the secretary of 25 the treasury of the United States or his or her delegate. Where the 26 commissioner has so authorized use of returns and other information in 27 such actions or proceedings, officers and employees of the department 28 may testify in such actions or proceedings in respect to such returns or 29 other information. 30 (d) Returns and reports filed under this article shall be preserved 31 for three years and thereafter until the commissioner orders them to be 32 destroyed. 33 (e) (1) Any officer or employee of the state who willfully violates 34 the provisions of subdivision (a) of this section shall be dismissed 35 from office and be incapable of holding any public office for a period 36 of five years thereafter. 37 (2) Cross-reference: For criminal penalties, see article thirty-seven 38 of this chapter. 39 § 1297. Practice and procedure. The provisions of article twenty-seven 40 of this chapter shall apply with respect to the administration of and 41 procedure with respect to the state assessment fee imposed by this arti- 42 cle in the same manner and with the same force and effect as if the 43 language of such article twenty-seven had been incorporated in full into 44 this article and had expressly referred to the state assessment fee 45 under this article, except to the extent that any such provision is 46 either inconsistent with a provision of this article or is not relevant 47 to this article. 48 § 1298. Deposit and disposition of revenue. All taxes, fees, interest 49 and penalties collected or received by the commissioner under this arti- 50 cle shall be deposited and disposed of pursuant to the provisions of 51 section one hundred seventy-one-a of this chapter. From such taxes, 52 interest and penalties collected or received by the commissioner under 53 this article, 27.27% shall be deposited to the credit of the local tran- 54 sit assistance fund established in section eighty-nine-i of the state 55 finance law for the support of local transit systems, operations orS. 2008--A 50 A. 3008--A 1 projects other than the metropolitan transportation authority or any 2 subsidiary or affiliate of the metropolitan transportation authority. 3 § 16. The tax law is amended by adding a new section 1822 to read as 4 follows: 5 § 1822. Violation of the state assessment fee on transportation 6 network company prearranged trips. Any willful act or omission by any 7 person that constitutes a violation of any provision of article twenty- 8 nine-B of this chapter shall constitute a misdemeanor. 9 § 17. Section 1825 of the tax law, as amended by section 89 of part A 10 of chapter 59 of the laws of 2014, is amended to read as follows: 11 § 1825. Violation of secrecy provisions of the tax law.--Any person 12 who violates the provisions of subdivision (b) of section twenty-one, 13 subdivision one of section two hundred two, subdivision eight of section 14 two hundred eleven, subdivision (a) of section three hundred fourteen, 15 subdivision one or two of section four hundred thirty-seven, section 16 four hundred eighty-seven, subdivision one or two of section five 17 hundred fourteen, subsection (e) of section six hundred ninety-seven, 18 subsection (a) of section nine hundred ninety-four, subdivision (a) of 19 section eleven hundred forty-six, section twelve hundred eighty-seven, 20 section twelve hundred ninety-six, subdivision (a) of section fourteen 21 hundred eighteen, subdivision (a) of section fifteen hundred eighteen, 22 subdivision (a) of section fifteen hundred fifty-five of this chapter, 23 and subdivision (e) of section 11-1797 of the administrative code of the 24 city of New York shall be guilty of a misdemeanor. 25 § 18. 1. For purposes of this section, transportation network company 26 shall mean a transportation network company as defined by article 27 forty-four-B of the vehicle and traffic law. 28 2. There is hereby established the New York State Transportation 29 Network Company Accessibility Task Force to analyze and advise on how to 30 maximize effective and integrated transportation services for persons 31 with disabilities in the transportation network company market. The New 32 York State Transportation Network Company Accessibility Task Force shall 33 consist of eleven members. Two members of the New York State Transporta- 34 tion Network Company Accessibility Task Force shall be appointed by the 35 speaker of the assembly. Two members of the New York State Transporta- 36 tion Network Company Accessibility Task Force shall be appointed by the 37 temporary president of the senate. Seven members of the New York State 38 Transportation Network Company Accessibility Task Force shall be 39 appointed by the governor and shall include, but not be limited to, two 40 representatives of groups who serve persons with disabilities and two 41 representatives from a transportation network company. The governor 42 shall designate two chairpersons to the New York State Transportation 43 Network Company Accessibility Task Force. 44 3. The New York State Transportation Network Company Accessibility 45 Task Force shall study the demand responsive transportation marketplace 46 and shall, in addition to any responsibilities assigned by the governor: 47 (a) conduct a needs assessment concerning the demand for demand respon- 48 sive accessible transportation; (b) conduct a resource assessment 49 concerning the availability of accessible demand responsive transporta- 50 tion services for persons with disabilities; (c) identify opportunities 51 for, and barriers to, increasing accessible demand responsive transpor- 52 tation service for persons with mobility disabilities; (d) propose stra- 53 tegies for increasing accessible demand responsive transportation 54 service for persons with disabilities; and (e) any other issues deter- 55 mined important to the task force in establishing a recommendation 56 pursuant to subdivision five of this section.S. 2008--A 51 A. 3008--A 1 4. The New York State Transportation Network Company Accessibility 2 Task Force shall hold public hearings and provide an opportunity for 3 public comment on the activities described in subdivision two of this 4 section. 5 5. The New York State Transportation Network Company Accessibility 6 Task Force shall complete a report addressing the activities described 7 in subdivision two of this section and make a recommendation, supported 8 by such activities, recommending the amount of accessibility necessary 9 for adequate transportation for disabled passengers in order to utilize 10 such services and present such findings at a public meeting where its 11 members shall accept such report, pursuant to majority vote of the task 12 force, and present such report to the governor, the speaker of the 13 assembly and the temporary president of the senate, and make such report 14 publicly available for review. 15 6. Upon making the report described in subdivision five of this 16 section, the New York State Transportation Network Company Accessibility 17 Task Force shall be deemed dissolved. 18 § 19. The state finance law is amended by adding a new section 89-i to 19 read as follows: 20 § 89-i. Local transit assistance fund. 1. There is hereby established 21 in the joint custody of the state comptroller and the commissioner of 22 taxation and finance a fund to be known as the "local transit assistance 23 fund". Moneys in the local transit assistance fund shall be kept sepa- 24 rately from and shall not be commingled with any other moneys in the 25 joint or sole custody of the state comptroller or the commissioner of 26 taxation and finance. 27 2. The comptroller shall establish the following separate and distinct 28 account within the local transit assistance fund: Non-MTA transit 29 assistance account. 30 3. The local transit assistance fund shall consist of all monies 31 collected therefore or credited or transferred thereto from any other 32 fund, account, or source, including a portion of the revenues derived 33 from article twenty-nine-B of the tax law pursuant to section twelve 34 hundred ninety-eight of the tax law. Any interest received by the comp- 35 troller on monies on deposit in the local transit assistance fund shall 36 be retained in and become a part of such fund. 37 4. Monies in the local transit assistance fund shall, following appro- 38 priation by the legislature, be utilized for the support of local trans- 39 it systems, operations or projects, and shall not be appropriated to the 40 metropolitan transportation authority, its affiliates or its subsid- 41 iaries. In the first year that monies are appropriated from this fund, 42 and in any subsequent years as may be required by the director of the 43 budget, such monies shall be disbursed according to a plan developed 44 during the prior fiscal year by the commissioner of transportation and 45 approved by the director of the budget. The first such plan shall be 46 submitted by the commissioner by March thirty-first, two thousand eigh- 47 teen. 48 5. All payments of money from the local transit assistance fund shall 49 be made on the audit and warrant of the comptroller. 50 § 20. Severability clause. If any provision of this act or the appli- 51 cation thereof is held invalid, such invalidity shall not affect other 52 provisions or applications of this act which can be given effect without 53 the invalid provision or application, and to this end the provisions of 54 this act are declared to be severable. 55 § 21. Each agency that is designated to perform any function or duty 56 pursuant to this act shall be authorized to establish rules and regu-S. 2008--A 52 A. 3008--A 1 lations for the administration and execution of such authority in a 2 manner consistent with the provisions of this act and for the protection 3 of the public, health, safety and welfare of persons within this state. 4 § 22. This act shall take effect on the ninetieth day after it shall 5 have become a law; provided that the amendments to subdivision 1 of 6 section 171-a of the tax law made by section twelve of this act shall 7 not affect the expiration of such subdivision and shall expire there- 8 with, when upon such date the provisions of section thirteen of this act 9 shall take effect. 10 PART H 11 Section 1. Section 491 of the vehicle and traffic law is amended by 12 adding a new subdivision 3 to read as follows: 13 3. Waiver of fee. The commissioner may waive the payment of fees 14 required by subdivision two of this section if the applicant is a victim 15 of a crime and the identification card applied for is a replacement for 16 one that was lost or destroyed as a result of the crime. 17 § 2. This act shall take effect on the one hundred twentieth day after 18 it shall have become a law. 19 PART I 20 Section 1. Paragraph (i) of subdivision 2 of section 503 of the vehi- 21 cle and traffic law, as amended by chapter 55 of the laws of 1992, is 22 amended to read as follows: 23 (i) A non-resident whose driving privileges have been revoked pursuant 24 to sections five hundred ten, eleven hundred ninety-three and eleven 25 hundred ninety-four of this chapter shall, upon application for rein- 26 statement of such driving privileges, pay to the commissioner of motor 27 vehicles a fee of [twenty-five] one hundred dollars. When the basis for 28 the revocation is a finding of driving after having consumed alcohol 29 pursuant to the provisions of section eleven hundred ninety-two-a of 30 this chapter, the fee to be paid to the commissioner shall be one 31 hundred dollars. Such fee is not refundable and shall not be returned to 32 the applicant regardless of the action the commissioner may take on such 33 person's application for reinstatement of such driving privileges. 34 § 2. This act shall take effect on the one hundred twentieth day after 35 it shall have become a law. 36 PART J 37 Section 1. Paragraphs 1 and 3 of subdivision (a) of section 2125 of 38 the vehicle and traffic law, as amended by section 1-b of part A of 39 chapter 63 of the laws of 2005, are amended to read as follows: 40 (1) for filing an application for a certificate of title, [fifty] 41 seventy-five dollars except where the application relates to a mobile 42 home or a manufactured home as defined in section one hundred twenty- 43 two-c of this chapter, in which case the fee shall be one hundred twen- 44 ty-five dollars; 45 (3) for a duplicate certificate of title, [twenty] forty dollars. 46 § 2. Section 2125 of the vehicle and traffic law is amended by adding 47 a new subdivision (h) to read as follows: 48 (h) Notwithstanding any other provision of law, the increase of twen- 49 ty-five dollars for the fee assessed for filing an application for a 50 certificate of title and the increase of twenty dollars for the feeS. 2008--A 53 A. 3008--A 1 assessed for filing an application for duplicate title, collected pursu- 2 ant to paragraphs one and three of subdivision (a) of this section, 3 shall be deposited to the credit of the dedicated highway and bridge 4 trust fund, established pursuant to section eighty-nine-b of the state 5 finance law. 6 § 3. This act shall take effect immediately; provided that the amend- 7 ments to paragraph 1 of subdivision (a) of section 2125 of the vehicle 8 and traffic law made by section one of this act shall not affect the 9 expiration and reversion of such paragraph and shall be deemed to expire 10 therewith. 11 PART K 12 Section 1. Subdivision 2 of section 491 of the vehicle and traffic law 13 is amended by adding a new paragraph (f) to read as follows: 14 (f) In addition to any other fee prescribed in this section, an addi- 15 tional fee of five dollars shall be charged for any non-driver identifi- 16 cation card or renewal or amendment of such card that is issued pursuant 17 to and bears a marking reflecting compliance with the Real ID Act of 18 2005, Public Law 109-13, and regulations promulgated thereunder at 6 CFR 19 37 et seq. The fee collected pursuant to this paragraph shall be paid to 20 the commissioner and shall be deposited into the dedicated highway 21 bridge and trust fund pursuant to section eighty-nine-b of the state 22 finance law. 23 § 2. Subdivision 2 of section 503 of the vehicle and traffic law is 24 amended by adding a new paragraph (f-2) to read as follows: 25 (f-2) In addition to any other fee prescribed in this section, an 26 additional fee of five dollars shall be charged for any license, renewal 27 or amendment of such license that is issued pursuant to and bears a 28 marking reflecting compliance with the Real ID Act of 2005, Public Law 29 109-13, and regulations promulgated thereunder at 6 CFR 37 et seq. The 30 fee collected pursuant to this paragraph shall be paid to the commis- 31 sioner and shall be deposited into the dedicated highway bridge and 32 trust fund pursuant to section eighty-nine-b of the state finance law. 33 § 3. This act shall take effect immediately. 34 PART L 35 Section 1. Section 114-a of the vehicle and traffic law, as added by 36 chapter 163 of the laws of 1973, is amended to read as follows: 37 § 114-a. Drug. The term "drug" when used in this chapter, means and 38 includes any substance listed in section thirty-three hundred six of the 39 public health law and any substance or combination of substances that 40 impair, to any extent, the physical and mental abilities which a driver 41 is expected to possess in order to operate a vehicle as a reasonable and 42 prudent driver. 43 § 2. Subparagraph (i) of paragraph (a) of subdivision 4 of section 502 44 of the vehicle and traffic law, as amended by chapter 97 of the laws of 45 2016, is amended to read as follows: 46 (i) Upon submission of an application for a driver's license, the 47 applicant shall be required to take and pass a test, or submit evidence 48 of passage of a test, with respect to the laws relating to traffic, the 49 laws relating to driving while ability is impaired and while intoxicat- 50 ed, under the overpowering influence of "Road Rage", or "Work Zone Safe- 51 ty" awareness as defined by the commissioner, the law relating to exer- 52 cising due care to avoid colliding with a parked, stopped or standingS. 2008--A 54 A. 3008--A 1 authorized emergency vehicle or hazard vehicle pursuant to section elev- 2 en hundred forty-four-a of this chapter, the ability to read and compre- 3 hend traffic signs and symbols, bicycle and pedestrian safety and such 4 other matters as the commissioner may prescribe, and to satisfactorily 5 complete a course prescribed by the commissioner of not less than four 6 hours and not more than five hours, consisting of classroom driver 7 training and highway safety instruction or the equivalent thereof. Such 8 test shall include at least seven written questions concerning the 9 effects of consumption of alcohol or drugs on the ability of a person to 10 operate a motor vehicle and the legal and financial consequences result- 11 ing from violations of section eleven hundred ninety-two of this chap- 12 ter, prohibiting the operation of a motor vehicle while under the influ- 13 ence of alcohol or drugs. Such test shall include one or more written 14 questions concerning the devastating effects of "Road Rage" on the abil- 15 ity of a person to operate a motor vehicle and the legal and financial 16 consequences resulting from assaulting, threatening or interfering with 17 the lawful conduct of another person legally using the roadway. Such 18 test shall include one or more questions concerning the potential 19 dangers to persons and equipment resulting from the unsafe operation of 20 a motor vehicle in a work zone. Such test may include one or more ques- 21 tions concerning the law for exercising due care to avoid colliding with 22 a parked, stopped or standing vehicle pursuant to section eleven hundred 23 forty-four-a of this chapter. Such test may include one or more ques- 24 tions concerning bicycle and pedestrian safety. Such test shall be 25 administered by the commissioner. The commissioner shall cause the 26 applicant to take a vision test and a test for color blindness. Upon 27 passage of the vision test, the application may be accepted and the 28 application fee shall be payable. 29 § 3. Subparagraph (v) of paragraph (b) of subdivision 2 of section 510 30 of the vehicle and traffic law, as amended by chapter 3 of the laws of 31 1995, is amended to read as follows: 32 (v) For a period of six months where the holder is convicted of, or 33 receives a youthful offender or other juvenile adjudication in 34 connection with, any misdemeanor or felony defined in article two 35 hundred twenty or two hundred twenty-one of the penal law, any violation 36 of the federal controlled substances act, [any crime in violation of37subdivision four of section eleven hundred ninety-two of this chapter] 38 or any out-of-state or federal misdemeanor or felony drug-related 39 offense; provided, however, that any time actually served in custody 40 pursuant to a sentence or disposition imposed as a result of such 41 conviction or youthful offender or other juvenile adjudication shall be 42 credited against the period of such suspension and, provided further, 43 that the court shall determine that such suspension need not be imposed 44 where there are compelling circumstances warranting an exception. 45 § 4. Paragraphs i and j of subdivision 6 of section 510 of the vehicle 46 and traffic law, as added by chapter 533 of the laws of 1993, are 47 amended to read as follows: 48 i. Where suspension of a driver's license is mandatory hereunder based 49 upon a conviction of, or youthful offender or other juvenile adjudi- 50 cation in connection with, any misdemeanor or felony as defined in arti- 51 cle two hundred twenty or two hundred twenty-one of the penal law, any 52 violation of the federal controlled substances act, [any crime in53violation of subdivision four of section eleven hundred ninety-two of54this chapter] or any out-of-state or federal misdemeanor or felony drug- 55 related offense, the commissioner may issue a restricted use license 56 pursuant to section five hundred thirty of this chapter.S. 2008--A 55 A. 3008--A 1 j. Where suspension of a driver's license is mandatory hereunder based 2 upon a conviction of, or youthful offender or other juvenile adjudi- 3 cation in connection with, any misdemeanor or felony as defined in arti- 4 cle two hundred twenty or two hundred twenty-one of the penal law, any 5 violation of the federal controlled substances act, [any crime in6violation of subdivision four of section eleven hundred ninety-two of7this chapter] or any out-of-state or federal misdemeanor or felony drug- 8 related offense and the individual does not have a driver's license or 9 the individual's driver's license was suspended at the time of 10 conviction or youthful offender or other juvenile adjudication, the 11 commissioner shall not issue a new license nor restore the former 12 license for a period of six months after such individual would otherwise 13 have become eligible to obtain a new license or to have the former 14 license restored; provided, however, that during such delay period the 15 commissioner may issue a restricted use license pursuant to section five 16 hundred thirty of this [chapter] title to such previously suspended 17 licensee. 18 § 5. Paragraph (b) of subdivision 2 of section 1193 of the vehicle and 19 traffic law is amended by adding a new subparagraph 13 to read as 20 follows: 21 (13) Where revocation of a driver's license is mandatory hereunder 22 based upon a conviction of, or youthful offender of other juvenile adju- 23 dication in connection with any crime in violation of subdivision four 24 of section eleven hundred ninety-two of this article and the individual 25 does not have a driver's license or the individual's driver's license 26 was suspended or revoked at the time of conviction or youthful offender 27 or other juvenile adjudication, the commissioner shall not issue a new 28 license nor restore the former license for a period of six months after 29 such individual would otherwise have become eligible to obtain a new 30 license or to have the former license restored; provided, however, that 31 during such period the commissioner may issue a conditional license 32 pursuant to section eleven hundred ninety-six of this article to such 33 previously revoked licensee. 34 § 6. Clauses a and b of subparagraph 1 of paragraph (d) of subdivision 35 2 of section 1194 of the vehicle and traffic law, as amended by chapter 36 732 of the laws of 2006, are amended to read as follows: 37 a. Any license which has been revoked pursuant to paragraph (c) of 38 this subdivision shall not be restored for at least [one year] eighteen 39 months after such revocation, nor thereafter, except in the discretion 40 of the commissioner. However, no such license shall be restored for at 41 least [eighteen] twenty-four months after such revocation, nor thereaft- 42 er except in the discretion of the commissioner, in any case where the 43 person has had a prior revocation resulting from refusal to submit to a 44 chemical test, or has been convicted of or found to be in violation of 45 any subdivision of section eleven hundred ninety-two or section eleven 46 hundred ninety-two-a of this article not arising out of the same inci- 47 dent, within the five years immediately preceding the date of such revo- 48 cation; provided, however, a prior finding that a person under the age 49 of twenty-one has refused to submit to a chemical test pursuant to 50 subdivision three of section eleven hundred ninety-four-a of this arti- 51 cle shall have the same effect as a prior finding of a refusal pursuant 52 to this subdivision solely for the purpose of determining the length of 53 any license suspension or revocation required to be imposed under any 54 provision of this article, provided that the subsequent offense or 55 refusal is committed or occurred prior to the expiration of theS. 2008--A 56 A. 3008--A 1 retention period for such prior refusal as set forth in paragraph (k) of 2 subdivision one of section two hundred one of this chapter. 3 b. Any license which has been revoked pursuant to paragraph (c) of 4 this subdivision or pursuant to subdivision three of section eleven 5 hundred ninety-four-a of this article, where the holder was under the 6 age of twenty-one years at the time of such refusal, shall not be 7 restored for at least [one year] eighteen months, nor thereafter, except 8 in the discretion of the commissioner. Where such person under the age 9 of twenty-one years has a prior finding, conviction or youthful offender 10 adjudication resulting from a violation of section eleven hundred nine- 11 ty-two or section eleven hundred ninety-two-a of this article, not aris- 12 ing from the same incident, such license shall not be restored for at 13 least [one year] twenty-four months or until such person reaches the age 14 of twenty-one years, whichever is the greater period of time, nor there- 15 after, except in the discretion of the commissioner. 16 § 7. Paragraphs (a) and (b) of subdivision 2 of section 1225-c of the 17 vehicle and traffic law, as amended by section 4 of part C of chapter 58 18 of the laws of 2013, are amended to read as follows: 19 (a) Except as otherwise provided in this section, no person shall 20 operate a motor vehicle upon a public highway while using a mobile tele- 21 phone to engage in a call while such vehicle is in motion; provided, 22 however, that no person shall operate a commercial motor vehicle while 23 using a mobile telephone to engage in a call on a public highway 24 [including while temporarily stationary because of traffic, a traffic25control device, or other momentary delays]. Provided further, however, 26 that a person shall not be deemed to be operating a [commercial] motor 27 vehicle while using a mobile telephone to engage in a call on a public 28 highway when such vehicle is stopped at the side of, or off, a public 29 highway in a location where such vehicle is not otherwise prohibited 30 from stopping by law, rule, regulation or any lawful order or direction 31 of a police officer. 32 (b) An operator of any motor vehicle upon a public highway who holds a 33 mobile telephone to, or in the immediate proximity of, his or her ear 34 [while such vehicle is in motion] is presumed to be engaging in a call 35 within the meaning of this section[; provided, however, that an operator36of a commercial motor vehicle who holds a mobile telephone to, or in the37immediate proximity of, his or her ear while such vehicle is temporarily38stationary because of traffic, a traffic control device, or other momen-39tary delays is also presumed to be engaging in a call within the meaning40of this section except that a person operating a commercial motor vehi-41cle while using a mobile telephone to engage in a call when such vehicle42is stopped at the side of, or off, a public highway in a location where43such vehicle is not otherwise prohibited from stopping by law, rule,44regulation or any lawful order or direction of a police officer shall45not be presumed to be engaging in a call within the meaning of this46section]. The presumption established by this subdivision is rebuttable 47 by evidence tending to show that the operator was not engaged in a call. 48 § 8. Subdivision 3 of section 1225-c of the vehicle and traffic law, 49 as added by chapter 69 of the laws of 2001, is amended and a new subdi- 50 vision 2-a is added to read as follows: 51 2-a. No person under eighteen years of age shall operate a motor vehi- 52 cle upon a public highway while engaging in a call with a hand held or 53 hands free mobile telephone. For the purposes of this subdivision, 54 engaging in a call shall include making or receiving a call with a hand 55 held or hands free mobile telephone.S. 2008--A 57 A. 3008--A 1 3. [Subdivision] Subdivisions two and two-a of this section shall not 2 apply to (a) the use of a mobile telephone for the sole purpose of 3 communicating with any of the following regarding an emergency situ- 4 ation: an emergency response operator; a hospital, physician's office or 5 health clinic; an ambulance company or corps; a fire department, 6 district or company; or a police department, (b) any of the following 7 persons while in the performance of their official duties: a police 8 officer or peace officer; a member of a fire department, district or 9 company; or the operator of an authorized emergency vehicle as defined 10 in section one hundred one of this chapter, or (c) the use of a hands- 11 free mobile telephone except as applied to persons under the age of 12 eighteen years. 13 § 9. Subdivisions 1 and 4 of section 1225-d of the vehicle and traffic 14 law, subdivision 1 as amended by section 6 and subdivision 4 as amended 15 by section 10 of part C of chapter 58 of the laws of 2013, are amended 16 to read as follows: 17 1. Except as otherwise provided in this section, no person shall oper- 18 ate a motor vehicle while using any portable electronic device [while19such vehicle is in motion; provided, however, that no person shall oper-20ate a commercial motor vehicle while using any portable electronic21device on a public highway including while temporarily stationary22because of traffic, a traffic control device, or other momentary23delays]. Provided further, however, that a person shall not be deemed to 24 be operating a [commercial] motor vehicle while using a portable elec- 25 tronic device on a public highway when such vehicle is stopped at the 26 side of, or off, a public highway in a location where such vehicle is 27 not otherwise prohibited from stopping by law, rule, regulation or any 28 lawful order or direction of a police officer. 29 4. A person who [holds] uses a portable electronic device in a 30 conspicuous manner while operating a motor vehicle or while operating a 31 [commercial] motor vehicle on a public highway [including while tempo-32rarily stationary because of traffic, a traffic control device, or other33momentary delays] but not including when such [commercial] motor vehicle 34 is stopped at the side of, or off, a public highway in a location where 35 such vehicle is not otherwise prohibited from stopping by law, rule, 36 regulation or any lawful order or direction of a police officer is 37 presumed to be using such device[, except that a person operating a38commercial motor vehicle while using a portable electronic device when39such vehicle is stopped at the side of, or off, a public highway in a40location where such vehicle is not otherwise prohibited from stopping by41law, rule, regulation or any lawful order or direction of a police offi-42cer shall not be presumed to be using such device]. The presumption 43 established by this subdivision is rebuttable by evidence tending to 44 show that the operator was not using the device within the meaning of 45 this section. 46 § 10. Paragraphs (a) and (b) of subdivision 2 of section 1225-d of the 47 vehicle and traffic law, as amended by section 8 of part C of chapter 58 48 of the laws of 2013, are amended to read as follows: 49 (a) "Portable electronic device" shall mean any hand-held mobile tele- 50 phone, as defined by subdivision one of section twelve hundred twenty- 51 five-c of this article, personal digital assistant (PDA), handheld 52 device with mobile data access, laptop computer, pager, broadband 53 personal communication device, two-way messaging device, electronic 54 game, or portable computing device, or any other [electronic] personal 55 wireless communications device when used to input, write, send, receive, 56 or read text or images for present or future communication includingS. 2008--A 58 A. 3008--A 1 doing so for the purpose of SMS texting, emailing, instant messaging or 2 engaging in any other form of electronic data retrieval or electronic 3 data communication. 4 (b) "Using" shall mean holding or making contact with a portable elec- 5 tronic device [while] for the purpose of viewing, taking or transmitting 6 images, playing games, or, for the purpose of present or future communi- 7 cation: performing a command or request to access a world wide web page, 8 composing, sending, reading, viewing, accessing, browsing, transmitting, 9 saving or retrieving e-mail, text messages, instant messages, or other 10 electronic data. 11 § 11. Subdivision 2 of section 1225-d of the vehicle and traffic law, 12 is amended by adding a new paragraph (e) to read as follows: 13 (e) "Personal wireless communications device" shall: (i) mean a device 14 through which personal wireless services (as defined in section 15 332(c)(7)(C)(i) of the Communications Act of 1934 (47 U.S.C. 332 16 (c)(7)(C)(i)), are transmitted; and 17 (ii) does not include a global navigation satellite system receiver 18 used for positioning, emergency notification, or navigation purposes. 19 § 12. Subdivision 3 of section 1229-c of the vehicle and traffic law, 20 as added by chapter 365 of the laws of 1984, is amended to read as 21 follows: 22 3. No person shall operate a motor vehicle unless such person is 23 restrained by a safety belt approved by the commissioner. No person 24 sixteen years of age or over shall be a passenger in [the front seat of] 25 a motor vehicle unless such person is restrained by a safety belt 26 approved by the commissioner. 27 § 13. This act shall take effect on the first of October next succeed- 28 ing the date on which it shall have become a law. 29 PART M 30 Section 1. Subdivision 3 of section 16-m of section 1 of chapter 174 31 of the laws of 1968 constituting the New York state urban development 32 corporation act, as amended by section 1 of part F of chapter 58 of the 33 laws of 2016, is amended to read as follows: 34 3. The provisions of this section shall expire, notwithstanding any 35 inconsistent provision of subdivision 4 of section 469 of chapter 309 of 36 the laws of 1996 or of any other law, on July 1, [2017] 2018. 37 § 2. This act shall take effect immediately and shall be deemed to 38 have been in full force and effect on and after July 1, 2017. 39 PART N 40 Section 1. Section 2 of chapter 393 of the laws of 1994, amending the 41 New York state urban development corporation act, relating to the powers 42 of the New York state urban development corporation to make loans, as 43 amended by section 1 of part G of chapter 58 of the laws of 2016, is 44 amended to read as follows: 45 § 2. This act shall take effect immediately provided, however, that 46 section one of this act shall expire on July 1, [2017] 2018, at which 47 time the provisions of subdivision 26 of section 5 of the New York state 48 urban development corporation act shall be deemed repealed; provided, 49 however, that neither the expiration nor the repeal of such subdivision 50 as provided for herein shall be deemed to affect or impair in any manner 51 any loan made pursuant to the authority of such subdivision prior to 52 such expiration and repeal.S. 2008--A 59 A. 3008--A 1 § 2. This act shall take effect immediately and shall be deemed to 2 have been in full force and effect on and after April 1, 2017. 3 PART O 4 Section 1. The opening paragraph of subdivision (h) of section 121 of 5 chapter 261 of the laws of 1988, amending the state finance law and 6 other laws relating to the New York state infrastructure trust fund, as 7 amended by section 2 of part Q of chapter 58 of the laws of 2015, is 8 amended to read as follows: 9 The provisions of [section] sections sixty-two through sixty-six of 10 this act shall expire on December thirty-first, two thousand [seventeen] 11 eighteen, except that: 12 § 2. This act shall take effect immediately. 13 PART P 14 Section 1. Subdivision (a) of section 2 of part F of chapter 60 of the 15 laws of 2015 constituting the infrastructure investment act, is amended 16 to read as follows: 17 (a) "authorized [state] entity" shall mean the New York state thruway 18 authority, [the department of transportation, the office of parks,19recreation and historic preservation, the department of environmental20conservation and] the New York state bridge authority, any authority as 21 such term is defined in section 2 of the public authorities law, every 22 state agency, as such term is defined in section 160 of the state 23 finance law and including the state university of New York and the city 24 university of New York, and any and all affiliates or subsidiaries of 25 such entities, and counties as such term is defined in section 3 of the 26 county law, excluding Bronx, Kings, New York, Queens, and Richmond coun- 27 ties. 28 § 2. Section 2 of part F of chapter 60 of the laws of 2015 constitut- 29 ing the infrastructure investment act, is amended by adding a new subdi- 30 vision (b-1) to read as follows: 31 (b-1) "capital assets" shall have the same meaning as such term is 32 defined by subdivision 6-b of section 2 of the state finance law. 33 § 3. Section 3 of part F of chapter 60 of the laws of 2015 constitut- 34 ing the infrastructure investment act, is amended to read as follows: 35 § 3. Notwithstanding the provisions of section 38 of the highway law, 36 section 136-a of the state finance law, [section] sections 359, 1678, 37 1680, 1680-a and 2879-a of the public authorities law, [section] 38 sections 407-a, 6281 and 7210 of the education law, sections 8 and 9 of 39 the public buildings law, section 11 of chapter 795 of the laws of 1967, 40 sections 8 and 9 of section 1 of chapter 359 of the laws of 1968 as 41 amended, section 29 of chapter 337 of the laws of 1972, section 21 of 42 chapter 464 of the laws of 1972, section 103 of the general municipal 43 law, and the provisions of any other law to the contrary, and in 44 conformity with the requirements of this act, an authorized [state] 45 entity may utilize the alternative delivery method referred to as 46 design-build contracts, in consultation with relevant local labor organ- 47 izations and construction industry, for capital projects related to [the48state's physical infrastructure, including, but not limited to, the49state's highways, bridges, dams, flood control projects, canals, and50parks, including, but not limited to, to repair damage caused by natural51disaster, to correct health and safety defects, to comply with federal52and state laws, standards, and regulations, to extend the useful life ofS. 2008--A 60 A. 3008--A 1or replace the state's highways, bridges, dams, flood control projects,2canals, and parks or to improve or add to the state's highways, bridges,3dams, flood control projects, canals, and parks] publicly owned capital 4 assets; provided that [for the contracts executed by the department of5transportation, the office of parks, recreation and historic preserva-6tion, or the department of environmental conservation,] the total cost 7 of each such project shall not be less than one million two hundred 8 thousand dollars ($1,200,000). 9 § 4. Section 4 of part F of chapter 60 of he laws of 2015 constituting 10 the infrastructure investment act, is amended to read as follows: 11 § 4. An entity selected by an authorized [state] entity to enter into 12 a design-build contract shall be selected through a two-step method, as 13 follows: 14 (a) Step one. Generation of a list of entities that have demonstrated 15 the general capability to perform the design-build contract. Such list 16 shall consist of a specified number of entities, as determined by an 17 authorized [state] entity, and shall be generated based upon the author- 18 ized [state] entity's review of responses to a publicly advertised 19 request for qualifications. The authorized [state] entity's request for 20 qualifications shall include a general description of the project, the 21 maximum number of entities to be included on the list, and the selection 22 criteria to be used in generating the list. Such selection criteria 23 shall include the qualifications and experience of the design and 24 construction team, organization, demonstrated responsibility, ability of 25 the team or of a member or members of the team to comply with applicable 26 requirements, including the provisions of articles 145, 147 and 148 of 27 the education law, past record of compliance with the labor law, and 28 such other qualifications the authorized [state] entity deems appropri- 29 ate which may include but are not limited to project understanding, 30 financial capability and record of past performance. The authorized 31 [state] entity shall evaluate and rate all entities responding to the 32 request for qualifications. Based upon such ratings, the authorized 33 [state] entity shall list the entities that shall receive a request for 34 proposals in accordance with subdivision (b) of this section. To the 35 extent consistent with applicable federal law, the authorized [state] 36 entity shall consider, when awarding any contract pursuant to this 37 section, the participation of: (i) firms certified pursuant to article 38 15-A of the executive law as minority or women-owned businesses and the 39 ability of other businesses under consideration to work with minority 40 and women-owned businesses so as to promote and assist participation by 41 such businesses; [and] (ii) small business concerns identified pursuant 42 to subdivision (b) of section 139-g of the state finance law. 43 (b) Step two. Selection of the proposal which is the best value to the 44 [state] authorized entity. The authorized [state] entity shall issue a 45 request for proposals to the entities listed pursuant to subdivision (a) 46 of this section. If such an entity consists of a team of separate enti- 47 ties, the entities that comprise such a team must remain unchanged from 48 the entity as listed pursuant to subdivision (a) of this section unless 49 otherwise approved by the authorized [state] entity. The request for 50 proposals shall set forth the project's scope of work, and other 51 requirements, as determined by the authorized [state] entity. The 52 request for proposals shall specify the criteria to be used to evaluate 53 the responses and the relative weight of each such criteria. Such 54 criteria shall include the proposal's cost, the quality of the 55 proposal's solution, the qualifications and experience of the design- 56 build entity, and other factors deemed pertinent by the authorizedS. 2008--A 61 A. 3008--A 1 [state] entity, which may include, but shall not be limited to, the 2 proposal's project implementation, ability to complete the work in a 3 timely and satisfactory manner, maintenance costs of the completed 4 project, maintenance of traffic approach, and community impact. Any 5 contract awarded pursuant to this act shall be awarded to a responsive 6 and responsible entity that submits the proposal, which, in consider- 7 ation of these and other specified criteria deemed pertinent to the 8 project, offers the best value to the [state] authorized entity, as 9 determined by the authorized [state] entity. Nothing herein shall be 10 construed to prohibit the authorized entity from negotiating final 11 contract terms and conditions including cost. 12 § 5. Section 6 of part F of chapter 60 of the laws of 2015 constitut- 13 ing the infrastructure investment act, is amended to read as follows: 14 § 6. Construction for each capital project undertaken by the author- 15 ized [state] entity pursuant to this act shall be deemed a "public work" 16 to be performed in accordance with the provisions of article 8 of the 17 labor law, as well as subject to sections 200, 240, 241 and 242 of the 18 labor law and enforcement of prevailing wage requirements by the New 19 York state department of labor. 20 § 6. Section 7 of part F of chapter 60 of the laws of 2015 constitut- 21 ing the infrastructure investment act, is amended to read as follows: 22 § 7. If otherwise applicable, capital projects undertaken by the 23 authorized [state] entity pursuant to this act shall be subject to 24 section 135 of the state finance law, section 101 of the general munici- 25 pal law, and section 222 of the labor law; provided, however, that an 26 authorized entity may fulfill its obligations under section 135 of the 27 state finance law or section 101 of the general municipal law by requir- 28 ing the contractor to prepare separate specifications in accordance with 29 section 135 of the state finance law or section 101 of the general 30 municipal law, as the case may be. 31 § 7. Section 8 of part F of chapter 60 of the laws of 2015 constitut- 32 ing the infrastructure investment act, is amended to read as follows: 33 § 8. Each contract entered into by the authorized [state] entity 34 pursuant to this section shall comply with the objectives and goals of 35 minority and women-owned business enterprises pursuant to article 15-A 36 of the executive law or, for projects receiving federal aid, shall 37 comply with applicable federal requirements for disadvantaged business 38 enterprises. 39 § 8. Section 9 of part F of chapter 60 of the laws of 2015 constitut- 40 ing the infrastructure investment act, is amended to read as follows: 41 § 9. Capital projects undertaken by the authorized [state] entity 42 pursuant to this act shall be subject to the requirements of article 8 43 of the environmental conservation law, and, where applicable, the 44 requirements of the national environmental policy act. 45 § 9. Section 10 of part F of chapter 60 of the laws of 2015 constitut- 46 ing the infrastructure investment act, is amended to read as follows: 47 § 10. If otherwise applicable, capital projects undertaken by the 48 authorized [state] entity pursuant to this act shall be governed by 49 sections 139-d, 139-j, 139-k, paragraph f of subdivision 1 and paragraph 50 g of subdivision 9 of section 163 of the state finance law. 51 § 10. Section 12 of part F of chapter 60 of the laws of 2015 consti- 52 tuting the infrastructure investment act, is amended to read as follows: 53 § 12. Nothing contained in this act shall limit the right or obli- 54 gation of the authorized [state] entity to comply with the provisions of 55 any existing contract, including any existing contract with or for theS. 2008--A 62 A. 3008--A 1 benefit of the holders of the obligations of the authorized [state] 2 entity, or to award contracts as otherwise provided by law. 3 § 11. Section 13 of part F of chapter 60 of the laws of 2015 consti- 4 tuting the infrastructure investment act, is amended to read as follows: 5 § 13. Alternative construction awarding processes. (a) Notwithstand- 6 ing the provisions of any other law to the contrary, the authorized 7 [state] entity may award a construction contract: 8 1. To the contractor offering the best value; or 9 2. Utilizing a cost-plus not to exceed guaranteed maximum price form 10 of contract in which the authorized [state] entity shall be entitled to 11 monitor and audit all project costs. In establishing the schedule and 12 process for determining a guaranteed maximum price, the contract between 13 the authorized [state] entity and the contractor shall: 14 (i) describe the scope of the work and the cost of performing such 15 work; 16 (ii) include a detailed line item cost breakdown; 17 (iii) include a list of all drawings, specifications and other infor- 18 mation on which the guaranteed maximum price is based; 19 (iv) include the dates for substantial and final completion on which 20 the guaranteed maximum price is based; and 21 (v) include a schedule of unit prices; or 22 3. Utilizing a lump sum contract in which the contractor agrees to 23 accept a set dollar amount for a contract which comprises a single bid 24 without providing a cost breakdown for all costs such as for equipment, 25 labor, materials, as well as such contractor's profit for completing all 26 items of work comprising the project. 27 (b) Capital projects undertaken by an authorized [state] entity may 28 include an incentive clause in the contract for various performance 29 objectives, but the incentive clause shall not include an incentive that 30 exceeds the quantifiable value of the benefit received by the [state] 31 authorized entity. The authorized [state] entity shall establish such 32 performance and payment bonds as it deems necessary. 33 § 12. Section 14 of part F of chapter 60 of the laws of 2015 consti- 34 tuting the infrastructure investment act, is amended to read as follows: 35 § 14. Prequalified contractors. (a) Notwithstanding any other 36 provision of law, the authorized [state] entity may maintain a list of 37 prequalified contractors who are eligible to submit a proposal pursuant 38 to this act and entry into such list shall be continuously available. 39 Prospective contractors may be prequalified as contractors to provide 40 particular types of construction, in accordance with general criteria 41 established by the authorized [state] entity which may include, but 42 shall not be limited to, the experience, past performance, ability to 43 undertake the type and complexity of work, financial capability, respon- 44 sibility, compliance with equal employment opportunity requirements and 45 anti-discrimination laws, and reliability. Such prequalification may be 46 by categories designed by size and other factors. 47 (b) A contractor who is denied prequalification or whose prequalifica- 48 tion is revoked or suspended by the authorized [state] entity may appeal 49 such decision to the authorized [state] entity. If such a suspension 50 extends for more than three months, it shall be deemed a revocation of 51 the prequalification. The authorized [state] entity may proceed with the 52 contract award during any appeal. 53 § 13. Part F of chapter 60 of the laws of 2015 constituting the 54 infrastructure investment act, is amended by adding a new section 15-a 55 to read as follows:S. 2008--A 63 A. 3008--A 1 § 15-a. Any contract awarded pursuant to this act shall be deemed to 2 be awarded pursuant to a competitive procurement for purposes of section 3 2879-a of the public authorities law. 4 § 14. Section 17 of part F of chapter 60 of the laws of 2015 consti- 5 tuting the infrastructure investment act, is amended to read as follows: 6 § 17. This act shall take effect immediately [and shall expire and be7deemed repealed 2 years after such date, provided that, projects with8requests for qualifications issued prior to such repeal shall be permit-9ted to continue under this act notwithstanding such repeal]. 10 § 15. This act shall take effect immediately; provided, however that 11 the amendments to the infrastructure investment act made by sections one 12 through thirteen of this act shall not affect the repeal of such act and 13 shall be deemed repealed therewith. 14 PART Q 15 Section 1. Section 2 of chapter 21 of the laws of 2003, amending the 16 executive law relating to permitting the secretary of state to provide 17 special handling for all documents filed or issued by the division of 18 corporations and to permit additional levels of such expedited service, 19 as amended by section 1 of part M of chapter 58 of the laws of 2016, is 20 amended to read as follows: 21 § 2. This act shall take effect immediately, provided however, that 22 section one of this act shall be deemed to have been in full force and 23 effect on and after April 1, 2003 and shall expire March 31, [2017] 24 2018. 25 § 2. This act shall take effect immediately and shall be deemed to 26 have been in full force and effect on and after March 31, 2017. 27 PART R 28 Section 1. Paragraph (d) of section 304 of the business corporation 29 law is amended to read as follows: 30 (d) Any designated post office address maintained by the secretary of 31 state as agent of a domestic corporation or foreign corporation for the 32 purpose of mailing process shall be the post office address, within or 33 without the state, to which a person shall mail process against such 34 corporation as required by this article. Any designated [post-office] 35 post office address to which the secretary of state or a person shall 36 mail a copy of any process served upon [him] the secretary of state as 37 agent of a domestic corporation or a foreign corporation, shall continue 38 until the filing of a certificate under this chapter directing the mail- 39 ing to a different [post-office] post office address. 40 § 2. Paragraph (a) of section 305 of the business corporation law, as 41 amended by chapter 131 of the laws of 1985, is amended to read as 42 follows: 43 (a) In addition to such designation of the secretary of state, every 44 domestic corporation or authorized foreign corporation may designate a 45 registered agent in this state upon whom process against such corpo- 46 ration may be served. The agent shall be a natural person who is a resi- 47 dent of or has a business address in this state [or], a domestic corpo- 48 ration or foreign corporation of any type or kind formed[,] or 49 authorized to do business in this state, under this chapter or under any 50 other statute of this state, or domestic limited liability company or 51 foreign limited liability company formed or authorized to do business in 52 this state.S. 2008--A 64 A. 3008--A 1 § 3. Subparagraph 1 of paragraph (b) of section 306 of the business 2 corporation law, as amended by chapter 419 of the laws of 1990, is 3 amended to read as follows: 4 (1) Service of process on the secretary of state as agent of a domes- 5 tic or authorized foreign corporation, or other business entity that has 6 designated the secretary of state as agent for service of process pursu- 7 ant to article nine of this chapter, shall be made by [personally deliv-8ering to and leaving with the secretary of state or a deputy, or with9any person authorized by the secretary of state to receive such service,10at the office of the department of state in the city of Albany, dupli-11cate copies of such process together with the statutory fee, which fee12shall be a taxable disbursement] mailing the process and notice of 13 service thereof by certified mail, return receipt requested, to such 14 corporation or other business entity, at the post office address on file 15 in the department of state, specified for this purpose. If a domestic or 16 authorized foreign corporation has no such address on file in the 17 department of state, the process and notice of service thereof shall be 18 mailed, in the case of a domestic corporation, in care of any director 19 named in its certificate of incorporation at the director's address 20 stated therein or, in the case of an authorized foreign corporation, to 21 such corporation at the address of its office within this state on file 22 in the department. On the same day that such process is mailed, a dupli- 23 cate copy of such process and proof of mailing together with the statu- 24 tory fee, which fee shall be a taxable disbursement shall be personally 25 delivered to and left with the secretary of state or a deputy, or with 26 any person authorized by the secretary of state to receive such service, 27 at the office of the department of state in the city of Albany. Proof of 28 mailing shall be by affidavit of compliance with this section. Service 29 of process on such corporation or other business entity shall be 30 complete when the secretary of state is so served. [The secretary of31state shall promptly send one of such copies by certified mail, return32receipt requested, to such corporation, at the post office address, on33file in the department of state, specified for the purpose. If a domes-34tic or authorized foreign corporation has no such address on file in the35department of state, the secretary of state shall so mail such copy, in36the case of a domestic corporation, in care of any director named in its37certificate of incorporation at the director's address stated therein38or, in the case of an authorized foreign corporation, to such corpo-39ration at the address of its office within this state on file in the40department.] 41 § 4. Subparagraphs 2 and 3 of paragraph (a) of section 306-A of the 42 business corporation law, as added by chapter 469 of the laws of 1997, 43 are amended to read as follows: 44 (2) That the address of the party has been designated by the corpo- 45 ration as the post office address to which [the secretary of state] a 46 person shall mail a copy of any process served on the secretary of state 47 as agent for such corporation, specifying such address, and that such 48 party wishes to resign. 49 (3) That sixty days prior to the filing of the certificate of resigna- 50 tion or receipt of process with the department of state the party has 51 sent a copy of the certificate of resignation for receipt of process by 52 registered or certified mail to the address of the registered agent of 53 the designating corporation, if other than the party filing the certif- 54 icate of resignation[,] for receipt of process, or if the [resigning] 55 designating corporation has no registered agent, then to the last 56 address of the designating corporation known to the party, specifyingS. 2008--A 65 A. 3008--A 1 the address to which the copy was sent. If there is no registered agent 2 and no known address of the designating corporation, the party shall 3 attach an affidavit to the certificate stating that a diligent but 4 unsuccessful search was made by the party to locate the corporation, 5 specifying what efforts were made. 6 § 5. Subparagraph 7 of paragraph (a) of section 402 of the business 7 corporation law is amended to read as follows: 8 (7) A designation of the secretary of state as agent of the corpo- 9 ration upon whom process against it may be served and the post office 10 address, within or without this state, to which [the secretary of state] 11 a person shall mail a copy of any process against it served upon [him] 12 the secretary of state. 13 § 6. Subparagraph (c) of paragraph 1 of section 408 of the business 14 corporation law, as amended by section 3 of part S of chapter 59 of the 15 laws of 2015, is amended to read as follows: 16 (c) The post office address, within or without this state, to which 17 [the secretary of state] a person shall mail a copy of any process 18 against it served upon [him or her] the secretary of state. Such 19 address shall supersede any previous address on file with the department 20 of state for this purpose. 21 § 7. Subparagraph 4 of paragraph (b) of section 801 of the business 22 corporation law is amended to read as follows: 23 (4) To specify or change the post office address to which [the secre-24tary of state] a person shall mail a copy of any process against the 25 corporation served upon [him] the secretary of state. 26 § 8. Subparagraph 2 of paragraph (b) of section 803 of the business 27 corporation law, as amended by chapter 803 of the laws of 1965, is 28 amended to read as follows: 29 (2) To specify or change the post office address to which [the secre-30tary of state] a person shall mail a copy of any process against the 31 corporation served upon [him] the secretary of state. 32 § 9. Paragraph (b) of section 805-A of the business corporation law, 33 as added by chapter 725 of the laws of 1964, is amended to read as 34 follows: 35 (b) A certificate of change which changes only the post office address 36 to which [the secretary of state] a person shall mail a copy of any 37 process against a corporation served upon [him or] the secretary of 38 state and/or the address of the registered agent, provided such address 39 being changed is the address of a person, partnership, limited liability 40 company or other corporation whose address, as agent, is the address to 41 be changed or who has been designated as registered agent for such 42 corporation, may be signed[, verified] and delivered to the department 43 of state by such agent. The certificate of change shall set forth the 44 statements required under subparagraphs [(a)] (1), (2) and (3) of para- 45 graph (a) of this section; that a notice of the proposed change was 46 mailed to the corporation by the party signing the certificate not less 47 than thirty days prior to the date of delivery to the department and 48 that such corporation has not objected thereto; and that the party sign- 49 ing the certificate is the agent of such corporation to whose address 50 [the secretary of state] a person is required to mail copies of process 51 served on the secretary of state or the registered agent, if such be the 52 case. A certificate signed[, verified] and delivered under this para- 53 graph shall not be deemed to effect a change of location of the office 54 of the corporation in whose behalf such certificate is filed.S. 2008--A 66 A. 3008--A 1 § 10. Subparagraph 8 of paragraph (a) of section 904-a of the business 2 corporation law, as amended by chapter 177 of the laws of 2008, is 3 amended to read as follows: 4 (8) If the surviving or resulting entity is a foreign corporation or 5 other business entity, a designation of the secretary of state as its 6 agent upon whom process against it may be served in the manner set forth 7 in paragraph (b) of section three hundred six of this chapter, in any 8 action or special proceeding, and a post office address, within or with- 9 out this state, to which [the secretary of state] a person shall mail a 10 copy of any process against it served upon [him] the secretary of state. 11 Such post office address shall supersede any prior address designated as 12 the address to which process shall be mailed; 13 § 11. Clause (G) of subparagraph 2 of paragraph (e) of section 907 of 14 the business corporation law, as amended by chapter 494 of the laws of 15 1997, is amended to read as follows: 16 (G) A designation of the secretary of state as its agent upon whom 17 process against it may be served in the manner set forth in paragraph 18 (b) of section 306 (Service of process), in any action or special 19 proceeding, and a post office address, within or without this state, to 20 which [the secretary of state] a person shall mail a copy of any process 21 against it served upon [him] the secretary of state. Such post office 22 address shall supersede any prior address designated as the address to 23 which process shall be mailed. 24 § 12. Subparagraph 6 of paragraph (a) of section 1304 of the business 25 corporation law, as amended by chapter 684 of the laws of 1963 and as 26 renumbered by chapter 590 of the laws of 1982, is amended to read as 27 follows: 28 (6) A designation of the secretary of state as its agent upon whom 29 process against it may be served and the post office address, within or 30 without this state, to which [the secretary of state] a person shall 31 mail a copy of any process against it served upon [him] the secretary of 32 state. 33 § 13. Subparagraph 7 of paragraph (a) of section 1308 of the business 34 corporation law, as amended by chapter 725 of the laws of 1964 and as 35 renumbered by chapter 186 of the laws of 1983, is amended to read as 36 follows: 37 (7) To specify or change the post office address to which [the secre-38tary of state] a person shall mail a copy of any process against it 39 served upon [him] the secretary of state. 40 § 14. Subparagraph 2 of paragraph (a) and paragraph (c) of section 41 1309-A of the business corporation law, subparagraph 2 of paragraph (a) 42 as added by chapter 725 of the laws of 1964 and paragraph (c) as amended 43 by chapter 172 of the laws of 1999, are amended to read as follows: 44 (2) To specify or change the post office address to which [the secre-45tary of state] a person shall mail a copy of any process against it 46 served upon [him] the secretary of state. 47 (c) A certificate of change of application for authority which changes 48 only the post office address to which [the secretary of state] a person 49 shall mail a copy of any process against an authorized foreign corpo- 50 ration served upon [him or which] the secretary of state and/or changes 51 the address of its registered agent, provided such address is the 52 address of a person, partnership, limited liability company or other 53 corporation whose address, as agent, is the address to be changed or who 54 has been designated as registered agent for such authorized foreign 55 corporation, may be signed and delivered to the department of state by 56 such agent. The certificate of change of application for authority shallS. 2008--A 67 A. 3008--A 1 set forth the statements required under subparagraphs (1), (2), (3) and 2 (4) of paragraph (b) of this section; that a notice of the proposed 3 change was mailed by the party signing the certificate to the authorized 4 foreign corporation not less than thirty days prior to the date of 5 delivery to the department and that such corporation has not objected 6 thereto; and that the party signing the certificate is the agent of such 7 foreign corporation to whose address [the secretary of state] a person 8 is required to mail copies of process served on the secretary of state 9 or the registered agent, if such be the case. A certificate signed and 10 delivered under this paragraph shall not be deemed to effect a change of 11 location of the office of the corporation in whose behalf such certif- 12 icate is filed. 13 § 15. Subparagraphs 1 and 6 of paragraph (a) of section 1310 of the 14 business corporation law, subparagraph 1 as amended by chapter 590 of 15 the laws of 1982, are amended to read as follows: 16 (1) The name of the foreign corporation as it appears on the index of 17 names of existing domestic and authorized foreign corporations of any 18 type or kind in the department of state, division of corporations [or,] 19 and the fictitious name, if any, the corporation has agreed to use in 20 this state pursuant to paragraph (d) of section 1301 of this [chapter] 21 article. 22 (6) A post office address, within or without this state, to which [the23secretary of state] a person shall mail a copy of any process against it 24 served upon [him] the secretary of state. 25 § 16. Subparagraph 4 of paragraph (d) of section 1310 of the business 26 corporation law is amended to read as follows: 27 (4) The changed post office address, within or without this state, to 28 which [the secretary of state] a person shall mail a copy of any process 29 against it served upon [him] the secretary of state. 30 § 17. Section 1311 of the business corporation law, as amended by 31 chapter 375 of the laws of 1998, is amended to read as follows: 32 § 1311. Termination of existence. 33 When an authorized foreign corporation is dissolved or its authority 34 or existence is otherwise terminated or cancelled in the jurisdiction of 35 its incorporation or when such foreign corporation is merged into or 36 consolidated with another foreign corporation, a certificate of the 37 secretary of state, or official performing the equivalent function as to 38 corporate records, of the jurisdiction of incorporation of such foreign 39 corporation attesting to the occurrence of any such event or a certified 40 copy of an order or decree of a court of such jurisdiction directing the 41 dissolution of such foreign corporation, the termination of its exist- 42 ence or the cancellation of its authority shall be delivered to the 43 department of state. The filing of the certificate, order or decree 44 shall have the same effect as the filing of a certificate of surrender 45 of authority under section 1310 (Surrender of authority). The secretary 46 of state shall continue as agent of the foreign corporation upon whom 47 process against it may be served in the manner set forth in paragraph 48 (b) of section 306 (Service of process), in any action or special 49 proceeding based upon any liability or obligation incurred by the 50 foreign corporation within this state prior to the filing of such 51 certificate, order or decree and [he] the person serving such process 52 shall [promptly cause a copy of any such] send the process [to be53mailed] by [registered] certified mail, return receipt requested, to 54 such foreign corporation at the post office address on file in his 55 office specified for such purpose and shall provide the secretary of 56 state with proof of such mailing in the manner set forth in paragraphS. 2008--A 68 A. 3008--A 1 (b) of section 306 (service of process). The post office address may be 2 changed by signing and delivering to the department of state a certif- 3 icate of change setting forth the statements required under section 4 1309-A (Certificate of change; contents) to effect a change in the post 5 office address under subparagraph seven of paragraph (a) [(4)] of 6 section 1308 (Amendments or changes). 7 § 18. Subparagraph 6 of paragraph (a) of section 1530 of the business 8 corporation law, as added by chapter 505 of the laws of 1983, is amended 9 to read as follows: 10 (6) A designation of the secretary of state as its agent upon whom 11 process against it may be served and the post office address, within or 12 without this state, to which [the secretary of state] a person shall 13 mail a copy of any process against it served upon [him] the secretary of 14 state. 15 § 19. Subdivision 10 of section 11 of the cooperative corporations 16 law, as added by chapter 97 of the laws of 1969, is amended to read as 17 follows: 18 10. A designation of the secretary of state as agent of the corpo- 19 ration upon whom process against it may be served and the post office 20 address, within or without this state, to which [the secretary of state] 21 a person shall mail a copy of any process against it served upon [him] 22 the secretary of state. 23 § 20. Subdivision 10 of section 96 of the executive law, as amended by 24 chapter 39 of the laws of 1987, is amended to read as follows: 25 10. For service of process on the secretary of state, acting as agent 26 for a third party pursuant to law, except as otherwise specifically 27 provided by law, forty dollars. No fee shall be collected for process 28 served on behalf of [a] any state official, department, board, agency, 29 authority, county, city, town or village or other political subdivision 30 of the state. The fees paid the secretary of state shall be a taxable 31 disbursement. 32 § 21. The opening paragraph of subdivision 2 and subdivision 3 of 33 section 18 of the general associations law, as amended by chapter 13 of 34 the laws of 1938, are amended and two new subdivisions 5 and 6 are added 35 to read as follows: 36 Every association doing business within this state shall file in the 37 department of state a certificate in its associate name, signed [and38acknowledged] by its president, or a vice-president, or secretary, or 39 treasurer, or managing director, or trustee, designating the secretary 40 of state as an agent upon whom process in any action or proceeding 41 against the association may be served within this state, and setting 42 forth an address to which [the secretary of state] a person shall mail a 43 copy of any process against the association which may be served upon 44 [him] the secretary of state pursuant to law. Annexed to the certif- 45 icate of designation shall be a statement, executed in the same manner 46 as the certificate is required to be executed under this section, which 47 shall set forth: 48 3. Any association, from time to time, may change the address to 49 which [the secretary of state] a person is directed to mail copies of 50 process served on the secretary of state, by filing a statement to that 51 effect, executed[,] and signed [and acknowledged] in like manner as a 52 certificate of designation as herein provided. 53 5. Any designated post office address maintained by the secretary of 54 state as agent in any action or proceeding against the association for 55 the purpose of mailing process shall be the post office address, within 56 or without the state, to which a person shall mail process against suchS. 2008--A 69 A. 3008--A 1 association as required by this article. Such address shall continue 2 until the filing of a certificate under this chapter directing the mail- 3 ing to a different post office address. 4 6. "Process" means judicial process and all orders, demands, notices 5 or other papers required or permitted by law to be personally served on 6 an association, for the purpose of acquiring jurisdiction of such asso- 7 ciation in any action or proceeding, civil or criminal, whether judi- 8 cial, administrative, arbitrative or otherwise, in this state or in the 9 federal courts sitting in or for this state. 10 § 22. Section 19 of the general associations law, as amended by chap- 11 ter 166 of the laws of 1991, is amended to read as follows: 12 § 19. Service of process. 1. Service of process against an associ- 13 ation upon the secretary of state shall be made by mailing the process 14 and notice of service thereof by certified mail, return receipt 15 requested, to such corporation or other business entity, at the post 16 office address, on file in the department of state, specified for this 17 purpose. On the same day that such process is mailed, a duplicate copy 18 of such process and proof of mailing shall be personally [delivering] 19 delivered to and [leaving] left with [him] the secretary of state or a 20 deputy [secretary of state or an associate attorney, senior attorney or21attorney in the corporation division of the department of state], so 22 designated [duplicate copies of such process at the office of the23department of state in the city of Albany]. At the time of such service 24 the plaintiff shall pay a fee of forty dollars to the secretary of state 25 which shall be a taxable disbursement. [If the cost of registered mail26for transmitting a copy of the process shall exceed two dollars, an27additional fee equal to such excess shall be paid at the time of the28service of such process. The secretary of state shall forthwith send by29registered mail one of such copies to the association at the address30fixed for that purpose, as herein provided.] 31 2. Proof of mailing shall be by affidavit of compliance with this 32 section. Service of process on such association shall be complete when 33 the secretary of state is so served. If the action or proceeding is 34 instituted in a court of limited jurisdiction, service of process may be 35 made in the manner provided in this section if the cause of action arose 36 within the territorial jurisdiction of the court and the office of the 37 defendant, as set forth in its statement filed pursuant to section eigh- 38 teen of this [chapter] article, is within such territorial jurisdiction. 39 § 23. Subdivision 2 of section 352-b of the general business law, as 40 amended by chapter 252 of the laws of 1983, is amended to read as 41 follows: 42 2. Service of such process upon the secretary of state shall be made 43 by personally delivering to and leaving with him [or], a deputy secre- 44 tary of state, or with a person authorized by the secretary of state to 45 receive such service, a copy thereof at the office of the department of 46 state in the city of Albany, and such service shall be sufficient 47 service provided that notice of such service and a copy of such process 48 are forthwith sent by the attorney general to such person, partnership, 49 corporation, company, trust or association, by registered or certified 50 mail with return receipt requested, at his or its office as set forth in 51 the "broker-dealer's statement", "salesman's statement" or "investment 52 advisor's statement" filed in the department of law pursuant to section 53 three hundred fifty-nine-e or section three hundred fifty-nine-eee of 54 this article, or in default of the filing of such statement, at the last 55 address known to the attorney general. Service of such process shall be 56 complete on receipt by the attorney general of a return receipt purport-S. 2008--A 70 A. 3008--A 1 ing to be signed by the addressee or a person qualified to receive his 2 or its registered or certified mail, in accordance with the rules and 3 customs of the post office department, or, if acceptance was refused by 4 the addressee or his or its agent, on return to the attorney general of 5 the original envelope bearing a notation by the postal authorities that 6 receipt thereof was refused. 7 § 24. Section 686 of the general business law, as added by chapter 730 8 of the laws of 1980, is amended to read as follows: 9 § 686. Designation of secretary of state as agent for service of proc- 10 ess; service of process. Any person who shall offer to sell or sell a 11 franchise in this state as a franchisor, subfranchisor or franchise 12 sales agent shall be deemed to have irrevocably appointed the secretary 13 of state as his or its agent upon whom may be served any summons, 14 complaint, subpoena, subpoena duces tecum, notice, order or other proc- 15 ess directed to such person, or any partner, principal, officer, sales- 16 man or director thereof, or his or its successor, administrator or exec- 17 utor, in any action, investigation, or proceeding which arises under 18 this article or a rule hereunder, with the same force and validity as if 19 served personally on such person. Service of such process upon the 20 secretary of state shall be made by personally delivering to and leaving 21 with [him] the secretary of state or a deputy [secretary of state], or 22 with any person authorized by the secretary of state to receive such 23 service, a copy thereof at the office of the department of state, and 24 such service shall be sufficient provided that notice of such service 25 and a copy of such process are sent forthwith by the department to such 26 person, by registered or certified mail with return receipt requested, 27 at his address as set forth in the application for registration of his 28 offering prospectus or in the registered offering prospectus itself 29 filed with the department of law pursuant to this article, or in default 30 of the filing of such application or prospectus, at the last address 31 known to the department. Service of such process shall be complete upon 32 receipt by the department of a return receipt purporting to be signed by 33 the addressee or a person qualified to receive his or its registered or 34 certified mail, in accordance with the rules and customs of the post 35 office department, or, if acceptance was refused or unclaimed by the 36 addressee or his or its agent, or if the addressee moved without leaving 37 a forwarding address, upon return to the department of the original 38 envelope bearing a notation by the postal authorities that receipt ther- 39 eof was refused or that such mail was otherwise undeliverable. 40 § 25. Paragraph 4 of subdivision (e) of section 203 of the limited 41 liability company law, as added by chapter 470 of the laws of 1997, is 42 amended to read as follows: 43 (4) a designation of the secretary of state as agent of the limited 44 liability company upon whom process against it may be served and the 45 post office address, within or without this state, to which [the secre-46tary of state] a person shall mail a copy of any process against the 47 limited liability company served upon [him or her] the secretary of 48 state; 49 § 26. Paragraph 4 of subdivision (a) of section 206 of the limited 50 liability company law, as amended by chapter 44 of the laws of 2006, is 51 amended to read as follows: 52 (4) a statement that the secretary of state has been designated as 53 agent of the limited liability company upon whom process against it may 54 be served and the post office address, within or without this state, to 55 which [the secretary of state] a person shall mail a copy of any process 56 against it served upon [him or her] the secretary of state;S. 2008--A 71 A. 3008--A 1 § 27. Paragraph 6 of subdivision (d) of section 211 of the limited 2 liability company law is amended to read as follows: 3 (6) a change in the post office address to which [the secretary of4state] a person shall mail a copy of any process against the limited 5 liability company served upon [him or her] the secretary of state if 6 such change is made other than pursuant to section three hundred one of 7 this chapter; 8 § 28. Section 211-A of the limited liability company law, as added by 9 chapter 448 of the laws of 1998, is amended to read as follows: 10 § 211-A. Certificate of change. (a) A limited liability company may 11 amend its articles of organization from time to time to (i) specify or 12 change the location of the limited liability company's office; (ii) 13 specify or change the post office address to which [the secretary of14state] a person shall mail a copy of any process against the limited 15 liability company served upon [him] the secretary of state; and (iii) 16 make, revoke or change the designation of a registered agent, or specify 17 or change the address of the registered agent. Any one or more such 18 changes may be accomplished by filing a certificate of change which 19 shall be entitled "Certificate of Change of ....... (name of limited 20 liability company) under section 211-A of the Limited Liability Company 21 Law" and shall be signed and delivered to the department of state. It 22 shall set forth: 23 (1) the name of the limited liability company, and if it has been 24 changed, the name under which it was formed; 25 (2) the date the articles of organization were filed by the department 26 of state; and 27 (3) each change effected thereby. 28 (b) A certificate of change which changes only the post office address 29 to which [the secretary of state] a person shall mail a copy of any 30 process against a limited liability company served upon [him or] the 31 secretary of state and/or the address of the registered agent, provided 32 such address being changed is the address of a person, partnership, 33 limited liability company or corporation whose address, as agent, is the 34 address to be changed or who has been designated as registered agent for 35 such limited liability company may be signed and delivered to the 36 department of state by such agent. The certificate of change shall set 37 forth the statements required under subdivision (a) of this section; 38 that a notice of the proposed change was mailed to the domestic limited 39 liability company by the party signing the certificate not less than 40 thirty days prior to the date of delivery to the department of state and 41 that such domestic limited liability company has not objected thereto; 42 and that the party signing the certificate is the agent of such limited 43 liability company to whose address [the secretary of state] a person is 44 required to mail copies of process served on the secretary of state or 45 the registered agent, if such be the case. A certificate signed and 46 delivered under this subdivision shall not be deemed to effect a change 47 of location of the office of the limited liability company in whose 48 behalf such certificate is filed. 49 § 29. Paragraph 2 of subdivision (b) of section 213 of the limited 50 liability company law is amended to read as follows: 51 (2) to change the post office address to which [the secretary of52state] a person shall mail a copy of any process against the limited 53 liability company served upon [him or her] the secretary of state; and 54 § 30. Subdivisions (c) and (e) of section 301 of the limited liability 55 company law, subdivision (e) as amended by section 5 of part S of chap- 56 ter 59 of the laws of 2015, are amended to read as follows:S. 2008--A 72 A. 3008--A 1 (c) Any designated post office address maintained by the secretary of 2 state as agent of a domestic limited liability company or foreign limit- 3 ed liability company for the purpose of mailing process shall be the 4 post office address, within or without the state, to which a person 5 shall mail process against such limited liability company as required by 6 this article. Any designated post office address to which the secretary 7 of state or a person shall mail a copy of process served upon [him or8her] the secretary of state as agent of a domestic limited liability 9 company or a foreign limited liability company shall continue until the 10 filing of a certificate under this chapter directing the mailing to a 11 different post office address. 12 [(e)] (d) (1) Except as otherwise provided in this subdivision, every 13 limited liability company to which this chapter applies, shall biennial- 14 ly in the calendar month during which its articles of organization or 15 application for authority were filed, or effective date thereof if stat- 16 ed, file on forms prescribed by the secretary of state, a statement 17 setting forth the post office address within or without this state to 18 which [the secretary of state] a person shall mail a copy of any process 19 accepted against it served upon [him or her] the secretary of state. 20 Such address shall supersede any previous address on file with the 21 department of state for this purpose. 22 (2) The commissioner of taxation and finance and the secretary of 23 state may agree to allow limited liability companies to include the 24 statement specified in paragraph one of this subdivision on tax reports 25 filed with the department of taxation and finance in lieu of biennial 26 statements and in a manner prescribed by the commissioner of taxation 27 and finance. If this agreement is made, starting with taxable years 28 beginning on or after January first, two thousand sixteen, each limited 29 liability company required to file the statement specified in paragraph 30 one of this subdivision that is subject to the filing fee imposed by 31 paragraph three of subsection (c) of section six hundred fifty-eight of 32 the tax law shall provide such statement annually on its filing fee 33 payment form filed with the department of taxation and finance in lieu 34 of filing a statement under this section with the department of state. 35 However, each limited liability company required to file a statement 36 under this section must continue to file the biennial statement required 37 by this section with the department of state until the limited liability 38 company in fact has filed a filing fee payment form with the department 39 of taxation and finance that includes all required information. After 40 that time, the limited liability company shall continue to provide annu- 41 ally the statement specified in paragraph one of this subdivision on its 42 filing fee payment form in lieu of the biennial statement required by 43 this subdivision. 44 (3) If the agreement described in paragraph two of this subdivision is 45 made, the department of taxation and finance shall deliver to the 46 department of state the statement specified in paragraph one of this 47 subdivision contained on filing fee payment forms. The department of 48 taxation and finance must, to the extent feasible, also include the 49 current name of the limited liability company, department of state iden- 50 tification number for such limited liability company, the name, signa- 51 ture and capacity of the signer of the statement, name and street 52 address of the filer of the statement, and the email address, if any, of 53 the filer of the statement. 54 § 31. Paragraphs 2 and 3 of subdivision (a), subparagraph (ii) of 55 paragraph 2 and subparagraph (ii) of paragraph 3 of subdivision (e) ofS. 2008--A 73 A. 3008--A 1 section 301-A of the limited liability company law, as added by chapter 2 448 of the laws of 1998, are amended to read as follows: 3 (2) that the address of the party has been designated by the limited 4 liability company as the post office address to which [the secretary of5state] a person shall mail a copy of any process served on the secretary 6 of state as agent for such limited liability company, such address and 7 that such party wishes to resign. 8 (3) that sixty days prior to the filing of the certificate of resigna- 9 tion or receipt of process with the department of state the party has 10 sent a copy of the certificate of resignation for receipt of process by 11 registered or certified mail to the address of the registered agent of 12 the designated limited liability company, if other than the party filing 13 the certificate of resignation[,] for receipt of process, or if the 14 [resigning] designating limited liability company has no registered 15 agent, then to the last address of the designated limited liability 16 company known to the party, specifying the address to which the copy was 17 sent. If there is no registered agent and no known address of the desig- 18 nating limited liability company, the party shall attach an affidavit to 19 the certificate stating that a diligent but unsuccessful search was made 20 by the party to locate the limited liability company, specifying what 21 efforts were made. 22 (ii) sent by or on behalf of the plaintiff to such limited liability 23 company by registered or certified mail with return receipt requested to 24 the last address of such limited liability company known to the plain- 25 tiff. 26 (ii) Where service of a copy of process was effected by mailing in 27 accordance with this section, proof of service shall be by affidavit of 28 compliance with this section filed, together with the process, within 29 thirty days after receipt of the return receipt signed by the limited 30 liability company or other official proof of delivery or of the original 31 envelope mailed. If a copy of the process is mailed in accordance with 32 this section, there shall be filed with the affidavit of compliance 33 either the return receipt signed by such limited liability company or 34 other official proof of delivery, if acceptance was refused by it, the 35 original envelope with a notation by the postal authorities that accept- 36 ance was refused. If acceptance was refused a copy of the notice and 37 process together with notice of the mailing by registered or certified 38 mail and refusal to accept shall be promptly sent to such limited 39 liability company at the same address by ordinary mail and the affidavit 40 of compliance shall so state. Service of process shall be complete ten 41 days after such papers are filed with the clerk of the court. The 42 refusal to accept delivery of the registered or certified mail or to 43 sign the return receipt shall not affect the validity of the service and 44 such limited liability company refusing to accept such registered or 45 certified mail shall be charged with knowledge of the contents thereof. 46 § 32. Subdivision (a) of section 303 of the limited liability company 47 law, as relettered by chapter 341 of the laws of 1999, is amended to 48 read as follows: 49 (a) Service of process on the secretary of state as agent of a domes- 50 tic limited liability company [or], authorized foreign limited liability 51 company, or other business entity that has designated the secretary of 52 state as agent for service of process pursuant to article ten of this 53 chapter, shall be made by mailing the process and notice of service 54 thereof by certified mail, return receipt requested, to such limited 55 liability company or other business entity, at the post office address, 56 on file in the department of state, specified for this purpose. On theS. 2008--A 74 A. 3008--A 1 same day as such process is mailed, a duplicate copy of such process and 2 proof of mailing shall be [made by] personally [delivering] delivered to 3 and [leaving] left with the secretary of state or his or her deputy, or 4 with any person authorized by the secretary of state to receive such 5 service, at the office of the department of state in the city of Albany, 6 [duplicate copies of such process] together with the statutory fee, 7 which fee shall be a taxable disbursement. Proof of mailing shall be by 8 affidavit of compliance with this section. Service of process on such 9 limited liability company or other business entity shall be complete 10 when the secretary of state is so served. [The secretary of state shall11promptly send one of such copies by certified mail, return receipt12requested, to such limited liability company at the post office address13on file in the department of state specified for that purpose.] 14 § 33. Section 305 of the limited liability company law is amended to 15 read as follows: 16 § 305. Records of process served on the secretary of state. The 17 [secretary of state] department of state shall keep a record of each 18 process served upon the secretary of state under this chapter, including 19 the date of such service [and the action of the secretary of state with20reference thereto]. It shall, upon request made within ten years of such 21 service, issue a certificate under its seal certifying as to the receipt 22 of the process by an authorized person, the date and place of such 23 service and the receipt of the statutory fee. Process served upon the 24 secretary of state under this chapter shall be destroyed by the depart- 25 ment of state after a period of ten years from such service. 26 § 34. Paragraph 4 of subdivision (a) of section 802 of the limited 27 liability company law, as amended by chapter 470 of the laws of 1997, is 28 amended to read as follows: 29 (4) a designation of the secretary of state as its agent upon whom 30 process against it may be served and the post office address, within or 31 without this state, to which [the secretary of state] a person shall 32 mail a copy of any process against it served upon [him or her] the 33 secretary of state; 34 § 35. Section 804-A of the limited liability company law, as added by 35 chapter 448 of the laws of 1998, is amended to read as follows: 36 § 804-A. Certificate of change. (a) A foreign limited liability compa- 37 ny may amend its application for authority from time to time to (i) 38 specify or change the location of the limited liability company's 39 office; (ii) specify or change the post office address to which [the40secretary of state] a person shall mail a copy of any process against 41 the limited liability company served upon [him] the secretary of state; 42 and (iii) to make, revoke or change the designation of a registered 43 agent, or to specify or change the address of a registered agent. Any 44 one or more such changes may be accomplished by filing a certificate of 45 change which shall be entitled "Certificate of Change of ........ (name 46 of limited liability company) under section 804-A of the Limited Liabil- 47 ity Company Law" and shall be signed and delivered to the department of 48 state. It shall set forth: 49 (1) the name of the foreign limited liability company and, if applica- 50 ble, the fictitious name the limited liability company has agreed to use 51 in this state pursuant to section eight hundred two of this article; 52 (2) the date its application for authority was filed by the department 53 of state; and 54 (3) each change effected thereby[,]. 55 (b) A certificate of change which changes only the post office address 56 to which [the secretary of state] a person shall mail a copy of anyS. 2008--A 75 A. 3008--A 1 process against a foreign limited liability company served upon [him or] 2 the secretary of state and/or the address of the registered agent, 3 provided such address being changed is the address of a person, partner- 4 ship [or], corporation or other limited liability company whose address, 5 as agent, is the address to be changed or who has been designated as 6 registered agent for such limited liability company may be signed and 7 delivered to the department of state by such agent. The certificate of 8 change shall set forth the statements required under subdivision (a) of 9 this section; that a notice of the proposed change was mailed to the 10 foreign limited liability company by the party signing the certificate 11 not less than thirty days prior to the date of delivery to the depart- 12 ment of state and that such foreign limited liability company has not 13 objected thereto; and that the party signing the certificate is the 14 agent of such foreign limited liability company to whose address [the15secretary of state] a person is required to mail copies of process 16 served on the secretary of state or the registered agent, if such be the 17 case. A certificate signed and delivered under this subdivision shall 18 not be deemed to effect a change of location of the office of the 19 foreign limited liability company in whose behalf such certificate is 20 filed. 21 § 36. Paragraph 6 of subdivision (b) of section 806 of the limited 22 liability company law is amended to read as follows: 23 (6) a post office address, within or without this state, to which [the24secretary of state] a person shall mail a copy of any process against it 25 served upon [him or her] the secretary of state. 26 § 37. Paragraph 11 of subdivision (a) of section 1003 of the limited 27 liability company law, as amended by chapter 374 of the laws of 1998, is 28 amended to read as follows: 29 (11) a designation of the secretary of state as its agent upon whom 30 process against it may be served in the manner set forth in article 31 three of this chapter in any action or special proceeding, and a post 32 office address, within or without this state, to which [the secretary of33state] a person shall mail a copy of any process served upon [him or34her] the secretary of state. Such post office address shall supersede 35 any prior address designated as the address to which process shall be 36 mailed; 37 § 38. Clause (iv) of subparagraph (A) of paragraph 2 of subdivision 38 (c) of section 1203 of the limited liability company law, as amended by 39 chapter 44 of the laws of 2006, is amended to read as follows: 40 (iv) a statement that the secretary of state has been designated as 41 agent of the professional service limited liability company upon whom 42 process against it may be served and the post office address, within or 43 without this state, to which [the secretary of state] a person shall 44 mail a copy of any process against it served upon [him or her] the 45 secretary of state; 46 § 39. Paragraph 6 of subdivision (a) and subparagraph 5 of paragraph 47 (i) of subdivision (d) of section 1306 of the limited liability company 48 law, subparagraph 5 of paragraph (i) of subdivision (d) as amended by 49 chapter 44 of the laws of 2006, are amended to read as follows: 50 (6) a designation of the secretary of state as its agent upon whom 51 process against it may be served and the post office address, within or 52 without this state, to which [the secretary of state] a person shall 53 mail a copy of any process against it served upon [him or her] the 54 secretary of state; and 55 (5) a statement that the secretary of state has been designated as 56 agent of the foreign professional service limited liability company uponS. 2008--A 76 A. 3008--A 1 whom process against it may be served and the post office address, with- 2 in or without this state, to which [the secretary of state] a person 3 shall mail a copy of any process against it served upon [him or her] the 4 secretary of state; 5 § 40. Paragraph (d) of section 304 of the not-for-profit corporation 6 law, as amended by chapter 358 of the laws of 2015, is amended to read 7 as follows: 8 (d) Any designated post office address maintained by the secretary of 9 state as agent of a domestic not-for-profit corporation or foreign not- 10 for-profit corporation for the purpose of mailing process shall be the 11 post office address, within or without the state, to which a person 12 shall mail process against such corporation as required by this article. 13 Any designated [post-office] post office address to which the secretary 14 of state or a person shall mail a copy of process served upon [him or15her] the secretary of state as agent of a domestic corporation formed 16 under article four of this chapter or foreign corporation, shall contin- 17 ue until the filing of a certificate under this chapter directing the 18 mailing to a different [post-office] post office address. 19 § 41. Paragraph (a) of section 305 of the not-for-profit corporation 20 law, as amended by chapter 549 of the laws of 2013, is amended to read 21 as follows: 22 (a) Every domestic corporation or authorized foreign corporation may 23 designate a registered agent in this state upon whom process against 24 such corporation may be served. The agent shall be a natural person who 25 is a resident of or has a business address in this state or a domestic 26 corporation or foreign corporation of any kind formed[,] or authorized 27 to do business in this state, under this chapter or under any other 28 statute of this state, or a domestic limited liability company or a 29 foreign limited liability company authorized to do business in this 30 state. 31 § 42. Paragraph (b) of section 306 of the not-for-profit corporation 32 law, as amended by chapter 23 of the laws of 2014, is amended to read as 33 follows: 34 (b) Service of process on the secretary of state as agent of a domes- 35 tic corporation formed under article four of this chapter or an author- 36 ized foreign corporation shall be made by mailing the process and notice 37 of service thereof by certified mail, return receipt requested, to such 38 corporation or other business entity, at the post office address, on 39 file in the department of state, specified for this purpose. On the same 40 day that such process is mailed, a duplicate copy of such process and 41 proof of mailing shall be personally [delivering] delivered to and 42 [leaving] left with the secretary of state or his or her deputy, or with 43 any person authorized by the secretary of state to receive such service, 44 at the office of the department of state in the city of Albany, [dupli-45cate copies of such process] together with the statutory fee, which fee 46 shall be a taxable disbursement. Proof of mailing shall be by affidavit 47 of compliance with this section. Service of process on such corporation 48 or other business entity shall be complete when the secretary of state 49 is so served. [The secretary of state shall promptly send one of such50copies by certified mail, return receipt requested, to such corporation,51at the post office address, on file in the department of state, speci-52fied for the purpose.] If a domestic corporation formed under article 53 four of this chapter or an authorized foreign corporation has no such 54 address on file in the department of state, the [secretary of state55shall so mail such] duplicate copy of the process shall be mailed toS. 2008--A 77 A. 3008--A 1 such corporation at the address of its office within this state on file 2 in the department. 3 § 43. Subparagraph 6 of paragraph (a) of section 402 of the not-for- 4 profit corporation law, as added by chapter 564 of the laws of 1981 and 5 as renumbered by chapter 132 of the laws of 1985, is amended to read as 6 follows: 7 (6) A designation of the secretary of state as agent of the corpo- 8 ration upon whom process against it may be served and the post office 9 address, within or without this state, to which [the secretary of state] 10 a person shall mail a copy of any process against it served upon [him] 11 the secretary of state. 12 § 44. Subparagraph 7 of paragraph (b) of section 801 of the not-for- 13 profit corporation law, as amended by chapter 438 of the laws of 1984, 14 is amended to read as follows: 15 (7) To specify or change the post office address to which [the secre-16tary of state] a person shall mail a copy of any process against the 17 corporation served upon [him] the secretary of state. 18 § 45. Subparagraph 2 of paragraph (c) of section 802 of the not-for- 19 profit corporation law, as amended by chapter 186 of the laws of 1983, 20 is amended to read as follows: 21 (2) To specify or change the post office address to which [the secre-22tary of state] a person shall mail a copy of any process against the 23 corporation served upon [him] the secretary of state. 24 § 46. Subparagraph 6 of paragraph (a) of section 803 of the not-for- 25 profit corporation law, as amended by chapter 23 of the laws of 2014, is 26 amended to read as follows: 27 (6) A designation of the secretary of state as agent of the corpo- 28 ration upon whom process against it may be served and the post office 29 address, within or without this state, to which [the secretary of30state] a person shall mail a copy of any process against it served upon 31 the secretary of state. 32 § 47. Paragraph (b) of section 803-A of the not-for-profit corporation 33 law, as amended by chapter 172 of the laws of 1999, is amended to read 34 as follows: 35 (b) A certificate of change which changes only the post office address 36 to which [the secretary of state] a person shall mail a copy of any 37 process against the corporation served upon [him or] the secretary of 38 state and/or the address of the registered agent, provided such address 39 being changed is the address of a person, partnership, limited liability 40 company or other corporation whose address, as agent, is the address to 41 be changed or who has been designated as registered agent for such 42 corporation, may be signed and delivered to the department of state by 43 such agent. The certificate of change shall set forth the statements 44 required under subparagraphs (1), (2) and (3) of paragraph (a) of this 45 section; that a notice of the proposed change was mailed to the corpo- 46 ration by the party signing the certificate not less than thirty days 47 prior to the date of delivery to the department and that such corpo- 48 ration has not objected thereto; and that the party signing the certif- 49 icate is the agent of such corporation to whose address [the secretary50of state] a person is required to mail copies of any process against the 51 corporation served upon [him] the secretary of state or the registered 52 agent, if such be the case. A certificate signed and delivered under 53 this paragraph shall not be deemed to effect a change of location of the 54 office of the corporation in whose behalf such certificate is filed.S. 2008--A 78 A. 3008--A 1 § 48. Clause (E) of subparagraph 2 of paragraph (d) of section 906 of 2 the not-for-profit corporation law, as amended by chapter 1058 of the 3 laws of 1971, is amended to read as follows: 4 (E) A designation of the secretary of state as its agent upon whom 5 process against it may be served in the manner set forth in paragraph 6 (b) of section 306 (Service of process), in any action or special 7 proceeding described in [subparagraph] clause (D) of this subparagraph 8 and a post office address, within or without this state, to which [the9secretary of state] a person shall mail a copy of the process in such 10 action or special proceeding served upon the secretary of state. 11 § 49. Clause (F) of subparagraph 2 of paragraph (d) of section 908 of 12 the not-for-profit corporation law is amended to read as follows: 13 (F) A designation of the secretary of state as his agent upon whom 14 process against it may be served in the manner set forth in paragraph 15 (b) of section 306 (Service of process), in any action or special 16 proceeding described in [subparagraph] clause (D) of this subparagraph 17 and a post office address, within or without the state, to which [the18secretary of state] a person shall mail a copy of the process in such 19 action or special proceeding served upon by the secretary of state. 20 § 50. Subparagraph 6 of paragraph (a) of section 1304 of the not-for- 21 profit corporation law, as renumbered by chapter 590 of the laws of 22 1982, is amended to read as follows: 23 (6) A designation of the secretary of state as its agent upon whom 24 process against it may be served and the post office address, within or 25 without this state, to which [the secretary of state] a person shall 26 mail a copy of any process against it served upon [him] the secretary of 27 state. 28 § 51. Subparagraph 7 of paragraph (a) of section 1308 of the not-for- 29 profit corporation law, as renumbered by chapter 186 of the laws of 30 1983, is amended to read as follows: 31 (7) To specify or change the post office address to which [the secre-32tary of state] a person shall mail a copy of any process against it 33 served upon [him] the secretary of state. 34 § 52. Subparagraph 2 of paragraph (a) and paragraph (c) of section 35 1310 of the not-for-profit corporation law, paragraph (c) as amended by 36 chapter 172 of the laws of 1999, are amended to read as follows: 37 (2) To specify or change the post office address to which [the secre-38tary of state] a person shall mail a copy of any process against it 39 served upon [him] the secretary of state. 40 (c) A certificate of change of application for authority which changes 41 only the post office address to which [the secretary of state] a person 42 shall mail a copy of any process against an authorized foreign corpo- 43 ration served upon [him or] the secretary of state and/or which changes 44 the address of its registered agent, provided such address is the 45 address of a person, partnership, limited liability company or other 46 corporation whose address, as agent, is the address to be changed or who 47 has been designated as registered agent for such authorized foreign 48 corporation, may be signed and delivered to the department of state by 49 such agent. The certificate of change of application for authority shall 50 set forth the statements required under subparagraphs (1), (2), (3) and 51 (4) of paragraph (b) of this section; that a notice of the proposed 52 change was mailed by the party signing the certificate to the authorized 53 foreign corporation not less than thirty days prior to the date of 54 delivery to the department and that such corporation has not objected 55 thereto; and that the party signing the certificate is the agent of such 56 foreign corporation to whose address [the secretary of state] a personS. 2008--A 79 A. 3008--A 1 is required to mail copies of process served on the secretary of state 2 or the registered agent, if such be the case. A certificate signed and 3 delivered under this paragraph shall not be deemed to effect a change of 4 location of the office of the corporation in whose behalf such certif- 5 icate is filed. 6 § 53. Subparagraph 6 of paragraph (a) and subparagraph 4 of paragraph 7 (d) of section 1311 of the not-for-profit corporation law are amended to 8 read as follows: 9 (6) A post office address, within or without this state, to which [the10secretary of state] a person shall mail a copy of any process against it 11 served upon [him] the secretary of state. 12 (4) The changed post office address, within or without this state, to 13 which [the secretary of state] a person shall mail a copy of any process 14 against it served upon [him] the secretary of state. 15 § 54. Section 1312 of the not-for-profit corporation law, as amended 16 by chapter 375 of the laws of 1998, is amended to read as follows: 17 § 1312. Termination of existence. 18 When an authorized foreign corporation is dissolved or its authority 19 or existence is otherwise terminated or cancelled in the jurisdiction of 20 its incorporation or when such foreign corporation is merged into or 21 consolidated with another foreign corporation, a certificate of the 22 secretary of state, or official performing the equivalent function as to 23 corporate records, of the jurisdiction of incorporation of such foreign 24 corporation attesting to the occurrence of any such event or a certified 25 copy of an order or decree of a court of such jurisdiction directing the 26 dissolution of such foreign corporation, the termination of its exist- 27 ence or the cancellation of its authority shall be delivered to the 28 department of state. The filing of the certificate, order or decree 29 shall have the same effect as the filing of a certificate of surrender 30 of authority under section 1311 (Surrender of authority). The secretary 31 of state shall continue as agent of the foreign corporation upon whom 32 process against it may be served in the manner set forth in paragraph 33 (b) of section 306 (Service of process), in any action or special 34 proceeding based upon any liability or obligation incurred by the 35 foreign corporation within this state prior to the filing of such 36 certificate, order or decree and [he] the person serving such process 37 shall promptly cause a copy of any such process to be mailed by [regis-38tered] certified mail, return receipt requested, to such foreign corpo- 39 ration at the post office address on file in his office specified for 40 such purpose. The post office address may be changed by signing and 41 delivering to the department of state a certificate of change setting 42 forth the statements required under section 1310 (Certificate of change, 43 contents) to effect a change in the post office address under subpara- 44 graph [(a) (4)] (7) of paragraph (a) of section 1308 (Amendments or 45 changes). 46 § 55. Subdivision (c) of section 121-104 of the partnership law, as 47 added by chapter 950 of the laws of 1990, is amended to read as follows: 48 (c) Any designated post office address maintained by the secretary of 49 state as agent of a domestic limited partnership or foreign limited 50 partnership for the purpose of mailing process shall be the post office 51 address, within or without the state, to which a person shall mail proc- 52 ess against such limited partnership as required by this article. Any 53 designated post office address to which the secretary of state or a 54 person shall mail a copy of process served upon [him] the secretary of 55 state as agent of a domestic limited partnership or foreign limitedS. 2008--A 80 A. 3008--A 1 partnership shall continue until the filing of a certificate under this 2 article directing the mailing to a different post office address. 3 § 56. Paragraphs 1, 2 and 3 of subdivision (a) of section 121-104-A of 4 the partnership law, as added by chapter 448 of the laws of 1998, are 5 amended to read as follows: 6 (1) the name of the limited partnership and the date that its [arti-7cles of organization] certificate of limited partnership or application 8 for authority was filed by the department of state. 9 (2) that the address of the party has been designated by the limited 10 partnership as the post office address to which [the secretary of state] 11 a person shall mail a copy of any process served on the secretary of 12 state as agent for such limited partnership, and that such party wishes 13 to resign. 14 (3) that sixty days prior to the filing of the certificate of resigna- 15 tion for receipt of process with the department of state the party has 16 sent a copy of the certificate of resignation for receipt of process by 17 registered or certified mail to the address of the registered agent of 18 the [designated] designating limited partnership, if other than the 19 party filing the certificate of resignation[,] for receipt of process, 20 or if the [resigning] designating limited partnership has no registered 21 agent, then to the last address of the [designated] designating limited 22 partnership, known to the party, specifying the address to which the 23 copy was sent. If there is no registered agent and no known address of 24 the designating limited partnership the party shall attach an affidavit 25 to the certificate stating that a diligent but unsuccessful search was 26 made by the party to locate the limited partnership, specifying what 27 efforts were made. 28 § 57. Subdivision (a) of section 121-105 of the partnership law, as 29 added by chapter 950 of the laws of 1990, is amended to read as follows: 30 (a) In addition to the designation of the secretary of state, each 31 limited partnership or authorized foreign limited partnership may desig- 32 nate a registered agent upon whom process against the limited partner- 33 ship may be served. The agent must be (i) a natural person who is a 34 resident of this state or has a business address in this state, [or] 35 (ii) a domestic corporation or a foreign corporation authorized to do 36 business in this state, or a domestic limited liability company or a 37 foreign limited liability company authorized to do business in this 38 state. 39 § 58. Subdivisions (a) and (c) of section 121-109 of the partnership 40 law, as added by chapter 950 of the laws of 1990 and as relettered by 41 chapter 341 of the laws of 1999, are amended to read as follows: 42 (a) Service of process on the secretary of state as agent of a domes- 43 tic or authorized foreign limited partnership, or other business entity 44 that has designated the secretary of state as agent for service of proc- 45 ess pursuant to this chapter, shall be made [as follows:46(1) By] by mailing the process and notice of service of process pursu- 47 ant to this section by certified mail, return receipt requested, to such 48 domestic or authorized foreign limited partnership or other business 49 entity, at the post office address, on file in the department of state, 50 specified for that purpose. On the same day as the process is mailed, a 51 duplicate copy of such process and proof of mailing shall be personally 52 [delivering] delivered to and [leaving] left with [him or his] the 53 secretary of state or a deputy, or with any person authorized by the 54 secretary of state to receive such service, at the office of the depart- 55 ment of state in the city of Albany, [duplicate copies of such process] 56 together with the statutory fee, which fee shall be a taxable disburse-S. 2008--A 81 A. 3008--A 1 ment. Proof of mailing shall be by affidavit of compliance with this 2 section. Service of process on such limited partnership or other busi- 3 ness entity shall be complete when the secretary of state is so served. 4 [(2) The service on the limited partnership is complete when the5secretary of state is so served.6(3) The secretary of state shall promptly send one of such copies by7certified mail, return receipt requested, addressed to the limited part-8nership at the post office address, on file in the department of state,9specified for that purpose.] 10 (c) The [secretary of state] department of state shall keep a record 11 of all process served upon [him] it under this section and shall record 12 therein the date of such service [and his action with reference there-13to]. It shall, upon request made within ten years of such service, issue 14 a certificate under its seal certifying as to the receipt of the process 15 by an authorized person, the date and place of such service and the 16 receipt of the statutory fee. Process served upon the secretary of state 17 under this chapter shall be destroyed by him after a period of ten years 18 from such service. 19 § 59. Paragraph 3 of subdivision (a) and subparagraph 4 of paragraph 20 (i) of subdivision (c) of section 121-201 of the partnership law, para- 21 graph 3 of subdivision (a) as amended by chapter 264 of the laws of 22 1991, and subparagraph 4 of paragraph (i) of subdivision (c) as amended 23 by chapter 44 of the laws of 2006, are amended to read as follows: 24 (3) a designation of the secretary of state as agent of the limited 25 partnership upon whom process against it may be served and the post 26 office address, within or without this state, to which [the secretary of27state] a person shall mail a copy of any process against it served upon 28 [him] the secretary of state; 29 (4) a statement that the secretary of state has been designated as 30 agent of the limited partnership upon whom process against it may be 31 served and the post office address, within or without this state, to 32 which [the secretary of state] a person shall mail a copy of any process 33 against it served upon [him or her] the secretary of state; 34 § 60. Paragraph 4 of subdivision (b) of section 121-202 of the part- 35 nership law, as amended by chapter 576 of the laws of 1994, is amended 36 to read as follows: 37 (4) a change in the name of the limited partnership, or a change in 38 the post office address to which [the secretary of state] a person shall 39 mail a copy of any process against the limited partnership served on 40 [him] the secretary of state, or a change in the name or address of the 41 registered agent, if such change is made other than pursuant to section 42 121-104 or 121-105 of this article. 43 § 61. Section 121-202-A of the partnership law, as added by chapter 44 448 of the laws of 1998, paragraph 2 of subdivision (a) as amended by 45 chapter 172 of the laws of 1999, is amended to read as follows: 46 § 121-202-A. Certificate of change. (a) A certificate of limited part- 47 nership may be changed by filing with the department of state a certif- 48 icate of change entitled "Certificate of Change of ..... (name of limit- 49 ed partnership) under Section 121-202-A of the Revised Limited 50 Partnership Act" and shall be signed and delivered to the department of 51 state. A certificate of change may (i) specify or change the location of 52 the limited partnership's office; (ii) specify or change the post office 53 address to which [the secretary of state] a person shall mail a copy of 54 process against the limited partnership served upon [him] the secretary 55 of state; and (iii) make, revoke or change the designation of a regis-S. 2008--A 82 A. 3008--A 1 tered agent, or to specify or change the address of its registered 2 agent. It shall set forth: 3 (1) the name of the limited partnership, and if it has been changed, 4 the name under which it was formed; 5 (2) the date its certificate of limited partnership was filed by the 6 department of state; and 7 (3) each change effected thereby. 8 (b) A certificate of change which changes only the post office address 9 to which [the secretary of state] a person shall mail a copy of any 10 process against a limited partnership served upon [him or] the secretary 11 of state and/or the address of the registered agent, provided such 12 address being changed is the address of a person, partnership, limited 13 liability corporation or corporation whose address, as agent, is the 14 address to be changed or who has been designated as registered agent for 15 such limited partnership shall be signed and delivered to the department 16 of state by such agent. The certificate of change shall set forth the 17 statements required under subdivision (a) of this section; that a notice 18 of the proposed change was mailed to the domestic limited partnership by 19 the party signing the certificate not less than thirty days prior to the 20 date of delivery to the department of state and that such domestic 21 limited partnership has not objected thereto; and that the party signing 22 the certificate is the agent of such limited partnership to whose 23 address [the secretary of state] a person is required to mail copies of 24 process served on the secretary of state or the registered agent, if 25 such be the case. A certificate signed and delivered under this subdivi- 26 sion shall not be deemed to effect a change of location of the office of 27 the limited partnership in whose behalf such certificate is filed. 28 § 62. Paragraph 4 of subdivision (a) and subparagraph 5 of paragraph 29 (i) of subdivision (d) of section 121-902 of the partnership law, para- 30 graph 4 of subdivision (a) as amended by chapter 172 of the laws of 1999 31 and subparagraph 5 of paragraph (i) of subdivision (d) as amended by 32 chapter 44 of the laws of 2006, are amended to read as follows: 33 (4) a designation of the secretary of state as its agent upon whom 34 process against it may be served and the post office address, within or 35 without this state, to which [the secretary of state] a person shall 36 mail a copy of any process against it served upon [him] the secretary of 37 state; 38 (5) a statement that the secretary of state has been designated as its 39 agent upon whom process against it may be served and the post office 40 address, within or without this state, to which [the secretary of state] 41 a person shall mail a copy of any process against it served upon [him or42her] the secretary of state; 43 § 63. Section 121-903-A of the partnership law, as added by chapter 44 448 of the laws of 1998, is amended to read as follows: 45 § 121-903-A. Certificate of change. (a) A foreign limited partnership 46 may change its application for authority by filing with the department 47 of state a certificate of change entitled "Certificate of Change 48 of ........ (name of limited partnership) under Section 121-903-A of the 49 Revised Limited Partnership Act" and shall be signed and delivered to 50 the department of state. A certificate of change may (i) change the 51 location of the limited partnership's office; (ii) change the post 52 office address to which [the secretary of state] a person shall mail a 53 copy of process against the limited partnership served upon [him] the 54 secretary of state; and (iii) make, revoke or change the designation of 55 a registered agent, or to specify or change the address of its regis- 56 tered agent. It shall set forth:S. 2008--A 83 A. 3008--A 1 (1) the name of the foreign limited partnership and, if applicable, 2 the fictitious name the foreign limited partnership has agreed to use in 3 this state pursuant to section 121-902 of this article; 4 (2) the date its application for authority was filed by the department 5 of state; and 6 (3) each change effected thereby. 7 (b) A certificate of change which changes only the post office address 8 to which [the secretary of state] a person shall mail a copy of any 9 process against a foreign limited partnership served upon [him or] the 10 secretary of state and/or the address of the registered agent, provided 11 such address being changed is the address of a person, partnership, 12 limited liability company or corporation whose address, as agent, is the 13 address to be changed or who has been designated as registered agent for 14 such foreign limited partnership shall be signed and delivered to the 15 department of state by such agent. The certificate of change shall set 16 forth the statements required under subdivision (a) of this section; 17 that a notice of the proposed change was mailed to the foreign limited 18 partnership by the party signing the certificate not less than thirty 19 days prior to the date of delivery to the department of state and that 20 such foreign limited partnership has not objected thereto; and that the 21 party signing the certificate is the agent of such foreign limited part- 22 nership to whose address [the secretary of state] a person is required 23 to mail copies of process served on the secretary of state or the regis- 24 tered agent, if such be the case. A certificate signed and delivered 25 under this subdivision shall not be deemed to effect a change of 26 location of the office of the limited partnership in whose behalf such 27 certificate is filed. 28 § 64. Paragraph 6 of subdivision (b) of section 121-905 of the part- 29 nership law, as added by chapter 950 of the laws of 1990, is amended to 30 read as follows: 31 (6) a post office address, within or without this state, to which [the32secretary of state] a person shall mail a copy of any process against it 33 served upon [him] the secretary of state. 34 § 65. Paragraph 7 of subdivision (a) of section 121-1103 of the part- 35 nership law, as added by chapter 950 of the laws of 1990, is amended to 36 read as follows: 37 (7) A designation of the secretary of state as its agent upon whom 38 process against it may be served in the manner set forth in section 39 121-109 of this article in any action or special proceeding, and a post 40 office address, within or without this state, to which [the secretary of41state] a person shall mail a copy of any process served upon [him] the 42 secretary of state. Such post office address shall supersede any prior 43 address designated as the address to which process shall be mailed. 44 § 66. Subparagraphs 2 and 4 of paragraph (I) and clause 4 of subpara- 45 graph (A) of paragraph (II) of subdivision (a) of section 121-1500 of 46 the partnership law, subparagraph 2 of paragraph (I) as added by chapter 47 576 of the laws of 1994, subparagraph 4 of paragraph (I) as amended by 48 chapter 643 of the laws of 1995 and such paragraph as redesignated by 49 chapter 767 of the laws of 2005 and clause 4 of subparagraph (A) of 50 paragraph (II) as amended by chapter 44 of the laws of 2006, are amended 51 to read as follows: 52 (2) the address, within this state, of the principal office of the 53 partnership without limited partners; 54 (4) a designation of the secretary of state as agent of the partner- 55 ship without limited partners upon whom process against it may be served 56 and the post office address, within or without this state, to which theS. 2008--A 84 A. 3008--A 1 [secretary of state] a person shall mail a copy of any process against 2 it or served [upon it] on the secretary of state; 3 (4) a statement that the secretary of state has been designated as 4 agent of the registered limited liability partnership upon whom process 5 against it may be served and the post office address, within or without 6 this state, to which [the secretary of state] a person shall mail a copy 7 of any process against it served upon [him or her] the secretary of 8 state; 9 § 67. Paragraphs (ii) and (iii) of subdivision (g) of section 121-1500 10 of the partnership law, as amended by section 8 of part S of chapter 59 11 of the laws of 2015, are amended to read as follows: 12 (ii) the address, within this state, of the principal office of the 13 registered limited liability partnership, (iii) the post office address, 14 within or without this state, to which [the secretary of state] a person 15 shall mail a copy of any process accepted against it served upon [him or16her] the secretary of state, which address shall supersede any previous 17 address on file with the department of state for this purpose, and 18 § 68. Subdivision (j-1) of section 121-1500 of the partnership law, as 19 added by chapter 448 of the laws of 1998, is amended to read as follows: 20 (j-1) A certificate of change which changes only the post office 21 address to which [the secretary of state] a person shall mail a copy of 22 any process against a registered limited liability partnership served 23 upon [him] the secretary of state and/or the address of the registered 24 agent, provided such address being changed is the address of a person, 25 partnership, limited liability company or corporation whose address, as 26 agent, is the address to be changed or who has been designated as regis- 27 tered agent for such registered limited liability partnership shall be 28 signed and delivered to the department of state by such agent. The 29 certificate of change shall set forth: (i) the name of the registered 30 limited liability partnership and, if it has been changed, the name 31 under which it was originally filed with the department of state; (ii) 32 the date of filing of its initial registration or notice statement; 33 (iii) each change effected thereby; (iv) that a notice of the proposed 34 change was mailed to the limited liability partnership by the party 35 signing the certificate not less than thirty days prior to the date of 36 delivery to the department of state and that such limited liability 37 partnership has not objected thereto; and (v) that the party signing the 38 certificate is the agent of such limited liability partnership to whose 39 address [the secretary of state] a person is required to mail copies of 40 process served on the secretary of state or the registered agent, if 41 such be the case. A certificate signed and delivered under this subdivi- 42 sion shall not be deemed to effect a change of location of the office of 43 the limited liability partnership in whose behalf such certificate is 44 filed. The certificate of change shall be accompanied by a fee of five 45 dollars. 46 § 69. Subdivision (a) of section 121-1502 of the partnership law, as 47 amended by chapter 643 of the laws of 1995, paragraph (v) as amended by 48 chapter 470 of the laws of 1997, is amended to read as follows: 49 (a) In order for a foreign limited liability partnership to carry on 50 or conduct or transact business or activities as a New York registered 51 foreign limited liability partnership in this state, such foreign limit- 52 ed liability partnership shall file with the department of state a 53 notice which shall set forth: (i) the name under which the foreign 54 limited liability partnership intends to carry on or conduct or transact 55 business or activities in this state; (ii) the date on which and the 56 jurisdiction in which it registered as a limited liability partnership;S. 2008--A 85 A. 3008--A 1 (iii) the address, within this state, of the principal office of the 2 foreign limited liability partnership; (iv) the profession or 3 professions to be practiced by such foreign limited liability partner- 4 ship and a statement that it is a foreign limited liability partnership 5 eligible to file a notice under this chapter; (v) a designation of the 6 secretary of state as agent of the foreign limited liability partnership 7 upon whom process against it may be served and the post office address 8 within or without this state, to which [the secretary of state] a person 9 shall mail a copy of any process against it [or] served upon [it] the 10 secretary of state; (vi) if the foreign limited liability partnership is 11 to have a registered agent, its name and address in this state and a 12 statement that the registered agent is to be the agent of the foreign 13 limited liability partnership upon whom process against it may be 14 served; (vii) a statement that its registration as a limited liability 15 partnership is effective in the jurisdiction in which it registered as a 16 limited liability partnership at the time of the filing of such notice; 17 (viii) a statement that the foreign limited liability partnership is 18 filing a notice in order to obtain status as a New York registered 19 foreign limited liability partnership; (ix) if the registration of the 20 foreign limited liability partnership is to be effective on a date later 21 than the time of filing, the date, not to exceed sixty days from the 22 date of filing, of such proposed effectiveness; and (x) any other 23 matters the foreign limited liability partnership determines to include 24 in the notice. Such notice shall be accompanied by either (1) a copy of 25 the last registration or renewal registration (or similar filing), if 26 any, filed by the foreign limited liability partnership with the juris- 27 diction where it registered as a limited liability partnership or (2) a 28 certificate, issued by the jurisdiction where it registered as a limited 29 liability partnership, substantially to the effect that such foreign 30 limited liability partnership has filed a registration as a limited 31 liability partnership which is effective on the date of the certificate 32 (if such registration, renewal registration or certificate is in a 33 foreign language, a translation thereof under oath of the translator 34 shall be attached thereto). Such notice shall also be accompanied by a 35 fee of two hundred fifty dollars. 36 § 70. Subparagraphs (ii) and (iii) of paragraph (I) of subdivision (f) 37 of section 121-1502 of the partnership law, as amended by section 9 of 38 part S of chapter 59 of the laws of 2015, are amended to read as 39 follows: 40 (ii) the address, within this state, of the principal office of the 41 New York registered foreign limited liability partnership, (iii) the 42 post office address, within or without this state, to which [the secre-43tary of state] a person shall mail a copy of any process accepted 44 against it served upon [him or her] the secretary of state, which 45 address shall supersede any previous address on file with the department 46 of state for this purpose, and 47 § 71. Clause 5 of subparagraph (A) of paragraph (II) of subdivision 48 (f) of section 121-1502 of the partnership law, as amended by chapter 44 49 of the laws of 2006, is amended to read as follows: 50 (5) a statement that the secretary of state has been designated as 51 agent of the foreign limited liability partnership upon whom process 52 against it may be served and the post office address, within or without 53 this state, to which [the secretary of state] a person shall mail a copy 54 of any process against it served upon [him or her] the secretary of 55 state;S. 2008--A 86 A. 3008--A 1 § 72. Subdivision (i-1) of section 121-1502 of the partnership law, as 2 added by chapter 448 of the laws of 1998, is amended to read as follows: 3 (i-1) A certificate of change which changes only the post office 4 address to which [the secretary of state] a person shall mail a copy of 5 any process against a New York registered foreign limited liability 6 partnership served upon [him] the secretary of state and/or the address 7 of the registered agent, provided such address being changed is the 8 address of a person, partnership, limited liability company or corpo- 9 ration whose address, as agent, is the address to be changed or who has 10 been designated as registered agent of such registered foreign limited 11 liability partnership shall be signed and delivered to the department of 12 state by such agent. The certificate of change shall set forth: (i) the 13 name of the New York registered foreign limited liability partnership; 14 (ii) the date of filing of its initial registration or notice statement; 15 (iii) each change effected thereby; (iv) that a notice of the proposed 16 change was mailed to the limited liability partnership by the party 17 signing the certificate not less than thirty days prior to the date of 18 delivery to the department of state and that such limited liability 19 partnership has not objected thereto; and (v) that the party signing the 20 certificate is the agent of such limited liability partnership to whose 21 address [the secretary of state] a person is required to mail copies of 22 process served on the secretary of state or the registered agent, if 23 such be the case. A certificate signed and delivered under this subdivi- 24 sion shall not be deemed to effect a change of location of the office of 25 the limited liability partnership in whose behalf such certificate is 26 filed. The certificate of change shall be accompanied by a fee of five 27 dollars. 28 § 73. Subdivision (a) of section 121-1505 of the partnership law, as 29 added by chapter 470 of the laws of 1997, is amended and two new subdi- 30 visions (d) and (e) are added to read as follows: 31 (a) Service of process on the secretary of state as agent of a regis- 32 tered limited liability partnership or New York registered foreign 33 limited liability partnership under this article shall be made by mail- 34 ing the process and notice of service thereof by certified mail, return 35 receipt requested, to such registered limited liability partnership or 36 New York registered foreign limited liability partnership, at the post 37 office address on file in the department of state specified for such 38 purpose. On the same date that such process is mailed, a duplicate copy 39 of such process and proof of mailing together with the statutory fee, 40 which fee shall be a taxable disbursement shall be personally [deliver-41ing] delivered to and [leaving] left with the secretary of state or a 42 deputy, or with any person authorized by the secretary of state to 43 receive such service, at the office of the department of state in the 44 city of Albany, [duplicate copies of such process] together with the 45 statutory fee, which fee shall be a taxable disbursement. Proof of mail- 46 ing shall be by affidavit of compliance with this section. Service of 47 process on such registered limited liability partnership or New York 48 registered foreign limited liability partnership shall be complete when 49 the secretary of state is so served. [The secretary of state shall50promptly send one of such copies by certified mail, return receipt51requested, to such registered limited liability partnership, at the post52office address on file in the department of state specified for such53purpose.] 54 (d) The department of state shall keep a record of each process served 55 upon the secretary of state under this chapter, including the date of 56 such service. It shall, upon request made within ten years of suchS. 2008--A 87 A. 3008--A 1 service, issue a certificate under its seal certifying as to the receipt 2 of the process by an authorized person, the date and place of such 3 service and the receipt of the statutory fee. Process served upon the 4 secretary of state under this chapter shall be destroyed by the depart- 5 ment of state after a period of ten years from such service. 6 (e) Any designated post office address maintained by the secretary of 7 state as agent of a registered limited liability partnership or New York 8 registered foreign limited liability partnership for the purpose of 9 mailing process shall be the post office address, within or without the 10 state, to which a person shall mail process against such limited liabil- 11 ity company as required by this article. Such address shall continue 12 until the filing of a certificate under this chapter directing the mail- 13 ing to a different post office address. 14 § 74. Subdivision (b) of section 121-1506 of the partnership law, as 15 added by chapter 448 of the laws of 1998, paragraph 4 as amended by 16 chapter 172 of the laws of 1999, is amended to read as follows: 17 (b) The party (or the party's legal representative) whose post office 18 address has been supplied by a limited liability partnership as its 19 address for process may resign. A certificate entitled "Certificate of 20 Resignation for Receipt of Process under Section 121-1506(b) of the 21 Partnership Law" shall be signed by such party and delivered to the 22 department of state. It shall set forth: 23 (1) The name of the limited liability partnership and the date that 24 its certificate of registration was filed by the department of state. 25 (2) That the address of the party has been designated by the limited 26 liability partnership as the post office address to which [the secretary27of state] a person shall mail a copy of any process served on the secre- 28 tary of state as agent for such limited liability partnership and that 29 such party wishes to resign. 30 (3) That sixty days prior to the filing of the certificate of resigna- 31 tion with the department of state the party has sent a copy of the 32 certificate of resignation for receipt of process by registered or 33 certified mail to the address of the registered agent of the [desig-34nated] designating limited liability partnership, if other than the 35 party filing the certificate of resignation, for receipt of process, or 36 if the [resigning] designating limited liability partnership has no 37 registered agent, then to the last address of the [designated] designat- 38 ing limited liability partnership, known to the party, specifying the 39 address to which the copy was sent. If there is no registered agent and 40 no known address of the designating limited liability partnership the 41 party shall attach an affidavit to the certificate stating that a dili- 42 gent but unsuccessful search was made by the party to locate the limited 43 liability partnership, specifying what efforts were made. 44 (4) That the [designated] designating limited liability partnership is 45 required to deliver to the department of state a certificate of amend- 46 ment providing for the designation by the limited liability partnership 47 of a new address and that upon its failure to file such certificate, its 48 authority to do business in this state shall be suspended. 49 § 75. Paragraph 16 of subdivision 1 of section 103 of the private 50 housing finance law, as added by chapter 22 of the laws of 1970, is 51 amended to read as follows: 52 (16) A designation of the secretary of state as agent of the corpo- 53 ration upon whom process against it may be served and the post office 54 address, within or without this state, to which [the secretary of state] 55 a person shall mail a copy of any process against it served upon [him] 56 the secretary of state.S. 2008--A 88 A. 3008--A 1 § 76. Subdivision 7 of section 339-n of the real property law is 2 REPEALED and subdivisions 8 and 9 are renumbered subdivisions 7 and 8. 3 § 76-a. Subdivision 15 of section 20.03 of the arts and cultural 4 affairs law, as added by chapter 656 of the laws of 1991, is amended to 5 read as follows: 6 15. "Non-institutional portion" shall mean the part or portion of a 7 combined-use facility other than the institutional portion. If the non- 8 institutional portion, or any part thereof, consists of a condominium, 9 the consent of the trust which has developed or approved the developer 10 of such condominium shall be required prior to any amendment of the 11 declaration of such condominium pursuant to subdivision [nine] eight of 12 section three hundred thirty-nine-n of the real property law and prior 13 to any amendment of the by-laws of such condominium pursuant to para- 14 graph (j) of subdivision one of section three hundred thirty-nine-v of 15 the real property law, and whether or not such trust is a unit owner of 16 such condominium, it may exercise the rights of the board of managers 17 and an aggrieved unit owner under section three hundred thirty-nine-j of 18 the real property law in the case of a failure of any unit owner of such 19 condominium to comply with the by-laws of such condominium and with the 20 rules, regulations, and decisions adopted pursuant thereto. 21 § 77. Subdivision 2 of section 339-s of the real property law, as 22 added by chapter 346 of the laws of 1997, is amended to read as follows: 23 2. [Each such declaration, and any amendment or amendments thereof24shall be filed with the department of state] (a) The board of managers 25 for each condominium subject to this article shall file with the secre- 26 tary of state a certificate, in writing, signed, designating the secre- 27 tary of state as agent of the board of managers upon whom process 28 against it may be served and the post office address to which a person 29 shall mail a copy of such process. The certificate shall be accompanied 30 by a fee of sixty dollars. 31 (b) Any board of managers may change the address to which a person 32 shall mail a copy of process served upon the secretary of state, by 33 filing a signed certificate of amendment with the department of state. 34 Such certificate shall be accompanied by a fee of sixty dollars. 35 (c) Service of process on the secretary of state as agent of a board 36 of managers shall be made by mailing the process and notice of service 37 of process pursuant to this section by certified mail, return receipt 38 requested, to such board of managers, at the post office address, on 39 file in the department of state, specified for this purpose. On the same 40 day that such process is mailed, a duplicate copy of such process and 41 proof of mailing shall be personally delivered to and left with the 42 secretary of state or a deputy, or with any person authorized by the 43 secretary of state to receive such service, at the office of the depart- 44 ment of state in the city of Albany, a duplicate copy of such process 45 with proof of mailing together with the statutory fee, which shall be a 46 taxable disbursement. Proof of mailing shall be by affidavit of compli- 47 ance with this section. Service of process on a board of managers shall 48 be complete when the secretary of state is so served. 49 (d) As used in this article, "process" shall mean judicial process and 50 all orders, demands, notices or other papers required or permitted by 51 law to be personally served on a board of managers, for the purpose of 52 acquiring jurisdiction of such board of managers in any action or 53 proceeding, civil or criminal, whether judicial, administrative, arbi- 54 trative or otherwise, in this state or in the federal courts sitting in 55 or for this state.S. 2008--A 89 A. 3008--A 1 (e) Nothing in this section shall affect the right to serve process in 2 any other manner permitted by law. 3 (f) The department of state shall keep a record of each process served 4 under this section, including the date of service. It shall, upon 5 request, made within ten years of such service, issue a certificate 6 under its seal certifying as to the receipt of process by an authorized 7 person, the date and place of such service and the receipt of the statu- 8 tory fee. Process served on the secretary of state under this section 9 shall be destroyed by the department of state after a period of ten 10 years from such service. 11 (g) Any designated post office address maintained by the secretary of 12 state as agent of the board of managers for the purpose of mailing proc- 13 ess shall be the post office address, within or without the state, to 14 which a person shall mail process against such board as required by this 15 article. Such address shall continue until the filing of a certificate 16 under this chapter directing the mailing to a different post office 17 address. 18 § 78. Subdivisions 3 and 4 of section 442-g of the real property law, 19 as amended by chapter 482 of the laws of 1963, are amended to read as 20 follows: 21 3. Service of such process upon the secretary of state shall be made 22 by personally delivering to and leaving with [him or his] the secretary 23 of state or a deputy, or with any person authorized by the secretary of 24 state to receive such service, at the office of the department of state 25 in the city of Albany, [duplicate copies] a copy of such process and 26 proof of mailing together with a fee of five dollars if the action is 27 solely for the recovery of a sum of money not in excess of two hundred 28 dollars and the process is so endorsed, and a fee of ten dollars in any 29 other action or proceeding, which fee shall be a taxable disbursement. 30 If such process is served upon behalf of a county, city, town or 31 village, or other political subdivision of the state, the fee to be paid 32 to the secretary of state shall be five dollars, irrespective of the 33 amount involved or the nature of the action on account of which such 34 service of process is made. [If the cost of registered mail for trans-35mitting a copy of the process shall exceed two dollars, an additional36fee equal to such excess shall be paid at the time of the service of37such process.] Proof of mailing shall be by affidavit of compliance with 38 this section. Proof of service shall be by affidavit of compliance with 39 this subdivision filed by or on behalf of the plaintiff together with 40 the process, within ten days after such service, with the clerk of the 41 court in which the action or special proceeding is pending. Service 42 made as provided in this section shall be complete ten days after such 43 papers are filed with the clerk of the court and shall have the same 44 force and validity as if served on him personally within the state and 45 within the territorial jurisdiction of the court from which the process 46 issues. 47 4. The [secretary of state] person serving such process shall [prompt-48ly] send [one of] such [copies] process by [registered] certified mail, 49 return receipt requested, to the nonresident broker or nonresident 50 salesman at the post office address of his main office as set forth in 51 the last application filed by him. 52 § 79. Subdivision 2 of section 203 of the tax law, as amended by chap- 53 ter 100 of the laws of 1964, is amended to read as follows: 54 2. Every foreign corporation (other than a moneyed corporation) 55 subject to the provisions of this article, except a corporation having a 56 certificate of authority [under section two hundred twelve of the gener-S. 2008--A 90 A. 3008--A 1al corporation law] or having authority to do business by virtue of 2 section thirteen hundred five of the business corporation law, shall 3 file in the department of state a certificate of designation in its 4 corporate name, signed and acknowledged by its president or a vice-pre- 5 sident or its secretary or treasurer, under its corporate seal, desig- 6 nating the secretary of state as its agent upon whom process in any 7 action provided for by this article may be served within this state, and 8 setting forth an address to which [the secretary of state] a person 9 shall mail a copy of any such process against the corporation which may 10 be served upon [him] the secretary of state. In case any such corpo- 11 ration shall have failed to file such certificate of designation, it 12 shall be deemed to have designated the secretary of state as its agent 13 upon whom such process against it may be served; and until a certificate 14 of designation shall have been filed the corporation shall be deemed to 15 have directed [the secretary of state] a person serving process to mail 16 copies of process served upon [him] the secretary of state to the corpo- 17 ration at its last known office address within or without the state. 18 When a certificate of designation has been filed by such corporation 19 [the secretary of state] a person serving process shall mail copies of 20 process thereafter served upon [him] the secretary of state to the 21 address set forth in such certificate. Any such corporation, from time 22 to time, may change the address to which [the secretary of state] a 23 person is directed to mail copies of process, by filing a certificate to 24 that effect executed, signed and acknowledged in like manner as a 25 certificate of designation as herein provided. Service of process upon 26 any such corporation or upon any corporation having a certificate of 27 authority [under section two hundred twelve of the general corporation28law] or having authority to do business by virtue of section thirteen 29 hundred five of the business corporation law, in any action commenced at 30 any time pursuant to the provisions of this article, may be made by 31 either (1) personally delivering to and leaving with the secretary of 32 state, a deputy secretary of state or with any person authorized by the 33 secretary of state to receive such service [duplicate copies] a copy 34 thereof at the office of the department of state in the city of Albany, 35 in which event [the secretary of state] a person serving such process 36 shall forthwith send by [registered] certified mail, return receipt 37 requested, [one of such copies] a duplicate copy to the corporation at 38 the address designated by it or at its last known office address within 39 or without the state, or (2) personally delivering to and leaving with 40 the secretary of state, a deputy secretary of state or with any person 41 authorized by the secretary of state to receive such service, a copy 42 thereof at the office of the department of state in the city of Albany 43 and by delivering a copy thereof to, and leaving such copy with, the 44 president, vice-president, secretary, assistant secretary, treasurer, 45 assistant treasurer, or cashier of such corporation, or the officer 46 performing corresponding functions under another name, or a director or 47 managing agent of such corporation, personally without the state. Proof 48 of such personal service without the state shall be filed with the clerk 49 of the court in which the action is pending within thirty days after 50 such service, and such service shall be complete ten days after proof 51 thereof is filed. 52 § 80. Section 216 of the tax law, as added by chapter 415 of the laws 53 of 1944, the opening paragraph as amended by chapter 100 of the laws of 54 1964 and redesignated by chapter 613 of the laws of 1976, is amended to 55 read as follows:S. 2008--A 91 A. 3008--A 1 § 216. Collection of taxes. Every foreign corporation (other than a 2 moneyed corporation) subject to the provisions of this article, except a 3 corporation having a certificate of authority [under section two hundred4twelve of the general corporation law] or having authority to do busi- 5 ness by virtue of section thirteen hundred five of the business corpo- 6 ration law, shall file in the department of state a certificate of 7 designation in its corporate name, signed and acknowledged by its presi- 8 dent or a vice-president or its secretary or treasurer, under its corpo- 9 rate seal, designating the secretary of state as its agent upon whom 10 process in any action provided for by this article may be served within 11 this state, and setting forth an address to which [the secretary of12state] a person shall mail a copy of any such process against the corpo- 13 ration which may be served upon him. In case any such corporation shall 14 have failed to file such certificate of designation, it shall be deemed 15 to have designated the secretary of state as its agent upon whom such 16 process against it may be served; and until a certificate of designation 17 shall have been filed the corporation shall be deemed to have directed 18 [the secretary of state] a person to mail [copies] a copy of process 19 served upon [him] the secretary of state to the corporation at its last 20 known office address within or without the state. When a certificate of 21 designation has been filed by such corporation [the secretary of state] 22 a person serving such process shall mail [copies] a copy of process 23 thereafter served upon [him] a person serving such process to the 24 address set forth in such certificate. Any such corporation, from time 25 to time, may change the address to which [the secretary of state] a 26 person is directed to mail copies of process, by filing a certificate to 27 that effect executed, signed and acknowledged in like manner as a 28 certificate of designation as herein provided. Service of process upon 29 any such corporation or upon any corporation having a certificate of 30 authority [under section two hundred twelve of the general corporation31law] or having authority to do business by virtue of section thirteen 32 hundred five of the business corporation law, in any action commenced at 33 any time pursuant to the provisions of this article, may be made by 34 either (1) personally delivering to and leaving with the secretary of 35 state, a deputy secretary of state or with any person authorized by the 36 secretary of state to receive such service [duplicate copies] a copy 37 thereof at the office of the department of state in the city of Albany, 38 in which event [the secretary of state] a person serving such process 39 shall forthwith send by [registered] certified mail, return receipt 40 requested, [one of such copies] a duplicate copy to the corporation at 41 the address designated by it or at its last known office address within 42 or without the state, or (2) personally delivering to and leaving with 43 the secretary of state, a deputy secretary of state or with any person 44 authorized by the secretary of state to receive such service, a copy 45 thereof at the office of the department of state in the city of Albany 46 and by delivering a copy thereof to, and leaving such copy with, the 47 president, vice-president, secretary, assistant secretary, treasurer, 48 assistant treasurer, or cashier of such corporation, or the officer 49 performing corresponding functions under another name, or a director or 50 managing agent of such corporation, personally without the state. Proof 51 of such personal service without the state shall be filed with the clerk 52 of the court in which the action is pending within thirty days after 53 such service, and such service shall be complete ten days after proof 54 thereof is filed. 55 § 81. Subdivisions (a) and (b) of section 310 of the tax law, as added 56 by chapter 400 of the laws of 1983, are amended to read as follows:S. 2008--A 92 A. 3008--A 1 (a) Designation for service of process.--Every petroleum business 2 which is a corporation, except such a petroleum business having a 3 certificate of authority [under section two hundred twelve of the gener-4al corporation law] or having authority to do business by virtue of 5 section thirteen hundred five of the business corporation law, shall 6 file in the department of state a certificate of designation in its 7 corporate name, signed and acknowledged by its president or vice-presi- 8 dent or its secretary or treasurer, under its corporate seal, designat- 9 ing the secretary of state as its agent upon whom process in any action 10 provided for by this article may be served within this state, and 11 setting forth an address to which [the secretary of state] a person 12 shall mail a copy of any such process against such petroleum business 13 which may be served upon [him] the secretary of state. In case any such 14 petroleum business shall have failed to file such certificate of desig- 15 nation, it shall be deemed to have designated the secretary of state as 16 its agent upon whom such process against it may be served; and until a 17 certificate of designation shall have been filed such a petroleum busi- 18 ness shall be deemed to have directed [the secretary of state] a person 19 to mail copies of process served upon [him] the secretary of state to 20 such petroleum business at its last known office address within or with- 21 out the state. When a certificate of designation has been filed by such 22 a petroleum business [the secretary of state] a person serving process 23 shall mail copies of process thereafter served upon [him] the secretary 24 of state to the address set forth in such certificate. Any such petrole- 25 um business, from time to time, may change the address to which [the26secretary of state] a person is directed to mail copies of process, by 27 filing a certificate to that effect executed, signed and acknowledged in 28 like manner as a certificate of designation as herein provided. 29 (b) Service of process.--Service of process upon any petroleum busi- 30 ness which is a corporation (including any such petroleum business 31 having a certificate of authority [under section two hundred twelve of32the general corporation law] or having authority to do business by 33 virtue of section thirteen hundred five of the business corporation 34 law), in any action commenced at any time pursuant to the provisions of 35 this article, may be made by either (1) personally delivering to and 36 leaving with the secretary of state, a deputy secretary of state or with 37 any person authorized by the secretary of state to receive such service 38 [duplicate copies] a copy thereof at the office of the department of 39 state in the city of Albany, in which event [the secretary of state] a 40 person serving process shall forthwith send by [registered] certified 41 mail, return receipt requested, [one of such copies] a duplicate copy to 42 such petroleum business at the address designated by it or at its last 43 known office address within or without the state, or (2) personally 44 delivering to and leaving with the secretary of state, a deputy secre- 45 tary of state or with any person authorized by the secretary of state to 46 receive such service, a copy thereof at the office of the department of 47 state in the city of Albany and by delivering a copy thereof to, and 48 leaving such copy with, the president, vice-president, secretary, 49 assistant secretary, treasurer, assistant treasurer, or cashier of such 50 petroleum business, or the officer performing corresponding functions 51 under another name, or a director or managing agent of such petroleum 52 business, personally without the state. Proof of such personal service 53 without the state shall be filed with the clerk of the court in which 54 the action is pending within thirty days after such service, and such 55 service shall be complete ten days after proof thereof is filed.S. 2008--A 93 A. 3008--A 1 § 82. This act shall take effect on the one hundred twentieth day 2 after it shall have become a law. 3 PART S 4 Section 1. Subdivision 6 of section 441-a of the real property law, as 5 amended by chapter 183 of the laws of 2006, is amended to read as 6 follows: 7 6. Pocket card. The department shall prepare, issue and deliver, with 8 the assistance of the department of motor vehicles, [to each licensee] 9 upon payment of a fee of five dollars by a licensee, a pocket card in 10 such form and manner as the department shall prescribe, but which shall 11 contain the photo, name and business address of the licensee, and, in 12 the case of a real estate salesman, the name and business address of the 13 broker with whom he or she is associated and shall certify that the 14 person whose name appears thereon is a licensed real estate broker or 15 salesman, as may be. Such cards must be shown on demand. In the case of 16 loss, destruction or damage, the secretary of state may, upon submission 17 of satisfactory proof, issue a duplicate pocket card upon payment of a 18 fee of ten dollars. 19 § 2. This act shall take effect immediately. 20 PART T 21 Section 1. Subdivision 2 of section 54-1101 of the environmental 22 conservation law, as amended by section 4 of part U of chapter 58 of the 23 laws of 2016, is amended to read as follows: 24 2. State assistance payments and/or technical assistance, as defined 25 in section nine hundred seventeen of the executive law, shall not exceed 26 [fifty] seventy-five percent of the cost of the program. For the purpose 27 of determining the amount of state assistance payments, costs shall not 28 be more than the amount set forth in the application for state assist- 29 ance payments approved by the secretary. The state assistance payments 30 shall be paid on audit and warrant of the state comptroller on a certif- 31 icate of availability of the director of the budget. 32 § 2. The opening paragraph and paragraph a of subdivision 1 of section 33 918 of the executive law, as added by chapter 840 of the laws of 1981, 34 are amended to read as follows: 35 The secretary may enter into a contract or contracts for grants or 36 payments to be made, within the limits of any appropriations therefor, 37 for the following: 38 a. To any local governments, or to two or more local governments, for 39 projects approved by the secretary which lead to preparation of a water- 40 front revitalization program; provided, however, that such grants or 41 payments shall not exceed [fifty] seventy-five percent of the approved 42 cost of such projects; 43 § 3. This act shall take effect immediately. 44 PART U 45 Section 1. Paragraph (e) of subdivision 1 of section 169 of the execu- 46 tive law, as amended by section 9 of part A of chapter 60 of the laws of 47 2012, is amended to read as follows: 48 (e) [chairman of state athletic commission,] director of the office of 49 victim services, chairman of human rights appeal board, chairman of the 50 industrial board of appeals, chairman of the state commission ofS. 2008--A 94 A. 3008--A 1 correction, members of the board of parole, member-chairman of unemploy- 2 ment insurance appeal board, director of veterans' affairs, and vice- 3 chairman of the workers' compensation board; 4 § 2. This act shall take effect immediately. 5 PART V 6 Section 1. Expenditures of moneys appropriated in a chapter of the 7 laws of 2017 to the department of agriculture and markets from the 8 special revenue funds-other/state operations, miscellaneous special 9 revenue fund-339, public service account shall be subject to the 10 provisions of this section. Notwithstanding any other provision of law 11 to the contrary, direct and indirect expenses relating to the department 12 of agriculture and markets' participation in general ratemaking 13 proceedings pursuant to section 65 of the public service law or certif- 14 ication proceedings pursuant to article 7 or 10 of the public service 15 law, shall be deemed expenses of the department of public service within 16 the meaning of section 18-a of the public service law. No later than 17 August 15, 2018, the commissioner of the department of agriculture and 18 markets shall submit an accounting of such expenses, including, but not 19 limited to, expenses in the 2017 -- 2018 fiscal year for personal and 20 non-personal services and fringe benefits, to the chair of the public 21 service commission for the chair's review pursuant to the provisions of 22 section 18-a of the public service law. 23 § 2. Expenditures of moneys appropriated in a chapter of the laws of 24 2017 to the department of state from the special revenue funds- 25 other/state operations, miscellaneous special revenue fund-339, public 26 service account shall be subject to the provisions of this section. 27 Notwithstanding any other provision of law to the contrary, direct and 28 indirect expenses relating to the activities of the department of 29 state's utility intervention unit pursuant to subdivision 4 of section 30 94-a of the executive law, including, but not limited to participation 31 in general ratemaking proceedings pursuant to section 65 of the public 32 service law or certification proceedings pursuant to article 7 or 10 of 33 the public service law, shall be deemed expenses of the department of 34 public service within the meaning of section 18-a of the public service 35 law. No later than August 15, 2018, the secretary of state shall submit 36 an accounting of such expenses, including, but not limited to, expenses 37 in the 2017 -- 2018 fiscal year for personal and non-personal services 38 and fringe benefits, to the chair of the public service commission for 39 the chair's review pursuant to the provisions of section 18-a of the 40 public service law. 41 § 3. Expenditures of moneys appropriated in a chapter of the laws of 42 2017 to the office of parks, recreation and historic preservation from 43 the special revenue funds-other/state operations, miscellaneous special 44 revenue fund-339, public service account shall be subject to the 45 provisions of this section. Notwithstanding any other provision of law 46 to the contrary, direct and indirect expenses relating to the office of 47 parks, recreation and historic preservation's participation in general 48 ratemaking proceedings pursuant to section 65 of the public service law 49 or certification proceedings pursuant to article 7 or 10 of the public 50 service law, shall be deemed expenses of the department of public 51 service within the meaning of section 18-a of the public service law. No 52 later than August 15, 2018, the commissioner of the office of parks, 53 recreation and historic preservation shall submit an accounting of such 54 expenses, including, but not limited to, expenses in the 2017 -- 2018S. 2008--A 95 A. 3008--A 1 fiscal year for personal and non-personal services and fringe benefits, 2 to the chair of the public service commission for the chair's review 3 pursuant to the provisions of section 18-a of the public service law. 4 § 4. Expenditures of moneys appropriated in a chapter of the laws of 5 2017 to the department of environmental conservation from the special 6 revenue funds-other/state operations, environmental conservation special 7 revenue fund-301, utility environmental regulation account shall be 8 subject to the provisions of this section. Notwithstanding any other 9 provision of law to the contrary, direct and indirect expenses relating 10 to the department of environmental conservation's participation in state 11 energy policy proceedings, or certification proceedings pursuant to 12 article 7 or 10 of the public service law, shall be deemed expenses of 13 the department of public service within the meaning of section 18-a of 14 the public service law. No later than August 15, 2018, the commissioner 15 of the department of environmental conservation shall submit an account- 16 ing of such expenses, including, but not limited to, expenses in the 17 2017 -- 2018 fiscal year for personal and non-personal services and 18 fringe benefits, to the chair of the public service commission for the 19 chair's review pursuant to the provisions of section 18-a of the public 20 service law. 21 § 5. Notwithstanding any other law, rule or regulation to the contra- 22 ry, expenses of the department of health public service education 23 program incurred pursuant to appropriations from the cable television 24 account of the state miscellaneous special revenue funds shall be deemed 25 expenses of the department of public service. No later than August 15, 26 2018, the commissioner of the department of health shall submit an 27 accounting of expenses in the 2017 -- 2018 fiscal year to the chair of 28 the public service commission for the chair's review pursuant to the 29 provisions of section 217 of the public service law. 30 § 6. This act shall take effect immediately and shall be deemed to 31 have been in full force and effect on and after April 1, 2017. 32 PART W 33 Section 1. Section 2 of part BB of chapter 58 of the laws of 2012, 34 amending the public authorities law relating to authorizing the dormito- 35 ry authority to enter into certain design and construction management 36 agreements, as amended by section 1 of part S of chapter 58 of the laws 37 of 2015, is amended to read as follows: 38 § 2. This act shall take effect immediately [and shall expire and be39deemed repealed April 1, 2017]. 40 § 2. This act shall take effect immediately. 41 PART X 42 Section 1. Legislative findings. In order to increase the authority of 43 the superintendent of financial services to respond to the harm posed by 44 impaired insurers in this state, the legislature finds that it is in the 45 best interest of the people of this state to enact an administrative 46 supervision statute. The superintendent of financial services has the 47 right and responsibility to enforce the insurance law and the authority 48 to seek redress against any person responsible for the impairment or 49 insolvency of the insurer, and nothing in this act is intended to 50 restrict or limit such right, responsibility, or authority. 51 § 2. The insurance law is amended by adding a new section 1123 to read 52 as follows:S. 2008--A 96 A. 3008--A 1 § 1123. Administrative supervision. (a) For the purposes of this 2 subsection, "insurer" shall have the meaning set forth in paragraph one 3 of subsection (b) of section seven thousand four hundred one of this 4 chapter, and shall include a licensed United States branch of an alien 5 insurer entered through this state. 6 (b)(1) The superintendent may issue an order placing a domestic insur- 7 er under administrative supervision if the superintendent determines 8 that one or more of the conditions set forth in section seven thousand 9 four hundred two of this chapter exists. Upon such a determination, the 10 superintendent shall furnish the insurer with a written list of require- 11 ments to abate the condition or conditions within the time specified in 12 the order, which shall not exceed one hundred eighty days. The domestic 13 insurer may challenge the order by requesting an administrative hearing 14 pursuant to the adjudicatory proceeding rules in article three of the 15 state administrative procedure act and regulations promulgated by the 16 superintendent but the order shall remain in full force and effect 17 during the course of the adjudicatory proceeding. Upon issuance of the 18 order, the superintendent shall advise such domestic insurer of its 19 right to request a hearing challenging the order pursuant to the adjudi- 20 catory proceeding rules in article three of the state administrative 21 procedure act and regulations promulgated by the superintendent. 22 (2) If, at the end of the period specified in the order, the super- 23 intendent determines that the condition or conditions that gave rise to 24 the order still exists or exist, then administrative supervision shall 25 continue. The insurer may request a hearing to challenge the superinten- 26 dent's determination to continue administrative supervision. 27 (3) If the superintendent determines that the condition or conditions 28 that gave rise to administrative supervision no longer exists or exist, 29 then the superintendent shall release the insurer from supervision. 30 (c) During the period of supervision, the superintendent may prohibit 31 the insurer from engaging in any of the following activities without the 32 superintendent's prior approval: 33 (1) disposing of, conveying, or encumbering any of its assets or its 34 business in force; 35 (2) withdrawing any funds from its bank accounts; 36 (3) lending any of its funds; 37 (4) investing any of its funds; 38 (5) paying any claims; 39 (6) transferring any of its property; 40 (7) incurring any debt, obligation, or liability; 41 (8) merging or consolidating with another company; 42 (9) approving new premiums or renewing any policies; 43 (10) entering into any new reinsurance contract or treaty; 44 (11) terminating, surrendering, forfeiting, converting, or lapsing any 45 insurance policy, certificate, or contract, except for nonpayment of 46 premiums due; 47 (12) releasing, paying, or refunding premium deposits, accrued cash or 48 loan values, unearned premiums, or other reserves on any insurance poli- 49 cy, certificate, or contract; 50 (13) making any material change in management; 51 (14) increasing salaries and benefits of officers or directors or the 52 payment of bonuses, dividends, or other payments; or 53 (15) such other activities that the superintendent determines are 54 necessary to protect policyholders or the people of this state.S. 2008--A 97 A. 3008--A 1 (d) The superintendent may appoint as administrative supervisor, at 2 the insurer's expense, one or more persons not employed by any insurer 3 or interested in such insurer, except as a policyholder. 4 (e)(1) The expenses of administrative supervision pursuant to this 5 subsection shall be borne and paid by the insurer so supervised. 6 (2) In the event that an insurer becomes subject to a proceeding under 7 article seventy-four of this chapter within one year of the superinten- 8 dent releasing the insurer from administrative supervision, all accrued 9 and outstanding expenses incurred in connection with administrative 10 supervision shall be treated as actual and necessary costs and expenses 11 of the administration of such proceeding under article seventy-four of 12 this chapter. 13 (f) All matters pertaining to a proceeding or determination pursuant 14 to this subsection shall be confidential and not subject to subpoena or 15 public inspection under article six of the public officers law or any 16 other statute, except to the extent that the superintendent finds 17 release of information necessary to protect the public. 18 (g) Nothing in this subsection shall be construed as precluding the 19 superintendent from initiating judicial proceedings to place an insurer 20 in rehabilitation, liquidation, conservation, or dissolution 21 proceedings. 22 § 3. Subsection (a) of section 1309 of the insurance law is amended to 23 read as follows: 24 (a) Whenever the superintendent finds from a financial statement or 25 report on examination that an authorized insurer is unable to pay its 26 outstanding lawful obligations as they mature in the regular course of 27 business, as shown by an excess of required reserves and other liabil- 28 ities over admitted assets, or by its not having sufficient assets to 29 reinsure all outstanding risks with other solvent authorized assuming 30 insurers after paying all accrued claims owed, such insurer shall be 31 deemed insolvent and the superintendent may proceed against it pursuant 32 to the provisions of article seventy-four of this chapter or may place 33 the insurer under administrative supervision pursuant to section one 34 thousand one hundred twenty-three of this chapter. 35 § 4. Subsection (a) of section 1310 of the insurance law is amended to 36 read as follows: 37 (a) Whenever the superintendent finds from a financial statement, or a 38 report on examination, of any domestic stock insurer that [(i)] (1) the 39 admitted assets are less than the aggregate amount of its liabilities 40 and outstanding capital stock or [(ii)] (2) the admitted assets of any 41 such insurer [which] that is required to maintain a minimum surplus to 42 policyholders are less than the aggregate amount of its liabilities and 43 the amount of its minimum surplus to policyholders, [he] the superinten- 44 dent shall determine the amount of the impairment and order the insurer 45 to eliminate the impairment within such period as [he] the superinten- 46 dent designates, not more than ninety days from the service of the 47 order. [He] The superintendent may also order the insurer not to issue 48 any new policies while the impairment exists. If the impairment as 49 determined by the provisions of [item (i) hereof] paragraph one of this 50 subsection equals or exceeds twenty-five percent of the insurer's 51 outstanding capital stock, or as determined by the provisions of [item52(i) or (ii) hereof] paragraph one or two of this subsection is such that 53 the insurer does not have the minimum capital or minimum surplus to 54 policyholders required by this chapter, and if at the expiration of such 55 designated period, such insurer has not satisfied the superintendent 56 that such impairment has been eliminated, the superintendent may proceedS. 2008--A 98 A. 3008--A 1 against the insurer pursuant to the provisions of article seventy-four 2 of this chapter on the ground that its condition is such that its 3 further transaction of business will be hazardous to its policyholders 4 or its creditors or the public or the superintendent may place the 5 insurer under administrative supervision pursuant to section one thou- 6 sand one hundred twenty-three of this chapter. 7 § 5. Subsection (c) of section 1311 of the insurance law is amended to 8 read as follows: 9 (c) If the impairment so determined is such that such insurer does not 10 have the minimum surplus required for item (iii) of subsection (a) 11 [hereof] of this section, and if when such designated period expires the 12 insurer has not satisfied the superintendent that such impairment has 13 been eliminated, the superintendent may proceed against such insurer 14 pursuant to the provisions of article seventy-four of this chapter on 15 the ground that its further transaction of business will be hazardous to 16 its policyholders, its creditors or the public or the superintendent may 17 place the insurer under administrative supervision pursuant to section 18 one thousand one hundred twenty-three of this chapter. 19 § 6. Paragraph 2 of subsection (c) of section 1312 of the insurance 20 law is amended to read as follows: 21 (2) If at the expiration of such designated period such insurer has 22 not satisfied the superintendent that such impairment has been elimi- 23 nated, the superintendent may proceed against such insurer pursuant to 24 the provisions of article seventy-four of this chapter as an insurer 25 whose condition is such that its further transaction of business in the 26 United States will be hazardous to its policyholders, its creditors or 27 the public in the United States or the superintendent may place the 28 insurer under administrative supervision pursuant to subsection (b) of 29 section one thousand one hundred twenty-three of this chapter. 30 § 7. This act shall take effect immediately. 31 PART Y 32 Section 1. Subsections (c) and (d) of section 109 of the insurance 33 law, paragraph 1 of subsection (c) as amended by section 55 of part A of 34 chapter 62 of the laws of 2011, is amended and a new subsection (e) is 35 added to read as follows: 36 (c) (1) If the superintendent finds after notice and hearing that any 37 [authorized] insurer, representative of the insurer, [licensed] insur- 38 ance agent, [licensed] insurance broker, [licensed] adjuster, or any 39 other person or entity [licensed, certified, registered, or authorized40pursuant] subject to this chapter, has wilfully violated the provisions 41 of this chapter or any regulation promulgated thereunder, then the 42 superintendent may order the person or entity to pay to the people of 43 this state a penalty in a sum not exceeding [one] the greater of (A) ten 44 thousand dollars for each offense; (B) a multiple of two times the 45 aggregate damages attributable to the violation; or (C) a multiple of 46 two times the aggregate economic gain attributable to the violation. The 47 superintendent may promulgate regulations implementing the terms of this 48 subsection. 49 (2) Failure to pay such penalty within thirty days after the order, 50 unless it is suspended by an order of a court of competent jurisdiction, 51 shall constitute a further violation of the provisions of this chapter. 52 (3) No penalty shall be imposed pursuant to this subsection if a mone- 53 tary penalty is otherwise provided in this chapter.S. 2008--A 99 A. 3008--A 1 (d) (1) The superintendent may maintain a civil action in the name of 2 the people of the state to recover a judgment for a money penalty 3 imposed by law or to enforce any order issued by the superintendent for 4 the violation of any provision of this chapter. 5 (2) Notwithstanding any law to the contrary, the superintendent may, 6 in his or her sole discretion, either (A) prosecute any such action and 7 retain charge and control of the action; or (B) refer such action to the 8 department of law for prosecution. 9 (e) Any person or entity that is required by this chapter to be 10 licensed, certified, registered, or authorized shall be subject to the 11 laws of this chapter and the penalties contained herein as if the person 12 or entity was so licensed, certified, registered, or authorized, even if 13 the person or entity does not possess the required license, certif- 14 ication, registration, or authorization. 15 § 2. Section 44 of the banking law is amended by adding two new subdi- 16 visions 10 and 11 to read as follows: 17 10. The superintendent may maintain a civil action in the name of the 18 people of the state to recover a judgement for a money penalty imposed 19 by law or to enforce any order issued by the superintendent for the 20 violation of any provision of this chapter. Notwithstanding any law to 21 the contrary, the superintendent may, in his or her discretion, either 22 (a) prosecute any such action and retain charge and control of the 23 action; or (b) refer such action to the department of law for prose- 24 cution. 25 11. Any person or entity who engages in activity that is regulated in 26 this chapter without being licensed, certified, registered, authorized, 27 chartered, accredited, incorporated or otherwise obtaining any permis- 28 sion of the superintendent required by this chapter before engaging in 29 such activity shall be subject to the laws of this chapter and the 30 penalties contained herein as if the person or entity was so licensed, 31 certified, registered, authorized, chartered, accredited, incorporated, 32 or otherwise approved by the superintendent. 33 § 3. Subsection (a) of section 309 of the financial services law is 34 amended and a new subsection (c) is added to read as follows: 35 (a) In addition to such other remedies as are provided under this 36 chapter, the superintendent may maintain and prosecute an action against 37 any person subject to this chapter, the insurance law or the banking 38 law, or the person's officers, directors, trustees or agents, for the 39 purpose of obtaining an injunction restraining such person or persons 40 from doing any acts in violation of the provisions of this chapter, the 41 insurance law or the banking law. The superintendent may commence such 42 action against any person or entity that is required by this chapter, 43 the banking law, or the insurance law to be licensed, certified, regis- 44 tered, authorized, chartered, accredited, or incorporated, as if the 45 person or entity was so licensed, certified, registered, authorized, 46 chartered, accredited, or incorporated, even if the person or entity 47 does not possess the required license, certification, registration, 48 authorization, charter, accreditation, or incorporation. 49 (c) Notwithstanding any law to the contrary, the superintendent may, 50 in his or her discretion, either (i) prosecute any such action and 51 retain charge and control of the action; or (ii) refer such action to 52 the department of law for prosecution. 53 § 4. This act shall take effect immediately. 54 PART ZS. 2008--A 100 A. 3008--A 1 Section 1. The banking law is amended by adding a new article 14-A to 2 read as follows: 3 ARTICLE XIV-A 4 STUDENT LOAN SERVICERS 5 Section 710. Definitions. 6 711. Licensing. 7 712. Application for a student loan servicer license; fees. 8 713. Application process to receive license to engage in the 9 business of student loan servicing. 10 714. Changes in officers and directors. 11 715. Changes in control. 12 716. Grounds for suspension or revocation of license. 13 717. Books and records; reports and electronic filing. 14 718. Rules and regulations. 15 719. Prohibited practices. 16 720. Servicing student loans without a license. 17 721. Responsibilities. 18 722. Examinations. 19 723. Penalties for violation of this article. 20 724. Severability of provisions. 21 725. Compliance with other laws. 22 § 710. Definitions. 1. "Applicant" shall mean any person applying for 23 a license to be a student loan servicer. 24 2. "Borrower" shall mean any resident of this state who has received a 25 student loan or agreed to pay a student loan or any person who shares 26 responsibility with such resident for repaying a student loan. 27 3. "Borrower benefit" shall mean an incentive offered to a borrower in 28 connection with the origination of a student loan, including but not 29 limited to an interest rate reduction, principal rebate, fee waiver or 30 rebate, loan cancellation, or cosigner release. 31 4. "Exempt organization" shall mean any banking organization, foreign 32 banking corporation, national bank, federal savings association, federal 33 credit union, or any bank, trust company, savings bank, savings and loan 34 association, or credit union organized under the laws of any other 35 state, or any person exempted by the superintendent of financial 36 services pursuant to regulations promulgated in accordance with this 37 article. 38 5. "Person" shall mean any individual, association, corporation, 39 limited liability company, partnership, trust, unincorporated organiza- 40 tion, government or political subdivision of a government, and any other 41 entity. 42 6. "Servicer" or "student loan servicer" shall mean a person licensed 43 pursuant to section seven hundred eleven of this article to engage in 44 the business of servicing any student loan of a borrower. 45 7. "Servicing" shall mean: 46 (a) receiving any payment from a borrower pursuant to the terms of any 47 student loan; 48 (b) applying any payment to a borrower's account pursuant to the terms 49 of a student loan or the contract governing the servicing of any such 50 loan; 51 (c) providing any notification of amounts owed on a student loan by or 52 on account of any borrower; 53 (d) during a period when a borrower is not required to make a payment 54 on a student loan, maintaining account records for the student loan and 55 communicating with the borrower regarding the student loan on behalf of 56 the owner of the student loan promissory note;S. 2008--A 101 A. 3008--A 1 (e) interacting with a borrower with respect to or regarding any 2 attempt to avoid default on the borrower's student loan, or facilitating 3 the activities described in paragraph (a) or (b) of this subdivision; or 4 (f) performing other administrative services with respect to a borrow- 5 er's student loan. 6 8. "Student loan" shall mean any loan to a borrower to finance postse- 7 condary education or expenses related to postsecondary education. 8 § 711. Licensing. 1. No person shall engage in the business of servic- 9 ing student loans owed by one or more borrowers residing in this state 10 without first being licensed by the superintendent as a student loan 11 servicer in accordance with this article and such regulations as may be 12 prescribed by the superintendent. 13 2. The licensing provisions of this subdivision shall not apply to any 14 exempt organization, or any person that shall be exempted in accordance 15 with regulations prescribed by the superintendent hereunder; provided 16 that such exempt organization notifies the superintendent that the 17 exempt organization is acting as a student loan servicer in this state 18 and complies with sections seven hundred nineteen and seven hundred 19 twenty-one of this article and any regulation applicable to student loan 20 servicers promulgated by the superintendent. 21 § 712. Application for a student loan servicer license; fees. 1. The 22 application for a license to be a student loan servicer shall be in 23 writing, under oath, and in the form prescribed by the superintendent. 24 Notwithstanding article three of the state technology law or any other 25 law to the contrary, the superintendent may require that an application 26 for a license or any other submission or application for approval as may 27 be required by this article be made or executed by electronic means if 28 he or she deems it necessary to ensure the efficient and effective 29 administration of this article. The application shall include a 30 description of the activities of the applicant, in such detail and for 31 such periods as the superintendent may require, including: 32 (a) an affirmation of financial solvency noting such capitalization 33 requirements as may be required by the superintendent, and access to 34 such credit as may be required by the superintendent; 35 (b) a financial statement prepared by a certified public accountant, 36 the accuracy of which is sworn to under oath before a notary public by 37 an officer or other representative of the applicant who is authorized to 38 execute such documents; 39 (c) the fingerprints of the applicant, or its members, officers, part- 40 ners, directors and principals as may be appropriate, which may be 41 submitted to the division of criminal justice services and the federal 42 bureau of investigation for state and national criminal history record 43 checks; 44 (d) an affirmation that the applicant, or its members, officers, part- 45 ners, directors and principals as may be appropriate, are at least twen- 46 ty-one years of age; 47 (e) information as to the character, fitness, financial and business 48 responsibility, background and experiences of the applicant, or its 49 members, officers, partners, directors and principals as may be appro- 50 priate; 51 (f) any additional detail or information required by the superinten- 52 dent. 53 2. An application to become a student loan servicer or any application 54 with respect to a student loan servicer shall be accompanied by a fee as 55 prescribed pursuant to section eighteen-a of this chapter.S. 2008--A 102 A. 3008--A 1 § 713. Application process to receive license to engage in the busi- 2 ness of student loan servicing. 1. Upon the filing of an application for 3 a license, if the superintendent shall find that the financial responsi- 4 bility, experience, character, and general fitness of the applicant and, 5 if applicable, the members, officers, partners, directors and principals 6 of the applicant are such as to command the confidence of the community 7 and to warrant belief that the business will be operated honestly, fair- 8 ly, and efficiently within the purpose of this article, the superinten- 9 dent shall thereupon issue a license in duplicate to engage in the busi- 10 ness of servicing student loans described in section seven hundred ten 11 of this article in accordance with the provisions of this article. If 12 the superintendent shall not so find, the superintendent shall not issue 13 a license, and the superintendent shall so notify the applicant. The 14 superintendent shall transmit one copy of a license to the applicant and 15 file another copy in the office of the department of financial services. 16 Upon receipt of such license, a student loan servicer shall be author- 17 ized to engage in the business of servicing student loans in accordance 18 with the provisions of this article. Such license shall remain in full 19 force and effect until it is surrendered by the servicer or revoked or 20 suspended as hereinafter provided. 21 2. The superintendent may refuse to issue a license pursuant to this 22 article if he or she shall find that the applicant, or any person who is 23 a director, officer, partner, agent, employee, member, substantial 24 stockholder of the applicant, consultant or person having a relationship 25 with the applicant similar to a consultant: 26 (a) has been convicted of a crime involving an activity which is a 27 felony under this chapter or under article one hundred fifty-five, one 28 hundred seventy, one hundred seventy-five, one hundred seventy-six, one 29 hundred eighty, one hundred eighty-five, one hundred eighty-seven, one 30 hundred ninety, two hundred, two hundred ten or four hundred seventy of 31 the penal law or any comparable felony under the laws of any other state 32 or the United States, provided that such crime would be a felony if 33 committed and prosecuted under the laws of this state; 34 (b) has had a license or registration revoked by the superintendent or 35 any other regulator or jurisdiction; 36 (c) has been an officer, director, partner, member or substantial 37 stockholder of an entity which has had a license or registration revoked 38 by the superintendent or any other regulator or jurisdiction; or 39 (d) has been an agent, employee, officer, director, partner or member 40 of an entity, or a consultant to, or person having had a similar 41 relationship with, any entity which has had a license or registration 42 revoked by the superintendent where such person shall have been found by 43 the superintendent to bear responsibility in connection with the revoca- 44 tion. 45 3. The term "substantial stockholder", as used in this subdivision, 46 shall be deemed to refer to a person owning or controlling directly or 47 indirectly ten per centum or more of the total outstanding stock of a 48 corporation. 49 § 714. Changes in officers and directors. Upon any change of any of 50 the executive officers, directors, partners or members of any student 51 loan servicer, the student loan servicer shall submit to the superinten- 52 dent the name, address, and occupation of each new officer, director, 53 partner or member, and provide such other information as the superinten- 54 dent may require. 55 § 715. Changes in control. 1. It shall be unlawful, except with the 56 prior approval of the superintendent, for any action to be taken whichS. 2008--A 103 A. 3008--A 1 results in a change of control of the business of a student loan servi- 2 cer. Prior to any change of control, the person desirous of acquiring 3 control of the business of a student loan servicer shall make written 4 application to the superintendent and pay an investigation fee as 5 prescribed pursuant to section eighteen-a of this chapter to the super- 6 intendent. The application shall contain such information as the super- 7 intendent, by rule or regulation, may prescribe as necessary or appro- 8 priate for the purpose of making the determination required by 9 subdivision two of this section. Such information shall include, but not 10 be limited to, the information and other material required for a student 11 loan servicer by subdivision one of section seven hundred twelve of this 12 article. 13 2. The superintendent shall approve or disapprove the proposed change 14 of control of a student loan servicer in accordance with the provisions 15 of section seven hundred thirteen of this article. 16 3. For a period of six months from the date of qualification thereof 17 and for such additional period of time as the superintendent may 18 prescribe, in writing, the provisions of subdivisions one and two of 19 this section shall not apply to a transfer of control by operation of 20 law to the legal representative, as hereinafter defined, of one who has 21 control of a student loan servicer. Thereafter, such legal represen- 22 tative shall comply with the provisions of subdivisions one and two of 23 this section. The provisions of subdivisions one and two of this section 24 shall be applicable to an application made under this section by a legal 25 representative. The term "legal representative", for the purposes of 26 this subdivision, shall mean a person duly appointed by a court of 27 competent jurisdiction to act as executor, administrator, trustee, 28 committee, conservator or receiver, including a person who succeeds a 29 legal representative and a person acting in an ancillary capacity there- 30 to in accordance with the provisions of such court appointment. 31 4. As used in this section the term "control" means the possession, 32 directly or indirectly, of the power to direct or cause the direction of 33 the management and policies of a student loan servicer, whether through 34 the ownership of voting stock of such student loan servicer, the owner- 35 ship of voting stock of any person which possesses such power or other- 36 wise. Control shall be presumed to exist if any person, directly or 37 indirectly, owns, controls or holds with power to vote ten per centum or 38 more of the voting stock of any student loan servicer or of any person 39 which owns, controls or holds with power to vote ten per centum or more 40 of the voting stock of any student loan servicer, but no person shall be 41 deemed to control a student loan servicer solely by reason of being an 42 officer or director of such student loan servicer. The superintendent 43 may in his discretion, upon the application of a student loan servicer 44 or any person who, directly or indirectly, owns, controls or holds with 45 power to vote or seeks to own, control or hold with power to vote any 46 voting stock of such student loan servicer, determine whether or not the 47 ownership, control or holding of such voting stock constitutes or would 48 constitute control of such student loan servicer for purposes of this 49 section. 50 § 716. Grounds for suspension or revocation of license. 1. The super- 51 intendent may revoke any license to engage in the business of a student 52 loan servicer issued pursuant to this article if he or she shall find 53 that: 54 (a) a servicer has violated any provision of this article, any rule or 55 regulation promulgated by the superintendent under and within the 56 authority of this article, or any other applicable law;S. 2008--A 104 A. 3008--A 1 (b) any fact or condition exists which, if it had existed at the time 2 of the original application for such license, would have warranted the 3 superintendent refusing originally to issue such license; 4 (c) a servicer does not cooperate with an examination or investigation 5 by the superintendent; 6 (d) a servicer engages in fraud, intentional misrepresentation, or 7 gross negligence in servicing a student loan; 8 (e) the competence, experience, character, or general fitness of the 9 servicer, an individual controlling, directly or indirectly, ten percent 10 or more of the outstanding interests, or any person responsible for 11 servicing a student loan for the servicer indicates that it is not in 12 the public interest to permit the servicer to continue servicing student 13 loans; 14 (f) the servicer engages in unsafe or injurious practice; 15 (g) the servicer is insolvent, suspends payment of its obligations, or 16 makes a general assignment for the benefit of its creditors; or 17 (h) a servicer has violated the laws of this state, any other state 18 law or any federal law involving fraudulent or dishonest dealing, or a 19 final judgment has been entered against a student loan servicer in a 20 civil action upon grounds of fraud, misrepresentation or deceit. 21 2. As a part of his or her determination regarding suspension or revo- 22 cation, the superintendent is authorized to require the fingerprinting 23 of any person, officer, director, partner, member or employee of a 24 student loan servicer. Such fingerprints shall be submitted to the divi- 25 sion of criminal justice services for a state criminal history record 26 check and may be submitted to the federal bureau of investigation for a 27 national criminal history record check. 28 3. The superintendent may, on good cause shown, or where there is a 29 substantial risk of public harm, suspend any license for a period not 30 exceeding thirty days, pending investigation. "Good cause", as used in 31 this subdivision, shall exist when a student loan servicer has defaulted 32 or is likely to default in performing its financial engagements or 33 engages in dishonest or inequitable practices which may cause substan- 34 tial harm to the persons afforded the protection of this article. 35 4. Except as provided in subdivision three of this section, no license 36 shall be revoked or suspended except after notice and a hearing thereon. 37 Any order of suspension issued after notice and a hearing may include as 38 a condition of reinstatement that the student loan servicer make resti- 39 tution to consumers of fees or other charges which have been improperly 40 charged or collected, including but not limited to by allocating 41 payments contrary to a borrower's direction or in a manner that fails to 42 help a borrower avoid default, as determined by the superintendent. Any 43 hearing held pursuant to the provisions of this section shall be 44 noticed, conducted and administered in compliance with the state admin- 45 istrative procedure act. 46 5. Any student loan servicer may surrender any license by delivering 47 to the superintendent written notice that the student loan servicer 48 thereby surrenders such license, but such surrender shall not affect the 49 servicer's civil or criminal liability for acts committed prior to the 50 surrender. If such surrender is made after the issuance by the super- 51 intendent of a statement of charges and notice of hearing, the super- 52 intendent may proceed against the servicer as if the surrender had not 53 taken place. 54 6. No revocation, suspension, or surrender of any license shall impair 55 or affect the obligation of any pre-existing lawful contract between theS. 2008--A 105 A. 3008--A 1 student loan servicer and any person, including the department of finan- 2 cial services. 3 7. Every license issued pursuant to this article shall remain in full 4 force and effect until the same shall have been surrendered, revoked or 5 suspended in accordance with any other provisions of this article. 6 8. Whenever the superintendent shall revoke or suspend a license 7 issued pursuant to this article, he or she shall forthwith execute in 8 duplicate a written order to that effect. The superintendent shall file 9 one copy of the order in the office of the department of financial 10 services and shall forthwith serve the other copy upon the student loan 11 servicer. Any such order may be reviewed in the manner provided by arti- 12 cle seventy-eight of the civil practice law and rules. An application 13 for review as authorized by this section must be made within thirty days 14 from the date of the order of suspension or revocation. 15 § 717. Books and records; reports and electronic filing. 1. Each 16 student loan servicer and exempt organization shall keep and use in its 17 business such books, accounts and records as will enable the superinten- 18 dent to determine whether the servicer or exempt organization is comply- 19 ing with the provisions of this article and with the rules and regu- 20 lations lawfully made by the superintendent. Every servicer and exempt 21 organization shall preserve such books, accounts, and records, for at 22 least three years. 23 2. (a) Each student loan servicer shall annually, on or before a date 24 to be determined by the superintendent, file a report with the super- 25 intendent giving such information as the superintendent may require 26 concerning the business and operations during the preceding calendar 27 year of such servicer under authority of this article. Such report shall 28 be subscribed and affirmed as true by the servicer under the penalties 29 of perjury and shall be in the form prescribed by the superintendent. 30 (b) In addition to annual reports, the superintendent may require such 31 additional regular or special reports as he or she may deem necessary to 32 the proper supervision of student loan servicers under this article. 33 Such additional reports shall be subscribed and affirmed as true by the 34 servicer under the penalties of perjury and shall be in the form 35 prescribed by the superintendent. 36 3. Notwithstanding article three of the state technology law or any 37 other law to the contrary, the superintendent may require that any 38 submission or approval as may be required by the superintendent be made 39 or executed by electronic means if he or she deems it necessary to 40 ensure the efficient administration of this article. 41 § 718. Rules and regulations. 1. In addition to such powers as may 42 otherwise be prescribed by this chapter, the superintendent is hereby 43 authorized and empowered to promulgate such rules and regulations as may 44 in the judgment of the superintendent be consistent with the purposes of 45 this article, or appropriate for the effective administration of this 46 article, including, but not limited to: 47 (a) Such rules and regulations in connection with the activities of 48 student loan servicers and exempt organizations as may be necessary and 49 appropriate for the protection of borrowers in this state. 50 (b) Such rules and regulations as may be necessary and appropriate to 51 define unfair, deceptive or abusive acts or practices in connection with 52 the activities of student loan servicers and exempt organizations in 53 servicing student loans. 54 (c) Such rules and regulations as may define the terms used in this 55 article and as may be necessary and appropriate to interpret and imple- 56 ment the provisions of this article.S. 2008--A 106 A. 3008--A 1 (d) Such rules and regulations as may be necessary for the enforcement 2 of this article. 3 2. The superintendent is hereby authorized and empowered to make such 4 specific rulings, demands and findings as the superintendent may deem 5 necessary for the proper conduct of the student loan servicing industry. 6 § 719. Prohibited practices. No student loan servicer shall: 7 1. Directly or indirectly employ any scheme, device or artifice to 8 defraud or mislead a borrower. 9 2. Engage in any unfair, deceptive or predatory act or practice toward 10 any person or misrepresent or omit any material information in 11 connection with the servicing of a student loan, including, but not 12 limited to, misrepresenting the amount, nature or terms of any fee or 13 payment due or claimed to be due on a student loan, the terms and condi- 14 tions of the loan agreement or the borrower's obligations under the 15 loan. 16 3. Misapply payments to the outstanding balance of any student loan or 17 to any related interest or fees. 18 4. Provide inaccurate information to a consumer reporting agency. 19 5. Refuse to communicate with an authorized representative of the 20 borrower who provides a written authorization signed by the borrower, 21 provided that the servicer may adopt procedures reasonably related to 22 verifying that the representative is in fact authorized to act on behalf 23 of the borrower. 24 6. Make any false statement or make any omission of a material fact in 25 connection with any information or reports filed with a governmental 26 agency or in connection with any investigation conducted by the super- 27 intendent or another governmental agency. 28 § 720. Servicing student loans without a license. 1. Whenever, in the 29 opinion of the superintendent, a person is engaged in the business of 30 servicing student loans, either actually or through subterfuge, without 31 a license from the superintendent, the superintendent may order that 32 person to desist and refrain from engaging in the business of servicing 33 student loans in the state. If, within thirty days after an order is 34 served, a request for a hearing is filed in writing and the hearing is 35 not held within sixty days of the filing, the order shall be rescinded. 36 2. The superintendent may maintain a civil action to enforce any order 37 issued by the superintendent pursuant to this section. 38 3. This section shall not apply to exempt organizations. 39 § 721. Responsibilities. 1. If a student loan servicer regularly 40 reports information to a consumer reporting agency, the servicer shall 41 accurately report a borrower's payment performance to at least one 42 consumer reporting agency that compiles and maintains files on consumers 43 on a nationwide basis as defined in Section 603(p) of the federal Fair 44 Credit Reporting Act (15 U.S.C. Sec. 1681a(p)), upon acceptance as a 45 data furnisher by that consumer reporting agency. 46 2. (a) Except as provided in federal law or required by a student loan 47 agreement, a student loan servicer shall inquire of a borrower how to 48 apply a borrower's nonconforming payment. A borrower's direction on how 49 to apply a nonconforming payment shall remain in effect for any future 50 nonconforming payment during the term of a student loan until the 51 borrower provides different directions. 52 (b) For purposes of this subdivision, "nonconforming payment" shall 53 mean a payment that is either more or less than the borrower's required 54 student loan payment. 55 3. (a) If the sale, assignment, or other transfer of the servicing of 56 a student loan results in a change in the identity of the person to whomS. 2008--A 107 A. 3008--A 1 the borrower is required to send subsequent payments or direct any 2 communications concerning the student loan, a student loan servicer 3 shall transfer all information regarding a borrower, a borrower's 4 account, and a borrower's student loan, including but not limited to the 5 borrower's repayment status and any borrower benefits associated with 6 the borrower's student loan, to the new student loan servicer servicing 7 the borrower's student loan within forty-five days. 8 (b) A student loan servicer shall adopt policies and procedures to 9 verify that it has received all information regarding a borrower, a 10 borrower's account, and a borrower's student loan, including but not 11 limited to the borrower's repayment status and any borrower benefits 12 associated with the borrower's student loan, when the servicer obtains 13 the right to service a student loan. 14 4. If a student loan servicer sells, assigns, or otherwise transfers 15 the servicing of a student loan to a new servicer, the sale, assignment 16 or other transfer shall be completed at least seven days before the 17 borrower's next payment is due. 18 5. (a) A student loan servicer that sells, assigns, or otherwise 19 transfers the servicing of a student loan shall require as a condition 20 of such sale, assignment or other transfer that the new student loan 21 servicer shall honor all borrower benefits originally represented as 22 being available to a borrower during the repayment of the student loan 23 and the possibility of such benefits, including any benefits that were 24 represented as being available but for which the borrower had not yet 25 qualified. 26 (b) A student loan servicer that obtains the right to service a 27 student loan shall honor all borrower benefits originally represented as 28 being available to a borrower during the repayment of the student loan 29 and the possibility of such benefits, including any benefits that were 30 represented as being available but for which the borrower had not yet 31 qualified. 32 6. A student loan servicer shall respond within thirty days after 33 receipt to a written inquiry from a borrower or a borrower's represen- 34 tative. 35 7. A student loan servicer shall preserve records of each student loan 36 and all communications with borrowers for not less than two years 37 following the final payment on a student loan or the sale, assignment or 38 other transfer of the servicing of a student loan, whichever occurs 39 first, or such longer period as may be required by any other provision 40 of law. 41 § 722. Examinations. 1. The superintendent may at any time, and as 42 often as he or she may determine, either personally or by a person duly 43 designated by the superintendent, investigate the business and examine 44 the books, accounts, records, and files used therein of every student 45 loan servicer. For that purpose the superintendent and his or her duly 46 designated representative shall have free access to the offices and 47 places of business, books, accounts, papers, records, files, safes and 48 vaults of all student loan servicers. The superintendent and any person 49 duly designated by him or her shall have the authority to require the 50 attendance of and to examine under oath all persons whose testimony he 51 or she may require relative to such business. 52 2. No person subject to investigation or examination under this 53 section may knowingly withhold, abstract, remove, mutilate, destroy or 54 secrete any books, records, computer records or other information. 55 3. The expenses incurred in making any examination pursuant to this 56 section shall be assessed against and paid by the student loan servicerS. 2008--A 108 A. 3008--A 1 so examined, except that traveling and subsistence expenses so incurred 2 shall be charged against and paid by servicers in such proportions as 3 the superintendent shall deem just and reasonable, and such propor- 4 tionate charges shall be added to the assessment of the other expenses 5 incurred upon each examination. Upon written notice by the superinten- 6 dent of the total amount of such assessment, the servicer shall become 7 liable for and shall pay such assessment to the superintendent. 8 4. In any hearing in which a department employee acting under authori- 9 ty of this chapter is available for cross-examination, any official 10 written report, worksheet, other related papers, or duly certified copy 11 thereof, compiled, prepared, drafted, or otherwise made by such depart- 12 ment employee, after being duly authenticated by the employee, may be 13 admitted as competent evidence upon the oath of the employee that such 14 worksheet, investigative report, or other related documents were 15 prepared as a result of an examination of the books and records of a 16 servicer or other person, conducted pursuant to the authority of this 17 chapter. 18 5. Unless otherwise exempt pursuant to subdivision two of section 19 seven hundred eleven of this article, affiliates of a student loan 20 servicer shall be subject to examination by the superintendent on the 21 same terms as the servicer, but only when reports from, or examination 22 of, a servicer provides evidence of unlawful activity between a servicer 23 and affiliate benefitting, affecting, or arising from the activities 24 regulated by this article. 25 § 723. Penalties for violation of this article. 1. In addition to such 26 penalties as may otherwise be applicable by law, the superintendent may, 27 after notice and hearing, require any person found violating the 28 provisions of this article or the rules or regulations promulgated here- 29 under to pay to the people of this state an additional penalty for each 30 violation of the article or any regulation or policy promulgated here- 31 under a sum not to exceed an amount as determined pursuant to section 32 forty-four of this chapter for each such violation. 33 2. Nothing in this article shall limit any statutory or common-law 34 right of any person to bring any action in any court for any act, or the 35 right of the state to punish any person for any violation of any law. 36 § 724. Severability of provisions. If any provision of this article, 37 or the application of such provision to any person or circumstance, 38 shall be held invalid, illegal or unenforceable, the remainder of the 39 article, and the application of such provision to persons or circum- 40 stances other than those as to which it is held invalid, illegal or 41 unenforceable, shall not be affected thereby. 42 § 725. Compliance with other laws. 1. Student loan servicers shall 43 engage in the business of servicing student loans in conformity with the 44 provisions of this chapter, such rules and regulations as may be promul- 45 gated by the superintendent thereunder and all applicable federal laws 46 and the rules and regulations promulgated thereunder. 47 2. Nothing in this section shall be construed to limit any otherwise 48 applicable state or federal law or regulations. 49 § 2. Subdivision 10 of section 36 of the banking law, as amended by 50 chapter 182 of the laws of 2011, is amended to read as follows: 51 10. All reports of examinations and investigations, correspondence and 52 memoranda concerning or arising out of such examination and investi- 53 gations, including any duly authenticated copy or copies thereof in the 54 possession of any banking organization, bank holding company or any 55 subsidiary thereof (as such terms "bank holding company" and "subsid- 56 iary" are defined in article three-A of this chapter), any corporationS. 2008--A 109 A. 3008--A 1 or any other entity affiliated with a banking organization within the 2 meaning of subdivision six of this section and any non-banking subsid- 3 iary of a corporation or any other entity which is an affiliate of a 4 banking organization within the meaning of subdivision six-a of this 5 section, foreign banking corporation, licensed lender, licensed casher 6 of checks, licensed mortgage banker, registered mortgage broker, 7 licensed mortgage loan originator, licensed sales finance company, 8 registered mortgage loan servicer, licensed student loan servicer, 9 licensed insurance premium finance agency, licensed transmitter of 10 money, licensed budget planner, any other person or entity subject to 11 supervision under this chapter, or the department, shall be confidential 12 communications, shall not be subject to subpoena and shall not be made 13 public unless, in the judgment of the superintendent, the ends of 14 justice and the public advantage will be subserved by the publication 15 thereof, in which event the superintendent may publish or authorize the 16 publication of a copy of any such report or any part thereof in such 17 manner as may be deemed proper or unless such laws specifically author- 18 ize such disclosure. For the purposes of this subdivision, "reports of 19 examinations and investigations, and any correspondence and memoranda 20 concerning or arising out of such examinations and investigations", 21 includes any such materials of a bank, insurance or securities regulato- 22 ry agency or any unit of the federal government or that of this state 23 any other state or that of any foreign government which are considered 24 confidential by such agency or unit and which are in the possession of 25 the department or which are otherwise confidential materials that have 26 been shared by the department with any such agency or unit and are in 27 the possession of such agency or unit. 28 § 3. Subdivisions 1, 2, 3 and 5 of section 39 of the banking law, 29 subdivisions 1, 2 and 5 as amended by chapter 123 of the laws of 2009 30 and subdivision 3 as amended by chapter 155 of the laws of 2012, are 31 amended to read as follows: 32 1. To appear and explain an apparent violation. Whenever it shall 33 appear to the superintendent that any banking organization, bank holding 34 company, registered mortgage broker, licensed mortgage banker, licensed 35 student loan servicer, registered mortgage loan servicer, licensed mort- 36 gage loan originator, licensed lender, licensed casher of checks, 37 licensed sales finance company, licensed insurance premium finance agen- 38 cy, licensed transmitter of money, licensed budget planner, out-of-state 39 state bank that maintains a branch or branches or representative or 40 other offices in this state, or foreign banking corporation licensed by 41 the superintendent to do business or maintain a representative office in 42 this state has violated any law or regulation, he or she may, in his or 43 her discretion, issue an order describing such apparent violation and 44 requiring such banking organization, bank holding company, registered 45 mortgage broker, licensed mortgage banker, licensed student loan servi- 46 cer, licensed mortgage loan originator, licensed lender, licensed casher 47 of checks, licensed sales finance company, licensed insurance premium 48 finance agency, licensed transmitter of money, licensed budget planner, 49 out-of-state state bank that maintains a branch or branches or represen- 50 tative or other offices in this state, or foreign banking corporation to 51 appear before him or her, at a time and place fixed in said order, to 52 present an explanation of such apparent violation. 53 2. To discontinue unauthorized or unsafe and unsound practices. When- 54 ever it shall appear to the superintendent that any banking organiza- 55 tion, bank holding company, registered mortgage broker, licensed mort- 56 gage banker, licensed student loan servicer, registered mortgage loanS. 2008--A 110 A. 3008--A 1 servicer, licensed mortgage loan originator, licensed lender, licensed 2 casher of checks, licensed sales finance company, licensed insurance 3 premium finance agency, licensed transmitter of money, licensed budget 4 planner, out-of-state state bank that maintains a branch or branches or 5 representative or other offices in this state, or foreign banking corpo- 6 ration licensed by the superintendent to do business in this state is 7 conducting business in an unauthorized or unsafe and unsound manner, he 8 or she may, in his or her discretion, issue an order directing the 9 discontinuance of such unauthorized or unsafe and unsound practices, and 10 fixing a time and place at which such banking organization, bank holding 11 company, registered mortgage broker, licensed mortgage banker, licensed 12 student loan servicer, registered mortgage loan servicer, licensed mort- 13 gage loan originator, licensed lender, licensed casher of checks, 14 licensed sales finance company, licensed insurance premium finance agen- 15 cy, licensed transmitter of money, licensed budget planner, out-of-state 16 state bank that maintains a branch or branches or representative or 17 other offices in this state, or foreign banking corporation may volun- 18 tarily appear before him or her to present any explanation in defense of 19 the practices directed in said order to be discontinued. 20 3. To make good impairment of capital or to ensure compliance with 21 financial requirements. Whenever it shall appear to the superintendent 22 that the capital or capital stock of any banking organization, bank 23 holding company or any subsidiary thereof which is organized, licensed 24 or registered pursuant to this chapter, is impaired, or the financial 25 requirements imposed by subdivision one of section two hundred two-b of 26 this chapter or any regulation of the superintendent on any branch or 27 agency of a foreign banking corporation or the financial requirements 28 imposed by this chapter or any regulation of the superintendent on any 29 licensed lender, registered mortgage broker, licensed mortgage banker, 30 licensed student loan servicer, licensed casher of checks, licensed 31 sales finance company, licensed insurance premium finance agency, 32 licensed transmitter of money, licensed budget planner or private banker 33 are not satisfied, the superintendent may, in the superintendent's 34 discretion, issue an order directing that such banking organization, 35 bank holding company, branch or agency of a foreign banking corporation, 36 registered mortgage broker, licensed mortgage banker, licensed student 37 loan servicer, licensed lender, licensed casher of checks, licensed 38 sales finance company, licensed insurance premium finance agency, 39 licensed transmitter of money, licensed budget planner, or private bank- 40 er make good such deficiency forthwith or within a time specified in 41 such order. 42 5. To keep books and accounts as prescribed. Whenever it shall appear 43 to the superintendent that any banking organization, bank holding compa- 44 ny, registered mortgage broker, licensed mortgage banker, licensed 45 student loan servicer, registered mortgage loan servicer, licensed mort- 46 gage loan originator, licensed lender, licensed casher of checks, 47 licensed sales finance company, licensed insurance premium finance agen- 48 cy, licensed transmitter of money, licensed budget planner, agency or 49 branch of a foreign banking corporation licensed by the superintendent 50 to do business in this state, does not keep its books and accounts in 51 such manner as to enable him or her to readily ascertain its true condi- 52 tion, he or she may, in his or her discretion, issue an order requiring 53 such banking organization, bank holding company, registered mortgage 54 broker, licensed mortgage banker, licensed student loan servicer, regis- 55 tered mortgage loan servicer, licensed mortgage loan originator, 56 licensed lender, licensed casher of checks, licensed sales financeS. 2008--A 111 A. 3008--A 1 company, licensed insurance premium finance agency, licensed transmitter 2 of money, licensed budget planner, or foreign banking corporation, or 3 the officers or agents thereof, or any of them, to open and keep such 4 books or accounts as he or she may, in his or her discretion, determine 5 and prescribe for the purpose of keeping accurate and convenient records 6 of its transactions and accounts. 7 § 4. Paragraph (a) of subdivision 1 of section 44 of the banking law, 8 as amended by chapter 155 of the laws of 2012, is amended to read as 9 follows: 10 (a) Without limiting any power granted to the superintendent under any 11 other provision of this chapter, the superintendent may, in a proceeding 12 after notice and a hearing, require any safe deposit company, licensed 13 lender, licensed casher of checks, licensed sales finance company, 14 licensed insurance premium finance agency, licensed transmitter of 15 money, licensed mortgage banker, licensed student loan servicer, regis- 16 tered mortgage broker, licensed mortgage loan originator, registered 17 mortgage loan servicer or licensed budget planner to pay to the people 18 of this state a penalty for any violation of this chapter, any regu- 19 lation promulgated thereunder, any final or temporary order issued 20 pursuant to section thirty-nine of this article, any condition imposed 21 in writing by the superintendent in connection with the grant of any 22 application or request, or any written agreement entered into with the 23 superintendent. 24 § 5. This act shall take effect on the one hundred eightieth day after 25 it shall have become a law. 26 PART AA 27 Section 1. The banking law is amended by adding a new section 4-d to 28 read as follows: 29 § 4-d. Protecting vulnerable adults from financial exploitation. 1. 30 Definitions. As used in this section: 31 (a) "Banking institution" means any bank, trust company, savings bank, 32 savings and loan association, credit union, or branch of a foreign bank- 33 ing corporation, which is chartered, organized or licensed under the 34 laws of this state or any other state or the United States, and, in the 35 ordinary course of business takes deposit accounts in this state. 36 (b) "Vulnerable adult" means an individual who, because of mental 37 and/or physical impairment is potentially unable to manage his or her 38 own resources or protect himself or herself from financial exploitation. 39 (c) "Financial exploitation" means: (i) the improper taking, withhold- 40 ing, appropriation, or use of a vulnerable adult's money, assets, or 41 property; or (ii) any act or omission by a person, including through the 42 use of a power of attorney, guardianship, or any other authority regard- 43 ing a vulnerable adult to: (A) obtain control, through deception, intim- 44 idation or undue influence, over the vulnerable adult's money, assets, 45 or property or (B) convert the vulnerable adult's money, assets, or 46 property. 47 (d) "Transaction hold" means a delay in the completion of one or more 48 financial transactions pending an investigation by a banking institu- 49 tion, adult protective services, or a law enforcement agency. 50 (e) "Adult protective services" means the division of the New York 51 City Human Resources Administration and each county's department of 52 human services or department of social services responsible for provid- 53 ing adult protective services pursuant to section four hundred seventy- 54 three of the social services law.S. 2008--A 112 A. 3008--A 1 (f) "Law enforcement agency" means any agency, including the financial 2 frauds and consumer protection unit of the department of financial 3 services, which is empowered by law to conduct an investigation or to 4 make an arrest for a felony, and any agency which is authorized by law 5 to prosecute or participate in the prosecution of a felony. 6 2. Application of transaction hold. (a) If a banking institution 7 reasonably believes: (i) that financial exploitation of a vulnerable 8 adult may have occurred, may have been attempted, or is being attempted; 9 and (ii) that the placement of a transaction hold may be necessary to 10 protect a vulnerable adult's money, assets, or property from financial 11 exploitation, then the banking institution may, at its discretion, apply 12 a transaction hold on the account of a vulnerable adult, the account on 13 which a vulnerable adult is a beneficiary, including a trust or guardi- 14 anship account, or the account of a person who is reasonably believed by 15 the banking institution to be engaging in the financial exploitation of 16 a vulnerable adult. 17 (b) A banking institution may also apply a transaction hold on the 18 account of a vulnerable adult, the account on which a vulnerable adult 19 is a beneficiary, including a trust or guardianship account, or the 20 account of a person who is reasonably believed by the banking institu- 21 tion to be engaging in the financial exploitation of a vulnerable adult, 22 if: (i) adult protective services or a law enforcement agency provides 23 information to the banking institution establishing a reasonable basis 24 to believe that financial exploitation of a vulnerable adult may have 25 occurred, may have been attempted, or is being attempted; and (ii) the 26 placement of a transaction hold may be necessary to protect a vulnerable 27 adult's money, assets, or property from financial exploitation. 28 (c) A banking institution that applies a transaction hold shall: 29 (i) make a reasonable effort to provide notice, orally or in writing, 30 to all parties authorized to transact business on the account on which a 31 transaction hold was placed within two business days of when the trans- 32 action hold was placed; 33 (ii) immediately, but no later than one business day after the trans- 34 action hold is placed, report the transaction hold, including the basis 35 for the baking institution's belief that the financial exploitation of a 36 vulnerable adult may have occurred, may have been attempted, or is being 37 attempted, to adult protective services and to a law enforcement agency; 38 (iii) at the request of adult protective services or a law enforcement 39 agency, provide all information and documents that relate to the trans- 40 action hold within three business days of the request for the informa- 41 tion or documents; and 42 (iv) notwithstanding the transaction hold, make funds available from 43 the account on which a transaction hold is placed to allow the vulner- 44 able adult or other account holder to meet his or her ongoing obli- 45 gations such as housing and other living expenses or emergency expenses 46 as determined by adult protective services, a law enforcement agency or 47 a not-for-profit organization that regularly provides services to 48 vulnerable adults in the community in which the vulnerable adult 49 resides. 50 (d) During the pendency of a transaction hold, a banking institution 51 may, in its discretion, also make funds available from the account on 52 which a transaction hold is placed to allow the vulnerable adult or 53 other account holder meet his or her ongoing obligations such as housing 54 and other living expenses or emergency expenses, provided the banking 55 institution does not have a reasonable basis to believe that the 56 dispersal of such funds to the vulnerable adult or other account holderS. 2008--A 113 A. 3008--A 1 will result in the financial exploitation of the vulnerable adult. Any 2 such dispersal of funds pursuant to this subdivision shall be reported 3 within one business day after the dispersal is made to adult protective 4 services and to a law enforcement agency. 5 (e) The superintendent may adopt regulations identifying the factors 6 that a banking institution should consider in determining whether: (i) 7 the financial exploitation of a vulnerable adult may have occurred, may 8 have been attempted, or is being attempted; and (ii) the placement of a 9 transaction hold is necessary to protect a vulnerable adult's money, 10 assets, or property. 11 3. Duration of transaction hold. (a) Subject to paragraphs (b), (c) 12 and (d) of this subdivision, a transaction hold that a banking institu- 13 tion places on an account pursuant to this section shall terminate five 14 business days after the date on which the transaction hold is applied by 15 the banking institution. A banking institution may terminate the trans- 16 action hold at any time during this five day period if the banking 17 institution is satisfied that the termination of the transaction hold is 18 not likely to result in financial exploitation of a vulnerable adult. 19 (b) A transaction hold may be extended beyond the period set forth in 20 paragraph (a) of this subdivision for up to an additional fifteen days 21 at the request of either adult protective services or a law enforcement 22 agency. 23 (c) A transaction hold may be extended beyond the periods set forth in 24 paragraphs (a) and (b) of this subdivision only pursuant to an order 25 issued by a court of competent jurisdiction. 26 (d) A transaction hold may be terminated at any time pursuant an order 27 issued by a court of competent jurisdiction. 28 4. Immunity. A banking institution or an employee of a banking insti- 29 tution shall be immune from criminal, civil, and administrative liabil- 30 ity for all good faith actions in relation to the application of this 31 section including any good faith determination to apply or not apply a 32 transaction hold on an account. Where there is reasonable basis to 33 conclude: (a) that financial exploitation of a vulnerable adult may have 34 occurred, may have been attempted, or is being attempted; and (b) that 35 the placement of a transaction hold may be necessary to protect a 36 vulnerable adult's money, assets, or property from financial exploita- 37 tion, such immunity shall not apply to a determination not to apply a 38 transaction hold when the banking institution or employee acts reckless- 39 ly or engages in intentional misconduct in making the determination, or 40 the determination results from a conflict of interest. 41 5. Certification program. The department may develop a financial 42 exploitation certification program for banking institutions. Upon 43 completion of the training components required by the program and after 44 establishing the necessary internal policies, procedures, and in-house 45 training programs, a banking institution shall receive from the depart- 46 ment an adult financial exploitation prevention certificate demonstrat- 47 ing that staff at such banking institution have been trained on how to 48 identify, help prevent, and report the financial exploitation of a 49 vulnerable adult. At the discretion of the superintendent, the certif- 50 ication program may be mandatory for banking institutions licensed by 51 the department. 52 6. Regulations. The superintendent may issue such rules and regu- 53 lations that provide the procedures for the enforcement of the terms of 54 this section and any other rules and regulations that he or she deems 55 necessary to implement the terms of this section.S. 2008--A 114 A. 3008--A 1 § 2. This act shall take effect on the one hundred eightieth day after 2 it shall have become a law. 3 PART BB 4 Section 1. The financial services law is amended by adding a new 5 section 105 to read as follows: 6 § 105. Disqualification. (a) Definitions. (1) Covered individual. The 7 term "covered individual," when used in this section, means (A) an indi- 8 vidual operating under or required to operate under a license, registra- 9 tion, permit certification or authorization under this chapter, the 10 banking law, the insurance law, or the regulations promulgated there- 11 under, (B) an owner, director, trustee, officer, employee, member or 12 partner of a covered entity, or (C) an individual otherwise engaged in 13 the business of banking, insurance or financial services in the state. 14 (2) Covered entity. The term "covered entity," when used in this 15 section, means any entity (A) operating under or required to operate 16 under a license, registration, permit, certificate or authorization 17 under the banking law or the insurance law; (B) authorized, accredited, 18 chartered or incorporated or possessing or required to possess other 19 similar status under the banking law, or the insurance law; (C) regu- 20 lated by the superintendent pursuant to this chapter; (D) that has 21 submitted an application to the superintendent (i) for a license, regis- 22 tration, permit, certificate or authorization under the banking law or 23 the insurance law, (ii) to be authorized, accredited, chartered or 24 incorporated under the banking law, or the insurance law or to be regu- 25 lated pursuant to this chapter. 26 (3) Disqualifying event. For purposes of this section, an individual 27 commits a "disqualifying event," when he or she: 28 (A) has violated a written agreement between the superintendent and 29 the covered individual; 30 (B) has willfully violated an agreement between the superintendent and 31 a covered entity; 32 (C) has engaged or participated in any unsafe or unsound practice in 33 connection with any covered entity; 34 (D) has willfully made or caused to be made in any application, 35 filing, or submission with the superintendent, any statement which was 36 at the time and in the light of the circumstances under which it was 37 made false or misleading with respect to any material fact, or has omit- 38 ted to state in any such application or report any material fact which 39 is required to be stated therein; 40 (E) has been convicted within five years of any felony or misdemeanor 41 that: 42 (i) involves the purchase or sale of any financial product or service, 43 the taking of a false oath, the making of a false report, bribery, 44 perjury, burglary, any substantially equivalent activity however denomi- 45 nated, or conspiracy to commit any such offense; 46 (ii) arises out of the conduct of the business of a covered entity or 47 in connection with the promotion, sale or delivery of a financial prod- 48 uct or service; 49 (iii) involves the larceny, theft, robbery, extortion, forgery, coun- 50 terfeiting, fraudulent concealment, embezzlement, fraudulent conversion, 51 or misappropriation of funds, or securities, or substantially equivalent 52 activity however denominated; orS. 2008--A 115 A. 3008--A 1 (iv) has a direct bearing on the individual's fitness or ability to 2 perform one or more of the duties or responsibilities necessarily 3 related to the license, position, or job in question; 4 (F) has been found by a federal financial regulatory authority, a 5 state financial regulatory authority, or a foreign financial regulatory 6 authority that is recognized by the superintendent as such to have: 7 (i) made or caused to be made in any application for registration or 8 report required to be filed with the financial regulatory authority, or 9 in any proceeding before the financial regulatory authority with respect 10 to registration, any statement that was at the time and in the light of 11 the circumstances under which it was made false or misleading with 12 respect to any material fact, or has omitted to state in any application 13 or report to the financial regulatory authority any material fact that 14 is required to be stated therein; or 15 (ii) violated any banking law, or statute or regulation regarding 16 transactions in securities, or contracts of sale of a commodity for 17 future delivery, traded on or subject to the rules of a contract market 18 or any board of trade; or 19 (G) is subject to any final order of any federal financial regulatory 20 authority, a state financial regulatory authority, or a foreign finan- 21 cial regulatory authority that is recognized by the superintendent as 22 such that: 23 (i) bars such person from association with an entity regulated by such 24 commission, authority, agency, or officer, or from engaging in the busi- 25 ness of securities, insurance, banking, savings association activities, 26 or credit union activities; or 27 (ii) constitutes a final order based on violations of any laws or 28 regulations that prohibits fraudulent, manipulative, or deceptive 29 conduct. 30 (b) Disqualification. Without limiting any power granted to the super- 31 intendent under any other provision of state or federal law, (1) whenev- 32 er the superintendent has reason to believe that a covered individual 33 has committed a disqualifying event that is of such severity as to have 34 a direct bearing on the individual's fitness or ability to (A) serve as 35 an owner, director, trustee, officer, employee, member or partner of a 36 covered entity or having any association with a covered entity, (B) hold 37 any license, registration, permit, certification or authorization issued 38 by the department, or (C) otherwise engage in the business of banking, 39 insurance, or financial services in the state, (2) the superintendent 40 may serve a statement of the charges against such covered individual and 41 a notice of an opportunity to appear before the superintendent to show 42 cause why he or she should not be disqualified from (A) serving as an 43 owner, director, trustee, officer, employee, member or partner of a 44 covered entity or having any association with a covered entity, (B) 45 holding any license, registration, permit, certification or authori- 46 zation issued by the department, or (C) otherwise engaging in the busi- 47 ness of banking, insurance, or financial services in the state. 48 (c) Order of disqualification. Without limiting any power granted to 49 the superintendent under any other provision of state or federal law, if 50 such covered individual waives a hearing, or fails to appear in person 51 or by a duly authorized representative without good cause shown at the 52 time and place set for the hearing or, if after a hearing, (1) the 53 superintendent finds that the covered individual has engaged in a 54 disqualifying event that is of such severity as to have a direct bearing 55 on the individual's fitness or ability to (A) serve as an owner, direc- 56 tor, trustee, officer, employee, member or partner of a covered entityS. 2008--A 116 A. 3008--A 1 or having any association with a covered entity, (B) hold any license, 2 registration, permit, certification or authorization issued by the 3 department, or (C) otherwise engage in the business of banking, insur- 4 ance, or financial services in the state, (2) the superintendent may 5 issue an order disqualifying the covered individual from (A) serving as 6 an owner, director, trustee, officer, employee, member or partner of a 7 covered entity or having any association with a covered entity, (B) 8 holding any license, registration, permit, certification or authori- 9 zation issued by the department, or (C) otherwise engaging in the busi- 10 ness of banking, insurance, or financial services in the state. Such 11 order of disqualification may also prohibit the covered individual's 12 performance of any contractual agreements with any covered entity. Such 13 order of disqualification may be for the covered individual's lifetime 14 or for any shorter period determined by the superintendent to be in the 15 public's interest. Any order issued pursuant to this subsection and the 16 findings of fact upon which it is based may not be made public or 17 disclosed to anyone, except as provided in subdivision ten of section 18 thirty-six of the banking law or in connection with proceedings for a 19 violation of this section. 20 (d) Suspension pending determination of charges. (1) In connection 21 with, or at any time after service of the written notice pursuant to 22 subsection (b) of this section, the superintendent may suspend for a 23 period of up to one hundred eighty days, pending the determination of 24 the charges, a covered individual from serving as a director, trustee, 25 officer, employee, member or partner of a covered entity or having any 26 association with a covered entity; or holding any license, registration, 27 certification or authorization issued by the department, if the super- 28 intendent has reason to believe that by reason of the conduct giving 29 rise to the alleged disqualifying event: 30 (A) a covered entity has suffered or will probably suffer financial 31 loss; 32 (B) the interests of the depositors at a covered entity have been or 33 could be prejudiced; or 34 (C) the covered individual demonstrates willful disregard for the 35 safety and soundness of a covered entity. 36 (2) The superintendent may extend the suspension for additional peri- 37 ods of up to one hundred eighty days if the hearing conducted pursuant 38 to subsection (c) of this section is not completed within the prior 39 suspension period due to the request of the covered individual. 40 (3) Any suspension order issued pursuant to this subsection shall 41 become effective upon service, unless it is amended or rescinded by the 42 superintendent or a court of competent jurisdiction, or replaced by an 43 order issued pursuant to subsection (c) of this section. Such suspension 44 order may be reviewed in the manner provided by article seventy-eight of 45 the civil practice law and rules. 46 (e) Rules and regulations. The superintendent may issue such rules and 47 regulations as are necessary to implement the provisions of this 48 section. 49 § 2. This act shall take effect January 1, 2018. 50 PART CC 51 Section 1. The banking law is amended by adding a new section 340-a to 52 read as follows: 53 § 340-a. Exemption for certain lenders and partnering organizations. 54 1. For purposes of this section:S. 2008--A 117 A. 3008--A 1 (a) "Exempt entity" shall mean an entity exempted pursuant to subdivi- 2 sion two of this section. 3 (b) "Limited lending activity" shall mean the lending of money to an 4 individual borrower for which no interest or fees, except as otherwise 5 provided for in this section, are charged and for which the borrower may 6 make full or partial repayment of the loan prior to the disbursement of 7 the loan proceeds. 8 2. Notwithstanding this section and sections one, ten, fourteen, thir- 9 ty-six-b and thirty-eight of this chapter, the superintendent may allow 10 an entity to engage in limited lending activity without being subject to 11 the requirements of this chapter, if the entity: 12 (a) engages in no activity regulated by this chapter except the making 13 of zero-interest loans and any activity incidental thereto; 14 (b) is exempt from federal income taxes under section 501 (c) (3) of 15 the Internal Revenue Code and is organized and operated exclusively for 16 one or more of the purposes described in section 501 (c) (3) of the 17 Internal Revenue Code; 18 (c) pays no part of its net earnings to a private shareholder or indi- 19 vidual; 20 (d) pays or receives no broker's fee in connection with any loan that 21 it makes; and 22 (e) satisfies the other requirements set forth in this section. 23 3. (a) An application to operate as an exempt entity shall be filed 24 with the superintendent, in a manner prescribed by the superintendent, 25 along with a fee in the amount of five hundred dollars. The superinten- 26 dent shall investigate the financial condition and responsibility, 27 financial and business experience, character and general fitness of the 28 applicant and, if the superintendent finds these qualities are such as 29 to warrant the belief that the applicant's business will be conducted 30 honestly, fairly, equitably, carefully and efficiently within the 31 purposes and intent of this section, and in a manner commanding the 32 confidence and trust of the community, the superintendent shall advise 33 the applicant in writing of the superintendent's approval of the appli- 34 cation for an exemption pursuant to this section. The superintendent 35 may, in his or her discretion, refuse to grant an exemption if he or she 36 finds that one or more of the provisions of this section were not met or 37 are not being met by the applicant or that denial of the exemption is in 38 the best interests of the public. 39 (b) The superintendent may suspend or revoke any exemption granted 40 pursuant to this section, if he or she finds that: 41 (i) any such entity, knowingly or without the exercise of due care to 42 prevent such violation, has violated any provision of this section or 43 article, or has failed to comply with any demand, or requirement made by 44 the superintendent; 45 (ii) there has been any material misstatement or failure to give a 46 true and correct answer in an application or in response to any question 47 posed by the superintendent; 48 (iii) the exempt entity has defrauded any borrower or willfully failed 49 to perform any written agreement with such person; or 50 (iv) any fact or condition exists which, if it had existed at the time 51 of the original application for an exemption, would have warranted the 52 superintendent to refuse to grant such exemption. 53 (c) Except as provided for in paragraph (d) of this subdivision, no 54 exemption granted hereunder shall be suspended or revoked except after a 55 hearing. The superintendent shall give the exempt entity at least ten 56 days written notice of the time and place of such hearing by registeredS. 2008--A 118 A. 3008--A 1 mail addressed to the principal place of business of the exempt entity. 2 Any order suspending or revoking an exemption shall recite the grounds 3 upon which it is based and shall not be effective until ten days after 4 written notice has been sent by registered mail to the exempt entity's 5 principal place of business. 6 (d) Upon, or at any time after service of written notice pursuant to 7 paragraph (c) of this subdivision, the superintendent may suspend, pend- 8 ing the determination of the charges, an exemption issued pursuant to 9 this section if the superintendent has reason to believe that an exempt 10 entity: 11 (i) has defaulted or is likely to default in the performance of its 12 financial engagements; 13 (ii) is engaging in dishonest or inequitable practices; or 14 (iii) poses a substantial harm to the persons afforded the protection 15 of this section. 16 4. (a) Every exempt entity shall maintain records relating to its 17 lending activities for at least five years. 18 (b) Every exempt entity shall file an annual report with the super- 19 intendent on or before March fifteenth of each year, containing informa- 20 tion that the superintendent requires concerning lending activities by 21 the entity, including any loans facilitated by a partnering nonprofit 22 organization described in subdivision thirteen of this section, within 23 the state during the preceding calendar year. 24 5. Every loan made by an exempt entity shall comply with the following 25 requirements: 26 (a) The loan shall be unsecured. 27 (b) No interest may be imposed. 28 (c) Except for a reimbursement of up to ten dollars to cover an insuf- 29 ficient funds fee incurred by an exempt entity due to actions of the 30 borrower, no administrative or other fees may be imposed on a borrower. 31 No exempt entity shall charge more than two insufficient funds fees to 32 the same borrower in a single month. 33 (d) The following information shall be disclosed to the borrower in 34 writing, in a typeface no smaller than twelve-point type and in the 35 primary language of the borrower, at the time the loan application is 36 received by the exempt entity: 37 (i) the amount to be borrowed, that no interest will be charged on the 38 loan, and the total dollar cost of the loan to the borrower if the loan 39 is paid back on time, including the principal amount borrowed, the 40 repayment installment amount, the frequency of payment, and the insuffi- 41 cient funds fee, if applicable; and 42 (ii) an explanation of whether, and under what circumstances, a 43 borrower may exit a loan agreement. 44 (e) The principal amount upon origination of the loan shall be no less 45 than two hundred fifty dollars and no more than two thousand five 46 hundred dollars, and a term of not less than the following: 47 (i) ninety days for loans whose principal balance upon origination is 48 less than five hundred dollars; 49 (ii) one hundred twenty days for loans whose principal balance upon 50 origination is at least five hundred dollars, but is less than one thou- 51 sand five hundred dollars; or 52 (iii) one hundred eighty days for loans whose principal balance upon 53 origination is at least one thousand five hundred dollars. 54 6. The exempt entity may restructure a borrower's loan only if the 55 loan as restructured continues to comply with the requirements in para- 56 graphs (a), (b) and (c) of subdivision five of this section.S. 2008--A 119 A. 3008--A 1 7. An exempt entity shall not sell or assign unpaid debt arising out 2 of any loans made pursuant to the authority of this section to third 3 parties for collection. 4 8. Prior to disbursement of loan proceeds, the exempt entity shall at 5 no cost to the borrower either: 6 (a) provide a credit education program or seminar to the borrower that 7 has been previously reviewed and approved by the superintendent for use 8 in complying with this section; or 9 (b) obtain evidence that the borrower has attended a credit education 10 program or seminar offered by an independent third party that has been 11 previously reviewed and approved by the superintendent for use in 12 complying with this section. 13 9. An exempt entity shall report each borrower's payment performance 14 to at least one consumer reporting agency that compiles and maintains 15 files on consumers on a nationwide basis. For purposes of this section, 16 a consumer reporting agency that compiles and maintains files on consum- 17 ers on a nationwide basis is one that meets the definition in section 18 603(p) of the federal Fair Credit Reporting Act (15 U.S.C. Sec. 19 1681a(p)). Any exempt entity that is accepted as a data furnisher shall 20 report all borrower payment performance since the inception of lending 21 by such entity, as soon as practicable after such individual is accepted 22 into the exempt entity's lending program, but in no event more than six 23 months after its acceptance into the program. 24 10. The exempt entity shall underwrite each loan and shall ensure that 25 a loan is not made if, through its underwriting, the entity determines 26 that the borrower's total monthly debt service payments, at the time of 27 loan origination, including the loan for which the borrower is being 28 considered, and across all outstanding forms of credit that can be inde- 29 pendently verified by the exempt entity, exceeds fifty percent of the 30 borrower's gross monthly household income, unless a lesser amount is 31 mandated by subparagraph (iii) of paragraph (c) of this subdivision. The 32 exempt entity shall in every case: 33 (a) Obtain information and documentation pertaining to all of a 34 borrower's outstanding debt obligations during the loan application and 35 underwriting process, including but not limited to verified information 36 from a credit report and loans that are self-reported by the borrower 37 but not available through independent verification. 38 (b) Not include for purposes of a debt-to-income ratio evaluation, 39 loans from friends or family, except if in the judgment of the exempt 40 entity, such inclusion is necessary to protect the interests of the 41 consumer. 42 (c) Verify the borrower's household income to determine the borrower's 43 debt-to-income ratio using information from any of the following sourc- 44 es: 45 (i) electronic means or services deemed acceptable by the superinten- 46 dent; 47 (ii) Internal Revenue Service form W-2, tax returns, payroll receipts, 48 bank statements, or other third-party documents that provide reasonably 49 reliable evidence of the borrower's actual income; or 50 (iii) a signed statement from the borrower stating sources and amounts 51 of income, if the borrower's actual income cannot be independently veri- 52 fied using electronic means or services, Internal Revenue Service forms, 53 tax returns, payroll receipts, bank statements, or other third-party 54 documents. If income is verified using a signed statement from a borrow- 55 er, a loan shall not be made if the borrower's total monthly debt 56 service payments, at the time of loan origination, including the loanS. 2008--A 120 A. 3008--A 1 for which the borrower is being considered, and across all outstanding 2 forms of credit, exceeds twenty-five percent of the borrower's gross 3 monthly household income. 4 11. The exempt entity shall notify each borrower, at least two days 5 prior to each payment due date, of the amount due and the payment due 6 date. Notification may be provided by any means mutually acceptable to 7 the borrower and the exempt entity. A borrower shall have the right to 8 opt out of this notification at any time, upon electronic or written 9 request to the exempt entity. The exempt entity shall notify each 10 borrower of this right prior to disbursing loan proceeds. 11 12. No exempt entity, in connection with, or incidental to, the facil- 12 itating of any loan made pursuant to this section, shall offer, sell, or 13 require a borrower to contract for "credit insurance" or insurance on 14 tangible personal or real property of any type securing any loan. 15 13. An exempt entity may partner with a nonprofit organization for the 16 purpose of facilitating zero-interest loans by the exempt entity pursu- 17 ant to this section. This nonprofit organization shall not be subject to 18 this section, provided that it satisfies the requirements applicable to 19 an exempt entity set forth in paragraphs (b), (c) and (d) of subdivision 20 two of this section and provided that: 21 (a) The exempt entity notifies the superintendent within fifteen days 22 of entering into a written agreement with a partnering nonprofit organ- 23 ization, on such form and in such manner as the superintendent may 24 prescribe. At a minimum, this notification shall include the name of the 25 partnering nonprofit organization, the contact information for a person 26 responsible for the lending activities facilitated by that partnering 27 organization, a copy of the agreement and the address or addresses at 28 which the partnering organization can be reached. 29 (b) The exempt entity includes information regarding the loans facili- 30 tated by the partnering organization in the annual report required 31 pursuant to subdivision four of this section. 32 (c) The superintendent may, at his or her sole discretion, disqualify 33 a partnering nonprofit organization upon a determination that this 34 organization has acted in violation of this section or any regulation 35 adopted hereunder. 36 14. The superintendent may examine or request a special report from 37 each exempt entity and each partnering nonprofit organization for 38 compliance with the provisions of this section at any time. Any entity 39 so examined shall make available to the superintendent or his or her 40 representative all books and records requested by the superintendent 41 related to the lending activities facilitated by that entity. In addi- 42 tion to the application fee provided for in paragraph (a) of subdivision 43 three of this section, the cost of any such examination shall be paid 44 for by the entity being examined. 45 15. All reports of examinations and investigations, correspondence and 46 memoranda concerning or arising out of any examination or investigation 47 of an exempt entity shall be subject to the provisions of subdivision 48 ten of section thirty-six of this chapter. 49 16. The superintendent is hereby authorized and empowered to make such 50 general rules and regulations, and such specific rulings, demands and 51 findings as he or she may deem necessary for the proper conduct of the 52 lending activities exempted from licensing under this section. 53 § 2. This act shall take effect on the one hundred eightieth day after 54 it shall have become a law. 55 PART DDS. 2008--A 121 A. 3008--A 1 Section 1. The state finance law is amended by adding a new section 2 89-i to read as follows: 3 § 89-i. Paid family leave risk adjustment fund. 1. There is hereby 4 established in the sole custody of the superintendent of financial 5 services a special fund, to be known as the "paid family leave risk 6 adjustment fund". 7 2. Such fund shall consist of money received by the superintendent 8 from insurance carriers as payments into any risk adjustment mechanism 9 established by regulation in accordance with paragraph two of subsection 10 (n) of section four thousand two hundred thirty-five of the insurance 11 law. 12 3. All moneys retained in such fund shall be held on behalf of insur- 13 ance carriers and paid out by the superintendent to insurance carriers 14 pursuant to the risk adjustment mechanism established by regulation in 15 accordance with paragraph two of subsection (n) of section four thousand 16 two hundred thirty-five of the insurance law. 17 4. The funds so received and deposited in such risk adjustment fund 18 shall not be deemed to be state funds. 19 § 2. This act shall take effect immediately. 20 PART EE 21 Section 1. Section 340 of the banking law, as amended by chapter 22 of 22 the laws of 1990, is amended to read as follows: 23 § 340. Doing business without license prohibited. 1. No person or 24 other entity shall engage in the business of making loans in the princi- 25 pal amount of twenty-five thousand dollars or less for any loan to an 26 individual for personal, family, household, or investment purposes and 27 in a principal amount of fifty thousand dollars or less to an individual 28 or business for business and commercial loans, [and charge, contract29for, or receive a greater rate of interest than the lender would be30permitted by law to charge if he were not a licensee hereunder] except 31 as authorized by this article or by regulations issued by the super- 32 intendent and without first obtaining a license from the superintendent. 33 2. For the purposes of this section, a person or entity shall be 34 considered as engaging in the business of making loans in New York, and 35 subject to the licensing and other requirements of this article, if it 36 solicits loans in the amounts prescribed by this section [within this37state] and, in connection with such solicitation, makes loans, purchases 38 or otherwise acquires from others loans or other forms of financing, or 39 arranges or facilitates the funding of loans, to individuals then resi- 40 dent in this state or to businesses located or doing business in this 41 state, except that no person or entity shall be considered as engaging 42 in the business of making loans in this state on the basis of isolated[,43incidental] or occasional transactions which otherwise meet the require- 44 ments of this section. 45 3. When necessary to facilitate low cost lending in any community, the 46 superintendent shall have the power to adopt regulations that provide an 47 exemption from the licensure requirement in subdivision one of this 48 section for a person or entity. The superintendent may also adopt any 49 such additional rules or regulations that he or she deems necessary to 50 implement the terms of this section including the exemption provision in 51 this subdivision. 52 4. Nothing in this article shall apply to licensed collateral loan 53 brokers. 54 § 2. This act shall take effect January 1, 2018.S. 2008--A 122 A. 3008--A 1 PART FF 2 Section 1. Paragraph (b) of subdivision 6 of section 1304 of the real 3 property actions and proceedings law, as amended by section 7 of part Q 4 of chapter 73 of the laws of 2016, is amended to read as follows: 5 (b) (1) "Home loan" means a home loan, including an open-end credit 6 plan, [other than a reverse mortgage transaction,] in which: 7 (i) The principal amount of the loan at origination did not exceed the 8 conforming loan size that was in existence at the time of origination 9 for a comparable dwelling as established by the federal housing adminis- 10 tration or federal national mortgage association; 11 (ii) The borrower is a natural person; 12 (iii) The debt is incurred by the borrower primarily for personal, 13 family, or household purposes; 14 (iv) The loan is secured by a mortgage or deed of trust on real estate 15 upon which there is located or there is to be located a structure or 16 structures intended principally for occupancy of from one to four fami- 17 lies which is or will be occupied by the borrower as the borrower's 18 principal dwelling; and 19 (v) The property is located in this state. 20 (2) A home loan shall include a loan secured by a reverse mortgage 21 that meets the requirements of clauses (i) through (v) of subparagraph 22 one of this paragraph. 23 § 2. Subdivision (a) of rule 3408 of the civil practice law and rules, 24 as amended by section 2 of part Q of chapter 73 of the laws of 2016, is 25 amended to read as follows: 26 (a) [In] 1. Except as provided in paragraph two of this subdivision, 27 in any residential foreclosure action involving a home loan as such term 28 is defined in section thirteen hundred four of the real property actions 29 and proceedings law, in which the defendant is a resident of the proper- 30 ty subject to foreclosure, plaintiff shall file proof of service within 31 twenty days of such service, however service is made, and the court 32 shall hold a mandatory conference within sixty days after the date when 33 proof of service upon such defendant is filed with the county clerk, or 34 on such adjourned date as has been agreed to by the parties, for the 35 purpose of holding settlement discussions pertaining to the relative 36 rights and obligations of the parties under the mortgage loan documents, 37 including, but not limited to: [1.] (i) determining whether the parties 38 can reach a mutually agreeable resolution to help the defendant avoid 39 losing his or her home, and evaluating the potential for a resolution in 40 which payment schedules or amounts may be modified or other workout 41 options may be agreed to, including, but not limited to, a loan modifi- 42 cation, short sale, deed in lieu of foreclosure, or any other loss miti- 43 gation option; or [2.] (ii) whatever other purposes the court deems 44 appropriate. 45 2. Paragraph one of this subdivision shall not apply to a home loan 46 secured by a reverse mortgage where the default was triggered by the 47 death of the last surviving borrower unless the last surviving borrow- 48 er's spouse, if any, is a resident of the property subject to foreclo- 49 sure. 50 § 3. This act shall take effect immediately; provided, however, that: 51 (a) the amendments to paragraph (b) of subdivision 6 of section 1304 52 of the real property actions and proceedings law, made by section one of 53 this act, shall take effect on the same date and in the same manner as 54 section 7 of part Q of chapter 73 of the laws of 2016 takes effect; andS. 2008--A 123 A. 3008--A 1 (b) the amendments to subdivision (a) of rule 3408 of the civil prac- 2 tice law and rules, made by section two of this act, shall be subject to 3 the expiration and reversion of such subdivision pursuant to subdivision 4 e of section 25 of chapter 507 of the laws of 2009, as amended. 5 PART GG 6 Section 1. This act enacts into law major components of legislation 7 relating to assessments, distribution of assets, and insurers deemed to 8 be in a hazardous financial condition. Each component is wholly 9 contained within a Subpart identified as Subparts A through C. The 10 effective date for each particular provision contained within such 11 Subpart is set forth in the last section of such Subpart. Any provision 12 in any section contained within a Subpart, including the effective date 13 of the Subpart, which makes references to a section "of this act", when 14 used in connection with that particular component, shall be deemed to 15 mean and refer to the corresponding section of the Subpart in which it 16 is found. Section three of this act sets forth the general effective 17 date of this act. 18 SUBPART A 19 Section 1. Subsection (a) of section 206 of the financial services 20 law, is amended and a new subsection (g) is added to read as follows: 21 (a) For each fiscal year commencing on or after April first, two thou- 22 sand twelve, assessments to defray operating expenses, including all 23 direct and indirect costs, of the department, except expenses incurred 24 in the liquidation of banking organizations, shall be assessed by the 25 superintendent in accordance with this subsection. Persons regulated 26 under the insurance law shall be assessed by the superintendent for the 27 operating expenses of the department that are solely attributable to 28 regulating persons under the insurance law, which shall include any 29 expenses that were permissible to be assessed in fiscal year two thou- 30 sand nine-two thousand ten, with the assessments allocated pro rata upon 31 all domestic insurers and all licensed United States branches of alien 32 insurers domiciled in this state within the meaning of paragraph four of 33 subsection (b) of section seven thousand four hundred eight of the 34 insurance law, in proportion to the gross direct premiums and other 35 considerations, written or received by them in this state during the 36 calendar year ending December thirty-first immediately preceding the end 37 of the fiscal year for which the assessment is made (less return premi- 38 ums and considerations thereon) for policies or contracts of insurance 39 covering property or risks resident or located in this state the issu- 40 ance of which policies or contracts requires a license from the super- 41 intendent. Persons regulated under the banking law shall be assessed by 42 the superintendent for the operating expenses of the department that are 43 solely attributable to regulating persons under the banking law in such 44 proportions as the superintendent shall deem just and reasonable. 45 Persons regulated under this chapter shall be assessed by the super- 46 intendent for the operating expenses of the department that are solely 47 attributable to regulated persons under this chapter in such proportions 48 as the superintendent shall deem just and reasonable. Operating expenses 49 of the department not covered by the assessments set forth above shall 50 be assessed by the superintendent in such proportions as the superinten- 51 dent shall deem just and reasonable upon all domestic insurers and all 52 licensed United States branches of alien insurers domiciled in thisS. 2008--A 124 A. 3008--A 1 state within the meaning of paragraph four of subsection (b) of section 2 seven thousand four hundred eight of the insurance law, and upon any 3 regulated person under this chapter and the banking law, other than 4 mortgage loan originators, except as otherwise provided by sections one 5 hundred fifty-one and two hundred twenty-eight of the workers' compen- 6 sation law and by section sixty of the volunteer firefighters' benefit 7 law. The provisions of this subsection shall not be applicable to a bank 8 holding company, as that term is defined in article three-A of the bank- 9 ing law. Persons regulated under the banking law will not be assessed 10 for expenses that the superintendent deems to benefit solely persons 11 regulated under the insurance law, and persons regulated under the 12 insurance law will not be assessed for expenses that the superintendent 13 deems to benefit solely persons regulated under the banking law. 14 (g) The expenses of every examination of the affairs of any regulated 15 person subject to this chapter, shall be borne and paid by the regulated 16 person so examined, but the superintendent, with the approval of the 17 comptroller, may, in the superintendent's discretion for good cause 18 shown, remit such charges. 19 § 2. This act shall take effect January 1, 2018. 20 SUBPART B 21 Section 1. Legislative findings. In order to provide an appropriate 22 scheme of distribution of assets of all insolvent insurers, the legisla- 23 ture finds that it is in the best interest of the people of this state 24 to amend statutes regarding the priority of distribution under Article 25 74 of the Insurance Law. 26 § 2. Paragraph 1 of subsection (a) of section 7434 of the insurance 27 law, as amended by chapter 134 of the laws of 1999, is amended to read 28 as follows: 29 (1) Upon the recommendation of the superintendent, as receiver, and 30 under the direction of the court, distribution payments shall be made in 31 a manner that will assure the proper recognition of priorities and a 32 reasonable balance between the expeditious completion of the [liqui-33dation] proceeding subject to this article and the protection of unliq- 34 uidated and undetermined claims. The priority of distribution of claims 35 from [an] all insolvent [property/casualty insurer] insurers in any 36 proceeding subject to this article, unless otherwise specified, shall be 37 in accordance with the order in which each class of claims is set forth 38 in this paragraph and as provided in this paragraph. Every claim in each 39 class shall be paid in full or adequate funds retained for such payment 40 before the members of the next class receive any payment. No subclasses 41 shall be established within any class. No claim by a shareholder, poli- 42 cyholder, contract holder or other creditor shall be permitted to 43 circumvent the priority classes through the use of equitable remedies. 44 The order of distribution of claims shall be: 45 (i) Class one. Claims with respect to the actual and necessary costs 46 and expenses of administration, incurred by the liquidator, rehabilita- 47 tor or conservator under this article. 48 (ii) Class two. All claims under policies or contracts, including such 49 claims of the federal or any state or local government for losses 50 incurred, third party claims, claims for unearned premiums, and all 51 claims of a security fund, guaranty association or the equivalent except 52 claims arising under reinsurance contracts. 53 (iii) Class three. Claims of the federal government except those under 54 class two above.S. 2008--A 125 A. 3008--A 1 (iv) Class four. Claims for wages owing to employees of an insurer 2 against whom a proceeding under this article is commenced for services 3 rendered within one year before commencement of the proceeding, not 4 exceeding one thousand two hundred dollars to each employee, and claims 5 for unemployment insurance contributions required by article eighteen of 6 the labor law. Such priority shall be in lieu of any other similar 7 priority which may be authorized by law. 8 (v) Class five. Claims of state and local governments except those 9 under class two above. 10 (vi) Class six. Claims of general creditors including[, but not limit-11ed to,] claims arising under reinsurance contracts. 12 (vii) Class seven. Claims filed late or any other claims other than 13 claims under class eight or class nine below. 14 (viii) Class eight. Claims for advanced or borrowed funds made pursu- 15 ant to section one thousand three hundred seven of this chapter. 16 (ix) Class nine. Claims of shareholders or other owners in their 17 capacity as shareholders. 18 § 3. Section 7435 of the insurance law, as added by chapter 802 of the 19 laws of 1985, paragraph 7 of subsection (a) as amended by chapter 300 of 20 the laws of 1996, is amended to read as follows: 21 § 7435. Distribution for life insurers. (a) Upon the recommendation of 22 the superintendent, as receiver, and under the direction of the court, 23 distribution payments shall be made in a manner that will assure the 24 proper recognition of priorities and a reasonable balance between the 25 expeditious completion of the proceeding subject to this article and the 26 protection of unliquidated and undetermined claims. The priority of 27 distribution of claims from the estate of [a] an insolvent life insur- 28 ance company in any proceeding subject to this article shall be in 29 accordance with the order in which each class of claims is [herein] set 30 forth in this section and as provided in this section. Every claim in 31 each class shall[, subject to such limitations as may be prescribed by32law and do not directly conflict with the express provisions of this33section,] be paid in full or adequate funds retained for such payment 34 before the members of the next class receive any payment. No subclasses 35 shall be established within any class. No claim by a shareholder, poli- 36 cyholder, annuitant, or other creditor shall be permitted to circumvent 37 the priority classes through the use of equitable remedies. The order of 38 distribution of claims shall be: 39 (1) Class one. Claims with respect to the actual and necessary costs 40 and expenses of administration, incurred by the liquidator, rehabilita- 41 tor, conservator or ancillary rehabilitator under this article, or by 42 The Life Insurance Guaranty Corporation or The Life Insurance Company 43 Guaranty Corporation of New York, and claims described in subsection (d) 44 of section seven thousand seven hundred thirteen of this chapter. 45 (2) Class two. [Debts due to employees for services performed to the46extent that they do not exceed one thousand two hundred dollars and47represent payment for services performed within one year before the48commencement of a proceeding under this article. Such priority shall be49in lieu of any other similar priority which may be authorized by law as50to wages or compensation of employees] All claims under insurance poli- 51 cies, including such claims of the federal or any state or local govern- 52 ment, annuity contracts, and funding agreements, and all claims of the 53 The Life Insurance Company Guaranty Corporation of New York or any other 54 guaranty corporation or association of this state or another jurisdic- 55 tion, other than claims provided for in paragraph one of this subsection 56 and claims for interest.S. 2008--A 126 A. 3008--A 1 (3) Class three. [All claims for payment for goods furnished or2services rendered to the impaired or insolvent insurer in the ordinary3course of business within ninety days prior to the date on which the4insurer was determined to be impaired or insolvent, whichever is appli-5cable] Claims of the federal government except claims provided for in 6 paragraph two of this subsection. 7 (4) Class four. [All claims under insurance policies, annuity8contracts and funding agreements, and all claims of The Life Insurance9Company Guaranty Corporation of New York or any other guaranty corpo-10ration or association of this state or another jurisdiction, other than11(i) claims provided for in paragraph one of this subsection, and (ii)12claims for interest] Debts due to employees for services performed to 13 the extent that they do not exceed one thousand two hundred dollars and 14 represent payment for services performed within one year before the 15 commencement of a proceeding under this article. Such priority shall be 16 in lieu of any other similar priority that may be authorized by law as 17 to wages or compensation of employees. 18 (5) Class five. [Claims of the federal or any state or local govern-19ment. Claims, including those of any governmental body for a penalty or20forfeiture, shall be allowed to this class only to the extent of the21pecuniary loss sustained from the act, transaction or proceeding out of22which the penalty or forfeiture arose, with reasonable and actual costs23occasioned thereby. The remainder of such claims shall be postponed to24the class of claims under paragraph eight of this subsection] All claims 25 for payment for goods furnished or services rendered to the impaired or 26 insolvent insurer in the ordinary course of business within ninety days 27 prior to the date on which the insurer was determined to be impaired or 28 insolvent, whichever is applicable. 29 (6) Class six. [Claims of general creditors and any other claims other30than claims under paragraphs seven and eight of this subsection] Claims 31 of any state or local government other than claims provided for under 32 paragraph two of this subsection. Claims, including those of any govern- 33 mental body for a penalty or forfeiture, shall be allowed to this class 34 only to the extent of pecuniary loss sustained from the act, trans- 35 action, or proceeding out of which the penalty or forfeiture arose, with 36 reasonable and actual costs occasioned thereby. The remainder of such 37 claims shall be postponed to the class of claims under paragraph nine of 38 this subsection. 39 (7) Class seven. [Surplus, capital or contribution notes, or similar40obligations] Claims of general creditors and any other claims other than 41 claims under paragraphs eight and nine of this subsection. 42 (8) Class eight. [The claims of (i) policyholders, other than claims43under paragraph four of this subsection, and (ii) shareholders or other44owners] Surplus, capital, or contribution notes, or similar obligations. 45 (9) Class nine. The claims of policyholders or annuitants, other than 46 claims under paragraph two of this subsection, and shareholders or other 47 owners. 48 (b) Every claim under a separate account agreement providing, in 49 effect, that the assets in the separate account shall not be chargeable 50 with liabilities arising out of any other business of the insurer shall 51 be satisfied out of the assets in the separate account equal to the 52 reserves maintained in such account for such agreement and, to the 53 extent, if any, not fully discharged thereby, shall be treated as a 54 class four claim against the estate of the life insurance company. 55 (c) For purposes of this section:S. 2008--A 127 A. 3008--A 1 (1) "The estate of the life insurance company" shall mean the general 2 assets of such company less any assets held in separate accounts that, 3 pursuant to section four thousand two hundred forty of this chapter, are 4 not chargeable with liabilities arising out of any other business of the 5 insurer. 6 (2) "Insurance policies, annuity contracts and funding agreements" 7 shall mean all policies and contracts of any of the kinds of insurance 8 specified in paragraph one, two or three of subsection (a) of section 9 one thousand one hundred thirteen of this chapter and all funding agree- 10 ments described in section three thousand two hundred twenty-two of this 11 chapter, including all separate account agreements, except that separate 12 account agreements referred to in subsection (b) of this section shall 13 be included only to the extent referred to therein. 14 (3) "Separate account agreement or agreements" shall mean any agree- 15 ment or agreements for separate accounts referred to in section four 16 thousand two hundred forty of this chapter. 17 § 4. This act shall take effect immediately. 18 SUBPART C 19 Section 1. Section 1104 of the insurance law, the section heading as 20 amended and subsections (c) and (d) as added by chapter 235 of the laws 21 of 1989, the opening paragraph of subsection (c) as amended by chapter 22 598 of the laws of 2000, is amended to read as follows: 23 § 1104. Revocation or suspension of license; restriction of license 24 authority or limitation on premiums written. (a) The superintendent may 25 revoke any license, certificate of authority, or registration issued to 26 any foreign or alien insurer to do an insurance business in this state 27 if, after notice to and hearing, [he] the superintendent finds that such 28 insurer has failed to comply with any requirement imposed upon it by the 29 provisions of this chapter and if in [his] the superintendent's judgment 30 such revocation is reasonably necessary to protect the interests of the 31 people of this state. The superintendent may, in his or her discretion, 32 reinstate any such license, certificate of authority, or registration if 33 [he] the superintendent finds that a ground for such revocation no long- 34 er exists. 35 (b) The superintendent shall revoke the certificate of authority of 36 any corporation or agent convicted of violating section two thousand six 37 hundred three of this chapter. 38 (c) [The] (1) Notwithstanding any other provision of this chapter, the 39 superintendent may [suspend the license, restrict the license authority,40or limit the amount of premiums written in this state of any accident41and health insurance company, property/casualty insurance company,42co-operative property/casualty insurance company, title insurance compa-43ny, mortgage guaranty insurance company, reciprocal insurer, Lloyds44underwriters or nonprofit property/casualty insurance company] take one 45 or more of the actions specified in subparagraph (B) of paragraph four 46 of this subsection against an insurer, except those insurers subject to 47 the provisions of subsection (c) of section two thousand three hundred 48 forty-three of this chapter, if after a hearing on a record, unless 49 waived by the affected insurer, the superintendent determines that such 50 insurer's surplus to policyholders is not adequate in relation to the 51 insurer's outstanding liabilities or to its financial needs or if the 52 superintendent otherwise determines that the continued operation of the 53 insurer might be deemed to be hazardous to the insurer's policyholders, 54 creditors, or to the general public.S. 2008--A 128 A. 3008--A 1 (2) All matters pertaining to a proceeding or determination pursuant 2 to this subsection shall be confidential and not subject to subpoena or 3 public inspection under article six of the public officers law or any 4 other statute, except to the extent that the superintendent finds 5 release of information necessary to protect the public. The hearing 6 shall be initiated within twenty days after written notice to the insur- 7 er. Any determination pursuant to this subsection shall contain findings 8 specifying the factors deemed significant in regard to the particular 9 insurer, and shall set forth the reasons supporting the suspension, 10 restriction or limitation ordered by the superintendent. 11 (3) The superintendent may consider the following factors [shall be12considered by the superintendent] in making [such] a determination as to 13 whether an insurer's surplus to policyholders is adequate in relation to 14 the insurer's outstanding liabilities or to its financial needs: 15 [(1)] (A) the size of the insurer as measured by its admitted assets, 16 capital and surplus to policyholders, reserves, premium writings, insur- 17 ance in force and other appropriate criteria, with such surplus to poli- 18 cyholders for foreign insurers adjusted in accordance with section one 19 thousand four hundred thirteen of this chapter; 20 [(2)] (B) the extent to which the insurer's business is diversified 21 among the several kinds of insurance; 22 [(3)] (C) the number and size of risks insured in each kind of insur- 23 ance and the insurer's loss experience in regard to such risks; 24 [(4)] (D) the extent of geographical dispersion of the insurer's 25 risks; 26 [(5)] (E) the nature and extent of the insurer's reinsurance program; 27 [(6)] (F) the quality, diversification and liquidity of the insurer's 28 investment portfolio; 29 [(7)] (G) the recent past and projected future trends in regard to the 30 insurer's loss experience and in the size of the insurer's surplus to 31 policyholders; 32 [(8)] (H) the surplus to policyholders maintained by other comparable 33 insurers; 34 [(9)] (I) the adequacy of the insurer's reserves; and 35 [(10)] (J) the quality and liquidity of investments in subsidiaries 36 made pursuant to this chapter. 37 (4)(A) The superintendent may consider the following standards, either 38 singly or a combination of two or more, to determine whether the contin- 39 ued operation of any insurer might be deemed to be hazardous to its 40 policyholders, creditors, or to the general public: 41 (i) adverse findings reported in financial condition and market 42 conduct examination reports, audit reports, actuarial opinions, reports, 43 or summaries, or other reports; 44 (ii) the national association of insurance commissioners insurance 45 regulatory information system and its other financial analysis solvency 46 tools and reports; 47 (iii) whether the insurer has made adequate provision, according to 48 presently accepted actuarial standards of practice, for the anticipated 49 cash flows required by the contractual obligations and related expenses 50 of the insurer, when considered in light of the assets held by the 51 insurer with respect to such reserves and related actuarial items, 52 including the investment earnings on such assets, and the considerations 53 anticipated to be received and retained under such policies and 54 contracts; 55 (iv) the ability of an assuming reinsurer to perform and whether the 56 insurer's reinsurance program provides sufficient protection for theS. 2008--A 129 A. 3008--A 1 insurer's remaining surplus after taking into account the insurer's cash 2 flow and the classes of business written as well as the financial condi- 3 tion of the assuming reinsurer; 4 (v) whether the insurer's operating loss in the last twelve-month 5 period or any shorter period of time, including net capital gain or 6 loss, change in non-admitted assets, and cash dividends paid to share- 7 holders, is greater than fifty percent of the insurer's remaining 8 surplus to policyholders in excess of the minimum required; 9 (vi) whether the insurer's operating loss in the last twelve-month 10 period or any shorter period of time, excluding net capital gains, is 11 greater than twenty percent of the insurer's remaining surplus to poli- 12 cyholders in excess of the minimum required; 13 (vii) whether a reinsurer, an obligor, any entity in the insurer's 14 holding company system, as defined in paragraph six of subsection (a) of 15 section one thousand five hundred one of this chapter, or any subsidiary 16 of an insurer, is insolvent, threatened with insolvency, or delinquent 17 in payment of its monetary or other obligations, and which in the opin- 18 ion of the superintendent may affect the solvency of the insurer; 19 (viii) contingent liabilities, pledges, or guarantees that either 20 individually or collectively involve a total amount that in the super- 21 intendent's opinion may affect the insurer's solvency; 22 (ix) whether any person who controls an insurer, as defined in para- 23 graph two of subsection (a) of section one thousand five hundred one of 24 this chapter, is delinquent in the transmitting to, or payment of, net 25 premiums to the insurer; 26 (x) the age and collectability of receivables; 27 (xi) whether the management of an insurer, including officers, direc- 28 tors, or any other person who directly or indirectly controls the opera- 29 tion of the insurer, fails to possess and demonstrate the competence, 30 fitness, and reputation deemed necessary to serve the insurer in such 31 position; 32 (xii) whether the insurer's management has failed to respond to an 33 inquiry of the superintendent relative to the insurer's condition or has 34 furnished false and misleading information concerning such an inquiry; 35 (xiii) whether the insurer has failed to meet financial filing 36 requirements or filing requirements pursuant to articles fifteen, 37 sixteen, or seventeen of this chapter, or regulations promulgated there- 38 under, in the absence of a reason satisfactory to the superintendent; 39 (xiv) whether the insurer's management either has filed any false or 40 misleading sworn financial statement, or has released false or mislead- 41 ing financial statements to lending institutions or to the general 42 public, or has made a false or misleading entry, or has omitted an entry 43 of material amount in the insurer's books; 44 (xv) whether the insurer has grown so rapidly and to such an extent 45 that it lacks adequate financial and administrative capacity to meet its 46 obligations in a timely manner; 47 (xvi) whether the insurer has experienced or is expected to experience 48 in the foreseeable future cash flow or liquidity problems; 49 (xvii) whether management has established reserves that do not comply 50 with minimum standards established by this chapter or regulations 51 promulgated thereunder, statutory accounting standards, as adopted by 52 the superintendent, sound actuarial principles and standards of prac- 53 tice; 54 (xviii) whether management persistently engages in material under 55 reserving that results in adverse development;S. 2008--A 130 A. 3008--A 1 (xix) whether any transaction with an affiliate, a subsidiary, or a 2 parent for which the insurer receives assets or capital gains, or both, 3 do not provide sufficient value, liquidity, or diversity to assure the 4 insurer's ability to meet its outstanding obligations as they mature; 5 and 6 (xx) any other finding determined by the superintendent to be hazard- 7 ous to the insurer's policyholders, creditors, or to the general public. 8 (B) If the superintendent determines that the insurer's surplus to 9 policyholders is not adequate in relation to the insurer's outstanding 10 liabilities or to its financial needs or if the superintendent otherwise 11 determines that the continued operation of the insurer may be hazardous 12 to its policyholders, creditors, or to the general public, then the 13 superintendent may, upon a determination, suspend the insurer's license, 14 certificate of authority, or registration, restrict the insurer's 15 license, certificate of authority, or registration authority, or issue 16 an order requiring the insurer to do one or more of the following: 17 (i) reduce the total amount of present and potential liability for 18 policy benefits by reinsurance; 19 (ii) reduce, suspend, or limit the volume of business being accepted 20 or renewed, or limit the amount of premiums written in this state; 21 (iii) reduce general insurance and commission expenses by specified 22 methods; 23 (iv) increase the insurer's capital and surplus; 24 (v) suspend or limit the declaration and payment of dividends by an 25 insurer to its stockholders or policyholders; 26 (vi) file reports on a form and in a manner acceptable to the super- 27 intendent concerning the market value of an insurer's assets; 28 (vii) limit or withdraw from certain investments or discontinue 29 certain investment practices to the extent the superintendent deems 30 necessary; 31 (viii) document the adequacy of premium rates in relation to the risks 32 insured; 33 (ix) file, in addition to regular annual statements, interim financial 34 reports on a form and in a manner prescribed by the superintendent, 35 which may include a form adopted by the national association of insur- 36 ance commissioners; 37 (x) correct corporate governance practice deficiencies, and adopt and 38 utilize governance practices acceptable to the superintendent; 39 (xi) provide a business plan to the superintendent in order to contin- 40 ue to transact business in this state; or 41 (xii) notwithstanding any other provision of law, adjust rates for any 42 non-life insurance policy or contract written by the insurer that the 43 superintendent considers necessary to improve the insurer's financial 44 condition. 45 (d) [The superintendent shall identify and review those licensed46property/casualty insurers needing immediate or targeted regulatory47attention, and shall include the number of insurers so identified in the48report required by section three hundred thirty-four of this chapter.49Such report shall also include the name of each licensed50property/casualty insurer placed in formal conservatorship, rehabili-51tation or liquidation during the preceding year. Nothing herein shall be52construed to restrict or diminish any right or power of the superinten-53dent under any other provision of this chapter] For the purposes of this 54 section, "insurer" shall mean any person, firm, association, corpo- 55 ration, or joint-stock company authorized to do an insurance business in 56 this state by a license in force pursuant to the provisions of thisS. 2008--A 131 A. 3008--A 1 chapter or exempted by the provisions of this chapter from such licens- 2 ing, except that, for purposes of this section, the term "insurer" shall 3 not include any health maintenance organization operating pursuant to 4 section one thousand one hundred nine of this chapter or any continuing 5 care retirement community operating pursuant to section one thousand one 6 hundred nineteen of this chapter. 7 § 2. This act shall take effect immediately. 8 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 9 sion, section or subpart of this act shall be adjudged by any court of 10 competent jurisdiction to be invalid, such judgment shall not affect, 11 impair, or invalidate the remainder thereof, but shall be confined in 12 its operation to the clause, sentence, paragraph, subdivision, section 13 or subpart thereof directly involved in the controversy in which such 14 judgment shall have been rendered. It is hereby declared to be the 15 intent of the legislature that this act would have been enacted even if 16 such invalid provisions had not been included herein. 17 § 3. This act shall take effect immediately provided, however, that 18 the applicable effective date of Subparts A through C of this act shall 19 be as specifically set forth in the last section of such Subparts. 20 PART HH 21 Section 1. Paragraph (a) of subdivision 2 of section 179 of the navi- 22 gation law, as amended by section 2 of part X of chapter 58 of the laws 23 of 2015, is amended to read as follows: 24 (a) An account which shall be credited with all license fees and 25 penalties collected pursuant to paragraph (b) of subdivision one and 26 paragraph (a) of subdivision four of section one hundred seventy-four of 27 this article except as provided in section one hundred seventy-nine-a of 28 this article, the portion of the surcharge collected pursuant to para- 29 graph (d) of subdivision four of section one hundred seventy-four of 30 this article, penalties collected pursuant to paragraph (b) of subdivi- 31 sion four of section one hundred seventy-four-a of this article, money 32 collected pursuant to section one hundred eighty-seven of this article, 33 all penalties collected pursuant to section one hundred ninety-two of 34 this article, and registration fees collected pursuant to subdivision 35 two of section 17-1009 of the environmental conservation law. 36 § 2. The navigation law is amended by adding a new section 179-a to 37 read as follows: 38 § 179-a. New York environmental protection and spill remediation 39 account. 1. There is hereby created an account within the miscellaneous 40 capital projects fund, the New York environmental protection and spill 41 remediation account. The New York environmental protection and spill 42 remediation account shall consist of license fees received by the state 43 pursuant to section one hundred seventy-four of this article, in an 44 amount equal to expenditures made from this account. 45 2. These moneys, after appropriation by the legislature, and within 46 the amounts set forth and for the several purposes specified, shall be 47 available to reimburse the department of environmental conservation for 48 expenditures associated with the purposes of costs incurred under this 49 article, including cleanup and removal of petroleum spills, and other 50 capital, investigation, maintenance and remediation costs. 51 3. All payments made from the New York environmental protection and 52 spill remediation account shall be made by the administrator upon 53 certification by the commissioner.S. 2008--A 132 A. 3008--A 1 4. Spending pursuant to this section shall be included in the annual 2 report required by section one hundred ninety-six of this article. 3 § 3. Subdivision 3 of section 176 of the navigation law, as added by 4 chapter 845 of the laws of 1977, is amended to read as follows: 5 3. Any unexplained discharge of petroleum within state jurisdiction or 6 discharge of petroleum occurring in waters beyond state jurisdiction 7 that for any reason penetrates within state jurisdiction shall be 8 removed by or under the direction of the department. Except for those 9 expenses incurred by the party causing such discharge, any expenses 10 incurred in the removal of discharges shall be paid promptly from the 11 New York environmental protection and spill compensation fund pursuant 12 to [section] sections one hundred and eighty-six and one hundred seven- 13 ty-nine-a of this article and any reimbursements due such fund shall be 14 collected in accordance with the provisions of section one hundred and 15 eighty-seven of this article. 16 § 4. This act shall take effect immediately and shall be deemed to 17 have been in full force and effect on and after April 1, 2017. 18 PART II 19 Section 1. This act shall be known and may be cited as the "clean 20 water infrastructure act of 2017". 21 § 2. Article 15 of the environmental conservation law is amended by 22 adding a new title 33 to read as follows: 23 TITLE 33 24 SOURCE WATER PROTECTION PROJECTS 25 Section 15-3301. Definitions. 26 15-3303. Land acquisition projects for source water protection. 27 § 15-3301. Definitions. 28 As used in this title the following terms shall mean: 29 1. "Land acquisition projects" means open space acquisition projects 30 undertaken with willing sellers including, but not limited to, the 31 purchase of conservation easements, undertaken by a municipality, a 32 not-for-profit corporation, or purchase of conservation easements by a 33 soil and water conservation district. 34 2. "Municipality" means the same as such term as defined in section 35 56-0101 of this chapter. 36 3. "Not-for-profit corporation" means a corporation formed pursuant to 37 the not-for-profit corporation law and qualified for tax-exempt status 38 under the federal internal revenue code. 39 4. "Soil and water conservation district" means the same as such term 40 as defined in section five of the soil and water conservation districts 41 law. 42 5. "State assistance payment" means payment of the state share of the 43 cost of projects authorized by this title to preserve, enhance, restore 44 and improve the quality of the state's environment. 45 § 15-3303. Land acquisition projects for source water protection. 46 1. The commissioner is authorized to provide state assistance to muni- 47 cipalities, not-for-profit corporations and soil and water conservation 48 districts to undertake land acquisition projects for source water 49 protection, in cooperation with willing sellers. Projects shall develop, 50 expand or enhance water quality protection, including but not limited to 51 aquifers, watersheds, reservoirs, lakes, rivers and streams. The 52 department shall set forth the state share of land acquisition projects 53 in any request for proposal issued to solicit projects.S. 2008--A 133 A. 3008--A 1 2. Any conservation easement acquired pursuant to this section that 2 encumbers lands in a county designated state certified agricultural 3 district shall allow agricultural activity on such lands provided that 4 the activity complies with all applicable technical standards estab- 5 lished by the natural resources conservation service. 6 3. In evaluating projects pursuant to this section, the department 7 shall give priority first to projects which protect or recharge drinking 8 water sources and watersheds including riparian buffers and second to 9 projects which improve resilience. 10 4. No state assistance may be provided pursuant to this section to 11 fund any project committed to in any agreement pursuant to a filtration 12 avoidance determination. 13 5. The commissioner may enter into a contract with a municipality or a 14 not-for-profit corporation for the undertaking of a land acquisition 15 project. Costs under such contracts are subject to final computation by 16 the department upon completion of the project, and shall not exceed the 17 maximum eligible cost set forth in any such contract. 18 6. The cost of a source water protection land acquisition project may 19 include the cost of preparation of a plan for the preservation of the 20 real property interest in land acquired pursuant to this section except 21 where such considerations have already been undertaken as part of any 22 existing plan applicable to the newly acquired real property interest in 23 land. 24 7. The soil and water conservation committee in consultation with the 25 commissioner of agriculture and markets is authorized to provide state 26 assistance payments to county soil and water conservation districts for 27 land acquisition projects for source water protection consistent with 28 section eleven-b of the soil and water conservation districts law. 29 Projects shall develop, expand or enhance water quality protection, 30 including but not limited to aquifers, watersheds, reservoirs, lakes, 31 rivers and streams. Such committee shall give priority to projects 32 which establish buffers from waters which serves as or are tributaries 33 to drinking water supplies for such projects using state assistance 34 pursuant to this section. 35 8. a. Real property acquired, developed, improved, restored or reha- 36 bilitated by or through a municipality with funds made available pursu- 37 ant to this title shall not be sold, leased, exchanged, donated or 38 otherwise disposed of or used for other than water quality protection 39 purposes without approval from the department, which shall provide for 40 the substitution of other lands of equal environmental value and fair 41 market value and reasonably equivalent usefulness and location to those 42 to be discontinued, sold or disposed of, and such other requirements as 43 shall be approved by the commissioner; provided, however, that such real 44 property may be sold, leased, exchanged, donated or otherwise disposed 45 of to the state, another municipality or a not-for-profit for the same 46 purposes. 47 b. Real property acquired by a not-for-profit organization with funds 48 made available pursuant to this title shall not be sold, leased, 49 exchanged, donated or otherwise disposed of, except to a municipality or 50 the state for the same purposes, without the approval of the department. 51 9. If the state acquires a real property interest in land purchased by 52 a municipality or not-for-profit with funds made available pursuant to 53 this title, the state shall pay the fair market value of such interest 54 less the amount of funding provided by the state pursuant to this 55 section.S. 2008--A 134 A. 3008--A 1 § 3. The public health law is amended by adding a new section 1113 to 2 read as follows: 3 § 1113. Lead service line replacement grant program. Notwithstanding 4 section one hundred sixty-three of the state finance law or any incon- 5 sistent provision of law to the contrary, and within amounts appropri- 6 ated therefor, the department shall award grants to municipalities with- 7 out a formal competitive process, for purposes of replacing lead service 8 lines used to supply drinking water. When determining which munici- 9 palities shall receive awards and the amount of such awards, the depart- 10 ment shall consider for each municipality the cost of replacing lead 11 service lines and the number of persons who receive drinking water from 12 such service lines, and shall give priority to those municipalities with 13 low-income communities, according to a methodology as shall be deter- 14 mined by the department. 15 § 4. Article 27 of the environmental conservation law is amended by 16 adding a new title 12 to read as follows: 17 TITLE 12 18 CLEANUP AND ABATEMENT OF CERTAIN SOLID WASTE SITE AND DRINKING WATER 19 CONTAMINATION 20 Section 27-1201. Definitions. 21 27-1203. Mitigation and cleanup of solid waste sites. 22 27-1205. Mitigation of contaminants in drinking water. 23 27-1207. Use and reporting of solid waste and drinking water 24 response account. 25 27-1209. Rules and regulations. 26 § 27-1201. Definitions. 27 When used in this title: 28 1. "Mitigation and cleanup" means the investigation, sampling, manage- 29 ment, removal, remediation or restoration of a solid waste site and all 30 other actions required to restore or protect drinking water supplies, 31 groundwater, or other environmental media and restoration of the site to 32 a condition that it is no longer causing or contributing to pollution of 33 groundwater, water supplies or the environment. 34 2. "Solid waste site" means a disposal facility as defined in regu- 35 lations where solid waste has been improperly disposed as determined by 36 the department or a court of competent jurisdiction, or an active or 37 inactive solid waste management facility as defined in regulations where 38 an impact to drinking water supplies, groundwater contamination or other 39 environmental contamination is known or suspected. Solid waste site 40 shall not include a site subject to investigation or remediation pursu- 41 ant to title thirteen or fourteen of this article. 42 3. "Solid waste and drinking water response account" means the account 43 established pursuant to subdivision one of section ninety-seven-b of the 44 state finance law. 45 § 27-1203. Mitigation and cleanup of solid waste sites. 46 1. The solid waste site cleanup priorities in this state are: 47 a. first, to mitigate and cleanup any solid waste site causing or 48 contributing to impairments of drinking water quality; and 49 b. second, to mitigate and cleanup solid waste sites which are causing 50 or contributing to other environmental contamination which may impact 51 public health. 52 2. The owner or operator of a solid waste site shall, at the depart- 53 ment's written request, submit to and cooperate with any and all remedi- 54 al measures deemed necessary by the department for the mitigation and 55 cleanup of solid waste. The department may implement all necessary meas-S. 2008--A 135 A. 3008--A 1 ures to mitigate and cleanup the solid waste site after making all 2 reasonable efforts to identify and compel the owner or operator to coop- 3 erate with the department. The department is not required to commence a 4 hearing or issue an order prior to using moneys from the solid waste and 5 drinking water response account. 6 3. All necessary and reasonable expenses of mitigation and cleanup of 7 a solid waste site shall be paid by the person or persons who owned, 8 operated or maintained the solid waste site except as provided in subdi- 9 vision four of this section, or from the solid waste and drinking water 10 response account and shall be a debt recoverable by the state from all 11 persons who owned, operated or maintained the solid waste site, and a 12 lien may be imposed upon real property pursuant to subdivision sixteen 13 of section ninety-seven-b of the state finance law, and a charge may be 14 placed on the premises upon which the solid waste site is maintained and 15 upon any real or personal property, equipment, vehicles, and inventory 16 controlled by such person or persons. Moneys recovered shall be paid to 17 the solid waste and drinking water response account. 18 4. a. The department shall make all reasonable efforts to recover the 19 full amount of any funds expended from the solid waste and drinking 20 water response account for mitigation and cleanup through litigation or 21 cooperative agreements. Any and all moneys recovered, repaid or reim- 22 bursed pursuant to this section shall be deposited with the comptroller 23 and credited to such fund. 24 b. When a municipality develops and implements a plan to investigate, 25 mitigate and cleanup a solid waste site, as approved by the department, 26 for a site which is owned or has been operated by such municipality or 27 when the department, pursuant to an agreement with a municipality, 28 develops and implements such a plan, the commissioner shall, in the name 29 of the state, agree in such agreement to provide from the solid waste 30 and drinking water response account, within the limitations of appropri- 31 ations therefor, seventy-five percent of the eligible design and 32 construction costs of such program which are not recovered from or reim- 33 bursed or paid by a responsible party or the federal government. 34 5. The department shall have the authority to enter all solid waste 35 sites for the purpose of investigation, mitigation and cleanup. 36 § 27-1205. Mitigation of contaminants in drinking water. 37 1. Whenever the commissioner of health has required a public water 38 system to take action to reduce exposure to contaminants pursuant to 39 section eleven hundred twelve of the public health law, or at any time 40 upon the request of the commissioner of health, the department may 41 undertake all reasonable and necessary measures to ensure that safe 42 drinking water is expeditiously made available to all people in any area 43 of the state in which contamination is known to be present. Such area 44 shall include, at a minimum, all properties served by the water system 45 and any land and any surface or underground water sources identified by 46 the department or department of health as causing or contributing to the 47 contamination. The department's measures may include the installation 48 of treatment systems, including but not limited to installation of 49 onsite water supplies, or the provision of alternative water supply 50 sources to ensure that water meets applicable maximum contaminant levels 51 or other threshold concentrations set by the department of health. 52 2. If the department, in consultation with the department of health, 53 is able to identify a source of contamination which caused or contrib- 54 uted to contamination, the department shall require the owner or opera- 55 tor of the source of contamination to investigate, develop and implement 56 a plan to remediate the source of contamination.S. 2008--A 136 A. 3008--A 1 3. The department shall make all reasonable efforts to recover the 2 full amount of any funds expended from the solid waste and drinking 3 water response account for a drinking water response through litigation 4 or cooperative agreements. Any and all moneys recovered, repaid or 5 reimbursed pursuant to this section shall be deposited with the comp- 6 troller and credited to such account. 7 a. When a municipality develops and implements a plan to respond to 8 drinking water contamination, determined pursuant to subdivision one of 9 this section, and the plan is approved by the department, for a site 10 which is owned or has been operated by such municipality or when the 11 department, pursuant to an agreement with a municipality, develops and 12 implements such a plan, the commissioner shall, in the name of the 13 state, agree in such agreement to provide from the solid waste and 14 drinking water response account, within the limitations of appropri- 15 ations therefor, seventy-five percent of the eligible design and 16 construction costs of such program and which are not recovered from or 17 reimbursed or paid by a responsible party or the federal government. 18 § 27-1207. Use and reporting of solid waste and drinking water response 19 account. 20 1. The solid waste and drinking water response account shall be made 21 available to the department for the following purposes: 22 a. enumeration and assessment of solid waste sites; 23 b. investigation and environmental characterization of solid waste 24 sites, including environmental sampling; 25 c. mitigation and cleanup of solid waste sites; 26 d. mitigation of drinking water contamination; 27 e. monitoring of solid waste sites; and 28 f. administration and enforcement of the requirements of this title. 29 2. On or before July first, two thousand nineteen and July first of 30 each succeeding year, the department shall report on the status of the 31 program. 32 § 27-1209. Rules and regulations. 33 The commissioner shall have the power to promulgate rules and regu- 34 lations necessary and appropriate to carry out the purposes of this 35 title. 36 § 5. Subdivisions 1, 2 and 6 and paragraphs (i) and (j) of subdivision 37 3 of section 97-b of the state finance law, subdivision 1 as amended and 38 paragraph (j) of subdivision 3 as added by section 4 of part I of chap- 39 ter 1 of the laws of 2003, subdivision 2 as amended by section 5 of part 40 X of chapter 58 of the laws of 2015, paragraph (i) of subdivision 3 as 41 amended by section 1 of part R of chapter 59 of the laws of 2007, subdi- 42 vision 6 as amended by chapter 38 of the laws of 1985, are amended and a 43 new paragraph (k) is added to subdivision 3 to read as follows: 44 1. There is hereby established in the custody of the state comptroller 45 a nonlapsing revolving fund to be known as the "hazardous waste remedial 46 fund", which shall consist of [a "site investigation and construction47account",] an "industry fee transfer account", an "environmental resto- 48 ration project account", "hazardous waste cleanup account", [and] a 49 "hazardous waste remediation oversight and assistance account" and a 50 "solid waste and drinking water response account". 51 2. Such fund shall consist of all of the following: 52 (a) [moneys appropriated for transfer to the fund's site investigation53and construction account; (b) all fines and other sums accumulated in54the fund prior to April first, nineteen hundred eighty-eight pursuant to55section 71-2725 of the environmental conservation law for deposit in the56fund's site investigation and construction account; (c)] all moneysS. 2008--A 137 A. 3008--A 1 collected or received by the department of taxation and finance pursuant 2 to section 27-0923 of the environmental conservation law for deposit in 3 the fund's industry fee transfer account; [(d)] (b) all moneys paid into 4 the fund pursuant to section 72-0201 of the environmental conservation 5 law which shall be deposited in the fund's industry fee transfer 6 account; [(e)] (c) all moneys paid into the fund pursuant to paragraph 7 (b) of subdivision one of section one hundred eighty-six of the naviga- 8 tion law which shall be deposited in the fund's industry fee transfer 9 account; [(f)] (d) all [monies] moneys recovered under sections 56-0503, 10 56-0505 and 56-0507 of the environmental conservation law into the 11 fund's environmental restoration project account; [(g)] (e) all fees 12 paid into the fund pursuant to section 72-0402 of the environmental 13 conservation law which shall be deposited in the fund's industry fee 14 transfer account; [(h)] (f) payments received for all state costs 15 incurred in negotiating and overseeing the implementation of brownfield 16 site cleanup agreements pursuant to title fourteen of article twenty- 17 seven of the environmental conservation law shall be deposited in the 18 hazardous waste remediation oversight and assistance account; (g) all 19 moneys recovered pursuant to title twelve of article twenty-seven of the 20 environmental conservation law into the fund's solid waste and drinking 21 water response account and [(i)] (h) other moneys credited or trans- 22 ferred thereto from any other fund or source for deposit in the fund's 23 [site investigation and construction] hazardous waste cleanup account. 24 (i) with respect to moneys in the hazardous waste remediation over- 25 sight and assistance account, non-bondable costs associated with hazard- 26 ous waste remediation projects. Such costs shall be limited to agency 27 staff costs associated with the administration of state assistance for 28 brownfield opportunity areas pursuant to section nine hundred seventy-r 29 of the general municipal law, agency staff costs associated with the 30 administration of technical assistance grants pursuant to titles thir- 31 teen and fourteen of article twenty-seven of the environmental conserva- 32 tion law, and costs of the department of environmental conservation 33 related to the geographic information system required by section 3-0315 34 of the environmental conservation law; [and] 35 (j) with respect to moneys in the hazardous waste remediation over- 36 sight and assistance account, technical assistance grants pursuant to 37 titles thirteen and fourteen of article twenty-seven of the environ- 38 mental conservation law[.]; and 39 (k) With respect to moneys in the solid waste and drinking water 40 response account, when allocated, shall be available to the department 41 of environmental conservation to undertake mitigation and cleanup as the 42 department of environmental conservation may determine necessary due to 43 environmental conditions related to a solid waste site pursuant to title 44 twelve of article twenty-seven of the environmental conservation law 45 which indicates that conditions on such property are impairing drinking 46 water quality, ground water quality or creating other environmental 47 contamination and to ensure the provision of safe drinking water in 48 areas determined to have drinking water contamination by the department 49 of health. 50 6. The commissioner of the department of environmental conservation 51 shall make all reasonable efforts to recover the full amount of any 52 funds expended from the fund pursuant to paragraph (a) and paragraph (k) 53 of subdivision three of this section through litigation or cooperative 54 agreements with responsible persons. Any and all moneys recovered or 55 reimbursed pursuant to this section through voluntary agreements orS. 2008--A 138 A. 3008--A 1 court orders shall be deposited with the comptroller and credited to the 2 account of such fund from which such expenditures were made. 3 § 6. Section 97-b of the state finance law is amended by adding a new 4 subdivision 16 to read as follows: 5 16. (a) All costs and damages for which a person is liable to the 6 state of New York under titles twelve and thirteen of article twenty- 7 seven of the environmental conservation law shall constitute a lien in 8 favor of the state upon all real property and rights to such property 9 which: (i) belongs to such person; and (ii) are subject to mitigation or 10 cleanup pursuant to title twelve of article twenty-seven of the environ- 11 mental conservation law or an inactive hazardous waste disposal site 12 remedial program pursuant to title thirteen of article twenty-seven of 13 the environmental conservation law. 14 (b) The lien imposed by this subdivision shall arise at the later of 15 the following: (i) the time costs are first incurred by the state with 16 respect to a response action pursuant to titles twelve and thirteen of 17 article twenty-seven of the environmental conservation law; or (ii) the 18 time that the person referred to in paragraph (a) of this subdivision is 19 provided (by certified or registered mail) written notice of potential 20 liability. Such lien shall continue until the liability for the costs, 21 or a judgment against the person arising out of such liability, is 22 satisfied, becomes unenforceable, is otherwise vacated by court order or 23 is released by the commissioner of environmental conservation where a 24 legally enforceable agreement satisfactory to the commissioner has been 25 executed relating to the cleanup and removal costs and damage costs or 26 reimbursing the hazardous waste remedial fund for cleanup and removal 27 costs and damage costs, or the attachment or enforcement of the lien is 28 determined by the commissioner not to be in the public interest. 29 (c) The lien shall state: (i) that the lienor is the hazardous waste 30 remedial fund; (ii) the name of record owner of the real property on 31 which the lien has attached; (iii) the real property subject to the 32 lien, with a description thereof sufficient for identification; (iv) 33 that the real property described in the notice is or has been subject to 34 mitigation or cleanup pursuant to title twelve of article twenty-seven 35 of the environmental conservation law or an inactive hazardous waste 36 disposal site remedial program pursuant to title thirteen of article 37 twenty-seven of the environmental conservation law and that costs have 38 been incurred by the lienor as a result of such activities; (v) that the 39 owner is potentially liable for costs; and (vi) that a lien has attached 40 to the described real property. 41 (d) The lien imposed by this subdivision shall be subject to the 42 rights of any purchaser entitled to the affirmative defense set forth in 43 subparagraph three of paragraph (a) of subdivision four of section 44 27-1323 of the environmental conservation law, holder of a security 45 interest, or judgment lien creditor whose interest is perfected under 46 New York state law before notice of the lien has been filed pursuant to 47 paragraph (e) of this subdivision. 48 (e) A notice of lien imposed by this subdivision shall be filed pursu- 49 ant to the requirements of section one hundred eighty-one-c of the navi- 50 gation law; provided however, that a copy of the notice of lien is 51 served upon the owner of the real property subject to the lien in 52 accordance with the provisions of section eleven of the lien law. 53 (f) The costs constituting the lien may be recovered in an action in 54 rem in a court of competent jurisdiction. Nothing in this subdivision 55 shall affect the right of the state to bring an action against any 56 person to recover all costs and damages for which such person is liableS. 2008--A 139 A. 3008--A 1 under titles twelve and thirteen of article twenty-seven of the environ- 2 mental conservation law. 3 § 7. The public authorities law is amended by adding a new section 4 1285-s to read as follows: 5 § 1285-s. New York state regional water infrastructure projects. 1. 6 For purposes of this section, "municipality" means any county, city, 7 town, village, district corporation, county or town improvement 8 district, any public benefit corporation or public authority established 9 pursuant to the laws of New York or any agency of New York state which 10 is empowered to construct and operate a waste water or drinking water 11 infrastructure project, or any two or more of the foregoing which are 12 acting jointly in connection with such a project. 13 2. (a) The corporation shall establish, with funds appropriated for 14 such purpose, a New York state regional water infrastructure grants 15 program to provide state assistance to municipalities for waste water 16 and drinking water infrastructure projects that have a regional impact 17 or demonstrated efficiencies. Such regional projects shall benefit or 18 serve multiple municipalities, and may include shared infrastructure, 19 consolidation or interconnection of systems of multiple municipalities, 20 or projects that otherwise achieve efficiencies. 21 (b) A municipality may make an application for a regional water 22 infrastructure grant in a manner, form and timeframe and containing such 23 information as the corporation may require provided however, such 24 requirements shall not include a requirement for prior listing on the 25 intended use plan. 26 3. Moneys for the regional water infrastructure grants program shall 27 be segregated from all other funds of or in the custody of the corpo- 28 ration and shall only be used to provide state assistance to munici- 29 palities in accordance with the provisions of this section and to 30 provide for the administrative and management costs of the program. 31 4. Moneys for the regional water infrastructure grants program may be 32 invested as provided in subdivision six of section twelve hundred eight- 33 y-five-j of this title. 34 5. Contracts for the construction of projects financed with state 35 assistance made available pursuant to this section shall be subject to 36 the requirements of section two hundred twenty of the labor law and 37 shall be considered "state contracts" subject to the requirements and 38 provisions of article fifteen-A of the executive law. 39 § 8. Section 1285-q of the public authorities law, as added by section 40 6 of part I of chapter 1 of the laws of 2003, subdivisions 1 and 3 as 41 amended by section 43 of part BB of chapter 56 of the laws of 2015, is 42 amended to read as follows: 43 § 1285-q. Financing of hazardous waste site remediation and solid 44 waste and drinking water response site projects. In order to effectuate 45 the purposes of this title, the corporation shall have the following 46 additional special powers: 47 1. Subject to chapter fifty-nine of the laws of two thousand, but 48 notwithstanding any other provisions of law to the contrary, in order to 49 assist the corporation in undertaking the administration and the financ- 50 ing of hazardous waste site remediation projects for payment of the 51 state's share of the costs of the remediation of hazardous waste sites 52 and solid waste and drinking water response sites, in accordance with 53 [title] titles twelve and thirteen of article twenty-seven of the envi- 54 ronmental conservation law and section ninety-seven-b of the state 55 finance law, and for payment of state costs associated with the remedi- 56 ation of offsite contamination at significant threat sites as providedS. 2008--A 140 A. 3008--A 1 in section 27-1411 of the environmental conservation law, and beginning 2 in state fiscal year two thousand fifteen - two thousand sixteen for 3 environmental restoration projects pursuant to title five of article 4 fifty-six of the environmental conservation law provided that funding 5 for such projects shall not exceed ten percent of the funding appropri- 6 ated for the purposes of financing hazardous waste site remediation 7 projects, pursuant to [title] titles twelve and thirteen of article 8 twenty-seven of the environmental conservation law in any state fiscal 9 year pursuant to capital appropriations made to the department of envi- 10 ronmental conservation, the director of the division of budget and the 11 corporation are each authorized to enter into one or more service 12 contracts, none of which shall exceed twenty years in duration, upon 13 such terms and conditions as the director and the corporation may agree, 14 so as to annually provide to the corporation in the aggregate, a sum not 15 to exceed the annual debt service payments and related expenses required 16 for any bonds and notes authorized pursuant to section twelve hundred 17 ninety of this title. Any service contract entered into pursuant to this 18 section shall provide that the obligation of the state to fund or to pay 19 the amounts therein provided for shall not constitute a debt of the 20 state within the meaning of any constitutional or statutory provision 21 and shall be deemed executory only to the extent of moneys available for 22 such purposes, subject to annual appropriation by the legislature. Any 23 such service contract or any payments made or to be made thereunder may 24 be assigned and pledged by the corporation as security for its bonds and 25 notes, as authorized pursuant to section twelve hundred ninety of this 26 title. 27 2. The comptroller is hereby authorized to receive from the corpo- 28 ration any portion of bond proceeds paid to provide funds for or reim- 29 burse the state for its costs associated with any hazardous waste site 30 remediation and solid waste and drinking water response projects and to 31 credit such amounts to the capital projects fund or any other appropri- 32 ate fund. 33 3. The maximum amount of bonds that may be issued for the purpose of 34 financing hazardous waste site remediation and solid waste and drinking 35 water response projects and environmental restoration projects author- 36 ized by this section shall not exceed two billion two hundred million 37 dollars and shall not exceed one hundred million dollars for appropri- 38 ations enacted for any state fiscal year, provided that the bonds not 39 issued for such appropriations may be issued pursuant to reappropriation 40 in subsequent fiscal years. No bonds shall be issued for the repayment 41 of any new appropriation enacted after March thirty-first, two thousand 42 twenty-six for hazardous waste site remediation projects authorized by 43 this section. Amounts authorized to be issued by this section shall be 44 exclusive of bonds issued to fund any debt service reserve funds, pay 45 costs of issuance of such bonds, and bonds or notes issued to refund or 46 otherwise repay bonds or notes previously issued. Such bonds and notes 47 of the corporation shall not be a debt of the state, and the state shall 48 not be liable thereon, nor shall they be payable out of any funds other 49 than those appropriated by this state to the corporation for debt 50 service and related expenses pursuant to any service contracts executed 51 pursuant to subdivision one of this section, and such bonds and notes 52 shall contain on the face thereof a statement to such effect. 53 § 9. Subdivision 9 of section 97-b of the state finance law is 54 REPEALED.S. 2008--A 141 A. 3008--A 1 § 10. Subdivision 4 of section 52-0303 of the environmental conserva- 2 tion law, as added by chapter 512 of the laws of 1986, is amended to 3 read as follows: 4 4. A provision that in the event that any federal payments and respon- 5 sible party payments become available which were not included in the 6 calculation of the state share pursuant to subdivision two of this 7 section, the amount of the state share shall be recalculated accordingly 8 and the municipality shall pay to the state for deposit in the [design9and construction] hazardous waste cleanup account of the hazardous waste 10 remedial fund established under section ninety-seven-b of the state 11 finance law the amount by which the state payment actually made exceeds 12 the recalculated state share. 13 § 11. The opening paragraph, and paragraphs i and j of subdivision 4 14 of section 27-1305 of the environmental conservation law, as amended by 15 section 3 of part E of chapter 1 of the laws of 2003, are amended to 16 read as follows: 17 On or before July first, nineteen hundred eighty-six and July first of 18 each succeeding year, the department shall prepare a status report on 19 the implementation of the plan, and an update of the policies, program 20 objectives, methods and strategies as outlined in the plan which guide 21 the overall inactive hazardous waste site remediation program and solid 22 waste site and drinking water response mitigation and cleanup programs. 23 Such status report shall reflect information available to the department 24 as of March thirty-first of each year, and shall include an accounting 25 of all [monies] moneys expended or encumbered from the environmental 26 quality bond act of nineteen hundred eighty-six or the hazardous waste 27 remedial fund during the preceding fiscal year, such accounting to sepa- 28 rately list: 29 i. [monies] moneys expended or encumbered in stand-by contracts 30 entered into pursuant to section 3-0309 of this chapter and the purposes 31 for which these stand-by contracts were entered into; [and] 32 j. moneys expended or encumbered pursuant to title twelve of this 33 article; and 34 k. an accounting of payments received and payments obligated to be 35 received pursuant to this title and title twelve of this article, and a 36 report of the department's attempts to secure such obligations. 37 § 12. Subparagraph (ii) of paragraph b of subdivision 3 of section 38 27-1313 of the environmental conservation law is REPEALED. 39 § 13. Paragraph b of subdivision 1 and paragraphs b and f of subdivi- 40 sion 5 of section 27-1313 of the environmental conservation law, para- 41 graph b of subdivision 1 as added by section 5 of part E of chapter 1 of 42 the laws of 2003, paragraph b as amended by and paragraph f of subdivi- 43 sion 5 as added by chapter 857 of the laws of 1982, are amended and a 44 new subdivision 11 is added to read as follows: 45 b. The department shall have the authority to require, and may under- 46 take directly, the development and implementation of a department-ap- 47 proved inactive hazardous waste disposal site remedial program, in 48 accordance with section ninety-seven-b of the state finance law. 49 b. In the event that the commissioner has found that hazardous wastes 50 at a site constitute a significant threat to the environment, but after 51 a reasonable attempt to determine who may be responsible is either 52 unable to determine who may be responsible, [or] is unable to locate a 53 person who may be responsible, or is unable after making all reasonable 54 effort to secure voluntary agreement to pay the costs of necessary reme- 55 dial actions from owners or operators or other responsible persons, the 56 department may develop and implement an inactive hazardous wasteS. 2008--A 142 A. 3008--A 1 disposal site remedial program for such site. The commissioner shall 2 make every effort, in an action brought before a court of appropriate 3 jurisdiction or in accordance with the requirements for notice, hearing 4 and review provided for in this title, to secure appropriate relief from 5 any person subsequently identified or located who is responsible for the 6 disposal of hazardous waste at such site, including, but not limited to, 7 development and implementation of an inactive hazardous waste disposal 8 site remedial program, payment of the cost of such a program, recovery 9 of any reasonable expenses incurred by the state, money damages and 10 penalties. 11 f. The commissioner shall make every effort, in an action brought 12 before a court of appropriate jurisdiction or in accordance with the 13 requirements for notice, hearing and review provided for in this title 14 to secure appropriate relief from the owner or operator of such site 15 and/or any person responsible for the disposal of hazardous wastes at 16 such site pursuant to applicable principles of statutory or common law 17 liability, including, but not limited to, development and implementation 18 of an inactive hazardous waste disposal site remedial program, payment 19 of the cost of such program, recovery of any reasonable expenses 20 incurred by the state, money damages and penalties. 21 11. A remedial decision by the state or the department or a response 22 action taken by the department or ordered by the department under this 23 section shall not constitute a final decision or order until the depart- 24 ment files an action to enforce such decision or order or to collect a 25 penalty for violation of such order or to recover its response costs. 26 § 14. The section heading and subdivision 1 of section 27-1316 of the 27 environmental conservation law, as added by section 8 of part E of chap- 28 ter 1 of the laws of 2003, are amended to read as follows: 29 [Citizen technical] Technical assistance grants. 30 1. The commissioner is authorized to provide, or order a person acting 31 under order or on consent, to provide grants to any eligible munici- 32 pality or not-for-profit corporation exempt from taxation under section 33 501(c)(3) of the internal revenue code who may be affected by an inac- 34 tive hazardous waste disposal site remedial program. To qualify to 35 receive such assistance, a community group must demonstrate that its 36 membership represents the interests of the community affected by such 37 site, and that members', or in the case of a municipality its residents, 38 health, economic well-being or enjoyment of the environment are poten- 39 tially affected by such site. An eligible municipality shall be a coun- 40 ty, city, town, village, or Indian tribe or nation residing within New 41 York state, with a population of ten thousand or less, provided, howev- 42 er, that the department may make a municipality eligible if it deter- 43 mines that a municipality is a hardship community. A municipality shall 44 not be eligible for a grant for any site which is owned or has been 45 operated by such municipality. Such grants shall be known as technical 46 assistance grants and may be used to obtain technical assistance in 47 interpreting information with regard to the nature of the hazard posed 48 by hazardous waste located at or emanating from an inactive hazardous 49 waste disposal site or sites and the development and implementation of 50 an inactive hazardous waste disposal site remedial program or programs. 51 Such grants may also be used: 52 (a) to advise affected residents on any health assessment; and 53 (b) for training funds for the education of interested affected commu- 54 nity members or municipality to enable them to more effectively partic- 55 ipate in the remedy selection process.S. 2008--A 143 A. 3008--A 1 Grants awarded under this section may not be used for the purposes of 2 collecting field sampling data, political activity or lobbying legisla- 3 tive bodies. 4 § 15. Subdivision 1 of section 27-1321 of the environmental conserva- 5 tion law, as amended by section 22 of part G of chapter 58 of the laws 6 of 2012, is amended to read as follows: 7 1. Notwithstanding any other provision of law to the contrary, any 8 person who is, by professional training or experience and attainment, 9 qualified to analyze and interpret matters pertaining to the treatment, 10 storage, disposal, or transport of hazardous materials or hazardous 11 wastes, and who voluntarily and without expectation of monetary compen- 12 sation provides assistance or advice in mitigating the effects of an 13 accidental or threatened discharge of any hazardous materials or hazard- 14 ous wastes, or in preventing, cleaning up, or disposing of any such 15 discharge, shall not be subject to a penalty or to civil liability for 16 damages or injuries alleged to have been sustained by any person or 17 entity by reason of an act or omission in the giving of such assistance 18 or advice. For the purposes of this section, the term "hazardous materi- 19 als" shall have the same meaning as that term is defined in regulations 20 promulgated by the commissioner of transportation pursuant to section 21 fourteen-f of the transportation law, and the term "hazardous wastes" 22 shall mean those wastes identified or listed pursuant to subdivision one 23 of section [27-0903] 27-1301 of this article and any rules and regu- 24 lations promulgated thereunder. 25 § 16. Subdivision 10 of section 71-2702 of the environmental conserva- 26 tion law, as added by chapter 671 of the laws of 1986, is amended to 27 read as follows: 28 10. "Substance hazardous to public health, safety or the environment" 29 means any substance which: 30 (a) is identified or listed as a hazardous waste in regulations 31 promulgated pursuant to section 27-0903 of this chapter and all amend- 32 ments thereto, regardless of whether at the time of release the 33 substance was actually a waste; [or] 34 (b) appears on the list in regulations promulgated pursuant to para- 35 graph (a) of subdivision one of section 37-0103 of this chapter and all 36 amendments thereto[.]; 37 (c) is petroleum; or 38 (d) poses a present or potential hazard to the environment when 39 improperly treated, stored, transported, disposed of, or otherwise 40 managed. 41 § 17. Paragraph a of subdivision 1 of section 71-2725 of the environ- 42 mental conservation law is REPEALED. 43 § 18. Subdivision 4 of section 11-b of the soil and water conservation 44 districts law, as amended by chapter 538 of the laws of 1996, is amended 45 to read as follows: 46 4. Eligible costs that may be funded pursuant to this section are 47 architectural and engineering services, plans and specifications, 48 including watershed based or individual agricultural nonpoint source 49 pollution assessments, consultant and legal services, conservation ease- 50 ments and associated transaction costs specific to title thirty-three of 51 article fifteen of the environmental conservation law and other direct 52 expenses related to project implementation. 53 § 19. If any clause, sentence, paragraph, section or part of this act 54 shall be adjudged by any court of competent jurisdiction to be invalid, 55 such judgment shall not affect, impair or invalidate the remainder ther- 56 eof, but shall be confined in its operation to the clause, sentence,S. 2008--A 144 A. 3008--A 1 paragraph, section or part thereof directly involved in the controversy 2 in which such judgment shall have been rendered. 3 § 20. This act shall take effect immediately. 4 PART JJ 5 Section 1. Paragraph (a) of subdivision 6 of section 92-s of the state 6 finance law, as amended by chapter 432 of the laws of 1997, is amended 7 to read as follows: 8 (a) All moneys heretofore and hereafter deposited in the environmental 9 protection transfer account shall be transferred by the comptroller to 10 the solid waste account, the parks, recreation and historic preservation 11 account, the climate change mitigation and adaptation account or the 12 open space account upon the request of the director of the budget. 13 § 2. Subdivision 5 of section 27-1012 of the environmental conserva- 14 tion law, as amended by section 6 of part F of chapter 58 of the laws of 15 2013, is amended to read as follows: 16 5. All monies collected or received by the department of taxation and 17 finance pursuant to this title shall be deposited to the credit of the 18 comptroller with such responsible banks, banking houses or trust compa- 19 nies as may be designated by the comptroller. Such deposits shall be 20 kept separate and apart from all other moneys in the possession of the 21 comptroller. The comptroller shall require adequate security from all 22 such depositories. Of the total revenue collected, the comptroller shall 23 retain the amount determined by the commissioner of taxation and finance 24 to be necessary for refunds out of which the comptroller must pay any 25 refunds to which a deposit initiator may be entitled. After reserving 26 the amount to pay refunds, the comptroller must, by the tenth day of 27 each month, pay into the state treasury to the credit of the general 28 fund the revenue deposited under this subdivision during the preceding 29 calendar month and remaining to the comptroller's credit on the last day 30 of that preceding month; provided, however, that, beginning April first, 31 two thousand [thirteen] fourteen, and all fiscal years thereafter, 32 [fifteen] twenty-three million dollars plus all funds received from the 33 payments due each fiscal year pursuant to subdivision four of this 34 section in excess of [the amount received from April first, two thousand35twelve through March thirty-first, two thousand thirteen] one hundred 36 twenty-two million two hundred thousand dollars, shall be deposited to 37 the credit of the environmental protection fund established pursuant to 38 section ninety-two-s of the state finance law. 39 § 3. This act shall take effect immediately and shall be deemed to 40 have been in full force and effect on and after April 1, 2016. 41 PART KK 42 Section 1. Approximately 40 percent of the food produced in the United 43 States today goes uneaten. Much of this organic waste is disposed of in 44 solid waste landfills, where its decomposition accounts for over 15 45 percent of our nation's emissions of methane, a potent greenhouse gas. 46 Meanwhile, an estimated 2.8 million New Yorkers are facing hunger and 47 food insecurity. This legislation is designed to address these multiple 48 challenges by: encouraging the prevention of food waste generation by 49 commercial generators and residents; directing the recovery of excess 50 edible food from high-volume commercial food waste generators; and 51 ensuring that a significant portion of inedible food waste from largeS. 2008--A 145 A. 3008--A 1 volume food waste generators is managed in a sustainable manner, and 2 does not end up being sent to landfills or incinerators. 3 § 2. Article 27 of the environmental conservation law is amended by 4 adding a new title 22 to read as follows: 5 TITLE 22 6 FOOD DONATION AND FOOD SCRAPS RECYCLING 7 Section 27-2201. Definitions. 8 27-2203. Designated food scraps generator responsibilities. 9 27-2205. Transporter responsibilities. 10 27-2207. Transfer station or other intermediary responsibil- 11 ities. 12 27-2209. Food scraps disposal prohibition. 13 27-2211. Department responsibilities. 14 27-2213. Regulations. 15 27-2215. Exclusions. 16 27-2217. Preemption and severability. 17 § 27-2201. Definitions. 18 1. "Designated food scraps generator" means a person who generates at 19 a single location an annual average of two tons per week or more of 20 excess food and food scraps, including, but not limited to, supermar- 21 kets, restaurants, higher educational institutions, hotels, food proces- 22 sors, correctional facilities, sports or entertainment venues, hospitals 23 and other health care facilities. For a location with multiple independ- 24 ent food service businesses, such as a mall or college campus, the enti- 25 ty responsible for contracting for solid waste hauling services is 26 responsible for managing excess food and food scraps from the independ- 27 ent businesses. 28 2. "Excess food" means edible food that is not sold or used by its 29 generator. 30 3. "Food scraps" means inedible food, trimmings from the preparation 31 of food, food-soiled paper, and edible food that is not donated. Food 32 scraps shall not include food from residential sources or any food which 33 is subject to a recall or seizure due to the presence of pathogens, 34 including but not limited to: Listeria Monocytogenes, confirmed Clos- 35 tridium Botulinum, E. coli 0157:H7 and all salmonella in ready-to-eat 36 foods. 37 4. "Organics recycler" means a facility that recycles food scraps 38 through use as animal feed or a feed ingredient, rendering, land appli- 39 cation, composting, aerobic digestion, anaerobic digestion, or ethanol 40 production. Animal scraps, food soiled paper, and post-consumer food 41 scraps are prohibited for use as animal feed or as a feed ingredient. 42 The product created from food scraps by a composting or digestion facil- 43 ity, or other treatment system, must be used in a beneficial manner as a 44 soil amendment and shall not be combusted or landfilled. The department 45 may designate other techniques or technologies by regulation, provided 46 they do not include combustion or landfilling. 47 5. "Person" means any individual, business entity, partnership, compa- 48 ny, corporation, not-for-profit corporation, association, governmental 49 entity, public benefit corporation, public authority, firm, organization 50 or any other group of individuals, or any officer or employee or agent 51 thereof. 52 6. "Single location" means contiguous property under common ownership, 53 which may include one or more buildings. 54 § 27-2203. Designated food scraps generator responsibilities. 55 1. No later than January first, two thousand twenty-one:S. 2008--A 146 A. 3008--A 1 (a) all designated food scraps generators shall separate their excess 2 food for donation for human consumption to the maximum extent practica- 3 ble, and in accordance with applicable laws, rules and regulations 4 related to food donation; and 5 (b) except as provided in paragraph (c) of this subdivision, each 6 designated food scraps generator that is within fifty miles of an organ- 7 ics recycler, to the extent that the recycler has capacity to accept a 8 substantial portion or all of the generator's excess food and food 9 scraps as determined by the department on a yearly basis, shall: 10 (i) separate its remaining excess food and food scraps from other 11 solid waste that cannot be effectively processed by the organics recy- 12 cler that will be managing the materials. Whenever practicable, excess 13 food and food scraps should be removed from packaging at the point of 14 generation or be sent to a facility that can remove the packaging from 15 the product; 16 (ii) ensure proper storage for excess food and food scraps collection 17 on site which shall preclude such materials from becoming odorous or 18 attracting vectors; 19 (iii) post instructions and provide training for employees concerning 20 the proper methods to separate and store excess food and food scraps; 21 and 22 (iv) obtain a transporter that will deliver its excess food and food 23 scraps to an organics recycler, either directly or through an interme- 24 diary, self-haul its food scraps to an organics recycler, either direct- 25 ly or through an intermediary, or provide for organics recycling 26 on-site. 27 (c) The provisions of paragraph (b) of this subdivision shall not 28 apply to any designated food scraps generator that has all of its solid 29 waste processed in a mixed solid waste composting or mixed solid waste 30 anaerobic digestion facility. 31 2. All designated food scraps generators shall submit an annual report 32 to the department on or before March first, two thousand twenty-two, and 33 annually thereafter, in an electronic format. The annual report must 34 summarize the amount of excess food donated and the amount of excess 35 food not donated, the amount of food scraps recycled, the organics recy- 36 cler or recyclers and associated transporters used, and any other infor- 37 mation as required by the department. 38 3. A designated food scraps generator may petition the department for 39 a temporary waiver from some or all of the requirements of this title. 40 The petition must include evidence of undue hardship based on the unique 41 circumstances of the generator. A waiver shall be no longer than one 42 year in duration. 43 § 27-2205. Transporter responsibilities. 44 1. Any transporter that collects source-separated excess food and food 45 scraps for recycling from a designated food scraps generator shall: 46 (a) deliver collected excess food and food scraps to a transfer 47 station or other intermediary that will deliver such excess food and 48 food scraps to an organics recycler; or 49 (b) deliver such food scraps directly to an organics recycler. 50 2. Any transporter that collects source-separated excess food and food 51 scraps from a designated food scraps generator shall not deliver those 52 excess food and food scraps to a combustion facility or a landfill nor 53 commingle the material with any other solid waste unless such waste can 54 be processed by an organics recycler. 55 § 27-2207. Transfer station or other intermediary responsibilities.S. 2008--A 147 A. 3008--A 1 Any transfer station or other intermediary that receives source-sepa- 2 rated excess food and food scraps from a designated food scraps genera- 3 tor must ensure that the food scraps are taken to an organics recycler. 4 No transfer station or other intermediary may commingle the material 5 with any other solid waste unless such waste can be processed by an 6 organics recycler. 7 § 27-2209. Food scraps disposal prohibition. 8 Solid waste combustion facilities and landfills shall not accept 9 source-separated excess food and food scraps from designated food scraps 10 generators required to send their excess food not donated and food 11 scraps to an organics recycler as outlined under section 27-2203 of this 12 title, either directly or from an intermediary, after January first, two 13 thousand twenty-one, unless the designated food scraps generator has 14 received a temporary waiver under subdivision three of section 27-2203 15 of this title. 16 § 27-2211. Department responsibilities. 17 1. The department shall, in consultation with industry represen- 18 tatives, publish on its website: (a) the methodology the department will 19 use to determine who is a designated food scrap generator; and (b) a 20 list of all designated food scraps generators, organics recyclers, and 21 all transporters that manage source-separated organics. 22 2. No later than October first, two thousand twenty, the department 23 shall assess the capacity of organic recyclers and notify designated 24 food scraps generators if they are required to comply with the 25 provisions of paragraph (b) of subdivision one of section 27-2203 of 26 this title. 27 3. The department shall develop and make available educational materi- 28 als to assist designated food scraps generators with compliance with 29 this title. The department shall also develop education materials on 30 food waste minimization and encourage municipalities to disseminate 31 these materials both on their municipal websites and in any such future 32 mailings to their residents as they may distribute. 33 § 27-2213. Regulations. 34 The department may promulgate rules and regulations necessary to 35 implement the provisions of this title. At a minimum, the department 36 shall promulgate rules and regulations that set forth how designated 37 food scraps generators shall comply with the provisions of paragraph (a) 38 and subparagraph (i) of paragraph (b) of subdivision one of section 39 27-2203 of this title. 40 § 27-2215. Exclusions. 41 1. This title shall not apply to any designated food scraps generators 42 located in a city with a population of one million or more which has a 43 local law, ordinance or regulation in place which requires the diversion 44 of excess food and food scraps from disposal. 45 2. This title does not apply to elementary and secondary schools. 46 § 27-2217. Preemption and severability. 47 1. Any provision of any local law or ordinance, or any regulation 48 promulgated thereto, governing the recycling of food scraps shall upon 49 the effective date of this title be preempted, except in a city with a 50 population of one million of more. However, local laws or ordinances, 51 or parts thereof, affecting the recycling of food scraps that include 52 generators not covered by this title shall not be preempted. 53 2. The provisions of this title shall be severable and if any portion 54 thereof or the applicability thereof to any person or circumstances is 55 held invalid, the remainder of this title and the application thereof 56 shall not be affected thereby.S. 2008--A 148 A. 3008--A 1 § 3. This act shall take effect immediately. 2 PART LL 3 Section 1. The public authorities law is amended by adding a new 4 section 1005-d to read as follows: 5 § 1005-d. Sharing employees, services and resources; indemnity and 6 defense. 1. For the purposes of this section, the following words and 7 terms shall have the following meanings unless the context indicates 8 another meaning or intent: 9 (a) "Department" means the department of transportation. 10 (b) "Services and assistance" includes but is not limited to engineer- 11 ing services; environmental sampling and testing; facility, property, 12 infrastructure and equipment maintenance; and equipment and materials 13 storage. 14 2. One or more shared services agreements may be executed between the 15 department and the authority, canal corporation, or both of them, only 16 for (a) an emergency situation, (b) extreme weather conditions, and (c) 17 the provision of services and assistance to support the operation and 18 maintenance of the canal system and related infrastructure, as deemed 19 appropriate, including but limited to share employees, services or 20 resources as deemed appropriate including, but not limited to, for the 21 performance of work and activities by the department on the facilities 22 and property under the jurisdiction of the authority or canal corpo- 23 ration, and for the performance of work and activities by the authority 24 or canal corporation on the facilities and property under the jurisdic- 25 tion of the department. Such agreement or any project undertaken pursu- 26 ant to such an agreement shall not be deemed to impair the rights of 27 bondholders and may provide for, but not be limited to, the management, 28 supervision and direction of such employees' performance of such 29 services. All shared employees shall remain employees of their respec- 30 tive employers and all applicable collectively bargained agreements 31 shall remain in effect for the entire length of the shared services 32 agreement. Further, such shared services agreement shall not amend, 33 repeal or replace the terms of any agreement that is collectively nego- 34 tiated between an employer and an employee organization, including an 35 agreement or interest arbitration award made pursuant to article four- 36 teen of the civil service law. 37 3. The authority shall defend any unit, entity, officer or employee of 38 the department, using the forces of the department of law pursuant to 39 subdivision eleven of this section in any action, proceeding, claim, 40 demand or the prosecution of any appeal arising from or occasioned by 41 the acts or omissions to act in the performance of the functions of the 42 authority or canal corporation pursuant to a shared services agreement. 43 4. Defense pursuant to subdivision three of this section shall be 44 conditioned upon the full cooperation of the department. 45 5. The authority shall indemnify and hold harmless any unit, entity, 46 officer or employee of the department in the amount of any judgment 47 obtained against the department or in the amount of any settlement the 48 department enters into with the consent of the authority for any and all 49 claims, damages or liabilities arising from or occasioned by the acts or 50 omissions to act of the authority or canal corporation pursuant to a 51 shared services agreement; provided, however, that the act or omission 52 from which such judgment or settlement arose occurred while the authori- 53 ty or canal corporation was acting within the scope of its functions 54 pursuant to a shared services agreement. No such settlement of any suchS. 2008--A 149 A. 3008--A 1 action, proceeding, claim or demand shall be made without the approval 2 of the authority's board of trustees or its designee. 3 6. Any claim or proceeding commenced against any unit, entity, officer 4 or employee of the authority or canal corporation that arises pursuant 5 to any shared services agreement shall not be construed in any way to 6 impair, alter, limit, modify, abrogate or restrict any immunity avail- 7 able to or conferred upon any unit, entity, officer or employee of the 8 authority or canal corporation, or to impair, alter, limit, modify, 9 abrogate or restrict any right to defense and indemnification provided 10 for any governmental officer or employee by, in accordance with, or by 11 reason of, any other provision of state or federal statutory or common 12 law. 13 7. (a) The state shall defend any unit, entity, officer or employee of 14 the authority and canal corporation using the forces of the department 15 of law in any action, proceeding, claim, demand or the prosecution of 16 any appeal arising from or occasioned by the acts or omissions to act in 17 the performance of the functions of the department pursuant to a shared 18 services agreement. 19 (b) Defense pursuant to paragraph (a) of this subdivision shall be 20 conditioned upon the full cooperation of the authority and canal corpo- 21 ration. 22 (c) The state shall indemnify and hold harmless any unit, entity, 23 officer or employee of the authority or canal corporation in the amount 24 of any judgment obtained against the authority or canal corporation in 25 the amount of any settlement the authority or canal corporation enters 26 into with the consent of the state for any and all claims, damages or 27 liabilities arising from or occasioned by the acts or omissions to act 28 on behalf of the department pursuant to a shared services agreement, 29 provided, however, that the act or omission from which such judgment or 30 settlement arose occurred while the department was acting within the 31 scope of its functions pursuant to a shared services agreement. Any such 32 settlement shall be executed pursuant to section twenty-a of the court 33 of claims act. 34 (d) Any claim or proceeding commenced against any unit, entity, offi- 35 cer or employee of the department pursuant to any shared services agree- 36 ment shall not be construed in any way to impair, alter, limit, modify, 37 abrogate or restrict any immunity available to or conferred upon any 38 unit, entity, officer or employee of the department, or to impair, 39 alter, limit, modify, abrogate or restrict any right to defense and 40 indemnification provided for any governmental officer or employee by, in 41 accordance with, or by reason of, any other provision of state or feder- 42 al statutory or common law. 43 (e) Any payment made pursuant to this subdivision or any monies paid 44 for a claim against or settlement with the department, authority or 45 canal corporation pursuant to this subdivision and pursuant to a shared 46 services agreement shall be paid from appropriations for payment by the 47 state pursuant to the court of claims act. 48 8. This section shall not in any way affect the obligation of any 49 claimant to give notice to the state, authority, or canal corporation 50 under section ten and section eleven of the court of claims act or any 51 other provision of law provided, however, that notice served upon the 52 state, authority, or canal corporation who is a party to the shared 53 services agreement shall be valid notice on all parties to the agree- 54 ment, when such claim arises out of such shared services agreement. The 55 state, authority and canal corporation shall notify each other when theyS. 2008--A 150 A. 3008--A 1 receive a notice of claim, notice of intention to make a claim or a 2 claim arising out of such agreement. 3 9. The provisions of this section shall not be construed to impair, 4 alter, limit or modify the rights and obligations of any insurer under 5 any insurance agreement. 6 10. Notwithstanding any other provision of law, when employed pursuant 7 to a shared services agreement, employees of the authority, canal corpo- 8 ration and department shall be deemed employees of all such entities and 9 the state for purposes of the workers' compensation law. 10 11. At the request of the authority or canal corporation, services and 11 assistance and legal services for the authority or canal corporation 12 shall be performed by forces or officers of the department and the 13 department of law respectively, and all other state officers, depart- 14 ments, boards, divisions and commissions shall render services within 15 their respective functions. 16 § 2. Subdivision 1 of section 17 of the public officers law is amended 17 by adding a new paragraph (z) to read as follows: 18 (z) For purposes of this section, the term "employee" shall include 19 members of the governing boards, officers and employees of the power 20 authority of the state of New York or its subsidiaries. 21 § 3. This act, being necessary for the prosperity of the state and its 22 inhabitants, shall be liberally construed to effect the purposes and 23 secure the beneficial intents hereof. 24 § 4. If any provision of any section of this act or the application 25 thereof to any person or circumstance shall be adjudged invalid by a 26 court of competent jurisdiction, such order or judgment shall be 27 confined in its operation to the controversy in which it was rendered, 28 and shall not affect or invalidate the remainder of any provision of any 29 section of this act or the application thereof to any other person or 30 circumstance and to this end the provisions of each section of this act 31 are hereby declared to be severable. 32 § 5. This act shall take effect immediately. 33 PART MM 34 Section 1. Expenditures of moneys by the New York state energy 35 research and development authority for services and expenses of the 36 energy research, development and demonstration program, including 37 grants, the energy policy and planning program, the zero emissions vehi- 38 cle and electric vehicle rebate program, and the Fuel NY program shall 39 be subject to the provisions of this section. Notwithstanding the 40 provisions of subdivision 4-a of section 18-a of the public service law, 41 all moneys committed or expended in an amount not to exceed $19,700,000 42 shall be reimbursed by assessment against gas corporations, as defined 43 in subdivision 11 of section 2 of the public service law and electric 44 corporations as defined in subdivision 13 of section 2 of the public 45 service law, where such gas corporations and electric corporations have 46 gross revenues from intrastate utility operations in excess of $500,000 47 in the preceding calendar year, and the total amount which may be 48 charged to any gas corporation and any electric corporation shall not 49 exceed one cent per one thousand cubic feet of gas sold and .010 cent 50 per kilowatt-hour of electricity sold by such corporations in their 51 intrastate utility operations in calendar year 2015. Such amounts shall 52 be excluded from the general assessment provisions of subdivision 2 of 53 section 18-a of the public service law. The chair of the public service 54 commission shall bill such gas and/or electric corporations for suchS. 2008--A 151 A. 3008--A 1 amounts on or before August 10, 2017 and such amounts shall be paid to 2 the New York state energy research and development authority on or 3 before September 10, 2017. Upon receipt, the New York state energy 4 research and development authority shall deposit such funds in the ener- 5 gy research and development operating fund established pursuant to 6 section 1859 of the public authorities law. The New York state energy 7 research and development authority is authorized and directed to: (1) 8 transfer $1 million to the state general fund for services and expenses 9 of the department of environmental conservation, $150,000 to the state 10 general fund for services and expenses of the department of agriculture 11 and markets, and $750,000 to the University of Rochester laboratory for 12 laser energetics from the funds received; and (2) commencing in 2016, 13 provide to the chair of the public service commission and the director 14 of the budget and the chairs and secretaries of the legislative fiscal 15 committees, on or before August first of each year, an itemized record, 16 certified by the president and chief executive officer of the authority, 17 or his or her designee, detailing any and all expenditures and commit- 18 ments ascribable to moneys received as a result of this assessment by 19 the chair of the department of public service pursuant to section 18-a 20 of the public service law. This itemized record shall include an item- 21 ized breakdown of the programs being funded by this section and the 22 amount committed to each program. The authority shall not commit for 23 any expenditure, any moneys derived from the assessment provided for in 24 this section, until the chair of such authority shall have submitted, 25 and the director of the budget shall have approved, a comprehensive 26 financial plan encompassing all moneys available to and all anticipated 27 commitments and expenditures by such authority from any source for the 28 operations of such authority. Copies of the approved comprehensive 29 financial plan shall be immediately submitted by the chair to the chairs 30 and secretaries of the legislative fiscal committees. Any such amount 31 not committed by such authority to contracts or contracts to be awarded 32 or otherwise expended by the authority during the fiscal year shall be 33 refunded by such authority on a pro-rata basis to such gas and/or elec- 34 tric corporations, in a manner to be determined by the department of 35 public service. 36 § 2. This act shall take effect immediately and shall be deemed to 37 have been in full force and effect on and after April 1, 2017. 38 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 39 sion, section or part of this act shall be adjudged by any court of 40 competent jurisdiction to be invalid, such judgment shall not affect, 41 impair, or invalidate the remainder thereof, but shall be confined in 42 its operation to the clause, sentence, paragraph, subdivision, section 43 or part thereof directly involved in the controversy in which such judg- 44 ment shall have been rendered. It is hereby declared to be the intent of 45 the legislature that this act would have been enacted even if such 46 invalid provisions had not been included herein. 47 § 3. This act shall take effect immediately provided, however, that 48 the applicable effective date of Parts A through MM of this act shall be 49 as specifically set forth in the last section of such Parts.
