Bill Text: NY S02009 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F); relates to the STAR personal income tax credit (Part G); relates to the applicability of the STAR credit to cooperative apartment corporations; and repeals certain provisions of the tax law relating thereto (Part H); relates to effectiveness of provisions relating to oil and gas charges (Part I); relates to the veterans' home assistance fund (Part J); relates to life sciences companies (Part K); relates to the employee training incentive program (Part L); relates to extending the empire state film production credit and empire state film post production credit for three years (Part M); relates to a program to provide tax incentives for employers employing at risk youth (Subpart A); relates to establishing the empire state apprenticeship tax credit program (Subpart B) (Part N); relates to extending the alternative fuels and electric vehicle recharging property credit for five years (Part O); relates to the investment tax credit (Part P); relates to the treatment of single member limited liability companies that are disregarded entities in determining eligibility for tax credits (Part Q); relates to extending the top personal income tax rate for two years; relates to the imposition of tax (Part R); relates to extending the high income charitable contribution deduction limitation (Part S); relates to increasing the child and dependent care tax credit (Part T); relates to the financial institution data match system for state tax collection purposes; (Part U); relates to serving an income execution with respect to individual tax debtors without filing a warrant (Part X); relates to the definition of New York source income (Part Z); relates to closing the nonresident partnership asset sale loophole (Part AA); relates to closing the existing tax loopholes for transactions between related entities under article 28 and pursuant to the authority of article 29 of the tax law (Part CC); relates to clarifying the imposition of sales tax on gas service or electric service of whatever nature (Part DD); relates to modifying the funding of and improving the operation of drug testing in horse racing (Part LL); relates to the powers and duties of the state bingo control commission; relates to bingo games (Part MM); relates to allowing for the reprivatization of NYRA (Part NN); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting; extends certain provisions relating to simulcasting and the imposition of certain taxes; (Part OO); relates to vendor fees paid to vendor tracks (Part PP); relates to capital awards to vendor tracks (Part QQ); relates to the New York Jockey Injury Compensation Fund, Inc. (Part SS); relates to changing the calculation of STAR credit (Part TT); relates to the prepaid sales tax on motor fuel and diesel motor fuel under article 28 of the tax law (Part UU); relates to qualified financial instruments of RICS and REITS (Part VV); relates to exempting certain monuments from sales and use taxes (Part WW); relates to certain qualified entities (Part XX); relates to excelsior research and development tax credits (Part YY); relates to eligibility to participate in the excelsior jobs program (Part ZZ); relates to the regulation of transportation network company services; establishes the New York State TNC Accessibility Task Force and the New York state transportation network company review board; repeals certain provisions relating thereto (Part AAA); establishes the county-wide shared services property tax savings law (Part BBB); relates to the minority and women-owned business enterprise program (Part CCC); relates to the establishment of a tax credit for farm donations to food pantries (Part DDD); relates to the imposition of a surcharge on prepaid wireless communications service and repeals certain provisions of the county law relating thereto (Part EEE); relates to the health care facility transformation program (Part FFF); relates to managed long term care plans and demonstrations (Part GGG); relates to establishing the excelsior scholarship (Part HHH); relates to establishing enhanced tuition assistance program awards (Part III); relates to the NY-SUNY 2020 challenge grant program act; and relates to effectiveness of provisions establishing components of the NY-SUNY 2020 challenge grant program (Part JJJ); relates to a New York state part-time scholarship award program (Part KKK); requires the president of the higher education services corporation to report on options to make college more affordable for New York students (Part LLL); relates to establishing the New York state child welfare worker incentive scholarship program and the New York state child welfare worker loan forgiveness incentive program (Part MMM); relates to the schedule of compensation in the case of injury, and to appeals (Subpart A); relates to requiring the drafting of permanency impairment guidelines (Subpart B); relates to a comprehensive pharmacy benefit plan and prescription drug formulary (Subpart C); relates to penalties for failure to pay compensation (Subpart D); relates to assumption of workers' compensation liability policies (Subpart E); relating to effectiveness of certain provisions relating to rates for workers' compensation insurance and setting forth conditions for workers' compensation rate service organization; relates to workers' compensation rate service organizations (Subpart F); relates to requiring a study on independent medical examinations (Subpart G); relates to security for payment of compensation (Subpart H); relates to liability for compensation (Subpart I); relates to assessments for annual expenses; (Subpart J) (Part NNN); relates to allowing an additional New York itemized deduction for union dues not included in federal itemized deductions (Part OOO); relates to the establishment of the office of the inspector general of New York for transportation (Part PPP); authorizes the transfer of certain expenditures and disbursements; repeals a chapter of the laws of 2017 making appropriations for the support of government, as proposed in legislative bills numbers S.5492 and A.7068 (Part QQQ); extends provisions relating to the definition of an authorized entity that may utilize design-build contracts (Part RRR); relates to disability benefits for certain members of the New York city police pension fund (Part SSS); relates to the affordable New York housing program and repeals certain provisions relating thereto (Part TTT); relates to comprehensive economic development reporting; repeals section 438 of the economic development law (Part UUU); relates to statements of those accused of crimes and eyewitness identifications; enhances criminal investigations and prosecutions and promotes confidence in the criminal justice system of this state; relates to the implementation of a plan regarding indigent legal services (Part VVV); relates to proceedings against juvenile and adolescent offenders and the age of juvenile and adolescent offenders and repeals certain provisions of the criminal procedure law relating thereto (Part WWW); provides for the administration of certain funds and accounts related to the 2017-18 budget and authorizes certain payments and transfers; relates to the school tax relief fund and payments, transfers and deposits; relates to the deposit provisions of the tobacco settlement financing corporation act; relates to establishing the retiree health benefit trust fund; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the issuance of bonds; relates to housing program bonds and notes; relates to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; relates to authorizing the urban development corporation to issue bonds to fund project costs for the implementation of a NY-CUNY challenge grant program and increasing the bonding limit for certain state and municipal facilities; relates to increasing the bonding limit for certain public protection facilities; relates to increasing the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; relates to funding certain capital projects and the issuance of bonds; repeals sections 58, 59 and 60 of the state finance law relating thereto; provides for the repeal of certain other related provisions (Part XXX); relates to contracts for excellence and the apportionment of public moneys; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to charter school tuition and facility aid for charter schools; relates to apportionment to the Haverstraw-Stony Point central school district; relates to penalties arising from late final cost reports; extends provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to English language learner pupils; relates to the effectiveness of certain provisions relating to the implementation of the No Child Left Behind Act of 2001; relates to transportable classroom units; relates to the state's immunization program; relates to grants for hiring teachers; relates to foundation aid; relates to education of Native American pupils; relates to additional expanded prekindergarten; relates to conforming foundation aid base change to accommodate pulling out community schools; relates to establishing a foundation aid phase-in; relates to maintenance of effort reduction; relates to general aid for public schools; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to the Hendrick Hudson reserve fund; relates to approved reimbursement for preschool integrated special class programs; relates to effectiveness of provisions relating to the universal pre-kindergarten program; amends provisions authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to certain apportionments; relates to contracts for the purchase of certain produce; relates to effectiveness of provisions relating to the lease of school buses by school districts; relates to effectiveness of provisions relating to state aid to school districts and the appropriation of funds for the support of government; amends provisions relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursements for the 2017-2018 school year; amends provisions relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to withholding a portion of employment preparation education aid and in relation to the effectiveness thereof; amends provisions relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district, in relation to reimbursement to such school district and in relation to the effectiveness thereof; amends provisions relating to conditional appointment of school district, charter school or BOCES employees, in relation to the effectiveness thereof; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to suballocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to support of public libraries; amends the effectiveness of certain provisions relating to the support of education; extends certain provisions relating to citizenship requirements for permanent certification as a teacher; relates to serving persons twenty-one years of age or older (Part YYY).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-04-09 - SUBSTITUTED BY A3009C [S02009 Detail]
Download: New_York-2017-S02009-Introduced.html
Bill Title: Enacts into law major components of legislation necessary to implement the state fiscal plan for the 2017-2018 state fiscal year; relates to the school tax reduction credit for residents of a city with a population of one million or more; repeals section 54-f of the state finance law relating thereto (Part C); relates to authorizing partial payments of property taxes (Part F); relates to the STAR personal income tax credit (Part G); relates to the applicability of the STAR credit to cooperative apartment corporations; and repeals certain provisions of the tax law relating thereto (Part H); relates to effectiveness of provisions relating to oil and gas charges (Part I); relates to the veterans' home assistance fund (Part J); relates to life sciences companies (Part K); relates to the employee training incentive program (Part L); relates to extending the empire state film production credit and empire state film post production credit for three years (Part M); relates to a program to provide tax incentives for employers employing at risk youth (Subpart A); relates to establishing the empire state apprenticeship tax credit program (Subpart B) (Part N); relates to extending the alternative fuels and electric vehicle recharging property credit for five years (Part O); relates to the investment tax credit (Part P); relates to the treatment of single member limited liability companies that are disregarded entities in determining eligibility for tax credits (Part Q); relates to extending the top personal income tax rate for two years; relates to the imposition of tax (Part R); relates to extending the high income charitable contribution deduction limitation (Part S); relates to increasing the child and dependent care tax credit (Part T); relates to the financial institution data match system for state tax collection purposes; (Part U); relates to serving an income execution with respect to individual tax debtors without filing a warrant (Part X); relates to the definition of New York source income (Part Z); relates to closing the nonresident partnership asset sale loophole (Part AA); relates to closing the existing tax loopholes for transactions between related entities under article 28 and pursuant to the authority of article 29 of the tax law (Part CC); relates to clarifying the imposition of sales tax on gas service or electric service of whatever nature (Part DD); relates to modifying the funding of and improving the operation of drug testing in horse racing (Part LL); relates to the powers and duties of the state bingo control commission; relates to bingo games (Part MM); relates to allowing for the reprivatization of NYRA (Part NN); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; relates to simulcasting; extends certain provisions relating to simulcasting and the imposition of certain taxes; (Part OO); relates to vendor fees paid to vendor tracks (Part PP); relates to capital awards to vendor tracks (Part QQ); relates to the New York Jockey Injury Compensation Fund, Inc. (Part SS); relates to changing the calculation of STAR credit (Part TT); relates to the prepaid sales tax on motor fuel and diesel motor fuel under article 28 of the tax law (Part UU); relates to qualified financial instruments of RICS and REITS (Part VV); relates to exempting certain monuments from sales and use taxes (Part WW); relates to certain qualified entities (Part XX); relates to excelsior research and development tax credits (Part YY); relates to eligibility to participate in the excelsior jobs program (Part ZZ); relates to the regulation of transportation network company services; establishes the New York State TNC Accessibility Task Force and the New York state transportation network company review board; repeals certain provisions relating thereto (Part AAA); establishes the county-wide shared services property tax savings law (Part BBB); relates to the minority and women-owned business enterprise program (Part CCC); relates to the establishment of a tax credit for farm donations to food pantries (Part DDD); relates to the imposition of a surcharge on prepaid wireless communications service and repeals certain provisions of the county law relating thereto (Part EEE); relates to the health care facility transformation program (Part FFF); relates to managed long term care plans and demonstrations (Part GGG); relates to establishing the excelsior scholarship (Part HHH); relates to establishing enhanced tuition assistance program awards (Part III); relates to the NY-SUNY 2020 challenge grant program act; and relates to effectiveness of provisions establishing components of the NY-SUNY 2020 challenge grant program (Part JJJ); relates to a New York state part-time scholarship award program (Part KKK); requires the president of the higher education services corporation to report on options to make college more affordable for New York students (Part LLL); relates to establishing the New York state child welfare worker incentive scholarship program and the New York state child welfare worker loan forgiveness incentive program (Part MMM); relates to the schedule of compensation in the case of injury, and to appeals (Subpart A); relates to requiring the drafting of permanency impairment guidelines (Subpart B); relates to a comprehensive pharmacy benefit plan and prescription drug formulary (Subpart C); relates to penalties for failure to pay compensation (Subpart D); relates to assumption of workers' compensation liability policies (Subpart E); relating to effectiveness of certain provisions relating to rates for workers' compensation insurance and setting forth conditions for workers' compensation rate service organization; relates to workers' compensation rate service organizations (Subpart F); relates to requiring a study on independent medical examinations (Subpart G); relates to security for payment of compensation (Subpart H); relates to liability for compensation (Subpart I); relates to assessments for annual expenses; (Subpart J) (Part NNN); relates to allowing an additional New York itemized deduction for union dues not included in federal itemized deductions (Part OOO); relates to the establishment of the office of the inspector general of New York for transportation (Part PPP); authorizes the transfer of certain expenditures and disbursements; repeals a chapter of the laws of 2017 making appropriations for the support of government, as proposed in legislative bills numbers S.5492 and A.7068 (Part QQQ); extends provisions relating to the definition of an authorized entity that may utilize design-build contracts (Part RRR); relates to disability benefits for certain members of the New York city police pension fund (Part SSS); relates to the affordable New York housing program and repeals certain provisions relating thereto (Part TTT); relates to comprehensive economic development reporting; repeals section 438 of the economic development law (Part UUU); relates to statements of those accused of crimes and eyewitness identifications; enhances criminal investigations and prosecutions and promotes confidence in the criminal justice system of this state; relates to the implementation of a plan regarding indigent legal services (Part VVV); relates to proceedings against juvenile and adolescent offenders and the age of juvenile and adolescent offenders and repeals certain provisions of the criminal procedure law relating thereto (Part WWW); provides for the administration of certain funds and accounts related to the 2017-18 budget and authorizes certain payments and transfers; relates to the school tax relief fund and payments, transfers and deposits; relates to the deposit provisions of the tobacco settlement financing corporation act; relates to establishing the retiree health benefit trust fund; relates to funding project costs undertaken by non-public schools; relates to funding project costs for certain capital projects; relates to the issuance of bonds; relates to housing program bonds and notes; relates to the issuance of bonds; relates to the issuance of bonds by the dormitory authority; relates to issuance of bonds by the urban development corporation; relates to the issuance of bonds; relates to the state environmental infrastructure projects; relates to authorizing the urban development corporation to issue bonds to fund project costs for the implementation of a NY-CUNY challenge grant program and increasing the bonding limit for certain state and municipal facilities; relates to increasing the bonding limit for certain public protection facilities; relates to increasing the aggregate amount of bonds to be issued by the New York state urban development corporation; relates to financing of peace bridge and transportation capital projects; relates to dormitories at certain educational institutions other than state operated institutions and statutory or contract colleges under the jurisdiction of the state university of New York; relates to bonds and mental health facilities improvement notes; relates to funding certain capital projects and the issuance of bonds; repeals sections 58, 59 and 60 of the state finance law relating thereto; provides for the repeal of certain other related provisions (Part XXX); relates to contracts for excellence and the apportionment of public moneys; relates to requiring the commissioner of education to include certain information in the official score report of all students; relates to charter school tuition and facility aid for charter schools; relates to apportionment to the Haverstraw-Stony Point central school district; relates to penalties arising from late final cost reports; extends provisions relating to the provision of supplemental educational services, attendance at a safe public school and the suspension of pupils who bring a firearm to or possess a firearm at a school; relates to English language learner pupils; relates to the effectiveness of certain provisions relating to the implementation of the No Child Left Behind Act of 2001; relates to transportable classroom units; relates to the state's immunization program; relates to grants for hiring teachers; relates to foundation aid; relates to education of Native American pupils; relates to additional expanded prekindergarten; relates to conforming foundation aid base change to accommodate pulling out community schools; relates to establishing a foundation aid phase-in; relates to maintenance of effort reduction; relates to general aid for public schools; relates to state aid adjustments; relates to the teachers of tomorrow teacher recruitment and retention program; relates to class sizes for special classes containing certain students with disabilities; relates to the Hendrick Hudson reserve fund; relates to approved reimbursement for preschool integrated special class programs; relates to effectiveness of provisions relating to the universal pre-kindergarten program; amends provisions authorizing the Roosevelt union free school district to finance deficits by the issuance of serial bonds, in relation to certain apportionments; relates to contracts for the purchase of certain produce; relates to effectiveness of provisions relating to the lease of school buses by school districts; relates to effectiveness of provisions relating to state aid to school districts and the appropriation of funds for the support of government; amends provisions relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to reimbursements for the 2017-2018 school year; amends provisions relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to withholding a portion of employment preparation education aid and in relation to the effectiveness thereof; amends provisions relating to supplementary funding for dedicated programs for public school students in the East Ramapo central school district, in relation to reimbursement to such school district and in relation to the effectiveness thereof; amends provisions relating to conditional appointment of school district, charter school or BOCES employees, in relation to the effectiveness thereof; relates to school bus driver training; relates to special apportionment for salary expenses and public pension accruals; relates to suballocations of appropriations; relates to the city school district of the city of Rochester; relates to total foundation aid for the purpose of the development, maintenance or expansion of certain magnet schools or magnet school programs for the 2017-2018 school year; relates to support of public libraries; amends the effectiveness of certain provisions relating to the support of education; extends certain provisions relating to citizenship requirements for permanent certification as a teacher; relates to serving persons twenty-one years of age or older (Part YYY).
Spectrum: Committee Bill
Status: (Introduced - Dead) 2017-04-09 - SUBSTITUTED BY A3009C [S02009 Detail]
Download: New_York-2017-S02009-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 2009 A. 3009 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 IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means AN ACT to amend the alcoholic beverage control law, in relation to the creation of a special license to sell alcoholic beverages at retail for consumption off the premises (Part A); to amend the alcoholic beverage control law, in relation to alcohol in certain motion picture theatres, and providing for the expiration and repeal of such provisions upon the expiration thereof (Part B); to amend the tax law and the administrative code of the city of New York, in relation to the school tax reduction credit for residents of a city with a popu- lation of one million or more; and to repeal section 54-f of the state financial law relating thereto (Part C); to amend the real property tax law, in relation to the maximum amount of tax savings allowable under the STAR program (Part D); to amend the real property tax law and the tax law, in relation to making the STAR income verification program mandatory; and repealing certain provisions of such laws relating thereto (Part E); to amend the real property tax law, in relation to authorizing partial payments of property taxes (Part F); to amend the tax law, in relation to the STAR personal income tax credit (Part G); to amend the real property tax law and the tax law, in relation to the applicability of the STAR credit to cooperative apartment corporations; and repealing certain provisions of the tax law relating thereto (Part H); to amend chapter 540 of the laws of 1992, amending the real property tax law relating to oil and gas charges, in relation to the effectiveness thereof (Part I); to amend the state finance law, in relation to the veterans' home assistance fund (Part J); to amend the economic development law and the tax law, in relation to life sciences companies (Part K); to amend the economic development law, in relation to the employee training incentive program (Part L); to amend the tax law, in relation to extending the empire state film production credit and empire state film post production credit for three years (Part M); to amend the labor law and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12574-03-7S. 2009 2 A. 3009 the tax law, in relation to a program to provide tax incentives for employers employing at risk youth (Part N); to amend the tax law, in relation to extending the alternative fuels and electric vehicle recharging property credit for five years (Part O); to amend the tax law, in relation to the investment tax credit (Part P); to amend the tax law, in relation to the treatment of single member limited liabil- ity companies that are disregarded entities in determining eligibility for tax credits (Part Q); to amend the tax law, in relation to extend- ing the top personal income tax rate for three years; and to repeal subparagraph (B) of paragraph 1 of subsection (a), subparagraph (B) of paragraph 1 of subsection (b) and subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, relating to the imposi- tion of tax (Part R); to amend the tax law and the administrative code of the city of New York, in relation to permanently extending the high income charitable contribution deduction limitation (Part S); to amend the tax law, in relation to increasing the child and dependent care tax credit (Part T); to amend the tax law, in relation to the finan- cial institution data match system for state tax collection purposes (Part U); to amend the civil service law and the tax law, in relation to tax clearances for applicants for civil service employment (Part V); to amend chapter 266 of the laws of 1986, amending the civil prac- tice law and rules and other laws relating to malpractice and profes- sional medical conduct, in relation to apportioning premium for certain policies; to amend part J of chapter 63 of the laws of 2001 amending chapter 266 of the laws of 1986, amending the civil practice law and rules and other laws relating to malpractice and professional medical conduct, in relation to extending certain provisions concern- ing the hospital excess liability pool; and to amend the tax law, in relation to extending certain provisions concerning the hospital excess liability pool and requiring a tax clearance for doctors and dentists to be eligible for such excess coverage (Part W); to amend chapter 59 of the laws of 2013, amending the tax law relating to serv- ing an income execution with respect to individual tax debtors without filing a warrant, in relation to making the provisions authorizing service of income executions on individual tax debtors without filing a warrant permanent (Part X); to amend the tax law, in relation to the taxation of S corporations; and to repeal certain provisions of such law relating thereto (Part Y); to amend the tax law, in relation to the definition of New York source income (Part Z); to close the nonresident partnership asset sale loophole (Part AA); to amend the tax law, in relation to requiring marketplace providers to collect sales tax (Part BB); to amend the tax law, in relation to closing the existing tax loopholes for transactions between related entities under article 28 and pursuant to the authority of article 29 of such law (Part CC); to amend the tax law, in relation to clarifying the imposi- tion of sales tax on gas service or electric service of whatever nature (Part DD); to amend the tax law and the county law, in relation to the imposition of a surcharge on prepaid wireless communications service and devices (Part EE); to amend the public health law and the education law, in relation to tobacco products, herbal cigarettes, and vapor products; and to amend the tax law, in relation to imposing a tax on vapor products (Part FF); to amend the tax law in relation to the amount of untaxed cigarettes required to seize a vehicle and to increase the penalty for the possession or sale of counterfeit tax stamps or the device necessary to manufacture such stamps (Part GG); to amend the tax law, in relation to authorizing jeopardy assessmentsS. 2009 3 A. 3009 on cigarette and tobacco product taxes assessed under article 20 ther- eof (Part HH); to amend the tax law, in relation to the imposition of a tax on cigars under article 20 thereof (Part II); to amend the tax law, in relation to the definition of a conveyance for real estate transfer taxes (Part JJ); to amend the tax law, in relation to the additional real estate transfer tax (Part KK); to amend the racing, pari-mutuel wagering and breeding law, in relation to modifying the funding of and improve the operation of drug testing in horse racing (Part LL); to amend the racing, pari-mutuel wagering and breeding law, the executive law, and the general municipal law, in relation to the operation of charitable gaming; to amend the social services law, in relation to penalties for unauthorized transactions relating to certain public assistance; to amend the tax law, in relation to certain income derived from the conduct of certain games of chance; and to repeal certain provisions of the executive law, the general municipal law and the tax law relating thereto (Part MM); to amend the racing, pari-mutuel wagering and breeding law, in relation to allowing for the reprivatization of NYRA, and under certain circumstances racing after sunset and a reduction in winter racing days (Part NN); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposition of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari- mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part OO); to amend the tax law, in relation to vendor fees paid to vendor tracks (Part PP); to amend the tax law, in relation to capital awards to vendor tracks (Part QQ); and to amend the state finance law, in relation to the distribution of certain gaming aid; and providing for the repeal of such provisions upon expi- ration thereof (Part RR) 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 RR. 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. 2009 4 A. 3009 1 Section 1. The alcoholic beverage control law is amended by adding a 2 new section 63-b to read as follows: 3 § 63-b. Special license to sell alcoholic beverages at retail for 4 consumption off the premises. 1. Any person with a written agreement 5 with the department of agriculture and markets to operate a "Taste NY" 6 store may make application to the authority for a special license to 7 sell alcoholic beverages at retail for consumption off the licensed 8 premises subject to the provisions of such written agreement and those 9 set forth herein. Notwithstanding any law to the contrary, no alcoholic 10 beverage shall be sold or tastings allowed on the thruway. 11 2. An application for a license under this section shall be in such 12 form and shall contain such information as shall be required by the 13 authority and shall be accompanied by a check or draft in the amount 14 required by this chapter. 15 3. Section fifty-four of this chapter shall control so far as is 16 applicable to the procedure in connection with such application. 17 4. A license under this section shall be issued to all eligible appli- 18 cants except for good cause shown, provided, however, that no more than 19 ten such licenses shall be in effect at any time, and that all such 20 licenses shall be issued in a manner consistent with federal law and 21 regulations. Such license shall be limited to the premises subject to 22 the written agreement with the department of agriculture and markets. 23 5. A license under this section shall not be subject to the provisions 24 of subdivisions two, three and six of section one hundred five of this 25 chapter. 26 6. Subject to any further restriction contained in the agreement with 27 the department of agriculture and markets, the holder of a license 28 issued under this section may offer samples of alcoholic beverages to 29 customers to be consumed on the licensed premises upon the following 30 conditions: 31 (a) no fee shall be charged for any sample; 32 (b) each sample shall be limited; 33 (i) in the case of beer, wine products and cider, to three ounces or 34 less; 35 (ii) in the case of wine, to two ounces; 36 (iii) in the case of liquor, to one-quarter ounce; 37 (c) no sample shall be provided to a customer during the hours prohib- 38 ited by the provisions of subdivision five of section one hundred six of 39 this chapter; and 40 (d) no customer may be provided with more than three samples in one 41 calendar day. 42 7. Subject to any further restriction contained in the agreement with 43 the department of agriculture and markets, the holder of a license 44 issued under this section shall not: 45 (a) offer any tastings of, or sell, any beer or cider except during 46 the hours in which beer may be sold for consumption off the premises in 47 the county in which the licensed premises is located; and 48 (b) offer any tastings of, or sell, any liquor or wine except during 49 the hours in which liquor and wine may be sold for consumption off the 50 premises in the county in which the licensed premises is located. 51 8. In addition to the sale of alcoholic beverages, the following items 52 may be sold at a premises licensed under this section: 53 (a) non-alcoholic beverages for consumption off premises, including 54 but not limited to bottled water, juice and soda beverages; 55 (b) food items grown or produced in this state not specifically 56 prepared for immediate consumption upon the premises; andS. 2009 5 A. 3009 1 (c) souvenir items, which shall include, but not be limited to 2 artwork, crafts, clothing, agricultural products and any other articles 3 which can be construed to propagate tourism within the state. 4 9. A license issued under this section shall be effective for three 5 years at three times the annual fee. 6 § 2. Subdivision 3 of section 17 of the alcoholic beverage control 7 law, as amended by section 3 of chapter 297 of the laws of 2016, is 8 amended to read as follows: 9 3. To revoke, cancel or suspend for cause any license or permit issued 10 under this chapter and/or to impose a civil penalty for cause against 11 any holder of a license or permit issued pursuant to this chapter. Any 12 civil penalty so imposed shall not exceed the sum of ten thousand 13 dollars as against the holder of any retail permit issued pursuant to 14 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and 15 paragraph f of subdivision one of section ninety-nine-b of this chapter, 16 and as against the holder of any retail license issued pursuant to 17 sections fifty-three-a, fifty-four, fifty-four-a, fifty-five, fifty- 18 five-a, sixty-three, sixty-three-b, sixty-four, sixty-four-a, sixty- 19 four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one and eight- 20 y-one-a of this chapter, and the sum of thirty thousand dollars as 21 against the holder of a license issued pursuant to sections fifty-three, 22 sixty-one-a, sixty-one-b, seventy-six, seventy-six-a, and seventy-eight 23 of this chapter, provided that the civil penalty against the holder of a 24 wholesale license issued pursuant to section fifty-three of this chapter 25 shall not exceed the sum of ten thousand dollars where that licensee 26 violates provisions of this chapter during the course of the sale of 27 beer at retail to a person for consumption at home, and the sum of one 28 hundred thousand dollars as against the holder of any license issued 29 pursuant to sections fifty-one, sixty-one, and sixty-two of this chap- 30 ter. Any civil penalty so imposed shall be in addition to and separate 31 and apart from the terms and provisions of the bond required pursuant to 32 section one hundred twelve of this chapter. Provided that no appeal is 33 pending on the imposition of such civil penalty, in the event such civil 34 penalty imposed by the division remains unpaid, in whole or in part, 35 more than forty-five days after written demand for payment has been sent 36 by first class mail to the address of the licensed premises, a notice of 37 impending default judgment shall be sent by first class mail to the 38 licensed premises and by first class mail to the last known home address 39 of the person who signed the most recent license application. The notice 40 of impending default judgment shall advise the licensee: (a) that a 41 civil penalty was imposed on the licensee; (b) the date the penalty was 42 imposed; (c) the amount of the civil penalty; (d) the amount of the 43 civil penalty that remains unpaid as of the date of the notice; (e) the 44 violations for which the civil penalty was imposed; and (f) that a judg- 45 ment by default will be entered in the supreme court of the county in 46 which the licensed premises are located, or other court of civil juris- 47 diction or any other place provided for the entry of civil judgments 48 within the state of New York unless the division receives full payment 49 of all civil penalties due within twenty days of the date of the notice 50 of impending default judgment. If full payment shall not have been 51 received by the division within thirty days of mailing of the notice of 52 impending default judgment, the division shall proceed to enter with 53 such court a statement of the default judgment containing the amount of 54 the penalty or penalties remaining due and unpaid, along with proof of 55 mailing of the notice of impending default judgment. The filing of such 56 judgment shall have the full force and effect of a default judgment dulyS. 2009 6 A. 3009 1 docketed with such court pursuant to the civil practice law and rules 2 and shall in all respects be governed by that chapter and may be 3 enforced in the same manner and with the same effect as that provided by 4 law in respect to execution issued against property upon judgments of a 5 court of record. A judgment entered pursuant to this subdivision shall 6 remain in full force and effect for eight years notwithstanding any 7 other provision of law. 8 § 3. Subdivision 3 of section 17 of the alcoholic beverage control 9 law, as amended by section 4 of chapter 297 of the laws of 2016, is 10 amended to read as follows: 11 3. To revoke, cancel or suspend for cause any license or permit issued 12 under this chapter and/or to impose a civil penalty for cause against 13 any holder of a license or permit issued pursuant to this chapter. Any 14 civil penalty so imposed shall not exceed the sum of ten thousand 15 dollars as against the holder of any retail permit issued pursuant to 16 sections ninety-five, ninety-seven, ninety-eight, ninety-nine-d, and 17 paragraph f of subdivision one of section ninety-nine-b of this chapter, 18 and as against the holder of any retail license issued pursuant to 19 sections fifty-three-a, fifty-four, fifty-four-a, fifty-five, fifty- 20 five-a, sixty-three, sixty-three-b, sixty-four, sixty-four-a, sixty- 21 four-b, sixty-four-c, seventy-six-f, seventy-nine, eighty-one, and 22 eighty-one-a of this chapter, and the sum of thirty thousand dollars as 23 against the holder of a license issued pursuant to sections fifty-three, 24 sixty-one-a, sixty-one-b, seventy-six, seventy-six-a and seventy-eight 25 of this chapter, provided that the civil penalty against the holder of a 26 wholesale license issued pursuant to section fifty-three of this chapter 27 shall not exceed the sum of ten thousand dollars where that licensee 28 violates provisions of this chapter during the course of the sale of 29 beer at retail to a person for consumption at home, and the sum of one 30 hundred thousand dollars as against the holder of any license issued 31 pursuant to sections fifty-one, sixty-one and sixty-two of this chapter. 32 Any civil penalty so imposed shall be in addition to and separate and 33 apart from the terms and provisions of the bond required pursuant to 34 section one hundred twelve of this chapter. Provided that no appeal is 35 pending on the imposition of such civil penalty, in the event such civil 36 penalty imposed by the division remains unpaid, in whole or in part, 37 more than forty-five days after written demand for payment has been sent 38 by first class mail to the address of the licensed premises, a notice of 39 impending default judgment shall be sent by first class mail to the 40 licensed premises and by first class mail to the last known home address 41 of the person who signed the most recent license application. The notice 42 of impending default judgment shall advise the licensee: (a) that a 43 civil penalty was imposed on the licensee; (b) the date the penalty was 44 imposed; (c) the amount of the civil penalty; (d) the amount of the 45 civil penalty that remains unpaid as of the date of the notice; (e) the 46 violations for which the civil penalty was imposed; and (f) that a judg- 47 ment by default will be entered in the supreme court of the county in 48 which the licensed premises are located, or other court of civil juris- 49 diction, or any other place provided for the entry of civil judgments 50 within the state of New York unless the division receives full payment 51 of all civil penalties due within twenty days of the date of the notice 52 of impending default judgment. If full payment shall not have been 53 received by the division within thirty days of mailing of the notice of 54 impending default judgment, the division shall proceed to enter with 55 such court a statement of the default judgment containing the amount of 56 the penalty or penalties remaining due and unpaid, along with proof ofS. 2009 7 A. 3009 1 mailing of the notice of impending default judgment. The filing of such 2 judgment shall have the full force and effect of a default judgment duly 3 docketed with such court pursuant to the civil practice law and rules 4 and shall in all respects be governed by that chapter and may be 5 enforced in the same manner and with the same effect as that provided by 6 law in respect to execution issued against property upon judgments of a 7 court of record. A judgment entered pursuant to this subdivision shall 8 remain in full force and effect for eight years notwithstanding any 9 other provision of law. 10 § 4. Subdivision 1 of section 56-a of the alcoholic beverage control 11 law, as amended by chapter 422 of the laws of 2016, is amended to read 12 as follows: 13 1. In addition to the annual fees provided for in this chapter, there 14 shall be paid to the authority with each initial application for a 15 license filed pursuant to section fifty-one, fifty-one-a, fifty-two, 16 fifty-three, fifty-eight, fifty-eight-c, fifty-eight-d, sixty-one, 17 sixty-two, seventy-six, seventy-seven or seventy-eight of this chapter, 18 a filing fee of four hundred dollars; with each initial application for 19 a license filed pursuant to section sixty-three, sixty-three-b, sixty- 20 four, sixty-four-a or sixty-four-b of this chapter, a filing fee of two 21 hundred dollars; with each initial application for a license filed 22 pursuant to section fifty-three-a, fifty-four, fifty-five, fifty-five-a, 23 seventy-nine, eighty-one or eighty-one-a of this chapter, a filing fee 24 of one hundred dollars; with each initial application for a permit filed 25 pursuant to section ninety-one, ninety-one-a, ninety-two, ninety-two-a, 26 ninety-three, ninety-three-a, if such permit is to be issued on a calen- 27 dar year basis, ninety-four, ninety-five, ninety-six or ninety-six-a, or 28 pursuant to paragraph b, c, e or j of subdivision one of section nine- 29 ty-nine-b of this chapter if such permit is to be issued on a calendar 30 year basis, or for an additional bar pursuant to subdivision four of 31 section one hundred of this chapter, a filing fee of twenty dollars; and 32 with each application for a permit under section ninety-three-a of this 33 chapter, other than a permit to be issued on a calendar year basis, 34 section ninety-seven, ninety-eight, ninety-nine, or ninety-nine-b of 35 this chapter, other than a permit to be issued pursuant to paragraph b, 36 c, e or j of subdivision one of section ninety-nine-b of this chapter on 37 a calendar year basis, a filing fee of ten dollars. 38 § 5. Subdivision 2 of section 56-a of the alcoholic beverage control 39 law, as amended by chapter 422 of the laws of 2016, is amended to read 40 as follows: 41 2. In addition to the annual fees provided for in this chapter, there 42 shall be paid to the authority with each renewal application for a 43 license filed pursuant to section fifty-one, fifty-one-a, fifty-two, 44 fifty-three, fifty-eight, fifty-eight-c, fifty-eight-d, sixty-one, 45 sixty-two, seventy-six, seventy-seven or seventy-eight of this chapter, 46 a filing fee of one hundred dollars; with each renewal application for a 47 license filed pursuant to section sixty-three, sixty-three-b, sixty- 48 four, sixty-four-a or sixty-four-b of this chapter, a filing fee of 49 ninety dollars; with each renewal application for a license filed pursu- 50 ant to section seventy-nine, eighty-one or eighty-one-a of this chapter, 51 a filing fee of twenty-five dollars; and with each renewal application 52 for a license or permit filed pursuant to section fifty-three-a, fifty- 53 four, fifty-five, fifty-five-a, ninety-one, ninety-one-a, ninety-two, 54 ninety-two-a, ninety-three, ninety-three-a, if such permit is issued on 55 a calendar year basis, ninety-four, ninety-five, ninety-six or ninety- 56 six-a of this chapter or pursuant to paragraph b, c, e or j of subdivi-S. 2009 8 A. 3009 1 sion one of section ninety-nine-b, if such permit is issued on a calen- 2 dar year basis, or with each renewal application for an additional bar 3 pursuant to subdivision four of section one hundred of this chapter, a 4 filing fee of thirty dollars. 5 § 6. Section 66 of the alcoholic beverage control law is amended by 6 adding a new subdivision 11 to read as follows: 7 11. The annual fee for a special license to sell alcoholic beverages 8 at retail for consumption off the licensed premises shall be five 9 hundred dollars. 10 § 7. Section 67 of the alcoholic beverage control law, as amended by 11 section 4 of part Z of chapter 85 of the laws of 2002, is amended to 12 read as follows: 13 § 67. License fees, duration of licenses; fee for part of year. 14 Effective April first, nineteen hundred eighty-three, licenses issued 15 pursuant to sections sixty-one, sixty-two, sixty-three, sixty-three-b, 16 sixty-four, sixty-four-a and sixty-four-b of this article shall be 17 effective for three years at three times that annual fee[, except that,18in implementing the purposes of this section, the liquor authority shall19schedule the commencement dates, duration and expiration dates thereof20to provide for an equal cycle of license renewals issued under each such21section through the course of the fiscal year. Effective December first,22nineteen hundred ninety-eight, licenses issued pursuant to sections23sixty-four, sixty-four-a and sixty-four-b of this article shall be24effective for two years at two times that annual fee, except that, in25implementing the purposes of this section, the liquor authority shall26schedule the commencement dates, duration and expiration dates thereof27to provide for an equal cycle of license renewals issued under each such28section through the course of the fiscal year. Notwithstanding the fore-29going, commencing on December first, nineteen hundred ninety-eight and30concluding on July thirty-first, two thousand two, a licensee issued a31license pursuant to section sixty-four, sixty-four-a or sixty-four-b of32this article may elect to remit the fee for such license in equal annual33installments. Such installments shall be due on dates established by the34liquor authority and the failure of a licensee to have remitted such35annual installments after a due date shall be a violation of this chap-36ter. For licenses issued for less than the three-year licensing period,37the license fee shall be levied on a pro-rated basis]. The entire 38 license fee shall be due and payable at the time of application. The 39 liquor authority may make such rules as shall be appropriate to carry 40 out the purpose of this section. 41 § 8. Subdivision 8 of section 100 of the alcoholic beverage control 42 law, as added by chapter 256 of the laws of 1978 and as renumbered by 43 chapter 466 of the laws of 2015, is amended to read as follows: 44 8. Within ten days after filing a new application to sell liquor at 45 retail under section sixty-three, sixty-three-b, sixty-four, 46 sixty-four-a or sixty-four-b of this chapter, a notice thereof, in the 47 form prescribed by the authority, shall be posted by the applicant in a 48 conspicuous place at the entrance to the proposed premises. The appli- 49 cant shall make reasonable efforts to insure such notice shall remain 50 posted throughout the pendency of the application. The provisions hereof 51 shall apply only where no retail liquor license has previously been 52 granted for the proposed premise and shall, specifically, not be appli- 53 cable to a proposed sale of an existing business engaged in the retail 54 sale of liquor. The authority may adopt such rules it may deem necessary 55 to carry out the purpose of this subdivision.S. 2009 9 A. 3009 1 § 9. This act shall take effect on the thirtieth day after it shall 2 have become a law; provided, however, that: 3 (a) the amendments to subdivision 3 of section 17 of the alcoholic 4 beverage control law made by section two of this act shall be subject to 5 the expiration and reversion of such section pursuant to section 4 of 6 chapter 118 of the laws of 2012, as amended, when upon such date the 7 provisions of section three of this act shall take effect; and 8 (b) if chapter 422 of the laws of 2016 shall not have taken effect on 9 or before such date then sections four and five of this act shall take 10 effect on the same date and in the same manner as such chapter of the 11 laws of 2016, takes effect. 12 PART B 13 Section 1. Section 106 of the alcoholic beverage control law is 14 amended by adding a new subdivision 16 to read as follows: 15 16. A person holding a retail on-premises license for a movie theatre, 16 other than a license for a movie theatre that meets the definitions of 17 restaurant and meals, and where all seating is at tables where meals are 18 served, shall: 19 (a) for every purchase of an alcoholic beverage, require the purchaser 20 to provide written evidence of age as set forth in paragraph (b) of 21 subdivision two of section sixty-five-b of this chapter; and 22 (b) allow the purchase of only one alcoholic beverage per transaction; 23 and 24 (c) only permit the sale or delivery of alcoholic beverages directly 25 to an individual holding a ticket for a motion picture with a Motion 26 Picture Association of America rating of "PG-13," "R," or "NC-17"; and 27 (d) not commence the sale of alcoholic beverages until one hour prior 28 to the start of the first motion picture, and cease all sales of alco- 29 holic beverages after the conclusion of the final motion picture. 30 § 2. Subdivision 6 of section 64-a of the alcoholic beverage control 31 law, as amended by chapter 475 of the laws of 2011, is amended to read 32 as follows: 33 6. No special on-premises license shall be granted except for premises 34 in which the principal business shall be (a) the sale of food or bever- 35 ages at retail for consumption on the premises or (b) the operation of a 36 legitimate theatre, including a motion picture theatre that is a build- 37 ing or facility which is regularly used and kept open primarily for the 38 exhibition of motion pictures for at least five out of seven days a 39 week, or on a regular seasonal basis of no less than six contiguous 40 weeks, to the general public where all auditorium seating is permanently 41 affixed to the floor and at least sixty-five percent of the motion 42 picture theatre's annual gross revenues is the combined result of admis- 43 sion revenue for the showing of motion pictures and the sale of food and 44 non-alcoholic beverages, or such other lawful adult entertainment or 45 recreational facility as the liquor authority, giving due regard to the 46 convenience of the public and the strict avoidance of sales prohibited 47 by this chapter, shall by regulation classify for eligibility. [Nothing48contained in this subdivision shall be deemed to authorize the issuance49of a license to a motion picture theatre, except those meeting the defi-50nition of restaurant and meals, and where all seating is at tables where51meals are served.] 52 § 3. Subdivision 8 of section 64-a of the alcoholic beverage control 53 law, as added by chapter 531 of the laws of 1964, is amended to read as 54 follows:S. 2009 10 A. 3009 1 8. Every special on-premises licensee shall regularly keep food avail- 2 able for sale to its customers for consumption on the premises. The 3 availability of sandwiches, soups or other foods, whether fresh, proc- 4 essed, pre-cooked or frozen, shall be deemed compliance with this 5 requirement. For motion picture theatres licensed under paragraph (b) 6 of subdivision six of this section, food that is typically found in a 7 motion picture theatre, including but not limited to: popcorn, candy, 8 and light snacks, shall be deemed to be in compliance with this require- 9 ment. The licensed premises shall comply at all times with all the regu- 10 lations of the local department of health. Nothing contained in this 11 subdivision, however, shall be construed to require that any food be 12 sold or purchased with any liquor, nor shall any rule, regulation or 13 standard be promulgated or enforced requiring that the sale of food be 14 substantial or that the receipts of the business other than from the 15 sale of liquor equal any set percentage of total receipts from sales 16 made therein. 17 § 4. Subdivision 9 of section 64-a of the alcoholic beverage control 18 law, as added by chapter 531 of the laws of 1964, is amended to read as 19 follows: 20 9. In the case of a motion picture theatre applying for a license 21 under this section, any municipality required to be notified under 22 section one hundred ten-b of this chapter may express an opinion with 23 respect to whether the application should be approved, and such opinion 24 may be considered in determining whether good cause exists to deny any 25 such application. 26 10. The liquor authority may make such rules as it deems necessary to 27 carry out the provisions of this section. 28 § 5. This act shall take effect immediately and shall expire and be 29 deemed repealed 3 years after such date. 30 PART C 31 Section 1. Section 54-f of the state finance law is REPEALED. 32 § 2. Subsection (ggg) of section 606 of the tax law, as added by 33 section 1 of part E of chapter 60 of the laws of 2016, and as relettered 34 by section 1 of part A of chapter 73 of the laws of 2016, is amended to 35 read as follows: 36 (ggg) School tax reduction credit for residents of a city with a popu- 37 lation over one million. (1) For taxable years beginning after two thou- 38 sand fifteen, a school tax reduction credit shall be allowed to a resi- 39 dent individual of the state who is a resident of a city with a 40 population over one million, as provided below. The credit shall be 41 allowed against the taxes authorized by this article reduced by the 42 credits permitted by this article. If the credit exceeds the tax as so 43 reduced, the excess shall be treated as an overpayment of tax to be 44 credited or refunded in accordance with the provisions of section six 45 hundred eighty-six of this article, provided however, that no interest 46 will be paid thereon. For purposes of this subsection, no credit shall 47 be granted to an individual with respect to whom a deduction under 48 subsection (c) of section one hundred fifty-one of the internal revenue 49 code is allowable to another taxpayer for the taxable year. 50 (2) The amount of the credit under this [paragraph] subsection shall 51 be determined based upon the taxpayer's income as defined in subpara- 52 graph (ii) of paragraph (b) of subdivision four of section four hundred 53 twenty-five of the real property tax law.S. 2009 11 A. 3009 1 (3) For taxable years beginning in two thousand sixteen, the credit 2 shall be determined as provided in this paragraph, provided that for the 3 purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) 4 of this paragraph with income of more than two hundred fifty thousand 5 dollars shall not receive a credit. 6 (A) Married individuals filing joint returns and surviving spouses. In 7 the case of married individuals who make a single return jointly and of 8 a surviving spouse, the credit shall be one hundred twenty-five dollars. 9 (B) All others. In the case of an unmarried individual, a head of a 10 household or a married individual filing a separate return, the credit 11 shall be sixty-two dollars and fifty cents. 12 (4) For taxable years beginning after two thousand sixteen, the credit 13 shall equal the "fixed" amount provided by paragraph (4-a) of this 14 subsection plus the "rate reduction" amount provided by paragraph (4-b) 15 of this subsection. 16 (4-a) The "fixed" amount of the credit shall be determined as provided 17 in this paragraph, provided that any taxpayer with income of more than 18 two hundred fifty thousand dollars shall not receive such amount. 19 (A) Married individuals filing joint returns and surviving spouses. In 20 the case of married individuals who make a single return jointly and of 21 a surviving spouse, the "fixed" amount of the credit shall be one 22 hundred twenty-five dollars. 23 (B) All others. In the case of an unmarried individual, a head of a 24 household or a married individual filing a separate return, the "fixed" 25 amount of the credit shall be sixty-two dollars and fifty cents. 26 (4-b) The "rate reduction" amount of the credit shall be determined as 27 provided in this paragraph, provided that any taxpayer with income of 28 more than five hundred thousand dollars shall not receive such amount. 29 (A) For married individuals who make a single return jointly and for a 30 surviving spouse: 31 If the city taxable income is: The "rate reduction" amount is: 32 Not over $21,600 0.171% of the city taxable income 33 Over $21,600 but not over $500,000 $37 plus 0.228% of excess over 34 $21,600 35 Over $500,000 Not applicable 36 (B) For a head of household: 37 If the city taxable income is: The "rate reduction" amount is: 38 Not over $14,400 0.171% of the city taxable income 39 Over $14,400 but not over $500,000 $25 plus 0.228% of excess over 40 $14,400 41 Over $500,000 Not applicable 42 (C) For an unmarried individual or a married individual filing 43 a separate return: 44 If the city taxable income is: The "rate reduction" amount is: 45 Not over $12,000 0.171% of the city taxable income 46 Over $12,000 but not over $500,000 $21 plus 0.228% of excess over 47 $12,000 48 Over $500,000 Not applicable 49 [(3)] (5) Part-year residents. If a taxpayer changes status during the 50 taxable year from resident to nonresident, or from nonresident to resi- 51 dent, the school tax reduction credit authorized by this subsection 52 shall be prorated according to the number of months in the period of 53 residence. 54 § 3. Paragraphs 1, 2 and 3 of subsection (a) of section 1304 of the 55 tax law, as amended by section 2 of part B of chapter 59 of the laws of 56 2015, are amended to read as follows:S. 2009 12 A. 3009 1 (1) Resident married individuals filing joint returns and resident 2 surviving spouses. The tax under this section for each taxable year on 3 the city taxable income of every city resident married individual who 4 makes a single return jointly with his or her spouse under subsection 5 (b) of section thirteen hundred six of this article and on the city 6 taxable income of every city resident surviving spouse shall be deter- 7 mined in accordance with the following tables: 8 (A) For taxable years beginning after two thousand [fourteen] sixteen: 9 If the city taxable income is: The tax is: 10 Not over $21,600 2.7% of the city taxable income 11 Over $21,600 but not $583 plus 3.3% of excess 12 over $45,000 over $21,600 13 Over $45,000 but not $1,355 plus 3.35% of excess 14 over $90,000 over $45,000 15 Over $90,000 $2,863 plus 3.4% of excess 16 over $90,000 17 (B) For taxable year beginning after two thousand fourteen 18 and before two thousand seventeen: 19 If the city taxable income is: The tax is: 20 Not over $21,600 2.55% of the city taxable income 21 Over $21,600 but not $551 plus 3.1% of excess 22 over $45,000 over $21,600 23 Over $45,000 but not $1,276 plus 3.15% of excess 24 over $90,000 over $45,000 25 Over $90,000 but not $2,694 plus 3.2% of excess 26 over $500,000 over $90,000 27 Over $500,000 $16,803 plus 3.4% of excess 28 over $500,000 29 [(B)] (C) For taxable years beginning after two thousand nine and 30 before two thousand fifteen: 31 If the city taxable income is: The tax is: 32 Not over $21,600 2.55% of the city taxable income 33 Over $21,600 but not $551 plus 3.1% of excess 34 over $45,000 over $21,600 35 Over $45,000 but not $1,276 plus 3.15% of excess 36 over $90,000 over $45,000 37 Over $90,000 but not $2,694 plus 3.2% of excess 38 over $500,000 over $90,000 39 Over $500,000 $15,814 plus 3.4% of excess 40 over $500,000 41 (2) Resident heads of households. The tax under this section for each 42 taxable year on the city taxable income of every city resident head of a 43 household shall be determined in accordance with the following tables: 44 (A) For taxable years beginning after two thousand [fourteen] sixteen: 45 If the city taxable income is: The tax is: 46 Not over $14,400 2.7% of the city taxable income 47 Over $14,400 but not $389 plus 3.3% of excess 48 over $30,000 over $14,400 49 Over $30,000 but not $904 plus 3.35% of excessS. 2009 13 A. 3009 1 over $60,000 over $30,000 2 Over $60,000 $1,909 plus 3.4% of excess 3 over $60,000 4 (B) For taxable years beginning after two thousand fourteen and before 5 two thousand sixteen: 6 If the city taxable income is: The tax is: 7 Not over $14,400 2.55% of the city taxable income 8 Over $14,400 but not $367 plus 3.1% of excess 9 over $30,000 over $14,400 10 Over $30,000 but not $851 plus 3.15% of excess 11 over $60,000 over $30,000 12 Over $60,000 but not $1,796 plus 3.2% of excess 13 over $500,000 over $60,000 14 Over $500,000 $16,869 plus 3.4% of excess 15 over $500,000 16 [(B)] (C) For taxable years beginning after two thousand nine and before 17 two thousand fifteen: 18 If the city taxable income is: The tax is: 19 Not over $14,400 2.55% of the city taxable income 20 Over $14,400 but not $367 plus 3.1% of excess 21 over $30,000 over $14,400 22 Over $30,000 but not $851 plus 3.15% of excess 23 over $60,000 over $30,000 24 Over $60,000 but not $1,796 plus 3.2% of excess 25 over $500,000 over $60,000 26 Over $500,000 $15,876 plus 3.4% of excess 27 Over $500,000 28 (3) Resident unmarried individuals, resident married individuals 29 filing separate returns and resident estates and trusts. The tax under 30 this section for each taxable year on the city taxable income of every 31 city resident individual who is not a city resident married individual 32 who makes a single return jointly with his or her spouse under 33 subsection (b) of section thirteen hundred six of this article or a city 34 resident head of household or a city resident surviving spouse, and on 35 the city taxable income of every city resident estate and trust shall be 36 determined in accordance with the following tables: 37 (A) For taxable years beginning after two thousand [fourteen] sixteen: 38 If the city taxable income is: The tax is: 39 Not over $12,000 2.7% of the city taxable income 40 Over $12,000 but not $324 plus 3.3% of excess 41 over $25,000 over $12,000 42 Over $25,000 but not $753 plus 3.35% of excess 43 over $50,000 over $25,000 44 Over $50,000 $1,591 plus 3.4% of excess 45 over $50,000 46 (B) For taxable years beginning after two thousand fourteen and before 47 two thousand seventeen:S. 2009 14 A. 3009 1 If the city taxable income is: The tax is: 2 Not over $12,000 2.55% of the city taxable income 3 Over $12,000 but not $306 plus 3.1% of excess 4 over $25,000 over $12,000 5 Over $25,000 but not $709 plus 3.15% of excess 6 over $50,000 over $25,000 7 Over $50,000 but not $1,497 plus 3.2% of excess 8 over $500,000 over $50,000 9 Over $500,000 $16,891 plus 3.4% 10 of excess over $500,000 11 [(B)] (C) For taxable years beginning after two thousand nine and 12 before two thousand fifteen: 13 If the city taxable income is: The tax is: 14 Not over $12,000 2.55% of the city taxable income 15 Over $12,000 but not $306 plus 3.1% of excess 16 over $25,000 over $12,000 17 Over $25,000 but not $709 plus 3.15% of excess 18 over $50,000 over $25,000 19 Over $50,000 but not $1,497 plus 3.2% of excess 20 over $500,000 over $50,000 21 Over $500,000 $15,897 plus 3.4% 22 of excess over $500,000 23 § 4. Paragraphs 1, 2 and 3 of subsection (a) of section 11-1701 of the 24 administrative code of the city of New York, as amended by section 3 of 25 part B of chapter 59 of the laws of 2015, are amended to read as 26 follows: 27 (1) Resident married individuals filing joint returns and resident 28 surviving spouses. The tax under this section for each taxable year on 29 the city taxable income of every city resident married individual who 30 makes a single return jointly with his or her spouse under subdivision 31 (b) of section 11-1751 of this chapter and on the city taxable income of 32 every city resident surviving spouse shall be determined in accordance 33 with the following tables: 34 (A) For taxable years beginning after two thousand [fourteen] sixteen: 35 If the city taxable income is: The tax is: 36 Not over $21,600 2.7% of the city taxable income 37 Over $21,600 but not $583 plus 3.3% of excess 38 over $45,000 over $21,600 39 Over $45,000 but not $1,355 plus 3.35% of excess 40 over $90,000 over $45,000 41 Over $90,000 $2,863 plus 3.4% of excess 42 over $90,000 43 (B) For taxable years beginning after two thousand fourteen and before 44 two thousand seventeen: 45 If the city taxable income is: The tax is: 46 Not over $21,600 2.55% of the city taxable income 47 Over $21,600 but not $551 plus 3.1% of excess 48 over $45,000 over $21,600 49 Over $45,000 but not $1,276 plus 3.15% of excess 50 over $90,000 over $45,000 51 Over $90,000 but not $2,694 plus 3.2% of excessS. 2009 15 A. 3009 1 over $500,000 over $90,000 2 Over $500,000 $16,803 plus 3.4% of excess 3 over $500,000 4 [(B)] (C) For taxable years beginning after two thousand nine and 5 before two thousand fifteen: 6 If the city taxable income is: The tax is: 7 Not over $21,600 2.55% of the city taxable income 8 Over $21,600 but not $551 plus 3.1% of excess 9 over $45,000 over $21,600 10 Over $45,000 but not $1,276 plus 3.15% of excess 11 over $90,000 over $45,000 12 Over $90,000 but not $2,694 plus 3.2% of excess 13 over $500,000 over $90,000 14 Over $500,000 $15,814 plus 3.4% of excess 15 over $500,000 16 (2) Resident heads of households. The tax under this section for each 17 taxable year on the city taxable income of every city resident head of a 18 household shall be determined in accordance with the following tables: 19 (A) For taxable years beginning after two thousand [fourteen] sixteen: 20 If the city taxable income is: The tax is: 21 Not over $14,400 2.7% of the city taxable income 22 Over $14,400 but not $389 plus 3.3% of excess 23 over $30,000 over $14,400 24 Over $30,000 but not $904 plus 3.35% of excess 25 over $60,000 over $30,000 26 Over $60,000 $1,909 plus 3.4% of excess 27 over $60,000 28 (B) For taxable years beginning after two thousand fourteen and before 29 two thousand sixteen: 30 If the city taxable income is: The tax is: 31 Not over $14,400 2.55% of the city taxable income 32 Over $14,400 but not $367 plus 3.1% of excess 33 over $30,000 over $14,400 34 Over $30,000 but not $851 plus 3.15% of excess 35 over $60,000 over $30,000 36 Over $60,000 but not $1,796 plus 3.2% of excess 37 over $500,000 over $60,000 38 Over $500,000 $16,869 plus 3.4% of excess 39 over $500,000 40 [(B)] (C) For taxable years beginning after two thousand nine and 41 before two thousand fifteen: 42 If the city taxable income is: The tax is: 43 Not over $14,400 2.55% of the city taxable income 44 Over $14,400 but not $367 plus 3.1% of excess 45 over $30,000 over $14,400 46 Over $30,000 but not $851 plus 3.15% of excess 47 over $60,000 over $30,000 48 Over $60,000 but not $1,796 plus 3.2% of excess 49 over $500,000 over $60,000 50 Over $500,000 $15,876 plus 3.4% of excessS. 2009 16 A. 3009 1 over $500,000 2 (3) Resident unmarried individuals, resident married individuals 3 filing separate returns and resident estates and trusts. The tax under 4 this section for each taxable year on the city taxable income of every 5 city resident individual who is not a married individual who makes a 6 single return jointly with his or her spouse under subdivision (b) of 7 section 11-1751 of this chapter or a city resident head of a household 8 or a city resident surviving spouse, and on the city taxable income of 9 every city resident estate and trust shall be determined in accordance 10 with the following tables: 11 (A) For taxable years beginning after two thousand [fourteen] sixteen: 12 If the city taxable income is: The tax is: 13 Not over $12,000 2.7% of the city taxable income 14 Over $12,000 but not $324 plus 3.3% of excess 15 over $25,000 over $12,000 16 Over $25,000 but not $753 plus 3.35% of excess 17 over $50,000 over $25,000 18 Over $50,000 $1,591 plus 3.4% of excess 19 over $50,000 20 (B) For taxable years beginning after two thousand fourteen and before 21 two thousand sixteen: 22 If the city taxable income is: The tax is: 23 Not over $12,000 2.55% of the city taxable income 24 Over $12,000 but not $306 plus 3.1% of excess 25 over $25,000 over $12,000 26 Over $25,000 but not $709 plus 3.15% of excess 27 over $50,000 over $25,000 28 Over $50,000 but not $1,497 plus 3.2% of excess 29 over $500,000 over $50,000 30 Over $500,000 $16,891 plus 3.4% of excess 31 over $500,000 32 [(B)] (C) For taxable years beginning after two thousand nine and 33 before two thousand fifteen: 34 If the city taxable income is: The tax is: 35 Not over $12,000 2.55% of the city taxable income 36 Over $12,000 but not $306 plus 3.1% of excess 37 over $25,000 over $12,000 38 Over $25,000 but not $709 plus 3.15% of excess 39 over $50,000 over $25,000 40 Over $50,000 but not $1,497 plus 3.2% of excess 41 over $500,000 over $50,000 42 Over $500,000 $15,897 plus 3.4% of excess 43 over $500,000 44 § 5. Notwithstanding any provision of law to the contrary, the method 45 of determining the amount to be deducted and withheld from wages on 46 account of taxes imposed by or pursuant to the authority of article 30 47 of the tax law in connection with the implementation of the provisions 48 of this act shall be prescribed by the commissioner of taxation and 49 finance with due consideration to the effect such withholding tables and 50 methods would have on the receipt and amount of revenue. The commission-S. 2009 17 A. 3009 1 er of taxation and finance shall adjust such withholding tables and 2 methods in regard to taxable years beginning in 2017 and after in such 3 manner as to result, so far as practicable, in withholding from an 4 employee's wages an amount substantially equivalent to the tax reason- 5 ably estimated to be due for such taxable years as a result of the 6 provisions of this act. Provided, however, for tax year 2017 the with- 7 holding tables shall reflect as accurately as practicable the full 8 amount of tax year 2017 liability so that such amount is withheld by 9 December 31, 2017. In carrying out his or her duties and responsibil- 10 ities under this section, the commissioner of taxation and finance may 11 prescribe a similar procedure with respect to the taxes required to be 12 deducted and withheld by local laws imposing taxes pursuant to the 13 authority of articles 30, 30-A and 30-B of the tax law, the provisions 14 of any other law in relation to such a procedure to the contrary 15 notwithstanding. 16 § 6. 1. Notwithstanding any provision of law to the contrary, no addi- 17 tion to tax shall be imposed for failure to pay the estimated tax in 18 subsection (c) of section 685 of the tax law and subdivision (c) of 19 section 11-1785 of the administrative code of the city of New York with 20 respect to any underpayment of a required installment due prior to, or 21 within thirty days of, the effective date of this act to the extent that 22 such underpayment was created or increased by the amendments made by 23 this act, provided, however, that the taxpayer remits the amount of any 24 underpayment prior to or with his or her next quarterly estimated tax 25 payment. 26 2. The commissioner of taxation and finance shall take steps to publi- 27 cize the necessary adjustments to estimated tax and, to the extent 28 reasonably possible, to inform the taxpayer of the tax liability changes 29 made by this act. 30 § 7. This act shall take effect immediately and shall apply to taxable 31 years beginning on and after January 1, 2017. 32 PART D 33 Section 1. Subparagraph (i) of paragraph (a) of subdivision 2 of 34 section 1306-a of the real property tax law, as amended by section 6 of 35 part N of chapter 58 of the laws of 2011, is amended to read as follows: 36 (i) The tax savings for each parcel receiving the exemption authorized 37 by section four hundred twenty-five of this chapter shall be computed by 38 subtracting the amount actually levied against the parcel from the 39 amount that would have been levied if not for the exemption, provided 40 however, that [beginning with] for the two thousand eleven-two thousand 41 twelve through two thousand sixteen-two thousand seventeen school [year] 42 years, the tax savings applicable to any "portion" (which as used herein 43 shall mean that part of an assessing unit located within a school 44 district) shall not exceed the tax savings applicable to that portion in 45 the prior school year multiplied by one hundred two percent, with the 46 result rounded to the nearest dollar; and provided further that begin- 47 ning with the two thousand seventeen-two thousand eighteen school year, 48 the tax savings applicable to any portion shall not exceed the tax 49 savings for the prior year. The tax savings attributable to the basic 50 and enhanced exemptions shall be calculated separately. It shall be the 51 responsibility of the commissioner to calculate tax savings limitations 52 for purposes of this subdivision. 53 § 2. This act shall take effect immediately.S. 2009 18 A. 3009 1 PART E 2 Section 1. Subparagraph (ii) of paragraph (b) of subdivision 4 of 3 section 425 of the real property tax law, as amended by section 3 of 4 part E of chapter 83 of the laws of 2002, is amended to read as follows: 5 (ii) The term "income" as used herein shall mean the "adjusted gross 6 income" for federal income tax purposes as reported on the applicant's 7 federal or state income tax return for the applicable income tax year, 8 subject to any subsequent amendments or revisions, reduced by distrib- 9 utions, to the extent included in federal adjusted gross income, 10 received from an individual retirement account and an individual retire- 11 ment annuity; provided that if no such return was filed for the applica- 12 ble income tax year, "income" shall mean the adjusted gross income that 13 would have been so reported if such a return had been filed. Provided 14 further, that effective with exemption applications for final assessment 15 rolls to be completed in two thousand eighteen, where an income-eligi- 16 bility determination is wholly or partly based upon the income of one or 17 more individuals who did not file a return for the applicable income tax 18 year, then in order for the application to be considered complete, each 19 such individual must file a statement with the department showing the 20 source or sources of his or her income for that income tax year, and the 21 amount or amounts thereof, that would have been reported on such a 22 return if one had been filed. Such statement shall be filed at such 23 time, and in such form and manner, as may be prescribed by the depart- 24 ment, and shall be subject to the secrecy provisions of the tax law to 25 the same extent that a personal income tax return would be. The depart- 26 ment shall make such forms and instructions available for the filing of 27 such statements. 28 § 2. Subparagraph (iv) of paragraph (b) of subdivision 4 of section 29 425 of the real property tax law, as amended by chapter 451 of the laws 30 of 2015, is amended to read as follows: 31 (iv) (A) Effective with applications for the enhanced exemption on 32 final assessment rolls to be completed in two thousand [three] eighteen, 33 the application form shall indicate that [the] all owners of the proper- 34 ty and any owners' spouses residing on the premises [may authorize the35assessor to] must have their income eligibility verified annually [ther-36eafter] by the [state] department [of taxation and finance, in lieu of37furnishing copies of the applicable income tax return or returns with38the application. If the owners of the property and any owners' spouses39residing on the premises elect to participate in this program, which40shall be known as the STAR income verification program, they] and must 41 furnish their taxpayer identification numbers in order to facilitate 42 matching with records of the department. [Thereafter, their] The income 43 eligibility of such persons shall be verified annually by the 44 department, and the assessor shall not request income documentation from 45 them[, unless such department advises the assessor that they do not46satisfy the applicable income eligibility requirements, or that it is47unable to determine whether they satisfy those requirements]. All appli- 48 cants for the enhanced exemption and all assessing units shall be 49 required to participate in this program, which shall be known as the 50 STAR income verification program. 51 (B) Where the commissioner finds that the enhanced exemption should be 52 replaced with a basic exemption because the income limitation applicable 53 to the enhanced exemption has been exceeded, he or she shall provide the 54 property owners with notice and an opportunity to submit to the commis- 55 sioner evidence to the contrary. Where the commissioner finds that theS. 2009 19 A. 3009 1 enhanced exemption should be removed or denied without being replaced 2 with a basic exemption because the income limitation applicable to the 3 basic exemption has also been exceeded, he or she shall provide the 4 property owners with notice and an opportunity to submit to the commis- 5 sioner evidence to the contrary. In either case, if the owners fail to 6 respond to such notice within forty-five days from the mailing thereof, 7 or if their response does not show to the commissioner's satisfaction 8 that the property is eligible for the exemption claimed, the commission- 9 er shall direct the assessor or other person having custody or control 10 of the assessment roll or tax roll to either replace the enhanced 11 exemption with a basic exemption, or to remove or deny the enhanced 12 exemption without replacing it with a basic exemption, as appropriate. 13 The commissioner shall further direct such person to correct the roll 14 accordingly. Such a directive shall be binding upon the assessor or 15 other person having custody or control of the assessment roll or tax 16 roll, and shall be implemented by such person without the need for 17 further documentation or approval. 18 (C) Notwithstanding any provision of law to the contrary, neither an 19 assessor nor a board of assessment review has the authority to consider 20 an objection to the replacement or removal or denial of an exemption 21 pursuant to this subdivision, nor may such an action be reviewed in a 22 proceeding to review an assessment pursuant to title one or one-A of 23 article seven of this chapter. Such an action may only be challenged 24 before the department of taxation and finance. If a taxpayer is dissat- 25 isfied with the department's final determination, the taxpayer may 26 appeal that determination to the state board of real property tax 27 services in a form and manner to be prescribed by the commissioner. Such 28 appeal shall be filed within forty-five days from the issuance of the 29 department's final determination. If dissatisfied with the state board's 30 determination, the taxpayer may seek judicial review thereof pursuant to 31 article seventy-eight of the civil practice law and rules. The taxpayer 32 shall otherwise have no right to challenge such final determination in a 33 court action, administrative proceeding or any other form of legal 34 recourse against the commissioner, the department of taxation and 35 finance, the state board of real property tax services, the assessor or 36 other person having custody or control of the assessment roll or tax 37 roll regarding such action. 38 § 3. Subparagraphs (v) and (vi) of paragraph (b) of subdivision 4 of 39 section 425 of the real property tax law are REPEALED. 40 § 4. Paragraphs (b) and (c) of subdivision 5 of section 425 of the 41 real property tax law are REPEALED. 42 § 5. Paragraph (d) of subdivision 5 of section 425 of the real proper- 43 ty tax law, as amended by section 5 of part E of chapter 83 of the laws 44 of 2002 and subparagraph (i) as further amended by subdivision (b) of 45 section 1 of part W of chapter 56 of the laws of 2010, is amended to 46 read as follows: 47 (d) Third party notice. (i) A senior citizen eligible for the enhanced 48 exemption may request that a notice be sent to an adult third party. 49 Such request shall be made on a form prescribed by the commissioner and 50 shall be submitted to the assessor of the assessing unit in which the 51 eligible taxpayer resides no later than sixty days before the first 52 taxable status date to which it is to apply. Such form shall provide a 53 section whereby the designated third party shall consent to such desig- 54 nation. Such request shall be effective upon receipt by the assessor. 55 The assessor shall maintain a list of all eligible property owners whoS. 2009 20 A. 3009 1 have requested notices pursuant to this paragraph and shall furnish a 2 copy of such list to the department upon request. 3 (ii) [In the case of a senior citizen who has not elected to partic-4ipate in the STAR income verification program, a notice shall be sent to5the designated third party at least thirty days prior to each ensuing6taxable status date; provided that no such notice need be sent in the7first year if the request was not received by the assessor at least8sixty days before the applicable taxable status date. Such notice shall9read substantially as follows:10"On behalf of (identify senior citizen or citizens), you are advised11that his, her, or their renewal application for the enhanced STAR12exemption must be filed with the assessor no later than (enter date).13You are encouraged to remind him, her, or them of that fact, and to14offer assistance if needed, although you are under no legal obligation15to do so. Your cooperation and assistance are greatly appreciated."16(iii) In the case of a senior citizen who has elected to participate17in the STAR income verification program, a] A notice shall be sent to 18 the designated third party whenever the assessor or department sends a 19 notice to the senior citizen regarding the possible removal of the 20 enhanced STAR exemption. When the exemption is subject to removal 21 because the commissioner has determined that the income eligibility 22 requirement is not satisfied, such notice shall be sent to the third 23 party by the department. When the exemption is subject to removal 24 because the assessor has determined that any other eligibility require- 25 ment is not satisfied, such notice shall be sent to the third party by 26 the assessor. Such notice shall read substantially as follows: 27 "On behalf of (identify senior citizen or citizens), you are advised 28 that his, her, or their enhanced STAR exemption is at risk of being 29 removed. You are encouraged to make sure that he, she or they are aware 30 of that fact, and to offer assistance if needed, although you are under 31 no legal obligation to do so. Your cooperation and assistance are great- 32 ly appreciated." 33 [(iv)] (iii) The obligation to mail such notices shall cease if the 34 eligible taxpayer cancels the request or ceases to qualify for the 35 enhanced STAR exemption. 36 § 6. Paragraph (c) of subdivision 6 of section 425 of the real proper- 37 ty tax law is REPEALED. 38 § 7. Subdivision 9-b of section 425 of the real property tax law, as 39 added by section 8 of part E of chapter 83 of the laws of 2002 and para- 40 graph (b) as amended by chapter 742 of the laws of 2005 and further 41 amended by subdivision (b) of section 1 of part W of chapter 56 of the 42 laws of 2010, is amended to read as follows: 43 9-b. Duration of exemption; enhanced exemption. (a) [In the case of44persons who have elected to participate in the STAR income verification45program, the] The enhanced exemption, once granted, shall remain in 46 effect until discontinued in the manner provided in this section. 47 (b) [In the case of persons who have not elected to participate in the48STAR income verification program, the enhanced exemption shall apply for49a term of one year. To continue receiving such enhanced exemption, a50renewal application must be filed annually with the assessor on or51before the applicable taxable status date on a form prescribed by the52commissioner. Provided, however, that if a renewal application is not so53filed, the assessor shall discontinue the enhanced exemption but shall54grant the basic exemption, subject to the provisions of subdivision55eleven of this section.S. 2009 21 A. 3009 1(c) Whether or not the recipients of an enhanced STAR exemption have2elected to participate in the STAR income verification program, the] The 3 assessor [may review their] shall review the continued compliance of 4 recipients of the enhanced exemption with the applicable ownership and 5 residency requirements to the same extent as if they were receiving a 6 basic STAR exemption. 7 [(d) Notwithstanding the foregoing provisions of this subdivision, the8enhanced exemption shall be continued without a renewal application as9long as the property continues to be eligible for the senior citizens10exemption authorized by section four hundred sixty-seven of this title.] 11 § 8. Section 425 of the real property tax law is amended by adding a 12 new subdivision 14-a to read as follows: 13 14-a. Implementation of certain eligibility determinations. When a 14 taxpayer's eligibility for exemption under this section for a school 15 year is affected by a determination made in accordance with subparagraph 16 (iv) of paragraph (b) of subdivision four of this section or paragraph 17 (c) or (d) of subdivision fourteen of this section, and the determi- 18 nation is made after the school district taxes for that school year have 19 been levied, the provisions of this subdivision shall be applicable. 20 (a) if the determination restores or increases the taxpayer's 21 exemption for that school year, the commissioner is authorized to remit 22 the excess directly to the property owner upon receiving confirmation 23 that the taxpayer's original school tax bill has been paid in full. The 24 amounts payable by the commissioner under this paragraph shall be paid 25 from the account established for the payment of STAR benefits to late 26 registrants pursuant to subparagraph (iii) of paragraph (a) of subdivi- 27 sion fourteen of this section. When the commissioner implements the 28 determination in this manner, he or she shall so notify the assessor and 29 county director of real property tax services, but no correction shall 30 be made to the assessment roll or tax roll for that school year, and no 31 refund shall be issued by the school authorities to the property owner 32 or his or her agent for the excessive amount of school taxes paid for 33 that school year. 34 (b) If the determination removes, denies or decreases the taxpayer's 35 exemption for that school year, the commissioner is authorized to 36 collect the shortfall directly from the owners of the property, together 37 with interest, by utilizing any of the procedures for collection, levy, 38 and lien of personal income tax set forth in article twenty-two of the 39 tax law, and any other relevant procedures referenced within the 40 provisions of such article. When the commissioner implements the deter- 41 mination in this manner, he or she shall so notify the assessor and 42 county director of real property tax services, but no correction shall 43 be made to the assessment roll or tax roll for that school year, and no 44 corrected school tax bill shall be sent to the taxpayer for that school 45 year. 46 § 9. Section 171-o of the tax law is REPEALED. 47 § 10. Subparagraph (B) of paragraph 1 of subsection (eee) of section 48 606 of the tax law, as amended by section 8 of part A of chapter 73 of 49 the laws of 2016, is amended to read as follows: 50 (B) "Affiliated income" shall mean for purposes of the basic STAR 51 credit, the combined income of all of the owners of the parcel who 52 resided primarily thereon as of December thirty-first of the taxable 53 year, and of any owners' spouses residing primarily thereon as of such 54 date, and for purposes of the enhanced STAR credit, the combined income 55 of all of the owners of the parcel as of December thirty-first of the 56 taxable year, and of any owners' spouses residing primarily thereon asS. 2009 22 A. 3009 1 of such date; provided that for both purposes the income to be so 2 combined shall be the "adjusted gross income" for the taxable year as 3 reported for federal income tax purposes, or that would be reported as 4 adjusted gross income if a federal income tax return were required to be 5 filed, reduced by distributions, to the extent included in federal 6 adjusted gross income, received from an individual retirement account 7 and an individual retirement annuity. For taxable years beginning on 8 and after January first, two thousand eighteen, where an income-eligi- 9 bility determination is wholly or partly based upon the income of one or 10 more individuals who did not file a return pursuant to section six 11 hundred fifty-one of this article for the applicable income tax year, 12 then in order to be eligible for the credit authorized by this 13 subsection, each such individual must file a statement with the depart- 14 ment showing the source or sources of his or her income for that income 15 tax year, and the amount or amounts thereof, that would have been 16 reported on such a return if one had been filed. Such statement shall be 17 filed at such time, and in such form and manner, as may be prescribed by 18 the department, and shall be subject to the provisions of section six 19 hundred ninety-seven of this article to the same extent that a return 20 would be. The department shall make such forms and instructions avail- 21 able for the filing of such statements. Provided further, that if the 22 qualified taxpayer was an owner of the property during the taxable year 23 but did not own it on December thirty-first of the taxable year, then 24 the determination as to whether the income of an individual should be 25 included in "affiliated income" shall be based upon the ownership and/or 26 residency status of that individual as of the first day of the month 27 during which the qualified taxpayer ceased to be an owner of the proper- 28 ty, rather than as of December thirty-first of the taxable year. 29 § 11. No application for an enhanced exemption on a final assessment 30 roll to be completed in 2018 may be approved if the applicants have not 31 enrolled in the STAR income verification program established by subpara- 32 graph (iv) of paragraph (b) of subdivision 4 of section 425 of the real 33 property tax law as amended by section two of this act, regardless of 34 when the application was filed. The assessor shall notify such appli- 35 cants that participation in that program has become mandatory for all 36 applicants and that their applications cannot be approved unless they 37 enroll therein. The commissioner of taxation and finance shall provide a 38 form for assessors to use, at their option, when making this notifica- 39 tion. 40 § 12. This act shall take effect immediately. 41 PART F 42 Section 1. Section 928-a of the real property tax law, as added by 43 chapter 680 of the laws of 1994, subdivision 1 as further amended by 44 subdivision (b) of section 1 of part W of chapter 56 of the laws of 2010 45 and subdivision 2 as amended by chapter 199 of the laws of 1997, is 46 amended to read as follows: 47 § 928-a. Partial payment of taxes. 1. (a) Notwithstanding the 48 provisions of any general or special law to the contrary, [the board of49supervisors or the county legislature of any county may by resolution50authorize the collecting officers in one or more of the classes of51municipal corporations described herein] each collecting officer is 52 hereby authorized to accept from any taxpayer at any time partial 53 payments for or on account of taxes, special ad valorem levies or 54 special assessments [in such amount or manner and apply such payments onS. 2009 23 A. 3009 1account thereof in such manner as may be prescribed by such resolution;2provided, however, that such resolution], unless the governing body of 3 the municipal corporation that employs the collecting officer has: (i) 4 passed a resolution disallowing partial payments or (ii) passed a resol- 5 ution limiting the conditions under which partial payments will be 6 accepted, in which case partial payments shall be accepted in accordance 7 with the conditions set forth in the resolution. 8 (b) Such resolution may require a service charge not to exceed ten 9 dollars to be paid with each partial payment. Such service charge shall 10 belong to the municipal corporation that employs the collecting officer. 11 (c) Where a statement of taxes contains separate charges for separate 12 purposes, any partial payments shall be applied proportionately thereto. 13 (d) Where school district taxes are payable to the collecting officer 14 of a city or town that has not acted to disallow partial payments, the 15 governing body of the school district may pass a resolution disallowing 16 partial payments for school district purposes. If it has not done so, 17 then the collecting officer shall be authorized to accept partial 18 payments of school district taxes under the same conditions as may apply 19 to city or town taxes. 20 (e) Any resolution adopted pursuant to this section shall be adopted 21 at least sixty days prior to the preparation and delivery of the tax 22 rolls to the appropriate collecting officers. A copy of any resolution 23 [enacting, amending or repealing any such partial payment program] 24 adopted pursuant to this section, or amending or repealing a resolution 25 adopted pursuant to this section, shall be filed with the commissioner 26 and, in the case of a resolution adopted by a school district, with the 27 city or town clerk, no later than thirty days after the adoption there- 28 of. 29 2. [Such resolution shall apply to one or more of the following class-30es of municipal corporations: (a) all towns within the county; (b) all31cities for which the county enforces the collection of delinquent taxes;32or (c) all villages for which the county enforces the collection of33delinquent taxes. If the resolution does not specify the class or class-34es of municipal corporations to which it applies, it shall be deemed to35apply only to the towns in the county.363.] After any partial payment authorized pursuant to this section has 37 been paid, interest and penalties shall be charged against the unpaid 38 balance only. The acceptance of a partial payment by any official pursu- 39 ant to this section shall not be deemed to affect any liens and powers 40 of any [county] municipal corporation conferred in any general or 41 special act, but such rights and powers shall remain in full force and 42 effect to enforce collection of the unpaid balance of such tax or tax 43 liens together with interest, penalties and other lawful charges. 44 3. A collecting officer who is authorized to accept partial payments 45 pursuant to this section may not decline to do so. 46 4. Nothing contained herein shall be construed to authorize a collect- 47 ing officer to accept a partial payment after the expiration of his or 48 her warrant, or at any other time that such collecting officer is not 49 authorized to accept tax payments. 50 § 2. This act shall take effect immediately and shall apply to the 51 collection of real property taxes, special ad valorem levies and special 52 assessments for fiscal years beginning on and after January 1, 2019. 53 PART GS. 2009 24 A. 3009 1 Section 1. Paragraph 7 of subsection (eee) of section 606 of the tax 2 law, as amended by section 8 of part A of chapter 73 of the laws of 3 2016, is amended to read as follows: 4 (7) Disclosure of incomes and other information. (A) Where the 5 commissioner has denied a taxpayer's claim for the credit authorized by 6 this subsection in whole or in part on the grounds that the affiliated 7 income of the parcel in question exceeds the applicable limit, the 8 commissioner shall have the authority to reveal to that taxpayer the 9 names and incomes of the other taxpayers whose incomes were included in 10 the computation of such affiliated income. 11 (B) Notwithstanding any provision of law to the contrary, the names 12 and addresses of individuals who have applied for or are receiving the 13 credit authorized by this subsection shall be public information to the 14 same extent as the names and addresses of individuals who have applied 15 for or are receiving the STAR exemption authorized by section four 16 hundred twenty-five of the real property tax law. 17 § 2. This act shall take effect immediately. 18 PART H 19 Section 1. Subparagraph (ii) of paragraph (k) of subdivision 2 of 20 section 425 of the real property tax law, as amended by section 2 of 21 part A of chapter 405 of the laws of 1999, is amended to read as 22 follows: 23 (ii) That proportion of the assessment of such real property owned by 24 a cooperative apartment corporation determined by the relationship of 25 such real property vested in such tenant-stockholder to such entire 26 parcel and the buildings thereon owned by such cooperative apartment 27 corporation in which such tenant-stockholder resides shall be subject to 28 exemption from taxation pursuant to this section and any exemption so 29 granted shall be credited by the appropriate taxing authority against 30 the assessed valuation of such real property. Upon the completion of the 31 final assessment roll, or as soon thereafter as is practicable, the 32 assessor shall forward to the cooperative apartment corporation a state- 33 ment setting forth the exemption attributable to each eligible tenant- 34 stockholder. The reduction in real property taxes attributable to each 35 eligible tenant-stockholder shall be credited by the cooperative apart- 36 ment corporation against the amount of such taxes otherwise payable by 37 or chargeable to such tenant-stockholder. The assessor shall also 38 forward to the commissioner, at the time and in the manner prescribed by 39 the commissioner, a statement setting forth the taxable assessed value 40 attributable to each tenant-stockholder, without regard to the 41 exemption, and such other information as the commissioner shall deem 42 necessary to properly calculate the STAR credit authorized by subsection 43 (eee) of section six hundred six of the tax law for those tenant-stock- 44 holders who qualify for it. 45 § 2. Subparagraph (E) of paragraph 1 of subsection (eee) of section 46 606 of the tax law, as amended by section 8 of part A of chapter 73 of 47 the laws of 2016, is amended to read as follows: 48 (E) "Qualifying taxes" means the school district taxes that were 49 levied upon the taxpayer's primary residence for the associated fiscal 50 year that were actually paid by the taxpayer during the taxable year; 51 or, in the case of a city school district that is subject to article 52 fifty-two of the education law, the combined city and school district 53 taxes that were levied upon the taxpayer's primary residence for the 54 associated fiscal year that were actually paid by the taxpayer duringS. 2009 25 A. 3009 1 the taxable year. Provided, however, that in the case of a cooperative 2 apartment, "qualifying taxes" means the school district taxes that would 3 have been levied upon the tenant-stockholder's primary residence if it 4 were separately assessed, as determined by the commissioner based on the 5 statement provided by the assessor pursuant to subparagraph (ii) of 6 paragraph (k) of subdivision two of section four hundred twenty-five of 7 the real property tax law, or in the case of a cooperative apartment 8 corporation that is described in subparagraph (iv) of paragraph (k) of 9 subdivision two of section four hundred twenty-five of the real property 10 tax law, one third of such amount. In no case shall the term "qualifying 11 taxes" be construed to include penalties or interest. 12 § 3. Subparagraph (A) of paragraph 6 of subsection (eee) of section 13 606 of the tax law is REPEALED. 14 § 4. This act shall take effect immediately, provided that section one 15 of this act shall apply to final assessment rolls used to levy school 16 taxes for school years beginning on and after July 1, 2017, and provided 17 further that sections two and three of this act shall apply to taxable 18 years beginning on and after January 1, 2017. 19 PART I 20 Section 1. Section 2 of chapter 540 of the laws of 1992, amending the 21 real property tax law relating to oil and gas charges, as amended by 22 section 1 of part C of chapter 59 of the laws of 2014, is amended to 23 read as follows: 24 § 2. This act shall take effect immediately and shall be deemed to 25 have been in full force and effect on and after April 1, 1992; provided, 26 however that any charges imposed by section 593 of the real property tax 27 law as added by section one of this act shall first be due for values 28 for assessment rolls with tentative completion dates after July 1, 1992, 29 and provided further, that this act shall remain in full force and 30 effect until March 31, [2018] 2021, at which time section 593 of the 31 real property tax law as added by section one of this act shall be 32 repealed. 33 § 2. This act shall take effect immediately. 34 PART J 35 Section 1. Subdivision 5 of section 81 of the state finance law, as 36 added by chapter 432 of the laws of 2016, is amended to read as follows: 37 5. Moneys shall be payable from the fund on the audit and warrant of 38 the comptroller on vouchers approved and certified by the commissioner 39 of health, for veterans' homes operated by the department of health, and 40 by the [commissioner of education] chancellor of the state university of 41 New York, for the veterans' home operated by the state university of New 42 York. 43 § 2. This act shall take effect immediately and shall be deemed to 44 have been in full force and effect on and after November 14, 2016. 45 PART K 46 Section 1. Section 352 of the economic development law, as added by 47 section 1 of part MM of chapter 59 of the laws of 2010, subdivisions 7, 48 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 as amended and 49 subdivision 11 as added by section 1 of part K of chapter 59 of the laws 50 of 2015, is amended to read as follows:S. 2009 26 A. 3009 1 § 352. Definitions. For the purposes of this article: 2 1. "Agriculture" means both agricultural production (establishments 3 performing the complete farm or ranch operation, such as farm owner-op- 4 erators, tenant farm operators, and sharecroppers) and agricultural 5 support (establishments that perform one or more activities associated 6 with farm operation, such as soil preparation, planting, harvesting, and 7 management, on a contract or fee basis). 8 2. "Back office operations" means a business function that may include 9 one or more of the following activities: customer service, information 10 technology and data processing, human resources, accounting and related 11 administrative functions. 12 3. "Benefit-cost ratio" means the following calculation: the numerator 13 is the sum of (i) the value of all remuneration projected to be paid for 14 all net new jobs during the period of participation in the program, and 15 (ii) the value of capital investments to be made by the business enter- 16 prise during the period of participation in the program, and the denomi- 17 nator is the amount of total tax benefits under this article that will 18 be used and refunded. 19 4. "Certificate of eligibility" means the document issued by the 20 department to an applicant that has completed an application to be 21 admitted into the excelsior jobs program and has been accepted into the 22 program by the department. Possession of a certificate of eligibility 23 does not by itself guarantee the eligibility to claim the tax credit. 24 5. "Certificate of tax credit" means the document issued to a partic- 25 ipant by the department, after the department has verified that the 26 participant has met all applicable eligibility criteria in this article. 27 The certificate shall be issued annually if such criteria are satisfied 28 and shall specify the exact amount of each of the tax credit components 29 under this article that a participant may claim, pursuant to section 30 three hundred fifty-five of this article, and shall specify the taxable 31 year in which such credit may be claimed. 32 6. "Distribution center" means a large scale facility involving proc- 33 essing, repackaging and/or movement of finished or semi-finished goods 34 to retail locations across a multi-state area. 35 7. "Entertainment company" means a corporation, partnership, limited 36 partnership, or other entity principally engaged in the production or 37 post production of (i) motion pictures, which shall include feature- 38 length films and television films, (ii) instructional videos, (iii) 39 televised commercial advertisements, (iv) animated films or cartoons, 40 (v) music videos, (vi) television programs, which shall include, but not 41 be limited to, television series, television pilots, and single tele- 42 vision episodes, or (vii) programs primarily intended for radio broad- 43 cast. "Entertainment company" shall not include an entity (i) principal- 44 ly engaged in the live performance of events, including, but not limited 45 to, theatrical productions, concerts, circuses, and sporting events, 46 (ii) principally engaged in the production of content intended primarily 47 for industrial, corporate or institutional end-users, (iii) principally 48 engaged in the production of fundraising films or programs, or (iv) 49 engaged in the production of content for which records are required 50 under section 2257 of title 18, United States code, to be maintained 51 with respect to any performer in such production. 52 8. "Financial services data centers or financial services customer 53 back office operations" means operations that manage the data or 54 accounts of existing customers or provide product or service information 55 and support to customers of financial services companies, including 56 banks, other lenders, securities and commodities brokers and dealers,S. 2009 27 A. 3009 1 investment banks, portfolio managers, trust offices, and insurance 2 companies. 3 9. "Investment zone" shall mean an area within the state that had been 4 designated under paragraph (i) of subdivision (a) and subdivision (d) of 5 section nine hundred fifty-eight of the general municipal law that was 6 wholly contained within up to four distinct and separate contiguous 7 areas as of the date immediately preceding the date the designation of 8 such area expired pursuant to section nine hundred sixty-nine of the 9 general municipal law. 10 10. "Life sciences" means the fields of biotechnology, pharmaceu- 11 ticals, biomedical technologies, life systems technologies, health 12 informatics, health robotics and biomedical devices. 13 11. "Life sciences company" means a corporation, partnership, limited 14 partnership, or other entity engaged in life sciences, and an organiza- 15 tion or institution that devotes the majority of its efforts in the 16 various stages of research, development, technology transfer and commer- 17 cialization related to life sciences. 18 12. "Manufacturing" means the process of working raw materials into 19 products suitable for use or which gives new shapes, new quality or new 20 combinations to matter which has already gone through some artificial 21 process by the use of machinery, tools, appliances, or other similar 22 equipment. "Manufacturing" does not include an operation that involves 23 only the assembly of components, provided, however, the assembly of 24 motor vehicles or other high value-added products shall be considered 25 manufacturing. 26 [11.] 13. "Music production" means the process of creating sound 27 recordings of at least eight minutes, recorded in professional sound 28 studios, intended for commercial release. "Music production" does not 29 include recording of live concerts, or recordings that are primarily 30 spoken word or wildlife or nature sounds, or produced for instructional 31 use or advertising or promotional purposes. 32 [12.] 14. "Net new jobs" means: 33 (a) jobs created in this state that (i) are new to the state, 34 (ii) have not been transferred from employment with another business 35 located in this state including from a related person in this state, 36 (iii) are either full-time wage-paying jobs or equivalent to a full- 37 time wage-paying job requiring at least thirty-five hours per week, and 38 (iv) are filled for more than six months; or 39 (b) jobs obtained by an entertainment company in this state (i) as a 40 result of the termination of a licensing agreement with another enter- 41 tainment company, (ii) that the commissioner determines to be at risk of 42 leaving the state as a direct result of the termination, (iii) that are 43 either full-time wage-paying jobs or equivalent to a full-time wage-pay- 44 ing job requiring at least thirty-five hours per week, and (iv) that are 45 filled for more than six months. 46 [13.] 15. "Participant" means a business entity that: 47 (a) has completed an application prescribed by the department to be 48 admitted into the program; 49 (b) has been issued a certificate of eligibility by the department; 50 (c) has demonstrated that it meets the eligibility criteria in section 51 three hundred fifty-three and subdivision two of section three hundred 52 fifty-four of this article; and 53 (d) has been certified as a participant by the commissioner. 54 [14.] 16. "Preliminary schedule of benefits" means the maximum aggre- 55 gate amount of each component of the tax credit that a participant in 56 the excelsior jobs program is eligible to receive pursuant to this arti-S. 2009 28 A. 3009 1 cle. The schedule shall indicate the annual amount of each component of 2 the credit a participant may claim in each of its ten years of eligibil- 3 ity. The preliminary schedule of benefits shall be issued by the 4 department when the department approves the application for admission 5 into the program. The commissioner may amend that schedule, provided 6 that the commissioner complies with the credit caps in section three 7 hundred fifty-nine of this article. 8 [15.] 17. "Qualified investment" means an investment in tangible prop- 9 erty (including a building or a structural component of a building) 10 owned by a business enterprise which: 11 (a) is depreciable pursuant to section one hundred sixty-seven of the 12 internal revenue code; 13 (b) has a useful life of four years or more; 14 (c) is acquired by purchase as defined in section one hundred seven- 15 ty-nine (d) of the internal revenue code; 16 (d) has a situs in this state; and 17 (e) is placed in service in the state on or after the date the certif- 18 icate of eligibility is issued to the business enterprise. 19 [16.] 18. "Regionally significant project" means (a) a manufacturer 20 creating at least fifty net new jobs in the state and making significant 21 capital investment in the state; (b) a business creating at least twenty 22 net new jobs in agriculture in the state and making significant capital 23 investment in the state, (c) a financial services firm, distribution 24 center, or back office operation creating at least three hundred net new 25 jobs in the state and making significant capital investment in the 26 state, (d) a scientific research and development firm creating at least 27 twenty net new jobs in the state, and making significant capital invest- 28 ment in the state, (e) a life sciences company creating at least twenty 29 net new jobs in the state and making significant capital investment in 30 the state or [(e)] (f) an entertainment company creating or obtaining at 31 least two hundred net new jobs in the state and making significant capi- 32 tal investment in the state. Other businesses creating three hundred or 33 more net new jobs in the state and making significant capital investment 34 in the state may be considered eligible as a regionally significant 35 project by the commissioner as well. The commissioner shall promulgate 36 regulations pursuant to section three hundred fifty-six of this article 37 to determine what constitutes significant capital investment for each of 38 the project categories indicated in this subdivision and what additional 39 criteria a business must meet to be eligible as a regionally significant 40 project, including, but not limited to, whether a business exports a 41 substantial portion of its products or services outside of the state or 42 outside of a metropolitan statistical area or county within the state. 43 [17.] 19. "Related person" means a "related person" pursuant to 44 subparagraph (c) of paragraph three of subsection (b) of section four 45 hundred sixty-five of the internal revenue code. 46 [18.] 20. "Remuneration" means wages and benefits paid to an employee 47 by a participant in the excelsior jobs program. 48 [19.] 21. "Research and development expenditures" mean the expenses of 49 the business enterprise that are qualified research expenses under the 50 federal research and development credit under section forty-one of the 51 internal revenue code and are attributable to activities conducted in 52 the state. If the federal research and development credit has expired, 53 then the research and development expenditures shall be calculated as if 54 the federal research and development credit structure and definition in 55 effect in federal tax year two thousand nine were still in effect.S. 2009 29 A. 3009 1 [20.] 22. "Scientific research and development" means conducting 2 research and experimental development in the physical, engineering, and 3 life sciences, including but not limited to agriculture, electronics, 4 environmental, biology, botany, biotechnology, computers, chemistry, 5 food, fisheries, forests, geology, health, mathematics, medicine, ocean- 6 ography, pharmacy, physics, veterinary, and other allied subjects. For 7 the purposes of this article, scientific research and development does 8 not include medical or veterinary laboratory testing facilities. 9 [21.] 23. "Software development" means the creation of coded computer 10 instructions or production or post-production of video games, as defined 11 in subdivision one-a of section six hundred eleven of the general busi- 12 ness law, other than those embedded and used exclusively in advertising, 13 promotional websites or microsites, and also includes new media as 14 defined by the commissioner in regulations. 15 § 2. Subdivisions 1 and 3 of section 353 of the economic development 16 law, as amended by section 2 of part K of chapter 59 of the laws of 17 2015, are amended to read as follows: 18 1. To be a participant in the excelsior jobs program, a business enti- 19 ty shall operate in New York state predominantly: 20 (a) as a financial services data center or a financial services back 21 office operation; 22 (b) in manufacturing; 23 (c) in software development and new media; 24 (d) in scientific research and development; 25 (e) in agriculture; 26 (f) in the creation or expansion of back office operations in the 27 state; 28 (g) in a distribution center; 29 (h) in an industry with significant potential for private-sector 30 economic growth and development in this state as established by the 31 commissioner in regulations promulgated pursuant to this article. In 32 promulgating such regulations the commissioner shall include job and 33 investment criteria; 34 (i) as an entertainment company; [or] 35 (j) in music production; or 36 (k) as a life sciences company. 37 3. For the purposes of this article, in order to participate in the 38 excelsior jobs program, a business entity operating predominantly in 39 manufacturing must create at least ten net new jobs; a business entity 40 operating predominately in agriculture must create at least five net new 41 jobs; a business entity operating predominantly as a financial service 42 data center or financial services customer back office operation must 43 create at least fifty net new jobs; a business entity operating predomi- 44 nantly in scientific research and development must create at least five 45 net new jobs; a business entity operating predominantly in software 46 development must create at least five net new jobs; a business entity 47 creating or expanding back office operations must create at least fifty 48 net new jobs; a business entity operating predominately in music 49 production must create at least five net new jobs; a business entity 50 operating predominantly as an entertainment company must create or 51 obtain at least one hundred net new jobs; or a business entity operating 52 predominantly as a distribution center in the state must create at least 53 seventy-five net new jobs, notwithstanding subdivision five of this 54 section; or a business entity operating predominately as a life sciences 55 company must create at least five net new jobs; or a business entity 56 must be a regionally significant project as defined in this article; orS. 2009 30 A. 3009 1 § 3. Subdivision 4 of section 353 of the economic development law, as 2 amended by section 1 of part C of chapter 68 of the laws of 2013, is 3 amended to read as follows: 4 4. A business entity operating predominantly in one of the industries 5 referenced in paragraphs (a) through (h) or in paragraph (k) of subdivi- 6 sion one of this section but which does not meet the job requirements of 7 subdivision three of this section must have at least twenty-five full- 8 time job equivalents unless such business is a business entity operating 9 predominantly in manufacturing then it must have at least ten full-time 10 job equivalents and must demonstrate that its benefit-cost ratio is at 11 least ten to one. 12 § 4. Subdivision 5 of section 354 of the economic development law, as 13 amended by section 2 of part O of chapter 60 of the laws of 2016, is 14 amended to read as follows: 15 5. A participant may claim tax benefits commencing in the first taxa- 16 ble year that the business enterprise receives a certificate of tax 17 credit or the first taxable year listed on its preliminary schedule of 18 benefits, whichever is later. A participant may claim such benefits for 19 the next nine consecutive taxable years, provided that the participant 20 demonstrates to the department that it continues to satisfy the eligi- 21 bility criteria specified in section three hundred fifty-three of this 22 article and subdivision two of this section in each of those taxable 23 years, and provided that no tax credits may be allowed for taxable years 24 beginning on or after January first, two thousand [twenty-seven] thirty. 25 If, in any given year, a participant who has satisfied the eligibility 26 criteria specified in section three hundred fifty-three of this article 27 realizes job creation less than the estimated amount, the credit shall 28 be reduced by the proportion of actual job creation to the estimated 29 amount, provided the proportion is at least seventy-five percent of the 30 jobs estimated. 31 § 5. Section 359 of the economic development law, as amended by 32 section 1 of part O of chapter 60 of the laws of 2016, is amended to 33 read as follows: 34 § 359. Cap on tax credit. The total amount of tax credits listed on 35 certificates of tax credit issued by the commissioner for any taxable 36 year may not exceed the limitations set forth in this section. One-half 37 of any amount of tax credits not awarded for a particular taxable year 38 in years two thousand eleven through two thousand twenty-four may be 39 used by the commissioner to award tax credits in another taxable year. 40 Credit components in the aggregate With respect to taxable 41 shall not exceed: years beginning in: 42 $ 50 million 2011 43 $ 100 million 2012 44 $ 150 million 2013 45 $ 200 million 2014 46 $ 250 million 2015 47 $ 183 million 2016 48 $ 183 million 2017 49 $ 183 million 2018 50 $ 183 million 2019 51 $ 183 million 2020 52 $ 183 million 2021 53 $ 133 million 2022 54 $ 83 million 2023S. 2009 31 A. 3009 1 $ 36 million 2024 2 Twenty-five percent of tax credits shall be allocated to businesses 3 accepted into the program under subdivision four of section three 4 hundred fifty-three of this article and seventy-five percent of tax 5 credits shall be allocated to businesses accepted into the program under 6 subdivision three of section three hundred fifty-three of this article. 7 Provided, however, if by September thirtieth of a calendar year, the 8 department has not allocated the full amount of credits available in 9 that year to either: (i) businesses accepted into the program under 10 subdivision four of section three hundred fifty-three of this article or 11 (ii) businesses accepted into the program under subdivision three of 12 section three hundred fifty-three of this article, the commissioner may 13 allocate any remaining tax credits to businesses referenced in this 14 paragraph as needed; provided, however, that under no circumstances may 15 the aggregate statutory cap for all program years be exceeded. One 16 hundred percent of the unawarded amounts remaining at the end of two 17 thousand twenty-four may be allocated in subsequent years, notwithstand- 18 ing the fifty percent limitation on any amounts of tax credits not 19 awarded in taxable years two thousand eleven through two thousand twen- 20 ty-four. Provided, however, no tax credits may be allowed for taxable 21 years beginning on or after January first, two thousand [twenty-seven] 22 thirty. 23 § 6. Subdivision (b) of section 31 of the tax law, as amended by 24 section 3 of part O of chapter 60 of the laws of 2016, is amended to 25 read as follows: 26 (b) To be eligible for the excelsior jobs program credit, the taxpayer 27 shall have been issued a "certificate of tax credit" by the department 28 of economic development pursuant to subdivision four of section three 29 hundred fifty-four of the economic development law, which certificate 30 shall set forth the amount of each credit component that may be claimed 31 for the taxable year. A taxpayer may claim such credit for ten consec- 32 utive taxable years commencing in the first taxable year that the 33 taxpayer receives a certificate of tax credit or the first taxable year 34 listed on its preliminary schedule of benefits, whichever is later, 35 provided that no tax credits may be allowed for taxable years beginning 36 on or after January first, two thousand [twenty-seven] thirty. The 37 taxpayer shall be allowed to claim only the amount listed on the certif- 38 icate of tax credit for that taxable year. Such certificate must be 39 attached to the taxpayer's return. No cost or expense paid or incurred 40 by the taxpayer shall be the basis for more than one component of this 41 credit or any other tax credit, except as provided in section three 42 hundred fifty-five of the economic development law. 43 § 7. The tax law is amended by adding a new section 43 to read as 44 follows: 45 § 43. Life sciences tax credits. (a) Life sciences research and devel- 46 opment tax credit. (1) Allowance of credit. (i) A taxpayer that is a 47 qualified life sciences company, or that is a sole proprietor of or a 48 partner in a partnership that is a qualified life sciences company or a 49 shareholder of a New York S corporation that is a qualified life 50 sciences company, and is subject to tax under article nine-A or twenty- 51 two of this chapter, shall be allowed a credit against such tax, pursu- 52 ant to the provisions referred to in subdivision (e) of this section, 53 for a period of five years, as provided in clause (B) of subparagraph 54 (ii) of this paragraph, to be computed as provided in this subdivision.S. 2009 32 A. 3009 1 Such credit may be claimed in the taxable year specified on the certif- 2 icate of tax credit issued to the qualified life sciences company. 3 (ii)(A) For a qualified life sciences company that employs ten or more 4 persons during the taxable year, the amount of the credit shall be equal 5 to fifteen percent of such qualified life sciences company's research 6 and development expenditures in this state for the taxable year. For a 7 qualified life sciences company that employs less than ten persons 8 during the taxable year, the amount of the credit shall be equal to 9 twenty percent of such qualified life sciences company's research and 10 development expenditures in this state for the taxable year. 11 (B) The credit shall be allowed only with respect to the first taxable 12 year during which the criteria set forth in this paragraph are satis- 13 fied, and with respect to each of the four taxable years next following 14 (but only, with respect to each of such years, if such criteria are 15 satisfied). Subsequent certifications of the life sciences company by 16 the department of economic development pursuant to this subdivision 17 shall not extend the five taxable year time limitation on the allowance 18 of the credit set forth in the preceding sentence. 19 (iii) The total amount of credit allowable to a qualified life 20 sciences company, or, if the life sciences company is properly included 21 or required to be included in a combined report, to the combined group, 22 taken in the aggregate, shall not exceed five hundred thousand dollars. 23 If the life sciences company is a partner in a partnership or sharehold- 24 er of a New York S corporation, then the total amount of credit allow- 25 able shall be applied at the entity level, so that the total amount of 26 credit allowable to all the partners or shareholders of each such enti- 27 ty, taken in the aggregate, does not exceed five hundred thousand 28 dollars. 29 (iv) No research and development expenditures made by the life 30 sciences company and used either as the basis for the allowance of the 31 credit provided for pursuant to this subdivision or used in the calcu- 32 lation of the credit provided pursuant to this subdivision shall be used 33 to claim any other credit allowed pursuant to this chapter or be used in 34 the calculation of any other credit allowed pursuant to this chapter. 35 (2) Maximum amount of credits. The aggregate amount of tax credits 36 allowed under this subdivision to taxpayers subject to tax under arti- 37 cles nine-A and twenty-two of this chapter in any taxable year shall be 38 ten million dollars, and shall be allotted from the funds available for 39 tax credits under article seventeen of the economic development law. 40 Such aggregate amount of credits shall be allocated by the department of 41 economic development among taxpayers in order of priority based upon the 42 date of filing an application for allocation of life sciences research 43 and development tax credit with such department. If the total amount of 44 allocated credits applied for in any particular year exceeds the aggre- 45 gate amount of tax credits allowed for such year under this subdivision, 46 such excess shall be treated as having been applied for on the first day 47 of the subsequent year. 48 (b) Angel investor tax credit. (1) Allowance of credit. (i) A taxpayer 49 that is a qualified angel investor, or that is a sole proprietor of or a 50 partner in a partnership that is a qualified angel investor or a share- 51 holder of a New York S corporation that is a qualified angel investor, 52 and is subject to tax under article nine-A or twenty-two of this chap- 53 ter, shall be allowed a credit against such tax, pursuant to the 54 provisions referred to in subdivision (e) of this section, for a period 55 of ten years, to be computed as provided in this subdivision. SuchS. 2009 33 A. 3009 1 credit shall be claimed in the taxable year specified on the certificate 2 of angel investment issued to the qualified angel investor. 3 (ii) The amount of the credit shall be equal to twenty-five percent of 4 each angel investment made during the taxable year. 5 (iii) The total amount of credit allowable to a qualified angel inves- 6 tor, or, if the qualified angel investor is properly included or 7 required to be included in a combined report, to the combined group, 8 taken in the aggregate, shall not exceed two hundred fifty thousand 9 dollars. If the angel investor is a partner in a partnership or share- 10 holder of a New York S corporation, then the total amount of credit 11 allowable shall be applied at the entity level, so that the total amount 12 of credit allowable to all the partners or shareholders of each such 13 entity, taken in the aggregate, does not exceed two hundred fifty thou- 14 sand dollars. 15 (iv) No investment made by the taxpayer and used either as the basis 16 for the allowance of the credit provided for pursuant to this subdivi- 17 sion or used in the calculation of the credit provided pursuant to this 18 subdivision shall be used to claim any other credit allowed pursuant to 19 this chapter or used in the calculation of any other credit allowed 20 pursuant to this chapter. 21 (2) Recapture. (i) If the certificate of angel investment of an angel 22 investor issued by the department of economic development under this 23 section is revoked by such department because the investment made by the 24 angel investor does not meet the eligibility requirements set forth in 25 this section and in regulation, the amount of credit described in this 26 subdivision and claimed by such angel investor prior to that revocation 27 shall be added back as tax in the taxable year in which any such revoca- 28 tion becomes final. 29 (ii) Where a taxpayer sells, transfers or otherwise disposes of corpo- 30 rate stock, a partnership interest or other ownership interest arising 31 from the making of an angel investment that was the basis, in whole or 32 in part, for the allowance of the credit provided for under this subdi- 33 vision, or where an investment that was the basis for such allowance is, 34 in whole or in part, recovered by such taxpayer, and such disposition or 35 recovery occurs during the taxable year or within forty-eight months 36 from the close of the taxable year with respect to which such credit is 37 allowed, the taxpayer shall add back as tax, with respect to the taxable 38 year in which the disposition or recovery described above occurred, the 39 amount of the credit originally claimed by the taxpayer. 40 (3) Maximum amount of credits. The aggregate amount of tax credits 41 allowed under this subdivision to taxpayers subject to tax under arti- 42 cles nine-A and twenty-two of this chapter in any taxable year shall be 43 five million dollars. Such aggregate amount of credits shall be allo- 44 cated by the department of economic development among taxpayers in order 45 of priority based upon the date of filing an application for allocation 46 of angel investor tax credit with such department. If the total amount 47 of allocated credits applied for in any particular year exceeds the 48 aggregate amount of tax credits allowed for such year under this subdi- 49 vision, such excess shall be treated as having been applied for on the 50 first day of the subsequent year. 51 (c) Definitions. As used in this section the following terms shall 52 have the following meanings: 53 (1) "Angel investment" means an investment in the form of a contrib- 54 ution to the capital of the qualified life sciences company, provided 55 that such investment is at risk and is not secured or guaranteed. An 56 "angel investment" does not include any loans, or investments in hedgeS. 2009 34 A. 3009 1 funds or commodity funds with institutional investors or with invest- 2 ments in a business involved in retail, real estate, professional 3 services, gaming or financial services. 4 (2) "Angel investor" means an accredited investor, as defined by the 5 United State Securities and Exchange Commission pursuant to section 6 seventy-seven-b of title fifteen of the United States Code, or a network 7 of accredited investors, that reviews new or proposed businesses for 8 potential investment and that may seek active involvement, such as 9 consulting and mentoring, in a life sciences company. "Angel investor" 10 does not include a person controlling, directly or indirectly, fifty 11 percent or more of the life sciences company invested in by the angel 12 investor or who is involved in the life sciences company in a full-time 13 professional capacity, and does not include a corporation of which such 14 life sciences company is a direct or indirect subsidiary, as defined in 15 section two hundred eight of this chapter. 16 (3) "Certificate of angel investment" means the document issued to a 17 qualified angel investor by the department of economic development for 18 each angel investment made by the qualified angel investor, after the 19 department or economic development has verified that such angel investor 20 has met all applicable criteria in this section to be eligible for the 21 angel investor tax credit allowed under subdivision (b) of this section, 22 including but not limited to certifying that the life sciences company 23 in which the angel investor has made such investment is a qualified life 24 sciences company. The certificate shall be issued annually if such 25 criteria are satisfied and shall specify the exact amount of each angel 26 investment made by the angel investor and the amount of the tax credit 27 that may be claimed by such angel investor, pursuant to subdivision (b) 28 of this section, and shall specify the taxable year in which such credit 29 may be claimed. 30 (4) "Certificate of tax credit" means the document issued to a quali- 31 fied life sciences company by the department of economic development, 32 after the department of economic development has verified that such life 33 sciences company has met all applicable criteria in this section to be 34 eligible for the life sciences research and development tax credit 35 allowed under subdivision (a) of this section, including but not limited 36 to verifying that the life sciences company is a new business. The 37 certificate shall be issued annually if such criteria are satisfied and 38 shall specify the exact amount of the life sciences research and devel- 39 opment tax credit that may be claimed by such qualified life sciences 40 company, pursuant to subdivision (a) of this section, and shall specify 41 the taxable year in which such credit may be claimed. 42 (5) "New business" means any business that qualifies as a new business 43 under either paragraph (f) of subdivision one of section two hundred 44 ten-B or paragraph ten of subsection one of section six hundred six of 45 this chapter. 46 (6) "Qualified angel investor" means an angel investor certified by 47 the department of economic development as an angel investor. 48 (7) "Qualified life sciences company" means a life sciences company, 49 as defined in subdivision eleven of section three hundred fifty-two of 50 the economic development law, that has been certified by the department 51 of economic development as a life sciences company and is a new busi- 52 ness. Provided that, for purposes of the angel investor tax credit 53 provided pursuant to subdivision (b) of this section, a qualified life 54 sciences company shall at the time that the angel investor makes an 55 initial angel investment in such life sciences company employ twenty or 56 fewer persons during the taxable year and shall have had, during theS. 2009 35 A. 3009 1 immediately preceding taxable year, gross receipts of not greater than 2 five hundred thousand dollars. Provided however, for purposes of the 3 credits authorized under this section, the department of economic devel- 4 opment shall not certify as a life sciences company any corporation, 5 partnership, limited partnership, or other entity that has been within 6 the immediately preceding sixty months a related person to an entity 7 that is a life sciences company or an entity that is engaged in scien- 8 tific research and development as defined in subdivision twenty-two of 9 section three hundred fifty-two of the economic development law. 10 (8) "Research and development expenditures" means qualified research 11 expenses as defined in subsection (b) of section 41 of the internal 12 revenue code but excluding wages, provided, however, that such qualified 13 research expenses shall not include amounts under subparagraph (B) of 14 paragraph 1 of subsection (b) of section 41 of the internal revenue code 15 and as further described in paragraph 3 of subsection (b) of section 41 16 of the internal revenue code. If section 41 of the internal revenue code 17 has expired, then the research and development expenses shall be calcu- 18 lated as if the federal research and development credit structure and 19 definition in effect in section 41 in federal tax year two thousand nine 20 were still in effect. 21 (9) "Related person" means a related person as defined in subparagraph 22 (c) of paragraph three of subsection (b) of section 465 of the internal 23 revenue code. For this purpose, a "related person" shall include an 24 entity that would have qualified as a "related person" if it had not 25 been dissolved, liquidated, merged with another entity or otherwise 26 ceased to exist or operate. 27 (d)(1) For purposes of this section, in order to be eligible for the 28 life sciences research and development tax credit allowed under subdivi- 29 sion (a) of this section, a life sciences company must be issued a 30 certificate of tax credit by the department of economic development. 31 The department of economic development shall verify that such life 32 sciences company has met all applicable eligibility criteria in this 33 section before issuing a certificate of tax credit, including but not 34 limited to verifying that the life sciences company is a new business. 35 (2) For purposes of this section, in order to be eligible for the 36 angel investor tax credit allowed under subdivision (b) of this section, 37 an angel investor must be issued a certificate of angel investment by 38 the department of economic development for each angel investment for 39 which the credit is claimed. The department of economic development 40 shall verify that such angel investor has met all applicable eligibility 41 criteria in this section before issuing a certificate of angel invest- 42 ment, including but not limited to certifying that the life sciences 43 company in which the angel investor has made such investment is a quali- 44 fied life sciences company. 45 (3) The commissioner of economic development, after consulting with 46 the commissioner, shall promulgate regulations by October thirty-first, 47 two thousand seventeen to establish procedures for the allocation of tax 48 credits allowed under this section. Such rules and regulations shall 49 include provisions describing the application process for each credit, 50 the due dates for such applications, the eligibility standards for qual- 51 ified life sciences companies, the standards which shall be used to 52 evaluate the applications, the documentation that will be provided to 53 taxpayers to substantiate to the department the amount of tax credits 54 allocated to such taxpayers, and such other provisions as deemed neces- 55 sary and appropriate. Notwithstanding any other provisions to the 56 contrary in the state administrative procedure act, such rules and regu-S. 2009 36 A. 3009 1 lations may be adopted on an emergency basis if necessary to meet such 2 October thirty-first, two thousand seventeen deadline. 3 (e) Cross-references. For application of the credits provided for in 4 this section, see the following provisions of this chapter: 5 (1) article 9-A: section 210-B: subdivision 52. 6 (2) article 22: section 606: subsection (hhh). 7 (f) Notwithstanding any provision of this chapter, (i) employees and 8 officers of the department of economic development and the department 9 shall be allowed and are directed to share and exchange information 10 regarding the credits applied for, allowed, or claimed pursuant to this 11 section and taxpayers who are applying for credits or who are claiming 12 credits, including information contained in or derived from credit claim 13 forms submitted to the department and applications for certification 14 submitted to the department of economic development, and (ii) the 15 commissioner and the commissioner of the department of economic develop- 16 ment may release the names and addresses of any taxpayer claiming these 17 credits and the amount of the credit earned by the taxpayer. Provided, 18 however, if a taxpayer claims either of these credits because it is a 19 member of a limited liability company or a partner in a partnership, 20 only the amount of credit earned by the entity and not the amount of 21 credit claimed by the taxpayer may be released. 22 (g) For purposes of the credits allowed under this section, the number 23 of persons employed by a qualified life sciences company during the 24 taxable year shall be determined by ascertaining the number of such 25 individuals employed full-time by such company, excluding general execu- 26 tive officers, on the thirty-first day of March, the thirtieth day of 27 June, the thirtieth day of September and the thirty-first day of Decem- 28 ber during each taxable year, by adding together the number of such 29 individuals ascertained on each of such dates and dividing the sum so 30 obtained by the number of such dates occurring within such taxable year. 31 An individual employed full-time means an employee in a job consisting 32 of at least thirty-five hours per week, or two or more employees who are 33 in jobs that together constitute the equivalent of a job of at least 34 thirty-five hours per week (full-time equivalent). 35 § 8. Section 210-B of the tax law is amended by adding a new subdivi- 36 sion 52 to read as follows: 37 52. Life sciences tax credits. (a) Life sciences research and develop- 38 ment tax credit. (1) Allowance of credit. A taxpayer that is eligible 39 pursuant to subdivision (a) of section forty-three of this chapter shall 40 be allowed a credit to be computed as provided in such subdivision 41 against the tax imposed by this article. 42 (2) Application of credit. The credit allowed under this paragraph for 43 any taxable year shall not reduce the tax due for such year to less than 44 the amount prescribed in paragraph (d) of subdivision one of section two 45 hundred ten of this article. Provided, however, that if the amount of 46 the credit allowable under this paragraph for any taxable year reduces 47 the tax to such amount or if the taxpayer otherwise pays tax based on 48 the fixed dollar minimum amount, the excess shall be treated as an over- 49 payment of tax to be credited or refunded in accordance with the 50 provisions of section one thousand eighty-six of this chapter. Provided, 51 further, the provisions of subsection (c) of section one thousand eight- 52 y-eight of this chapter notwithstanding, no interest shall be paid ther- 53 eon. 54 (b) Angel investor tax credit. (1) Allowance of credit. A taxpayer 55 that is eligible pursuant to subdivision (b) of section forty-three ofS. 2009 37 A. 3009 1 this chapter shall be allowed a credit to be computed as provided in 2 such subdivision against the tax imposed by this article. 3 (2) Application of credit. The credit allowed under this paragraph for 4 any taxable year shall not reduce the tax due for such year to less than 5 the amount prescribed in paragraph (d) of subdivision one of section two 6 hundred ten of this article. Provided, however, that if the amount of 7 the credit allowable under this paragraph for any taxable year reduces 8 the tax to such amount or if the taxpayer otherwise pays tax based on 9 the fixed dollar minimum amount, the excess shall be treated as an over- 10 payment of tax to be credited or refunded in accordance with the 11 provisions of section one thousand eighty-six of this chapter. Provided, 12 further, the provisions of subsection (c) of section one thousand eight- 13 y-eight of this chapter notwithstanding, no interest shall be paid ther- 14 eon. 15 § 9. Section 606 of the tax law is amended by adding a new subsection 16 (hhh) to read as follows: 17 (hhh) Life sciences tax credits. (1) Life sciences research and 18 development tax credit. (A) Allowance of credit. A taxpayer who is 19 eligible pursuant to subdivision (a) of section forty-three of this 20 chapter shall be allowed a credit to be computed as provided in such 21 subdivision against the tax imposed by this article. 22 (B) Application of credit. If the amount of the credit allowable under 23 this paragraph for any taxable year exceeds the taxpayer's tax for such 24 year, the excess shall be treated as an overpayment of tax to be credit- 25 ed or refunded as provided in section six hundred eighty-six of this 26 article, provided, however, that no interest shall be paid thereon. 27 (2) Angel investor tax credit. (A) A taxpayer who is eligible pursuant 28 to subdivision (b) of section forty-three of this chapter shall be 29 allowed a credit to be computed as provided in such subdivision against 30 the tax imposed by this article. 31 (B) Application of credit. If the amount of the credit allowable under 32 this paragraph for any taxable year exceeds the taxpayer's tax for such 33 year, the excess shall be treated as an overpayment of tax to be credit- 34 ed or refunded as provided in section six hundred eighty-six of this 35 article, provided, however, that no interest shall be paid thereon. 36 § 10. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 37 of the tax law is amended by adding two new clauses (xliii) and (xliv) 38 to read as follows: 39 (xliii) Life sciences research and Amount of credit under paragraph 40 development tax credit under (a) of subdivision fifty-two of 41 paragraph one of subsection (hhh) section two hundred ten-B 42 (xliv) Angel investor tax Amount of credit under paragraph 43 credit under paragraph two of (b) of subdivision fifty-two of 44 subsection (hhh) section two hundred ten-B 45 § 11. This act shall take effect immediately, and shall apply to taxa- 46 ble years beginning on or after January 1, 2018. 47 PART L 48 Section 1. Section 441 of the economic development law, as added by 49 section 1 of part O of chapter 59 of the laws of 2015, is amended to 50 read as follows: 51 § 441. Definitions. As used in this article, the following terms shall 52 have the following meanings:S. 2009 38 A. 3009 1 1. "Approved provider" means an entity meeting such criteria as shall 2 be established by the commissioner in rules and regulations promulgated 3 pursuant to this article, that may provide eligible training to employ- 4 ees of a business entity participating in the employee training incen- 5 tive program; provided that, for internship programs, the business enti- 6 ty shall be an approved provider or an approved provider in contract 7 with such business entity. Such criteria shall ensure that any approved 8 provider possess adequate credentials to provide the training described 9 in an application by a business entity to the commissioner to partic- 10 ipate in the employee training incentive program. 11 2. "Commissioner" means the commissioner of economic development. 12 3. "Eligible training" means (a) training provided by an approved 13 provider that is: 14 (i) to upgrade, retrain or improve the productivity of employees; 15 (ii) provided to employees [filling net new jobs, or to existing16employees] in connection with a significant capital investment by a 17 participating business entity; 18 (iii) determined by the commissioner to satisfy a business need on the 19 part of a participating business entity; 20 (iv) not designed to train or upgrade skills as required by a federal 21 or state entity; 22 (v) not training the completion of which may result in the awarding of 23 a license or certificate required by law in order to perform a job func- 24 tion; and 25 (vi) not culturally focused training; or 26 (b) an internship program in advanced technology or life sciences 27 approved by the commissioner and provided by an approved provider, on or 28 after August first, two thousand fifteen, to provide employment and 29 experience opportunities for current students, recent graduates, and 30 recent members of the armed forces. 31 4.["Net new job" means a job created in this state that:32(a) is new to the state;33(b) has not been transferred from employment with another business34located in this state through an acquisition, merger, consolidation or35other reorganization of businesses or the acquisition of assets of36another business, and has not been transferred from employment with a37related person in this state;38(c) is either a full-time wage-paying job or equivalent to a full-time39wage-paying job requiring at least thirty-five hours per week;40(d) is filled for more than six months;41(e) is filled by a person who has received eligible training; and42(f) is comprised of tasks the performance of which required the person43filling the job to undergo eligible training.] "Life sciences" means the 44 field of biotechnology, pharmaceuticals, biomedical technologies, life 45 systems technologies, health informatics, health robotics or biomedical 46 devices. "Life sciences company" is a business entity or an organization 47 or institution that devotes the majority of its efforts in the various 48 stages of research, development, technology transfer and commercializa- 49 tion related to any life sciences field. 50 5. "Significant capital investment" means a capital investment [of at51least one million dollars] in new business processes or equipment, the 52 cost of which is equal to or exceeds ten dollars for every one dollar of 53 tax credit allowed to an eligible business entity under this program 54 pursuant to subdivision fifty of section two hundred ten-B or subsection 55 (ddd) of section six hundred six of the tax law.S. 2009 39 A. 3009 1 6. "Strategic industry" means an industry in this state, as estab- 2 lished by the commissioner in regulations promulgated pursuant to this 3 article, based upon the following criteria: 4 (a) shortages of workers trained to work within the industry; 5 (b) technological disruption in the industry, requiring significant 6 capital investment for existing businesses to remain competitive; 7 (c) the ability of businesses in the industry to relocate outside of 8 the state in order to attract talent; 9 (d) the potential to recruit minorities and women to be trained to 10 work in the industry in which they are traditionally underrepresented; 11 (e) the potential to create jobs in economically distressed areas, 12 which shall be based on criteria indicative of economic distress, 13 including poverty rates, numbers of persons receiving public assistance, 14 and unemployment rates; or 15 (f) such other criteria as shall be developed by the commissioner in 16 consultation with the commissioner of labor. 17 § 2. Section 442 of the economic development law, as added by section 18 1 of part O of chapter 59 of the laws of 2015, is amended to read as 19 follows: 20 § 442. Eligibility criteria. In order to participate in the employee 21 training incentive program, a business entity must satisfy the following 22 criteria: 23 1. (a) The business entity must operate in the state predominantly in 24 a strategic industry; 25 (b) The business entity must demonstrate that it is obtaining eligible 26 training from an approved provider; 27 (c) The business entity must [create at least ten net new jobs or] 28 make a significant capital investment in connection with the eligible 29 training; and 30 (d) The business entity must be in compliance with all worker 31 protection and environmental laws and regulations. In addition, the 32 business entity may not owe past due state taxes or local property 33 taxes; or 34 2. (a) The business entity, or an approved provider in contract with 35 such business entity, must be approved by the commissioner to provide 36 eligible training in the form of an internship program in advanced tech- 37 nology or at a life sciences company pursuant to paragraph (b) of subdi- 38 vision three of section four hundred forty-one of this article; 39 (b) The business entity must be located in the state; 40 (c) The business entity must be in compliance with all worker 41 protection and environmental laws and regulations. In addition, the 42 business entity must not have past due state taxes or local property 43 taxes; 44 (d) The internship program shall not displace regular employees; 45 (e) The business entity must have less than one hundred employees; and 46 (f) Participation of an individual in an internship program shall not 47 last more than a total of twelve months. 48 § 3. This act shall take effect immediately. 49 PART M 50 Section 1. Paragraph 5 of subdivision (a) of section 24 of the tax 51 law, as amended by chapter 420 of the laws of 2016, is amended to read 52 as follows: 53 (5) For the period two thousand fifteen through two thousand [nine-54teen] twenty-two, in addition to the amount of credit established inS. 2009 40 A. 3009 1 paragraph two of this subdivision, a taxpayer shall be allowed a credit 2 equal to the product (or pro rata share of the product, in the case of a 3 member of a partnership) of ten percent and the amount of wages or sala- 4 ries paid to individuals directly employed (excluding those employed as 5 writers, directors, music directors, producers and performers, including 6 background actors with no scripted lines) by a qualified film production 7 company or a qualified independent film production company for services 8 performed by those individuals in one of the counties specified in this 9 paragraph in connection with a qualified film with a minimum budget of 10 five hundred thousand dollars. For purposes of this additional credit, 11 the services must be performed in one or more of the following counties: 12 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 13 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 14 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 15 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 16 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 17 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, 18 [Suffolk,] Sullivan, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, 19 Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant 20 to the authority of this paragraph shall be five million dollars each 21 year during the period two thousand fifteen through two thousand [nine-22teen] twenty-two of the annual allocation made available to the program 23 pursuant to paragraph four of subdivision (e) of this section. Such 24 aggregate amount of credits shall be allocated by the governor's office 25 for motion picture and television development among taxpayers in order 26 of priority based upon the date of filing an application for allocation 27 of film production credit with such office. If the total amount of allo- 28 cated credits applied for under this paragraph in any year exceeds the 29 aggregate amount of tax credits allowed for such year under this para- 30 graph, such excess shall be treated as having been applied for on the 31 first day of the next year. If the total amount of allocated tax credits 32 applied for under this paragraph at the conclusion of any year is less 33 than five million dollars, the remainder shall be treated as part of the 34 annual allocation made available to the program pursuant to paragraph 35 four of subdivision (e) of this section. However, in no event may the 36 total of the credits allocated under this paragraph and the credits 37 allocated under paragraph five of subdivision (a) of section thirty-one 38 of this article exceed five million dollars in any year during the peri- 39 od two thousand fifteen through two thousand [nineteen] twenty-two. 40 § 2. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 41 amended by section 1-a of part P of chapter 60 of the laws of 2016, is 42 amended to read as follows: 43 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 44 subdivision (a) of this section shall be increased by an additional four 45 hundred twenty million dollars in each year starting in two thousand ten 46 through two thousand [nineteen] twenty-two provided however, seven 47 million dollars of the annual allocation shall be available for the 48 empire state film post production credit pursuant to section thirty-one 49 of this article in two thousand thirteen and two thousand fourteen and 50 twenty-five million dollars of the annual allocation shall be available 51 for the empire state film post production credit pursuant to section 52 thirty-one of this article in each year starting in two thousand fifteen 53 through two thousand [nineteen] twenty-two. This amount shall be allo- 54 cated by the governor's office for motion picture and television devel- 55 opment among taxpayers in accordance with subdivision (a) of this 56 section. If the commissioner of economic development determines that theS. 2009 41 A. 3009 1 aggregate amount of tax credits available from additional pool 2 for the 2 empire state film production tax credit have been previously allocated, 3 and determines that the pending applications from eligible applicants 4 for the empire state film post production tax credit pursuant to section 5 thirty-one of this article is insufficient to utilize the balance of 6 unallocated empire state film post production tax credits from such 7 pool, the remainder, after such pending applications are considered, 8 shall be made available for allocation in the empire state film tax 9 credit pursuant to this section, subdivision twenty of section two 10 hundred ten-B and subsection (gg) of section six hundred six of this 11 chapter. Also, if the commissioner of economic development determines 12 that the aggregate amount of tax credits available from additional pool 13 2 for the empire state film post production tax credit have been previ- 14 ously allocated, and determines that the pending applications from 15 eligible applicants for the empire state film production tax credit 16 pursuant to this section is insufficient to utilize the balance of unal- 17 located film production tax credits from such pool, then all or part of 18 the remainder, after such pending applications are considered, shall be 19 made available for allocation for the empire state film post production 20 credit pursuant to this section, subdivision thirty-two of section two 21 hundred ten-B and subsection (qq) of section six hundred six of this 22 chapter. The governor's office for motion picture and television devel- 23 opment must notify taxpayers of their allocation year and include the 24 allocation year on the certificate of tax credit. Taxpayers eligible to 25 claim a credit must report the allocation year directly on their empire 26 state film production credit tax form for each year a credit is claimed 27 and include a copy of the certificate with their tax return. In the case 28 of a qualified film that receives funds from additional pool 2, no 29 empire state film production credit shall be claimed before the later of 30 the taxable year the production of the qualified film is complete, or 31 the taxable year immediately following the allocation year for which the 32 film has been allocated credit by the governor's office for motion 33 picture and television development. 34 § 3. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 35 amended by section 2 of part JJ of chapter 59 of the laws of 2014, is 36 amended to read as follows: 37 (6) For the period two thousand fifteen through two thousand [nine-38teen] twenty-two, in addition to the amount of credit established in 39 paragraph two of subdivision (a) of this section, a taxpayer shall be 40 allowed a credit equal to the product (or pro rata share of the product, 41 in the case of a member of a partnership) of ten percent and the amount 42 of wages or salaries paid to individuals directly employed (excluding 43 those employed as writers, directors, music directors, producers and 44 performers, including background actors with no scripted lines) for 45 services performed by those individuals in one of the counties specified 46 in this paragraph in connection with the post production work on a qual- 47 ified film with a minimum budget of five hundred thousand dollars at a 48 qualified post production facility in one of the counties listed in this 49 paragraph. For purposes of this additional credit, the services must be 50 performed in one or more of the following counties: Albany, Allegany, 51 Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, 52 Cortland, Delaware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, 53 Herkimer, Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, 54 Niagara, Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenecta- 55 dy, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, 56 Wayne, Wyoming, or Yates. The aggregate amount of tax credits allowedS. 2009 42 A. 3009 1 pursuant to the authority of this paragraph shall be five million 2 dollars each year during the period two thousand fifteen through two 3 thousand [nineteen] twenty-two of the annual allocation made available 4 to the empire state film post production credit pursuant to paragraph 5 four of subdivision (e) of section twenty-four of this article. Such 6 aggregate amount of credits shall be allocated by the governor's office 7 for motion picture and television development among taxpayers in order 8 of priority based upon the date of filing an application for allocation 9 of post production credit with such office. If the total amount of allo- 10 cated credits applied for under this paragraph in any year exceeds the 11 aggregate amount of tax credits allowed for such year under this para- 12 graph, such excess shall be treated as having been applied for on the 13 first day of the next year. If the total amount of allocated tax credits 14 applied for under this paragraph at the conclusion of any year is less 15 than five million dollars, the remainder shall be treated as part of the 16 annual allocation for two thousand seventeen made available to the 17 empire state film post production credit pursuant to paragraph four of 18 subdivision (e) of section twenty-four of this article. However, in no 19 event may the total of the credits allocated under this paragraph and 20 the credits allocated under paragraph five of subdivision (a) of section 21 twenty-four of this article exceed five million dollars in any year 22 during the period two thousand fifteen through two thousand [nineteen] 23 twenty-two. 24 § 4. This act shall take effect immediately. 25 PART N 26 Section 1. The section heading and subdivisions (a), (d) and (e) of 27 section 25-a of the labor law, the section heading and subdivisions (d) 28 and (e) as amended by section 1 of part AA of chapter 56 of the laws of 29 2015 and subdivision (a) as amended by section 1 of part VV of chapter 30 60 of the laws of 2016, are amended to read as follows: 31 Power to administer the urban youth jobs program tax credit. 32 (a) The commissioner is authorized to establish and administer the 33 program established under this section to provide tax incentives to 34 employers for employing at risk youth in part-time and full-time posi- 35 tions. There will be [five] ten distinct pools of tax incentives. 36 Program one will cover tax incentives allocated for two thousand twelve 37 and two thousand thirteen. Program two will cover tax incentives allo- 38 cated in two thousand fourteen. Program three will cover tax incentives 39 allocated in two thousand fifteen. Program four will cover tax incen- 40 tives allocated in two thousand sixteen. Program five will cover tax 41 incentives allocated in two thousand seventeen. Program six will cover 42 tax incentives allocated in two thousand eighteen. Program seven will 43 cover tax incentives allocated in two thousand nineteen. Program eight 44 will cover tax incentives allocated in two thousand twenty. Program 45 nine will cover tax incentives allocated in two thousand twenty-one. 46 Program ten will cover tax incentives allocated in two thousand twenty- 47 two. The commissioner is authorized to allocate up to twenty-five 48 million dollars of tax credits under program one, ten million dollars of 49 tax credits under program two, twenty million dollars of tax credits 50 under program three, and fifty million dollars of tax credits under each 51 [of programs four and five] subsequent program. 52 (d) To participate in the program established under this section, an 53 employer must submit an application (in a form prescribed by the commis- 54 sioner) to the commissioner after January first, two thousand twelve butS. 2009 43 A. 3009 1 no later than November thirtieth, two thousand twelve for program one, 2 after January first, two thousand fourteen but no later than November 3 thirtieth, two thousand fourteen for program two, after January first, 4 two thousand fifteen but no later than November thirtieth, two thousand 5 fifteen for program three, after January first, two thousand sixteen but 6 no later than November thirtieth, two thousand sixteen for program four, 7 [and] after January first, two thousand seventeen but no later than 8 November thirtieth, two thousand seventeen for program five, after Janu- 9 ary first, two thousand eighteen but no later than November thirtieth, 10 two thousand eighteen for program six, after January first, two thousand 11 nineteen but no later than November thirtieth, two thousand nineteen for 12 program seven, after January first, two thousand twenty but no later 13 than November thirtieth, two thousand twenty for program eight, after 14 January first, two thousand twenty-one but no later than November thir- 15 tieth, two thousand twenty-one for program nine, and after January 16 first, two thousand twenty-two but no later than November thirtieth, two 17 thousand twenty-two for program ten. The qualified employees must start 18 their employment on or after January first, two thousand twelve but no 19 later than December thirty-first, two thousand twelve for program one, 20 on or after January first, two thousand fourteen but no later than 21 December thirty-first, two thousand fourteen for program two, on or 22 after January first, two thousand fifteen but no later than December 23 thirty-first, two thousand fifteen for program three, on or after Janu- 24 ary first, two thousand sixteen but no later than December thirty-first, 25 two thousand sixteen for program four, [and] on or after January first, 26 two thousand seventeen but no later than December thirty-first, two 27 thousand seventeen for program five, after January first, two thousand 28 eighteen but no later than December thirty-first, two thousand eighteen 29 for program six, after January first, two thousand nineteen but no later 30 than December thirty-first, two thousand nineteen for program seven, 31 after January first, two thousand twenty but no later than December 32 thirty-first, two thousand twenty for program eight, after January 33 first, two thousand twenty-one but no later than December thirty-first, 34 two thousand twenty-one for program nine, and after January first, two 35 thousand twenty-two but no later than December thirty-first, two thou- 36 sand twenty-two for program ten. The commissioner shall establish 37 guidelines and criteria that specify requirements for employers to 38 participate in the program including criteria for certifying qualified 39 employees. Any regulations that the commissioner determines are neces- 40 sary may be adopted on an emergency basis notwithstanding anything to 41 the contrary in section two hundred two of the state administrative 42 procedure act. Such requirements may include the types of industries 43 that the employers are engaged in. The commissioner may give preference 44 to employers that are engaged in demand occupations or industries, or in 45 regional growth sectors, including those identified by the regional 46 economic development councils, such as clean energy, healthcare, 47 advanced manufacturing and conservation. In addition, the commissioner 48 shall give preference to employers who offer advancement and employee 49 benefit packages to the qualified individuals. 50 (e) If, after reviewing the application submitted by an employer, the 51 commissioner determines that such employer is eligible to participate in 52 the program established under this section, the commissioner shall issue 53 the employer a certificate of eligibility that establishes the employer 54 as a qualified employer. The certificate of eligibility shall specify 55 the maximum amount of tax credit that the employer will be allowed to 56 claim and the program year under which it can be claimed.S. 2009 44 A. 3009 1 § 2. The subdivision heading of subdivision 36 of section 210-B of the 2 tax law, as amended by section 2 of part AA of chapter 56 of the laws of 3 2015, is amended to read as follows: 4 [Urban] New York youth jobs program tax credit. 5 § 3. The subsection heading of subsection (tt) of section 606 of the 6 tax law, as amended by section 3 of part AA of chapter 56 of the laws of 7 2015, is amended to read as follows: 8 [Urban] New York youth jobs program tax credit. 9 § 4. Clause (xxxiii) of subparagraph (B) of paragraph 1 of subsection 10 (i) of section 606 of the tax law, as amended by section 4 of part AA of 11 chapter 56 of the laws of 2015, is amended to read as follows: 12 (xxxiii) [Urban] New York youth Amount of credit under 13 jobs program tax credit subdivision thirty-six 14 of section two hundred ten-B 15 § 5. This act shall take effect immediately. 16 PART O 17 Section 1. Subdivision 6 of section 187-b of the tax law, as amended 18 by section 1 of part G of chapter 59 of the laws of 2013, is amended to 19 read as follows: 20 6. Termination. The credit allowed by subdivision two of this section 21 shall not apply in taxable years beginning after December thirty-first, 22 two thousand [seventeen] twenty-two. 23 § 2. Paragraph (f) of subdivision 30 of section 210-B of the tax law, 24 as added by section 17 of part A of chapter 59 of the laws of 2014, is 25 amended to read as follows: 26 (f) Termination. The credit allowed by paragraph (b) of this subdivi- 27 sion shall not apply in taxable years beginning after December thirty- 28 first, two thousand [seventeen] twenty-two. 29 § 3. Paragraph 6 of subsection (p) of section 606 of the tax law, as 30 amended by section 3 of part G of chapter 59 of the laws of 2013, is 31 amended to read as follows: 32 (6) Termination. The credit allowed by this subsection shall not apply 33 in taxable years beginning after December thirty-first, two thousand 34 [seventeen] twenty-two. 35 § 4. This act shall take effect immediately. 36 PART P 37 Section 1. Subparagraph (i) of paragraph (b) of subdivision 1 of 38 section 210-B of the tax law, as amended by section 31 of part T of 39 chapter 59 of the laws of 2015, is amended to read as follows: 40 (i) A credit shall be allowed under this subdivision with respect to 41 tangible personal property and other tangible property, including build- 42 ings and structural components of buildings, which are: depreciable 43 pursuant to section one hundred sixty-seven of the internal revenue 44 code, have a useful life of four years or more, are acquired by purchase 45 as defined in section one hundred seventy-nine (d) of the internal 46 revenue code, have a situs in this state and are (A) principally used by 47 the taxpayer in the production of goods by manufacturing, processing, 48 assembling, refining, mining, extracting, farming, agriculture, horti- 49 culture, floriculture, viticulture or commercial fishing, (B) industrial 50 waste treatment facilities or air pollution control facilities, used in 51 the taxpayer's trade or business, (C) research and development property, 52 or (D) principally used in the ordinary course of the taxpayer's tradeS. 2009 45 A. 3009 1 or business as a broker or dealer in connection with the purchase or 2 sale (which shall include but not be limited to the issuance, entering 3 into, assumption, offset, assignment, termination, or transfer) of 4 stocks, bonds or other securities as defined in section four hundred 5 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 6 defined in section four hundred seventy-five (e) of the Internal Revenue 7 Code, (E) principally used in the ordinary course of the taxpayer's 8 trade or business of providing investment advisory services for a regu- 9 lated investment company as defined in section eight hundred fifty-one 10 of the Internal Revenue Code, or lending, loan arrangement or loan orig- 11 ination services to customers in connection with the purchase or sale 12 (which shall include but not be limited to the issuance, entering into, 13 assumption, offset, assignment, termination, or transfer) of securities 14 as defined in section four hundred seventy-five (c)(2) of the Internal 15 Revenue Code, (F) principally used in the ordinary course of the taxpay- 16 er's business as an exchange registered as a national securities 17 exchange within the meaning of sections 3(a)(1) and 6(a) of the Securi- 18 ties Exchange Act of 1934 or a board of trade as defined in subparagraph 19 one of paragraph (a) of section fourteen hundred ten of the not-for-pro- 20 fit corporation law or as an entity that is wholly owned by one or more 21 such national securities exchanges or boards of trade and that provides 22 automation or technical services thereto, or (G) principally used as a 23 qualified film production facility including qualified film production 24 facilities having a situs in an empire zone designated as such pursuant 25 to article eighteen-B of the general municipal law, where the taxpayer 26 is providing three or more services to any qualified film production 27 company using the facility, including such services as a studio lighting 28 grid, lighting and grip equipment, multi-line phone service, broadband 29 information technology access, industrial scale electrical capacity, 30 food services, security services, and heating, ventilation and air 31 conditioning. For purposes of clauses (D), (E) and (F) of this subpara- 32 graph, property purchased by a taxpayer affiliated with a regulated 33 broker, dealer, registered investment advisor, national securities 34 exchange or board of trade, is allowed a credit under this subdivision 35 if the property is used by its affiliated regulated broker, dealer, 36 registered investment advisor, national securities exchange or board of 37 trade in accordance with this subdivision. For purposes of determining 38 if the property is principally used in qualifying uses, the uses by the 39 taxpayer described in clauses (D) and (E) of this subparagraph may be 40 aggregated. In addition, the uses by the taxpayer, its affiliated regu- 41 lated broker, dealer and registered investment advisor under either or 42 both of those clauses may be aggregated. Provided, however, a taxpayer 43 shall not be allowed the credit provided by clauses (D), (E) and (F) of 44 this subparagraph unless the property is first placed in service before 45 October first, two thousand fifteen and (i) eighty percent or more of 46 the employees performing the administrative and support functions 47 resulting from or related to the qualifying uses of such equipment are 48 located in this state or (ii) the average number of employees that 49 perform the administrative and support functions resulting from or 50 related to the qualifying uses of such equipment and are located in this 51 state during the taxable year for which the credit is claimed is equal 52 to or greater than ninety-five percent of the average number of employ- 53 ees that perform these functions and are located in this state during 54 the thirty-six months immediately preceding the year for which the cred- 55 it is claimed, or (iii) the number of employees located in this state 56 during the taxable year for which the credit is claimed is equal to orS. 2009 46 A. 3009 1 greater than ninety percent of the number of employees located in this 2 state on December thirty-first, nineteen hundred ninety-eight or, if the 3 taxpayer was not a calendar year taxpayer in nineteen hundred ninety- 4 eight, the last day of its first taxable year ending after December 5 thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes 6 subject to tax in this state after the taxable year beginning in nine- 7 teen hundred ninety-eight, then the taxpayer is not required to satisfy 8 the employment test provided in the preceding sentence of this subpara- 9 graph for its first taxable year. For purposes of clause (iii) of this 10 subparagraph the employment test will be based on the number of employ- 11 ees located in this state on the last day of the first taxable year the 12 taxpayer is subject to tax in this state. If the uses of the property 13 must be aggregated to determine whether the property is principally used 14 in qualifying uses, then either each affiliate using the property must 15 satisfy this employment test or this employment test must be satisfied 16 through the aggregation of the employees of the taxpayer, its affiliated 17 regulated broker, dealer, and registered investment adviser using the 18 property. For purposes of [this subdivision, the term "goods" shall not19include electricity] clause (A) of this subparagraph, tangible personal 20 property and other tangible property shall not include property princi- 21 pally used by the taxpayer (I) in the production or distribution of 22 electricity, natural gas, steam, or water delivered through pipes and 23 mains, or (II) in the creation, production or reproduction, in any medi- 24 um, of a film, visual or audio recording, or commercial, where the costs 25 associated with such creation, production or reproduction are incurred 26 outside of this state, or in the duplication, for purposes of broadcast 27 in any medium, of a master of a film, visual or audio recording, or 28 commercial, where the costs associated with such duplication are 29 incurred outside of this state. 30 § 2. Subparagraph (A) of paragraph 2 of subsection (a) of section 606 31 of the tax law, as amended by chapter 637 of the laws of 2008, is 32 amended to read as follows: 33 (A) A credit shall be allowed under this subsection with respect to 34 tangible personal property and other tangible property, including build- 35 ings and structural components of buildings, which are: depreciable 36 pursuant to section one hundred sixty-seven of the internal revenue 37 code, have a useful life of four years or more, are acquired by purchase 38 as defined in section one hundred seventy-nine (d) of the internal 39 revenue code, have a situs in this state and are (i) principally used by 40 the taxpayer in the production of goods by manufacturing, processing, 41 assembling, refining, mining, extracting, farming, agriculture, horti- 42 culture, floriculture, viticulture or commercial fishing, (ii) indus- 43 trial waste treatment facilities or air pollution control facilities, 44 used in the taxpayer's trade or business, (iii) research and development 45 property, (iv) principally used in the ordinary course of the taxpayer's 46 trade or business as a broker or dealer in connection with the purchase 47 or sale (which shall include but not be limited to the issuance, enter- 48 ing into, assumption, offset, assignment, termination, or transfer) of 49 stocks, bonds or other securities as defined in section four hundred 50 seventy-five (c)(2) of the Internal Revenue Code, or of commodities as 51 defined in section 475(e) of the Internal Revenue Code, (v) principally 52 used in the ordinary course of the taxpayer's trade or business of 53 providing investment advisory services for a regulated investment compa- 54 ny as defined in section eight hundred fifty-one of the Internal Revenue 55 Code, or lending, loan arrangement or loan origination services to 56 customers in connection with the purchase or sale (which shall includeS. 2009 47 A. 3009 1 but not be limited to the issuance, entering into, assumption, offset, 2 assignment, termination, or transfer) of securities as defined in 3 section four hundred seventy-five (c)(2) of the Internal Revenue Code, 4 or (vi) principally used as a qualified film production facility includ- 5 ing qualified film production facilities having a situs in an empire 6 zone designated as such pursuant to article eighteen-B of the general 7 municipal law, where the taxpayer is providing three or more services to 8 any qualified film production company using the facility, including such 9 services as a studio lighting grid, lighting and grip equipment, multi- 10 line phone service, broadband information technology access, industrial 11 scale electrical capacity, food services, security services, and heat- 12 ing, ventilation and air conditioning. For purposes of clauses (iv) and 13 (v) of this subparagraph, property purchased by a taxpayer affiliated 14 with a regulated broker, dealer, or registered investment adviser is 15 allowed a credit under this subsection if the property is used by its 16 affiliated regulated broker, dealer or registered investment adviser in 17 accordance with this subsection. For purposes of determining if the 18 property is principally used in qualifying uses, the uses by the taxpay- 19 er described in clauses (iv) and (v) of this subparagraph may be aggre- 20 gated. In addition, the uses by the taxpayer, its affiliated regulated 21 broker, dealer and registered investment adviser under either or both of 22 those clauses may be aggregated. Provided, however, a taxpayer shall not 23 be allowed the credit provided by clauses (iv) and (v) of this subpara- 24 graph unless (I) eighty percent or more of the employees performing the 25 administrative and support functions resulting from or related to the 26 qualifying uses of such equipment are located in this state, or (II) the 27 average number of employees that perform the administrative and support 28 functions resulting from or related to the qualifying uses of such 29 equipment and are located in this state during the taxable year for 30 which the credit is claimed is equal to or greater than ninety-five 31 percent of the average number of employees that perform these functions 32 and are located in this state during the thirty-six months immediately 33 preceding the year for which the credit is claimed, or (III) the number 34 of employees located in this state during the taxable year for which the 35 credit is claimed is equal to or greater than ninety percent of the 36 number of employees located in this state on December thirty-first, 37 nineteen hundred ninety-eight or, if the taxpayer was not a calendar 38 year taxpayer in nineteen hundred ninety-eight, the last day of its 39 first taxable year ending after December thirty-first, nineteen hundred 40 ninety-eight. If the taxpayer becomes subject to tax in this state after 41 the taxable year beginning in nineteen hundred ninety-eight, then the 42 taxpayer is not required to satisfy the employment test provided in the 43 preceding sentence of this subparagraph for its first taxable year. For 44 the purposes of clause (III) of this subparagraph the employment test 45 will be based on the number of employees located in this state on the 46 last day of the first taxable year the taxpayer is subject to tax in 47 this state. If the uses of the property must be aggregated to determine 48 whether the property is principally used in qualifying uses, then either 49 each affiliate using the property must satisfy this employment test or 50 this employment test must be satisfied through the aggregation of the 51 employees of the taxpayer, its affiliated regulated broker, dealer, and 52 registered investment adviser using the property. For purposes of [this53subsection, the term "goods" shall not include electricity] clause (i) 54 of this subparagraph, tangible personal property and other tangible 55 property shall not include property principally used by the taxpayer (a) 56 in the production or distribution of electricity, natural gas, steam, orS. 2009 48 A. 3009 1 water delivered through pipes and mains, or (b) in the creation, 2 production or reproduction, in any medium, of a film, visual or audio 3 recording, or commercial, where the costs associated with such creation, 4 production or reproduction are incurred outside of this state, or in the 5 duplication, for purposes of broadcast in any medium, of a master of a 6 film, visual or audio recording, or commercial, where the costs associ- 7 ated with such duplication are incurred outside of this state. 8 § 3. This act shall take effect immediately and shall apply to taxable 9 years beginning on or after January 1, 2018. 10 PART Q 11 Section 1. Legislative findings. The legislature finds it necessary to 12 revise a decision of the tax appeals tribunal that disturbed the long- 13 standing policy of the department of taxation and finance that single 14 member limited liability companies that are treated as disregarded enti- 15 ties for federal income tax purposes also would be treated as disre- 16 garded entities for purposes of determining eligibility of the owners of 17 such entities for tax credits allowed under article 9, 9-A, 22, 32 18 (prior to its repeal) or 33 of the tax law. The decision of the tax 19 appeals tribunal, if allowed to stand, will result in the denial of tax 20 credits, such as empire zone tax credits, to taxpayers who in prior 21 years received those credits. 22 § 2. The tax law is amended by adding a new section 43 to read as 23 follows: 24 § 43. Single member limited liability companies and eligibility for 25 tax credits. A limited liability company that has a single member and is 26 disregarded as an entity separate from its owner for federal income tax 27 purposes (without reference to any special rules related to the imposi- 28 tion of certain federal taxes, including but not limited to certain 29 employment and excise taxes) shall be disregarded as an entity separate 30 from its owner for purposes of determining whether or not the taxpayer 31 that is the single member of such limited liability company satisfies 32 the requirements to be eligible for any tax credit allowed under article 33 nine, nine-A, twenty-two or thirty-three of this chapter or allowed 34 under article thirty-two of this chapter prior to the repeal of such 35 article. Such requirements, including but not limited to any necessary 36 certification, employment or investment thresholds, payment obligations, 37 and any time period for eligibility, shall be imposed on the taxpayer 38 and the determination of whether or not such requirements have been 39 satisfied and the computation of the credit shall be made by deeming 40 such taxpayer and such limited liability company to be a single entity. 41 If the taxpayer is the single member of more than one limited liability 42 company that is disregarded as an entity separate from its owner, the 43 determination of whether or not the requirements to be eligible for any 44 tax credit allowed under article nine, nine-A, twenty-two or thirty- 45 three of this chapter or allowed under article thirty-two of this chap- 46 ter prior to the repeal of such article have been satisfied and the 47 computation of the credit shall be made by deeming such taxpayer and 48 such limited liability companies to be a single entity. 49 § 3. This act shall take effect immediately; provided however, that 50 section 43 of the tax law, as added by section two of this act, shall 51 apply to all taxable years for which the statute of limitations for 52 seeking a refund or assessing additional tax is still open. 53 PART RS. 2009 49 A. 3009 1 Section 1. Subparagraph (B) of paragraph 1 of subsection (a) of 2 section 601 of the tax law is REPEALED and a new subparagraph (B) is 3 added to read as follows: 4 (B)(i) For taxable years beginning in two thousand eighteen the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $17,150 4% of the New York taxable 8 income 9 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 10 $17,150 11 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 12 $23,600 13 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 14 $27,900 15 Over $43,000 but not over $161,550 $2,093 plus 6.33% of excess over 16 $43,000 17 Over $161,550 but not over $323,200 $9,597 plus 6.57% of excess over 18 $161,550 19 Over $323,200 but not over $2,155,350 $20,218 plus 6.85% of excess over 20 $323,200 21 Over $2,155,350 $145,720 plus 8.82% of excess over 22 $2,155,350 23 (ii) For taxable years beginning in two thousand nineteen the follow- 24 ing rates shall apply: 25 If the New York taxable income is: The tax is: 26 Not over $17,150 4% of the New York taxable 27 income 28 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 29 $17,150 30 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 31 $23,600 32 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 33 $27,900 34 Over $43,000 but not over $161,550 $2,093 plus 6.21% of excess over 35 $43,000 36 Over $161,550 but not over $323,200 $9,455 plus 6.49% of excess over 37 $161,550 38 Over $323,200 but not over $2,155,350 $19,946 plus 6.85% of excess over 39 $323,200 40 Over $2,155,350 $145,448 plus 8.82% of excess over 41 $2,155,350 42 (iii) For taxable years beginning in two thousand twenty the following 43 rates shall apply: 44 If the New York taxable income is: The tax is: 45 Not over $17,150 4% of the New York taxable income 46 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 47 $17,150 48 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 49 $23,600 50 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 51 $27,900 52 Over $43,000 but not over $161,550 $2,093 plus 6.09% of excess over 53 $43,000 54 Over $161,550 but not over $323,200 $9,313 plus 6.41% of excess over 55 $161,550 56 Over $323,200 but not over $2,155,350 $19,674 plus 6.85% of excess overS. 2009 50 A. 3009 1 $323,200 2 Over $2,155,350 $145,177 plus 8.82% of excess over 3 $2,155,350 4 (iv) For taxable years beginning in two thousand twenty-one the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $17,150 4% of the New York taxable income 8 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 9 $17,150 10 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 11 $23,600 12 Over $27,900 but not over $43,000 $1,202 plus 5.9% of excess over 13 $27,900 14 Over $43,000 but not over $161,550 $2,093 plus 5.97% of excess over 15 $43,000 16 Over $161,550 but not over $323,200 $9,170 plus 6.33% of excess over 17 $161,550 18 Over $323,200 $19,403 plus 6.85% of excess over 19 $323,200 20 (v) For taxable years beginning in two thousand twenty-two the follow- 21 ing rates shall apply: 22 If the New York taxable income is: The tax is: 23 Not over $17,150 4% of the New York taxable income 24 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 25 $17,150 26 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 27 $23,600 28 Over $27,900 but not over $161,550 $1,202 plus 5.85% of excess over 29 $27,900 30 Over $161,550 but not over $323,200 $9,021 plus 6.25% of excess over 31 $161,550 32 Over $323,200 $19,124 plus 6.85% of excess over 33 $323,200 34 (vi) For taxable years beginning in two thousand twenty-three the 35 following rates shall apply: 36 If the New York taxable income is: The tax is: 37 Not over $17,150 4% of the New York taxable income 38 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 39 $17,150 40 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 41 $23,600 42 Over $27,900 but not over $161,550 $1,202 plus 5.73% of excess over 43 $27,900 44 Over $161,550 but not over $323,200 $8,860 plus 6.17% of excess over 45 $161,550 46 Over $323,200 $18,834 plus 6.85% of excess over 47 $323,200 48 (vii) For taxable years beginning in two thousand twenty-four the 49 following rates shall apply: 50 If the New York taxable income is: The tax is: 51 Not over $17,150 4% of the New York taxable income 52 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 53 $17,150 54 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 55 $23,600 56 Over $27,900 but not over $161,550 $1,202 plus 5.61% of excess overS. 2009 51 A. 3009 1 $27,900 2 Over $161,550 but not over $323,200 $8,700 plus 6.09% of excess over 3 $161,550 4 Over $323,200 $18,544 plus 6.85% of excess over 5 $323,200 6 (viii) For taxable years beginning after two thousand twenty-four the 7 following rates shall apply: 8 If the New York taxable income is: The tax is: 9 Not over $17,150 4% of the New York taxable income 10 Over $17,150 but not over $23,600 $686 plus 4.5% of excess over 11 $17,150 12 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over 13 $23,600 14 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over 15 $27,900 16 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over 17 $161,550 18 Over $323,200 $18,252 plus 6.85% of excess over 19 $323,200 20 § 2. Subparagraph (B) of paragraph 1 of subsection (b) of section 601 21 of the tax law is REPEALED and a new subparagraph (B) is added to read 22 as follows: 23 (B)(i) For taxable years beginning in two thousand eighteen the 24 following rates shall apply: 25 If the New York taxable income is: The tax is: 26 Not over $12,800 4% of the New York taxable income 27 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 28 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 29 $17,650 30 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 31 Over $32,200 but not over $107,650 $1,568 plus 6.33% of excess over 32 $32,200 33 Over $107,650 but not over $269,300 $6,344 plus 6.57% of excess over 34 $107,650 35 Over $269,300 but not over $1,616,450 $16,964 plus 6.85% of excess over 36 $269,300 37 Over $1,616,450 $109,244 plus 8.82% of excess over 38 $1,616,450 39 (ii) For taxable years beginning in two thousand nineteen the follow- 40 ing rates shall apply: 41 If the New York taxable income is: The tax is: 42 Not over $12,800 4% of the New York taxable income 43 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 44 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 45 $17,650 46 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 47 Over $32,200 but not over $107,650 $1,568 plus 6.21% of excess over 48 $32,200 49 Over $107,650 but not over $269,300 $6,253 plus 6.49% of excess over 50 $107,650 51 Over $269,300 but not over $1,616,450 $16,744 plus 6.85% of excess over 52 $269,300 53 Over $1,616,450 $109,024 plus 8.82% of excess over 54 $1,616,450 55 (iii) For taxable years beginning in two thousand twenty the following 56 rates shall apply:S. 2009 52 A. 3009 1 If the New York taxable income is: The tax is: 2 Not over $12,800 4% of the New York taxable income 3 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over $12,800 4 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 5 $17,650 6 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over $20,900 7 Over $32,200 but not over $107,650 $1,568 plus 6.09% of excess over 8 $32,200 9 Over $107,650 but not over $269,300 $6,162 plus 6.41% of excess over 10 $107,650 11 Over $269,300 but not over $1,616,450 $16,524 plus 6.85% of excess over 12 $269,300 13 Over $1,616,450 $108,804 plus 8.82% of excess over 14 $1,616,450 15 (iv) For taxable years beginning in two thousand twenty-one the 16 following rates shall apply: 17 If the New York taxable income is: The tax is: 18 Not over $12,800 4% of the New York taxable income 19 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 20 $12,800 21 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 22 $17,650 23 Over $20,900 but not over $32,200 $901 plus 5.9% of excess over 24 $20,900 25 Over $32,200 but not over $107,650 $1,568 plus 5.97% of excess over 26 $32,200 27 Over $107,650 but not over $269,300 $6,072 plus 6.33% of excess over 28 $107,650 29 Over $269,300 $16,304 plus 6.85% of excess over 30 $269,300 31 (v) For taxable years beginning in two thousand twenty-two the follow- 32 ing rates shall apply: 33 If the New York taxable income is: The tax is: 34 Not over $12,800 4% of the New York taxable income 35 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 36 $12,800 37 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 38 $17,650 39 Over $20,900 but not over $107,650 $901 plus 5.85% of excess over 40 $20,900 41 Over $107,650 but not over $269,300 $5,976 plus 6.25% of excess over 42 $107,650 43 Over $269,300 $16,079 plus 6.85% of excess over 44 $269,300 45 (vi) For taxable years beginning in two thousand twenty-three the 46 following rates shall apply: 47 If the New York taxable income is: The tax is: 48 Not over $12,800 4% of the New York taxable income 49 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 50 $12,800 51 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 52 $17,650 53 Over $20,900 but not over $107,650 $901 plus 5.73% of excess over 54 $20,900 55 Over $107,650 but not over $269,300 $5,872 plus 6.17% of excess overS. 2009 53 A. 3009 1 $107,650 2 Over $269,300 $15,845 plus 6.85% of excess over 3 $269,300 4 (vii) For taxable years beginning in two thousand twenty-four the 5 following rates shall apply: 6 If the New York taxable income is: The tax is: 7 Not over $12,800 4% of the New York taxable income 8 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 9 $12,800 10 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 11 $17,650 12 Over $20,900 but not over $107,650 $901 plus 5.61% of excess over 13 $20,900 14 Over $107,650 but not over $269,300 $5,768 plus 6.09% of excess over 15 $107,650 16 Over $269,300 $15,612 plus 6.85% of excess over 17 $269,300 18 (viii) For taxable years beginning after two thousand twenty-four the 19 following rates shall apply: 20 If the New York taxable income is: The tax is: 21 Not over $12,800 4% of the New York taxable income 22 Over $12,800 but not over $17,650 $512 plus 4.5% of excess over 23 $12,800 24 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over 25 $17,650 26 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over 27 $20,900 28 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over 29 $107,650 30 Over $269,300 $15,371 plus 6.85% of excess over 31 $269,300 32 § 3. Subparagraph (B) of paragraph 1 of subsection (c) of section 601 33 of the tax law is REPEALED and a new subparagraph (B) is added to read 34 as follows: 35 (B)(i) For taxable years beginning in two thousand eighteen the 36 following rates shall apply: 37 If the New York taxable income is: The tax is: 38 Not over $8,500 4% of the New York taxable income 39 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 40 $8,500 41 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 42 $11,700 43 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 44 $13,900 45 Over $21,400 but not over $80,650 $1,042 plus 6.33% of excess over 46 $21,400 47 Over $80,650 but not over $215,400 $4,793 plus 6.57% of excess over 48 $80,650 49 Over $215,400 but not over $1,077,550 $13,646 plus 6.85% of excess over 50 $215,400 51 Over $1,077,550 $72,703 plus 8.82% of excess over 52 $1,077,550 53 (ii) For taxable years beginning in two thousand nineteen the follow- 54 ing rates shall apply:S. 2009 54 A. 3009 1 If the New York taxable income is: The tax is: 2 Not over $8,500 4% of the New York taxable income 3 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 4 $8,500 5 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 6 $11,700 7 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 8 $13,900 9 Over $21,400 but not over $80,650 $1,042 plus 6.21% of excess over 10 $21,400 11 Over $80,650 but not over $215,400 $4,721 plus 6.49% of excess over 12 $80,650 13 Over $215,400 but not over $1,077,550 $13,467 plus 6.85% of excess over 14 $215,400 15 Over $1,077,550 $72,524 plus 8.82% of excess over 16 $1,077,550 17 (iii) For taxable years beginning in two thousand twenty the following 18 rates shall apply: 19 If the New York taxable income is: The tax is: 20 Not over $8,500 4% of the New York taxable income 21 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 22 $8,500 23 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 24 $11,700 25 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 26 $13,900 27 Over $21,400 but not over $80,650 $1,042 plus 6.09% of excess over 28 $21,400 29 Over $80,650 but not over $215,400 $4,650 plus 6.41% of excess over 30 $80,650 31 Over $215,400 but not over $1,077,550 $13,288 plus 6.85% of excess over 32 $215,400 33 Over $1,077,550 $72,345 plus 8.82% of excess over 34 $1,077,550 35 (iv) For taxable years beginning in two thousand twenty-one the 36 following rates shall apply: 37 If the New York taxable income is: The tax is: 38 Not over $8,500 4% of the New York taxable income 39 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 40 $8,500 41 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 42 $11,700 43 Over $13,900 but not over $21,400 $600 plus 5.9% of excess over 44 $13,900 45 Over $21,400 but not over $80,650 $1,042 plus 5.97% of excess over 46 $21,400 47 Over $80,650 but not over $215,400 $4,579 plus 6.33% of excess over 48 $80,650 49 Over $215,400 $13,109 plus 6.85% of excess over 50 $215,400 51 (v) For taxable years beginning in two thousand twenty-two the follow- 52 ing rates shall apply: 53 If the New York taxable income is: The tax is: 54 Not over $8,500 4% of the New York taxable income 55 Over $8,500 but not over $11,700 $340 plus 4.5% of excess overS. 2009 55 A. 3009 1 $8,500 2 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 3 $11,700 4 Over $13,900 but not over $80,650 $600 plus 5.85% of excess over 5 $13,900 6 Over $80,650 but not over $215,400 $4,504 plus 6.25% of excess over 7 $80,650 8 Over $215,400 $12,926 plus 6.85% of excess over 9 $215,400 10 (vi) For taxable years beginning in two thousand twenty-three the 11 following rates shall apply: 12 If the New York taxable income is: The tax is: 13 Not over $8,500 4% of the New York taxable income 14 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 15 $8,500 16 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 17 $11,700 18 Over $13,900 but not over $80,650 $600 plus 5.73% of excess over 19 $13,900 20 Over $80,650 but not over $215,400 $4,424 plus 6.17% of excess over 21 $80,650 22 Over $215,400 $12,738 plus 6.85% of excess over 23 $215,400 24 (vii) For taxable years beginning in two thousand twenty-four the 25 following rates shall apply: 26 If the New York taxable income is: The tax is: 27 Not over $8,500 4% of the New York taxable income 28 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 29 $8,500 30 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 31 $11,700 32 Over $13,900 but not over $80,650 $600 plus 5.61% of excess over 33 $13,900 34 Over $80,650 but not over $215,400 $4,344 plus 6.09% of excess over 35 $80,650 36 Over $215,400 $12,550 plus 6.85% of excess over 37 $215,400 38 (viii) For taxable years beginning after two thousand twenty-four the 39 following rates shall apply: 40 If the New York taxable income is: The tax is: 41 Not over $8,500 4% of the New York taxable income 42 Over $8,500 but not over $11,700 $340 plus 4.5% of excess over 43 $8,500 44 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over 45 $11,700 46 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over 47 $13,900 48 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over 49 $80,650 50 Over $215,400 $12,356 plus 6.85% of excess over 51 $215,400 52 § 4. Subparagraph (D) of paragraph 1 of subsection (d-1) of section 53 601 of the tax law, as amended by section 5 of part FF of chapter 59 of 54 the laws of 2013, is amended to read as follows: 55 (D) The tax table benefit is the difference between (i) the amount of 56 taxable income set forth in the tax table in paragraph one of subsectionS. 2009 56 A. 3009 1 (a) of this section not subject to the 8.82 percent rate of tax for the 2 taxable year multiplied by such rate and (ii) the dollar denominated tax 3 for such amount of taxable income set forth in the tax table applicable 4 to the taxable year in paragraph one of subsection (a) of this section 5 less the sum of the tax table benefits in subparagraphs (A), (B) and (C) 6 of this paragraph. The fraction for this subparagraph is computed as 7 follows: the numerator is the lesser of fifty thousand dollars or the 8 excess of New York adjusted gross income for the taxable year over two 9 million dollars and the denominator is fifty thousand dollars. This 10 subparagraph shall apply only to taxable years beginning on or after 11 January first, two thousand twelve and before January first, two thou- 12 sand [eighteen] twenty-one. 13 § 5. Subparagraph (C) of paragraph 2 of subsection (d-1) of section 14 601 of the tax law, as amended by section 6 of part FF of chapter 59 of 15 the laws of 2013, is amended to read as follows: 16 (C) The tax table benefit is the difference between (i) the amount of 17 taxable income set forth in the tax table in paragraph one of subsection 18 (b) of this section not subject to the 8.82 percent rate of tax for the 19 taxable year multiplied by such rate and (ii) the dollar denominated tax 20 for such amount of taxable income set forth in the tax table applicable 21 to the taxable year in paragraph one of subsection (b) of this section 22 less the sum of the tax table benefits in subparagraphs (A) and (B) of 23 this paragraph. The fraction for this subparagraph is computed as 24 follows: the numerator is the lesser of fifty thousand dollars or the 25 excess of New York adjusted gross income for the taxable year over one 26 million five hundred thousand dollars and the denominator is fifty thou- 27 sand dollars. This subparagraph shall apply only to taxable years begin- 28 ning on or after January first, two thousand twelve and before January 29 first, two thousand [eighteen] twenty-one. 30 § 6. Subparagraph (C) of paragraph 3 of subsection (d-1) of section 31 601 of the tax law, as amended by section 7 of part FF of chapter 59 of 32 the laws of 2013, is amended to read as follows: 33 (C) The tax table benefit is the difference between (i) the amount of 34 taxable income set forth in the tax table in paragraph one of subsection 35 (c) of this section not subject to the 8.82 percent rate of tax for the 36 taxable year multiplied by such rate and (ii) the dollar denominated tax 37 for such amount of taxable income set forth in the tax table applicable 38 to the taxable year in paragraph one of subsection (c) of this section 39 less the sum of the tax table benefits in subparagraphs (A) and (B) of 40 this paragraph. The fraction for this subparagraph is computed as 41 follows: the numerator is the lesser of fifty thousand dollars or the 42 excess of New York adjusted gross income for the taxable year over one 43 million dollars and the denominator is fifty thousand dollars. This 44 subparagraph shall apply only to taxable years beginning on or after 45 January first, two thousand twelve and before January first, two thou- 46 sand [eighteen] twenty-one. 47 § 7. This act shall take effect immediately. 48 PART S 49 Section 1. Subsection (g) of section 615 of the tax law, as amended by 50 section 1 of part H of chapter 59 of the laws of 2015, is amended to 51 read as follows: 52 (g)(1) With respect to an individual whose New York adjusted gross 53 income is over one million dollars and no more than ten million dollars, 54 the New York itemized deduction shall be an amount equal to fiftyS. 2009 57 A. 3009 1 percent of any charitable contribution deduction allowed under section 2 one hundred seventy of the internal revenue code [for taxable years3beginning after two thousand nine and before two thousand eighteen. With4respect to an individual whose New York adjusted gross income is over5one million dollars, the New York itemized deduction shall be an amount6equal to fifty percent of any charitable contribution deduction allowed7under section one hundred seventy of the internal revenue code for taxa-8ble years beginning in two thousand nine or after two thousand seven-9teen]. 10 (2) With respect to an individual whose New York adjusted gross income 11 is over ten million dollars, the New York itemized deduction shall be an 12 amount equal to twenty-five percent of any charitable contribution 13 deduction allowed under section one hundred seventy of the internal 14 revenue code [for taxable years beginning after two thousand nine and15ending before two thousand eighteen]. 16 § 2. Subdivision (g) of section 11-1715 of the administrative code of 17 the city of New York, as amended by section 2 of part H of chapter 59 of 18 the laws of 2015, is amended to read as follows: 19 (g) (1) With respect to an individual whose New York adjusted gross 20 income is over one million dollars but no more than ten million dollars, 21 the New York itemized deduction shall be an amount equal to fifty 22 percent of any charitable contribution deduction allowed under section 23 one hundred seventy of the internal revenue code [for taxable years24beginning after two thousand nine and before two thousand eighteen. With25respect to an individual whose New York adjusted gross income is over26one million dollars, the New York itemized deduction shall be an amount27equal to fifty percent of any charitable contribution deduction allowed28under section one hundred seventy of the internal revenue code for taxa-29ble years beginning in two thousand nine or after two thousand seven-30teen]. 31 (2) With respect to an individual whose New York adjusted gross income 32 is over ten million dollars, the New York itemized deduction shall be an 33 amount equal to twenty-five percent of any charitable contribution 34 deduction allowed under section one hundred seventy of the internal 35 revenue code [for taxable years beginning after two thousand nine and36ending before two thousand eighteen]. 37 § 3. This act shall take effect immediately. 38 PART T 39 Section 1. Subsection (c) of section 606 of the tax law is amended by 40 adding a new paragraph (1-a) to read as follows: 41 (1-a) For taxable years beginning after two thousand seventeen, for a 42 taxpayer with New York adjusted gross income of at least fifty thousand 43 dollars but less than one hundred fifty thousand dollars, the applicable 44 percentage shall be the applicable percentage otherwise computed under 45 paragraph one of this subsection multiplied by a factor as follows: 46 If New York adjusted gross 47 income is: The factor is: 48 At least $50,000 and less 49 than $55,000 1.1682 50 At least $55,000 and less 51 than $60,000 1.2733 52 At least $60,000 and less 53 than $65,000 2.322 54 At least $65,000 and lessS. 2009 58 A. 3009 1 than $150,000 3.000 2 § 2. This act shall take effect immediately. 3 PART U 4 Section 1. Paragraph (a) of subdivision 1 and paragraph (a) of subdi- 5 vision 2 of section 1701 of the tax law, as added by section 1 of part 6 CC-1 of chapter 57 of the laws of 2008, are amended to read as follows: 7 (a) "Debt" means [all] past-due tax liabilities, including unpaid tax, 8 interest, and penalty, that the commissioner is required by law to 9 collect and that have [been reduced to judgment by the docketing of a10New York state tax warrant in the office of a county clerk located in11the state of New York or by the filing of a copy of the warrant in the12office of the department of state] become fixed and final such that the 13 taxpayer no longer has any right to administrative or judicial review. 14 (a) To assist the commissioner in the collection of debts, the depart- 15 ment must develop and operate a financial institution data match system 16 for the purpose of identifying and seizing the non-exempt assets of tax 17 debtors as identified by the commissioner. The commissioner is author- 18 ized to designate a third party to develop and operate this system. 19 Notwithstanding any other provisions of this chapter, the commissioner 20 is authorized to disclose the debt and the debtor information to such 21 third party and to financial institutions for purposes of this system. 22 Any third party designated by the commissioner to develop and operate a 23 financial data match system must keep all information it obtains from 24 both the department and the financial institution confidential, and any 25 employee, agent or representative of that third party is prohibited from 26 disclosing that information to anyone other than the department or the 27 financial institution. 28 § 2. This act shall take effect immediately. 29 PART V 30 Section 1. Subdivision 4 of section 50 of the civil service law is 31 amended by adding a new closing paragraph to read as follows: 32 The department shall require a tax clearance from the department of 33 taxation and finance, as provided for in section one hundred seventy- 34 one-w of the tax law, for each applicant and shall refuse to examine an 35 applicant, or after examination to certify an eligible for whom tax 36 clearance is denied by the department of taxation and finance. A munic- 37 ipal commission, subject to the approval of the governing board or body 38 of the city or county as the case may be, or a regional commission or 39 personnel officer, pursuant to governmental agreement, may elect to 40 require tax clearances for applicants and to refuse to examine an appli- 41 cant, or after examination to certify an eligible for whom a tax clear- 42 ance is denied by the department of taxation and finance. Provided, 43 however, that the department and municipal commissions shall not require 44 a tax clearance for (1) any current employee; or (2) a person who is 45 considered an applicant by reason of (a) a transfer pursuant to section 46 seventy of this chapter; or (b) a person who is on a preferred list 47 subject to section eighty-one of this chapter; or (c) a person whose 48 name is on an eligible list as defined in section fifty-six of this 49 article and who has successfully completed a promotion exam subject to 50 section fifty-two of this article. Where a tax clearance is required, 51 the application for examination, or the instructions for such applica- 52 tion, shall clearly inform the applicant that a tax clearance will beS. 2009 59 A. 3009 1 performed and that, if the tax clearance is denied, the applicant must 2 contact the department of taxation and finance to resolve any past-due 3 tax liabilities or return filing compliance before the application for 4 examination may be resubmitted. Any applicant subject to tax clearance 5 shall be required to provide any information deemed necessary by the 6 department and the department of taxation and finance to efficiently and 7 accurately provide a tax clearance, and the failure by the applicant to 8 provide such information shall disqualify the applicant. 9 § 2. The tax law is amended by adding a new section 171-w to read as 10 follows: 11 § 171-w. Enforcement of delinquent tax liabilities through tax clear- 12 ances. (1) For the purposes of this section, the term "tax liabilities" 13 shall mean any tax, surcharge, or fee administered by the commissioner, 14 or any penalty or interest on such tax, surcharge, or fee, owed by an 15 individual or entity. The term "past-due tax liabilities" means any 16 unpaid tax liabilities that have become fixed and final such that the 17 taxpayer no longer has any right to administrative or judicial review. 18 The term "government entity" means the state of New York, or any of its 19 agencies, political subdivisions, instrumentalities, public corporations 20 (including a public corporation created pursuant to agreement or compact 21 with another state or Canada), or combination thereof. 22 (2) The commissioner, or his or her designee, shall cooperate with any 23 government entity that is required by law or has elected to require tax 24 clearances to establish procedures by which the department shall receive 25 a tax clearance request and transmit such tax clearance to the govern- 26 ment entity, and any other procedures deemed necessary to carry out the 27 provisions of this section. These procedures shall, to the extent prac- 28 ticable, require secure electronic communication between the department 29 and the requesting government entity for the transmission of tax clear- 30 ance requests to the department and transmission of tax clearances to 31 the requesting entity. Notwithstanding any other law to the contrary, a 32 government entity shall be authorized to share any applicant data or 33 information with the department that is necessary to ensure the proper 34 matching of the applicant to the tax records maintained by the depart- 35 ment. 36 (3) Upon receipt of a tax clearance request, the department shall 37 examine its records to determine whether the subject of the tax clear- 38 ance request has past-due tax liabilities equal to or in excess of the 39 dollar threshold applicable for such tax clearance request or, were no 40 threshold has been established by law or otherwise, equal to or in 41 excess of five hundred dollars. When a tax clearance request so 42 requires, the department shall also determine whether (i) the subject of 43 such request has complied with applicable tax return filing requirements 44 for each of the past three years; and/or (ii) whether a subject of such 45 request that is an individual or entity that is a person required to 46 register pursuant to section eleven hundred thirty-four of this chapter 47 is registered pursuant to such section. The department shall deny a tax 48 clearance if it determines that the subject of a tax clearance request 49 has past-due tax liabilities equal to or in excess of the applicable 50 threshold or, when the tax clearance request so requires, has not 51 complied with applicable return filing and/or registration requirements. 52 (4) If a tax clearance is denied, the government entity that requested 53 the clearance shall provide notice to the applicant to contact the 54 department. Such notice shall be made by first class mail with a certif- 55 icate of mailing and a copy of such notice also shall be provided to the 56 department. When the applicant contacts the department, the departmentS. 2009 60 A. 3009 1 shall inform the applicant of the basis for the denial of the tax clear- 2 ance and shall also inform the applicant (i) that a tax clearance denied 3 due to past-due tax liabilities may be issued once the taxpayer fully 4 satisfies past-due tax liabilities or makes payment arrangements satis- 5 factory to the commissioner; (ii) that a tax clearance denied due to 6 failure to file tax returns may be issued once the applicant has satis- 7 fied the applicable return filing requirements; (iii) that a tax clear- 8 ance denied for failure to register pursuant to section eleven hundred 9 thirty-four of this chapter may be issued once the applicant has regis- 10 tered pursuant to such section; and (iv) the grounds for challenging the 11 denial of a tax clearance listed in subdivision five of this section. 12 (5) (a) Notwithstanding any other provision of law, and except as 13 specifically provided herein, an applicant denied a tax clearance shall 14 have no right to commence a court action or proceeding or seek any other 15 legal recourse against the department or the government entity related 16 to the denial of a tax clearance by the department. 17 (b) An applicant seeking to challenge the denial of a tax clearance 18 must protest to the department or the division of tax appeals no later 19 than sixty days from the date of the notification to the applicant that 20 the tax clearance was denied. An applicant may challenge a department 21 finding of past-due tax liabilities only on the grounds that (i) the 22 individual or entity denied the tax clearance is not the individual or 23 entity with the past-due tax liabilities at issue; (ii) the past-due tax 24 liabilities were satisfied; (iii) the applicant's wages are being 25 garnished for the payment of child support or combined child and spousal 26 support pursuant to an income execution issued pursuant to section fifty 27 two hundred forty-one or fifty two hundred forty-two of the civil prac- 28 tice law and rules or another state's income withholding order as 29 authorized under part five of article five-B of the family court act, or 30 garnished by the department for the payment of the past-due tax liabil- 31 ities at issue; or (iv) the applicant is making child support payments 32 or combined child and spousal support payments pursuant to a satisfac- 33 tory payment arrangement under section one hundred eleven-b of the 34 social services law with a support collection unit or otherwise making 35 periodic payments in accordance with section four hundred forty of the 36 family court act. An applicant may challenge a department finding of 37 failure to comply with tax return filing requirements only on the 38 grounds that all required tax returns have been filed for each of the 39 past three years. 40 (c) Nothing in this subdivision is intended to limit any applicant 41 from seeking relief from joint and several liability pursuant to section 42 six hundred fifty-four of this chapter, to the extent that he or she is 43 eligible pursuant to that section, or establishing to the department 44 that the enforcement of the underlying tax liabilities has been stayed 45 by the filing of a petition pursuant to the Bankruptcy Code of 1978 46 (Title Eleven of the United States Code). 47 (6) Notwithstanding any other provision of law, the department may 48 exchange with a government entity any data or information that, in the 49 discretion of the commissioner, is necessary for the implementation of a 50 tax clearance requirement. However, no government entity may re-disclose 51 this information to any other entity or person, other than for the 52 purpose of informing the applicant that a required tax clearance has 53 been denied, unless otherwise permitted by law. 54 (7) Except as otherwise provided in this section, the activities to 55 collect past-due tax liabilities undertaken by the department pursuant 56 to this section shall not in any way limit, restrict or impair theS. 2009 61 A. 3009 1 department from exercising any other authority to collect or enforce tax 2 liabilities under any other applicable provision of law. 3 § 3. This act shall take effect June 1, 2017; provided, however, that 4 the department of taxation and finance, the department of civil service, 5 any municipal commission, and any other government entity electing to 6 receive a tax clearance from the department of taxation and finance may 7 work to execute the necessary procedures and technical changes to 8 support the tax clearance process as described in sections one and two 9 of this act before that date; provided, further, that this effective 10 date will not impact the administration of any tax clearance program 11 authorized by another provision of law. 12 PART W 13 Section 1. Paragraph (a) of subdivision 1 of section 18 of chapter 266 14 of the laws of 1986, amending the civil practice law and rules and other 15 laws relating to malpractice and professional medical conduct, as 16 amended by section 2 of part C of chapter 59 of the laws of 2016, is 17 amended to read as follows: 18 (a) The superintendent of financial services and the commissioner of 19 health or their designee shall, from funds available in the hospital 20 excess liability pool created pursuant to subdivision 5 of this section, 21 purchase a policy or policies for excess insurance coverage, as author- 22 ized by paragraph 1 of subsection (e) of section 5502 of the insurance 23 law; or from an insurer, other than an insurer described in section 5502 24 of the insurance law, duly authorized to write such coverage and actual- 25 ly writing medical malpractice insurance in this state; or shall 26 purchase equivalent excess coverage in a form previously approved by the 27 superintendent of financial services for purposes of providing equiv- 28 alent excess coverage in accordance with section 19 of chapter 294 of 29 the laws of 1985, for medical or dental malpractice occurrences between 30 July 1, 1986 and June 30, 1987, between July 1, 1987 and June 30, 1988, 31 between July 1, 1988 and June 30, 1989, between July 1, 1989 and June 32 30, 1990, between July 1, 1990 and June 30, 1991, between July 1, 1991 33 and June 30, 1992, between July 1, 1992 and June 30, 1993, between July 34 1, 1993 and June 30, 1994, between July 1, 1994 and June 30, 1995, 35 between July 1, 1995 and June 30, 1996, between July 1, 1996 and June 36 30, 1997, between July 1, 1997 and June 30, 1998, between July 1, 1998 37 and June 30, 1999, between July 1, 1999 and June 30, 2000, between July 38 1, 2000 and June 30, 2001, between July 1, 2001 and June 30, 2002, 39 between July 1, 2002 and June 30, 2003, between July 1, 2003 and June 40 30, 2004, between July 1, 2004 and June 30, 2005, between July 1, 2005 41 and June 30, 2006, between July 1, 2006 and June 30, 2007, between July 42 1, 2007 and June 30, 2008, between July 1, 2008 and June 30, 2009, 43 between July 1, 2009 and June 30, 2010, between July 1, 2010 and June 44 30, 2011, between July 1, 2011 and June 30, 2012, between July 1, 2012 45 and June 30, 2013, between July 1, 2013 and June 30, 2014, between July 46 1, 2014 and June 30, 2015, between July 1, 2015 and June 30, 2016, [and] 47 between July 1, 2016 and June 30, 2017, and between July 1, 2017 and 48 June 30, 2018 or reimburse the hospital where the hospital purchases 49 equivalent excess coverage as defined in subparagraph (i) of paragraph 50 (a) of subdivision 1-a of this section for medical or dental malpractice 51 occurrences between July 1, 1987 and June 30, 1988, between July 1, 1988 52 and June 30, 1989, between July 1, 1989 and June 30, 1990, between July 53 1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992, 54 between July 1, 1992 and June 30, 1993, between July 1, 1993 and JuneS. 2009 62 A. 3009 1 30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995 2 and June 30, 1996, between July 1, 1996 and June 30, 1997, between July 3 1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999, 4 between July 1, 1999 and June 30, 2000, between July 1, 2000 and June 5 30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002 6 and June 30, 2003, between July 1, 2003 and June 30, 2004, between July 7 1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006, 8 between July 1, 2006 and June 30, 2007, between July 1, 2007 and June 9 30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009 10 and June 30, 2010, between July 1, 2010 and June 30, 2011, between July 11 1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013, 12 between July 1, 2013 and June 30, 2014, between July 1, 2014 and June 13 30, 2015, between July 1, 2015 and June 30, 2016, [and] between July 1, 14 2016 and June 30, 2017, and between July 1, 2017 and June 30, 2018 for 15 physicians or dentists certified as eligible for each such period or 16 periods pursuant to subdivision 2 of this section by a general hospital 17 licensed pursuant to article 28 of the public health law; provided that 18 no single insurer shall write more than fifty percent of the total 19 excess premium for a given policy year; and provided, however, that such 20 eligible physicians or dentists must have in force an individual policy, 21 from an insurer licensed in this state of primary malpractice insurance 22 coverage in amounts of no less than one million three hundred thousand 23 dollars for each claimant and three million nine hundred thousand 24 dollars for all claimants under that policy during the period of such 25 excess coverage for such occurrences or be endorsed as additional 26 insureds under a hospital professional liability policy which is offered 27 through a voluntary attending physician ("channeling") program previous- 28 ly permitted by the superintendent of financial services during the 29 period of such excess coverage for such occurrences; and provided that 30 such eligible physicians or dentists have received tax clearances from 31 the department of taxation and finance pursuant to section 171-w of the 32 tax law. During such period, such policy for excess coverage or such 33 equivalent excess coverage shall, when combined with the physician's or 34 dentist's primary malpractice insurance coverage or coverage provided 35 through a voluntary attending physician ("channeling") program, total an 36 aggregate level of two million three hundred thousand dollars for each 37 claimant and six million nine hundred thousand dollars for all claimants 38 from all such policies with respect to occurrences in each of such years 39 provided, however, if the cost of primary malpractice insurance coverage 40 in excess of one million dollars, but below the excess medical malprac- 41 tice insurance coverage provided pursuant to this act, exceeds the rate 42 of nine percent per annum, then the required level of primary malprac- 43 tice insurance coverage in excess of one million dollars for each claim- 44 ant shall be in an amount of not less than the dollar amount of such 45 coverage available at nine percent per annum; the required level of such 46 coverage for all claimants under that policy shall be in an amount not 47 less than three times the dollar amount of coverage for each claimant; 48 and excess coverage, when combined with such primary malpractice insur- 49 ance coverage, shall increase the aggregate level for each claimant by 50 one million dollars and three million dollars for all claimants; and 51 provided further, that, with respect to policies of primary medical 52 malpractice coverage that include occurrences between April 1, 2002 and 53 June 30, 2002, such requirement that coverage be in amounts no less than 54 one million three hundred thousand dollars for each claimant and three 55 million nine hundred thousand dollars for all claimants for such occur- 56 rences shall be effective April 1, 2002.S. 2009 63 A. 3009 1 § 2. Subdivision 3 of section 18 of chapter 266 of the laws of 1986, 2 amending the civil practice law and rules and other laws relating to 3 malpractice and professional medical conduct, as amended by section 3 of 4 part C of chapter 59 of the laws of 2016, is amended to read as follows: 5 (3)(a) The superintendent of financial services shall determine and 6 certify to each general hospital and to the commissioner of health the 7 cost of excess malpractice insurance for medical or dental malpractice 8 occurrences between July 1, 1986 and June 30, 1987, between July 1, 1988 9 and June 30, 1989, between July 1, 1989 and June 30, 1990, between July 10 1, 1990 and June 30, 1991, between July 1, 1991 and June 30, 1992, 11 between July 1, 1992 and June 30, 1993, between July 1, 1993 and June 12 30, 1994, between July 1, 1994 and June 30, 1995, between July 1, 1995 13 and June 30, 1996, between July 1, 1996 and June 30, 1997, between July 14 1, 1997 and June 30, 1998, between July 1, 1998 and June 30, 1999, 15 between July 1, 1999 and June 30, 2000, between July 1, 2000 and June 16 30, 2001, between July 1, 2001 and June 30, 2002, between July 1, 2002 17 and June 30, 2003, between July 1, 2003 and June 30, 2004, between July 18 1, 2004 and June 30, 2005, between July 1, 2005 and June 30, 2006, 19 between July 1, 2006 and June 30, 2007, between July 1, 2007 and June 20 30, 2008, between July 1, 2008 and June 30, 2009, between July 1, 2009 21 and June 30, 2010, between July 1, 2010 and June 30, 2011, between July 22 1, 2011 and June 30, 2012, between July 1, 2012 and June 30, 2013, and 23 between July 1, 2013 and June 30, 2014, between July 1, 2014 and June 24 30, 2015, between July 1, 2015 and June 30, 2016, and between July 1, 25 2016 and June 30, 2017, and between July 1, 2017 and June 30, 2018 allo- 26 cable to each general hospital for physicians or dentists certified as 27 eligible for purchase of a policy for excess insurance coverage by such 28 general hospital in accordance with subdivision 2 of this section, and 29 may amend such determination and certification as necessary. 30 (b) The superintendent of financial services shall determine and 31 certify to each general hospital and to the commissioner of health the 32 cost of excess malpractice insurance or equivalent excess coverage for 33 medical or dental malpractice occurrences between July 1, 1987 and June 34 30, 1988, between July 1, 1988 and June 30, 1989, between July 1, 1989 35 and June 30, 1990, between July 1, 1990 and June 30, 1991, between July 36 1, 1991 and June 30, 1992, between July 1, 1992 and June 30, 1993, 37 between July 1, 1993 and June 30, 1994, between July 1, 1994 and June 38 30, 1995, between July 1, 1995 and June 30, 1996, between July 1, 1996 39 and June 30, 1997, between July 1, 1997 and June 30, 1998, between July 40 1, 1998 and June 30, 1999, between July 1, 1999 and June 30, 2000, 41 between July 1, 2000 and June 30, 2001, between July 1, 2001 and June 42 30, 2002, between July 1, 2002 and June 30, 2003, between July 1, 2003 43 and June 30, 2004, between July 1, 2004 and June 30, 2005, between July 44 1, 2005 and June 30, 2006, between July 1, 2006 and June 30, 2007, 45 between July 1, 2007 and June 30, 2008, between July 1, 2008 and June 46 30, 2009, between July 1, 2009 and June 30, 2010, between July 1, 2010 47 and June 30, 2011, between July 1, 2011 and June 30, 2012, between July 48 1, 2012 and June 30, 2013, between July 1, 2013 and June 30, 2014, 49 between July 1, 2014 and June 30, 2015, between July 1, 2015 and June 50 30, 2016, and between July 1, 2016 and June 30, 2017, and between July 51 1, 2017 and June 30, 2018 allocable to each general hospital for physi- 52 cians or dentists certified as eligible for purchase of a policy for 53 excess insurance coverage or equivalent excess coverage by such general 54 hospital in accordance with subdivision 2 of this section, and may amend 55 such determination and certification as necessary. The superintendent of 56 financial services shall determine and certify to each general hospitalS. 2009 64 A. 3009 1 and to the commissioner of health the ratable share of such cost alloca- 2 ble to the period July 1, 1987 to December 31, 1987, to the period Janu- 3 ary 1, 1988 to June 30, 1988, to the period July 1, 1988 to December 31, 4 1988, to the period January 1, 1989 to June 30, 1989, to the period July 5 1, 1989 to December 31, 1989, to the period January 1, 1990 to June 30, 6 1990, to the period July 1, 1990 to December 31, 1990, to the period 7 January 1, 1991 to June 30, 1991, to the period July 1, 1991 to December 8 31, 1991, to the period January 1, 1992 to June 30, 1992, to the period 9 July 1, 1992 to December 31, 1992, to the period January 1, 1993 to June 10 30, 1993, to the period July 1, 1993 to December 31, 1993, to the period 11 January 1, 1994 to June 30, 1994, to the period July 1, 1994 to December 12 31, 1994, to the period January 1, 1995 to June 30, 1995, to the period 13 July 1, 1995 to December 31, 1995, to the period January 1, 1996 to June 14 30, 1996, to the period July 1, 1996 to December 31, 1996, to the period 15 January 1, 1997 to June 30, 1997, to the period July 1, 1997 to December 16 31, 1997, to the period January 1, 1998 to June 30, 1998, to the period 17 July 1, 1998 to December 31, 1998, to the period January 1, 1999 to June 18 30, 1999, to the period July 1, 1999 to December 31, 1999, to the period 19 January 1, 2000 to June 30, 2000, to the period July 1, 2000 to December 20 31, 2000, to the period January 1, 2001 to June 30, 2001, to the period 21 July 1, 2001 to June 30, 2002, to the period July 1, 2002 to June 30, 22 2003, to the period July 1, 2003 to June 30, 2004, to the period July 1, 23 2004 to June 30, 2005, to the period July 1, 2005 and June 30, 2006, to 24 the period July 1, 2006 and June 30, 2007, to the period July 1, 2007 25 and June 30, 2008, to the period July 1, 2008 and June 30, 2009, to the 26 period July 1, 2009 and June 30, 2010, to the period July 1, 2010 and 27 June 30, 2011, to the period July 1, 2011 and June 30, 2012, to the 28 period July 1, 2012 and June 30, 2013, to the period July 1, 2013 and 29 June 30, 2014, to the period July 1, 2014 and June 30, 2015, to the 30 period July 1, 2015 and June 30, 2016, and between July 1, 2016 and June 31 30, 2017, and to the period July 1, 2017 and June 30, 2018. 32 § 3. Paragraphs (a), (b), (c), (d) and (e) of subdivision 8 of section 33 18 of chapter 266 of the laws of 1986, amending the civil practice law 34 and rules and other laws relating to malpractice and professional 35 medical conduct, as amended by section 4 of part C of chapter 59 of the 36 laws of 2016, are amended to read as follows: 37 (a) To the extent funds available to the hospital excess liability 38 pool pursuant to subdivision 5 of this section as amended, and pursuant 39 to section 6 of part J of chapter 63 of the laws of 2001, as may from 40 time to time be amended, which amended this subdivision, are insuffi- 41 cient to meet the costs of excess insurance coverage or equivalent 42 excess coverage for coverage periods during the period July 1, 1992 to 43 June 30, 1993, during the period July 1, 1993 to June 30, 1994, during 44 the period July 1, 1994 to June 30, 1995, during the period July 1, 1995 45 to June 30, 1996, during the period July 1, 1996 to June 30, 1997, 46 during the period July 1, 1997 to June 30, 1998, during the period July 47 1, 1998 to June 30, 1999, during the period July 1, 1999 to June 30, 48 2000, during the period July 1, 2000 to June 30, 2001, during the period 49 July 1, 2001 to October 29, 2001, during the period April 1, 2002 to 50 June 30, 2002, during the period July 1, 2002 to June 30, 2003, during 51 the period July 1, 2003 to June 30, 2004, during the period July 1, 2004 52 to June 30, 2005, during the period July 1, 2005 to June 30, 2006, 53 during the period July 1, 2006 to June 30, 2007, during the period July 54 1, 2007 to June 30, 2008, during the period July 1, 2008 to June 30, 55 2009, during the period July 1, 2009 to June 30, 2010, during the period 56 July 1, 2010 to June 30, 2011, during the period July 1, 2011 to JuneS. 2009 65 A. 3009 1 30, 2012, during the period July 1, 2012 to June 30, 2013, during the 2 period July 1, 2013 to June 30, 2014, during the period July 1, 2014 to 3 June 30, 2015, during the period July 1, 2015 and June 30, 2016, [and4between] during the period July 1, 2016 and June 30, 2017, and during 5 the period July 1, 2017 and June 30, 2018 allocated or reallocated in 6 accordance with paragraph (a) of subdivision 4-a of this section to 7 rates of payment applicable to state governmental agencies, each physi- 8 cian or dentist for whom a policy for excess insurance coverage or 9 equivalent excess coverage is purchased for such period shall be respon- 10 sible for payment to the provider of excess insurance coverage or equiv- 11 alent excess coverage of an allocable share of such insufficiency, based 12 on the ratio of the total cost of such coverage for such physician to 13 the sum of the total cost of such coverage for all physicians applied to 14 such insufficiency. 15 (b) Each provider of excess insurance coverage or equivalent excess 16 coverage covering the period July 1, 1992 to June 30, 1993, or covering 17 the period July 1, 1993 to June 30, 1994, or covering the period July 1, 18 1994 to June 30, 1995, or covering the period July 1, 1995 to June 30, 19 1996, or covering the period July 1, 1996 to June 30, 1997, or covering 20 the period July 1, 1997 to June 30, 1998, or covering the period July 1, 21 1998 to June 30, 1999, or covering the period July 1, 1999 to June 30, 22 2000, or covering the period July 1, 2000 to June 30, 2001, or covering 23 the period July 1, 2001 to October 29, 2001, or covering the period 24 April 1, 2002 to June 30, 2002, or covering the period July 1, 2002 to 25 June 30, 2003, or covering the period July 1, 2003 to June 30, 2004, or 26 covering the period July 1, 2004 to June 30, 2005, or covering the peri- 27 od July 1, 2005 to June 30, 2006, or covering the period July 1, 2006 to 28 June 30, 2007, or covering the period July 1, 2007 to June 30, 2008, or 29 covering the period July 1, 2008 to June 30, 2009, or covering the peri- 30 od July 1, 2009 to June 30, 2010, or covering the period July 1, 2010 to 31 June 30, 2011, or covering the period July 1, 2011 to June 30, 2012, or 32 covering the period July 1, 2012 to June 30, 2013, or covering the peri- 33 od July 1, 2013 to June 30, 2014, or covering the period July 1, 2014 to 34 June 30, 2015, or covering the period July 1, 2015 to June 30, 2016, or 35 covering the period July 1, 2016 to June 30, 2017, or covering the peri- 36 od July 1, 2017 to June 30, 2018 shall notify a covered physician or 37 dentist by mail, mailed to the address shown on the last application for 38 excess insurance coverage or equivalent excess coverage, of the amount 39 due to such provider from such physician or dentist for such coverage 40 period determined in accordance with paragraph (a) of this subdivision. 41 Such amount shall be due from such physician or dentist to such provider 42 of excess insurance coverage or equivalent excess coverage in a time and 43 manner determined by the superintendent of financial services. 44 (c) If a physician or dentist liable for payment of a portion of the 45 costs of excess insurance coverage or equivalent excess coverage cover- 46 ing the period July 1, 1992 to June 30, 1993, or covering the period 47 July 1, 1993 to June 30, 1994, or covering the period July 1, 1994 to 48 June 30, 1995, or covering the period July 1, 1995 to June 30, 1996, or 49 covering the period July 1, 1996 to June 30, 1997, or covering the peri- 50 od July 1, 1997 to June 30, 1998, or covering the period July 1, 1998 to 51 June 30, 1999, or covering the period July 1, 1999 to June 30, 2000, or 52 covering the period July 1, 2000 to June 30, 2001, or covering the peri- 53 od July 1, 2001 to October 29, 2001, or covering the period April 1, 54 2002 to June 30, 2002, or covering the period July 1, 2002 to June 30, 55 2003, or covering the period July 1, 2003 to June 30, 2004, or covering 56 the period July 1, 2004 to June 30, 2005, or covering the period July 1,S. 2009 66 A. 3009 1 2005 to June 30, 2006, or covering the period July 1, 2006 to June 30, 2 2007, or covering the period July 1, 2007 to June 30, 2008, or covering 3 the period July 1, 2008 to June 30, 2009, or covering the period July 1, 4 2009 to June 30, 2010, or covering the period July 1, 2010 to June 30, 5 2011, or covering the period July 1, 2011 to June 30, 2012, or covering 6 the period July 1, 2012 to June 30, 2013, or covering the period July 1, 7 2013 to June 30, 2014, or covering the period July 1, 2014 to June 30, 8 2015, or covering the period July 1, 2015 to June 30, 2016, or covering 9 the period July 1, 2016 to June 30, 2017, or covering the period July 1, 10 2017 to June 30, 2018 determined in accordance with paragraph (a) of 11 this subdivision fails, refuses or neglects to make payment to the 12 provider of excess insurance coverage or equivalent excess coverage in 13 such time and manner as determined by the superintendent of financial 14 services pursuant to paragraph (b) of this subdivision, excess insurance 15 coverage or equivalent excess coverage purchased for such physician or 16 dentist in accordance with this section for such coverage period shall 17 be cancelled and shall be null and void as of the first day on or after 18 the commencement of a policy period where the liability for payment 19 pursuant to this subdivision has not been met. 20 (d) Each provider of excess insurance coverage or equivalent excess 21 coverage shall notify the superintendent of financial services and the 22 commissioner of health or their designee of each physician and dentist 23 eligible for purchase of a policy for excess insurance coverage or 24 equivalent excess coverage covering the period July 1, 1992 to June 30, 25 1993, or covering the period July 1, 1993 to June 30, 1994, or covering 26 the period July 1, 1994 to June 30, 1995, or covering the period July 1, 27 1995 to June 30, 1996, or covering the period July 1, 1996 to June 30, 28 1997, or covering the period July 1, 1997 to June 30, 1998, or covering 29 the period July 1, 1998 to June 30, 1999, or covering the period July 1, 30 1999 to June 30, 2000, or covering the period July 1, 2000 to June 30, 31 2001, or covering the period July 1, 2001 to October 29, 2001, or cover- 32 ing the period April 1, 2002 to June 30, 2002, or covering the period 33 July 1, 2002 to June 30, 2003, or covering the period July 1, 2003 to 34 June 30, 2004, or covering the period July 1, 2004 to June 30, 2005, or 35 covering the period July 1, 2005 to June 30, 2006, or covering the peri- 36 od July 1, 2006 to June 30, 2007, or covering the period July 1, 2007 to 37 June 30, 2008, or covering the period July 1, 2008 to June 30, 2009, or 38 covering the period July 1, 2009 to June 30, 2010, or covering the peri- 39 od July 1, 2010 to June 30, 2011, or covering the period July 1, 2011 to 40 June 30, 2012, or covering the period July 1, 2012 to June 30, 2013, or 41 covering the period July 1, 2013 to June 30, 2014, or covering the peri- 42 od July 1, 2014 to June 30, 2015, or covering the period July 1, 2015 to 43 June 30, 2016, or covering the period July 1, 2016 to June 30, 2017, or 44 covering the period July 1, 2017 to June 30, 2018 that has made payment 45 to such provider of excess insurance coverage or equivalent excess 46 coverage in accordance with paragraph (b) of this subdivision and of 47 each physician and dentist who has failed, refused or neglected to make 48 such payment. 49 (e) A provider of excess insurance coverage or equivalent excess 50 coverage shall refund to the hospital excess liability pool any amount 51 allocable to the period July 1, 1992 to June 30, 1993, and to the period 52 July 1, 1993 to June 30, 1994, and to the period July 1, 1994 to June 53 30, 1995, and to the period July 1, 1995 to June 30, 1996, and to the 54 period July 1, 1996 to June 30, 1997, and to the period July 1, 1997 to 55 June 30, 1998, and to the period July 1, 1998 to June 30, 1999, and to 56 the period July 1, 1999 to June 30, 2000, and to the period July 1, 2000S. 2009 67 A. 3009 1 to June 30, 2001, and to the period July 1, 2001 to October 29, 2001, 2 and to the period April 1, 2002 to June 30, 2002, and to the period July 3 1, 2002 to June 30, 2003, and to the period July 1, 2003 to June 30, 4 2004, and to the period July 1, 2004 to June 30, 2005, and to the period 5 July 1, 2005 to June 30, 2006, and to the period July 1, 2006 to June 6 30, 2007, and to the period July 1, 2007 to June 30, 2008, and to the 7 period July 1, 2008 to June 30, 2009, and to the period July 1, 2009 to 8 June 30, 2010, and to the period July 1, 2010 to June 30, 2011, and to 9 the period July 1, 2011 to June 30, 2012, and to the period July 1, 2012 10 to June 30, 2013, and to the period July 1, 2013 to June 30, 2014, and 11 to the period July 1, 2014 to June 30, 2015, and to the period July 1, 12 2015 to June 30, 2016, [and] to the period July 1, 2016 to June 30, 13 2017, and to the period July 1, 2017 to June 30, 2018 received from the 14 hospital excess liability pool for purchase of excess insurance coverage 15 or equivalent excess coverage covering the period July 1, 1992 to June 16 30, 1993, and covering the period July 1, 1993 to June 30, 1994, and 17 covering the period July 1, 1994 to June 30, 1995, and covering the 18 period July 1, 1995 to June 30, 1996, and covering the period July 1, 19 1996 to June 30, 1997, and covering the period July 1, 1997 to June 30, 20 1998, and covering the period July 1, 1998 to June 30, 1999, and cover- 21 ing the period July 1, 1999 to June 30, 2000, and covering the period 22 July 1, 2000 to June 30, 2001, and covering the period July 1, 2001 to 23 October 29, 2001, and covering the period April 1, 2002 to June 30, 24 2002, and covering the period July 1, 2002 to June 30, 2003, and cover- 25 ing the period July 1, 2003 to June 30, 2004, and covering the period 26 July 1, 2004 to June 30, 2005, and covering the period July 1, 2005 to 27 June 30, 2006, and covering the period July 1, 2006 to June 30, 2007, 28 and covering the period July 1, 2007 to June 30, 2008, and covering the 29 period July 1, 2008 to June 30, 2009, and covering the period July 1, 30 2009 to June 30, 2010, and covering the period July 1, 2010 to June 30, 31 2011, and covering the period July 1, 2011 to June 30, 2012, and cover- 32 ing the period July 1, 2012 to June 30, 2013, and covering the period 33 July 1, 2013 to June 30, 2014, and covering the period July 1, 2014 to 34 June 30, 2015, and covering the period July 1, 2015 to June 30, 2016, 35 and covering the period July 1, 2016 to June 30, 2017, and covering the 36 period July 1, 2017 to June 30, 2018 for a physician or dentist where 37 such excess insurance coverage or equivalent excess coverage is 38 cancelled in accordance with paragraph (c) of this subdivision. 39 § 4. Section 40 of chapter 266 of the laws of 1986, amending the civil 40 practice law and rules and other laws relating to malpractice and 41 professional medical conduct, as amended by section 5 of part C of chap- 42 ter 59 of the laws of 2016, is amended to read as follows: 43 § 40. The superintendent of financial services shall establish rates 44 for policies providing coverage for physicians and surgeons medical 45 malpractice for the periods commencing July 1, 1985 and ending June 30, 46 [2017] 2018; provided, however, that notwithstanding any other provision 47 of law, the superintendent shall not establish or approve any increase 48 in rates for the period commencing July 1, 2009 and ending June 30, 49 2010. The superintendent shall direct insurers to establish segregated 50 accounts for premiums, payments, reserves and investment income attrib- 51 utable to such premium periods and shall require periodic reports by the 52 insurers regarding claims and expenses attributable to such periods to 53 monitor whether such accounts will be sufficient to meet incurred claims 54 and expenses. On or after July 1, 1989, the superintendent shall impose 55 a surcharge on premiums to satisfy a projected deficiency that is 56 attributable to the premium levels established pursuant to this sectionS. 2009 68 A. 3009 1 for such periods; provided, however, that such annual surcharge shall 2 not exceed eight percent of the established rate until July 1, [2017] 3 2018, at which time and thereafter such surcharge shall not exceed twen- 4 ty-five percent of the approved adequate rate, and that such annual 5 surcharges shall continue for such period of time as shall be sufficient 6 to satisfy such deficiency. The superintendent shall not impose such 7 surcharge during the period commencing July 1, 2009 and ending June 30, 8 2010. On and after July 1, 1989, the surcharge prescribed by this 9 section shall be retained by insurers to the extent that they insured 10 physicians and surgeons during the July 1, 1985 through June 30, [2017] 11 2018 policy periods; in the event and to the extent physicians and 12 surgeons were insured by another insurer during such periods, all or a 13 pro rata share of the surcharge, as the case may be, shall be remitted 14 to such other insurer in accordance with rules and regulations to be 15 promulgated by the superintendent. Surcharges collected from physicians 16 and surgeons who were not insured during such policy periods shall be 17 apportioned among all insurers in proportion to the premium written by 18 each insurer during such policy periods; if a physician or surgeon was 19 insured by an insurer subject to rates established by the superintendent 20 during such policy periods, and at any time thereafter a hospital, 21 health maintenance organization, employer or institution is responsible 22 for responding in damages for liability arising out of such physician's 23 or surgeon's practice of medicine, such responsible entity shall also 24 remit to such prior insurer the equivalent amount that would then be 25 collected as a surcharge if the physician or surgeon had continued to 26 remain insured by such prior insurer. In the event any insurer that 27 provided coverage during such policy periods is in liquidation, the 28 property/casualty insurance security fund shall receive the portion of 29 surcharges to which the insurer in liquidation would have been entitled. 30 The surcharges authorized herein shall be deemed to be income earned for 31 the purposes of section 2303 of the insurance law. The superintendent, 32 in establishing adequate rates and in determining any projected defi- 33 ciency pursuant to the requirements of this section and the insurance 34 law, shall give substantial weight, determined in his discretion and 35 judgment, to the prospective anticipated effect of any regulations 36 promulgated and laws enacted and the public benefit of stabilizing 37 malpractice rates and minimizing rate level fluctuation during the peri- 38 od of time necessary for the development of more reliable statistical 39 experience as to the efficacy of such laws and regulations affecting 40 medical, dental or podiatric malpractice enacted or promulgated in 1985, 41 1986, by this act and at any other time. Notwithstanding any provision 42 of the insurance law, rates already established and to be established by 43 the superintendent pursuant to this section are deemed adequate if such 44 rates would be adequate when taken together with the maximum authorized 45 annual surcharges to be imposed for a reasonable period of time whether 46 or not any such annual surcharge has been actually imposed as of the 47 establishment of such rates. 48 § 5. Section 5 and subdivisions (a) and (e) of section 6 of part J of 49 chapter 63 of the laws of 2001, amending chapter 266 of the laws of 50 1986, amending the civil practice law and rules and other laws relating 51 to malpractice and professional medical conduct, as amended by section 6 52 of part C of chapter 59 of the laws of 2016, are amended to read as 53 follows: 54 § 5. The superintendent of financial services and the commissioner of 55 health shall determine, no later than June 15, 2002, June 15, 2003, June 56 15, 2004, June 15, 2005, June 15, 2006, June 15, 2007, June 15, 2008,S. 2009 69 A. 3009 1 June 15, 2009, June 15, 2010, June 15, 2011, June 15, 2012, June 15, 2 2013, June 15, 2014, June 15, 2015, June 15, 2016, [and] June 15, 2017, 3 and June 15, 2018 the amount of funds available in the hospital excess 4 liability pool, created pursuant to section 18 of chapter 266 of the 5 laws of 1986, and whether such funds are sufficient for purposes of 6 purchasing excess insurance coverage for eligible participating physi- 7 cians and dentists during the period July 1, 2001 to June 30, 2002, or 8 July 1, 2002 to June 30, 2003, or July 1, 2003 to June 30, 2004, or July 9 1, 2004 to June 30, 2005, or July 1, 2005 to June 30, 2006, or July 1, 10 2006 to June 30, 2007, or July 1, 2007 to June 30, 2008, or July 1, 2008 11 to June 30, 2009, or July 1, 2009 to June 30, 2010, or July 1, 2010 to 12 June 30, 2011, or July 1, 2011 to June 30, 2012, or July 1, 2012 to June 13 30, 2013, or July 1, 2013 to June 30, 2014, or July 1, 2014 to June 30, 14 2015, or July 1, 2015 to June 30, 2016, or July 1, 2016 to June 30, 15 2017, or to July 1, 2017 to June 30, 2018 as applicable. 16 (a) This section shall be effective only upon a determination, pursu- 17 ant to section five of this act, by the superintendent of financial 18 services and the commissioner of health, and a certification of such 19 determination to the state director of the budget, the chair of the 20 senate committee on finance and the chair of the assembly committee on 21 ways and means, that the amount of funds in the hospital excess liabil- 22 ity pool, created pursuant to section 18 of chapter 266 of the laws of 23 1986, is insufficient for purposes of purchasing excess insurance cover- 24 age for eligible participating physicians and dentists during the period 25 July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 2003, or July 26 1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 2005, or July 1, 27 2005 to June 30, 2006, or July 1, 2006 to June 30, 2007, or July 1, 2007 28 to June 30, 2008, or July 1, 2008 to June 30, 2009, or July 1, 2009 to 29 June 30, 2010, or July 1, 2010 to June 30, 2011, or July 1, 2011 to June 30 30, 2012, or July 1, 2012 to June 30, 2013, or July 1, 2013 to June 30, 31 2014, or July 1, 2014 to June 30, 2015, or July 1, 2015 to June 30, 32 2016, or July 1, 2016 to June 30, 2017, or July 1, 2017 to June 30, 2018 33 as applicable. 34 (e) The commissioner of health shall transfer for deposit to the 35 hospital excess liability pool created pursuant to section 18 of chapter 36 266 of the laws of 1986 such amounts as directed by the superintendent 37 of financial services for the purchase of excess liability insurance 38 coverage for eligible participating physicians and dentists for the 39 policy year July 1, 2001 to June 30, 2002, or July 1, 2002 to June 30, 40 2003, or July 1, 2003 to June 30, 2004, or July 1, 2004 to June 30, 41 2005, or July 1, 2005 to June 30, 2006, or July 1, 2006 to June 30, 42 2007, as applicable, and the cost of administering the hospital excess 43 liability pool for such applicable policy year, pursuant to the program 44 established in chapter 266 of the laws of 1986, as amended, no later 45 than June 15, 2002, June 15, 2003, June 15, 2004, June 15, 2005, June 46 15, 2006, June 15, 2007, June 15, 2008, June 15, 2009, June 15, 2010, 47 June 15, 2011, June 15, 2012, June 15, 2013, June 15, 2014, June 15, 48 2015, June 15, 2016, [and] June 15, 2017, and June 15, 2018 as applica- 49 ble. 50 § 6. Notwithstanding any law, rule or regulation to the contrary, only 51 physicians or dentists who were eligible, and for whom the superinten- 52 dent of financial services and the commissioner of health, or their 53 designee, purchased, with funds available in the hospital excess liabil- 54 ity pool, a full or partial policy for excess coverage or equivalent 55 excess coverage for the coverage period ending the thirtieth of June, 56 two thousand seventeen, shall be eligible to apply for such coverage forS. 2009 70 A. 3009 1 the coverage period beginning the first of July, two thousand seventeen; 2 provided, however, if the total number of physicians or dentists for 3 whom such excess coverage or equivalent excess coverage was purchased 4 for the policy year ending the thirtieth of June, two thousand seventeen 5 exceeds the total number of physicians or dentists certified as eligible 6 for the coverage period beginning the first of July, two thousand seven- 7 teen, then the general hospitals may certify additional eligible physi- 8 cians or dentists in a number equal to such general hospital's propor- 9 tional share of the total number of physicians or dentists for whom 10 excess coverage or equivalent excess coverage was purchased with funds 11 available in the hospital excess liability pool as of the thirtieth of 12 June, two thousand seventeen, as applied to the difference between the 13 number of eligible physicians or dentists for whom a policy for excess 14 coverage or equivalent excess coverage was purchased for the coverage 15 period ending the thirtieth of June, two thousand seventeen and the 16 number of such eligible physicians or dentists who have applied for 17 excess coverage or equivalent excess coverage for the coverage period 18 beginning the first of July, two thousand seventeen. 19 § 7. The tax law is amended by adding a new section 171-w to read as 20 follows: 21 § 171-w. Enforcement of delinquent tax liabilities through tax clear- 22 ances. (1) For the purposes of this section, the term "tax liabilities" 23 shall mean any tax, surcharge, or fee administered by the commissioner, 24 or any penalty or interest on such tax, surcharge or fee, owed by an 25 individual or entity. The term "past-due tax liabilities" means any 26 unpaid tax liabilities that have become fixed and final such that the 27 taxpayer no longer has any right to administrative or judicial review. 28 The term "government entity" means the state of New York, or any of its 29 agencies, political subdivisions, instrumentalities, public corporations 30 (including a public corporation created pursuant to agreement or compact 31 with another state or Canada), or combination thereof. 32 (2) The commissioner, or his or her designee, shall cooperate with any 33 government entity that is required by law or has elected to require tax 34 clearances to establish procedures by which the department shall receive 35 a tax clearance request and transmit such tax clearance to the govern- 36 ment entity, and any other procedures deemed necessary to carry out the 37 provisions of this section. These procedures shall, to the extent prac- 38 ticable, require secure electronic communication between the department 39 and the requesting government entity for the transmission of tax clear- 40 ance requests to the department and transmission of tax clearances to 41 the requesting entity. Notwithstanding any other law to the contrary, a 42 government entity shall be authorized to share any applicant data or 43 information with the department that is necessary to ensure the proper 44 matching of the applicant to the tax records maintained by the depart- 45 ment. 46 (3) Upon receipt of a tax clearance request, the department shall 47 examine its records to determine whether the subject of the tax clear- 48 ance request has past-due tax liabilities equal to or in excess of the 49 dollar threshold applicable for such tax clearance request or, where no 50 threshold has been established by law or otherwise, equal to or in 51 excess of five hundred dollars. When a tax clearance request so 52 requires, the department shall also determine whether (i) the subject of 53 such request has complied with applicable tax return filing requirements 54 for each of the past three years; and/or (ii) whether a subject of such 55 request that is an individual or entity that is a person required to 56 register pursuant to section eleven hundred thirty-four of this chapterS. 2009 71 A. 3009 1 is registered pursuant to such section. The department shall deny a tax 2 clearance if it determines that the subject of a tax clearance request 3 has past-due tax liabilities equal to or in excess of the applicable 4 threshold or, when the tax clearance request so requires, has not 5 complied with applicable return filing and/or registration requirements. 6 (4) If a tax clearance is denied, the government entity that requested 7 the clearance shall provide notice to the applicant to contact the 8 department. Such notice shall be made by first class mail with a certif- 9 icate of mailing and a copy of such notice also shall be provided to the 10 department. When the applicant contacts the department, the department 11 shall inform the applicant of the basis for the denial of the tax clear- 12 ance and shall also inform the applicant (i) that a tax clearance denied 13 due to past-due tax liabilities may be issued once the taxpayer fully 14 satisfies past-due tax liabilities or makes payment arrangements satis- 15 factory to the commissioner; (ii) that a tax clearance denied due to 16 failure to file tax returns may be issued once the applicant has satis- 17 fied the applicable return filing requirements; (iii) that a tax clear- 18 ance denied for failure to register pursuant to section eleven hundred 19 thirty-four of this chapter may be issued once the applicant has regis- 20 tered pursuant to such section; and (iv) the grounds for challenging the 21 denial of a tax clearance listed in subdivision five of this section. 22 (5) (a) Notwithstanding any other provision of law, and except as 23 specifically provided herein, an applicant denied a tax clearance shall 24 have no right to commence a court action or proceeding or seek any other 25 legal recourse against the department or the government entity related 26 to the denial of a tax clearance by the department. 27 (b) An applicant seeking to challenge the denial of a tax clearance 28 must protest to the department or the division of tax appeals no later 29 than sixty days from the date of the notification to the applicant that 30 the tax clearance was denied. An applicant may challenge a department 31 finding of past-due tax liabilities only on the grounds that (i) the 32 individual or entity denied the tax clearance is not the individual or 33 entity with the past-due tax liabilities at issue; (ii) the past-due tax 34 liabilities were satisfied; (iii) the applicant's wages are being 35 garnished for the payment of child support or combined child and spousal 36 support pursuant to an income execution issued pursuant to section 37 fifty-two hundred forty-one or fifty-two hundred forty-two of the civil 38 practice law and rules or another state's income withholding order as 39 authorized under part five of article five-B of the family court act, or 40 garnished by the department for the payment of the past-due tax liabil- 41 ities at issue; or (iv) the applicant is making child support payments 42 or combined child and spousal support payments pursuant to a satisfac- 43 tory payment arrangement under section one hundred eleven-b of the 44 social services law with a support collection unit or otherwise making 45 periodic payments in accordance with section four hundred forty of the 46 family court act. An applicant may challenge a department finding of 47 failure to comply with tax return filing requirements only on the 48 grounds that all required tax returns have been filed for each of the 49 past three years. 50 (c) Nothing in this subdivision is intended to limit any applicant 51 from seeking relief from joint and several liability pursuant to section 52 six hundred fifty-four of this chapter, to the extent that he or she is 53 eligible pursuant to that section, or establishing to the department 54 that the enforcement of the underlying tax liabilities has been stayed 55 by the filing of a petition pursuant to the Bankruptcy Code of 1978 56 (title eleven of the United States Code).S. 2009 72 A. 3009 1 (6) Notwithstanding any other provision of law, the department may 2 exchange with a government entity any data or information that, in the 3 discretion of the commissioner, is necessary for the implementation of a 4 tax clearance requirement. However, no government entity may re-disclose 5 this information to any other entity or person, other than for the 6 purpose of informing the applicant that a required tax clearance has 7 been denied, unless otherwise permitted by law. 8 (7) Except as otherwise provided in this section, the activities to 9 collect past-due tax liabilities undertaken by the department pursuant 10 to this section shall not in any way limit, restrict or impair the 11 department from exercising any other authority to collect or enforce tax 12 liabilities under any other applicable provision of law. 13 § 8. This act shall take effect immediately. 14 PART X 15 Section 1. Section 2 of part Q of chapter 59 of the laws of 2013, 16 amending the tax law, relating to serving an income execution with 17 respect to individual tax debtors without filing a warrant, as amended 18 by section 1 of part DD of chapter 59 of the laws of 2015, is amended to 19 read as follows: 20 § 2. This act shall take effect immediately [and shall expire and be21deemed repealed on and after April 1, 2017]. 22 § 2. This act shall take effect immediately and shall be deemed to 23 have been in full force and effect on and after April 1, 2017. 24 PART Y 25 Section 1. Subdivision 1-A of section 208 of the tax law, as amended 26 by section 4 of part A of chapter 59 of the laws of 2014, is amended to 27 read as follows: 28 1-A. The term "New York S corporation" means, with respect to any 29 taxable year, a corporation subject to tax under this article [for which30an election is in effect pursuant to subsection (a) of section six31hundred sixty of this chapter for such year] and described in subsection 32 (b) of section six hundred sixty of this chapter, and any such year 33 shall be denominated a "New York S year"[, and such election shall be34denominated a "New York S election"]. The term "New York C corporation" 35 means, with respect to any taxable year, a corporation subject to tax 36 under this article which is not a New York S corporation, and any such 37 year shall be denominated a "New York C year". The term "termination 38 year" means any taxable year of a corporation during which the corpo- 39 ration's status as a New York S [election] corporation terminates on a 40 day other than the first day of such year. The portion of the taxable 41 year ending before the first day for which such termination is effective 42 shall be denominated the "S short year", and the portion of such year 43 beginning on such first day shall be denominated the "C short year". The 44 term "New York S termination year" means any termination year which is 45 [not] also an S termination year for federal purposes. 46 § 2. Subdivision 1-B, paragraph (ii) of the opening paragraph and 47 paragraph (k) of subdivision 9 of section 208 of the tax law are 48 REPEALED. 49 § 3. Subdivision 1 of section 210-A of the tax law, as amended by 50 section 21 of part T of chapter 59 of the laws of 2015, is amended to 51 read as follows:S. 2009 73 A. 3009 1 1. General. Business income and capital shall be apportioned to the 2 state by the apportionment factor determined pursuant to this section. 3 The apportionment factor is a fraction, determined by including only 4 those receipts, net income, net gains, and other items described in this 5 section that are included in the computation of the taxpayer's business 6 income (determined without regard to the modification provided in 7 subparagraph nineteen of paragraph (a) of subdivision nine of section 8 two hundred eight of this article) for the taxable year. The numerator 9 of the apportionment fraction shall be equal to the sum of all the 10 amounts required to be included in the numerator pursuant to the 11 provisions of this section and the denominator of the apportionment 12 fraction shall be equal to the sum of all the amounts required to be 13 included in the denominator pursuant to the provisions of this section. 14 For a New York S corporation, the receipts included in the apportionment 15 fraction are those receipts, net income (not less than zero), net gains 16 (not less than zero), and other items described in this section that are 17 included in the New York S corporation's nonseparately computed income 18 and loss or in the New York S corporation's separately stated items of 19 income and loss, determined pursuant to subdivision (a) of section 1366 20 of the internal revenue code. 21 § 4. Section 660 of the tax law, as amended by chapter 606 of the laws 22 of 1984, subsections (a) and (h) as amended by section 73 of part A of 23 chapter 59 of the laws of 2014, paragraph 3 of subsection (b) as amended 24 by section 51 of part A of chapter 389 of the laws of 1997, paragraphs 4 25 and 5 as added and paragraph 6 of subsection (b) as renumbered by 26 section 52 of part A of chapter 389 of the laws of 1997, subsection (d) 27 as added by chapter 760 of the laws of 1992, subsections (e) and (f) as 28 added and subsection (g) as relettered by section 53 of part A of chap- 29 ter 389 of the laws of 1997, subsection (i) as added by section 1 of 30 part L of chapter 60 of the laws of 2007, and paragraph 1 of subsection 31 (i) as amended by section 39 of part T of chapter 59 of the laws of 32 2015, is amended to read as follows: 33 § 660. [Election by shareholders of S corporations.] Tax treatment of 34 federal S corporations. (a) [Election.] If a corporation is an [eligi-35ble] S corporation described in subsection (b) of this section, the 36 shareholders of the corporation [may elect in the manner set forth in37subsection (b) of this section to] shall take into account, to the 38 extent provided for in this article (or in article thirteen of this 39 chapter, in the case of a shareholder which is a taxpayer under such 40 article), the S corporation items of income, loss, deduction and 41 reductions for taxes described in paragraphs two and three of subsection 42 (f) of section thirteen hundred sixty-six of the internal revenue code 43 which are taken into account for federal income tax purposes for the 44 taxable year. [No election under this subsection shall be effective45unless all shareholders of the corporation have so elected. An eligible] 46 (b) A New York S corporation is (i) [an S] a corporation that has made 47 a valid election to be an S corporation for federal income tax purposes 48 pursuant to section 1362 of the internal revenue code which is subject 49 to tax under article nine-A of this chapter, or (ii) [an S] a corpo- 50 ration that has made a valid election to be an S corporation for federal 51 income tax purposes pursuant to section 1362 of the internal revenue 52 code which is the parent of a qualified subchapter S subsidiary as 53 defined in subparagraph (B) of paragraph three of subsection (b) of 54 section thirteen hundred sixty-one of the internal revenue code subject 55 to tax under article nine-A[, where the shareholders of such parent56corporation are entitled to make the election under this subsection byS. 2009 74 A. 3009 1reason of subparagraph three of paragraph (k) of subdivision nine of2section two hundred eight] of this chapter. 3 [(b) Requirements of election. An election under subsection (a) of4this section shall be made on such form and in such manner as the tax5commission may prescribe by regulation or instruction.6(1) When made. An election under subsection (a) of this section may be7made at any time during the preceding taxable year of the corporation or8at any time during the taxable year of the corporation and on or before9the fifteenth day of the third month of such taxable year.10(2) Certain elections made during first two and one-half months. If an11election made under subsection (a) of this section is made for any taxa-12ble year of the corporation during such year and on or before the13fifteenth day of the third month of such year, such election shall be14treated as made for the following taxable year if15(A) on one or more days in such taxable year before the day on which16the election was made the corporation did not meet the requirements of17subsection (b) of section thirteen hundred sixty-one of the internal18revenue code or19(B) one or more of the shareholders who held stock in the corporation20during such taxable year and before the election was made did not21consent to the election.22(3) Elections made after first two and one-half months. If an election23under subsection (a) of this section is made for any taxable year of the24corporation and such election is made after the fifteenth day of the25third month of such taxable year and on or before the fifteenth day of26the third month of the following taxable year, such election shall be27treated as made for the following taxable year.28(4) Taxable years of two and one-half months or less. For purposes of29this subsection, an election for a taxable year made not later than two30months and fifteen days after the first day of the taxable year shall be31treated as timely made during such year.32(5) Authority to treat late elections, etc., as timely. If (A) an33election under subsection (a) of this section is made for any taxable34year (determined without regard to paragraph three of this subsection)35after the date prescribed by this subsection for making such election36for such taxable year, or if no such election is made for any taxable37year, and38(B) the commissioner determines that there was reasonable cause for39failure to timely make such election, then40(C) the commissioner may treat such an election as timely made for41such taxable year (and paragraph three of this subsection shall not42apply).43(6) Years for which effective. An election under subsection (a) of44this section shall be effective for the taxable year of the corporation45for which it is made and for all succeeding taxable years of the corpo-46ration until such election is terminated under subsection (c) of this47section.] 48 (c) Termination. An [election under subsection (a) of this section] S 49 corporation shall cease to be [effective50(1)] a New York S corporation on the day an election to be an S corpo- 51 ration ceases to be effective for federal income tax purposes pursuant 52 to subsection (d) of section thirteen hundred sixty-two of the internal 53 revenue code[, or54(2) if shareholders holding more than one-half of the shares of stock55of the corporation on the day on which the revocation is made revokeS. 2009 75 A. 3009 1such election in the manner the tax commission may prescribe by regu-2lation,3(A) on the first day of the taxable year of the corporation, if the4revocation is made during such taxable year and on or before the5fifteenth day of the third month thereof, or6(B) on the first day of the following taxable year of the corporation,7if the revocation is made during the taxable year but after the8fifteenth day of the third month thereof, or9(C) on and after the date so specified, if the revocation specifies a10date for revocation which is on or after the day on which the revocation11is made, or12(3) if any person who was not a shareholder of the corporation on the13day on which the election is made becomes a shareholder in the corpo-14ration and affirmatively refuses to consent to such election in the15manner the tax commission may prescribe by regulation, on the day such16person becomes a shareholder]. 17 (d) New York S termination year. In the case of a New York S termi- 18 nation year, the amount of any item of S corporation income, loss and 19 deduction and reductions for taxes (as described in paragraphs two and 20 three of subsection (f) of section thirteen hundred sixty-six of the 21 internal revenue code) required to be taken account of under this arti- 22 cle shall be adjusted in the same manner that the S corporation's items 23 which are included in the shareholder's federal adjusted gross income 24 are adjusted under subsection (s) of section six hundred twelve. 25 (e) [Inadvertent invalid elections. If (1) an election under26subsection (a) of this section was not effective for the taxable year27for which made (determined without regard to paragraph two of subsection28(b) of this section) by reason of a failure to obtain shareholder29consents,30(2) the commissioner determines that the circumstances resulting in31such ineffectiveness were inadvertent,32(3) no later than a reasonable period of time after discovery of the33circumstances resulting in such ineffectiveness, steps were taken to34acquire the required shareholder consents, and35(4) the corporation, and each person who was a shareholder in the36corporation at any time during the period specified pursuant to this37subsection, agrees to make such adjustments (consistent with the treat-38ment of the corporation as a New York S corporation) as may be required39by the commissioner with respect to such period,40(5) then, notwithstanding the circumstances resulting in such ineffec-41tiveness, such corporation shall be treated as a New York S corporation42during the period specified by the commissioner.43(f) Validated federal elections. If (1) an election under subsection44(a) of this section was made for a taxable year or years of a corpo-45ration, which years occur with or within the period for which the feder-46al S election of such corporation has been validated pursuant to the47provisions of subsection (f) of section thirteen hundred sixty-two of48the internal revenue code, and49(2) the corporation, and each person who was a shareholder in the50corporation at any time during such taxable year or years agrees to make51such adjustments (consistent with the treatment of the corporation as a52New York S corporation) as may be required by the commissioner with53respect to such year or years,54(3) then such corporation shall be treated as a New York S corporation55during such year or years.S. 2009 76 A. 3009 1(g) Transitional rule. Any election made under this section (as in2effect for taxable years beginning before January first, nineteen3hundred eighty-three) shall be treated as an election made under4subsection (a) of this section.5(h)] Qualified subchapter S subsidiaries. If an S corporation has 6 elected to treat its wholly owned subsidiary as a qualified subchapter S 7 subsidiary for federal income tax purposes under paragraph three of 8 subsection (b) of section 1361 of the internal revenue code, such 9 election shall be applicable for New York state tax purposes and 10 (1) the assets, liabilities, income, deductions, property, payroll, 11 receipts, capital, credits, and all other tax attributes and elements of 12 economic activity of the subsidiary shall be deemed to be those of the 13 parent corporation, 14 (2) transactions between the parent corporation and the subsidiary, 15 including the payment of interest and dividends, shall not be taken into 16 account, and 17 (3) general executive officers of the subsidiary shall be deemed to be 18 general executive officers of the parent corporation. 19 (f) Cross reference. For definitions relating to S corporations, see 20 subdivision one-A of section two hundred eight of this chapter. 21 [(i) Mandated New York S corporation election. (1) Notwithstanding22the provisions in subsection (a) of this section, in the case of an23eligible S corporation for which the election under subsection (a) of24this section is not in effect for the current taxable year, the share-25holders of an eligible S corporation are deemed to have made that26election effective for the eligible S corporation's entire current taxa-27ble year, if the eligible S corporation's investment income for the28current taxable year is more than fifty percent of its federal gross29income for such year. In determining whether an eligible S corporation30is deemed to have made that election, the income of a qualified subchap-31ter S subsidiary owned directly or indirectly by the eligible S corpo-32ration shall be included with the income of the eligible S corporation.33(2) For the purposes of this subsection, the term "eligible S corpo-34ration" has the same definition as in subsection (a) of this section.35(3) For the purposes of this subsection, the term "investment income"36means the sum of an eligible S corporation's gross income from interest,37dividends, royalties, annuities, rents and gains derived from dealings38in property, including the corporation's share of such items from a39partnership, estate or trust, to the extent such items would be includa-40ble in federal gross income for the taxable year.41(4) Estimated tax payments. When making estimated tax payments42required to be made under this chapter in the current tax year, the43eligible S corporation and its shareholders may rely on the eligible S44corporation's filing status for the prior year. If the eligible S corpo-45ration's filing status changes from the prior tax year the corporation46or the shareholders, as the case may be, which made the payments shall47be entitled to a refund of such estimated tax payments. No additions to48tax with respect to any required declarations or payments of estimated49tax imposed under this chapter shall be imposed on the corporation or50shareholders, whichever is the taxpayer for the current taxable year, if51the corporation or the shareholders file such declarations and make such52estimated tax payments by January fifteenth of the following calendar53year, regardless of whether the taxpayer's tax year is a calendar or a54fiscal year.]S. 2009 77 A. 3009 1 § 5. Subparagraph (A) of paragraph 18 of subsection (b) of section 612 2 of the tax law, as amended by chapter 28 of the laws of 1987, is amended 3 to read as follows: 4 (A) [where the election provided for in subsection (a) of section six5hundred sixty is in effect with respect to such corporation] that is a 6 New York S corporation, an amount equal to his pro rata share of the 7 corporation's reductions for taxes described in paragraphs two and three 8 of subsection (f) of section thirteen hundred sixty-six of the internal 9 revenue code, and 10 § 6. Paragraph 19 of subsection (b) of section 612 of the tax law is 11 REPEALED. 12 § 7. Paragraphs 20 and 21 of subsection (b) of section 612 of the tax 13 law, paragraph 20 as amended by chapter 606 of the laws of 1984 and 14 paragraph 21 as amended by section 70 of part A of chapter 59 of the 15 laws of 2014, are amended to read as follows: 16 (20) S corporation distributions to the extent not included in federal 17 gross income for the taxable year because of the application of section 18 thirteen hundred sixty-eight, subsection (e) of section thirteen hundred 19 seventy-one or subsection (c) of section thirteen hundred seventy-nine 20 of the internal revenue code which represent income not previously 21 subject to tax under this article because the election provided for in 22 subsection (a) of section six hundred sixty in effect for taxable years 23 beginning before January first, two thousand eighteen had not been made. 24 Any such distribution treated in the manner described in paragraph two 25 of subsection (b) of section thirteen hundred sixty-eight of the inter- 26 nal revenue code for federal income tax purposes shall be treated as 27 ordinary income for purposes of this article. 28 (21) In relation to the disposition of stock or indebtedness of a 29 corporation which elected under subchapter s of chapter one of the 30 internal revenue code for any taxable year of such corporation begin- 31 ning, in the case of a corporation taxable under article nine-A of this 32 chapter, after December thirty-first, nineteen hundred eighty and before 33 January first, two thousand eighteen, the amount required to be added to 34 federal adjusted gross income pursuant to subsection (n) of this 35 section. 36 § 8. Paragraph 21 of subsection (c) of section 612 of the tax law, as 37 amended by section 70 of part A of chapter 59 of the laws of 2014, is 38 amended to read as follows: 39 (21) In relation to the disposition of stock or indebtedness of a 40 corporation which elected under subchapter s of chapter one of the 41 internal revenue code for any taxable year of such corporation begin- 42 ning, in the case of a corporation taxable under article nine-A of this 43 chapter, after December thirty-first, nineteen hundred eighty and before 44 January first, two thousand eighteen, the amounts required to be 45 subtracted from federal adjusted gross income pursuant to subsection (n) 46 of this section. 47 § 9. Paragraph 22 of subsection (c) of section 612 of the tax law is 48 REPEALED. 49 § 10. Subsection (e) of section 612 of the tax law, as amended by 50 chapter 166 of the laws of 1991 and paragraph 3 as added by chapter 760 51 of the laws of 1992, is amended to read as follows: 52 (e) Modifications of partners and shareholders of S corporations. (1) 53 Partners and shareholders of S corporations [which are not New York C54corporations]. The amounts of modifications required to be made under 55 this section by a partner or by a shareholder of an S corporation 56 [(other than an S corporation which is a New York C corporation)], whichS. 2009 78 A. 3009 1 relate to partnership or S corporation items of income, gain, loss or 2 deduction shall be determined under section six hundred seventeen and, 3 in the case of a partner of a partnership doing an insurance business as 4 a member of the New York insurance exchange described in section six 5 thousand two hundred one of the insurance law, under section six hundred 6 seventeen-a of this article. 7 (2) [Shareholders of S corporations which are New York C corporations.8In the case of a shareholder of an S corporation which is a New York C9corporation, the modifications under this section which relate to the10corporation's items of income, loss and deduction shall not apply,11except for the modifications provided under paragraph nineteen of12subsection (b) and paragraph twenty-two of subsection (c) of this13section.14(3)] New York S termination year. In the case of a New York S termi- 15 nation year, the amounts of the modifications required under this 16 section which relate to the S corporation's items of income, loss, 17 deduction and reductions for taxes (as described in paragraphs two and 18 three of subsection (f) of section thirteen hundred sixty-six of the 19 internal revenue code) shall be adjusted in the same manner that the S 20 corporation's items are adjusted under subsection (s) of [section six21hundred twelve] this section. 22 § 11. Subsection (n) of section 612 of the tax law, as amended by 23 section 61 of part A of chapter 389 of the laws of 1997, is amended to 24 read as follows: 25 (n) Where gain or loss is recognized for federal income tax purposes 26 upon the disposition of stock or indebtedness of a corporation electing 27 under subchapter s of chapter one of the internal revenue code 28 (1) There shall be added to federal adjusted gross income the amount 29 of increase in basis with respect to such stock or indebtedness pursuant 30 to subsection (a) of section thirteen hundred seventy-six of the inter- 31 nal revenue code as such section was in effect for taxable years begin- 32 ning before January first, nineteen hundred eighty-three and subpara- 33 graphs (A) and (B) of paragraph one of subsection (a) of section 34 thirteen hundred sixty-seven of such code, for each taxable year of the 35 corporation beginning, in the case of a corporation taxable under arti- 36 cle nine-A of this chapter, after December thirty-first, nineteen 37 hundred eighty and before January first, two thousand eighteen, and in 38 the case of a corporation taxable under article thirty-two of this chap- 39 ter, after December thirty-first, nineteen hundred ninety-six and before 40 January first, two thousand fifteen, for which the election provided for 41 in subsection (a) of section six hundred sixty of this article was not 42 in effect, and 43 (2) There shall be subtracted from federal adjusted gross income 44 (A) the amount of reduction in basis with respect to such stock or 45 indebtedness pursuant to subsection (b) of section thirteen hundred 46 seventy-six of the internal revenue code as such section was in effect 47 for taxable years beginning before January first, nineteen hundred 48 eighty-three and subparagraphs (B) and (C) of paragraph two of 49 subsection (a) of section thirteen hundred sixty-seven of such code, for 50 each taxable year of the corporation beginning, in the case of a corpo- 51 ration taxable under article nine-A of this chapter, after December 52 thirty-first, nineteen hundred eighty and before January first, two 53 thousand eighteen, and in the case of a corporation taxable under arti- 54 cle thirty-two of this chapter, after December thirty-first, nineteen 55 hundred ninety-six and before January first, two thousand fifteen, forS. 2009 79 A. 3009 1 which the election provided for in subsection (a) of section six hundred 2 sixty of this article was not in effect and 3 (B) the amount of any modifications to federal gross income with 4 respect to such stock pursuant to paragraph twenty of subsection (b) of 5 this section. 6 § 12. Subparagraph (E-1) of paragraph 1 of subsection (b) of section 7 631 of the tax law, as added by section 3 of part C of chapter 57 of the 8 laws of 2010, is amended to read as follows: 9 (E-1) in the case of [an] a New York S corporation [for which an10election is in effect pursuant to subsection (a) of section six hundred11sixty of this article] that terminates its taxable status in New York, 12 any income or gain recognized on the receipt of payments from an 13 installment sale contract entered into when the S corporation was 14 subject to tax in New York, allocated in a manner consistent with the 15 applicable methods and rules for allocation under article nine-A or 16 thirty-two of this chapter prior to its repeal, in the year that the S 17 corporation sold its assets. 18 § 13. The section heading and paragraph 2 of subsection (a) of section 19 632 of the tax law, the section heading as amended by chapter 606 of the 20 laws of 1984, paragraph 2 of subsection (a) as amended by section 71 of 21 part A of chapter 59 of the laws of 2014 and such section as renumbered 22 by chapter 28 of the laws of 1987, are amended to read as follows: 23 Nonresident partners and [electing] shareholders of S corporations. 24 (2) In determining New York source income of a nonresident shareholder 25 of [an] a New York S corporation [where the election provided for in26subsection (a) of section six hundred sixty of this article is in27effect], there shall be included only the portion derived from or 28 connected with New York sources of such shareholder's pro rata share of 29 items of S corporation income, loss and deduction entering into his 30 federal adjusted gross income, increased by reductions for taxes 31 described in paragraphs two and three of subsection (f) of section thir- 32 teen hundred sixty-six of the internal revenue code, as such portion 33 shall be determined under regulations of the commissioner consistent 34 with the applicable methods and rules for allocation under article 35 nine-A of this chapter, regardless of whether or not such item or 36 reduction is included in entire net income under article nine-A for the 37 tax year. If a nonresident is a shareholder in [an] a New York S corpo- 38 ration [where the election provided for in subsection (a) of section six39hundred sixty of this article is in effect, and the S corporation] that 40 has distributed an installment obligation under section 453(h)(1)(A) of 41 the Internal Revenue Code, then any gain recognized on the receipt of 42 payments from the installment obligation for federal income tax purposes 43 will be treated as New York source income allocated in a manner consist- 44 ent with the applicable methods and rules for allocation under article 45 nine-A of this chapter in the year that the assets were sold. In addi- 46 tion, if the shareholders of the New York S corporation have made an 47 election under section 338(h)(10) of the Internal Revenue Code, then any 48 gain recognized on the deemed asset sale for federal income tax purposes 49 will be treated as New York source income allocated in a manner consist- 50 ent with the applicable methods and rules for allocation under article 51 nine-A of this chapter in the year that the shareholder made the section 52 338(h)(10) election. For purposes of a section 338(h)(10) election, when 53 a nonresident shareholder exchanges his or her S corporation stock as 54 part of the deemed liquidation, any gain or loss recognized shall be 55 treated as the disposition of an intangible asset and will not increaseS. 2009 80 A. 3009 1 or offset any gain recognized on the deemed assets sale as a result of 2 the section 338(h)(10) election. 3 § 14. Subparagraph (A) and the opening paragraph of subparagraph (B) 4 of paragraph 5 of subdivision (a) of section 292 of the tax law, as 5 added by section 48 of part A of chapter 389 of the laws of 1997, are 6 amended to read as follows: 7 (A) In the case of a shareholder of an S corporation, 8 (i) [where the election provided for in subsection (a) of section six9hundred sixty of this chapter is in effect with respect to such corpo-10ration] that is a New York S corporation, there shall be added to feder- 11 al unrelated business taxable income an amount equal to the sharehold- 12 er's pro rata share of the corporation's reductions for taxes described 13 in paragraphs two and three of subsection (f) of section thirteen 14 hundred sixty-six of the internal revenue code, and 15 (ii) [where such election has not been made with respect to such16corporation, there shall be subtracted from federal unrelated business17taxable income any items of income of the corporation included therein,18and there shall be added to federal unrelated business taxable income19any items of loss or deduction included therein, and20(iii)] in the case of a New York S termination year, the amount of any 21 such items of S corporation income, loss, deduction and reductions for 22 taxes shall be adjusted in the manner provided in paragraph two or three 23 of subsection (s) of section six hundred twelve of this chapter. 24 In the case of a shareholder of a corporation which was, for any of 25 its taxable years beginning after nineteen hundred ninety-seven and 26 before two thousand eighteen, a federal S corporation but a New York C 27 corporation: 28 § 15. Transition rules. Any prior net operating loss conversion 29 subtraction pool and net operating loss carryforward that otherwise 30 would have been allowed under subparagraph (viii) of paragraph (a) of 31 subdivision 1 of section 210 of the tax law and subparagraph (ix) of 32 paragraph (a) of subdivision 1 of section 210 of the tax law, respec- 33 tively, for the 2018 or subsequent taxable years, to any taxpayer that 34 was a New York C corporation for the 2017 taxable year, and becomes a 35 New York S corporation for the 2018 taxable year as a result of the 36 amendments made by this act, shall be held in abeyance and be available 37 to such taxpayer if its election to be a federal S corporation is termi- 38 nated. Further, any credit carryforwards that otherwise would have been 39 allowed to such a taxpayer under section 210-B of the tax law for the 40 2018 or subsequent taxable years shall be held in abeyance and be avail- 41 able to such taxpayer if its election to be a federal S corporation is 42 terminated. However, the taxpayer's taxable years as a New York S corpo- 43 ration shall be counted for purposes of computing any time period appli- 44 cable to the allowance of the prior net operating loss conversion 45 subtraction, the net operating loss deduction or any credit carryfor- 46 ward. 47 § 16. This act shall take effect immediately and shall apply to taxa- 48 ble years beginning on or after January 1, 2018. 49 PART Z 50 Section 1. Clause 1 of subparagraph (A) of paragraph 1 of subsection 51 (b) of section 631 of the tax law, as added by section 1 of part F-1 of 52 chapter 57 of the laws of 2009, is amended to read as follows: 53 (1) For purposes of this subparagraph, the term "real property located 54 in this state" includes an interest in a partnership, limited liabilityS. 2009 81 A. 3009 1 corporation, S corporation, or non-publicly traded C corporation with 2 one hundred or fewer shareholders (hereinafter the "entity") that owns 3 real property that is located in New York [and has a fair market value4that] or owns shares of stock in a cooperative housing corporation where 5 the cooperative units relating to the shares are located in New York; 6 provided, that the sum of the fair market values of such real property, 7 cooperative shares, and related cooperative units equals or exceeds 8 fifty percent of all the assets of the entity on the date of sale or 9 exchange of the taxpayer's interest in the entity. Only those assets 10 that the entity owned for at least two years before the date of the sale 11 or exchange of the taxpayer's interest in the entity are to be used in 12 determining the fair market value of all the assets of the entity on the 13 date of sale or exchange. The gain or loss derived from New York sources 14 from the taxpayer's sale or exchange of an interest in an entity that is 15 subject to the provisions of this subparagraph is the total gain or loss 16 for federal income tax purposes from that sale or exchange multiplied by 17 a fraction, the numerator of which is the fair market value of the real 18 property, and the cooperative housing corporation stock and related 19 cooperative units located in New York on the date of sale or exchange 20 and the denominator of which is the fair market value of all the assets 21 of the entity on the date of sale or exchange. 22 § 2. This act shall take effect immediately and shall apply to taxable 23 years beginning on or after January 1, 2017. 24 PART AA 25 Section 1. Paragraph 1 of subsection (a) of section 632 of the tax 26 law, as amended by chapter 28 of the laws of 1987, is amended to read as 27 follows: 28 (1) In determining New York source income of a nonresident partner of 29 any partnership, there shall be included only the portion derived from 30 or connected with New York sources of such partner's distributive share 31 of items of partnership income, gain, loss and deduction entering into 32 his federal adjusted gross income, as such portion shall be determined 33 under regulations of the tax commission consistent with the applicable 34 rules of section six hundred thirty-one of this part. If a nonresident 35 is a partner in a partnership where a sale or transfer of the membership 36 interest of the partner is subject to the provisions of section one- 37 thousand sixty of the internal revenue code, then any gain recognized on 38 the sale or transfer for federal income tax purposes shall be treated as 39 New York source income allocated in a manner consistent with the appli- 40 cable methods and rules for allocation under this article in the year 41 that the assets were sold or transferred. 42 § 2. This act shall take effect immediately 43 PART BB 44 Section 1. Section 1101 of the tax law is amended by adding a new 45 subdivision (e) to read as follows: 46 (e) When used in this article for the purposes of the taxes imposed 47 under subdivision (a) of section eleven hundred five of this article and 48 by section eleven hundred ten of this article, the following terms shall 49 mean: 50 (1) Marketplace provider. A person who, pursuant to an agreement with 51 a marketplace seller, facilitates sales of tangible personal property by 52 such marketplace seller or sellers. A person "facilitates a sale ofS. 2009 82 A. 3009 1 tangible personal property" for purposes of this paragraph when the 2 person meets both of the following conditions: (i) such person provides 3 the forum in which, or by means of which, the sale takes place or the 4 offer of sale is accepted, including a shop, store, or booth, an inter- 5 net website, catalog, or similar forum; and (ii) such person or an 6 affiliate of such person collects the receipts paid by a customer to a 7 marketplace seller for a sale of tangible personal property, or 8 contracts with a third party to collect such receipts. For purposes of 9 this paragraph, two persons are affiliated if one person has an owner- 10 ship interest of more than five percent, whether direct or indirect, in 11 the other, or where an ownership interest of more than five percent, 12 whether direct or indirect, is held in each of such persons by another 13 person or by a group of other persons that are affiliated persons with 14 respect to each other. Notwithstanding anything in this paragraph, a 15 person who facilitates sales exclusively by means of the internet is not 16 a marketplace provider for a sales tax quarter when such person can show 17 that it has facilitated less than one hundred million dollars of sales 18 annually for every calendar year after two thousand fifteen. 19 (2) Marketplace seller. Any person, whether or not such person is 20 required to obtain a certificate of authority under section eleven 21 hundred thirty-four of this article, who has an agreement with a market- 22 place provider under which the marketplace provider will facilitate 23 sales of tangible personal property by such person within the meaning of 24 paragraph one of this subdivision. 25 § 2. Subdivision 1 of section 1131 of the tax law, as amended by chap- 26 ter 576 of the laws of 1994, is amended to read as follows: 27 (1) "Persons required to collect tax" or "person required to collect 28 any tax imposed by this article" shall include: every vendor of tangible 29 personal property or services; every recipient of amusement charges; 30 [and] every operator of a hotel, and every marketplace provider with 31 respect to sales of tangible personal property it facilitates as 32 described in paragraph one of subdivision (e) of section eleven hundred 33 one of this article. Said terms shall also include any officer, director 34 or employee of a corporation or of a dissolved corporation, any employee 35 of a partnership, any employee or manager of a limited liability compa- 36 ny, or any employee of an individual proprietorship who as such officer, 37 director, employee or manager is under a duty to act for such corpo- 38 ration, partnership, limited liability company or individual proprietor- 39 ship in complying with any requirement of this article; and any member 40 of a partnership or limited liability company. Provided, however, that 41 any person who is a vendor solely by reason of clause (D) or (E) of 42 subparagraph (i) of paragraph (8) of subdivision (b) of section eleven 43 hundred one of this article shall not be a "person required to collect 44 any tax imposed by this article" until twenty days after the date by 45 which such person is required to file a certificate of registration 46 pursuant to section eleven hundred thirty-four of this part. 47 § 3. Section 1132 of the tax law is amended by adding a new subdivi- 48 sion (l) to read as follows: 49 (l) (1) A marketplace provider, with respect to a sale of tangible 50 personal property it facilitates: (i) shall have all the obligations and 51 rights of a vendor under this article and article twenty-nine of this 52 chapter and under any regulations adopted pursuant thereto, including, 53 but not limited to, the duty to obtain a certificate of authority, to 54 collect tax, file returns, remit tax, and the right to accept a certif- 55 icate or other documentation from a customer substantiating an exemption 56 or exclusion from tax, the right to receive the refund authorized byS. 2009 83 A. 3009 1 subdivision (e) of this section and the credit allowed by subdivision 2 (f) of section eleven hundred thirty-seven of this part subject to the 3 provisions of such subdivision; and (ii) shall keep such records and 4 information and cooperate with the commissioner to ensure the proper 5 collection and remittance of tax imposed collected or required to be 6 collected under this article and article twenty-nine of this chapter. 7 (2) A marketplace seller who is a vendor is relieved from the duty to 8 collect tax in regard to a particular sale of tangible personal property 9 subject to tax under subdivision (a) of section eleven hundred five of 10 this article and shall not include the receipts from such sale in its 11 taxable receipts for purposes of section eleven hundred thirty-six of 12 this part if, in regard to such sale: (i) the marketplace seller can 13 show that such sale was facilitated by a marketplace provider from whom 14 such seller has received in good faith a properly completed certificate 15 of collection in a form prescribed by the commissioner, certifying that 16 the marketplace provider is registered to collect sales tax and will 17 collect sales tax on all taxable sales of tangible personal property by 18 the marketplace seller facilitated by the marketplace provider, and with 19 such other information as the commissioner may prescribe; and (ii) any 20 failure of the marketplace provider to collect the proper amount of tax 21 in regard to such sale was not the result of such marketplace seller 22 providing the marketplace provider with incorrect information. This 23 provision shall be administered in a manner consistent with subparagraph 24 (i) of paragraph one of subdivision (c) of this section as if a certif- 25 icate of collection were a resale or exemption certificate for purposes 26 of such subparagraph, including with regard to the completeness of such 27 certificate of collection and the timing of its acceptance by the 28 marketplace seller. Provided that, with regard to any sales of tangible 29 personal property by a marketplace seller that are facilitated by a 30 marketplace provider who is affiliated with such marketplace seller 31 within the meaning of paragraph one of subdivision (e) of section eleven 32 hundred one of this article, the marketplace seller shall be deemed 33 liable as a person under a duty to act for such marketplace provider for 34 purposes of subdivision one of section eleven hundred thirty-one of this 35 part. 36 (3) The commissioner may, in his or her discretion: (i) develop a 37 standard provision, or approve a provision developed by a marketplace 38 provider, in which the marketplace provider obligates itself to collect 39 the tax on behalf of all the marketplace sellers for whom the market- 40 place provider facilitates sales of tangible personal property, with 41 respect to all sales that it facilitates for such sellers where delivery 42 occurs in the state; and (ii) provide by regulation or otherwise that 43 the inclusion of such provision in the publicly-available agreement 44 between the marketplace provider and marketplace seller will have the 45 same effect as a marketplace seller's acceptance of a certificate of 46 collection from such marketplace provider under paragraph two of this 47 subdivision. 48 § 4. Section 1133 of the tax law is amended by adding a new subdivi- 49 sion (f) to read as follows: 50 (f) A marketplace provider is relieved of liability under this section 51 for failure to collect the correct amount of tax to the extent that the 52 marketplace provider can show that the error was due to incorrect infor- 53 mation given to the marketplace provider by the marketplace seller. 54 Provided, however, this subdivision shall not apply if the marketplace 55 seller and marketplace provider are affiliated within the meaning ofS. 2009 84 A. 3009 1 paragraph one of subdivision (e) of section eleven hundred one of this 2 article. 3 § 5. Paragraph 4 of subdivision (a) of section 1136 of the tax law, as 4 amended by section 46 of part K of chapter 61 of the laws of 2011, is 5 amended to read as follows: 6 (4) The return of a vendor of tangible personal property or services 7 shall show such vendor's receipts from sales and the number of gallons 8 of any motor fuel or diesel motor fuel sold and also the aggregate value 9 of tangible personal property and services and number of gallons of such 10 fuels sold by the vendor, the use of which is subject to tax under this 11 article, and the amount of tax payable thereon pursuant to the 12 provisions of section eleven hundred thirty-seven of this part. The 13 return of a recipient of amusement charges shall show all such charges 14 and the amount of tax thereon, and the return of an operator required to 15 collect tax on rents shall show all rents received or charged and the 16 amount of tax thereon. The return of a marketplace seller shall exclude 17 the receipts from a sale of tangible personal property facilitated by a 18 marketplace provider if, in regard to such sale: (A) the marketplace 19 seller has timely received in good faith a properly completed certif- 20 icate of collection from the marketplace provider or the marketplace 21 provider has included a provision approved by the commissioner in the 22 publicly-available agreement between the marketplace provider and the 23 marketplace seller as described in subdivision (1) of section eleven 24 hundred thirty-two of this part, and (B) the information provided by the 25 marketplace seller to the marketplace provider about such tangible 26 personal property is accurate. 27 § 6. Section 1142 of the tax law is amended by adding a new subdivi- 28 sion 15 to read as follows: 29 15. To publish a list on the department's website of marketplace 30 providers whose certificate of authority has been revoked and, if neces- 31 sary to protect sales tax revenue, provide by regulation or otherwise 32 that a marketplace seller who is a vendor will be relieved of the duty 33 to collect tax for sales of tangible personal property facilitated by a 34 marketplace provider only if, in addition to the conditions prescribed 35 by paragraph two of subdivision (1) of section eleven hundred thirty-two 36 of this part being met, such marketplace provider is not on such list at 37 the commencement of the calendar year in which the sale was made. 38 § 7. This act shall take effect September 1, 2017, and shall apply to 39 sales made on or after that date. 40 PART CC 41 Section 1. Paragraph 4 of subdivision (b) of section 1101 of the tax 42 law is amended by adding a new subparagraph (v) to read as follows: 43 (v) Notwithstanding the provisions of subparagraph (i) of this para- 44 graph, the following sales of tangible personal property shall be deemed 45 to be retail sales: (A) a sale to a single member limited liability 46 company or a subsidiary for resale to its member or owner, where such 47 single member limited liability company or subsidiary is disregarded as 48 an entity separate from its owner for federal income tax purposes (with- 49 out reference to any special rules related to the imposition of certain 50 federal taxes), including but not limited to certain employment and 51 excise taxes; (B) a sale to a partnership for resale to one or more of 52 its partners; or (C) a sale to a trustee of a trust for resale to one or 53 more beneficiaries of such trust.S. 2009 85 A. 3009 1 § 2. Subdivision 2 of section 1118 of the tax law, as amended by 2 section 4 of subpart B of part S of chapter 57 of the laws of 2010, is 3 amended to read as follows: 4 (2)(a) In respect to the use of property or services purchased by the 5 user while a nonresident of this state, except in the case of tangible 6 personal property or services which the user, in the performance of a 7 contract, incorporates into real property located in the state. A person 8 while engaged in any manner in carrying on in this state any employment, 9 trade, business or profession, shall not be deemed a nonresident with 10 respect to the use in this state of property or services in such employ- 11 ment, trade, business or profession. This exemption does not apply to 12 the use of qualified property where the qualified property is purchased 13 primarily to carry individuals, whether or not for hire, who are agents, 14 employees, officers, shareholders, members, managers, partners, or 15 directors of (A) the purchaser, where any of those individuals was a 16 resident of this state when the qualified property was purchased or (B) 17 any affiliated person that was a resident when the qualified property 18 was purchased. For purposes of this subdivision: (i) persons are affil- 19 iated persons with respect to each other where one of the persons has an 20 ownership interest of more than five percent, whether direct or indi- 21 rect, in the other, or where an ownership interest of more than five 22 percent, whether direct or indirect, is held in each of the persons by 23 another person or by a group of other persons that are affiliated 24 persons with respect to each other; (ii) "qualified property" means 25 [aircraft,] vessels and motor vehicles; and (iii) "carry" means to take 26 any person from one point to another, whether for the business purposes 27 or pleasure of that person. For an exception to the exclusions from the 28 definition of "retail sale" applicable to [aircraft and] vessels, see 29 subdivision (q) of section eleven hundred eleven of this article. 30 (b) Notwithstanding any provision of this article to the contrary, the 31 exclusion in paragraph (a) of this subdivision shall not apply to the 32 use within the state of property or a service purchased outside this 33 state by a nonresident that is not an individual, unless such nonresi- 34 dent has been doing business outside the state for at least six months 35 prior to the date such nonresident brought such property or service into 36 this state. 37 § 3. This act shall take effect immediately. 38 PART DD 39 Section 1. Section 1105-C of the tax law, as added by section 24-a of 40 part Y of chapter 63 of the laws of 2000, and subdivision (d) as added 41 by section 1 of part B of chapter 85 of the laws of 2002, is amended to 42 read as follows: 43 § 1105-C. Reduced tax rates with respect to certain gas service and 44 electric service. Notwithstanding any other provisions of this article 45 or article twenty-nine of this chapter: 46 (a) The rates of taxes imposed by this article and pursuant to the 47 authority of article twenty-nine of this chapter on receipts from every 48 sale of gas service or electric service of whatever nature (including 49 the transportation, transmission or distribution of gas or electricity, 50 but not including gas or electricity) shall be [reduced each year on51September first, beginning in the year two thousand, and each year ther-52eafter, at the rate per year of twenty-five percent of the rates in53effect on September first, two thousand, so that the rates of such taxes54on such receipts shall be] zero percent [on and after September first,S. 2009 86 A. 3009 1two thousand three] unless the charge is by the vendor for transporta- 2 tion, transmission or distribution, regardless of whether such charges 3 are separately stated in the written contract, if any, or on the bill 4 rendered to such purchaser and regardless of whether such transporta- 5 tion, transmission, or distribution is provided by such vendor or a 6 third party. 7 (b) [The provisions of subdivision (b) of section eleven hundred six8of this article shall apply to the reduced rates described in subdivi-9sion (a) of this section, as if such section referred to this section,10provided that any reference in subdivision (b) of such section eleven11hundred six to the date August first, nineteen hundred sixty-five, shall12be deemed to refer, respectively, to September first of the applicable13years described in subdivision (a) of this section, and any reference in14subdivision (b) of such section eleven hundred six to July thirty-first,15nineteen hundred sixty-five, shall be deemed to refer to the day imme-16diately preceding each such September first, respectively.17(c) Nothing in this section shall be deemed to exempt from the taxes18imposed under this article or pursuant to the authority of article twen-19ty-nine of this chapter any transaction which may not be subject to the20reduced rates of such taxes, each year, as set forth in subdivision (a)21of this section in effect on the respective September first.22(d)] For [the purpose] purposes of [the reduced rate of tax provided23by] subdivision (a) of this section, [the following shall apply to a24sale, other than a sale for resale, of the] where the transportation, 25 transmission or distribution of gas or electricity [by a vendor not26subject to the supervision of the public service commission where such27transportation, transmission or distribution service being] is sold [is] 28 wholly within a service area of the state wherein the public service 29 commission [shall have] has approved by formal order a single retailer 30 model for the regulated utility which has the responsibility to serve 31 that area[. Where such a vendor makes a sale, other than a sale for32resale, of gas or electricity to be delivered to a customer within such33service area and, for the purpose of transporting, transmitting or34distributing such gas or electricity, also makes a sale of transporta-35tion, transmission or distribution service to such customer], the charge 36 for [the] such transportation, transmission or distribution [of gas or37electricity wholly within such service area made by such vendor,38notwithstanding paragraph three of subdivision (b) of section eleven39hundred one of this article, shall not be included in the receipt for40such gas or electricity, and, therefore,] when made by the provider who 41 also sells, other than as a sale for resale, the gas or electricity, 42 shall qualify for such reduced rate. 43 § 2. This act shall take effect immediately. 44 PART EE 45 Section 1. Subdivision 1 of section 186-f of the tax law is amended by 46 adding three new paragraphs (f), (g) and (h) to read as follows: 47 (f) "Prepaid wireless communications seller" means a person making a 48 retail sale of prepaid wireless communications service or a prepaid 49 wireless communications device. 50 (g) "Prepaid wireless communications device" means any equipment used 51 to access a prepaid wireless communications service. 52 (h) "Prepaid wireless communications service" means a prepaid mobile 53 calling service as defined in paragraph twenty-two of subdivision (b) of 54 section eleven hundred one of this chapter.S. 2009 87 A. 3009 1 § 2. Subdivision 2 of section 186-f of the tax law, as added by 2 section 3 of part B of chapter 56 of the laws of 2009, is amended to 3 read as follows: 4 2. Public safety communications surcharge. (a) (1) A surcharge on 5 wireless communications service provided to a wireless communications 6 customer with a place of primary use in this state is imposed at the 7 rate of one dollar and twenty cents per month on each wireless communi- 8 cations device in service during any part of each month. The surcharge 9 must be reflected and made payable on bills rendered to the wireless 10 communications customer for wireless communication service. 11 [(b)] (2) Each wireless communications service supplier providing 12 wireless communications service in New York state must act as a 13 collection agent for the state for the collection of the surcharge. The 14 wireless communications service supplier has no legal obligation to 15 enforce the collection of the surcharge from its customers. However, 16 each wireless communications service supplier must collect and retain 17 the name and address of any wireless communications customer with a 18 place of primary use in this state that refuses or fails to pay the 19 surcharge, as well as the cumulative amount of the surcharge remaining 20 unpaid, and must provide this information to the commissioner at the 21 time and according to the procedures the commissioner may provide. The 22 surcharge must be reported and paid to the commissioner on a quarterly 23 basis on or before the fifteenth day of the month following each quar- 24 terly period ending on the last day of February, May, August and Novem- 25 ber, respectively. The payments must be accompanied by a return in the 26 form and containing the information the commissioner may prescribe. 27 [(c)] (3) The surcharge must be added as a separate line item to bills 28 furnished by a wireless communications service supplier to its custom- 29 ers, and must be identified as the "public safety communications 30 surcharge". Each wireless communications customer who is subject to the 31 provisions of this section remains liable to the state for the surcharge 32 due under this section until it has been paid to the state, except that 33 payment to a wireless communications service supplier is sufficient to 34 relieve the customer from further liability for the surcharge. 35 [(d) Each wireless communications service supplier is entitled to36retain, as an administrative fee, an amount equal to two percent of37fifty-eight and three-tenths percent of the total collections of the38surcharge imposed by this section, provided that the supplier files any39required return and remits the surcharge due to the commissioner on or40before its due date.] 41 (b)(1) A surcharge is imposed on the retail sale of each prepaid wire- 42 less communications service or device at the rate of: (i) sixty cents 43 per retail sale that does not exceed thirty dollars; and (ii) one dollar 44 and twenty cents per retail sale that exceeds thirty dollars. 45 (2) For purposes of this paragraph, a sale of a prepaid wireless 46 communications service or device occurs in this state if the sale takes 47 place at a seller's business location in the state. If the sale does not 48 take place at the seller's place of business, it shall be conclusively 49 determined to take place at the purchaser's shipping address or, if 50 there is no item shipped, at the purchaser's billing address, or, if the 51 seller does not have that address, at such address as approved by the 52 commissioner that reasonably reflects the customer's location at the 53 time of the sale of the prepaid wireless communications service or 54 device. 55 (3) Each prepaid wireless communications seller in New York state must 56 act as a collection agent for the state for the collection of theS. 2009 88 A. 3009 1 surcharge. The surcharge must be reported and paid to the commissioner 2 on a quarterly basis on or before the fifteenth day of the month follow- 3 ing each quarterly period ending on the last day of February, May, 4 August and November, respectively. The payments must be accompanied by a 5 return in the form and containing the information the commissioner may 6 prescribe. 7 (4) The surcharge must be added as a separate line item to a sales 8 slip, invoice, receipt, or other statement of the price, if any, that is 9 furnished by a prepaid wireless communications seller to a purchaser, 10 and must be identified as the "public safety communications surcharge." 11 Each purchaser of a prepaid wireless communications service or device in 12 this state remains liable to the state for the surcharge due under this 13 section until it has been paid to the state, except that payment to a 14 prepaid wireless communications seller is sufficient to relieve the 15 purchaser from further liability for such surcharge. 16 § 3. The county law is amended by adding a new section 309 to read as 17 follows: 18 § 309. Establishment of prepaid wireless surcharge for system costs. 19 1. Definitions. When used in this article, where not otherwise specif- 20 ically defined and unless the specific context clearly indicates other- 21 wise: 22 (a) "Prepaid wireless communications seller" means a person making a 23 retail sale of prepaid wireless communications service or a prepaid 24 wireless communications device. 25 (b) "Prepaid wireless communications device" means any equipment used 26 to access a prepaid wireless communications service. 27 (c) "Prepaid wireless communications service" means a prepaid mobile 28 calling service as defined in paragraph twenty-two of subdivision (b) of 29 section eleven hundred one of the tax law. 30 2. Notwithstanding the provisions of any law to the contrary, any 31 municipality, as defined in section three hundred one of this article, 32 that is authorized to impose an enhanced emergency telephone system 33 surcharge on wireless communications service under this article, is 34 hereby authorized and empowered to adopt, amend or repeal local laws, 35 acting through its board, to impose a surcharge on the retail sale of 36 each prepaid wireless communications service or device, in an amount not 37 to exceed thirty cents per retail sale within such municipality. The 38 proceeds from such surcharge shall be used to pay for the costs associ- 39 ated with obtaining, operating and maintaining the telecommunication 40 equipment and telephone services needed to provide an enhanced 911 emer- 41 gency telephone system to serve such municipality. 42 3. For purposes of this section, a sale of a prepaid wireless communi- 43 cations service or device occurs in a municipality if the sale takes 44 place at a seller's business location in the municipality. If the sale 45 does not take place at the seller's place of business, it shall be 46 conclusively determined to take place at the purchaser's shipping 47 address in the municipality or, if there is no item shipped, at the 48 purchaser's billing address in the municipality, or, if the seller does 49 not have that address, at such address that reasonably reflects the 50 customer's location at the time of the sale of the prepaid wireless 51 communications service or device. 52 4. Any such local law shall state the amount of the surcharge and the 53 date on which sellers in the municipality shall begin to collect such 54 surcharge. Any seller of a prepaid wireless communications service or 55 device within a municipality that has imposed a surcharge pursuant to 56 the provisions of this section shall be given a minimum of forty-fiveS. 2009 89 A. 3009 1 days written notice prior to the date it shall be required to begin to 2 collect such surcharge or prior to any modification to or change in the 3 surcharge amount. 4 5. (a) Each prepaid wireless communications seller in a municipality 5 shall act as collection agent for such municipality and shall remit the 6 funds collected pursuant to a surcharge imposed under the provisions of 7 this section to the chief fiscal officer of the municipality every 8 month. Such funds shall be remitted no later than thirty days after the 9 last business day of the month. 10 (b) The seller shall be entitled to retain, as an administrative fee, 11 an amount equal to two percent of its collections of the surcharge 12 imposed under this article. 13 (c) The surcharge shall be added to and stated separately on a sales 14 slip, invoice, receipt, or other statement of the price, if any, that is 15 provided to the purchaser. 16 (d) The seller shall provide to the municipality an accounting of the 17 surcharge amounts collected no more frequently than annually upon writ- 18 ten request from the municipality's chief fiscal officer. 19 (e) Each purchaser of a prepaid wireless communications service or 20 device in a municipality that has imposed such surcharge shall be liable 21 to the municipality for the surcharge until it has been paid to the 22 municipality, except that payment to a prepaid wireless communications 23 seller is sufficient to relieve the purchaser from further liability for 24 such surcharge. 25 6. All surcharge monies remitted to a municipality by a prepaid wire- 26 less communications seller shall be expended only upon authorization of 27 the legislative body of a municipality and only for payment of eligible 28 wireless 911 service costs as defined in subdivision sixteen of section 29 three hundred twenty-five of this chapter. The municipality shall sepa- 30 rately account for and keep adequate books and records of the amount and 31 source of all such monies and of the amount and object or purpose of all 32 expenditures thereof. If, at the end of any fiscal year, the total 33 amount of all such monies exceeds the amount necessary for payment of 34 the above mentioned costs in such fiscal year, such excess shall be 35 reserved and carried over for the payment of those costs in the follow- 36 ing fiscal year. 37 § 4. This act shall take effect December 1, 2017. 38 PART FF 39 Section 1. Subdivision 8 of section 1399-n of the public health law, 40 as amended by chapter 13 of the laws of 2003, is amended and a new 41 subdivision 9 is added to read as follows: 42 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or 43 any other matter or substance which contains tobacco, the burning of an 44 herbal cigarette, or the use of a vapor product. 45 9. "Vapor product" means any noncombustible liquid or gel, regardless 46 of the presence of nicotine therein, that is manufactured into a 47 finished product for use in an electronic cigarette, electronic cigar, 48 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 49 similar device. "Vapor product" shall not include any product approved 50 by the United States food and drug administration as a drug or medical 51 device, or approved for use pursuant to section three thousand three 52 hundred sixty-two of this chapter.S. 2009 90 A. 3009 1 § 2. The article heading of article 13-F of the public health law, as 2 amended by chapter 448 of the laws of 2012, is amended to read as 3 follows: 4 REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND [SMOKING5PARAPHERNALIA] VAPOR PRODUCTS; DISTRIBUTION TO MINORS 6 § 3. Subdivisions 5, 8, and 13 of section 1399-aa of the public health 7 law, subdivision 5 as amended by chapter 152 of the laws of 2004, subdi- 8 vision 8 as added by chapter 13 of the laws of 2003, and subdivision 13 9 as amended by chapter 542 of the laws of 2014, are amended to read as 10 follows: 11 5. "Tobacco products" means one or more cigarettes or cigars, bidis, 12 chewing tobacco, powdered tobacco, shisha nicotine water or any other 13 product containing or derived from tobacco [products]. 14 8. "Tobacco business" means a sole proprietorship, corporation, limit- 15 ed liability company, partnership or other enterprise in which the 16 primary activity is the sale, manufacture or promotion of tobacco, 17 tobacco products, vapor products, and accessories, either at wholesale 18 or retail, and in which the sale, manufacture or promotion of other 19 products is merely incidental. 20 13. ["Electronic cigarette" or "e-cigarette" means an electronic21device that delivers vapor which is inhaled by an individual user, and22shall include any refill, cartridge and any other component of such a23device.] "Vapor product" means any noncombustible liquid or gel, regard- 24 less of the presence of nicotine therein, that is manufactured into a 25 finished product for use in an electronic cigarette, electronic cigar, 26 electronic cigarillo, electronic pipe, vaping pen, hookah pen or other 27 similar device. "Vapor product" shall not include any product approved 28 by the United States food and drug administration as a drug or medical 29 device, or approved for use pursuant to section three thousand three 30 hundred sixty-two of this chapter. 31 § 4. Section 1399-bb of the public health law, as amended by chapter 32 508 of the laws of 2000, subdivision 2 as amended by chapter 13 of the 33 laws of 2003, is amended to read as follows: 34 § 1399-bb. Distribution of tobacco products [or], herbal cigarettes, 35 or vapor products without charge. 1. No person engaged in the business 36 of selling or otherwise distributing tobacco products [or], herbal ciga- 37 rettes, or vapor products for commercial purposes, or any agent or 38 employee of such person, shall knowingly, in furtherance of such busi- 39 ness: 40 (a) distribute without charge any tobacco products [or], herbal ciga- 41 rettes, or vapor products to any individual, provided that the distrib- 42 ution of a package containing tobacco products [or], herbal cigarettes, 43 or vapor products in violation of this subdivision shall constitute a 44 single violation without regard to the number of items in the package; 45 or 46 (b) distribute coupons which are redeemable for tobacco products [or], 47 herbal cigarettes, or vapor products to any individual, provided that 48 this subdivision shall not apply to coupons contained in newspapers, 49 magazines or other types of publications, coupons obtained through the 50 purchase of tobacco products [or], herbal cigarettes, or vapor products 51 or obtained at locations which sell tobacco products [or], herbal ciga- 52 rettes, or vapor products provided that such distribution is confined to 53 a designated area or to coupons sent through the mail. 54 2. The prohibitions contained in subdivision one of this section shall 55 not apply to the following locations:S. 2009 91 A. 3009 1 (a) private social functions when seating arrangements are under the 2 control of the sponsor of the function and not the owner, operator, 3 manager or person in charge of such indoor area; 4 (b) conventions and trade shows; provided that the distribution is 5 confined to designated areas generally accessible only to persons over 6 the age of eighteen; 7 (c) events sponsored by tobacco [or], herbal cigarette, or vapor prod- 8 uct manufacturers provided that the distribution is confined to desig- 9 nated areas generally accessible only to persons over the age of eigh- 10 teen; 11 (d) bars as defined in subdivision one of section thirteen hundred 12 ninety-nine-n of this chapter; 13 (e) tobacco businesses as defined in subdivision eight of section 14 thirteen hundred ninety-nine-aa of this article; 15 (f) factories as defined in subdivision nine of section thirteen 16 hundred ninety-nine-aa of this article and construction sites; provided 17 that the distribution is confined to designated areas generally accessi- 18 ble only to persons over the age of eighteen. 19 3. No person shall distribute tobacco products [or], herbal 20 cigarettes, or vapor products at the locations set forth in paragraphs 21 (b), (c) and (f) of subdivision two of this section unless such person 22 gives five days written notice to the enforcement officer. 23 4. The distribution of tobacco products [or], herbal cigarettes, or 24 vapor products pursuant to subdivision two of this section shall be made 25 only to an individual who demonstrates, through (a) a driver's license 26 or [other photographic] non-driver's identification card issued by [a27government entity or educational institution] the commissioner of motor 28 vehicles, the federal government, any United States territory, common- 29 wealth or possession, the District of Columbia, a state government with- 30 in the United States or a provincial government of the dominion of Cana- 31 da, or (b) a valid passport issued by the United States government or 32 any other country, or (c) an identification card issued by the armed 33 forces of the United States, indicating that the individual is at least 34 eighteen years of age. Such identification need not be required of any 35 individual who reasonably appears to be at least twenty-five years of 36 age; provided, however, that such appearance shall not constitute a 37 defense in any proceeding alleging the sale of a tobacco product [or], 38 herbal cigarette, or vapor products to an individual. 39 § 5. The section heading of section 1399-cc of the public health law, 40 as amended by chapter 542 of the laws of 2014, is amended to read as 41 follows: 42 Sale of tobacco products, herbal cigarettes, [liquid nicotine, shisha,43rolling papers] vapor products or smoking paraphernalia to minors 44 prohibited. 45 § 6. Subdivisions 2, 3, 4, and 7 of section 1399-cc of the public 46 health law, as amended by chapter 542 of the laws of 2014 are amended to 47 read as follows: 48 2. Any person operating a place of business wherein tobacco products, 49 herbal cigarettes, [liquid nicotine, shisha] or [electronic cigarettes] 50 vapor products, are sold or offered for sale is prohibited from selling 51 such products, herbal cigarettes, [liquid nicotine, shisha, electronic52cigarettes] vapor products or smoking paraphernalia to individuals under 53 eighteen years of age, and shall post in a conspicuous place a sign upon 54 which there shall be imprinted the following statement, "SALE OF CIGA- 55 RETTES, CIGARS, [CHEWING TOBACCO, POWDERED TOBACCO,] SHISHA OR OTHER 56 TOBACCO PRODUCTS, HERBAL CIGARETTES, [LIQUID NICOTINE, ELECTRONIC CIGA-S. 2009 92 A. 3009 1RETTES] VAPOR PRODUCTS, [ROLLING PAPERS] OR SMOKING PARAPHERNALIA, TO 2 PERSONS UNDER EIGHTEEN YEARS OF AGE IS PROHIBITED BY LAW." Such sign 3 shall be printed on a white card in red letters at least one-half inch 4 in height. 5 3. Sale of tobacco products, herbal cigarettes, [liquid nicotine,6shisha] or [electronic cigarettes] vapor products in such places, other 7 than by a vending machine, shall be made only to an individual who 8 demonstrates, through (a) a valid driver's license or non-driver's iden- 9 tification card issued by the commissioner of motor vehicles, the feder- 10 al government, any United States territory, commonwealth or possession, 11 the District of Columbia, a state government within the United States or 12 a provincial government of the dominion of Canada, or (b) a valid pass- 13 port issued by the United States government or any other country, or (c) 14 an identification card issued by the armed forces of the United States, 15 indicating that the individual is at least eighteen years of age. Such 16 identification need not be required of any individual who reasonably 17 appears to be at least twenty-five years of age, provided, however, that 18 such appearance shall not constitute a defense in any proceeding alleg- 19 ing the sale of a tobacco product, herbal cigarettes, [liquid nicotine,20shisha] or [electronic cigarettes] vapor products to an individual under 21 eighteen years of age. 22 4. (a) Any person operating a place of business wherein tobacco 23 products, herbal cigarettes, [liquid nicotine, shisha] or [electronic24cigarettes] vapor products are sold or offered for sale may perform a 25 transaction scan as a precondition for such purchases. 26 (b) In any instance where the information deciphered by the trans- 27 action scan fails to match the information printed on the driver's 28 license or non-driver identification card, or if the transaction scan 29 indicates that the information is false or fraudulent, the attempted 30 transaction shall be denied. 31 (c) In any proceeding pursuant to section thirteen hundred ninety- 32 nine-ee of this article, it shall be an affirmative defense that such 33 person had produced a driver's license or non-driver identification card 34 apparently issued by a governmental entity, successfully completed that 35 transaction scan, and that the tobacco product, herbal cigarettes [or36liquid nicotine], or vapor products had been sold, delivered or given to 37 such person in reasonable reliance upon such identification and trans- 38 action scan. In evaluating the applicability of such affirmative defense 39 the commissioner shall take into consideration any written policy 40 adopted and implemented by the seller to effectuate the provisions of 41 this chapter. Use of a transaction scan shall not excuse any person 42 operating a place of business wherein tobacco products, herbal ciga- 43 rettes, [liquid nicotine, shisha] or [electronic cigarettes] vapor 44 products are sold, or the agent or employee of such person, from the 45 exercise of reasonable diligence otherwise required by this chapter. 46 Notwithstanding the above provisions, any such affirmative defense shall 47 not be applicable in any civil or criminal proceeding, or in any other 48 forum. 49 7. No person operating a place of business wherein tobacco products, 50 herbal cigarettes, [liquid nicotine, shisha] or [electronic cigarettes] 51 vapor products are sold or offered for sale shall sell, permit to be 52 sold, offer for sale or display for sale any tobacco product, herbal 53 cigarettes, [liquid nicotine, shisha] or [electronic cigarettes] vapor 54 products in any manner, unless such products and cigarettes are stored 55 for sale (a) behind a counter in an area accessible only to the person- 56 nel of such business, or (b) in a locked container[; provided, however,S. 2009 93 A. 3009 1such restriction shall not apply to tobacco businesses, as defined in2subdivision eight of section thirteen hundred ninety-nine-aa of this3article, and to places to which admission is restricted to persons eigh-4teen years of age or older]. 5 § 7. Section 1399-dd of the public health law, as amended by chapter 6 448 of the laws of 2012, is amended to read as follows: 7 § 1399-dd. Sale of tobacco products, herbal cigarettes or [electronic8cigarettes] vapor products in vending machines. No person, firm, part- 9 nership, company or corporation shall operate a vending machine which 10 dispenses tobacco products, herbal cigarettes or [electronic cigarettes] 11 vapor products unless such machine is located: (a) in a bar as defined 12 in subdivision one of section thirteen hundred ninety-nine-n of this 13 chapter, or the bar area of a food service establishment with a valid, 14 on-premises full liquor license; (b) in a private club; (c) in a tobacco 15 business as defined in subdivision eight of section thirteen hundred 16 ninety-nine-aa of this article; or (d) in a place of employment which 17 has an insignificant portion of its regular workforce comprised of 18 people under the age of eighteen years and only in such locations that 19 are not accessible to the general public; provided, however, that in 20 such locations the vending machine is located in plain view and under 21 the direct supervision and control of the person in charge of the 22 location or his or her designated agent or employee. 23 § 8. Subdivision 2 of section 1399-ee of the public health law, as 24 amended by chapter 162 of the laws of 2002, is amended to read as 25 follows: 26 2. If the enforcement officer determines after a hearing that a 27 violation of this article has occurred, he or she shall impose a civil 28 penalty of a minimum of three hundred dollars, but not to exceed one 29 thousand dollars for a first violation, and a minimum of five hundred 30 dollars, but not to exceed one thousand five hundred dollars for each 31 subsequent violation, unless a different penalty is otherwise provided 32 in this article. The enforcement officer shall advise the retail dealer 33 that upon the accumulation of three or more points pursuant to this 34 section the department of taxation and finance shall suspend the deal- 35 er's registration. If the enforcement officer determines after a hearing 36 that a retail dealer was selling tobacco products or vapor products 37 while their registration was suspended or permanently revoked pursuant 38 to subdivision three or four of this section, he or she shall impose a 39 civil penalty of twenty-five hundred dollars. 40 § 9. Subdivision 1 of section 1399-ff of the public health law, as 41 amended by chapter 448 of the laws of 2012, is amended to read as 42 follows: 43 1. Where a civil penalty for a particular incident has not been 44 imposed or an enforcement action regarding an alleged violation for a 45 particular incident is not pending under section thirteen hundred nine- 46 ty-nine-ee of this article, a parent or guardian of a minor to whom 47 tobacco products, herbal cigarettes or [electronic cigarettes] vapor 48 products are sold or distributed in violation of this article may submit 49 a complaint to an enforcement officer setting forth the name and address 50 of the alleged violator, the date of the alleged violation, the name and 51 address of the complainant and the minor, and a brief statement describ- 52 ing the alleged violation. The enforcement officer shall notify the 53 alleged violator by certified or registered mail, return receipt 54 requested, that a complaint has been submitted, and shall set a date, at 55 least fifteen days after the mailing of such notice, for a hearing onS. 2009 94 A. 3009 1 the complaint. Such notice shall contain the information submitted by 2 the complainant. 3 § 10. Section 1399-hh of the public health law, as added by chapter 4 433 of the laws of 1997, is amended to read as follows: 5 § 1399-hh. Tobacco and vapor products enforcement. The commissioner 6 shall develop, plan and implement a comprehensive program to reduce the 7 prevalence of tobacco and vapor products use, particularly among persons 8 less than eighteen years of age. This program shall include, but not be 9 limited to, support for enforcement of article thirteen-F of this chap- 10 ter. 11 1. An enforcement officer, as defined in section thirteen hundred 12 ninety-nine-t of this chapter, may annually, on such dates as shall be 13 fixed by the commissioner, submit an application for such monies as are 14 made available for such purpose. Such application shall be in such form 15 as prescribed by the commissioner and shall include, but not be limited 16 to, plans regarding random spot checks, including the number and types 17 of compliance checks that will be conducted, and other activities to 18 determine compliance with this article. Each such plan shall include an 19 agreement to report to the commissioner: the names and addresses of 20 tobacco retailers and vendors determined to be unlicensed, if any; the 21 number of complaints filed against licensed tobacco retail outlets; and 22 the names of tobacco retailers and vendors who have paid fines, or have 23 been otherwise penalized, due to enforcement actions. 24 2. The commissioner shall distribute such monies as are made available 25 for such purpose to enforcement officers and, in so doing, consider the 26 number of retail locations registered to sell tobacco products within 27 the jurisdiction of the enforcement officer and the level of proposed 28 activities. 29 3. Monies made available to enforcement officers pursuant to this 30 section shall only be used for local tobacco, herbal cigarette and vapor 31 products enforcement activities approved by the commissioner. 32 § 11. The public health law is amended by adding a new section 33 1399-mm-1 to read as follows: 34 § 1399-mm-1. Vapor products; child-resistant containers required. No 35 person engaged in the business of manufacturing, selling or otherwise 36 distributing vapor products, may sell any component of such systems that 37 contains nicotine, including any refill, cartridge, or other component, 38 unless such component constitutes "special packaging" for the protection 39 of children, as defined in 15 U.S.C. 1471 or any superseding statute. 40 § 12. Subdivision 2 of section 409 of the education law, as amended by 41 chapter 449 of the laws of 2012, is amended to read as follows: 42 2. Notwithstanding the provisions of any other law, rule or regu- 43 lation, tobacco, herbal cigarette, and vapor products use shall not be 44 permitted and no person shall use [tobacco] such products on school 45 grounds. "School grounds" means any building, structure and surrounding 46 outdoor grounds, including entrances or exits, contained within a public 47 or private pre-school, nursery school, elementary or secondary school's 48 legally defined property boundaries as registered in a county clerk's 49 office. 50 § 13. Section 3624 of the education law, as amended by chapter 529 of 51 the laws of 2002, is amended to read as follows: 52 § 3624. Drivers, monitors and attendants. The commissioner shall 53 determine and define the qualifications of drivers, monitors and attend- 54 ants and shall make the rules and regulations governing the operation of 55 all transportation facilities used by pupils which rules and regulations 56 shall include, but not be limited to, a maximum speed of fifty-fiveS. 2009 95 A. 3009 1 miles per hour for school vehicles engaged in pupil transportation that 2 are operated on roads, interstates or other highways, parkways or bridg- 3 es or portions thereof that have posted speed limits in excess of 4 fifty-five miles per hour, prohibitions relating to smoking and use of 5 vapor products, eating and drinking and any and all other acts or 6 conduct which would otherwise impair the safe operation of such trans- 7 portation facilities while actually being used for the transport of 8 pupils. The employment of each driver, monitor and attendant shall be 9 approved by the chief school administrator of a school district for each 10 school bus operated within his or her district. For the purpose of 11 determining his or her physical fitness, each driver, monitor and 12 attendant may be examined on order of the chief school administrator by 13 a duly licensed physician within two weeks prior to the beginning of 14 service in each school year as a school bus driver, monitor or attend- 15 ant. The report of the physician, in writing, shall be considered by the 16 chief school administrator in determining the fitness of the driver to 17 operate or continue to operate any transportation facilities used by 18 pupils and in determining the fitness of any monitor or attendant to 19 carry out his or her functions on such transportation facilities. Noth- 20 ing in this section shall prohibit a school district from imposing a 21 more restrictive speed limit policy for the operation of school vehicles 22 engaged in pupil transportation than the speed limit policy established 23 by the commissioner. 24 § 14. Subdivision 2 of section 470 of the tax law, as amended by 25 section 15 of part D of chapter 134 of the laws of 2010, is amended to 26 read as follows: 27 2. "Tobacco products." Any cigar, including a little cigar, a vapor 28 product, or tobacco, other than cigarettes, intended for consumption by 29 smoking, chewing, inhaling vapors, or as snuff. 30 § 15. Subdivision 12 of section 470 of the tax law, as added by chap- 31 ter 61 of the laws of 1989, is amended to read as follows: 32 12. "Distributor." Any person who imports or causes to be imported 33 into this state any tobacco product (in excess of fifty cigars [or], one 34 pound of tobacco, or one hundred milliliters of vapor product) for sale, 35 or who manufactures any tobacco product in this state, and any person 36 within or without the state who is authorized by the commissioner of 37 taxation and finance to make returns and pay the tax on tobacco products 38 sold, shipped or delivered by him to any person in the state. 39 § 16. Section 470 of the tax law is amended by adding a new subdivi- 40 sion 20 to read as follows: 41 20. "Vapor product." Any noncombustible liquid or gel, regardless of 42 the presence of nicotine therein, that is manufactured into a finished 43 product for use in an electronic cigarette, electronic cigar, electronic 44 cigarillo, electronic pipe, vaping pen, hookah pen or other similar 45 device. "Vapor product" shall not include any product approved by the 46 United States food and drug administration as a drug or medical device, 47 or approved for use pursuant to section three thousand three hundred 48 sixty-two of the public health law. 49 § 17. Subdivision (a) of subdivision 1 of section 471-b of the tax 50 law, as amended by section 18 of part D of chapter 134 of the laws of 51 2010, is amended to read as follows: 52 (a) Such tax on tobacco products other than snuff, [and] little 53 cigars, and vapor products shall be at the rate of seventy-five percent 54 of the wholesale price, and is intended to be imposed only once upon the 55 sale of any tobacco products other than snuff [and], little cigars, and 56 vapor products.S. 2009 96 A. 3009 1 § 18. Subdivision 1 of section 471-b of the tax law is amended by 2 adding a new subdivision (d) to read as follows: 3 (d) Such tax on vapor products shall be at a rate of ten cents per 4 fluid milliliter, or part thereof, of the vapor product. All invoices 5 for vapor products issued by distributors and wholesalers must state the 6 amount of vapor product in milliliters. 7 § 19. The opening paragraph of subdivision (a) of section 471-c of the 8 tax law, as amended by section 2 of part I1 of chapter 57 of the laws of 9 2009, is amended to read as follows: 10 There is hereby imposed and shall be paid a tax on all tobacco 11 products used in the state by any person, except that no such tax shall 12 be imposed (1) if the tax provided in section four hundred seventy-one-b 13 of this article is paid, or (2) on the use of tobacco products which are 14 exempt from the tax imposed by said section, or (3) on the use of two 15 hundred fifty cigars or less, or five pounds or less of tobacco other 16 than roll-your-own tobacco, or thirty-six ounces or less of roll-your- 17 own tobacco, or five hundred milliliters or less of vapor product 18 brought into the state on, or in the possession of, any person. 19 § 20. Paragraph (i) of subdivision (a) of section 471-c of the tax 20 law, as amended by section 20 of part D of chapter 134 of the laws of 21 2010, is amended to read as follows: 22 (i) Such tax on tobacco products other than snuff [and], little cigars 23 and vapor products shall be at the rate of seventy-five percent of the 24 wholesale price. 25 § 21. Subdivision (a) of section 471-c of the tax law is amended by 26 adding a new paragraph (iv) to read as follows: 27 (iv) Such tax on vapor products shall be at a rate of ten cents per 28 fluid milliliter, or part thereof, of the vapor product. All invoices 29 for vapor products issued by distributors and wholesalers must state the 30 amount of vapor product in milliliters. 31 § 22. Subdivision 2 of section 474 of the tax law, as amended by chap- 32 ter 552 of the laws of 2008, is amended to read as follows: 33 2. Every person who shall possess or transport more than two hundred 34 fifty cigars, or more than five pounds of tobacco other than roll-your- 35 own tobacco, or more than thirty-six ounces of roll-your-own tobacco, or 36 more than five hundred milliliters of vapor product upon the public 37 highways, roads or streets of the state, shall be required to have in 38 his actual possession invoices or delivery tickets for such tobacco 39 products. Such invoices or delivery tickets shall show the name and 40 address of the consignor or seller, the name and address of the 41 consignee or purchaser, the quantity and brands of the tobacco products 42 transported, and the name and address of the person who has or shall 43 assume the payment of the tax and the wholesale price or the tax paid or 44 payable. The absence of such invoices or delivery tickets shall be prima 45 facie evidence that such person is a dealer in tobacco products in this 46 state and subject to the requirements of this article. 47 § 23. Subdivision 3 of section 474 of the tax law, as added by chapter 48 61 of the laws of 1989, is amended to read as follows: 49 3. Every dealer or distributor or employee thereof, or other person 50 acting on behalf of a dealer or distributor, who shall possess or trans- 51 port more than fifty cigars or more than one pound of tobacco, or more 52 than one hundred milliliters of vapor product upon the public highways, 53 roads or streets of the state, shall be required to have in his actual 54 possession invoices or delivery tickets for such tobacco products. Such 55 invoices or delivery tickets shall show the name and address of the 56 consignor or seller, the name and address of the consignee or purchaser,S. 2009 97 A. 3009 1 the quantity and brands of the tobacco products transported, and the 2 name and address of the person who has or shall assume the payment of 3 the tax and the wholesale price or the tax paid or payable. The absence 4 of such invoices or delivery tickets shall be prima facie evidence that 5 the tax imposed by this article on tobacco products has not been paid 6 and is due and owing. 7 § 24. Subparagraph (i) of paragraph (b) of subdivision 1 of section 8 481 of the tax law, as amended by section 1 of part O of chapter 59 of 9 the laws of 2013, is amended to read as follows: 10 (i) In addition to any other penalty imposed by this article, the 11 commissioner may (A) impose a penalty of not more than six hundred 12 dollars for each two hundred cigarettes, or fraction thereof, in excess 13 of one thousand cigarettes in unstamped or unlawfully stamped packages 14 in the possession or under the control of any person or (B) impose a 15 penalty of not more than two hundred dollars for each ten unaffixed 16 false, altered or counterfeit cigarette tax stamps, imprints or 17 impressions, or fraction thereof, in the possession or under the control 18 of any person. In addition, the commissioner may impose a penalty of not 19 more than seventy-five dollars for each fifty cigars [or], one pound of 20 tobacco, or one hundred milliliters of vapor product, or fraction there- 21 of, in excess of two hundred fifty cigars [or], five pounds of tobacco 22 or five hundred milliliters of vapor product in the possession or under 23 the control of any person and a penalty of not more than one hundred 24 fifty dollars for each fifty cigars [or], pound of tobacco, or one 25 hundred milliliters of vapor product, or fraction thereof, in excess of 26 five hundred cigars [or], ten pounds of tobacco, or one thousand milli- 27 liters of vapor product in the possession or under the control of any 28 person, with respect to which the tobacco products tax has not been paid 29 or assumed by a distributor or tobacco products dealer; provided, howev- 30 er, that any such penalty imposed shall not exceed seven thousand five 31 hundred dollars in the aggregate. The commissioner may impose a penalty 32 of not more than seventy-five dollars for each fifty cigars [or], one 33 pound of tobacco, or one hundred milliliters of vapor product, or frac- 34 tion thereof, in excess of fifty cigars [or], one pound of tobacco, or 35 one hundred milliliters of vapor product in the possession or under the 36 control of any tobacco products dealer or distributor appointed by the 37 commissioner, and a penalty of not more than one hundred fifty dollars 38 for each fifty cigars [or], pound of tobacco, or one hundred milliliters 39 of vapor product, or fraction thereof, in excess of two hundred fifty 40 cigars [or], five pounds of tobacco, or five hundred milliliters of 41 vapor product, in the possession or under the control of any such dealer 42 or distributor, with respect to which the tobacco products tax has not 43 been paid or assumed by a distributor or a tobacco products dealer; 44 provided, however, that any such penalty imposed shall not exceed 45 fifteen thousand dollars in the aggregate. 46 § 25. Clauses (B) and (C) of subparagraph (ii) of paragraph (b) of 47 subdivision 1 of section 481 of the tax law, as added by chapter 262 of 48 the laws of 2000, is amended to read as follows: 49 (B)(I) not less than twenty-five dollars but not more than one hundred 50 dollars for each fifty cigars [or], one pound of tobacco, or one hundred 51 milliliters of vapor product, or fraction thereof, in excess of two 52 hundred fifty cigars [or], five pounds of tobacco, or five hundred 53 milliliters of vapor product knowingly in the possession or knowingly 54 under the control of any person, with respect to which the tobacco 55 products tax has not been paid or assumed by a distributor or tobacco 56 products dealer; andS. 2009 98 A. 3009 1 (II) not less than fifty dollars but not more than two hundred dollars 2 for each fifty cigars [or], pound of tobacco, or one hundred milliliters 3 of vapor product, or fraction thereof, in excess of five hundred cigars 4 [or], ten pounds of tobacco, or one thousand milliliters of vapor prod- 5 uct knowingly in the possession or knowingly under the control of any 6 person, with respect to which the tobacco products tax has not been paid 7 or assumed by a distributor or tobacco products dealer; provided, howev- 8 er, that any such penalty imposed under this clause shall not exceed ten 9 thousand dollars in the aggregate. 10 (C)(I) not less than twenty-five dollars but not more than one hundred 11 dollars for each fifty cigars [or], one pound of tobacco, or one hundred 12 milliliters of vapor product, or fraction thereof, in excess of fifty 13 cigars [or], one pound of tobacco, or one hundred milliliters of vapor 14 product knowingly in the possession or knowingly under the control of 15 any person, with respect to which the tobacco products tax has not been 16 paid or assumed by a distributor or tobacco products dealer; and 17 (II) not less than fifty dollars but not more than two hundred dollars 18 for each fifty cigars [or], pound of tobacco, or one hundred milliliters 19 of vapor product, or fraction thereof, in excess of two hundred fifty 20 cigars [or], five pounds of tobacco, or five hundred milliliters of 21 vapor product knowingly in the possession or knowingly under the control 22 of any person, with respect to which the tobacco products tax has not 23 been paid or assumed by a distributor or a tobacco products dealer; 24 provided, however, that any such penalty imposed under this clause shall 25 not exceed twenty thousand dollars in the aggregate. 26 § 26. Subdivisions (a) and (h) of section 1814 of the tax law, as 27 amended by section 28 of subpart I of part V1 of chapter 57 of the laws 28 of 2009, are amended to read as follows: 29 (a) Any person who willfully attempts in any manner to evade or defeat 30 the taxes imposed by article twenty of this chapter or payment thereof 31 on (i) ten thousand cigarettes or more, (ii) twenty-two thousand cigars 32 or more, [or] (iii) four hundred forty pounds of tobacco or more, or 33 (iv) forty-four thousand milliliters of vapor product or more or has 34 previously been convicted two or more times of a violation of paragraph 35 [one] (i) of this subdivision shall be guilty of a class E felony. 36 (h) (1) Any dealer, other than a distributor appointed by the commis- 37 sioner of taxation and finance under article twenty of this chapter, who 38 shall knowingly transport or have in his custody, possession or under 39 his control more than ten pounds of tobacco, or more than five hundred 40 cigars, or more than one thousand milliliters of vapor product upon 41 which the taxes imposed by article twenty of this chapter have not been 42 assumed or paid by a distributor appointed by the commissioner of taxa- 43 tion and finance under article twenty of this chapter, or other person 44 treated as a distributor pursuant to section four hundred seventy-one-d 45 of this chapter, shall be guilty of a misdemeanor punishable by a fine 46 of not more than five thousand dollars or by a term of imprisonment not 47 to exceed thirty days. 48 (2) Any person, other than a dealer or a distributor appointed by the 49 commissioner under article twenty of this chapter, who shall knowingly 50 transport or have in his custody, possession or under his control more 51 than fifteen pounds of tobacco, or more than seven hundred fifty cigars, 52 or more than fifteen hundred milliliters or more of vapor product upon 53 which the taxes imposed by article twenty of this chapter have not been 54 assumed or paid by a distributor appointed by the commissioner under 55 article twenty of this chapter, or other person treated as a distributor 56 pursuant to section four hundred seventy-one-d of this chapter shall beS. 2009 99 A. 3009 1 guilty of a misdemeanor punishable by a fine of not more than five thou- 2 sand dollars or by a term of imprisonment not to exceed thirty days. 3 (3) Any person, other than a distributor appointed by the commissioner 4 under article twenty of this chapter, who shall knowingly transport or 5 have in his custody, possession or under his control twenty-five hundred 6 or more cigars, or fifty or more pounds of tobacco, or five thousand 7 milliliters or more of vapor product upon which the taxes imposed by 8 article twenty of this chapter have not been assumed or paid by a 9 distributor appointed by the commissioner under article twenty of this 10 chapter, or other person treated as a distributor pursuant to section 11 four hundred seventy-one-d of this chapter shall be guilty of a misde- 12 meanor. Provided further, that any person who has twice been convicted 13 under this subdivision shall be guilty of a class E felony for any 14 subsequent violation of this section, regardless of the amount of tobac- 15 co products involved in such violation. 16 (4) For purposes of this subdivision, such person shall knowingly 17 transport or have in his custody, possession or under his control tobac- 18 co, [or] cigars, or vapor products on which such taxes have not been 19 assumed or paid by a distributor appointed by the commissioner where 20 such person has knowledge of the requirement of the tax on tobacco 21 products and, where to his knowledge, such taxes have not been assumed 22 or paid on such tobacco products by a distributor appointed by the 23 commissioner of taxation and finance. 24 § 27. Subdivisions (a) and (b) of section 1814-a of the tax law, as 25 added by chapter 61 of the laws of 1989, are amended to read as follows: 26 (a) Any person who, while not appointed as a distributor of tobacco 27 products pursuant to the provisions of article twenty of this chapter, 28 imports or causes to be imported into the state more than fifty cigars, 29 or more than one pound of tobacco, or more than one hundred milliliters 30 of vapor product for sale within the state, or produces, manufactures or 31 compounds tobacco products within the state shall be guilty of a misde- 32 meanor punishable by a fine of not more than five thousand dollars or by 33 a term of imprisonment not to exceed thirty days. If, within any ninety 34 day period, one thousand or more cigars, or five hundred pounds or more 35 of tobacco, or fifty thousand milliliters or more of vapor product are 36 imported or caused to be imported into the state for sale within the 37 state or are produced, manufactured or compounded within the state by 38 any person while not appointed as a distributor of tobacco products, 39 such person shall be guilty of a misdemeanor. Provided further, that any 40 person who has twice been convicted under this section shall be guilty 41 of a class E felony for any subsequent violation of this section, 42 regardless of the amount of tobacco products involved in such violation. 43 (b) For purposes of this section, the possession or transportation 44 within this state by any person, other than a tobacco products distribu- 45 tor appointed by the commissioner of taxation and finance, at any one 46 time of seven hundred fifty or more cigars [or], fifteen pounds or more 47 of tobacco, or fifteen hundred milliliters or more of vapor product 48 shall be presumptive evidence that such tobacco products are possessed 49 or transported for the purpose of sale and are subject to the tax 50 imposed by section four hundred seventy-one-b of this chapter. With 51 respect to such possession or transportation, any provisions of article 52 twenty of this chapter providing for a time period during which the tax 53 imposed by such article may be paid shall not apply. 54 § 28. Subdivision (a) of section 1846-a of the tax law, as amended by 55 chapter 556 of the laws of 2011, is amended to read as follows:S. 2009 100 A. 3009 1 (a) Whenever a police officer designated in section 1.20 of the crimi- 2 nal procedure law or a peace officer designated in subdivision four of 3 section 2.10 of such law, acting pursuant to his special duties, shall 4 discover any tobacco products in excess of five hundred cigars [or], ten 5 pounds of tobacco, or one thousand milliliters of vapor product which 6 are being imported for sale in the state where the person importing or 7 causing such tobacco products to be imported has not been appointed as a 8 distributor pursuant to section four hundred seventy-two of this chap- 9 ter, such police officer or peace officer is hereby authorized and 10 empowered forthwith to seize and take possession of such tobacco 11 products. Such tobacco products seized by a police officer or peace 12 officer shall be turned over to the commissioner. Such seized tobacco 13 products shall be forfeited to the state. All tobacco products forfeited 14 to the state shall be destroyed or used for law enforcement purposes, 15 except that tobacco products that violate, or are suspected of violat- 16 ing, federal trademark laws or import laws shall not be used for law 17 enforcement purposes. If the commissioner determines the tobacco 18 products may not be used for law enforcement purposes, the commissioner 19 must, within a reasonable time thereafter, upon publication in the state 20 registry of a notice to such effect before the day of destruction, 21 destroy such forfeited tobacco products. The commissioner may, prior to 22 any destruction of tobacco products, permit the true holder of the 23 trademark rights in the tobacco products to inspect such forfeited 24 products in order to assist in any investigation regarding such tobacco 25 products. 26 § 29. Subdivision (b) of section 1847 of the tax law, as added by 27 chapter 61 of the laws of 1989, is amended to read as follows: 28 (b) Any peace officer designated in subdivision four of section 2.10 29 of the criminal procedure law, acting pursuant to his special duties, or 30 any police officer designated in section 1.20 of the criminal procedure 31 law may seize any vehicle or other means of transportation used to 32 import tobacco products in excess of five hundred cigars [or], ten 33 pounds of tobacco, or one thousand milliliters of vapor product for sale 34 where the person importing or causing such tobacco products to be 35 imported has not been appointed a distributor pursuant to section four 36 hundred seventy-two of this chapter, other than a vehicle or other means 37 of transportation used by any person as a common carrier in transaction 38 of business as such common carrier, and such vehicle or other means of 39 transportation shall be subject to forfeiture as hereinafter in this 40 section provided. 41 § 30. This act shall take effect on the one hundred eightieth day 42 after it shall have become a law and shall apply to vapor products that 43 first become subject to taxation under article 20 of the tax law on or 44 after that date. 45 PART GG 46 Section 1. Subdivision (d) of section 1814 of the tax law, as amended 47 by section 28 of subpart I of part V-1 of chapter 57 of the laws of 48 2009, is amended to read as follows: 49 (d) For the purposes of this section, the possession or transportation 50 within this state by any person, other than an agent, at any one time of 51 [five] two thousand or more cigarettes in unstamped or unlawfully 52 stamped packages shall be presumptive evidence that such cigarettes are 53 possessed or transported for the purpose of sale and are subject to the 54 tax imposed by section four hundred seventy-one of this chapter. WithS. 2009 101 A. 3009 1 respect to such possession or transportation any provisions of article 2 twenty of this chapter providing for a time period during which a use 3 tax imposed by such article may be paid on unstamped cigarettes or 4 unlawfully or improperly stamped cigarettes or during which such ciga- 5 rettes may be returned to an agent shall not apply. The possession with- 6 in this state of more than four hundred cigarettes in unstamped or 7 unlawfully stamped packages by any person other than an agent at any one 8 time shall be presumptive evidence that such cigarettes are subject to 9 tax as provided by article twenty of this chapter. 10 § 2. Subdivision (g) of section 1814 of the tax law, as amended by 11 section 28 of subpart I of part V-1 of chapter 57 of the laws of 2009, 12 is amended to read as follows: 13 (g) Any person who falsely or fraudulently makes, alters or counter- 14 feits any stamp prescribed by the tax commission under the provisions of 15 article twenty of this chapter, or causes or procures to be falsely or 16 fraudulently made, altered or counterfeited any such stamp, or knowingly 17 and willfully utters, purchases, passes or tenders as true any such 18 false, altered or counterfeited stamp, or knowingly and willfully 19 possesses any cigarettes in packages bearing any such false, altered or 20 counterfeited stamp, and any person who knowingly and willfully makes, 21 causes to be made, purchases or receives any device for forging or coun- 22 terfeiting any stamp, prescribed by the tax commission under the 23 provisions of article twenty of this chapter, or who knowingly and will- 24 fully possesses any such device, shall be guilty of a class [E] C felo- 25 ny. For the purposes of this subdivision, the words "stamp prescribed by 26 the tax commission" shall include a stamp, impression or imprint made by 27 a metering machine, the design of which has been approved by such 28 commission. 29 § 3. This act shall take effect immediately and apply to offenses 30 committed on and after such effective date. 31 PART HH 32 Section 1. The tax law is amended by adding a new section 478-a to 33 read as follows: 34 § 478-a. Jeopardy assessments. If the commissioner believes that the 35 collection of any tax will be jeopardized by delay, he or she may deter- 36 mine the amount of such tax and assess the same, together with all 37 interest and penalties provided by law, against any person liable there- 38 for prior to the filing of his or her return and prior to the date when 39 his or her return is required to be filed. The amount so determined 40 shall become due and payable to the commissioner by the person against 41 whom such a jeopardy assessment is made, as soon as notice thereof is 42 given to him or her. The provisions of section four hundred seventy- 43 eight of this article shall apply to any such determination except to 44 the extent that they may be inconsistent with the provisions of this 45 section. The commissioner may abate any jeopardy assessment if he or she 46 finds that jeopardy does not exist. The collection of any jeopardy 47 assessment may be stayed by filing with the commissioner a bond issued 48 by a surety company authorized to transact business in this state and 49 approved by the superintendent of financial services as to solvency and 50 responsibility, or such other security acceptable to the commissioner, 51 conditioned upon payment of the amount assessed and interest thereon, or 52 any lesser amount to which such assessment may be reduced by the divi- 53 sion of tax appeals or by a proceeding under article seventy-eight of 54 the civil practice law and rules as provided in section four hundredS. 2009 102 A. 3009 1 seventy-eight of this article, such payment to be made when the assess- 2 ment or any such reduction thereof becomes final and not subject to 3 further review. If such a bond is filed and thereafter a proceeding 4 under article seventy-eight of the civil practice law and rules is 5 commenced as provided in section four hundred seventy-eight of this 6 article, deposit of the taxes, interest and penalties assessed shall not 7 be required as a condition precedent to the commencement of such 8 proceeding. Where a jeopardy assessment is made, any property seized for 9 the collection of the tax shall not be sold: (1) until expiration of the 10 time to apply for a hearing as provided in section four hundred seven- 11 ty-eight of this article, and (2) if such application is timely filed, 12 until the expiration of the time to file an exception to the determi- 13 nation of the administrative law judge or, if an exception is timely 14 filed, until four months after the tax appeals tribunal has given notice 15 of its decision to the person against whom the assessment is made; 16 provided, however, such property may be sold at any time if such person 17 has failed to attend a hearing of which he or she has been duly noti- 18 fied, or if he or she consents to the sale, or if the commissioner 19 determines that the expenses of conservation and maintenance will great- 20 ly reduce the net proceeds, or if the property is perishable. 21 § 2. This act shall take effect immediately. 22 PART II 23 Section 1. Paragraph (a) of subdivision 1 of section 471-b of the tax 24 law, as amended by section 18 of part D of chapter 134 of the laws of 25 2010, is amended to read as follows: 26 (a) Such tax on tobacco products other than snuff [and], little 27 cigars, and cigars shall be at the rate of seventy-five percent of the 28 wholesale price, and is intended to be imposed only once upon the sale 29 of any tobacco products other than snuff [and], little cigars and 30 cigars. 31 § 2. Subdivision 1 of section 471-b of the tax law is amended by 32 adding a new paragraph (d) to read as follows: 33 (d) Such tax on cigars as defined in subdivision nineteen of section 34 four hundred seventy of this article shall be at a rate of forty-five 35 cents per cigar. 36 § 3. Paragraph (i) of subdivision (a) of section 471-c of the tax law, 37 as amended by section 20 of part D of chapter 134 of the laws of 2010, 38 is amended to read as follows: 39 (i) Such tax on tobacco products other than snuff [and], little cigars 40 and cigars shall be at the rate of seventy-five percent of the wholesale 41 price. 42 § 4. Subdivision (a) of section 471-c of the tax law is amended by 43 adding a new paragraph (iv) to read as follows: 44 (iv) Such tax on cigars as defined in subdivision nineteen of section 45 four hundred seventy of this article shall be at a rate of forty-five 46 cents per cigar. 47 § 5. This act shall take effect September 1, 2017. 48 PART JJ 49 Section 1. Subdivision (e) of section 1401 of the tax law, as amended 50 by chapter 760 of the laws of 1992, is amended to read as follows: 51 (e) "Conveyance" means the transfer or transfers of any interest in 52 real property by any method, including but not limited to sale,S. 2009 103 A. 3009 1 exchange, assignment, surrender, mortgage foreclosure, transfer in lieu 2 of foreclosure, option, trust indenture, taking by eminent domain, 3 conveyance upon liquidation or by a receiver, or transfer or acquisition 4 of a controlling interest in any entity with an interest in real proper- 5 ty. Conveyance also includes the transfer of an interest in a partner- 6 ship, limited liability corporation, S corporation or non-publicly trad- 7 ed C corporation with fewer than one hundred shareholders that owns an 8 interest in real property that is located in New York and has a fair 9 market value that equals or exceeds fifty percent of all the assets of 10 the entity on the date of the transfer of an interest in the entity. 11 Only those assets that the entity owned for at least two years before 12 the date of the transfer of the taxpayer's interest in the entity shall 13 be used in determining the fair market value of all the assets of the 14 entity on the date of the transfer. Transfer of an interest in real 15 property shall include the creation of a leasehold or sublease only 16 where (i) the sum of the term of the lease or sublease and any options 17 for renewal exceeds forty-nine years, (ii) substantial capital improve- 18 ments are or may be made by or for the benefit of the lessee or subles- 19 see, and (iii) the lease or sublease is for substantially all of the 20 premises constituting the real property. Notwithstanding the foregoing, 21 conveyance of real property shall not include a conveyance pursuant to 22 devise, bequest or inheritance; the creation, modification, extension, 23 spreading, severance, consolidation, assignment, transfer, release or 24 satisfaction of a mortgage; a mortgage subordination agreement, a mort- 25 gage severance agreement, an instrument given to perfect or correct a 26 recorded mortgage; or a release of lien of tax pursuant to this chapter 27 or the internal revenue code. 28 § 2. Subdivision (d) of section 1401 of the tax law is amended by 29 adding a new paragraph (vi) to read as follows: 30 (vi) In the case of a transfer of an interest in a partnership, limit- 31 ed liability corporation, S corporation or non-publicly traded C corpo- 32 ration with one hundred or fewer shareholders that owns real property 33 that is located in New York and has a fair market value that equals or 34 exceeds fifty percent of all the assets of the entity on the date of the 35 transfer of an interest in the entity, the consideration for the convey- 36 ance shall be calculated by multiplying (1) the fair market value of the 37 real property that is located in New York that is owned by the entity 38 and (2) the percentage of the entity that is transferred. 39 § 3. This act shall take effect immediately and shall apply to trans- 40 fers occurring on and after the effective date. 41 PART KK 42 Section 1. Section 1402-a of the tax law is amended by adding a new 43 subdivision (b-1) to read as follows: 44 (b-1) The commissioner is authorized to treat as subject to tax under 45 this section any conveyance of an interest in real property made pursu- 46 ant to an agreement, understanding or arrangement that results in the 47 avoidance or evasion of the tax imposed by this section. 48 § 2. This act shall take effect immediately. 49 PART LL 50 Section 1. Section 902 of the racing, pari-mutuel wagering and breed- 51 ing law, as amended by chapter 60 of the laws of 1993, subdivision 1 asS. 2009 104 A. 3009 1 amended by chapter 15 of the laws of 2010 and subdivision 2 as amended 2 by chapter 18 of the laws of 2008, is amended to read as follows: 3 § 902. Equine drug testing and expenses. 1. In order to assure the 4 public's confidence and continue the high degree of integrity in racing 5 at the pari-mutuel betting tracks, equine drug testing at race meetings 6 shall be conducted by a [state college within this state with an7approved equine science program] suitable laboratory or laboratories 8 located in New York state, as the gaming commission may determine in its 9 discretion. The [state racing and wagering board] gaming commission 10 shall promulgate any rules and regulations necessary to implement the 11 provisions of this section, including administrative penalties of loss 12 of purse money, fines, or denial, suspension[,] or revocation of a 13 license for racing drugged horses. 14 2. Notwithstanding any inconsistent provision of law, all costs and 15 expenses of the [state racing and wagering board] gaming commission for 16 equine drug testing and research shall be paid from [an appropriation17from the state treasury, on the certification of the chairman of the18state racing and wagering board, upon the audit and warrant of the comp-19troller and pursuant to a plan developed by the state racing and wager-20ing board as approved by the director of the budget] an assessment the 21 commission may make on horsemen entering horses in races, an assessment 22 the commission may make on racetracks, or both. 23 § 2. Subdivision 2 of section 228 of the racing, pari-mutuel wagering 24 and breeding law, as amended by chapter 18 of the laws of 2008 and the 25 opening paragraph as amended by chapter 291 of the laws of 2016, is 26 amended to read as follows: 27 2. The New York state gaming commission shall, as a condition of 28 racing, require any franchised corporation and every other corporation 29 subject to its jurisdiction to withhold one percent of all purses, 30 except that for the franchised corporation, starting on September first, 31 two thousand seven and continuing through August thirty-first, two thou- 32 sand seventeen, two percent of all purses shall be withheld, and, in the 33 case of the franchised corporation, to pay such sum to the horsemen's 34 organization or its successor that was first entitled to receive 35 payments pursuant to this section in accordance with rules of the 36 commission adopted effective November third, nineteen hundred eighty- 37 three representing at least fifty-one percent of the owners and trainers 38 [utilizing] using the facilities of such franchised corporation, on the 39 condition that such horsemen's organization shall expend [as much as is40necessary, but not to exceed] one-half of one percent of such total 41 sum[,] to acquire and maintain the equipment required to [establish a42program at a state college within this state with an approved equine43science program to] test, at a suitable laboratory located in New York 44 state, as the gaming commission may determine in its discretion, for the 45 presence of [steroids] impermissible drugs or other substances that 46 might be classified as impermissible substances in horses, provided 47 further that the qualified organization shall also, in an amount to be 48 determined by its board of directors, annually include in its expendi- 49 tures for benevolence programs, funds to support an organization provid- 50 ing services necessary to backstretch employees, and, in the case of 51 every other corporation, to pay such one percent sum of purses to the 52 horsemen's organization or its successor that was first entitled to 53 receive payments pursuant to this section in accordance with rules of 54 the commission adopted effective May twenty-third, nineteen hundred 55 eighty-six representing at least fifty-one percent of the owners and 56 trainers [utilizing] using the facilities of such corporation.S. 2009 105 A. 3009 1 In either case, any other horsemen's organization may apply to the 2 [board] commission to be approved as the qualified organization to 3 receive payment of the one percent of all purses by submitting to the 4 [board] commission proof of both, that (i) it represents more than 5 fifty-one percent of all the owners and trainers [utilizing] using the 6 same facilities and (ii) the horsemen's organization previously approved 7 as qualified by the [board] commission does not represent fifty-one 8 percent of all the owners and trainers [utilizing] using the same facil- 9 ities. If the [board] commission is satisfied that the documentation 10 submitted with the application of any other horsemen's organization is 11 conclusive with respect to items (i) and (ii) of this paragraph, it may 12 approve the applicant as the qualified recipient organization. 13 In the best interests of racing, upon receipt of such an application, 14 the [board] commission may direct the payments to the previously quali- 15 fied horsemen's organization to continue uninterrupted, or it may direct 16 the payments to be withheld and placed in interest-bearing accounts for 17 a period not to exceed ninety days, during which time the [board] 18 commission shall review and approve or disapprove the application. Funds 19 held in such manner shall be paid to the organization approved by the 20 [board] commission. In no event shall the [board] commission accept more 21 than one such application in any calendar year from the same horsemen's 22 organization. 23 The funds authorized to be paid by the [board] commission are to be 24 used exclusively for the benefit of those horsemen racing in New York 25 state through the administrative purposes of such qualified organiza- 26 tion, benevolent activities on behalf of backstretch employees, and for 27 the promotion of equine research. 28 § 3. This act shall take effect immediately. 29 PART MM 30 Section 1. Article 19-B of the executive law is REPEALED. 31 § 1-a. Article 9-A of the general municipal law is REPEALED. 32 § 1-b. Article 14-H of the general municipal law is REPEALED. 33 § 1-c. Article 34 of the tax law is REPEALED. 34 § 2. The racing, pari-mutuel wagering and breeding law is amended by 35 adding a new article 15 to read as follows: 36 ARTICLE 15 37 CHARITABLE GAMING 38 Title 1. General provisions. 39 2. Bingo control. 40 3. Local option for conduct of bingo by certain organizations. 41 4. Local option for conduct of games of chance by certain organ- 42 izations. 43 TITLE 1 44 GENERAL PROVISIONS 45 Section 1500. Definitions. 46 1501. Forms. 47 1502. Participation by persons under the age of eighteen. 48 1503. Sundays. 49 1504. Advertising of charitable games. 50 1505. Sanctions for violations. 51 1506. Severability. 52 § 1500. Definitions. As used in this article, in addition to the defi- 53 nitions set forth in section one hundred one of this chapter, the 54 following terms shall have the following meanings:S. 2009 106 A. 3009 1 1. "Authorized bingo lessor" shall mean a person, firm or corporation 2 other than a licensee to conduct bingo under the provisions of this 3 article, who or which owns or is a net lessee of premises and offer the 4 same for leasing by him, her or it to an authorized organization for any 5 consideration whatsoever, direct or indirect, for the purpose of 6 conducting bingo therein, provided, that he, she or it, as the case may 7 be, shall not be: 8 (a) a person convicted of a crime if there is a direct relationship 9 between one or more of the previous criminal offenses and the integrity 10 of bingo, considering the factors set forth in section seven hundred 11 fifty-three of the correction law; 12 (b) a person who is or has been a professional gambler or gambling 13 promoter or who for other reasons is not of good moral character; 14 (c) a public officer who receives any consideration, direct or indi- 15 rect, as owner or lessor of premises offered for the purpose of conduct- 16 ing bingo therein; or 17 (d) a firm or corporation in which a person defined in paragraph (a), 18 (b) or (c) of this subdivision or a person married or related in the 19 first degree to such a person has greater than a ten percent proprie- 20 tary, equitable or credit interest or in which such a person is active 21 or employed. 22 Nothing contained in this subdivision shall be construed to bar any 23 firm or corporation that is not organized for pecuniary profit and no 24 part of the net earnings of which inure to the benefit of any individ- 25 ual, member or shareholder, from being an authorized bingo lessor solely 26 because a public officer, or a person married or related in the first 27 degree to a public officer, is a member of, active in or employed by 28 such firm or corporation. 29 2. "Authorized games of chance lessor" shall mean an authorized organ- 30 ization that has been granted a lessor's license pursuant to the 31 provisions of title four of this article or a municipality. 32 3. "Authorized organization" shall mean any bona fide religious or 33 charitable organization or bona fide educational, fraternal, civic or 34 service organization or bona fide organization of veterans, volunteer 35 firefighters or volunteer ambulance workers that by its charter, certif- 36 icate of incorporation, constitution or act of the legislature has among 37 its dominant purposes one or more of the lawful purposes as defined in 38 this section, provided that each shall operate without profit to its 39 members and provided that each such organization has engaged in serving 40 one or more of the lawful purposes as defined in this section for a 41 period of one year immediately prior to applying for a license under 42 this article. No organization shall be deemed an authorized organization 43 that is formed primarily for the purpose of conducting bingo or games of 44 chance and that does not devote at least seventy-five percent of its 45 activities to other than conducting bingo or games of chance. No poli- 46 tical party, political campaign or political campaign committee shall be 47 deemed an authorized organization. 48 4. "Authorized supplier of games of chance equipment" shall mean any 49 person, firm, partnership, corporation or organization licensed by the 50 commission to sell or lease games of chance equipment or paraphernalia 51 that meets the specifications and regulations established by the commis- 52 sion. Nothing herein shall prevent an authorized organization from 53 purchasing common articles, such as cards and dice, from normal sources 54 of supply of such articles or from constructing equipment and parapher- 55 nalia for games of chance for its own use. However, no such equipment 56 or paraphernalia, constructed or owned by an authorized organizationS. 2009 107 A. 3009 1 shall be sold or leased to any other authorized organization, without 2 written permission from the commission. 3 5. "Bell jars" shall mean and include those games in which a partic- 4 ipant shall draw a card that contains numbers, colors or symbols that 5 are covered and that, when uncovered, may reveal that a prize shall be 6 awarded on the basis of a designated winning number, color or symbol or 7 combination of numbers, colors or symbols. Such card shall be drawn from 8 a jar, vending machine or other suitable device or container. Bell jars 9 shall also include seal cards, coin boards, event games and merchandise 10 boards. 11 6. "Bingo" shall mean a specific game of chance, commonly known as 12 bingo or lotto, in which prizes are awarded on the basis of designated 13 numbers or symbols on a card conforming to numbers or symbols selected 14 at random. 15 7. "Bingo control law" shall mean title two of this article. 16 8. "Bingo licensing law" shall mean title three of this article. 17 9. "Bonus ball" shall mean a bingo game that is played in conjunction 18 with one or more regular or special bingo games designated as bonus ball 19 games by the licensed authorized organization during one or more consec- 20 utive bingo occasions in which a prize is awarded to the player obtain- 21 ing a specified winning bingo pattern when the last number called by the 22 licensed authorized organization is the designated bonus ball number. 23 The bonus ball prize shall be based upon a percentage of the sales from 24 opportunities to participate in bonus ball games not to exceed seventy- 25 five percent of the sum of money received from the sale of bonus ball 26 opportunities or ten thousand dollars, whichever shall be less, and 27 which is not subject to the prize limits imposed by subdivisions five 28 and six of section fifteen hundred twenty-three and paragraph (a) of 29 subdivision one of section fifteen hundred twenty-five of this article. 30 The percentage shall be specified both in the application for the bingo 31 license and the licensee. Notwithstanding section fifteen hundred thir- 32 ty-one of this article, not more than one dollar shall be charged per 33 player for an opportunity to participate in all bonus ball games 34 conducted during a single bingo occasion, and the total amount collected 35 from the sale of bonus ball opportunities and the amount of the prize to 36 be awarded shall be announced prior to the start of each bingo occasion. 37 10. "Coin board" and "merchandise board" shall mean a board used in 38 conjunction with bell jar tickets that contains and displays various 39 coins and/or merchandise as prizes. A player having a bell jar ticket 40 with a number matching a pre-designated number reflected on the board 41 for a prize wins that prize. 42 11. "Clerk" shall mean the clerk of a municipality outside the city of 43 New York. 44 12. "Department" shall mean the New York city department of consumer 45 affairs. 46 13. "Early bird" shall mean a bingo game that is played as a special 47 game, conducted not more than twice during a bingo occasion, in which 48 prizes are awarded based upon a percentage not to exceed seventy-five 49 percent of the sum of money received from the sale of the early bird 50 cards and that is neither subject to the prize limits imposed by subdi- 51 visions five and six of section fifteen hundred twenty-three and para- 52 graph (a) of subdivision one of section fifteen hundred twenty-five, nor 53 the special game opportunity charge limit imposed by section fifteen 54 hundred thirty-one of this article. The percentage shall be specified 55 both in the application for bingo license and the license. Not more 56 than one dollar shall be charged per card with the total amountS. 2009 108 A. 3009 1 collected from the sale of the early bird cards and the prize for each 2 game to be announced before the commencement of each game. 3 14. "Event game" shall mean a bell jar game in which certain winners 4 are determined by the random selection of one or more bingo numbers, the 5 use of a seal card or by another method approved by the commission. 6 15. "Flare" shall mean a poster description of the bell jar game, 7 which shall include: 8 (a) a declaration of the number of winners and amount of prizes in 9 each deal; 10 (b) the number of prizes available in the deal; 11 (c) the number of tickets in each deal that contain the stated prize; 12 (d) the manufacturer's game form number and the serial number of the 13 deal, which shall be identical to the serial number imprinted on each 14 ticket contained in the deal; and 15 (e) such other requirements as the rules and regulations of the 16 commission may require. 17 16. "Games of chance" shall mean and include only the games known as 18 "merchandise wheels," "coin boards," "merchandise boards," "seal cards," 19 "event games," "raffles," "bell jars" and such other specific games as 20 may be authorized by the commission, in which prizes are awarded on the 21 basis of a designated winning number or numbers, color or colors, symbol 22 or symbols determined by chance, but not including games commonly known 23 as "bingo" or "lotto," which are controlled under titles two and three 24 of this article, and also not including "bookmaking," "policy or numbers 25 games" and "lottery" as defined in section 225.00 of the penal law. 26 17. "Lawful purposes" shall mean one or more of the following causes, 27 deeds or activities: 28 (a) those that benefit needy or deserving persons indefinite in number 29 by enhancing their opportunity for religious or educational advancement, 30 by relieving them from disease, suffering or distress, or by contribut- 31 ing to their physical well-being, by assisting them in establishing 32 themselves in life as worthy and useful citizens, or by increasing their 33 comprehension of and devotion to the principles upon which this nation 34 was founded and enhancing their loyalty to their governments; 35 (b) those that initiate, perform or foster worthy public works or 36 enable or further the erection or maintenance of public structures; 37 (c) those that initiate, perform or foster the provisions of services 38 to veterans by encouraging the gathering of such veterans and enable or 39 further the erection or maintenance of facilities for use by such veter- 40 ans that shall be used primarily for charitable or patriotic purposes, 41 or those purposes that shall be authorized by a bona fide organization 42 of veterans, provided however that such proceeds are disbursed in 43 accordance with the rules and regulations of the commission and section 44 fifteen hundred fifty-four of this article; and 45 (d) those that otherwise lessen the burdens borne by the government or 46 that are voluntarily undertaken by an authorized organization to augment 47 or supplement services that the government would normally render to the 48 people, including, in the case of volunteer firefighters' activities, 49 the purchase, erection or maintenance of a building for a firehouse, 50 activities open to the public for the enhancement of membership and the 51 purchase of equipment that can reasonably be expected to increase the 52 efficiency of response to fires, accidents, public calamities and other 53 emergencies. 54 18. "License period" shall mean: 55 (a) for bingo, the duration of a license issued pursuant to section 56 fifteen hundred twenty-five of this article;S. 2009 109 A. 3009 1 (b) for games of chance other than bell jars or raffles, a period of 2 time not to exceed fourteen consecutive hours; and 3 (c) for bell jars and raffles, a period of time running from January 4 first to December thirty-first of the year set forth in the license. 5 19. "Limited-period bingo" shall mean the conduct of bingo by a 6 licensed authorized organization, for a period of not more than seven of 7 twelve consecutive days in any one year, at a festival, bazaar, carnival 8 or similar function conducted by such licensed authorized organization. 9 No authorized organization licensed to conduct limited-period bingo 10 shall be otherwise eligible to conduct bingo pursuant to this title in 11 the same year. 12 20. "Municipal officer" shall mean the chief law enforcement officer 13 of a municipality outside the city of New York, or if such municipality 14 exercises the option set forth in subdivision two of section fifteen 15 hundred sixty-three of this article, the chief law enforcement officer 16 of the county. 17 21. "Municipality" shall mean any city, town or village within this 18 state. 19 22. "Net lease" shall mean a written agreement between a lessor and 20 lessee under the terms of which the lessee is entitled to the 21 possession, use or occupancy of the whole or part of any commercial 22 premises for which the lessee pays rent to the lessor and likewise 23 undertakes to pay substantially all of the regularly recurring expenses 24 incident to the operation and maintenance of such leased premises. 25 23. "Net proceeds" shall mean: 26 (a) in relation to the gross receipts from one or more occasions of 27 bingo, the amount that remains after deducting the reasonable sums 28 necessarily and actually expended for bingo supplies and equipment, 29 prizes, stated rental, if any, bookkeeping or accounting services 30 according to a schedule of compensation prescribed by the commission, 31 janitorial services and utility supplies if any, license fees, and the 32 cost of bus transportation, if authorized by the commission; 33 (b) in relation to bell jars, the difference between the ideal handle 34 from the sale of bell jar tickets, seal cards, merchandise boards and 35 coin boards less the amount of money paid out in prizes and less the 36 purchase price of the bell jar deal, seal card deal, merchandise board 37 deal or coin board deal. Additionally, a credit shall be permitted 38 against the net proceeds fee tendered to the commission for unsold tick- 39 ets of the bell jar deal so long as the unsold tickets have the same 40 serial and form number as the tickets for which the fee is rendered; 41 (c) in relation to the gross receipts from one or more license periods 42 of games of chance, the amount that shall remain after deducting the 43 reasonable sums necessarily and actually expended for supplies and 44 equipment, prizes, security-personnel, stated rental if any, bookkeeping 45 or accounting services according to a schedule of compensation 46 prescribed by the commission, janitorial services and utility supplies, 47 if any, license fees, and the cost of bus transportation, if authorized 48 by the clerk or department; 49 (d) in relation to the gross rent received by an organization licensed 50 to conduct bingo for the use of its premises by another licensee, the 51 amount that remains after deducting the reasonable sums necessarily and 52 actually expended for janitorial services and utility supplies directly 53 attributable thereto if any; and 54 (e) in relation to the gross rent received by an authorized games of 55 chance lessor for the use of its premises by a game of chance licensee, 56 the amount that shall remain after deducting the reasonable sums neces-S. 2009 110 A. 3009 1 sarily and actually expended for janitorial services and utility 2 supplies directly attributable thereto if any. 3 24. (a) "One occasion" shall mean the successive operations of any one 4 single type of game of chance that results in the awarding of a series 5 of prizes amounting to five hundred dollars or four hundred dollars 6 during any one license period, in accordance with the provisions of 7 subdivision eight of section fifteen hundred fifty-four of this article, 8 as the case may be. 9 (b) For purposes of the game of chance known as a merchandise wheel or 10 a raffle, "one occasion" shall mean the successive operations of any one 11 such merchandise wheel or raffle for which the limit on a series of 12 prizes provided by subdivision six of section fifteen hundred fifty-four 13 of this article shall apply. 14 (c) For purposes of the game of chance known as a bell jar, "one occa- 15 sion" shall mean the successive operation of any one such bell jar, seal 16 card, event game, coin board, or merchandise board that results in the 17 awarding of a series of prizes amounting to six thousand dollars. 18 (d) For the purposes of the game of chance known as raffle "one occa- 19 sion" shall mean a calendar year during which successive operations of 20 such game are conducted. 21 25. "Operation" shall mean, in regard to a game of chance, the play of 22 a single type of game of chance necessary to determine the outcome or 23 winners each time wagers are made. A single drawing of a winning ticket 24 or other receipt in a raffle shall be deemed one operation. 25 26. "Premises" shall mean, in regard to games of chance, a designated 26 area within a building, hall, tent or grounds reasonably identified for 27 the conduct of games of chance. Nothing herein shall require such area 28 to be enclosed. 29 27. "Prize," where supercard is played as set forth in subdivision 30 thirty-three of this section, shall mean the sum of money or actual 31 value of merchandise awarded to the winner or winners on a game card 32 during a game of bingo and the sum of money or actual value of merchan- 33 dise awarded to the winner or winners on a supercard in excess of the 34 total receipts derived from the sale of supercards for that specific 35 game. 36 28. "Raffle" shall mean and include those games of chance in which a 37 participant pays money in return for a ticket or other receipt and in 38 which a prize is awarded on the basis of a winning number or numbers, 39 color or colors, or symbol or symbols designated on the ticket or 40 receipt, determined by chance as a result of: 41 (a) a drawing from among those tickets or receipts previously sold; or 42 (b) a random event, the results of which correspond with tickets or 43 receipts previously sold. 44 29. "Seal cards" shall mean a board or placard used in conjunction 45 with a deal of the same serial number that contains one or more 46 concealed areas that, when removed or opened, reveal a predesignated 47 winning number, letter or symbol located on the board or placard. A seal 48 card used in conjunction with an event game shall not be required to 49 contain lines for prospective seal winners to sign their name. 50 30. "Series of prizes" shall mean the total amount of single prizes 51 minus the total amount of wagers lost during the successive operations 52 of a single type of game of chance, except that for merchandise wheels 53 and raffles, "series of prizes" shall mean the sum of cash and the fair 54 market value of merchandise awarded as single prizes during the succes- 55 sive operations of any single merchandise wheel or raffle. In the gameS. 2009 111 A. 3009 1 of raffle, a series of prizes may include a percentage of the sum of 2 cash received from the sale of raffle tickets. 3 31. "Single prize" shall mean the sum of money or fair market value of 4 merchandise or coins awarded to a participant by a games of chance 5 licensee in any one operation of a single type of game of chance in 6 excess of his or her wager. 7 32. "Single type of game" shall mean the games of chance known as 8 merchandise wheels, coin boards, merchandise boards, event games, 9 raffles and bell jars and each other specific game of chance authorized 10 by the commission. 11 33. "Supercard" shall mean a bingo card on which prizes are awarded, 12 which card is selected by the player, containing five designated 13 numbers, colors or symbols, corresponding to the letters B, I, N, G, O, 14 displayed on the bingo board of the bingo premises operator, which can 15 be played concurrently with the other bingo cards played during the game 16 of bingo. 17 § 1501. Forms. The commission shall, to the greatest extent practica- 18 ble, make forms and applications required by this article or related 19 rules and regulations of the commission available in electronic formats 20 that minimize paperwork and are designed to maximize efficiency for 21 authorized organizations, municipalities and the commission. 22 § 1502. Participation by persons under the age of eighteen. 1. No 23 person under the age of eighteen years shall be permitted to play any 24 game of bingo or any game of chance conducted pursuant to this article. 25 2. No person under the age of eighteen years shall be permitted to 26 conduct, operate or assist in the conduct of any game of bingo or game 27 of chance conducted pursuant to this article. 28 3. Persons under the age of eighteen years may be permitted to attend 29 games of chance at the discretion of the games of chance licensee. 30 § 1503. Sundays. A municipality may restrict a license to conduct 31 bingo or games of chance by providing that no bingo or games of chance 32 shall be conducted on the first day of the week, commonly known as 33 Sunday, if the provisions of a local law or an ordinance duly adopted by 34 the governing body of the municipality issuing the license prohibits the 35 conduct of bingo or games of chance pursuant to this title on such days. 36 § 1504. Advertising of charitable games. A licensee may advertise the 37 conduct of an occasion of bingo or games of chance event to the general 38 public by means of newspaper, radio, circular, handbill and poster, by 39 one sign not exceeding sixty square feet in area, which may be displayed 40 on or adjacent to the premises owned or occupied by a licensed author- 41 ized organization, by other signs as may be permitted by the rules and 42 regulations of the commission and through the internet as may be permit- 43 ted by the rules and regulations of the commission. When an organization 44 is licensed or authorized to conduct bingo occasions or games of chance 45 events on the premises of another licensed authorized organization or of 46 an authorized bingo lessor or authorized games of chance lessor, one 47 additional such sign may be displayed on or adjacent to the premises in 48 which the occasions are to be conducted. Additional signs may be 49 displayed upon any firefighting equipment belonging to any licensed 50 authorized organization that is a volunteer fire company, or upon any 51 equipment of a first aid or rescue squad in and throughout the community 52 served by such volunteer fire company or such first aid or rescue squad, 53 as the case may be. All advertisements shall be limited to: 54 (a) the description of such event as "bingo," "games of chance" or 55 "casino night," as the case may be;S. 2009 112 A. 3009 1 (b) the name of the authorized organization conducting such bingo 2 occasions or games of chance; 3 (c) the license number of the authorized organization as assigned by 4 the clerk or department; 5 (d) the prizes offered; and 6 (e) the date, location and time of the bingo occasion or games of 7 chance event. 8 § 1505. Sanctions for violations. The commission shall have the power 9 to issue letters of reprimand or impose fines in any amount up to the 10 maximum authorized by section one hundred sixteen of this chapter for 11 any violation of this article or the rules and regulations of the 12 commission. A person or entity that has been fined may request a de novo 13 hearing before the commission to review and determine such fine, pursu- 14 ant to the rules and regulations of the commission. 15 § 1506. Severability. If any provision of this article or the applica- 16 tion thereof to any municipality, person or circumstances shall be 17 adjudged unconstitutional by any court of competent jurisdiction, the 18 remainder of this article or the application thereof to other munici- 19 palities, persons and circumstances shall not be affected thereby, and 20 the legislature hereby declares that it would have enacted this title 21 without the invalid provision or application, as the case may be, had 22 such invalidity been apparent. 23 TITLE 2 24 BINGO CONTROL 25 Section 1510. Short title. 26 1511. Purpose of title. 27 1512. Other agency assistance. 28 1513. Powers and duties of the commission. 29 1514. Hearings; immunity. 30 1515. Place of investigations and hearings; witnesses; books and 31 documents. 32 1516. Privilege against self-incrimination. 33 1517. Filing and availability of rules and regulations. 34 1518. Municipality to file copies of local laws and ordinances; 35 reports. 36 § 1510. Short title. This title shall be known and may be cited as the 37 bingo control law. 38 § 1511. Purpose of title. The purpose of this title is to implement 39 section nine of article one of the state constitution, as amended by 40 vote of the people at the general election in November, nineteen hundred 41 fifty-seven. The legislature hereby declares that the raising of funds 42 for the promotion of bona fide charitable, educational, scientific, 43 health, religious, civic and patriotic causes and undertakings, where 44 the beneficiaries are indefinite, is in the public interest. It hereby 45 finds that, as conducted prior to the enactment of this title, bingo was 46 the subject of exploitation by professional gamblers, promoters and 47 commercial interests. It is hereby declared to be the policy of the 48 legislature that all phases of the supervision, licensing and the regu- 49 lation of bingo and of the conduct of bingo games, should be controlled 50 closely and that the laws and regulations pertaining thereto should be 51 construed strictly and enforced rigidly; that the conduct of bingo and 52 all attendant activities should be so regulated and adequate controls so 53 instituted as to discourage commercialization in all its forms, includ- 54 ing the rental of commercial premises for bingo games, and to ensure a 55 maximum availability of the net proceeds of bingo exclusively for appli- 56 cation to the worthy causes and undertakings specified herein; that theS. 2009 113 A. 3009 1 only justification for this title is to foster and support such worthy 2 causes and undertakings, and that the mandate of section nine of article 3 one of the state constitution, as amended, should be carried out by 4 rigid regulation to prevent commercialized gambling, prevent partic- 5 ipation by criminal and other undesirable elements and prevent the 6 diversion of funds from the purposes herein authorized. 7 § 1512. Other agency assistance. To effectuate the purposes of this 8 title, the governor may authorize any department, division, board, 9 bureau, commission or agency of the state or in any political subdivi- 10 sion thereof to provide such facilities, assistance and data as will 11 enable the commission properly to carry out its activities and effectu- 12 ate its purposes hereunder. 13 § 1513. Powers and duties of the commission. 1. The commission shall 14 have the power and it shall be its duty to: 15 (a) supervise the administration of the bingo licensing law and adopt, 16 amend and repeal rules and regulations governing the issuance and amend- 17 ment of licenses thereunder and the conducting of bingo under such 18 licenses, which rules and regulations shall have the force and effect of 19 law and shall be binding upon all municipalities issuing licenses and 20 upon licensees thereunder and licensees of the commission, to the end 21 that such licenses shall be issued to qualified licensees only and that 22 said bingo games shall be fairly and properly conducted for the purposes 23 and in the manner in the said bingo licensing law prescribed and to 24 prevent the bingo games thereby authorized to be conducted from being 25 conducted for commercial purposes or purposes other than those therein 26 authorized, participated in by criminal or other undesirable elements 27 and the funds derived from the bingo games being diverted from the 28 purposes authorized, and, to provide uniformity in the administration of 29 said law throughout the state, the commission shall prescribe forms of 30 application for licenses, licenses, amendment of licenses, reports of 31 the conduct of bingo games and other matters incident to the adminis- 32 tration of such law; 33 (b) conduct, anywhere within the state, investigations of the adminis- 34 tration, enforcement and potential or actual violations of the bingo 35 licensing law and of the rules and regulations of the commission; 36 (c) review all determinations and actions of the municipal governing 37 body in issuing an initial license and review the issuance of subsequent 38 licenses and, after hearing, revoke those licenses that do not in all 39 respects meet the requirements of this title and the rules and regu- 40 lations of the commission; 41 (d) suspend or revoke a license, after hearing, for any violation of 42 the provisions of this title or the rules and regulations of the commis- 43 sion; 44 (e) hear appeals from the determinations and action of the municipal 45 governing body in connection with the refusing to issue licenses, the 46 suspension and revocation of licenses and the imposition of fines in the 47 manner prescribed by law and the action and determination of the commis- 48 sion upon any such appeal shall be binding upon the municipal governing 49 body and all parties thereto; 50 (f) initiate prosecutions for violations of this title and of the 51 bingo licensing law; 52 (g) carry on continuous study of the operation of the bingo licensing 53 law to ascertain from time to time defects therein jeopardizing or 54 threatening to jeopardize the purposes of this title and to formulate 55 and recommend changes in such law and in other laws of the state that 56 the commission may determine to be necessary for the realization of suchS. 2009 114 A. 3009 1 purposes, and to the same end to make a continuous study of the opera- 2 tion and administration of similar laws that may be in effect in other 3 states of the United States; 4 (h) supervise the disposition of all funds derived from the conduct of 5 bingo by authorized organizations not currently licensed to conduct such 6 bingo games; and 7 (i) issue an identification number to an applicant authorized organ- 8 ization if the commission determines that the applicant satisfies the 9 requirements of the bingo licensing law and the rules and regulations of 10 the commission. 11 2. (a) The commission shall have the power to issue or, after hearing, 12 refuse to issue a license permitting a person, firm or corporation to 13 sell or distribute to any other person, firm or corporation engaged in 14 business as a wholesaler, jobber, distributor or retailer of all cards, 15 boards, sheets, pads and all other supplies, devices and equipment 16 designed for use in the play of bingo by an organization duly licensed 17 to conduct bingo games or to sell or distribute any such materials 18 directly to such an organization. For the purposes of this section the 19 words "sell or distribute" shall include, without limitation, the 20 following activities: offering for sale, receiving, handling, maintain- 21 ing, storing the same on behalf of such an organization, distributing or 22 providing the same to such an organization and offering for sale or 23 lease bingo devices and equipment. Each such license shall be valid for 24 one year. 25 (b) (1) No person, firm or corporation, other than an organization 26 that is or has been during the preceding twelve months duly licensed to 27 conduct bingo games, shall sell or distribute bingo supplies or equip- 28 ment without having first obtained a license therefor upon written 29 application made, verified and filed with the commission in the form 30 prescribed by the rules and regulations of the commission. 31 (2) The commission, as a part of its determination concerning the 32 applicant's suitability for licensing as a bingo supplier, shall require 33 the applicant to furnish to the commission two sets of fingerprints. 34 Such fingerprints shall be submitted to the division of criminal justice 35 services for a state criminal history record check, as defined in subdi- 36 vision one of section three thousand thirty-five of the education law, 37 and may be submitted to the federal bureau of investigation for a 38 national criminal history record check. 39 (3) In each such application for a license under this section shall be 40 stated: 41 (i) the name and address of the applicant; 42 (ii) the names and addresses of its officers, directors, shareholders 43 or partners; 44 (iii) the amount of gross receipts realized on the sale or distrib- 45 ution of bingo supplies and equipment to duly licensed organizations 46 during the last preceding calendar or fiscal year; and 47 (iv) such other information as shall be prescribed by such rules and 48 regulations. 49 (4) The fee for such license shall be as prescribed by regulation of 50 the commission, which shall take into account the quantity of gross 51 sales of the applicant. 52 (c) The following shall be ineligible for such a license: 53 (1) a person convicted of a crime if there is a direct relationship 54 between one or more of the previous criminal offenses and the integrity 55 of bingo, considering the factors set forth in section seven hundred 56 fifty-three of the correction law;S. 2009 115 A. 3009 1 (2) a person who is or has been a professional gambler or gambling 2 promoter or who for other reasons is not of good moral character; 3 (3) a public officer or employee; 4 (4) an operator or proprietor of a commercial hall duly licensed under 5 the bingo licensing law; and 6 (5) a firm or corporation in which a person defined in subparagraph 7 one, two, three or four of this paragraph, or a person married or 8 related in the first degree to such a person, has greater than a ten 9 percent proprietary, equitable or credit interest or in which such a 10 person is active or employed. 11 (d) The commission shall have power to examine or cause to be examined 12 the books and records of any applicant for a license, or any licensee, 13 under this section. Any information so received shall not be disclosed 14 except so far as may be necessary for the purpose of carrying out the 15 provisions of this article. 16 (e) Any solicitation of an organization licensed to conduct bingo 17 games, to purchase or induce the purchase of bingo supplies and equip- 18 ment, or any representation, statement or inquiry designed or reasonably 19 tending to influence such an organization to purchase the same, other 20 than by a person licensed or otherwise authorized pursuant to this 21 section shall constitute a violation of this section. 22 (f) Any person who willfully makes any material false statement in any 23 application for a license authorized to be issued under this title or 24 who willfully violates any of the provisions of this section or of any 25 license issued hereunder shall be guilty of a misdemeanor and, in addi- 26 tion to the penalties in such case made and provided, shall forfeit any 27 license issued to him, her or it under this section and be ineligible to 28 apply for a license under this section for one year thereafter. 29 (g) At the end of the license period, a recapitulation shall be made 30 as between the licensee and the commission in respect of the gross sales 31 actually recorded during the license period and the fee paid therefor, 32 and any deficiency of fee thereby shown to be due shall be paid by the 33 licensee and any excess of fee thereby shown to have been paid shall be 34 credited to said licensee in such manner as the commission by the rules 35 and regulations shall prescribe. 36 3. The commission shall have the power to approve and establish a 37 standard set of bingo cards comprising a consecutively numbered series 38 and shall by rules and regulations prescribe the manner in which such 39 cards are to be reproduced and distributed to licensed authorized organ- 40 izations. The sale or distribution to a licensed authorized organization 41 of any card or cards other than those contained in the standard set of 42 bingo cards shall constitute a violation of this section. Licensed 43 authorized organizations shall not be required to use nor to maintain 44 such cards seriatim excepting that the same may be required in the 45 conduct of limited-period bingo games. 46 § 1514. Hearings; immunity. 1. A hearing upon any investigation or 47 review authorized by this article may be conducted by two or more 48 members of the commission or by a hearing officer duly designated by the 49 commission, as the commission shall determine. 50 2. A person who has violated any provision of this article, or of the 51 rules and regulations of the commission, or any term of any license 52 issued under this article or such rules and regulations, is a competent 53 witness against another person so charged. In any hearing upon any 54 investigation or review authorized by this article, for or relating to a 55 violation of any provision of said article or of the rules and regu- 56 lations of the commission or of the term of any such license, theS. 2009 116 A. 3009 1 commission may confer immunity upon such witness in accordance with the 2 provisions of section 50.20 of the criminal procedure law. Such immuni- 3 ty shall be conferred only upon the vote of at least three members of 4 the commission and only after affording the attorney general and the 5 appropriate district attorney a reasonable opportunity to be heard with 6 respect to any objections that they or either of them may have to the 7 granting of such immunity. 8 § 1515. Place of investigations and hearings; witnesses; books and 9 documents. The commission may conduct investigations and hearings within 10 or without the state and shall have power to compel the attendance of 11 witnesses, the production of books, records, documents and other 12 evidence by the issuance of a subpoena signed by a person authorized by 13 the commission to do so. 14 § 1516. Privilege against self-incrimination. The willful refusal to 15 answer a material question or the assertion of privilege against self- 16 incrimination during a hearing upon any investigation or review author- 17 ized by this article by any licensee or any person identified with any 18 licensee as an officer, director, stockholder, partner, member, employee 19 or agent thereof shall constitute sufficient cause for the revocation or 20 suspension of any license issued under this title or under the licensing 21 law, as the commission or as the municipal governing body may determine. 22 § 1517. Filing and availability of rules and regulations. A copy of 23 every rule and regulation adopted and promulgated by the commission 24 shall be made available to the various municipalities operating under 25 the bingo licensing law. 26 § 1518. Municipality to file copies of local laws and ordinances; 27 reports. Each municipality in which the bingo licensing law is adopted 28 shall file with the commission a copy of each local law or ordinance 29 enacted pursuant thereto within ten days after the same has been 30 approved by a majority of the electors voting on a proposition submitted 31 at a general or special election, or within ten days after the same has 32 been amended or repealed by the common council or other local legisla- 33 tive body and on or before February first of each year, and at any other 34 time or times that the commission may determine, make a report to the 35 commission of the number of licenses issued therein under the bingo 36 licensing law, the names and addresses of the licensees, the aggregate 37 amount of license fees collected, the names and addresses of all persons 38 detected of violating the bingo licensing law, this title or the rules 39 and regulations adopted by the commission pursuant hereto, and of all 40 persons prosecuted for such violations and the result of each such pros- 41 ecution, the penalties imposed therein during the preceding calendar 42 year, or the period for which the report is required, which report may 43 contain any recommendations for improvement of the bingo licensing law 44 or the administration thereof that the governing body of the munici- 45 pality deems desirable. 46 TITLE 3 47 LOCAL OPTION FOR CONDUCT OF BINGO BY CERTAIN ORGANIZATIONS 48 Section 1520. Short title; purpose of title. 49 1521. Local option. 50 1522. Local laws and ordinances. 51 1523. Restrictions upon conduct of bingo games. 52 1524. Application for license. 53 1525. Investigation; matters to be determined; issuance of 54 license; fees; duration of license. 55 1526. Hearing; amendment of license. 56 1527. Form and contents of license; display of license.S. 2009 117 A. 3009 1 1528. Control and supervision; suspension of licenses; 2 inspection of premises. 3 1529. Frequency of game; sale of alcoholic beverages. 4 1530. Persons operating and conducting bingo games; equipment; 5 expenses; compensation. 6 1531. Charge for admission and participation; amount of prizes; 7 award of prizes. 8 1532. Statement of receipts, expenses; additional license fees. 9 1533. Examination of books and records; examination of managers, 10 etc.; disclosure of information. 11 1534. Appeals from municipal governing body to commission. 12 1535. Exemption from prosecution. 13 1536. Offenses; forfeiture of license; ineligibility to apply 14 for license. 15 1537. Unlawful bingo. 16 1538. Title inoperative until adopted by voters. 17 1539. Amendment and repeal of local laws and ordinances. 18 1540. Delegation of authority. 19 1541. Powers and duties of mayors or managers of certain cities. 20 § 1520. Short title; purpose of title. This title shall be known and 21 may be cited as the bingo licensing law. The legislature hereby declares 22 that the raising of funds for the promotion of bona fide charitable, 23 educational, scientific, health, religious, civic and patriotic causes 24 and undertakings, where the beneficiaries are indefinite, is in the 25 public interest. It hereby finds that, as conducted prior to the effec- 26 tive date of this title, bingo was the subject of exploitation by 27 professional gamblers, promoters, and commercial interests. It is hereby 28 declared to be the policy of the legislature that all phases of the 29 supervision, licensing and regulation of bingo and of the conduct of 30 bingo games, should be closely controlled and that the laws and regu- 31 lations pertaining thereto should be strictly construed and rigidly 32 enforced; that the conduct of the bingo game and all attendant activ- 33 ities should be so regulated and adequate controls so instituted as to 34 discourage commercialization in all its forms, including the rental of 35 commercial premises for bingo games, and to ensure a maximum availabili- 36 ty of the net proceeds of bingo exclusively for application to the 37 worthy causes and undertakings specified herein; that the only justi- 38 fication for this title is to foster and support such worthy causes and 39 undertakings, and that the mandate of section nine of article one of the 40 state constitution, as amended, should be carried out by rigid regu- 41 lation to prevent commercialized gambling, prevent participation by 42 criminal and other undesirable elements and prevent the diversion of 43 funds from the purposes herein authorized. 44 § 1521. Local option. Subject to the provisions of this title, and 45 pursuant to the direction contained in subdivision two of section nine 46 of article one of the constitution of the state, the legislature hereby 47 gives and grants to every municipality the right, power and authority to 48 authorize the conduct of bingo games by authorized organizations within 49 the territorial limits of such municipality provided, however, that 50 where the electors of a village hereafter approve a local law or ordi- 51 nance pursuant to section fifteen hundred twenty-three of this title, 52 the right, power and authority under this title of any town in which 53 such village is located shall not extend to such village during such 54 time as such village local law or ordinance is in effect. 55 § 1522. Local laws and ordinances. 1. The common council or other 56 local legislative body of any municipality may, either by local law orS. 2009 118 A. 3009 1 ordinance, provide that it shall be lawful for any authorized organiza- 2 tion, upon obtaining a license therefor as provided in this title, to 3 conduct the game of bingo within the territorial limits of such munici- 4 pality, subject to the provisions of such local law or ordinance, the 5 provisions of this title and the provisions of the bingo control law. 6 2. No such local law or ordinance shall become operative or effective 7 unless and until it has been approved by a majority of the electors 8 voting on a proposition submitted at a general or special election held 9 within such municipality who are qualified to vote for officers of such 10 municipality. 11 3. The time, method and manner of submission, preparation and 12 provision of ballots and ballot labels, balloting by voting machine and 13 conducting the election, canvassing the result and making and filing the 14 returns and all other procedure with reference to the submission of and 15 action upon any proposition for the approval of any such local law or 16 ordinance shall be the same as in the case of any other proposition to 17 be submitted to the electors of such municipality at a general or 18 special election in such municipality, as provided by law. 19 § 1523. Restrictions upon conduct of bingo games. The conduct of bingo 20 games authorized by local law or ordinance shall be subject to the 21 following restrictions without regard to whether such restrictions are 22 contained in such local law or ordinance, but nothing in this section 23 shall be construed to prevent the inclusion within such local law or 24 ordinance of other provisions imposing additional restrictions upon the 25 conduct of bingo games: 26 1. No person, firm, association, corporation or organization, other 27 than a licensee under the provisions of this title, shall 28 (a) conduct bingo; or 29 (b) lease or otherwise make available for conducting bingo a hall or 30 other premises for any consideration whatsoever, direct or indirect, 31 without obtaining the prior written approval of the commission. 32 2. No bingo games shall be held, operated or conducted on or within 33 any leased premises if rental under such lease is to be paid, wholly or 34 partly, on the basis of a percentage of the receipts or net profits 35 derived from the operation of such game. 36 3. No authorized organization licensed under the provisions of this 37 title shall purchase, lease or receive any supplies or equipment specif- 38 ically designed or adapted for use in the conduct of bingo games from 39 other than a supplier licensed under the bingo control law or from 40 another authorized organization. 41 4. The entire net proceeds of any game of bingo and of any rental 42 shall be devoted exclusively to the lawful purposes of the organization 43 permitted to conduct the same. 44 5. No prize shall exceed the sum or value of five thousand dollars in 45 any single game of bingo. 46 6. No series of prizes on any one bingo occasion shall aggregate more 47 than fifteen thousand dollars. 48 7. No person except a bona fide member of any such organization shall 49 participate in the management or operation of such bingo game. 50 8. No person shall receive any remuneration for participating in the 51 management or operation of any game of bingo. 52 9. The unauthorized conduct of a bingo game and any willful violation 53 of any provision of any local law or ordinance shall constitute and be 54 punishable as a misdemeanor. 55 10. No person licensed to sell bingo supplies or equipment, or any 56 agent of such person, shall conduct, participate in or assist in theS. 2009 119 A. 3009 1 conduct of bingo. Nothing herein shall prohibit a licensed distributor 2 from selling, offering for sale or explaining a product to an authorized 3 organization or installing or servicing bingo equipment upon the prem- 4 ises of a bingo game licensee. 5 11. Limited-period bingo shall be conducted in accordance with the 6 provisions of this title and the rules and regulations of the commis- 7 sion. 8 § 1524. Application for license. 1. To conduct bingo. (a) Each appli- 9 cant for a license to conduct bingo shall, after obtaining an identifi- 10 cation number from the commission, file with the clerk of the munici- 11 pality an application therefor in the form prescribed in the rules and 12 regulations of the commission, duly executed and verified, in which such 13 applicant shall state: 14 (1) the name and address of the applicant together with sufficient 15 facts relating to such applicant's incorporation and organization to 16 enable the governing body of the municipality to determine whether or 17 not the applicant is a bona fide authorized organization; 18 (2) the names and addresses of the applicant's officers; 19 (3) the place or places where, and the date or dates and the time or 20 times when, the applicant intends to conduct bingo under the license 21 applied for; 22 (4) in case the applicant intends to lease premises for this purpose 23 from other than an authorized organization, the name and address of the 24 licensed bingo lessor of such premises, and the capacity or potential 25 capacity for public assembly purposes of space in any premises presently 26 owned or occupied by the applicant; 27 (5) the amount of rent to be paid or other consideration to be given 28 directly or indirectly for each occasion for use of the premises of 29 another authorized organization licensed under this title to conduct 30 bingo or for use of the premises of a licensed bingo lessor; 31 (6) all other items of expense intended to be incurred or paid in 32 connection with the holding, operating and conducting of such games of 33 bingo and the names and addresses of the persons to be paid and the 34 purposes for which such persons are to be paid; 35 (7) the specific purposes to which the entire net proceeds of such 36 games of bingo are to be devoted and in what manner; 37 (8) that no commission, salary, compensation, reward or recompense 38 will be paid to any person for conducting such bingo game or games or 39 for assisting therein except as in this title otherwise provided; and 40 (9) such other information as shall be prescribed by the rules and 41 regulations of the commission. 42 (b) In each application there shall be designated an active member or 43 members of the applicant organization under whom the game or games of 44 bingo will be conducted and to the application shall be appended a 45 statement executed by the member or members so designated, that he, she 46 or they will be responsible for the conduct of such bingo games in 47 accordance with the terms of the license and the rules and regulations 48 of the commission and of this title. 49 2. Bingo lessor. (a) Each applicant for a license to lease premises to 50 a licensed organization for the purposes of conducting bingo therein 51 shall file with the clerk of the municipality an application therefor in 52 a form prescribed in the rules and regulations of the commission duly 53 executed and verified, which shall set forth: 54 (1) the name and address of the applicant; 55 (2) designation and address of the premises intended to be covered by 56 the license sought;S. 2009 120 A. 3009 1 (3) lawful capacity for public assembly purposes; 2 (4) cost of premises and assessed valuation for real estate tax 3 purposes, or annual net lease rent, whichever is applicable; 4 (5) gross rentals received and itemized expenses for the immediately 5 preceding calendar or fiscal year, if any; 6 (6) gross rentals, if any, derived from bingo during the last preced- 7 ing calendar or fiscal year; 8 (7) computation by which proposed rental schedule was determined; 9 (8) number of occasions on which applicant anticipates receiving rent 10 for bingo during the ensuing year or shorter period if applicable; 11 (9) proposed rent for each such occasion; estimated gross rental 12 income from all other sources during the ensuing year; 13 (10) estimated expenses itemized for ensuing year and amount of each 14 item allocated to bingo rentals; 15 (11) a statement that the applicant in all respects conforms with the 16 specifications contained in the definition of "authorized bingo lessor" 17 set forth in section fifteen hundred of this article; and 18 (12) such other information as shall be prescribed by the rules and 19 regulations of the commission. 20 (b) At the end of the license period, a recapitulation, in a manner 21 prescribed in the rules and regulations of the commission, shall be made 22 as between the licensee and the municipal governing body in respect of 23 the gross rental actually received during the license period and the fee 24 paid therefor. The licensee shall pay any deficiency of fee thereby 25 shown to be due and any excess of fee thereby shown to have been paid 26 shall be credited to such licensee, in such manner as the commission by 27 rules and regulations shall prescribe. 28 § 1525. Investigation; matters to be determined; issuance of license; 29 fees; duration of license. 1. The governing body of the municipality 30 shall make an investigation of the qualifications of each applicant and 31 the merits of each application, with due expedition after the filing of 32 the application. 33 (a) Issuance of licenses to conduct bingo. If the governing body of 34 the municipality determines: 35 (1) that the applicant is duly qualified to be licensed to conduct 36 bingo under this title; 37 (2) that the member or members of the applicant designated in the 38 application to conduct bingo are bona fide active members of the appli- 39 cant and are persons of good moral character and have never been 40 convicted of a crime if there is a direct relationship between one or 41 more of the previous criminal offenses and the integrity of bingo, 42 considering the factors set forth in section seven hundred fifty-three 43 of the correction law; 44 (3) that such games of bingo are to be conducted in accordance with 45 the provisions of this title and in accordance with the rules and regu- 46 lations of the commission; 47 (4) that the proceeds thereof are to be disposed of as provided by 48 this title; 49 (5) if the governing body is satisfied that no commission, salary, 50 compensation, reward or recompense whatever will be paid or given to any 51 person holding, operating or conducting or assisting in the holding, 52 operation and conduct of any such games of bingo except as in this title 53 otherwise provided; and 54 (6) that no prize will be offered and given in excess of the sum or 55 value of five thousand dollars in any single game of bingo and that the 56 aggregate of all prizes offered and given in all of such games of bingoS. 2009 121 A. 3009 1 conducted on a single occasion, under said license shall not exceed the 2 sum or value of fifteen thousand dollars, then the municipality shall 3 issue a license to the applicant for the conduct of bingo upon payment 4 of a license fee for each bingo occasion, to be established by regu- 5 lation of the commission. Notwithstanding anything to the contrary in 6 this paragraph, the governing body shall refuse to issue a license to an 7 applicant seeking to conduct bingo in premises of a licensed bingo 8 lessor where such governing body determines that the premises presently 9 owned or occupied by such applicant are in every respect adequate and 10 suitable for conducting bingo games. 11 (b) Issuance of licenses to bingo lessors. If the governing body of 12 the municipality determines that: 13 (1) the applicant seeking to lease a hall or premises for the conduct 14 of bingo to an authorized organization is duly qualified to be licensed 15 under this title; 16 (2) the applicant satisfies the requirements for an authorized bingo 17 lessor as defined in section fifteen hundred of this article; 18 (3) at the time of the issuance of an initial license, there is a 19 public need and that public advantage will be served by the issuance of 20 such license; 21 (4) the applicant has filed its proposed rent for each bingo occasion; 22 (5) the commission has approved as fair and reasonable a schedule of 23 maximum rentals for each such occasion; 24 (6) there is no diversion of the funds of the proposed lessee from the 25 lawful purposes as defined in this title; and 26 (7) such leasing of a hall or premises for the conduct of bingo is to 27 be in accordance with the provisions of this title and in accordance 28 with the rules and regulations of the commission, such governing body 29 shall issue a license permitting the applicant to lease said premises 30 for the conduct of bingo to the authorized organization or organizations 31 specified in the application during the period therein specified or such 32 shorter period as the governing body of the municipality determines, but 33 not to exceed one year, upon payment of a license fee established by 34 regulation of the commission. 35 2. On or before the thirtieth day of each month, the treasurer of the 36 municipality shall transmit to the state comptroller a sum equal to 37 fifty percent of all bingo lessor license fees and an amount established 38 by regulation of the commission per occasion of all license fees for the 39 conduct of bingo collected by such municipality pursuant to this section 40 during the preceding calendar month. 41 3. No license shall be issued under this title that is effective for a 42 period of more than one year. In the case of limited-period bingo, no 43 license shall be issued authorizing the conduct of such games on more 44 than two occasions in any one day, nor shall any license be issued under 45 this title that is effective for a period of more than seven of twelve 46 consecutive days in any one year. No license for the conduct of limit- 47 ed-period bingo shall be issued in cities having a population of one 48 million or more. 49 § 1526. Hearing; amendment of license. 1. No application for the issu- 50 ance of a license shall be denied by the governing body until after a 51 hearing, held on due notice to the applicant, at which the applicant 52 shall be entitled to be heard upon the qualifications of the applicant 53 and the merits of the application. 54 2. Any license issued under this title may be amended, upon applica- 55 tion made to the governing body of the municipality that issued such 56 license, if the subject matter of the proposed amendment could lawfullyS. 2009 122 A. 3009 1 and properly have been included in the original license and upon payment 2 of such additional license fee if any, as would have been payable if 3 such amendment had been so included. 4 § 1527. Form and contents of license; display of license. 1. Each 5 license to conduct bingo shall be in such form as the rules and regu- 6 lations of the commission prescribe and shall contain: 7 (a) the name and address of the licensee; 8 (b) the names of the member or members of the licensee under whom the 9 games will be conducted; 10 (c) the place or places where and the date or dates and time or times 11 when such games are to be conducted; 12 (d) the specific purposes to which the entire net proceeds of such 13 games are to be devoted; and 14 (e) if any prize or prizes are to be offered and given in cash, a 15 statement of the amounts of the prizes authorized so to be offered and 16 given and any other information that the rules and regulations of the 17 commission may require. 18 2. Each license issued for the conduct of any game of bingo shall be 19 displayed conspicuously at the place where such game of bingo is to be 20 conducted at all times during such conduct. 21 3. Each license to lease premises for conducting bingo shall be in 22 such form as the rules and regulations of the commission prescribe and 23 shall contain a statement of the name and address of the licensee and 24 the address of the leased premises, the amount of permissible rent and 25 any other information that the rules and regulations of the commission 26 may require. Each such license shall be displayed conspicuously upon 27 such premises at all times during the conduct of bingo. 28 § 1528. Control and supervision; suspension of licenses; inspection of 29 premises. 1. The governing body of any municipality issuing any license 30 under this title shall have and exercise rigid control and close super- 31 vision over all games of bingo conducted under such license, to the end 32 that the same are fairly conducted in accordance with the provisions of 33 such license, the provisions of the rules and regulations of the commis- 34 sion and the provisions of this title and such governing body. 35 2. The commission shall have the power and the authority to suspend 36 any license issued by such governing body and to revoke the same, and, 37 additionally, in the case of an authorized bingo lessor, to impose a 38 fine in an amount not exceeding one thousand dollars, after notice and 39 hearing, for violation of any such provisions, and shall have the right 40 of entry, by the commission's officers and agents, at all times into any 41 premises where any game of bingo is being conducted or where it is 42 intended that any such game of bingo shall be conducted, or where any 43 equipment being used or intended to be used in the conduct thereof is 44 found, for the purpose of inspecting the same. 45 3. In addition to the authority granted pursuant to subdivision two of 46 this section, the governing body in a city having a population of one 47 million or more and the commission may impose a fine in an amount not 48 exceeding one thousand dollars, after notice and hearing, on any licen- 49 see under this title for violation of any provision of such license, 50 this title or rules and regulations of the commission. 51 § 1529. Frequency of game; sale of alcoholic beverages. No game or 52 games of bingo, except limited-period bingo, shall be conducted under 53 any license issued under this title more often than on eighteen days in 54 any three successive calendar months. No game or games of limited-period 55 bingo shall be conducted between the hours of twelve midnight and noon, 56 and no more than sixty games may be conducted on any single occasion ofS. 2009 123 A. 3009 1 limited-period bingo. No game or games of bingo shall be conducted in 2 any room or outdoor area where alcoholic beverages are sold, served or 3 consumed during the progress of the game or games. 4 § 1530. Persons operating and conducting bingo games; equipment; 5 expenses; compensation. 1. (a) No person shall hold, operate or conduct 6 any game of bingo under any license issued under this title except a 7 bona fide member of the authorized organization to which the license is 8 issued. No person shall assist in the holding, operating or conducting 9 of any game of bingo under such license except such a bona fide member 10 or a bona fide member of an organization or association that is an 11 auxiliary to the licensee or a bona fide member of an organization or 12 association of which such licensee is an auxiliary or a bona fide member 13 of an organization or association that is affiliated with the licensee 14 by being, with it, auxiliary to another organization or association and 15 except bookkeepers or accountants as hereinafter provided, but any 16 person may assist the licensed organization in any activity related to 17 the game of bingo that does not actually involve the holding, conduct- 18 ing, managing or operating of such game of bingo. 19 (b) No game of bingo shall be conducted with any equipment except such 20 as shall be owned absolutely or leased by the authorized organization so 21 licensed or used without payment of any compensation therefor by the 22 licensee. 23 (c) Lease terms and conditions shall be subject to the rules and regu- 24 lations of the commission. 25 (d) This title shall not be construed to authorize or permit an 26 authorized organization to engage in the business of leasing bingo 27 supplies or equipment. 28 (e) No items of expense shall be incurred or paid in connection with 29 the conducting of any game of bingo pursuant to any license issued under 30 this title, except those that are reasonable and are necessarily 31 expended for bingo supplies and equipment, prizes, stated rental, if 32 any, bookkeeping or accounting services according to a schedule of 33 compensation prescribed by the commission, janitorial services and util- 34 ity supplies, if any, and license fees, and the cost of bus transporta- 35 tion, if authorized by the commission. 36 2. Notwithstanding any provision of this title to the contrary, a 37 person who is a bona fide member of an organization licensed to conduct 38 the game of bingo and is also a bona fide member of one or more other 39 organizations that are also licensed to conduct the game of bingo, and 40 such organizations are not affiliates or auxiliaries of the others, 41 shall be authorized to operate, conduct or assist in the operation or 42 conduct of games of bingo held by any of such organizations licensed to 43 conduct bingo. 44 § 1531. Charge for admission and participation; amount of prizes; 45 award of prizes. 1. Except in the conduct of limited-period bingo, the 46 regulations of the commission shall establish a maximum amount to be 47 charged by any licensee for admission to any room or place in which any 48 game or games of bingo are to be conducted under any license issued 49 under this title, which admission fee, upon payment thereof, shall enti- 50 tle the person paying the same to participate without additional charge 51 in all regular games of bingo to be played under such license on such 52 occasion. 53 2. In the conduct of limited-period bingo: 54 (a) no admission fee shall be charged; 55 (b) not more than an amount established by regulation of the commis- 56 sion shall be charged for a single opportunity to participate in any oneS. 2009 124 A. 3009 1 game of bingo, which charge, upon payment thereof, shall entitle the 2 person paying the same to one card for participation in one such game; 3 and 4 (c) no licensee shall sell more than five opportunities to each player 5 participating in any one game of bingo. Every winner in a game of bingo 6 shall be determined and every prize shall be awarded and delivered with- 7 in the same calendar day as that upon which the game of bingo was 8 played. 9 § 1532. Statement of receipts, expenses; additional license fees. 1. 10 Within seven days after the conclusion of any occasion of bingo, the 11 authorized organization that conducted the same, and such authorized 12 organization's members who were in charge thereof, and when applicable 13 the authorized organization that rented its premises therefor, shall 14 each furnish to the clerk or the department a statement subscribed by 15 the member in charge and affirmed by such person as true, under the 16 penalties of perjury, showing the amount of the gross receipts derived 17 therefrom and each item of expense incurred, or paid, and each item of 18 expenditure made or to be made, the name and address of each person to 19 whom each such item has been paid, or is to be paid, with a detailed 20 description of the merchandise purchased or the services rendered there- 21 for, the net proceeds derived from such game or rental, as the case may 22 be, and the use to which such proceeds have been or are to be applied 23 and a list of prizes offered and given, with the respective values ther- 24 eof. A clerk or the department shall make provisions for the electronic 25 filing of such statement. It shall be the duty of each licensee to main- 26 tain and keep such books and records as may be necessary to substantiate 27 the particulars of each such statement and within fifteen days after the 28 end of each calendar quarter during which there has been any occasion of 29 bingo, a summary statement of such information, in form prescribed by 30 the commission, shall be furnished in the same manner to the commission. 31 2. Upon the filing of such statement of receipts, the authorized 32 organization furnishing the same shall pay to the clerk of the munici- 33 pality as and for an additional license fee a sum based upon the 34 reported net proceeds, if any, for the occasion covered by such state- 35 ment and determined in accordance with such schedule as shall be estab- 36 lished from time to time by the commission to defray the cost to munici- 37 palities of administering the provisions of this article. 38 § 1533. Examination of books and records; examination of managers, 39 etc.; disclosure of information. 1. The governing body of the munici- 40 pality and the commission shall have power to examine or cause to be 41 examined the books and records of any: 42 (a) authorized organization that is or has been licensed to conduct 43 bingo, so far as such books and records may relate to bingo, including 44 the maintenance, control and disposition of net proceeds derived from 45 bingo or from the use of its premises for bingo, and to examine any 46 manager, officer, director, agent, member or employee thereof under oath 47 in relation to the conduct of any such game of bingo under any such 48 license, the use of its premises for bingo, or the disposition of net 49 proceeds derived from bingo, as the case may be; and 50 (b) licensed authorized bingo lessor so far as such books and records 51 may relate to leasing premises for bingo and to examine said lessor or 52 any manager, officer, director, agent or employee thereof under oath in 53 relation to such leasing. 54 2. Any information so received shall not be disclosed except so far as 55 may be necessary for the purpose of carrying out the provisions of this 56 article.S. 2009 125 A. 3009 1 § 1534. Appeals from municipal governing body to commission. Any 2 applicant for, or holder of, any license issued or to be issued under 3 this title aggrieved by any action of the governing body of the munici- 4 pality to which such application has been made or by which such license 5 has been issued, may appeal to the commission from the determination of 6 said governing body by filing with the governing body a written notice 7 of appeal within thirty days after the determination or action appealed 8 from. Upon the hearing of such appeal, the evidence, if any, taken 9 before the governing body and any additional evidence may be produced 10 and shall be considered in arriving at a determination of the matters in 11 issue. Action of the commission upon said appeal shall be binding upon 12 said governing body and all parties to said appeal. 13 § 1535. Exemption from prosecution. No person or corporation lawfully 14 conducting, or participating in the conduct of bingo or permitting the 15 conduct upon any premises owned or leased by him, her or it under any 16 license lawfully issued pursuant to this title, shall be liable to pros- 17 ecution or conviction for violation of any provision of article two 18 hundred twenty-five of the penal law or any other law or ordinance to 19 the extent that such conduct is specifically authorized by this title, 20 but this immunity shall not extend to any person or corporation knowing- 21 ly conducting or participating in the conduct of bingo under any license 22 obtained by any false pretense or by any false statement made in any 23 application for license or otherwise, or permitting the conduct upon any 24 premises owned or leased by him, her or it of any game of bingo 25 conducted under any license known to him, her or it to have been 26 obtained by any such false pretense or statement. 27 § 1536. Offenses; forfeiture of license; ineligibility to apply for 28 license. Any person who, or association or corporation that: 29 1. makes any false statement in any application for any license 30 authorized to be issued under this title; 31 2. pays or receives, for the use of any premises for conducting bingo, 32 a rental in excess of the amount specified as the permissible rent in 33 the license provided for in subdivision two of section fifteen hundred 34 twenty-four of this title; 35 3. fails to keep books and records that fully and truly record all 36 transactions connected with the conducting of bingo or the leasing of 37 premises to be used for the conduct of bingo; 38 4. falsifies or makes any false entry in any books or records so far 39 as such books or records relate in any manner to the conduct of bingo, 40 to the disposition of the proceeds thereof and to the application of the 41 rents received by any authorized organization; 42 5. diverts or pays any portion of the net proceeds of any game of 43 bingo to any person, association or corporation, except in furtherance 44 of one or more of the lawful purposes defined in this title; or 45 6. violates any of the provisions of this title or of any term of any 46 license issued under this title; shall be guilty of a misdemeanor and 47 shall forfeit any license issued under this title and be ineligible to 48 apply for a license under this title for one year thereafter. 49 § 1537. Unlawful bingo. 1. For the purposes of this section, bingo 50 shall include a game of bingo whether or not a person who participates 51 as a player furnishes something of value for the opportunity to partic- 52 ipate. 53 2. Any person, firm, partnership, association, corporation or organ- 54 ization holding, operating or conducting bingo is guilty of a misdemea- 55 nor, except when operating, holding or conducting:S. 2009 126 A. 3009 1 (a) in accordance with a valid license issued pursuant to this title; 2 or 3 (b) within a municipality that has authorized the conduct of bingo 4 games by authorized organizations: 5 (1) within the confines of a home for purposes of amusement or recre- 6 ation where no player or other person furnishes anything of value for 7 the opportunity to participate and the prizes awarded or to be awarded 8 are nominal. 9 (2) within any apartment, condominium or cooperative complex, retire- 10 ment community, or other group residential complex or facility where: 11 (i) sponsored by the operator of or an association related to such 12 complex, community or facility; 13 (ii) such games are conducted solely for the purpose of amusement and 14 recreation of its residents; 15 (iii) no player or other person furnishes anything of value for the 16 opportunity to participate; 17 (iv) the value of the prizes do not exceed ten dollars for any one 18 game or a total of one hundred fifty dollars in any calendar day; 19 (v) such games are not conducted on more than fifteen days during any 20 calendar year; and 21 (vi) no person other than an employee or volunteer of such complex, 22 community or facility conducts or assists in conducting the game or 23 games. 24 (3) on behalf of any bona fide social, charitable, educational, recre- 25 ational, fraternal or age-group organization, club or association solely 26 for the purpose of amusement and recreation of its members or benefici- 27 aries where: 28 (i) no player or other person furnishes anything of value for the 29 opportunity to participate; 30 (ii) the value of the prizes do not exceed ten dollars for any one 31 game or a total of one hundred fifty dollars in any calendar day; 32 (iii) such games are not conducted on more than fifteen days during 33 any calendar year; 34 (iv) no person other than a bona fide active member of the organiza- 35 tion, club or association participates in the conduct of the games; and 36 (v) no person is paid for conducting or assisting in the conduct of 37 the game or games. 38 (4) as a hotel's, motel's, recreational or entertainment facility's or 39 common carrier's social activity solely for the purpose of amusement and 40 recreation of its patrons where: 41 (i) no player or other person furnishes anything of value for the 42 opportunity to participate; 43 (ii) the value of the prizes do not exceed ten dollars for any one 44 game or a total of one hundred fifty dollars in any calendar day; 45 (iii) such games are not conducted on more than fifteen days during 46 any calendar year; 47 (iv) no person other than an employee or volunteer conducts or assists 48 in conducting the game or games; and 49 (v) the game or games are not conducted in the same room where alco- 50 holic beverages are sold. 51 (5) The commission and the governing body of the municipality in which 52 bingo games are conducted pursuant to paragraph (b) of subdivision two 53 of this section shall have the authority to regulate the conduct of such 54 games. Any bingo game or games, in which no participant or other person 55 furnishes anything of value for the opportunity to participate, that is 56 or are operated in violation of paragraph (b) of subdivision two of thisS. 2009 127 A. 3009 1 section, a civil penalty of not more than one hundred dollars may be 2 imposed for the first such violation, a civil penalty of not more than 3 one hundred fifty dollars may be imposed for the second such violation 4 in a period of three years and a civil penalty of not more than two 5 hundred dollars may be imposed for the third or subsequent such 6 violation in a period of five years. 7 3. The provisions of this section shall apply to all municipalities 8 within this state, including those municipalities where this title is 9 inoperative. 10 § 1538. Title inoperative until adopted by voters. Except as provided 11 in section fifteen hundred forty, the provisions of this title shall 12 remain inoperative in any municipality unless and until a proposition 13 therefor submitted at a general or special election in such municipality 14 is approved by a vote of the majority of the qualified electors in such 15 municipality voting thereon. 16 § 1539. Amendment and repeal of local laws and ordinances. 1. Any 17 local law or ordinance concerning bingo may be amended, from time to 18 time, or repealed by the common council or other local legislative body 19 of the municipality that enacted it and such amendment or repeal, as the 20 case may be, may be made effective and operative not earlier than thirty 21 days following the effective date of the local law or ordinance effect- 22 ing such amendment or repeal, as the case may be. 23 2. The approval of a majority of the electors of such municipality 24 shall not be a condition prerequisite to the taking effect of such local 25 law or ordinance. 26 § 1540. Delegation of authority. The governing body of a municipality 27 may delegate to a municipal officer or officers designated by such muni- 28 cipality for that purpose any of the authority granted to it hereby in 29 relation to the issuance, amendment and cancellation of licenses, the 30 conduct of investigations and hearings, the supervision of the operation 31 of the games and the collection and transmission of fees. 32 § 1541. Powers and duties of mayors or managers of certain cities. 33 Notwithstanding any other provision of this title, whenever the charter 34 of any city, or any special or local law, provides that the mayor or 35 manager of such city is the chief law enforcement officer thereof, then 36 and in that event such mayor or manager, as the case may be, shall have, 37 exercise and perform all the powers and duties otherwise prescribed by 38 this title to be exercised and performed by the governing body of such 39 city except those prescribed by section fifteen hundred twenty-two of 40 this title, and in any such case, the term "governing body of a munici- 41 pality" as used in this title shall be deemed to mean and include the 42 mayor or manager of any such city. 43 TITLE 4 44 LOCAL OPTION FOR CONDUCT OF GAMES OF CHANCE BY CERTAIN 45 ORGANIZATIONS 46 Section 1550. Short title; purpose of title. 47 1551. Local option. 48 1552. Local laws and ordinances. 49 1553. Powers and duties of the commission. 50 1554. Restrictions upon conduct of games of chance. 51 1555. Authorized supplier of games of chance equipment. 52 1556. Declaration of state's exemption from operation of 53 provisions of 15 U.S.C. § 1172. 54 1557. Legal shipments of gaming devices into New York state. 55 1558. Application for license. 56 1559. Raffles; license not required.S. 2009 128 A. 3009 1 1560. Investigation; matters to be determined; issuance of 2 license; fees; duration of license. 3 1561. Hearing; amendment of license. 4 1562. Form and contents of license; display of license. 5 1563. Control and supervision; suspension of identification 6 numbers and licenses; inspections of premises. 7 1564. Frequency of games. 8 1565. Persons operating games; equipment; expenses; compen- 9 sation. 10 1566. Charge for admission and participation; amount of prizes; 11 award of prizes. 12 1567. Statement of receipts and expenses; additional license 13 fees. 14 1568. Examination of books and records; examination of officers 15 and employees; disclosure of information. 16 1569. Appeals for the decision of a municipal officer, clerk or 17 department to the commission. 18 1570. Exemption from prosecution. 19 1571. Offenses; forfeiture of license; ineligibility to apply 20 for license. 21 1572. Unlawful games of chance. 22 1573. Title inoperative until adopted by voters. 23 1574. Amendment and repeal of local laws and ordinances. 24 1575. Manufacturers of bell jars; reports and records. 25 1576. Distributor of bell jars; reports and records. 26 1577. Transfer restrictions. 27 1578. Bell jars compliance and enforcement. 28 § 1550. Short title; purpose of title. This title shall be known and 29 may be cited as the games of chance licensing law. The legislature here- 30 by declares that the raising of funds for the promotion of bona fide 31 charitable, educational, scientific, health, religious and patriotic 32 causes and undertakings, where the beneficiaries are undetermined, is in 33 the public interest. The legislature hereby finds that, as conducted 34 prior to the effective date of this title, games of chance were the 35 subject of exploitation by professional gamblers, promoters and commer- 36 cial interests. It is hereby declared to be the policy of the legisla- 37 ture that all phases of the supervision, licensing and regulation of 38 games of chance and of the conduct of games of chance should be closely 39 controlled and that the laws and regulations pertaining thereto should 40 be strictly construed and rigidly enforced; that the conduct of the game 41 and all attendant activities should be so regulated and adequate 42 controls so instituted as to discourage commercialization of gambling in 43 all its forms, including the rental of commercial premises for games of 44 chance, and to ensure a maximum availability of the net proceeds of 45 games of chance exclusively for application to the worthy causes and 46 undertakings specified herein; that the only justification for this 47 title is to foster and support such worthy causes and undertakings, and 48 that the mandate of subdivision two of section nine of article one of 49 the state constitution, as amended, should be carried out by rigid regu- 50 lations to prevent commercialized gambling, prevent participation by 51 criminal and other undesirable elements and prevent the diversion of 52 funds from the purposes herein authorized. 53 § 1551. Local option. Subject to the provisions of this title, and 54 pursuant to the direction contained in subdivision two of section nine 55 of article one of the state constitution, the legislature hereby gives 56 and grants to every municipality the right, power and authority toS. 2009 129 A. 3009 1 authorize the conduct of games of chance by authorized organizations 2 within the territorial limits of such municipality. A local law or ordi- 3 nance adopted by a town shall be operative in any village or within any 4 part of any village located within such town if, after adoption of such 5 local law or ordinance, the board of trustees of such village adopts a 6 local law or resolution subject to a permissive referendum as provided 7 in article nine of the village law authorizing the issuance of licenses 8 by the town for games of chance within such village. Such local law or 9 resolution may be repealed only by a local law or resolution that shall 10 also be subject to a permissive referendum, or by enactment of a local 11 law authorizing games of chance as provided in section fifteen hundred 12 fifty-two of this title. 13 § 1552. Local laws and ordinances. 1. The common council or other 14 local legislative body of any municipality may, either by local law or 15 ordinance, provide that it shall be lawful for any authorized organiza- 16 tion, upon obtaining a license therefor as hereinafter provided, to 17 conduct games of chance within the territorial limits of such munici- 18 pality, subject to the provisions of such local law or ordinance, the 19 provisions of this title and the provisions set forth by the commission. 20 2. No such local law or ordinance shall become operative or effective 21 unless and until it shall have been approved by a majority of the elec- 22 tors voting on a proposition submitted at a general or special election 23 held within such municipality who are qualified to vote for officers of 24 such municipality. 25 3. The time, method and manner of submission, preparation and 26 provision of ballots and ballot labels, balloting by voting machine and 27 conducting the election, canvassing the result and making and filing the 28 returns and all other procedure with reference to the submission of and 29 action upon any proposition for the approval of any such local law or 30 ordinance shall be the same as in the case of any other proposition to 31 be submitted to the electors of such municipality at a general or 32 special election in such municipality, as provided by law. 33 § 1553. Powers and duties of the commission. The commission shall have 34 the power and it shall be the duty of the commission to: 35 1. supervise the administration of the games of chance licensing law 36 and to adopt, amend and repeal rules and regulations governing the issu- 37 ance and amendment of licenses thereunder and the conducting of games 38 under such licenses, which rules and regulations shall have the force 39 and effect of law and shall be binding upon all municipalities issuing 40 licenses, and upon licensees of the commission, to the end that such 41 licenses shall be issued to qualified licensees only, and that said 42 games shall be fairly and properly conducted for the purposes and in the 43 manner of the said games of chance licensing law prescribed and to 44 prevent the games of chance thereby authorized to be conducted from 45 being conducted for commercial purposes or purposes other than those 46 therein authorized, participated in by criminal or other undesirable 47 elements and the funds derived from the games being diverted from the 48 purposes authorized, and to provide uniformity in the administration of 49 said law throughout the state, the commission shall prescribe forms of 50 application for licenses, licensees, amendment of licenses, reports of 51 the conduct of games and other matters incident to the administration of 52 such law. 53 2. conduct, anywhere in the state, investigations of the adminis- 54 tration, enforcement and potential or actual violations of the games of 55 chance licensing law and of the rules and regulations of the commission.S. 2009 130 A. 3009 1 3. review all determinations and actions of the clerk or department in 2 issuing an initial license and it may review the issuance of subsequent 3 licenses and, after hearing, revoke those licenses that do not in all 4 respects meet the requirements of this title and the rules and regu- 5 lations of the commission. 6 4. suspend or revoke a license, after hearing, for any violation of 7 the provisions of this title or the rules and regulations of the commis- 8 sion. 9 5. hear appeals from the determinations and action of the clerk, 10 department or municipal officer in connection with the refusing to issue 11 licenses, the suspension and revocation of licenses and the imposition 12 of fines in the manner prescribed by law and the action and determi- 13 nation of the commission upon any such appeal shall be binding upon the 14 clerk, department or municipal officer and all parties thereto. 15 6. carry on continuous study of the operation of the games of chance 16 licensing law to ascertain from time to time defects therein jeopardiz- 17 ing or threatening to jeopardize the purposes of this title, and to 18 formulate and recommend changes in such law and in other laws of the 19 state that the commission may determine to be necessary for the realiza- 20 tion of such purposes, and to the same end to make a continuous study of 21 the operation and administration of similar laws that may be in effect 22 in other states of the United States. 23 7. supervise the disposition of all funds derived from the conduct of 24 games of chance by authorized organizations not currently licensed to 25 conduct such games. 26 8. issue an identification number to an applicant authorized organiza- 27 tion if the commission determines that the applicant satisfies the 28 requirements of the games of chance licensing law and the rules and 29 regulations of the commission. 30 9. approve and establish a standard set of games of chance equipment 31 and by rules and regulations prescribe the manner in which such equip- 32 ment is to be reproduced and distributed to licensed authorized organ- 33 izations. The sale or distribution to a licensed authorized organization 34 of any equipment other than that contained in the standard set of games 35 of chance equipment shall constitute a violation of this section. 36 § 1554. Restrictions upon conduct of games of chance. The conduct of 37 games of chance authorized by local law or ordinance shall be subject to 38 the following restrictions without regard to whether the restrictions 39 are contained in such local law or ordinance, but nothing herein shall 40 be construed to prevent the inclusion within such local law or ordinance 41 of other provisions imposing additional restrictions upon the conduct of 42 such games: 43 1. No person, firm, partnership, corporation or organization, other 44 than a licensee under the provisions of section fifteen hundred sixty of 45 this title, shall 46 (a) conduct such game; or 47 (b) lease or otherwise make available for conducting games of chance 48 premises for any consideration whatsoever, direct or indirect, without 49 obtaining the prior written approval of the commission. 50 2. No game of chance shall be held, operated or conducted on or within 51 any leased premises if rental under such lease is to be paid, wholly or 52 partly, on the basis of a percentage of the receipts or net profits 53 derived from the operation of such game. 54 3. No authorized organization licensed under the provisions of this 55 title shall purchase, lease, or receive any supplies or equipment 56 specifically designed or adapted for use in the conduct of games ofS. 2009 131 A. 3009 1 chance from other than a supplier licensed by the commission or from 2 another authorized organization. Lease terms and conditions shall be 3 subject to rules and regulations of the commission. The provisions of 4 this title shall not be construed to authorize or permit an authorized 5 organization to engage in the business of leasing games of chance, 6 supplies or equipment. No organization shall purchase bell jar tickets, 7 or deals of bell jar tickets, from any other person or organization 8 other than those specifically authorized under section fifteen hundred 9 seventy-six of this title. 10 4. The entire net proceeds of any game of chance shall be devoted 11 exclusively to the lawful purposes of the organization permitted to 12 conduct the same and the net proceeds of any rental derived therefrom 13 shall be devoted exclusively to the lawful purposes of the authorized 14 games of chance lessor. 15 5. (a) No single prize awarded by games of chance other than raffle 16 shall exceed the sum or value of three hundred dollars, except that for 17 merchandise wheels, no single prize shall exceed the sum or value of two 18 hundred fifty dollars, and for bell jar, no single prize shall exceed 19 the sum or value of one thousand dollars. 20 (b) No single prize awarded by raffle shall exceed the sum or value of 21 three hundred thousand dollars. 22 (c) No single wager shall exceed six dollars and for bell jars, coin 23 boards or merchandise boards, no single prize shall exceed one thousand 24 dollars, provided, however, that such limitation shall not apply to the 25 amount of money or value paid by the participant in a raffle in return 26 for a ticket or other receipt. 27 (d) For coin boards and merchandise boards, the value of a prize shall 28 be determined by the cost of such prize to the authorized organization 29 or, if donated, the fair market value of such prize. 30 6. (a) No authorized organization shall award a series of prizes 31 consisting of cash or of merchandise with an aggregate value in excess 32 of: 33 (1) ten thousand dollars during the successive operations of any one 34 merchandise wheel; and 35 (2) six thousand dollars during the successive operations of any bell 36 jar, coin board or merchandise board. 37 (b) No series of prizes awarded by raffle shall have an aggregate 38 value in excess of five hundred thousand dollars. 39 (c) For coin boards and merchandise boards, the value of a prize shall 40 be determined by its cost to the authorized organization or, if donated, 41 its fair market value. 42 7. In addition to merchandise wheels, raffles and bell jars, no more 43 than five other single types of games of chance shall be conducted 44 during any one license period. 45 8. (a) Except for merchandise wheels and raffles, no series of prizes 46 on any one occasion shall aggregate more than four hundred dollars when 47 the licensed authorized organization conducts five single types of games 48 of chance during any one license period. Except for merchandise wheels, 49 raffles and bell jars, no series of prizes on any one occasion shall 50 aggregate more than five hundred dollars when the licensed authorized 51 organization conducts fewer than five single types of games of chance, 52 exclusive of merchandise wheels, raffles and bell jars, during any one 53 license period. 54 (b) No authorized organization shall award by raffle prizes with an 55 aggregate value in excess of three million dollars during any one 56 license period.S. 2009 132 A. 3009 1 9. Except for the limitations on the sum or value for single prizes 2 and series of prizes, no limit shall be imposed on the sum or value of 3 prizes awarded to any one participant during any occasion or any license 4 period. 5 10. (a) No person except a bona fide member of the licensed authorized 6 organization shall participate in the management of such games. 7 (b) No person except a bona fide member of the licensed authorized 8 organization, its auxiliary or affiliated organization, shall partic- 9 ipate in the operation of such game, as set forth in section fifteen 10 hundred sixty-five of this title. 11 11. No person shall receive any remuneration for participating in the 12 management or operation of any such game. 13 12. No authorized organization shall extend credit to a person to 14 participate in playing a game of chance. 15 13. (a) No game of chance, other than a raffle that complies with 16 paragraph (b) of this subdivision, shall be conducted on other than the 17 premises of an authorized organization or an authorized games of chance 18 lessor. 19 (b) Raffle tickets may be sold to the public outside the premises of 20 an authorized organization or an authorized games of chance lessor if 21 such sales occur in a municipality that: 22 (1) has passed a local law, ordinance or resolution in accordance with 23 sections fifteen hundred fifty-one and fifteen hundred fifty-two of this 24 title approving the conduct of games of chance; 25 (2) is located in the county in which the municipality issuing the 26 raffle license is located or in a county that is contiguous to the coun- 27 ty in which the municipality issuing the raffle license is located; and 28 (3) has not objected to such sales after the commission gives notice 29 to such municipality of an authorized organization's request to sell 30 such raffle tickets in such municipality. 31 (c) The commission may by regulation prescribe the advance notice an 32 authorized organization must provide to the commission in order to take 33 advantage of the provisions of paragraph (b) of this subdivision, forms 34 in which such a request shall be made and the time period in which a 35 municipality must communicate an objection to the commission. 36 (d) No sale of raffle tickets shall be made more than one hundred 37 eighty days prior to the date scheduled for the occasion at which the 38 raffle will be conducted. 39 (e) The winner of any single prize in a raffle shall not be required 40 to be present at the time such raffle is conducted. 41 14. No person licensed to manufacture, distribute or sell games of 42 chance supplies or equipment, or their agents, shall conduct, partic- 43 ipate in, or assist in the conduct of games of chance. Nothing herein 44 shall prohibit a licensed distributor from selling, offering for sale or 45 explaining a product to an authorized organization or installing or 46 servicing games of chance equipment upon the premises of games of chance 47 licensees. 48 15. The unauthorized conduct of a game of chance shall constitute and 49 be punishable as a misdemeanor. 50 16. No coins or merchandise from a coin board or merchandise board 51 shall be redeemable or convertible into cash directly or indirectly by 52 the authorized organization. 53 17. No game of chance shall involve wagering of money by one player 54 against another player. 55 § 1555. Authorized supplier of games of chance equipment. 1. No 56 person, firm, partnership, corporation or organization shall sell orS. 2009 133 A. 3009 1 distribute supplies or equipment specifically designed or adapted for 2 use in conduct of games of chance without having first obtained a 3 license therefor upon written application made, verified and filed with 4 the commission in the form prescribed by the rules and regulations of 5 the commission. As a part of the commission's determination concerning 6 the applicant's suitability for licensing as a games of chance supplier, 7 the commission shall require the applicant to furnish to the commission 8 two sets of fingerprints. Such fingerprints shall be submitted to the 9 division of criminal justice services for a state criminal history 10 record check, as defined in subdivision one of section three thousand 11 thirty-five of the education law, and may be submitted to the federal 12 bureau of investigation for a national criminal history record check. 13 Manufacturers of bell jar tickets shall be considered suppliers of such 14 equipment. In each such application for a license under this section 15 shall be stated the name and address of the applicant; the names and 16 addresses of its officers, directors, shareholders or partners; the 17 amount of gross receipts realized on the sale and rental of games of 18 chance supplies and equipment to duly licensed authorized organizations 19 during the last preceding calendar or fiscal year, and such other infor- 20 mation as shall be prescribed by such rules and regulations. The fee for 21 such license shall be a sum equal to an amount established by commission 22 regulation plus an amount equal to two percent of the gross sales and 23 rentals, if any, of games of chance equipment and supplies to authorized 24 organizations or authorized games of chance lessors by the applicant 25 during the preceding calendar year, or fiscal year if the applicant 26 maintains his accounts on a fiscal year basis. No license granted 27 pursuant to the provisions of this section shall be effective for a 28 period of more than one year. 29 2. The following shall be ineligible for such a license: 30 (a) a person convicted of a crime if there is a direct relationship 31 between one or more of the previous criminal offenses and the integrity 32 of charitable gaming, considering the factors set forth in section seven 33 hundred fifty-three of the correction law; 34 (b) a person who is or has been a professional gambler or gambling 35 promoter or who for other reasons is not of good moral character; 36 (c) a public officer or employee; 37 (d) an authorized games of chance lessor; or 38 (e) a firm or corporation in which a person defined in subparagraph 39 (a), (b), (c) or (d) of this subdivision has greater than a ten percent 40 proprietary, equitable or credit interest or in which such a person is 41 active or employed. 42 3. The commission shall have power to examine or cause to be examined 43 the books and records of any applicant for a license under this section. 44 Any information so received shall not be disclosed except so far as may 45 be necessary for the purpose of carrying out the provisions of this 46 title. 47 4. Any solicitation of an organization licensed to conduct games of 48 chance, to purchase or induce the purchase of games of chance supplies 49 and equipment, other than by a person licensed or otherwise authorized 50 pursuant to this section, shall constitute a violation of this section. 51 5. Any person who willfully makes any material false statement in any 52 application for a license authorized to be issued under this section or 53 who willfully violates any of the provisions of this section or of any 54 license issued hereunder shall be guilty of a misdemeanor and, in addi- 55 tion to the penalties in such case made and provided, shall forfeit anyS. 2009 134 A. 3009 1 license issued to him, her or it under this section and be ineligible to 2 apply for a license under this section for one year thereafter. 3 6. At the end of such period specified in the license, a recapitu- 4 lation shall be made as between the licensee and the commission in 5 respect of the gross sales and rentals actually recorded during that 6 period and the fee paid therefor, and any deficiency of fee thereby 7 shown to be due shall be paid by the licensee and any excess of fee 8 thereby shown to have been paid shall be credited to said licensee in 9 such manner as the commission by rules and regulations shall prescribe. 10 § 1556. Declaration of state's exemption from operation of provisions 11 of 15 U.S.C. § 1172. Pursuant to section two of an Act of Congress of 12 the United States entitled "An act to prohibit transportation of gambl- 13 ing devices in interstate and foreign commerce," approved January 14 second, nineteen hundred fifty-one, being chapter 1194, 64 Stat. 1134, 15 and also designated as 15 U.S.C. §§ 1171-1177, the state of New York, 16 acting by and through the duly elected and qualified members of its 17 legislature, does hereby, in accordance with and in compliance with the 18 provisions of section two of said Act of Congress, declare and proclaim 19 that it is exempt from the provisions of section two of said Act of 20 Congress. 21 § 1557. Legal shipments of gaming devices into New York state. All 22 shipments into this state of gaming devices, excluding slot machines and 23 coin operated gambling devices, as defined in subdivision seven-a of 24 section 225.00 of the penal law, the registering, recording and labeling 25 of which has been duly had by the manufacturer or dealer thereof in 26 accordance with sections three and four of an Act of Congress of the 27 United States entitled "An act to prohibit transportation of gambling 28 devices in interstate and foreign commerce," approved January second, 29 nineteen hundred fifty-one, being chapter 1194, 64 Stat. 1134, and also 30 designated as 15 U.S.C. §§ 1171-1177, shall be deemed legal shipments 31 thereof into this state. 32 § 1558. Application for license. 1. To conduct games of chance. (a) 33 Each applicant for a license shall, after obtaining an identification 34 number from the commission, file with the clerk or department, an appli- 35 cation therefor in a form to be prescribed by the commission, duly 36 executed and verified, in which shall be stated: 37 (1) the name and address of the applicant together with sufficient 38 facts relating to its incorporation and organization to enable such 39 clerk or department, as the case may be, to determine whether or not it 40 is a bona fide authorized organization; 41 (2) the names and addresses of its officers; the place or places 42 where, the date or dates and the time or times when the applicant 43 intends to conduct games under the license applied for; 44 (3) the amount of rent to be paid or other consideration to be given 45 directly or indirectly for each licensed period for use of the premises 46 of an authorized games of chance lessor; 47 (4) all other items of expense intended to be incurred or paid in 48 connection with the holding, operating and conducting of such games of 49 chance and the names and addresses of the persons to whom, and the 50 purposes for which, they are to be paid; 51 (5) the purposes to which the entire net proceeds of such games are to 52 be devoted and in what manner; that no commission, salary, compensation, 53 reward or recompense will be paid to any person for conducting such game 54 or games or for assisting therein except as in this title otherwise 55 provided; and such other information as shall be prescribed by such 56 rules and regulations; andS. 2009 135 A. 3009 1 (6) the name of each single type of game of chance to be conducted 2 under the license applied for and the number of merchandise wheels and 3 raffles, if any, to be operated. 4 (b) In each application there shall be designated not less than four 5 bona fide members of the applicant organization under whom the game or 6 games of chance will be managed and to the application shall be appended 7 a statement executed by the members so designated, that they will be 8 responsible for the management of such games in accordance with the 9 terms of the license, the rules and regulations of the commission, this 10 title and the applicable local laws or ordinances. 11 2. Authorized games of chance lessor. Each applicant for a license to 12 lease premises to a licensed organization for the purposes of conducting 13 games of chance therein shall file with the clerk or department an 14 application therefor, in a form to be prescribed by the commission duly 15 executed and verified, which shall set forth: 16 (a) the name and address of the applicant; 17 (b) designation and address of the premises intended to be covered by 18 the license sought; 19 (c) a statement that the applicant in all respects conforms with the 20 specifications contained in the definition of "authorized organization" 21 set forth in section fifteen hundred of this article; and 22 (d) a statement of the lawful purposes to which the net proceeds from 23 any rental are to be devoted by the applicant and such other information 24 as shall be prescribed by the commission. 25 3. In counties outside the city of New York, municipalities may, 26 pursuant to section fifteen hundred fifty-two of this title, adopt an 27 ordinance providing that an authorized organization having obtained an 28 identification number from the commission, and having applied for no 29 more than one license to conduct games of chance during the period not 30 less than twelve nor more than eighteen months immediately preceding, 31 may file with the clerk or department a summary application in a form to 32 be prescribed by the commission duly executed and verified, containing 33 the names and addresses of the applicant organization and its officers, 34 the date, time and place or places where the applicant intends to 35 conduct games under the license applied for, the purposes to which the 36 entire net proceeds of such games are to be devoted and the information 37 and statement required by paragraph (b) of subdivision one of this 38 section in lieu of the application required under subdivision one of 39 this section. 40 4. (a) Notwithstanding and in lieu of the licensing requirements set 41 forth in this title, an authorized organization defined in section 42 fifteen hundred of this article may file a verified statement, for which 43 no fee shall be required, with the clerk or department and the commis- 44 sion attesting that such organization shall derive net proceeds or net 45 profits from raffles in an amount less than thirty thousand dollars 46 during one occasion or part thereof at which raffles are to be 47 conducted. Such statement shall be on a single-page form prescribed by 48 the commission, and shall be deemed a license to conduct raffles: 49 (1) under this title; and 50 (2) within the municipalities in which the authorized organization is 51 domiciled that have passed a local law, ordinance or resolution in 52 accordance with sections fifteen hundred fifty-one and fifteen hundred 53 fifty-two of this title approving the conduct of games of chance, and in 54 municipalities that have passed a local law, ordinance or resolution in 55 accordance with sections fifteen hundred fifty-one and fifteen hundred 56 fifty-two of this title approving the conduct of games of chance thatS. 2009 136 A. 3009 1 are located in the county in which the municipality issuing the license 2 is located and in the counties that are contiguous to the county in 3 which the municipality issuing the raffle license is located, provided 4 those municipalities have authorized the licensee, in writing, to sell 5 such raffle tickets therein. 6 (b) An organization that has filed a verified statement with the clerk 7 or department and the commission attesting that such organization shall 8 derive net proceeds or net profits from raffles in an amount less than 9 thirty thousand dollars during one occasion or part thereof that in fact 10 derives net proceeds or net profits exceeding thirty thousand dollars 11 during any one occasion or part thereof shall be required to obtain a 12 license as required by this title and shall be subject to the provisions 13 of section fifteen hundred sixty-seven of this title. 14 § 1559. Raffles; license not required. 1. Notwithstanding the licens- 15 ing requirements set forth in this title and their filing requirements 16 set forth in subdivision four of section fifteen hundred fifty-eight of 17 this title, an authorized organization may conduct a raffle without 18 complying with such licensing requirements or such filing requirements, 19 provided, that such organization shall derive net proceeds from raffles 20 in an amount less than five thousand dollars during the conduct of one 21 raffle and shall derive net proceeds from raffles in an amount less than 22 thirty thousand dollars during one calendar year. 23 2. No person under the age of eighteen shall be permitted to play, 24 operate or assist in any raffle conducted pursuant to this section. 25 3. No raffle shall be conducted pursuant to this section except within 26 a municipality in which the authorized organization is domiciled that 27 has passed a local law, ordinance or resolution in accordance with 28 sections fifteen hundred fifty-one and fifteen hundred fifty-two of this 29 title approving the conduct of games of chance, and in municipalities 30 that have passed a local law, ordinance or resolution in accordance with 31 sections fifteen hundred fifty-one and fifteen hundred fifty-two of this 32 title approving the conduct of games of chance that are located within 33 the county or contiguous to the county in which the organization is 34 domiciled. 35 § 1560. Investigation; matters to be determined; issuance of license; 36 fees; duration of license. 1. The clerk or department shall make an 37 investigation of the qualifications of each applicant and the merits of 38 each application, with due expedition after the filing of the applica- 39 tion. 40 (a) Issuance of licenses to conduct games of chance. If such clerk or 41 department determines: 42 (1) that the applicant is duly qualified to be licensed to conduct 43 games of chance under this title; 44 (2) that the member or members of the applicant designated in the 45 application to manage games of chance are bona fide active members of 46 the applicant and are persons of good moral character and have never 47 been convicted of a crime if there is a direct relationship between one 48 or more of the previous criminal offenses and the integrity of charita- 49 ble gaming, considering the factors set forth in section seven hundred 50 fifty-three of the correction law; 51 (3) that such games are to be conducted in accordance with the 52 provisions of this title and in accordance with the rules and regu- 53 lations of the commission and applicable local laws or ordinances and 54 that the proceeds thereof are to be disposed of as provided by this 55 title; andS. 2009 137 A. 3009 1 (4) is satisfied that no commission, salary, compensation, reward or 2 recompense whatsoever will be paid or given to any person managing, 3 operating or assisting therein except as in this title otherwise 4 provided, then such clerk or department shall issue a license to the 5 applicant for the conduct of games of chance upon payment of a license 6 fee in an amount established by regulation of the commission for each 7 license period. 8 (b) Issuance of licenses to authorized games of chance lessors. If 9 such clerk or department determines: 10 (1) that the applicant seeking to lease premises for the conduct of 11 games of chance to a games of chance licensee is duly qualified to be 12 licensed under this title; 13 (2) that the applicant satisfies the requirements for an authorized 14 organization as defined in section fifteen hundred of this article; 15 (3) that the applicant has filed its proposed rent for each license 16 period; and 17 (4) that such proposed rent is fair and reasonable; 18 (5) that the net proceeds from any rental will be devoted to the 19 lawful purposes of the applicant; 20 (6) that there is no diversion of the funds of the proposed lessee 21 from the lawful purposes as defined in this title; and 22 (7) that such leasing of premises for the conduct of such games is to 23 be in accordance with the provisions of this title, with the rules and 24 regulations of the commission and applicable local laws and ordinances, 25 then such clerk or department shall issue a license permitting the 26 applicant to lease said premises for the conduct of such games to the 27 games of chance licensee or licensees specified in the application 28 during the period therein specified or such shorter period as such clerk 29 or department determines, but not to exceed twelve license periods 30 during a calendar year, upon payment of a license fee in an amount 31 established by the regulations of the commission. Nothing herein shall 32 be construed to require the applicant to be licensed under this title to 33 conduct games of chance. 34 (c) Issuance of license upon summary application. If, upon the basis 35 of a summary application as prescribed under subdivision three of 36 section fifteen hundred fifty-eight of this title, the clerk or depart- 37 ment determines that the applicant is duly qualified to be licensed to 38 conduct games of chance under this title, said clerk or department shall 39 forthwith issue said license. In the event the clerk or department has 40 reason to believe that the applicant is not so qualified the applicant 41 shall be directed to file an application pursuant to subdivision one of 42 section fifteen hundred fifty-eight of this title. 43 2. On or before the last day of each month, the treasurer of the muni- 44 cipality in which the licensed property is located shall transmit to the 45 state comptroller a sum equal to fifty percent of all authorized games 46 of chance lessor license fees and a sum established by regulation of the 47 commission per license period for the conduct of games of chance 48 collected by such clerk or department pursuant to this section during 49 the preceding calendar month. 50 3. No license shall be issued under this section that is effective for 51 a period of more than one year. 52 § 1561. Hearing; amendment of license. 1. No application for the issu- 53 ance of a license to conduct games of chance or lease premises to an 54 authorized organization shall be denied by the clerk or department, 55 until after a hearing, held on due notice to the applicant, at which theS. 2009 138 A. 3009 1 applicant shall be entitled to be heard upon the qualifications of the 2 applicant and the merits of the application. 3 2. Any license issued under this title may be amended, upon applica- 4 tion made to such clerk or department that issued it, if the subject 5 matter of the proposed amendment could lawfully and properly have been 6 included in the original license and upon payment of such additional 7 license fee, if any, as would have been payable if it had been so 8 included. 9 § 1562. Form and contents of license; display of license. 1. Each 10 license to conduct games of chance shall be in such form as shall be 11 prescribed in the rules and regulations of the commission and shall 12 contain: 13 (a) a statement of the name and address of the licensee, of the names 14 and addresses of the members of the licensee under whom the games will 15 be managed; 16 (b) a statement of the place or places where, and the date or dates 17 and time or times when, such games are to be conducted; 18 (c) a statement of the purposes to which the entire net proceeds of 19 such games are to be devoted; 20 (d) the name of each single type of game to be conducted under the 21 license and the number of merchandise wheels and raffles, if any, to be 22 operated; and 23 (e) any other information that may be required by the rules and regu- 24 lations of the commission to be contained therein. 25 2. Each license issued for the conduct of any games shall be displayed 26 conspicuously at the place where such games are to be conducted at all 27 times during the conduct thereof. 28 3. Each license to lease premises for conducting games of chance shall 29 be in such form as shall be prescribed in the rules and regulations of 30 the commission and shall contain a statement of the name and address of 31 the licensee and the address of the leased premises, the amount of 32 permissible rent and any information that may be required by said rules 33 and regulations to be contained therein, and each such license shall be 34 conspicuously displayed upon such premises at all times during the 35 conduct of games of chance. 36 § 1563. Control and supervision; suspension of identification numbers 37 and licenses; inspections of premises. 1. The municipal officer or 38 department shall have and exercise rigid control and close supervision 39 over all games of chance conducted under such license, to the end that 40 the same are conducted fairly in accordance with the provisions of such 41 license, the provisions of the rules and regulations promulgated by the 42 commission and the provisions of this title. Such municipal officer or 43 department and the commission shall have the power and the authority to 44 suspend temporarily any license issued by the clerk or department and/or 45 impose fines for violations not to exceed one thousand dollars. Tempo- 46 rary suspension of licenses shall be followed promptly by a hearing, and 47 after notice and hearing, the clerk, department or the commission may 48 suspend or revoke the same and declare the violator ineligible to apply 49 for a license for a period not exceeding twelve months thereafter. Any 50 fines tendered to the clerk, department or the commission shall not be 51 paid from funds derived from the conduct of games of chance. The munici- 52 pal officer and the department or the commission shall additionally have 53 the right of entry, by their respective municipal officers and agents, 54 at all times into any premises where any game of chance is being 55 conducted or where it is intended that any such game shall be conducted, 56 or where any equipment being used or intended to be used in the conductS. 2009 139 A. 3009 1 thereof is found, for the purpose of inspecting the same. Upon suspen- 2 sion or revocation of any license or upon declaration of ineligibility 3 to apply for a license, the commission may suspend or revoke the iden- 4 tification number issued pursuant to section fifteen hundred fifty-three 5 of this title. An agent of the appropriate municipal officer or depart- 6 ment shall make an on-site inspection during the conduct of all games of 7 chance licensed pursuant to this title. 8 2. A municipality may, by local law or ordinance enacted pursuant to 9 the provisions of section fifteen hundred fifty-two of this title, 10 provide that the powers and duties set forth in subdivision one of this 11 section shall be exercised by the chief law enforcement officer of the 12 county. In the event a municipality exercises this option, the fees 13 provided for by subdivision two of section fifteen hundred sixty-seven 14 of this title shall be remitted to the chief fiscal officer of the coun- 15 ty. 16 3. Service of alcoholic beverages. Subject to the applicable 17 provisions of the alcoholic beverage control law, beer may be offered 18 for sale during the conduct of games of chance on games of chance prem- 19 ises as such premises are defined in section fifteen hundred of this 20 article; provided, however, that nothing herein shall be construed to 21 limit the offering for sale of any other alcoholic beverage in areas 22 other than the games of chance premises or the sale of any other alco- 23 holic beverage in premises where only the games of chance known as bell 24 jars or raffles are conducted. 25 § 1564. Frequency of games. 1. No game or games of chance shall be 26 conducted under any license issued under this title more often than 27 twelve times in any calendar year. No particular premises shall be used 28 for the conduct of games of chance on more than twenty-four license 29 periods during any one calendar year. 30 2. Games of chance other than bell jars and raffles may be conducted 31 at any time, unless the games of chance license provides otherwise. No 32 license may restrict the times in which bell jars or raffles are 33 conducted, subject to the limitations on the license period for such 34 games set forth in subdivision eighteen of section fifteen hundred of 35 this article. 36 § 1565. Persons operating games; equipment; expenses; compensation. 1. 37 No person shall operate any game of chance under any license issued 38 under this title except a bona fide member of the authorized organiza- 39 tion to which the license is issued, or a bona fide member of an organ- 40 ization or association that is an auxiliary to the licensee or a bona 41 fide member of an organization or association of which such licensee is 42 an auxiliary or a bona fide member of an organization or association 43 that is affiliated with the licensee by being, with it, auxiliary to 44 another organization or association. Nothing herein shall be construed 45 to limit the number of games of chance licensees for whom such persons 46 may operate games of chance nor to prevent non-members from assisting 47 the licensee in any activity other than managing or operating games. For 48 the purpose of the sale of tickets for the game of raffle, the term 49 "operate" shall not include the sale of such tickets by persons of 50 lineal or collateral consanguinity to members of an authorized organiza- 51 tion licensed to conduct a raffle. 52 2. No game of chance shall be conducted with any equipment except such 53 as shall be owned or leased by the authorized organization so licensed 54 or used without payment of any compensation therefor by the licensee. 55 However, in no event shall bell jar tickets be transferred from oneS. 2009 140 A. 3009 1 authorized organization to another, with or without payment of any 2 compensation thereof. 3 3. The head or heads of the authorized organization shall upon request 4 certify, under oath, that the persons operating any game of chance are 5 bona fide members of such authorized organization, auxiliary or affil- 6 iated organization. 7 4. Upon request by a municipal officer or the department any such 8 person involved in such games of chance shall certify that he or she has 9 no criminal record or shall disclose previous criminal offenses for 10 consideration of the factors set forth in section seven hundred fifty- 11 three of the correction law. 12 5. No items of expense shall be incurred or paid in connection with 13 the conducting of any game of chance pursuant to any license issued 14 under this title except those that are reasonable and are necessarily 15 expended for games of chance supplies and equipment, prizes, security 16 personnel, stated rental if any, bookkeeping or accounting services 17 according to a schedule of compensation prescribed by the commission, 18 janitorial services and utility supplies if any, and license fees, and 19 the cost of bus transportation, if authorized by such clerk or depart- 20 ment. 21 6. No commission, salary, compensation, reward or recompense shall be 22 paid or given to any person for the sale or assisting with the sale of 23 raffle tickets. 24 § 1566. Charge for admission and participation; amount of prizes; 25 award of prizes. 1. A fee may be charged by any licensee for admission 26 to any game or games of chance conducted under any license issued under 27 this title. The clerk or department may in its discretion fix a minimum 28 fee. 29 2. With the exception of bell jars, coin boards, seal cards, merchan- 30 dise boards and raffles, every winner shall be determined and every 31 prize shall be awarded and delivered within the same calendar day as 32 that upon which the game was played. 33 3. A player may purchase a chance with cash or, if the authorized 34 organization wishes, with a personal check, credit card or debit card. 35 § 1567. Statement of receipts and expenses; additional license fees. 36 1. Within seven days after the conclusion of any license period other 37 than a license period for a raffle, or as otherwise prescribed by the 38 commission, the authorized organization that conducted the same, and its 39 members who were in charge thereof, and when applicable the authorized 40 games of chance lessor that rented its premises therefor, shall each 41 furnish to the clerk or department a statement subscribed by the member 42 in charge and affirmed by him or her as true, under the penalties of 43 perjury, showing the amount of the gross receipts derived therefrom and 44 each item of expense incurred, or paid, and each item of expenditure 45 made or to be made other than prizes, the name and address of each 46 person to whom each such item of expense has been paid, or is to be 47 paid, with a detailed description of the merchandise purchased or the 48 services rendered therefor, the net proceeds derived from the conduct of 49 games of chance during such license period, and the use to which such 50 proceeds have been or are to be applied. It shall be the duty of each 51 licensee to maintain and keep such books and records as may be necessary 52 to substantiate the particulars of each such statement. 53 2. Within thirty days after the conclusion of an occasion during which 54 a raffle was conducted, the authorized organization conducting such 55 raffle and the members in charge of such raffle, and, when applicable, 56 the authorized games of chance lessor that rented its premises therefor,S. 2009 141 A. 3009 1 shall each furnish to the clerk or department a statement on a form 2 prescribed by the commission, subscribed by the member in charge and 3 affirmed by him or her as true, under the penalties of perjury, showing: 4 (a) the number of tickets printed; 5 (b) the number of tickets sold; 6 (c) the price and the number of tickets returned to or retained by the 7 authorized organization as unsold; 8 (d) a description and statement of the fair market value for each 9 prize actually awarded; 10 (e) the amount of the gross receipts derived therefrom; 11 (f) each item of expenditure made or to be made other than prizes; 12 (g) the name and address of each person to whom each such item of 13 expense has been paid, or is to be paid; 14 (h) a detailed description of the merchandise purchased or the 15 services rendered therefor; 16 (i) the net proceeds derived from the raffle at such occasion; and 17 (j) the use to which the proceeds have been or are to be applied. It 18 shall be the duty of each licensee to maintain and keep such books and 19 records as may be necessary to substantiate the particulars of each such 20 statement, provided, however, where the cumulative net proceeds or net 21 profits derived from the conduct of a raffle or raffles are less than 22 thirty thousand dollars during any one occasion, in such case, the 23 reporting requirement shall be satisfied by the filing within thirty 24 days of the conclusion of such occasion a verified statement prescribed 25 by the commission attesting to the amount of such net proceeds or net 26 profits and the distribution thereof for lawful purposes with the clerk 27 or department and a copy with the commission, and provided further, 28 however, where the cumulative net proceeds derived from the conduct of a 29 raffle or raffles are less than five thousand dollars during any one 30 occasion and less than thirty thousand dollars during one calendar year, 31 no reporting shall be required. 32 3. Any authorized organization required to file an annual report with 33 the secretary of state pursuant to article seven-A of the executive law 34 or the attorney general pursuant to article eight of the estates, powers 35 and trusts law shall include with such annual report a copy of the 36 statement required to be filed with the clerk or department pursuant to 37 subdivision one or two of this section. 38 4. Upon the filing of such statement of receipts pursuant to subdivi- 39 sion one or two of this section, the authorized organization furnishing 40 the same shall pay to the clerk or department as and for an additional 41 license fee a sum based upon the reported net proceeds, if any, for the 42 license period, or in the case of raffles, for the occasion covered by 43 such statement and determined in accordance with such schedule as shall 44 be established from time to time by the commission to defray the actual 45 cost to municipalities or counties of administering the provisions of 46 this title, but such additional license fee shall not exceed five 47 percent of the net proceeds for such license period. The provisions of 48 this subdivision shall not apply to the net proceeds from the sale of 49 bell jar tickets. No fee shall be required where the net proceeds or net 50 profits derived from the conduct of a raffle or raffles are less than 51 thirty thousand dollars during any one occasion. 52 § 1568. Examination of books and records; examination of officers and 53 employees; disclosure of information. The clerk or department and the 54 commission shall have power to examine or cause to be examined the books 55 and records of:S. 2009 142 A. 3009 1 1. any authorized organization that is or has been licensed to conduct 2 games of chance, so far as they may relate to games of chance, including 3 the maintenance, control and disposition of net proceeds derived from 4 games of chance or from the use of its premises for games of chance, and 5 to examine any manager, officer, director, agent, member or employee 6 thereof under oath in relation to the conduct of any such game under any 7 such license, the use of its premises for games of chance, or the dispo- 8 sition of net proceeds derived from games of chance, as the case may be; 9 or 10 2. any authorized games of chance lessor, so far as such books and 11 records may relate to leasing premises for games of chance, and to exam- 12 ine such lessor or any manager, officer, director, agent or employee 13 thereof under oath in relation to such leasing. Any information so 14 received shall not be disclosed except so far as may be necessary for 15 the purpose of carrying out the provisions of this title. 16 § 1569. Appeals for the decision of a municipal officer, clerk or 17 department to the commission. Any applicant for, or holder of, any 18 license issued or to be issued under this title aggrieved by any action 19 of a municipal officer, clerk or department, to which such application 20 has been made or by which such license has been issued, may appeal to 21 the commission from the determination of said municipal officer, clerk 22 or department by filing with such municipal officer, clerk or department 23 a written notice of appeal within thirty days after the determination or 24 action appealed from, and upon the hearing of such appeal, the evidence, 25 if any, taken before such municipal officer, clerk or department and any 26 additional evidence may be produced and shall be considered in arriving 27 at a determination of the matters in issue, and the action of the 28 commission upon said appeal shall be binding upon such municipal offi- 29 cer, clerk or department and all parties to said appeal. 30 § 1570. Exemption from prosecution. No person, firm, partnership, 31 corporation or organization lawfully conducting, or participating in the 32 conduct of, games of chance, or permitting the conduct upon any premises 33 owned or leased by him, her or it under any license lawfully issued 34 pursuant to this title, shall be liable to prosecution or conviction for 35 violation of any provision of article two hundred twenty-five of the 36 penal law or any other law or ordinance to the extent that such conduct 37 is specifically authorized by this title, but this immunity shall not 38 extend to any person or corporation knowingly conducting or participat- 39 ing in the conduct of games of chance under any license obtained by any 40 false pretense or by any false statement made in any application for 41 license or otherwise, or permitting the conduct upon any premises owned 42 or leased by him, her or it of any game of chance conducted under any 43 license known to him, her or it to have been obtained by any such false 44 pretense or statement. 45 § 1571. Offenses; forfeiture of license; ineligibility to apply for 46 license. Any person, firm, partnership, corporation or organization who 47 or that shall: 48 1. make any material false statement in any application for any 49 license authorized to be issued under this title; 50 2. pay or receive, for the use of any premises for conducting games of 51 chance, a rental in excess of the amount specified as the permissible 52 rent in the license provided for in subdivision three of section fifteen 53 hundred sixty-two of this title; 54 3. fail to keep such books and records as shall fully and truly record 55 all transactions connected with the conducting of games of chance or the 56 leasing of premises to be used for the conduct of games of chance;S. 2009 143 A. 3009 1 4. falsify or make any false entry in any books or records so far as 2 they relate in any manner to the conduct of games of chance, to the 3 disposition of the proceeds thereof and to the application of the rents 4 received by any authorized organization; 5 5. divert or pay any portion of the net proceeds of any game of chance 6 to any person, firm, partnership, corporation, except in furtherance of 7 one or more of the lawful purposes defined in this title; shall be guil- 8 ty of a misdemeanor and shall forfeit any license issued under this 9 title and be ineligible to apply for a license under this title for at 10 least one year thereafter. 11 § 1572. Unlawful games of chance. 1. Any person, association, corpo- 12 ration or organization holding, operating or conducting a game or games 13 of chance is guilty of a misdemeanor, except when operating, holding or 14 conducting: 15 (a) in accordance with a valid license issued pursuant to this title; 16 (b) on behalf of a bona fide organization of persons sixty years of 17 age or over, commonly referred to as senior citizens, solely for the 18 purpose of amusement and recreation of its members where: 19 (1) the organization has applied for and received an identification 20 number from the commission; 21 (2) no player or other person furnishes anything of value for the 22 opportunity to participate; 23 (3) the prizes awarded or to be awarded are nominal; 24 (4) no person other than a bona fide active member of the organization 25 participates in the conduct of the games; and 26 (5) no person is paid for conducting or assisting in the conduct of 27 the game or games; or 28 (c) a raffle pursuant to section fifteen hundred fifty-nine of this 29 title. 30 2. The provisions of this section shall apply to all municipalities 31 within this state, including those municipalities where this title is 32 inoperative. 33 § 1573. Title inoperative until adopted by voters. Except as provided 34 in section fifteen hundred seventy-two of this title, the provisions of 35 this title shall remain inoperative in any municipality unless and until 36 a proposition therefor submitted at a general or special election in 37 such municipality shall be approved by a vote of the majority of the 38 qualified electors in such municipality voting thereon. 39 § 1574. Amendment and repeal of local laws and ordinances. Any such 40 local law or ordinance may be amended, from time to time, or repealed by 41 the common council or other local legislative body of the municipality 42 that enacted it, by a two-thirds vote of such legislative body and such 43 amendment or repeal, as the case may be, may be made effective and oper- 44 ative not earlier than thirty days following the effective date of the 45 local law or ordinance effecting such amendment or repeal, as the case 46 may be, and the approval of a majority of the electors of such munici- 47 pality shall not be a condition prerequisite to the taking effect of 48 such local law or ordinance. 49 § 1575. Manufacturers of bell jars; reports and records. 1. Distrib- 50 ution; manufacturers. For business conducted in this state, manufactur- 51 ers licensed by the commission to sell bell jar tickets shall sell such 52 tickets only to distributors licensed by the commission. Manufacturers 53 of bell jar tickets, seal cards, merchandise boards and coin boards may 54 submit samples, artists' renderings or color photocopies of proposed 55 bell jar tickets, seal cards, merchandise boards, coin boards, payout 56 cards and flares for review and approval by the commission. Within thir-S. 2009 144 A. 3009 1 ty days of receipt of such sample or rendering, the commission shall 2 approve or deny such bell jar tickets. Following approval of a rendering 3 of a bell jar ticket, seal card, merchandise board or coin board by the 4 commission, the manufacturer shall submit to the commission a sample of 5 the printed bell jar ticket, seal card, merchandise board, coin board, 6 payout card and flare for such game. Such sample shall be submitted 7 prior to the sale of the game to any licensed distributor for resale in 8 this state. For coin boards and merchandise boards, nothing herein shall 9 require the submittal of actual coins or merchandise as part of the 10 approval process. Any licensed manufacturer who willfully violates the 11 provisions of this section shall: 12 (a) upon such first offense, have its license suspended for a period 13 of thirty days; 14 (b) upon such second offense, participate in a hearing to be conducted 15 by the commission, and surrender its license for such period as recom- 16 mended by the commission; and 17 (c) upon such third or subsequent offense, have its license suspended 18 for a period of one year and shall be guilty of a class E felony. Any 19 unlicensed manufacturer who violates the provisions of this section 20 shall be guilty of a class E felony. 21 2. Bar codes. The manufacturer shall affix to the flare of each bell 22 jar game a bar code that provides all information prescribed by the 23 commission and shall require that the bar code include the serial number 24 of the game the flare describes. A manufacturer shall also affix to the 25 outside of the container or wrapping containing a deal of bell jar tick- 26 ets a bar code providing all information prescribed by the commission 27 and containing the same information as the bar code affixed to the 28 flare. The commission may also prescribe additional bar code require- 29 ments. No person may alter the bar code that appears on the flare or on 30 the outside of the container or wrapping containing a deal of bell jar 31 tickets. Possession of a deal of bell jar tickets that has a bar code 32 different from the serial number of the deal inside the container or 33 wrapping as evidenced on the flare is prima facie evidence that the 34 possessor has altered the bar code on the container or wrapping. 35 3. Bell jar flares. (a) A manufacturer shall not ship or cause to be 36 shipped into this state any deal of bell jar tickets that does not have 37 its own individual flare as required for that deal by rule of the 38 commission. A person other than a licensed manufacturer shall not manu- 39 facture, alter, modify or otherwise change a flare for a deal of bell 40 jar tickets except as authorized by this title or rules and regulations 41 promulgated by the commission. 42 (b) The flare for each deal of bell jar tickets sold by a manufacturer 43 in this state shall be placed inside the wrapping of the deal that the 44 flare describes. 45 (c) The bar code affixed to the flare of each bell jar game shall bear 46 the serial number of such game as prescribed by the commission. 47 (d) The flare of each bell jar game shall have affixed a bar code that 48 provides: 49 (1) the game code; 50 (2) the serial number of the game; 51 (3) the name of the manufacturer; and 52 (4) other information the commission by rule may require. 53 The serial number included on the bar code shall be the same as the 54 serial number of the tickets included in the deal. A manufacturer who 55 manufactures a deal of bell jar tickets shall affix to the outside ofS. 2009 145 A. 3009 1 the container or wrapping containing the bell jar tickets the same bar 2 code that is affixed to the flare for that deal. 3 (e) No person shall alter the bar code that appears on the outside of 4 a container or wrapping containing a deal of bell jar tickets. 5 Possession of a deal of bell jar tickets that has a bar code different 6 from the bar code of the deal inside the container or wrapping is prima 7 facie evidence that the possessor has altered the bar code on the box. 8 4. Reports of sales. A manufacturer who sells bell jar tickets for 9 resale in this state shall file with the commission, on a form 10 prescribed by the commission, a report of all bell jar tickets sold to 11 distributors in the state. The report shall be filed quarterly on or 12 before the twentieth day of the month succeeding the end of the quarter 13 in which the sale was made. The commission may require that the report 14 be submitted via electronic media or electronic data transfer. 15 5. Inspection. The commission may inspect the premises, books, 16 records, and inventory of a manufacturer without notice during the 17 normal business hours of the manufacturer. 18 § 1576. Distributor of bell jars; reports and records. 1. Distrib- 19 ution; distributors. Any distributor licensed in accordance with section 20 fifteen hundred fifty-five of this title to distribute bell jar tickets 21 shall purchase bell jar tickets only from licensed manufacturers and may 22 manufacture coin boards and merchandise boards only as authorized in 23 subdivision two of this section. Licensed distributors of bell jar tick- 24 ets shall sell such tickets only to not-for-profit, charitable or reli- 25 gious organizations registered by the commission. Any licensed distribu- 26 tor who willfully violates the provisions of this section shall: 27 (a) upon such first offense, have its license suspended for a period 28 of thirty days; 29 (b) upon such second offense, participate in a hearing to be conducted 30 by the commission, and surrender its license for such period as recom- 31 mended by the commission; and 32 (c) upon such third or subsequent offense, have its license suspended 33 for a period of one year and shall be guilty of a class E felony. Any 34 unlicensed distributor who violates this section shall be guilty of a 35 class E felony. 36 2. Coin boards and merchandise boards. Distributors of bell jar tick- 37 ets may manufacture coin boards and merchandise boards only if such 38 boards have been approved by the commission and have a bar code affixed 39 to them setting forth all information required by the commission. Except 40 that for coin boards and merchandise boards, delineation of the prize or 41 prize value need not be included on the game ticket sold in conjunction 42 with a coin board or merchandise board. In lieu of such requirement, 43 the distributor shall be required to disclose the prize levels and the 44 number of winners at each level and shall print clearly on the game 45 ticket that a ticket holder may obtain the prize and prize value for 46 each prize level by referencing the flare. Such coin boards shall be 47 sold only by licensed distributors to licensed authorized organizations 48 registered by the commission in accordance with the provisions of this 49 title. 50 3. Business records. A distributor shall keep at each place of busi- 51 ness complete and accurate records for that place of business, including 52 itemized invoices of bell jar tickets held and purchased. The records 53 must show the names and addresses of purchasers, the inventory at the 54 close of each period for which a return is required, all bell jar tick- 55 ets on hand and other pertinent papers and documents relating to the 56 purchase, sale or disposition of bell jar tickets as may be required byS. 2009 146 A. 3009 1 the commission. Books, records, itemized invoices and other papers and 2 documents required by this section shall be kept for a period of at 3 least four years after the date of the documents, or the date of the 4 entries appearing in the records, unless the commission authorizes in 5 writing their destruction or disposal at an earlier date. A person who 6 violates this section shall be guilty of a misdemeanor. 7 4. Sales records. A distributor shall maintain a record of all bell 8 jar tickets that it sells. The record shall include, but need not be 9 limited to: 10 (a) the identity of the manufacturer from whom the distributor 11 purchased the product; 12 (b) the serial number of the product; 13 (c) the name, address and license or exempt permit number of the 14 organization or person to which the sale was made; 15 (d) the date of the sale; 16 (e) the name of the person who ordered the product; 17 (f) the name of the person who received the product; 18 (g) the type of product; 19 (h) the serial number of the product; 20 (i) the account number identifying the sale from the manufacturer to 21 distributor and the account number identifying the sale from the 22 distributor to the licensed organization; and 23 (j) the name, form number or other identifying information for each 24 game. 25 5. Invoices. A distributor shall supply with each sale of a bell jar 26 product an itemized invoice showing: 27 (a) the distributor's name and address; 28 (b) the purchaser's name, address, and license number; 29 (c) the date of the sale; 30 (d) the account number identifying the sale from the manufacturer to 31 distributor; 32 (e) the account number identifying the sale from the distributor to 33 the licensed organization; and 34 (f) the description of the deals, including the form number, the seri- 35 al number and the ideal gross from every deal of bell jar or similar 36 game. 37 6. Reports. A distributor shall report quarterly to the commission, on 38 a form prescribed by the commission, its sales of each type of bell jar 39 deal or tickets. This report shall be filed quarterly on or before the 40 twentieth day of the month succeeding the end of the quarter in which 41 the sale was made. The commission may require that a distributor submit 42 the quarterly report and invoices required by this section via electron- 43 ic media or electronic data transfer. 44 7. The commission may inspect the premises, books, records and inven- 45 tory of a distributor without notice during the normal business hours of 46 the distributor. 47 8. Certified physical inventory. The commission may, upon request, 48 require a distributor to furnish a certified physical inventory of all 49 bell jar tickets in stock. The inventory shall contain the information 50 requested by the commission. 51 § 1577. Transfer restrictions. Not-for-profit, charitable or religious 52 organizations authorized to sell bell jar tickets in accordance with 53 this title shall purchase bell jar tickets only from distributors 54 licensed by the commission. No not-for-profit, charitable or religious 55 organization shall sell, donate or otherwise transfer bell jar tickets 56 to any other not-for-profit, charitable or religious organization.S. 2009 147 A. 3009 1 § 1578. Bell jars compliance and enforcement. 1. In the case of bell 2 jars, the licensee, upon filing financial statements of bell jar oper- 3 ations, shall also tender to the commission a sum in the amount of five 4 percent of the net proceeds from the sale of bell jar tickets, seal 5 cards, merchandise boards and coin boards, if any, for that portion of 6 license period covered by such statement. 7 2. Unsold tickets of the bell jar deal shall be kept on file by the 8 selling organization for inspection by the commission for a period of 9 one year following the date upon which the relevant financial statement 10 was received by the commission. 11 3. One-half of one percent of the fee set forth in subdivision one of 12 this section received from authorized volunteer fire companies shall be 13 paid to the New York state emergency services revolving loan account 14 established pursuant to section ninety-seven-pp of the state finance 15 law. 16 4. The commission shall submit to the director of the division of the 17 budget an annual plan that details the amount of money the commission 18 deems necessary to maintain operations, compliance and enforcement of 19 the provisions of this title and the collection of the license fee 20 authorized by this section. Contingent upon the approval of the direc- 21 tor of the division of the budget, the commission shall pay into an 22 account, to be known as the bell jar collection account, under the joint 23 custody of the comptroller and the commission, the total amount of 24 license fees collected pursuant to this section. With the approval of 25 the director of the division of the budget, monies to be used to main- 26 tain the operations necessary to enforce the provisions of this title 27 and the collection of the license fee imposed by this section shall be 28 paid out of such account on the audit and warrant of the comptroller on 29 vouchers certified or approved by the director of the division of the 30 budget or the director's duly designated official. Those monies that are 31 not used to maintain operations necessary to enforce the provisions of 32 this title and the collection of the license fee authorized by this 33 section shall be paid out of such amount on the audit and warrant of the 34 state comptroller and shall be credited to the general fund. 35 § 3. Section 129 of the racing, pari-mutuel wagering and breeding law, 36 as added by section 1 of part A of chapter 60 of the laws of 2012, is 37 amended to read as follows: 38 § 129. Construction of other laws or provisions. Unless the context 39 [shall require] requires otherwise, the terms "division of the lottery", 40 "state quarter horse racing commission", "state racing commission", 41 "state harness racing commission", "state racing and wagering board" or 42 "board" wherever occurring in any of the provisions of this chapter or 43 of any other law, or, in any official books, records, instruments, rules 44 or papers, shall hereafter mean and refer to the state gaming commission 45 created by section one hundred two of this article. The provisions of 46 article three of this chapter shall be inapplicable to article two of 47 this chapter; and the provisions of such article two shall be inapplica- 48 ble to such article three, except that section two hundred thirty-one of 49 such article two shall apply to such article three. Unless the context 50 requires otherwise, any reference to "article 19-B of the executive law" 51 wherever occurring in any law, or, in any official books, records, 52 instruments, rules or papers, shall hereafter mean and refer to titles 53 one and two of article fifteen of this chapter. Unless the context 54 requires otherwise, any reference to "article 14-H of the general munic- 55 ipal law" wherever occurring in any law, or, in any official books, 56 records, instruments, rules or papers, shall hereafter mean and refer toS. 2009 148 A. 3009 1 titles one and three of article fifteen of this chapter. Unless the 2 context requires otherwise, any reference to "article 9-A of the general 3 municipal law" wherever occurring in any law, or, in any official books, 4 records, instruments, rules or papers, shall hereafter mean and refer to 5 titles one and four of article fifteen of this chapter. 6 § 4. Paragraph (b) of subdivision 2 of section 103 of the racing, 7 pari-mutuel wagering and breeding law, as added by section 1 of part A 8 of chapter 60 of the laws of 2012, is amended as follows: 9 (b) Charitable gaming. The division of charitable gaming shall be 10 responsible for the supervision and administration of the games of 11 chance licensing law, bingo licensing law and bingo control law as 12 prescribed by [articles nine-A and fourteen-H of the general municipal13law and nineteen-B of the executive law] article fifteen of this 14 chapter. 15 § 5. Subdivision 1 and paragraph (b) of subdivision 3 of section 151 16 of the social services law, subdivision 1 as amended and paragraph (b) 17 of subdivision 3 as added by section 2 of part F of chapter 58 of the 18 laws of 2014, are amended to read as follows: 19 1. Unauthorized transactions. Except as otherwise provided in subdivi- 20 sion two of this section, no person, firm, establishment, entity, or 21 corporation (a) licensed under the provisions of the alcoholic beverage 22 control law to sell liquor and/or wine at retail for off-premises 23 consumption; (b) licensed to sell beer at wholesale and also authorized 24 to sell beer at retail for off-premises consumption; (c) licensed or 25 authorized to conduct pari-mutuel wagering activity under the racing, 26 pari-mutuel wagering and breeding law; (d) licensed to participate in 27 charitable gaming under [article fourteen-H of the general municipal] 28 title three of article fifteen of the racing, pari-mutuel wagering and 29 breeding law; (e) licensed to participate in the operation of a video 30 lottery facility under section one thousand six hundred seventeen-a of 31 the tax law; (f) licensed to operate a gaming facility under section 32 [one thousand three] thirteen hundred eleven of the racing, pari-mutuel 33 wagering and breeding law; or (g) providing adult-oriented entertainment 34 in which performers disrobe or perform in an unclothed state for enter- 35 tainment, or making available the venue in which performers disrobe or 36 perform in an unclothed state for entertainment, shall cash or accept 37 any public assistance check or electronic benefit transfer device issued 38 by a public welfare official or department, or agent thereof, as and for 39 public assistance. 40 (b) A violation of the provisions of subdivision one of this section 41 by any person, corporation or entity licensed to operate a gaming facil- 42 ity under section one thousand three hundred eleven of the racing, pari- 43 mutuel wagering and breeding law; licensed under section one thousand 44 six hundred seventeen-a of the tax law to participate in the operation 45 of a video lottery facility; licensed or authorized to conduct pari-mu- 46 tuel wagering under the racing, pari-mutuel wagering and breeding law; 47 or licensed to participate in charitable gaming under [article four-48teen-H of the general municipal] title three of article fifteen of the 49 racing, pari-mutuel wagering and breeding law, shall subject such 50 person, corporation or entity to disciplinary action pursuant to section 51 one hundred four of the racing, pari-mutuel wagering and breeding law 52 and section one thousand six hundred seven of the tax law, which may 53 include revocation, cancellation or suspension of such license or 54 authorization.S. 2009 149 A. 3009 1 § 6. Paragraph 3 of subdivision (c) of section 290 of the tax law, as 2 amended by chapter 547 of the laws of 1987, is amended to read as 3 follows: 4 (3) Any income derived from the conduct of games of chance or from 5 rental of premises for the conduct of games of chance pursuant to a 6 license granted under title four of article [nine-A of the general7municipal] fifteen of the racing, pari-mutuel wagering and breeding law 8 shall not be subject to tax under this article. 9 § 7. This act shall take effect on the ninetieth day after it shall 10 have become a law. 11 PART NN 12 Section 1. Section 207 of the racing, pari-mutuel wagering and breed- 13 ing law, as added by chapter 18 of the laws of 2008, paragraphs a, b and 14 c of subdivision 1 as added by section 4, paragraph c of subdivision 1 15 as added by section 5 and subdivision 5 as added by section 6 of chapter 16 457 of the laws of 2012, and paragraph d of subdivision 1 as amended by 17 section 1 of part C of chapter 73 of the laws of 2016, is amended to 18 read as follows: 19 § 207. Board of directors of a franchised corporation. 1. a. The 20 board of directors, to be called the New York racing association [reor-21ganization] board, shall consist of [seventeen] fifteen members[, five22of whom shall be elected by the present class A directors of The New23York Racing Association, Inc., eight to be] who shall have equal voting 24 rights: six appointed by the governor[, two to] each of whom must be a 25 resident of New York state, and one of whom shall be appointed [by] on 26 the recommendation of the temporary president of the senate and [two to] 27 one of whom shall be appointed [by] on the recommendation of the speaker 28 of the assembly; eight appointed by the executive committee of the New 29 York racing association reorganization board of directors constituted 30 pursuant to chapter four hundred fifty-seven of the laws of two thousand 31 twelve, which shall continue to exist until such time as the appoint- 32 ments required hereunder are made; and one who shall be the president 33 and chief executive officer of the franchised corporation, ex officio 34 and without term limitation. The New York racing association board shall 35 have two ex officio, non-voting members: one appointed by the New York 36 Thoroughbred Breeders, Inc., and one appointed by the New York thorough- 37 bred horsemen's association representing at least fifty-one percent of 38 the horsemen using the facilities of the franchised corporation. The New 39 York racing association board may include additional ex officio, non- 40 voting members as appointed pursuant to a majority vote of the board. 41 (i) The governor shall nominate a member to serve as chair for an 42 initial term of three years, who shall serve at the pleasure of the 43 governor, subject to confirmation by majority vote of the board [of44directors. All non-ex officio members shall have equal voting rights]. 45 Thereafter, the board shall elect its chair, who shall serve at the 46 pleasure of the board, from among its members. 47 (ii) The term of voting membership on the New York racing association 48 board shall be three years. Individual appointees shall be limited to 49 serving as a voting member the lesser of three terms or nine years. 50 Notwithstanding the foregoing, the initial term of two members appointed 51 by the governor and three members appointed by the New York racing asso- 52 ciation reorganization board shall expire March thirty-first, two thou- 53 sand eighteen; the initial term of two members appointed by the New York 54 racing association reorganization board and three members appointed byS. 2009 150 A. 3009 1 the governor shall expire on March thirty-first, two thousand nineteen; 2 and the remaining members shall serve full three-year terms. 3 (iii) In the event of a member vacancy occurring by death, resignation 4 or otherwise, the respective appointing [officer or officers] authority 5 shall appoint a successor who shall hold office for the unexpired 6 portion of the term. [A vacancy from the members appointed from the7present board of The New York Racing Association, Inc., shall be filled8by the remaining such members] In the case of vacancies among members 9 appointed by the executive committee of the New York racing association 10 reorganization board of directors constituted pursuant to chapter four 11 hundred fifty-seven of the laws of two thousand twelve, appointments 12 thereafter shall be made by the executive committee of the New York 13 racing association board as constituted by the chapter of the laws of 14 two thousand seventeen that amended this section. 15 b. The franchised corporation shall establish a compensation committee 16 to fix salary guidelines, such guidelines to be consistent with an oper- 17 ation of other first class thoroughbred racing operations in the United 18 States; a finance and audit committee, to review annual operating and 19 capital budgets for each of the three racetracks; a nominating and 20 governance committee, to nominate any new directors to be designated by 21 the franchised corporation to replace its existing directors and be 22 responsible for all issues affecting the governance of the franchised 23 corporation; an equine safety committee; a racing committee to address 24 all issues related to racing operations; and an executive committee. 25 Each of the compensation, finance, nominating and executive committees 26 shall include at least one [of] public member from among the directors 27 appointed by the governor[, and the executive committee shall include at28least one of the directors appointed by the temporary president of the29senate and at least one of the directors appointed by the speaker of the30assembly]. 31 [b. In addition to these voting members, the board shall have two ex32officio members to advise on critical economic and equine health33concerns of the racing industry, one appointed by the New York Thorough-34bred Breeders Inc., and one appointed by the New York thoroughbred35horsemen's association (or such other entity as is certified and36approved pursuant to section two hundred twenty-eight of this article).37c. All directors shall serve at the pleasure of their appointing38authority.] 39 c. Upon the effective date of this paragraph, the structure of the New 40 York racing association board [of the franchised corporation] shall be 41 deemed to be incorporated within and made part of the certificate of 42 incorporation of the franchised corporation, and no amendment to such 43 certificate of incorporation shall be necessary to give effect to any 44 such provision, and any provision contained within such certificate 45 inconsistent in any manner shall be superseded by the provisions of this 46 section. Such board shall, however, make appropriate conforming changes 47 to all governing documents of the franchised corporation including but 48 not limited to corporate by-laws. Following such conforming changes, 49 amendments to the by-laws of the franchised corporation shall [only] be 50 made only by unanimous vote of the board. 51 [d. The board, which shall become effective upon appointment of a52majority of public members, shall terminate five years from its date of53creation.] 54 2. Members of the New York racing association board [of directors] 55 shall serve without compensation for their services, but [publicly56appointed members of the board] shall be entitled to reimbursement fromS. 2009 151 A. 3009 1 the franchised corporation for actual and necessary expenses incurred in 2 the performance of their [official] duties for the board. 3 3. Members of the New York racing association board [of directors], 4 except as otherwise provided by law, may engage in public or private 5 employment, or in a profession or business, however no member shall have 6 any direct or indirect economic interest in any video lottery gaming 7 facility, excluding incidental benefits based on purses or awards won in 8 the ordinary conduct of racing operations, or any direct or indirect 9 interest in any development undertaken at the racetracks of the state 10 racing franchise. 11 4. The affirmative vote of a majority of members of the New York 12 racing association board [of directors] shall be necessary for the tran- 13 saction of any business or the exercise of any power or function of the 14 franchised corporation. The franchised corporation may delegate on an 15 annual basis to one or more of its members, or its officers, agents or 16 employees, such powers and duties as it may deem proper. 17 5. Each voting member of the New York racing association board [of18directors] of the franchised corporation shall annually make a written 19 disclosure to [the] such board of any interest held by the director, 20 such director's spouse or unemancipated child, in any entity undertaking 21 business in the racing or breeding industry. Such interest disclosure 22 shall be promptly updated, in writing, in the event of any material 23 change. 24 The New York racing association board shall establish parameters for 25 the reporting and disclosure of such director interests. 26 6. Each voting member of the New York racing association board 27 appointed by the executive committee of the New York racing association 28 reorganization board of directors shall seek a racetrack management 29 license issued by the gaming commission, any fees for which shall be 30 waived by the commission. No voting member of the board required by the 31 foregoing to seek a racetrack management license may vote on any board 32 matter until such license is issued. 33 7. For purposes of section two hundred twelve of this article, the 34 establishment of The New York Racing Association, Inc. board of direc- 35 tors under this section shall not constitute the assumption of the fran- 36 chise by a successor entity. 37 § 2. Subparagraphs (ii), (iii), (vii) and (xvii) of paragraph a of 38 subdivision 8 of section 212 of the racing, pari-mutuel wagering and 39 breeding law, as added by chapter 18 of the laws of 2008, are amended, 40 subparagraph (xviii) is renumbered subparagraph (xx) and two new subpar- 41 agraphs (xviii) and (xix) are added to read as follows: 42 (ii) monitor and enforce compliance with definitive documents that 43 comprise the franchise agreement between the franchised corporation and 44 the state of New York governing the franchised corporation's operation 45 of thoroughbred racing and pari-mutuel wagering at the racetracks. The 46 franchise agreement shall contain objective performance standards that 47 shall allow contract review in a manner consistent with this chapter. 48 The franchise oversight board shall notify the franchised corporation 49 authorized by this chapter in writing of any material breach of the 50 performance standards or repeated non-material breaches which the fran- 51 chise oversight board may determine collectively constitute a material 52 breach of the performance standards. Prior to taking any action against 53 such franchised corporation, the franchise oversight board shall provide 54 the franchised corporation with the reasonable opportunity to cure any 55 material breach of the performance standards or repeated non-material 56 breaches which the franchise oversight board may determine collectivelyS. 2009 152 A. 3009 1 constitute a material breach of the performance standards. Upon a writ- 2 ten finding of a material breach of the performance standards or 3 repeated non-material breaches which the franchise oversight board may 4 determine collectively constitute a material breach of the performance 5 standards, the franchise oversight board may recommend that the fran- 6 chise agreement be terminated. The franchise oversight board shall refer 7 such recommendation to the [racing and wagering board] commission for a 8 hearing conducted pursuant to section two hundred forty-five of this 9 article for a determination of whether to terminate the franchise agree- 10 ment with the franchised corporation; 11 (iii) oversee, monitor and review all significant transactions and 12 operations of the franchised corporation authorized by this chapter; 13 provided, however, that nothing in this section shall be deemed to 14 reduce, diminish or impede the authority of the [state racing and wager-15ing board] commission to, pursuant to article one of this chapter, 16 determine and enforce compliance by the franchised corporation with 17 terms of racing laws and regulations. Such oversight shall include, but 18 not be limited to: 19 (A) review and make recommendations concerning the annual operating 20 budgets of such franchised corporation; 21 (B) review and make recommendations concerning operating revenues and 22 the establishment of a financial plan; 23 (C) review and make recommendations concerning accounting, internal 24 control systems and security procedures; 25 (D) review such franchised corporation's revenue and expenditure 26 [polices] policies which shall include collective bargaining agreements 27 management and employee compensation plans, vendor contracts and capital 28 improvement plans; 29 (E) review such franchise corporation's compliance with the laws, 30 rules and regulations applicable to its activities; 31 (F) make recommendations for establishing model governance principles 32 to improve accountability and transparency; and 33 (G) receive, review, approve or disapprove capital expense plans 34 submitted annually by the franchised corporation. 35 (vii) review and provide any recommendations on all simulcasting 36 contracts (buy and sell) that are also subject to prior approval of the 37 [racing and wagering board] commission; 38 (xvii) request and accept the assistance of any state agency, includ- 39 ing but not limited to, the [racing and wagering board, the division of40the lottery] commission, office of parks, recreation and historic pres- 41 ervation, the department of environmental conservation and the depart- 42 ment of taxation and finance, in obtaining information related to the 43 franchised corporation's compliance with the terms of the franchise 44 agreement;[and] 45 (xviii) when the franchise oversight board determines the financial 46 position of the franchised corporation has deviated materially from the 47 franchised corporation's financial plan, or other such related documents 48 provided to the franchise oversight board, or when the implementation of 49 such plan would, in the opinion of the franchise oversight board, pose a 50 significant risk to the liquidity of the franchised corporation, in any 51 order or combination: 52 (A) hire, at the expense of the franchised corporation, an independent 53 financial adviser to evaluate the financial position of the franchised 54 corporation and report on such to the franchise oversight board; andS. 2009 153 A. 3009 1 (B) require the franchised corporation to submit for the franchise 2 oversight board's approval a corrective action plan addressing any 3 concerns identified as risks by the franchise oversight board. 4 (xix) when the franchise oversight board finds the franchised corpo- 5 ration has experienced two consecutive years of material losses due to 6 circumstances within the control of the franchised corporation, as 7 determined by the franchise oversight board, the board may by majority 8 vote request the director of the budget to impound and escrow racing 9 supporting payments accruing to the benefit of the franchised corpo- 10 ration until the franchised corporation achieves the goals of a board- 11 approved corrective action plan addressing concerns identified by the 12 board. The director of the budget may, upon warrant of the franchise 13 oversight board, approve the use of withheld racing support payments 14 necessary to satisfy financial instruments used to fund board-approval 15 capital investments. 16 § 3. Section 203 of the racing, pari-mutuel wagering and breeding law, 17 as amended by chapter 18 of the laws of 2008, is amended to read as 18 follows: 19 § 203. Right to hold race meetings and races. 1. Any corporation 20 formed under the provisions of this article, if so claimed in its 21 certificate of organization, and if it shall comply with all the 22 provisions of this article, and any other corporation entitled to the 23 benefits and privileges of this article as hereinafter provided, shall 24 have the power and the right to hold one or more running race meetings 25 in each year, and to hold, maintain and conduct running races at such 26 meetings. At such running race meetings the corporation, or the owners 27 of horses engaged in such races, or others who are not participants in 28 the race, may contribute purses, prizes, premiums or stakes to be 29 contested for, but no person or persons other than the owner or owners 30 of a horse or horses contesting in a race shall have any pecuniary 31 interest in a purse, prize, premium or stake contested for in such race, 32 or be entitled to or receive any portion thereof after such race is 33 finished, and the whole of such purse, prize, premium or stake shall be 34 allotted in accordance with the terms and conditions of such race. Races 35 conducted by a franchised corporation shall be permitted only between 36 sunrise and sunset. 37 2. Notwithstanding any other provision of law to the contrary, a fran- 38 chised corporation shall be permitted to conduct races after sunset at 39 the Belmont Park racetrack, but only if such races conclude before elev- 40 en o'clock post meridian. The franchised corporation shall coordinate 41 with a harness racing association or corporation authorized to operate 42 in Westchester county to ensure that the starting times of all such 43 races are staggered. 44 3. A track first licensed after January first, nineteen hundred nine- 45 ty, shall not conduct the simulcasting of thoroughbred races within 46 district one, in accordance with article ten of this chapter on days 47 that a franchised corporation is not conducting a race meeting. In no 48 event shall thoroughbred races conducted by a track first licensed after 49 January first, nineteen hundred ninety be conducted after eight o'clock 50 post meridian. 51 § 4. Subparagraph (i) of paragraph (d) of subdivision 1 of section 238 52 of the racing, pari-mutuel wagering and breeding law, as amended by 53 section 2 of part BB of chapter 60 of the laws of 2016, is amended to 54 read as follows: 55 (i) The pari-mutuel tax rate authorized by paragraph (a) of this 56 subdivision shall be effective so long as a franchised corporation noti-S. 2009 154 A. 3009 1 fies the gaming commission by August fifteenth of each year that such 2 pari-mutuel tax rate is effective of its intent to conduct a race meet- 3 ing at Aqueduct racetrack during the months of December, January, Febru- 4 ary, March and April. For purposes of this paragraph such race meeting 5 shall consist of not less than ninety-five days of racing unless other- 6 wise agreed to in writing by the New York Thoroughbred Breeders Inc., 7 the New York thoroughbred horsemen's association (or such other entity 8 as is certified and approved pursuant to section two hundred twenty- 9 eight of this article) and approved by the commission. Not later than 10 May first of each year that such pari-mutuel tax rate is effective, the 11 gaming commission shall determine whether a race meeting at Aqueduct 12 racetrack consisted of the number of days as required by this paragraph. 13 In determining the number of race days, cancellation of a race day 14 because of an act of God that the gaming commission approves or because 15 of weather conditions that are unsafe or hazardous which the gaming 16 commission approves shall not be construed as a failure to conduct a 17 race day. Additionally, cancellation of a race day because of circum- 18 stances beyond the control of such franchised corporation for which the 19 gaming commission gives approval shall not be construed as a failure to 20 conduct a race day. If the gaming commission determines that the number 21 of days of racing as required by this paragraph have not occurred then 22 the pari-mutuel tax rate in paragraph (a) of this subdivision shall 23 revert to the pari-mutuel tax rates in effect prior to January first, 24 nineteen hundred ninety-five. 25 § 5. This act shall take effect April 1, 2017; provided, however, that 26 section one of this act shall take effect upon the appointment of a 27 majority of board members; provided, further, that the state franchise 28 oversight board shall notify the legislative bill drafting commission 29 upon the occurrence of such appointments in order that the commission 30 may maintain an accurate and timely effective data base of the official 31 text of the laws of the state of New York in furtherance of effectuating 32 the provisions of section 44 of the legislative law and section 70-b of 33 the public officers law; provided further that the amendments to section 34 212 of the racing, pari-mutuel wagering and breeding law made by section 35 two of this act shall not affect the repeal of such section and shall be 36 deemed repealed therewith. 37 PART OO 38 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 39 racing, pari-mutuel wagering and breeding law, as amended by section 1 40 of part FF of chapter 60 of the laws of 2016, is amended to read as 41 follows: 42 (a) Any racing association or corporation or regional off-track 43 betting corporation, authorized to conduct pari-mutuel wagering under 44 this chapter, desiring to display the simulcast of horse races on which 45 pari-mutuel betting shall be permitted in the manner and subject to the 46 conditions provided for in this article may apply to the commission for 47 a license so to do. Applications for licenses shall be in such form as 48 may be prescribed by the commission and shall contain such information 49 or other material or evidence as the commission may require. No license 50 shall be issued by the commission authorizing the simulcast transmission 51 of thoroughbred races from a track located in Suffolk county. The fee 52 for such licenses shall be five hundred dollars per simulcast facility 53 and for account wagering licensees that do not operate either a simul- 54 cast facility that is open to the public within the state of New York orS. 2009 155 A. 3009 1 a licensed racetrack within the state, twenty thousand dollars per year 2 payable by the licensee to the commission for deposit into the general 3 fund. Except as provided in this section, the commission shall not 4 approve any application to conduct simulcasting into individual or group 5 residences, homes or other areas for the purposes of or in connection 6 with pari-mutuel wagering. The commission may approve simulcasting into 7 residences, homes or other areas to be conducted jointly by one or more 8 regional off-track betting corporations and one or more of the follow- 9 ing: a franchised corporation, thoroughbred racing corporation or a 10 harness racing corporation or association; provided (i) the simulcasting 11 consists only of those races on which pari-mutuel betting is authorized 12 by this chapter at one or more simulcast facilities for each of the 13 contracting off-track betting corporations which shall include wagers 14 made in accordance with section one thousand fifteen, one thousand 15 sixteen and one thousand seventeen of this article; provided further 16 that the contract provisions or other simulcast arrangements for such 17 simulcast facility shall be no less favorable than those in effect on 18 January first, two thousand five; (ii) that each off-track betting 19 corporation having within its geographic boundaries such residences, 20 homes or other areas technically capable of receiving the simulcast 21 signal shall be a contracting party; (iii) the distribution of revenues 22 shall be subject to contractual agreement of the parties except that 23 statutory payments to non-contracting parties, if any, may not be 24 reduced; provided, however, that nothing herein to the contrary shall 25 prevent a track from televising its races on an irregular basis primari- 26 ly for promotional or marketing purposes as found by the commission. For 27 purposes of this paragraph, the provisions of section one thousand thir- 28 teen of this article shall not apply. Any agreement authorizing an 29 in-home simulcasting experiment commencing prior to May fifteenth, nine- 30 teen hundred ninety-five, may, and all its terms, be extended until June 31 thirtieth, two thousand [seventeen] eighteen; provided, however, that 32 any party to such agreement may elect to terminate such agreement upon 33 conveying written notice to all other parties of such agreement at least 34 forty-five days prior to the effective date of the termination, via 35 registered mail. Any party to an agreement receiving such notice of an 36 intent to terminate, may request the commission to mediate between the 37 parties new terms and conditions in a replacement agreement between the 38 parties as will permit continuation of an in-home experiment until June 39 thirtieth, two thousand [seventeen] eighteen; and (iv) no in-home simul- 40 casting in the thoroughbred special betting district shall occur without 41 the approval of the regional thoroughbred track. 42 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 43 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 44 section 2 of part FF of chapter 60 of the laws of 2016, is amended to 45 read as follows: 46 (iii) Of the sums retained by a receiving track located in Westchester 47 county on races received from a franchised corporation, for the period 48 commencing January first, two thousand eight and continuing through June 49 thirtieth, two thousand [seventeen] eighteen, the amount used exclusive- 50 ly for purses to be awarded at races conducted by such receiving track 51 shall be computed as follows: of the sums so retained, two and one-half 52 percent of the total pools. Such amount shall be increased or decreased 53 in the amount of fifty percent of the difference in total commissions 54 determined by comparing the total commissions available after July twen- 55 ty-first, nineteen hundred ninety-five to the total commissions thatS. 2009 156 A. 3009 1 would have been available to such track prior to July twenty-first, 2 nineteen hundred ninety-five. 3 § 3. The opening paragraph of subdivision 1 of section 1014 of the 4 racing, pari-mutuel wagering and breeding law, as amended by section 3 5 of part FF of chapter 60 of the laws of 2016, is amended to read as 6 follows: 7 The provisions of this section shall govern the simulcasting of races 8 conducted at thoroughbred tracks located in another state or country on 9 any day during which a franchised corporation is conducting a race meet- 10 ing in Saratoga county at Saratoga thoroughbred racetrack until June 11 thirtieth, two thousand [seventeen] eighteen and on any day regardless 12 of whether or not a franchised corporation is conducting a race meeting 13 in Saratoga county at Saratoga thoroughbred racetrack after June thirti- 14 eth, two thousand [seventeen] eighteen. On any day on which a fran- 15 chised corporation has not scheduled a racing program but a thoroughbred 16 racing corporation located within the state is conducting racing, every 17 off-track betting corporation branch office and every simulcasting 18 facility licensed in accordance with section one thousand seven (that 19 have entered into a written agreement with such facility's represen- 20 tative horsemen's organization, as approved by the commission), one 21 thousand eight, or one thousand nine of this article shall be authorized 22 to accept wagers and display the live simulcast signal from thoroughbred 23 tracks located in another state or foreign country subject to the 24 following provisions: 25 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 26 and breeding law, as amended by section 4 of part FF of chapter 60 of 27 the laws of 2016, is amended to read as follows: 28 1. The provisions of this section shall govern the simulcasting of 29 races conducted at harness tracks located in another state or country 30 during the period July first, nineteen hundred ninety-four through June 31 thirtieth, two thousand [seventeen] eighteen. This section shall super- 32 sede all inconsistent provisions of this chapter. 33 § 5. The opening paragraph of subdivision 1 of section 1016 of the 34 racing, pari-mutuel wagering and breeding law, as amended by section 5 35 of part FF of chapter 60 of the laws of 2016, is amended to read as 36 follows: 37 The provisions of this section shall govern the simulcasting of races 38 conducted at thoroughbred tracks located in another state or country on 39 any day during which a franchised corporation is not conducting a race 40 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 41 thirtieth, two thousand [seventeen] eighteen. Every off-track betting 42 corporation branch office and every simulcasting facility licensed in 43 accordance with section one thousand seven that have entered into a 44 written agreement with such facility's representative horsemen's organ- 45 ization as approved by the commission, one thousand eight or one thou- 46 sand nine of this article shall be authorized to accept wagers and 47 display the live full-card simulcast signal of thoroughbred tracks 48 (which may include quarter horse or mixed meetings provided that all 49 such wagering on such races shall be construed to be thoroughbred races) 50 located in another state or foreign country, subject to the following 51 provisions; provided, however, no such written agreement shall be 52 required of a franchised corporation licensed in accordance with section 53 one thousand seven of this article: 54 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 55 wagering and breeding law, as amended by section 6 of part FF of chapter 56 60 of the laws of 2016, is amended to read as follows:S. 2009 157 A. 3009 1 Notwithstanding any other provision of this chapter, for the period 2 July twenty-fifth, two thousand one through September eighth, two thou- 3 sand [sixteen] seventeen, when a franchised corporation is conducting a 4 race meeting within the state at Saratoga Race Course, every off-track 5 betting corporation branch office and every simulcasting facility 6 licensed in accordance with section one thousand seven (that has entered 7 into a written agreement with such facility's representative horsemen's 8 organization as approved by the commission), one thousand eight or one 9 thousand nine of this article shall be authorized to accept wagers and 10 display the live simulcast signal from thoroughbred tracks located in 11 another state, provided that such facility shall accept wagers on races 12 run at all in-state thoroughbred tracks which are conducting racing 13 programs subject to the following provisions; provided, however, no such 14 written agreement shall be required of a franchised corporation licensed 15 in accordance with section one thousand seven of this article. 16 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 17 racing, pari-mutuel wagering and breeding law and other laws relating 18 to simulcasting, as amended by section 7 of part FF of chapter 60 of the 19 laws of 2016, is amended to read as follows: 20 § 32. This act shall take effect immediately and the pari-mutuel tax 21 reductions in section six of this act shall expire and be deemed 22 repealed on July 1, [2017] 2018; provided, however, that nothing 23 contained herein shall be deemed to affect the application, qualifica- 24 tion, expiration, or repeal of any provision of law amended by any 25 section of this act, and such provisions shall be applied or qualified 26 or shall expire or be deemed repealed in the same manner, to the same 27 extent and on the same date as the case may be as otherwise provided by 28 law; provided further, however, that sections twenty-three and twenty- 29 five of this act shall remain in full force and effect only until May 1, 30 1997 and at such time shall be deemed to be repealed. 31 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 32 racing, pari-mutuel wagering and breeding law and other laws relating to 33 simulcasting and the imposition of certain taxes, as amended by section 34 8 of part FF of chapter 60 of the laws of 2016, is amended to read as 35 follows: 36 § 54. This act shall take effect immediately; provided, however, 37 sections three through twelve of this act shall take effect on January 38 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 39 ing law, as added by section thirty-eight of this act, shall expire and 40 be deemed repealed on July 1, [2017] 2018; and section eighteen of this 41 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 42 two of this act shall take effect as of the same date as chapter 772 of 43 the laws of 1989 took effect. 44 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 45 pari-mutuel wagering and breeding law, as amended by section 9 of part 46 FF of chapter 60 of the laws of 2016, is amended to read as follows: 47 (a) The franchised corporation authorized under this chapter to 48 conduct pari-mutuel betting at a race meeting or races run thereat shall 49 distribute all sums deposited in any pari-mutuel pool to the holders of 50 winning tickets therein, provided such tickets be presented for payment 51 before April first of the year following the year of their purchase, 52 less an amount which shall be established and retained by such fran- 53 chised corporation of between twelve to seventeen per centum of the 54 total deposits in pools resulting from on-track regular bets, and four- 55 teen to twenty-one per centum of the total deposits in pools resulting 56 from on-track multiple bets and fifteen to twenty-five per centum of theS. 2009 158 A. 3009 1 total deposits in pools resulting from on-track exotic bets and fifteen 2 to thirty-six per centum of the total deposits in pools resulting from 3 on-track super exotic bets, plus the breaks. The retention rate to be 4 established is subject to the prior approval of the gaming commission. 5 Such rate may not be changed more than once per calendar quarter to be 6 effective on the first day of the calendar quarter. "Exotic bets" and 7 "multiple bets" shall have the meanings set forth in section five 8 hundred nineteen of this chapter. "Super exotic bets" shall have the 9 meaning set forth in section three hundred one of this chapter. For 10 purposes of this section, a "pick six bet" shall mean a single bet or 11 wager on the outcomes of six races. The breaks are hereby defined as the 12 odd cents over any multiple of five for payoffs greater than one dollar 13 five cents but less than five dollars, over any multiple of ten for 14 payoffs greater than five dollars but less than twenty-five dollars, 15 over any multiple of twenty-five for payoffs greater than twenty-five 16 dollars but less than two hundred fifty dollars, or over any multiple of 17 fifty for payoffs over two hundred fifty dollars. Out of the amount so 18 retained there shall be paid by such franchised corporation to the 19 commissioner of taxation and finance, as a reasonable tax by the state 20 for the privilege of conducting pari-mutuel betting on the races run at 21 the race meetings held by such franchised corporation, the following 22 percentages of the total pool for regular and multiple bets five per 23 centum of regular bets and four per centum of multiple bets plus twenty 24 per centum of the breaks; for exotic wagers seven and one-half per 25 centum plus twenty per centum of the breaks, and for super exotic bets 26 seven and one-half per centum plus fifty per centum of the breaks. For 27 the period June first, nineteen hundred ninety-five through September 28 ninth, nineteen hundred ninety-nine, such tax on regular wagers shall be 29 three per centum and such tax on multiple wagers shall be two and one- 30 half per centum, plus twenty per centum of the breaks. For the period 31 September tenth, nineteen hundred ninety-nine through March thirty- 32 first, two thousand one, such tax on all wagers shall be two and six- 33 tenths per centum and for the period April first, two thousand one 34 through December thirty-first, two thousand [seventeen] eighteen, such 35 tax on all wagers shall be one and six-tenths per centum, plus, in each 36 such period, twenty per centum of the breaks. Payment to the New York 37 state thoroughbred breeding and development fund by such franchised 38 corporation shall be one-half of one per centum of total daily on-track 39 pari-mutuel pools resulting from regular, multiple and exotic bets and 40 three per centum of super exotic bets provided, however, that for the 41 period September tenth, nineteen hundred ninety-nine through March thir- 42 ty-first, two thousand one, such payment shall be six-tenths of one per 43 centum of regular, multiple and exotic pools and for the period April 44 first, two thousand one through December thirty-first, two thousand 45 [seventeen] eighteen, such payment shall be seven-tenths of one per 46 centum of such pools. 47 § 10. This act shall take effect immediately. 48 PART PP 49 Section 1. Clause (F) of subparagraph (ii) of paragraph 1 of subdivi- 50 sion b of section 1612 of the tax law, as amended by section 1 of part 51 EE of chapter 60 of the laws of 2016, is amended to read as follows: 52 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar- 53 agraph, when a vendor track, is located in Sullivan county and within 54 sixty miles from any gaming facility in a contiguous state such vendorS. 2009 159 A. 3009 1 fee shall, for a period of [nine] ten years commencing April first, two 2 thousand eight, be at a rate of forty-one percent of the total revenue 3 wagered at the vendor track after payout for prizes pursuant to this 4 chapter, after which time such rate shall be as for all tracks in clause 5 (C) of this subparagraph. 6 § 2. This act shall take effect immediately and shall be deemed to 7 have been in full force and effect on and after April 1, 2017. 8 PART QQ 9 Section 1. Clause (H) of subparagraph (ii) of paragraph 1 of subdivi- 10 sion b of section 1612 of the tax law, as separately amended by section 11 1 of part GG and section 2 of part SS of chapter 60 of the laws of 2016, 12 is amended to read as follows: 13 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of 14 this subparagraph, the track operator of a vendor track and in the case 15 of Aqueduct, the video lottery terminal facility operator, shall be 16 eligible for a vendor's capital award of up to four percent of the total 17 revenue wagered at the vendor track after payout for prizes pursuant to 18 this chapter, which shall be used exclusively for capital project 19 investments to improve the facilities of the vendor track which promote 20 or encourage increased attendance at the video lottery gaming facility 21 including, but not limited to hotels, other lodging facilities, enter- 22 tainment facilities, retail facilities, dining facilities, events 23 arenas, parking garages and other improvements that enhance facility 24 amenities; provided that such capital investments shall be approved by 25 the division, in consultation with the state racing and wagering board, 26 and that such vendor track demonstrates that such capital expenditures 27 will increase patronage at such vendor track's facilities and increase 28 the amount of revenue generated to support state education programs. The 29 annual amount of such vendor's capital awards that a vendor track shall 30 be eligible to receive shall be limited to two million five hundred 31 thousand dollars, except for Aqueduct racetrack, for which there shall 32 be no annual limit, provided, however, that any such capital award for 33 the Aqueduct video lottery terminal facility operator shall be one 34 percent of the total revenue wagered at the video lottery terminal 35 facility after payout for prizes pursuant to this chapter until the 36 earlier of the designation of one thousand video lottery devices as 37 hosted pursuant to paragraph four of subdivision a of section sixteen 38 hundred seventeen-a of this chapter or April first, two thousand nine- 39 teen and shall then be four percent of the total revenue wagered at the 40 video lottery terminal facility after payout for prizes pursuant to this 41 chapter, provided, further, that such capital award shall only be 42 provided pursuant to an agreement with the operator to construct an 43 expansion of the facility, hotel, and convention and exhibition space 44 requiring a minimum capital investment of three hundred million dollars. 45 Except for tracks having less than one thousand one hundred video gaming 46 machines, and except for a vendor track located west of State Route 14 47 from Sodus Point to the Pennsylvania border within New York, and except 48 for Aqueduct racetrack each track operator shall be required to co-in- 49 vest an amount of capital expenditure equal to its cumulative vendor's 50 capital award. For all tracks, except for Aqueduct racetrack, the amount 51 of any vendor's capital award that is not used during any one year peri- 52 od may be carried over into subsequent years ending before April first, 53 two thousand [seventeen] eighteen. Any amount attributable to a capital 54 expenditure approved prior to April first, two thousand [seventeen]S. 2009 160 A. 3009 1 eighteen and completed before April first, two thousand [nineteen] twen- 2 ty; or approved prior to April first, two thousand [twenty-one] twenty- 3 two and completed before April first, two thousand [twenty-three] twen- 4 ty-four for a vendor track located west of State Route 14 from Sodus 5 Point to the Pennsylvania border within New York, shall be eligible to 6 receive the vendor's capital award. In the event that a vendor track's 7 capital expenditures, approved by the division prior to April first, two 8 thousand [seventeen] eighteen and completed prior to April first, two 9 thousand [nineteen] twenty, exceed the vendor track's cumulative capital 10 award during the five year period ending April first, two thousand 11 [seventeen] eighteen, the vendor shall continue to receive the capital 12 award after April first, two thousand [seventeen] eighteen until such 13 approved capital expenditures are paid to the vendor track subject to 14 any required co-investment. In no event shall any vendor track that 15 receives a vendor fee pursuant to clause (F) or (G) of this subparagraph 16 be eligible for a vendor's capital award under this section. Any opera- 17 tor of a vendor track which has received a vendor's capital award, 18 choosing to divest the capital improvement toward which the award was 19 applied, prior to the full depreciation of the capital improvement in 20 accordance with generally accepted accounting principles, shall reim- 21 burse the state in amounts equal to the total of any such awards. Any 22 capital award not approved for a capital expenditure at a video lottery 23 gaming facility by April first, two thousand [seventeen] eighteen shall 24 be deposited into the state lottery fund for education aid; and 25 § 2. This act shall take effect immediately. 26 PART RR 27 Section 1. Paragraph c of subdivision 3 of section 97-nnnn of the 28 state finance law, as added by chapter 174 of the laws of 2013, is 29 amended to read as follows: 30 c. ten percent of the moneys in such fund, as attributable to a 31 specific licensed gaming facility, shall be appropriated or transferred 32 from the commercial gaming revenue fund among counties within the 33 region, as defined by section one thousand three hundred ten of the 34 racing, pari-mutuel wagering and breeding law, hosting said facility for 35 the purpose of real property tax relief and for education assistance. 36 Such distribution shall be made among the counties on a per capita 37 basis, subtracting the population of host municipality and county. 38 Provided, however, such amount shall be reduced by one million four 39 hundred thousand dollars in state fiscal year two thousand seventeen -- 40 two thousand eighteen and by one million five hundred fifty thousand 41 dollars every year thereafter. Such funds attributable to this reduction 42 shall be transferred to the general fund and the reduction shall be 43 distributed among such eligible counties proportional to total distrib- 44 utions during the fiscal year. 45 § 2. Subdivision 3 of section 99-h of the state finance law, as 46 amended by chapter 174 of the laws of 2013, is amended to read as 47 follows: 48 3. Moneys of the account, following the segregation of appropriations 49 enacted by the legislature, shall be available for purposes including 50 but not limited to: (a) reimbursements or payments to municipal govern- 51 ments that host tribal casinos pursuant to a tribal-state compact for 52 costs incurred in connection with services provided to such casinos or 53 arising as a result thereof, for economic development opportunities and 54 job expansion programs authorized by the executive law; provided, howev-S. 2009 161 A. 3009 1 er, that for any gaming facility located in the city of Buffalo, the 2 city of Buffalo shall receive a minimum of twenty-five percent of the 3 negotiated percentage of the net drop from electronic gaming devices the 4 state receives pursuant to the compact, and provided further that for 5 any gaming facility located in the city of Niagara Falls, county of 6 Niagara a minimum of twenty-five percent of the negotiated percentage of 7 the net drop from electronic gaming devices the state receives pursuant 8 to the compact shall be distributed in accordance with subdivision four 9 of this section, and provided further that for any gaming facility 10 located in the county or counties of Cattaraugus, Chautauqua or Allega- 11 ny, the municipal governments of the state hosting the facility shall 12 collectively receive a minimum of twenty-five percent of the negotiated 13 percentage of the net drop from electronic gaming devices the state 14 receives pursuant to the compact; and provided further that pursuant to 15 chapter five hundred ninety of the laws of two thousand four, a minimum 16 of twenty-five percent of the revenues received by the state pursuant to 17 the state's compact with the St. Regis Mohawk tribe shall be made avail- 18 able to the counties of Franklin and St. Lawrence, and affected towns in 19 such counties. Each such county and its affected towns shall receive 20 fifty percent of the moneys made available by the state; and provided 21 further that the state shall annually make twenty-five percent of the 22 negotiated percentage of the net drop from all gaming devices the state 23 actually receives pursuant to the Oneida Settlement Agreement confirmed 24 by section eleven of the executive law as available to the county of 25 Oneida, and a sum of three and one-half million dollars to the county of 26 Madison. Additionally, the state shall distribute for a period of nine- 27 teen and one-quarter years, an additional annual sum of two and one-half 28 million dollars to the county of Oneida. Additionally, the state shall 29 distribute the one-time eleven million dollar payment received by the 30 state pursuant to such agreement with the Oneida Nation of New York to 31 the county of Madison by wire transfer upon receipt of such payment by 32 the state; and (b) support and services of treatment programs for 33 persons suffering from gambling addictions. Moneys not segregated for 34 such purposes shall be transferred to the general fund for the support 35 of government during the fiscal year in which they are received. Addi- 36 tionally, the state shall distribute an additional annual sum of two and 37 one-quarter million dollars to a county in which a gaming facility is 38 located but does not receive a percent of the negotiated percentage of 39 the net drop from gaming devices the state receives pursuant to a 40 compact. 41 § 3. Subdivision 3-a of section 99-h of the state finance law, as 42 amended by section 4 of part EE of chapter 59 of the laws of 2014, is 43 amended to read as follows: 44 3-a. Ten percent of any of the funds actually received by the state 45 pursuant to the tribal-state compacts and agreements described in subdi- 46 vision two of this section prior to the transfer of unsegregated moneys 47 to the general fund required by such subdivision, shall be distributed 48 to counties in each respective exclusivity zone provided they do not 49 otherwise receive a share of said revenues pursuant to this section. 50 Such distribution shall be made among such counties on a per capita 51 basis, excluding the population of any municipality that receives a 52 distribution pursuant to subdivision three of this section. Provided, 53 however, such amount shall be reduced by six hundred thousand dollars in 54 state fiscal year two thousand seventeen -- two thousand eighteen and by 55 five hundred thousand dollars every year thereafter. The reduction shallS. 2009 162 A. 3009 1 be distributed among such eligible counties proportional to total 2 distributions during the fiscal year. 3 § 4. Paragraph b of subdivision 2 of section 54-l of the state finance 4 law, as amended by section 1 of part X of chapter 55 of the laws of 5 2014, is amended to read as follows: 6 b. Within the amounts appropriated therefor, eligible municipalities 7 shall receive an amount equal to seventy percent of the state aid 8 payment received in the state fiscal year commencing April first, two 9 thousand eight from an appropriation for aid to municipalities with 10 video lottery gaming facilities. Provided, however, such amount shall 11 be reduced by two hundred fifty thousand dollars in the state fiscal 12 year commencing April first, two thousand seventeen and by two hundred 13 thousand dollars every year thereafter. Such reduction shall be distrib- 14 uted among such eligible municipalities proportional to payments 15 received by such eligible municipalities in the state fiscal year 16 commencing April first, two thousand sixteen. 17 § 5. This act shall take effect April 1, 2017 and shall expire and be 18 deemed repealed March 31, 2020 notwithstanding section 2 of chapter 747 19 of the laws of 2006, as amended. 20 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 21 sion, section or part of this act shall be adjudged by any court of 22 competent jurisdiction to be invalid, such judgment shall not affect, 23 impair, or invalidate the remainder thereof, but shall be confined in 24 its operation to the clause, sentence, paragraph, subdivision, section 25 or part thereof directly involved in the controversy in which such judg- 26 ment shall have been rendered. It is hereby declared to be the intent of 27 the legislature that this act would have been enacted even if such 28 invalid provisions had not been included herein. 29 § 3. This act shall take effect immediately provided, however, that 30 the applicable effective date of Parts A through RR of this act shall be 31 as specifically set forth in the last section of such Parts.
